MODULE 1

RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION

1. Development of Managerial Capabilities - this means that one of the benefits

an entrepreneur gets is to develop his managerial skills.

2. Creation of Organizations - which means that because of entrepreneurship

many organizations will exist.

3. Improving Standard of Living - this means that entrepreneurship can lift up the
economic status of an individual.

4. Means of Economic Development - this means that not only the life of the entrepreneur is
improved but also the society where the business is located.

Concept of Entrepreneurship

The word “entrepreneur” was derived from the French verb enterprendre,
which means “to undertake.” This is pinpointing to those who “undertake” the risk of
enterprise.

The enterprise is created by an entrepreneur and the process is called

“Entrepreneurship.” Entrepreneurs are innovators. They are willing to take the risks and
generate unique ideas that can provide profitable solutions to the needs of the market and the
society.

Factors Affecting Entrepreneurship

1. Personality Factors which include:

a. Initiative - doing things even before being told.
b. Proactive - which means he can classify opportunities and seize it.
c. Problem Solver - which means he can retain good relations with other
people.
d. Perseverance - meaning he will pursue things to get done regardless of
challenges.
e. Persuasion - means that he can entice people to buy even if they don’t want to
f. A Planner - he makes plans before doing things and does not fail to
monitor it.
g. Risk-taker - which means that he is willing to gamble but he will calculate it
first.

2. Environmental Factors which include political, climate, legal system,

economic and social conditions and market situations.

Common Competencies in Entrepreneurship

1. Decisive - an entrepreneur must be firm in making decisions.

2. Communicator - an entrepreneur must have a convincing power.
3. Leader - an entrepreneur must have the charisma to be obeyed by his employees.
4. Opportunity seeker - an entrepreneur must have the ability to be the first to
see business chances.
 5. Proactive – an entrepreneur can control a situation by making things happen or by
preparing for possible future problems.
6. Risk Taker – an entrepreneur has the courage to pursue business ideas.
7. Innovative - the entrepreneur has big business ideas and he does not stop improving
and thinking of new worthwhile ideas for his business.

Core Competencies in Entrepreneurship

1. Economic and Dynamic Activity - Entrepreneurship is an economic activity because it

involves the creation and operation of an enterprise with a view to creating value or wealth by
ensuring optimum utilization of limited resources.

2. Innovative – The entrepreneur constantly looks for new ideas, thus he needs to be creative.

3. Profit Potential - The entrepreneur can be compensated by his profit coming

from the operation.

4. Risk bearing – The entrepreneur needs to gamble but wise enough to offset the risk.

Types of Entrepreneurs
1. Innovative Entrepreneurs - They are those who always make new things by thinking of new
ideas. (They have the ability to think newer, better and more economical ideas.)

2. Imitating Entrepreneurs - They are those who don’t create new things but only follow the
ideas of other entrepreneurs.

3. Fabian Entrepreneurs - They are skeptical about changes to be made in the organization.
(They don’t initiate but follow only after they are satisfied.)

4. Drone Entrepreneurs - They are those who live on the labor of others. (They are die-hard
conservatives even ready to suffer the loss of business.)

5. Social Entrepreneurs - They are those who initiate changes and drive social innovation and
transformation in the various fields such as education, health, human rights, environment and
enterprise development.

Career Opportunities of Entrepreneurship

1. Business Consultant - with the expertise of in the field of entrepreneurship, he can be a

very good source of advice to other entrepreneurs and would be businessmen.

2. Teacher - a graduate of an entrepreneurship can use his knowledge in teaching.

3. Researcher - the entrepreneur can be employed as a researcher by an enterprise.

4. Sales - the entrepreneurship graduate can apply as a salesman.

5. Business Reporter - the entrepreneur being expert in the field, can be employed as a
business reporter.

MODULE 2
The entrepreneurial process of creating a new venture is presented in the diagram below.

> Creation of entrepreneurial Ideas

> Identification of entrepreneurial Opportunities
> Opening of entrepreneurial Venture

These are the basic foundation that the entrepreneur must have in seeking opportunities:

●​ Entrepreneurial mind frame. This allows the entrepreneur to see things in a very
positive and optimistic way in the midst of difficult situations. Being a risk-taker, an
entrepreneur can find solutions when problems arise.

●​ Entrepreneurial heart flame. Entrepreneurs are driven by passion, they are attracted to
discover satisfaction in the act and process of discovery. Passion is the great desire of
an entrepreneur to achieve his/her goats.

●​ Entrepreneurial gut game. This refers to the ability of the entrepreneur to be intuitive.
This is also known as intuition. The gut game also means confidence in one's self and
the firm belief that everything you aspire can be reached.

Sources of Opportunities
There are many ways to discover opportunities Looking at the big picture, some have noticed
the emerging trends and patterns for business opportunities. While others are trying to find out
their target market. The following are some sources of opportunities:

1.​ Changes in the environment

Entrepreneurial ideas arise when changes happen in the external environment. A
person with an entrepreneurial drive views these changes positively. External
environment refers to the physical environment, societal environment, and industry
environment where the business operates

1.1 The Physical environment includes

a.​ Climate - the weather conditions
b.​ Natural resources - such as minerals, forests, water, and fertile land that
occur in nature and can be used for economic gain.
c.​ Wildlife - includes all mammals, birds, reptiles, fish, etc., that live in the
wild

1.2 The Societal environment includes the various forces like

a.​ Political forces - includes all the laws, rules, and regulations that govern
business practices as well as the permits, approvals, and licenses
necessary to operate the business.
b.​ Economic forces - such as income level and employment rate
c.​ Sociocultural forces - characterize a society. customs, lifestyles and
values that
 d.​ Technological environment - innovations new inventions and technology

1.3 The Industry environment of the business includes

a.​ Competitors
b.​ Customers
c.​ Creditors
d.​ Employees
e.​ Government
f.​ Suppliers

For example, one factor in the physical environment that can easily change is the
climate. The temperature is very high during summer but very low during the rainy season. An
individual with entrepreneurial drive can be extremely imaginative and Inventive in identifying
opportunities. He/she can venture on a business that responds to the needs of the people
during summer and rainy season

2. Technological discovery and advancement - A person with entrepreneurial interest

sees the possibility of business opportunities in any new discovery or because of the use of the
latest technology.

For example, an individual with knowledge in repair and installation of a machine engine
discovers additional engine parts that considerably reduce fuel consumption

3. Government's thrust, programs, and policies - The priorities, projects, programs,

and policies of the government are also good sources of ideas

For example, the use of firecrackers to celebrate New Year's Eve is strictly prohibited.
People without entrepreneurial interest will view the ordinance as a plain restriction. However,
for an entrepreneur, it is a business opportunity to come up with a new product that will serve as
a substitute for firecrackers.

4. People's interest - The interest, hobbies, and preferences of people are rich sources
of entrepreneurial ideas, like the increasing number of internet Cafés at present could lead to
the strong attachment of young people to computers.

5. Past experiences - The expertise and skills developed by a person who has worked
in a particular field may lead to the opening of a related business enterprise.

For example, an accountant who has learned the appropriate accounting and
management skills and techniques in a prominent accounting firm can start his/her business
venture by opening his/her own accounting firm.

Forces of Competition Model

It is also known as the “five forces of competition”. An industry environment is a
competitive environment. Regardless of what product or services you have, competition is
always present.
 Competition - it is the act or process of trying to get or win something
For example, the prices are lower when there is competition among the
stores.

These are the five forces competing within the industry:

●​ Buyers
●​ Potential new entrants
●​ Rivalry among existing firms
●​ Substitute products
●​ Supplier​

1.​ Buyers
The buyers are the ones that pay cash in exchange for your goods and services. One
example is the influence of the price or in the bargaining strategy. The buyer has a strong and
magnified bargaining power. The threat of its bargaining power will be less if the following
factors are noticed:
a. There are several suppliers available in the market
b. The buyer has the potential for backward integration.
c. The cost of switching the supplier cost is minimal
d. The product represents a high percentage of the buyer's cost.
e. The buyer purchases large portions of the seller's product or services,

2.​ Potential New Entrants

A new entrant is defined as companies or businesses that have the ability to penetrate
or enter into a particular industry. For example, in the level of capital requirements, if the
business requires huge capital, new entrants should decline to join the business. This gives a
threat to the business. This can be noticed if there is the presence of the following factors.
a. Substantial capital requirement
b. Strict government policy.
c. Difficulty in accessing distribution channels
d. Economies of scale
e. High cost of product differentiation
f. High switching cost

3.​ Rivalry among Existing Firms

Rivalry is a state or situation wherein business organizations are competing with each
other in a particular market. For example, it depends on the marketing strategy of your
competitor, like giving freebies and special offers. The intensity of rivalry among existing firms is
characterized by the following factors:
a. Diversity of rivals
b. Number of competing firms
c. Characteristics of the products or services
d. Increased capacity
e. Amount of fixed costs
f. Rate of industry growth

4.​ Substitute Products

Substitute is one that serves the same purpose as another product in the market. For
example, the consumers decide to use margarine as a substitute for butter. In case the price of
butter increases, preferably the consumer will gradually switch to margarine.
A substitute product can give a big threat in the industry environment if the following factors are
noticed:
a. Switching cost is low
b. Preferences and tastes of the customers easily change
 c. Product differentiation is highly noticeable
d. The quality of substitute products dramatically improves
f. The price of substitute product is substantially lower

5.​ Suppliers
The Suppliers are the one that provide something that is needed in business operations
such as office supplies and equipment. In an example where supplies and services being
offered are unstable the intensity of the threat is strong in this kind of competitive force in the
industry. This can be noticed if there is the presence of the following factors:
a. The supplier has the ability for forward integration
b. Suppliers in the industry are few, but the sales volume is high
c. The switching cost is very high
d. The product or service is unique

.
INTERNATIONAL BUSINESS OWNERS

●​ Elon Musk - CEO of Tesla and SpaceX, involved in multiple industries such as electric
vehicles, space exploration, and AI.

●​ Jeff Bezos - Founder of Amazon, the largest e-commerce platform globally.

●​ Bill Gates - Co-founder of Microsoft and prominent philanthropist.

●​ Warren Buffett - Chairman and CEO of Berkshire Hathaway, an investment tycoon. (may
ari rin ng oracle omaha

●​ Mark Zuckerberg - Co-founder and CEO of Meta Platforms (formerly Facebook).

●​ Bernard Arnault - Chairman and CEO of LVMH, the world's largest luxury goods
company.

●​ Richard Branson - Founder of Virgin Group, which controls over 400 companies.

●​ Oprah Winfrey - Media mogul, TV host, and founder of Harpo Productions.

●​ Larry Ellison - Co-founder of Oracle Corporation, a leader in enterprise software.

●​ Larry Page - Co-founder of Google and Alphabet Inc.

●​ Sergey Brin - Co-founder of Google and key innovator in search engine technology.

●​ Steve Jobs (deceased) - Co-founder of Apple Inc., revolutionized personal technology.

●​ Jack Ma - Co-founder of Alibaba Group, a global e-commerce giant.

●​ Mukesh Ambani - Chairman of Reliance Industries, India's largest private company.

●​ Reed Hastings - Co-founder and former CEO of Netflix, a leader in streaming services.

●​ Howard Schultz - Former CEO of Starbucks, expanding the coffeehouse globally.

●​ Michael Bloomberg - Founder of Bloomberg LP, a global financial data and media
company.

●​ Phil Knight - Co-founder of Nike, the world-renowned sportswear brand.

 ●​ Sara Blakely - Founder of Spanx, a pioneer in shapewear.

●​ Kylie Jenner - Founder of Kylie Cosmetics, a beauty brand that revolutionized social
media marketing.

These entrepreneurs have made significant impacts in their respective industries and serve as
inspirations in the business world.

sana miss niya rin ako - Janiella<3