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Module 2 - Week 2-Salient Features of Entrepreneurship

The document summarizes the key features of entrepreneurship according to an introductory chapter on the topic: 1. It outlines five main features - being an art, wealth-creating venture, providing valuable goods/services, opening and managing a self-owned enterprise, and risk-taking. 2. It explains each feature in more detail, such as entrepreneurship involving creativity, constant change, and correct practices rather than fixed rules. 3. It emphasizes that all businesses involve risk due to uncertainty, and that entrepreneurs accept risks rather than avoiding them.

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Jenny Rose Libo-on
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
7K views

Module 2 - Week 2-Salient Features of Entrepreneurship

The document summarizes the key features of entrepreneurship according to an introductory chapter on the topic: 1. It outlines five main features - being an art, wealth-creating venture, providing valuable goods/services, opening and managing a self-owned enterprise, and risk-taking. 2. It explains each feature in more detail, such as entrepreneurship involving creativity, constant change, and correct practices rather than fixed rules. 3. It emphasizes that all businesses involve risk due to uncertainty, and that entrepreneurs accept risks rather than avoiding them.

Uploaded by

Jenny Rose Libo-on
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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LEARNING OUTCOMES
At the end of this chapter, the learner should be able to:

enumerate the salient features of entrepreneurship


explain each feature of entrepreneurship
interpret features based on their prior knowledge

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MODULE 1- CHAPTER 1-LESSON 2-SALIENT FEATURES OF ENTREPRENEURSHIP (WEEK 2)

PRE-TEST- What are the important features of entrepreneurship?

INTRODUCTION

From its operational definition, entrepreneurship consists of five salient features.


1. It is an art of correct practices.
2. It is a wealth-creating venture.
3. It provides valuable goods and services.
4. It entails opening and managing the self -owned enterprise.
5. It is a risk-taking venture.

The salient features of entrepreneurship provide better understanding of the whole concept. They
also act as the point of reference in determining whether a business endeavor is operating within
the realm of entrepreneurship. Noticeably the salient features of entrepreneurship do not include
entrepreneurship as a source of livelihood or as the answer to the financial problems of the owner
of the business

ENTREPRENEURSHIP IS AN ART OF CORRECT PRACTICES


Entrepreneurship is an art not a science. It is not governed by fixed and absolute rules, whereas
science is. Thus, there is constant change which denotes movement and innovation.

As an art, entrepreneurship is closely related to creativity. By creativity, there is a constant change


or evolution that contributes towards the enhancement of the enterprise. Creativity results in new
ideas which are the backbone of entrepreneurship. Entrepreneurs keep on searching for something
new. They find ways to transform new ideas into entrepreneurial opportunities.
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MODULE 1- CHAPTER 1-LESSON 2-SALIENT FEATURES OF ENTREPRENEURSHIP (WEEK 2)

As a future entrepreneur, one should always remember that nothing is permanent in the field of
entrepreneurship. What is applicable to one entrepreneur may not be applicable to another. Art in
entrepreneurship is also related to correct practices or ways of carrying out entrepreneurial
activities. The owner of an ordinary small business has the freedom to manage and operate his/her
business according to what pleases him/her/ The entrepreneur, however, has to perform
entrepreneurial activities correctly regardless of whether they are undertaken easily or not.

IS A WEALTH-CREATING VENTURE
The feature sounds so simple, but this has been most misconstrued because of the word wealth.
We often hear the old maxims “Health is wealth. However, this is not the concept of wealth in
entrepreneurship. Wealth is created when the benefits derived by the owner in providing goods
and services to the customers are abundant enough to cover the costs incurred by the business.

Wealth is created when the value of the business has increased abundantly, and the life of its
owner has improved considerably.

ENTREPRENEURSHIP PROVIDES VALUABLE GOODS AND


SERVICES
Valuable goods and services highly satisfy the target buyers in terms of quality and price. The
entrepreneur convinces the consumers that they gain more benefits than what they pay for the
goods and services.

Value is basically the opposite of waste. Products and services are considered valuable when
they provide additional benefits to the buyers and users.

ENTREPRENEURSHIP ENTAILS OPENING AND MANAGING


THE SELF-OWNED ENTERPRISE
This feature highlights two important elements: the concept of opening a self-owned enterprise
and the concept of managing it. Entrepreneurship is nor about the size of the business but rather
about its sole ownership. In other words, entrepreneurship includes small, medium, and
multimillion business that are managed by their respective owners.
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MODULE 1- CHAPTER 1-LESSON 2-SALIENT FEATURES OF ENTREPRENEURSHIP (WEEK 2)

ENTREPRENEURSHIP IS A RISK-TAKING VENTURE

The basic concept of risk in entrepreneurship can be expressed in this statement, “Risk is inherent
in an entrepreneurial venture” The approach in handling business risks differentiates an
entrepreneur from an ordinary businessperson.

All businesses, whether big or small, are operating within the concept of risk-taking because of
uncertainty. Business risks cannot be eliminated. They are inherent in the venture. Entrepreneurs
face the business risks instead of avoiding them. They find ways to minimize the effects of risks.

LESSON ENRICHMENT: Read 5 Things Every Entrepreneur Should Know About Risk-
Taking (www.entrepreneur.com/article/270320)

CHECK YOUR UNDERSTANDING


Assuming you have your own business, ask yourself the following questions:

1. Is creativity present in the operation of small businesses along the


streets and highways and in your neighborhood? Why do you say so?
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2. Is your small business a wealth-creating venture or an income generating


enterprise? Why do you say so?
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MODULE 1- CHAPTER 1-LESSON 2-SALIENT FEATURES OF ENTREPRENEURSHIP (WEEK 2)

REMEMBER
✓ Entrepreneurial concepts and principles are not fixed. They constantly
change and are highly influenced by the changes in the environment. The
evolutionary processes happening in entrepreneurship are mainly due to the
creativity and innovation born or created from business opportunities.

✓ All businesses, whether big or small, are operating within the concept of
risk-taking because of uncertainty. Nobody knows what will happen
tomorrow. Business risks cannot be eliminated. They are inherent in the
venture. Entrepreneurs, however, face the business risks instead of avoiding
them. They find ways to minimize the effects of the business risks.

POST-TEST
1. Discuss why profit is not a good measure to determine the success
on an entrepreneurial venture.
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2. Differentiate an entrepreneur from an ordinary businessperson.


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3. Explain the idea of this statement: “Entrepreneurship will always


be dynamic but people-centered”.
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