GROUP 1

CHAPTER 1: A
PERSPECTIVE ON
ENTREPRENEURSHIP
BSA 2 - A
Prudenciado, Ma.
Evan
Ibatuan, Jane Ashley
Flor, Shane
Omila, John Peter
 ECONOMIC
DEVELOPMENT:

-Is a scheme aimed at

improving the living
standards of the nations’
citizenry. To achieve
economic development
THE ELEMENTS OF
ECONOMIC
DEVELOPMENT:

·Human
Resources
·Natural
Resources
·Capital
 ENTREPRENEURSHIP
To understand the needs and desires of local
consumers, conducting market research is very
important before starting a business
The
Entrepreneur's
Task
The entrepreneur are responsible for providing
the following:
1.products and services for customers and
producers;
2. employment;
3.taxes;
4.demand for suppliers' products and services;
and
1. a new product;
2. a new process
of production; INNOVATION
3. the May be defined as
substitution of a the introduction of a
cheaper material
in an unaltered new method,
product; procedure, cus-tom,
device, among
4. the others. Innovation
reorganization of could be any of the
production, following:
internal function,
or distribution
arrangement
leading to
5. an improvement in
instruments or
methods of doing
innovation. Innovation
may also be viewed as INNOVATION
the last stage in an
important
consisting
process
of the
May be defined as
following: the introduction of a
a. invention - which
new method,
refers to the discovery procedure, cus-tom,
or devising of new
products and
device, among
processes; others. Innovation
could be any of the
b. development -
which refers to the following:
process by which the
ideas and principles
generated from the
stage of invention are
embodied in concrete
NEW VENTURES AND
LONG-TERM
ENTERPRISES
A new venture cannot remain as such forever. The entrepreneur must
develop it into a small business or make it grow into a mature and bigger
company if he is to recoup the cost of opening a new venture and take
advantage of the opportunities presented by a mature business.

The transition from a new venture to a successful long-term enterprise

consists of at least four major stages. The stages are as follows:

1. The Prestart-Up Stage

2. The Start-Up Stage
3. The Early Growth Stage
4. The Late Growth Stage
 Entrepreneurship and Business Size To
many people, entrepreneurship means
running a small business. New
business ventures, however, can also
be undertaken on a large scale. Both
small and large businesses are
confronted by problems that are
entrepreneurial in nature.

To effectively compete, business of

whatever size must adapt innovative
EXAMPLES OF INNOVATIONS
ARE THE FOLLOWING:
1 2 3
Offering
business Manufact Selling
services ure and on a
during sale of deferred
Sundays new payment
and products scheme
holidays; ;
 CHAPTER 2: THE NATURE
OF SMALL BUSINESS
What is a Small Business?
Small business - maybe defined by using any of
the two approaches: market share or total
assets.

Types of Small Business:

Small Manufacturing Business - A manufacturing
business is one involved in the conversion of
raw materials into products needed by society.
Small Service Business - Service businesses are
those that provide service in one way or
another.
 Kinds of
Business
According to
SIze

Mediu
m
Public Busine Private
Enterprises ss Enterprises
Example: Land Example:
Bank of the Globe
Philippines Telecom

Micro Cottage Small Medium Large

Business Business Business Business Business
 Micro are favored since they require very little startup capital and have low
Business operating costs. also referred to as a microenterprise, is a term
generally used to describe a business operating with fewer that 10
people. (Street vendors, Carpenter, Landscapers)
Cottage are small-scale businesses where people make goods at home or in
Business small workshops. They can be an important source of income in rural
areas. (Decorative handicrafts, Textiles, Musical instruments,
Shoemaking)
Small functions on a small scale level involves less capital investment, less
Business number of labour and fewer machines to operate. (Baker, Digital
freelancer, House cleaner, Photography)
Medium are businesses with a workforce of 100-499 employees. They are in
Business between small business and large corporations in terms of size and
complexity. (Manufacturing, Construction, Healthcare)

Large are companies that employ 250 or more people and can operate on a
Business national or international level. They can have a significant impact on
the economy. (Toyota, Apple, Google, Samsung)
 Types of Small
SmallBusiness
business may be classified into five types: (1)
manufacturing, (2) service, (3) wholesaling, (4) retailing, and
(5) general construction firms.

Small Mananufacturing
Business
is one involved in the conversion of raw materials into products
needed by society. Examples of small business engaged in
manufacturing are: bakeries, tricycle sidecar assembly shops,
bagoong manufacturers, restau-rants, and others.
 SMALL SERVICE BUSINESS

1. Business services those that provide service

to other business
2. Personal services those that provide service
to the person.
3. Repair services those that provide repair
services to owners of various machinery and
appliances.
4. Entertainment and recreation
WHOLESALING

refers to the activities of

persons or
establishments which
sell to retailers and
other merchants, and/or
to industrial,
institutional and
commercial users, but
RETAILING

covers all activities

involved in the sale of
goods and/or services
to the final
consumers. The bulk
of retailing activities
are performed by
small businesses.
 GENERAL CONSTRUCTION
FIRMS

are those engaged in

the construction of
buildings whether for
private individuals or
firms, or for the
government.
 CHARACTERISTICS OF
SMALL BUSINESS
Small business have their own distinct characteristics.
They are following:
1. Independent
Management
the owner is also the
2. Small Capital manager.
Requirement
small business requires only 3. Mostly local
small capital and they can be operation
supplied by a single or a few small business usually operates
individuals. in a certain locality although
there are cases when the market
is not confined to a local area.
 1. Provides of
economic
ECONOMIC
opportunities for IMPORTANCE
entrepreneurs.
OF SMALL
2. Provides of
products and important
BUSINESS
- Small businesses
role
play an
in the
services to development of our economy.
consumers. They assumes the following
functions:
3. Suppliers of
products and
services to other
businesses require
raw materials,
semi- finished
parts, finished
components, or
even labor, which
 ECONOMIC
IMPORTANCE
4. Distributors OF SMALL
of products and
services of important
BUSINESS
- Small businesses
role
play an
in the
other development of our economy.
businesses. They assumes the following
functions:

5. Supporters
of government
6. Providers of
employment
ADVANTAGES OF
OPERATING A SMALL
BUSINESS
An individual has various options to improve
his economic lot.

They are the following:

1. be an employee;
2. be a professional;
3. be a small business operator (SBO)
 Small Provider
Economic opportunities for entrepreneurs
Business of

Provider
Products and services to consumers
of

Provider
Funds to the government in the form of taxes
of

Provider
Employment to the labor force
of

Supplier
Products and services to other businesses
of

Distribut
Products and services produced by large firms
or of
 THE FOLLOWING ARE THE
BENEFITS IF THE PHYSICIAN
CHOOSE TO OPERATE SMALL
BUSINESS
1. The opportunity to gain control
over his own destiny
2. The opportunity to reach his full
potential
3. The opportunity to reap unlimited
profits, and
4. The opportunity to make a
contribution to society and receive
recognition for his efforts
DISADVANTAGES OF
OPERATING A SMALL
BUSINESS
Although certain advantages accrue to the small
business operator, there are certain disadvantages that
must be considered.

These are the following:

1. uncertainty of income;
2. risk of losing your entire capital investment;
3. lower quality of life until the business gets
established;
4. complete responsibility;
5. having to serve undesirable customers;
 CHAPTER 3: THE ETHICAL
AND SOCIAL
RESPONSIBILITIES OF
What IsTHE ENTREPRENEUR
Business Ethics
-Ethics is the study of moral
obligation involving the distinction
between right and wrong.

As a consequence, the study of

ethics paved the way for the
adaption of the general rules of
conduct in society.
The rules about how entrepreneurs ought to
behave are referred to as business ethics.
The ethical behavior required of
entrepreneurs is determined by the
1. The
following:
public;
2. Interest groups like the Society of
Prevention of Cruelty to Animals;

3. Business
organizations;
4. The individual's personal morals and
values. standards.
 FACTORS INFLUENCING
ETHICAL BEHAVIOR

-Ethical behavior, whether by a person or a

business entity, is influenced by any or a
combination of the following:

1. The situation
2. Reward system;
3. Individual differences; and
4. Other factors.
Adherence to Establishm
Ethical ent of
Standards Trust

by -between buyers and

Entrepreneurshi sellers
ps -between lenders and
borrowers

Smooth Flow
of Business
Exchanges

Example: selling is
faster
 How Ethical Behavior Is
If the entrepreneur believes
Encouraged that business success requires good ethical
behavior, his next concern would be to encourage his people to adapt
good ethical behavior.

There are certain ways of encouraging ethical behavior among

employees. These
are the following:

1. adaption of a code of ethics;

2. institution of rewards and punishments concerning ethical behavior;
3. adaption of internal programs for resolving conflicts;
4. creation of ethics review committees;
5. provision of training in ethics for employees; and
CODE OF ETHICS

-The code of ethics is

a formal document
indicating the
entrepreneurship's
adapted principles of
appropriate behavior.
A code of ethics is
very useful to the firm
 1. it should refer to
specific unethical
A CODE OF practices like receiving
ETHICS CAN gifts, avoiding warranty
claims, bid-rigging,
BE MADE making fictitious
EFFECTIVE claims, among others;
and
IF THE
FOLLOWING 2. it must be supported
by top management.
REQUIREME Support comes in
NTS ARE various forms such as
providing sufficient
MET: funds for its
REWARDS, PUNISHMENT,
AND ETHICAL BEHAVIOR

A code of ethics is sufficient for some

people if ethical behavior is required.
For many people, however, this may
not be enough to motivate them to
act ethically. If the entrepreneurship
wants to have some measure of
control over the behavior of its
Internal Programs for Resolving
Conflicts
Conflicts arise, even when ethical
conduct of personnel is concerned.

Ethics Review Committees

To encourage ethical behavior, the
entrepreneurship may create an
ethics review committee. This
committee is usually composed of
company employees as well as
Provision of Training in Ethics
Company personnel who are exposed to
activities that are ethically charged must be
provided with sufficient training in ethics. Such
training should make them sufficiently prepared
to deal with various ethical issues they would
encounter in their respective workplaces.

Top Management Support

As mentioned earlier, it is very difficult for any
program or activity to succeed without sufficient
support from top management. For instance,
when unethical con- duct is committed and no
sanction is imposed by top management, it can
be expected that more violations of good ethics
 ETHICAL ISSUES FACING
ENTREPRENEURSHIPS

Entrepreneurships face ethical questions on a

daily basis. These spring from the following
relationships:
1. between the company and the customers;
2. between the company and its personnel and
employees;
3. between the company and its business
associates; and
 Entrepreneurs are expected
RELATIONSHIP WITH by society to treat their
CUSTOMERS customers fairly and not to
act in ways that will be
harmful to them.
Entrepreneurs should provide
support for consumer rights which
are as follows:
1. the right to be safe;
2. the right to be informed;
3. the right to choose; and
 RELATIONS WITH
PERSONNEL AND
EMPLOYEES
There is always the possibility that
business firms, including
entrepreneurships, will commit
unethical acts towards their
employees. Since entrepreneurs
and their staff make decisions on
various business activities like
hiring, promotion, transfer,
compensation, and dismissal, it is
 GOOD ETHICAL CONDUCT
REQUIRES ENTREPRENEURS TO
BE AWARE OF THEIR
RESPONSIBILITIES TO
EMPLOYEES. THESE ARE THE
FOLLOWING:
1. workplace safety;

2. quality of life issues;

3. avoiding discrimination; and

4. preventing sexual harassment.

THANK
YOU
Group 1