Lesson 2 Introduction to Entrepreneurship:

Personal Entrepreneurial Competencies (PECs)

Important Skills of an Entrepreneur
Review of the Previous Lesson

Five Salient Features of

Entrepreneurship
Entrepreneurial Benefits
 Read and analyze the situation on page
14.
Mr. Juan Dela Cruz, a resident of Bagac, Bataan saw
opportunity to sell cashew products due to the great
amount of cashew produced in their municipality. He
started to sell homemade products online and when
the business grew, he decided to put up a physical
store for his products.
 Read and analyze the situation on page
14.
He applied for a barangay business certificate and
Mayor’s Permit and registered his business name to
DTI. He also processed, paid, and complied with all the
documentary requirements and fees in opening a
business with BIR.
 Read and analyze the situation on page
14.
Since the business grew, he bought equipment and materials to
make the production more efficient from a local supplier. He also
hired two workers from their barangay to have his store fixed to be
ready for operations. He also closed a deal with local cashew
farmers in their municipality for the raw materials for his products.
He also hired employees for his business: two for the production
of the products and one saleslady who will take care of the sales in
his store.
 Read and analyze the situation on page
14.
At the end of the year, he had earned a good profit
enough for him to purchase a house and lot, but he did
not forget to pay the annual income tax to BIR.
 Read and analyze the situation on page
14.
 Mr. Dela Cruz, as the entrepreneur was enriched
with properties (house and lot) because of his
business venture.
 Read and analyze the situation on page
14.
The local cashew farmers alongside the employees
had a living for supplying raw materials and working
with Mr. Dela Cruz respectively. The local equipment
supplier and the workers hired for fixing the store
also had income.
 Read and analyze the situation on page
14.
The local government collected local taxes from Mr.
Delacruz while the national government, through BIR,
collected an annual income tax. The taxes
accumulated by both local and national government
will be utilized for public services such as healthcare,
education, security, road constructions and the like.
 Read and analyze the situation on page
14.
The local government collected local taxes from Mr.
Delacruz while the national government, through BIR,
collected an annual income tax. The taxes
accumulated by both local and national government
will be utilized for public services such as healthcare,
education, security, road constructions and the like.
Reflect on the story that you have read about Mr.
Dela Cruz and his business – cashew products
 So, what are these Personal Entrepreneurial Competencies or PEC’s?
Let us explore together and have a peek on success stories of some
known entrepreneurs.

Personal Entrepreneurial Competencies refer to the

important characteristics that should be possessed by
an individual in order to perform entrepreneurial
functions effectively.
 Personal Entrepreneurial Competencies
(PEC’s)
1. Hardworking
Being a hardworker means habitually working
diligently for long period of hours. We have this saying
in Filipino, “ginagawang gabi ang umaga, at umaga ang
gabi”
 Personal Entrepreneurial Competencies
(PEC’s)
Let us take Henry Sy as an example. He came from a poor family in
China who came to the Philippines to try their luck here. They built a
store but was burnt down during WWII. He saw an opportunity to
earn from selling used combat shoes and goods from American
soldiers. He even worked for 12 hours a day at the age of 12 just to
earn for their family. But all hard work paid off as we’ve seen on the
success of SM Malls today making their family the wealthiest in the
country.
 Personal Entrepreneurial Competencies
(PEC’s)
2. Self-confident.
It is also important that as an entrepreneur, one must
believe oneself more than anybody else.
 Personal Entrepreneurial Competencies
(PEC’s)
A farmer's son, Diosdado Banatao, grew up in a rural area
in Cagayan Valley. In their place, students usually stop
studying after 6th grade but his father pushed him to
continue despite the fact that he needed to be away from
his family. He graduated at Stanford University where at
first he felt inferior with his classmates, thus making him
study twice as hard as the others.
 Personal Entrepreneurial Competencies
(PEC’s)
He saw an opportunity to develop microchips and started to build
a company but failed. “No one told me I could do it; I have to tell
myself that I could”, he said. So, he tried again and this time, he
succeeded. He invented the first 16-bit chip, the ones that we can
find in most computers today. At present, more compact and
higher capacity processing chips are available but if not for his
invention, the world we know today might be quite different.
 Personal Entrepreneurial Competencies
(PEC’s)
3. Disciplined.
The urge to fight temptation is very important. They said it is
easy to spend money you did not worked hard for.
Sometimes, when we start to earn, we are tempted to buy
things that are not really needed. A good entrepreneur does
not ask himself the question, “What will I buy with my
money?” but ask, “Where will I invest my money to earn
more money?” instead.
 Personal Entrepreneurial Competencies
(PEC’s)
Founder of Mang Inasal (Mr. Barbeque in Ilonggo), Edgar Sia
started at a parking lot in Iloilo City. His food business was a
blast and caught the attention of Tony Tan Caktiong of
Jollibee Food Corporation. Caktiong bought a portion of
Mang Inasal for a total of five billion pesos. Sia, instead of
living a one-day billionaire life, decided to invest his money to
banking and healthcare thus, making him the youngest
Filipino billionaire at the age of 34.
 Personal Entrepreneurial Competencies
(PEC’s)
4. Committed
Commitment is characterized by solid dedication.
Socorro Ramos, the founder of National Bookstore literally
showed commitment by overcoming her relationship
challenges to start with. Business wise, her solid dedication
can be seen on how she stood still despite the challenges
their bookstore faced, from typhoon to fire. Otherwise, we
will not be seeing this book and school supplies store today.
 Personal Entrepreneurial Competencies
(PEC’s)
4. Committed
Commitment is characterized by solid dedication.
Socorro Ramos, the founder of National Bookstore literally
showed commitment by overcoming her relationship
challenges to start with. Business wise, her solid dedication
can be seen on how she stood still despite the challenges
their bookstore faced, from typhoon to fire. Otherwise, we
will not be seeing this book and school supplies store today.
 Personal Entrepreneurial Competencies
(PEC’s)
5. Ability to accept change.
This is synonymous to being openminded or readiness to try
different things or to hear and consider fresh ideas. We often
hear this among networking businesses: “Openminded
kaba?”. As said many times, “Change is the only constant in
this world” so they say that “forever does not exist”. In
business world, capitalizing on positive changes will help a
business survive and even prosper.
 Personal Entrepreneurial Competencies
(PEC’s)
Let us learn from the founder of our all-time kids-at-heart
favorite, “Kung saan, beeda and saya”, Jollibee! Tony Tan
Caktiong, started an ice cream store in 1975. His store was
not generating enough income. So, he talked to the people
and decided to add some to his menu offering based on their
suggestions. And those are the burgers and fries (too many
to mention), that we love today.
 Personal Entrepreneurial Competencies
(PEC’s)
6. Creative
This is what will make you stand out and go over your
competitors. As an entrepreneur, we must look beyond and
check what is new, to stay in the business to have an edge
over the other competitors.
 Personal Entrepreneurial Competencies
(PEC’s)
Toothpaste used to be on aluminum tubes. Cecilio Kwok
Pedro was the former head of Aluminum Container Inc.,
which manufactured aluminum toothpaste containers for
Procter and Gamble, Unilever (used to be Philippine Refining
Company, and Colgate-Palmolive. Eventually, due to
environmental issues, his clients decided to shift to plastic-
laminated containers causing his company to fail and close in
1986.
 Personal Entrepreneurial Competencies
(PEC’s)
He built Lamoiyan Corporation and produced similar product
with half-price than that of his competitors. To target the
young market, he featured Sesame Street’s characters on the
packaging of his children’s toothpaste alongside with
Filipino-touched Hapee and Kutitap.
 Personal Entrepreneurial Competencies
(PEC’s)
7. Has Initiative.
This is to put oneself in a position where one is personally is
responsible for the failure or success of the business.
 Personal Entrepreneurial Competencies
(PEC’s)
Seeing what is needed, Corazon D. Ong who is a dietician by
profession, started preparing “healthier” options for those
who cannot avoid having canned or frozen goods for food.
CDO corned beef, CDO Ulam Burger and others are some of
the many offerings of the CDO Foodsphere. Wondering why it
is named CDO? Of course, from its founder’s name! Now
what will you name your product?
 Personal Entrepreneurial Competencies
(PEC’s)
8. Profit-oriented.
A good entrepreneur must make sure that the business will
generate income. We do not put up a business just to get
tired the whole day without getting anything in return.
 Personal Entrepreneurial Competencies
(PEC’s)
Somehow different from other success stories, John
Gokongwei is a “rich-to-rags-to-riches” He was born from a
rich family but when his father died, so did their business. He
worked for his family by peddling products in the streets.
Eventually, he learned trading by boat from Lucena to Manila
by truck. After some time, he realized that importing brought
about high risk and low profitability.
 Personal Entrepreneurial Competencies
(PEC’s)
Thus, he borrowed Php 500,000 from China Bank in 1957 and
began a corn milling industry named Universal Corn
Products, the one known today as Universal Robina
Corporation. He even extended his company into diversified
businesses as to expand his net including Robina Land
Corporation and Cebu Pacific
 Eight (8) Personal Entrepreneurial
Competencies (PEC’s)
1. Hardworking
2. Self-confident
3. Disciplined
4. Committed
5. Ability to accept change
 Personal Entrepreneurial Competencies
(PEC’s)
6. Creative
7. Has initiative
8. Profit-oriented
 Aside from these competencies, there are also significant skills
that an entrepreneur must possess. They are as follows:

1. Planning
2. Decision making
3. People Skills
 Aside from these competencies, there are also significant skills
that an entrepreneur must possess. They are as follows:

1. Planning
This is strategic thinking and setting of goals to achieve
objectives by carefully maximizing all the available resources.
 Aside from these competencies, there are also significant skills
that an entrepreneur must possess. They are as follows:

Gregorio Sanchez who was a provincial boar member in Cebu

observed that the pigs sold in the market are malnourished.
He wanted to improve the quality of the livestock, so he
decided to identify the cause by conducting experiments
using only pans and pots he has at home.
 Aside from these competencies, there are also significant skills
that an entrepreneur must possess. They are as follows:

After several failures, he finally found out that bad bacteria

caused the problem. This led to the development of
LactoPAFI probiotic bacteria that soon was known not only in
their province but also nationwide and even worldwide.
 Aside from these competencies, there are also significant skills
that an entrepreneur must possess. They are as follows:

2. Decision Making.
One decision may make or break a business, thus making
this a crucial one. It is the ability to think quickly and make a
wise judgment towards the pre-determined set objectives.
 Aside from these competencies, there are also significant skills
that an entrepreneur must possess. They are as follows:

Manuel “Manny” Villar for instance will not have the Vista
Malls and Camella Homes we have today if he did not make
wise judgments on his endeavors as a businessman. He
applied for bank loans and made the right decisions on
where and when to invest, making him one of the wealthiest
Filipinos today.
 Aside from these competencies, there are also significant skills
that an entrepreneur must possess. They are as follows:

3. People Skills.
Doing business is not a one-man team endeavor. From
people working for you and with you, to those you make
deal with and even your competitors. In relation to the story
we’ve read, it is good to be individually brilliant but still,
there are things that others can do better than you.
 Aside from these competencies, there are also significant skills
that an entrepreneur must possess. They are as follows:

3. People Skills.
Many successful entrepreneurs know how to show their
gratefulness for the blessings they have received by being
blessings to others. Diosdado Banatao and PhilDev offer
scholarships to poor yet deserving students so that they do
not have to stop studying; Tony Tan Caktiong and Busog
Lusog Talino which focused on meeting the nutritional needs
of public-school students; and many others.
 Aside from these competencies, there are also significant skills
that an entrepreneur must possess. They are as follows:

Cecilio Kwok Pedro is not different to these entrepreneurs,

because he decided to choose hearing impaired to work for
his company. This gave the deafmutes an opportunity to
earn, and in return Cecilio gained their utmost respect and
gratitude. This inspired his workers to do their best and at
the same time, inspired not only fellow Filipinos but other
nationalities as well.
Solve the crossword puzzle below by supplying
the correct PEC’s
 Aside from these competencies, there are also significant skills
that an entrepreneur must possess. They are as follows:

Answers:
1. planner
2. decision making
3. Disciplined
4. Hardworking
5. Committed
 Aside from these competencies, there are also significant skills
that an entrepreneur must possess. They are as follows:

Answers:
6. Profit-oriented
7. Creative
8. People skill
9. Self-confident
10. open-minded
Making Generalization of the Lesson

What do you think are the most important

competencies you must possess in order to
be successful in running your chosen
business? Why?
Evaluation:
Identify the PEC’s shown in each situation.

1.Henry Sy, Sr. came to the Philippines at the young age of 12

and worked in his father’s small sari-sari store more than 12
hours every day to help him. There, he devised ways to
increase his income by developing small portions of products
– much like the sachets we see today in the supermarkets.
Evaluation:
Identify the PEC’s shown in each situation.

2. In 2013, Netflix progressed exceptionally well under the

leadership of CEO Reed Hastings, who co-founded the
company as a mail order movie rental business in 1998. Over
the years, Netflix has, of course, evolved into an in-demand
internet streaming company.
Evaluation:
Identify the PEC’s shown in each situation.

3. Founders of Procter and Gamble, William Procter and

James Gamble used to compete with raw materials: animal
oil and fat. Procter is a candle maker while his brother-in-law,
Gamble was a soap maker. They were advised by their
father-in-law to merge their businesses. They followed his
advice and that was how one of the largest and most
successful company was born.
Evaluation:
Identify the PEC’s shown in each situation.

4. Two years after Tony Caktiong started his ice cream

parlor franchise, he decided to serve hamburgers, fried
chicken, and spaghetti as people began to tell him that
they don’t want to eat ice cream all the time.
Evaluation:
Identify the PEC’s shown in each situation.

5. Starbucks is a master of employing value-based

pricing to maximize profits, and they use research
and customer analysis to formulate targeted price
increases that capture the greatest amount
consumers are willing to pay without driving
them off.
Evaluation:
Identify the PEC’s shown in each situation.

Answers:
1. Hardworking
2. Creative
3. People Skill
4. Open-minded
5. Profit-oriented