ST.

JOHN PAUL II INSTITUTE OF TECHNOLOGY

FRA Building, Carmen West, Rosales, Pangasinan / Aguila, Sevilla
Road, San Fernando City, La Union

MODULE 1 – 1ST QUARTER

INTRODUCTION TO ENTREPRENEURSHIP

ENTREPRENEURSHIP
 OBJECTIVES
At the end of this module, the learners should be able to:
 Discuss the relevance of entrepreneurship to an organization;
 Explain the key concepts of common competencies as well as core competencies in
Entrepreneurship;
 Explore job opportunities for Entrepreneurship as a career.

LESSON
1 INTRODUCTION TO ENTREPRENEURSHIP

Businesses are the backbone of the economy. Entrepreneurs play an important role in
developing the economy through providing the needed products and services including the
solution to the problem of unemployment.
Entrepreneurs are encouraged by the economy because they can provide a lot of
opportunities for the unemployed young people. It will increase in per capita income, higher
standard of living and increased individual saving, revenue to the government in the form of
income tax, value added tax, export duties, import duties, and balanced regional development.

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 entrepreneurships many
organizations will exist.
3. Improving standard of living – this means that not only the life of the entrepreneur is
improved but also the society where the business is located.
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 enterprende 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, willing to take risks and generate new ideas to make it
unique and profitable solutions to the present-day problems.
Three Key Concepts of Entrepreneurship:
1. Entrepreneurship – process of inventing, innovating, and cresting new ideas and turning
them into action with a purpose of making wealth, give opportunities and satisfy the
needs and wants of the customers.
2. Enterprise
There are two meanings of the word “Enterprise”
a. Enterprise is another term used to address a business. It is the product (goods or
services) one is offering for sale.
b. It is also used to describe the act of someone who takes the initiative by taking risks
by putting-up new product, investments and running a business.
3. Entrepreneur – the person who does the initiative and risks. Entrepreneur is someone
who create the idea and make an enterprise.

FACTORS AFFECTING ENTREPRENEURSHIP

1. Personality Factors which includes:
a. Initiative – which means 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.
f. A Planner – meaning he makes plan before doing things and do 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. Leadership – an entrepreneur must have the charisma to be obeyed by his employees.
An entrepreneur must motivate his subordinates to perform their best to achieve the
company’s goals and objectives.
4. Opportunity Seeker – an entrepreneur must have the ability to be the first to see
business chances.
5. Proactive – controlling a situation by making things to happen or by preparing for
possible future problems.
6. Risk Taker – they have the courage to pursue their business ideas.
 7. Innovative – the entrepreneurs have big business ideas and they do not stop improving
and thinking of new worthwhile ideas for their 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. Communication – Entrepreneurship involves communication wherein the entrepreneur
can listen, ask question, and convey thoughts. Communication helps the entrepreneur to
assess the needs of the consumer.
3. Innovative – Entrepreneurs constantly look for new ideas, thus he needs to be creative.
4. Profit Potential – the entrepreneur can be compensated by his profit coming from the
operation. How much is the compensation of an entrepreneur in return after the series of
risks encountered.
5. Risk bearing – the entrepreneur needs to gamble but wise enough to offset the risk.

TYPES OF ENTREPRENEURS
1. Innovative Entrepreneur – 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 sceptical about changes to be made in the
organization. They don’t initiate but follow only after they are satisfied.
4. Drone Entrepreneur – they are those who lives 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 advices to other entrepreneurs and would be businessman.
2. Teacher – a graduate of entrepreneurship can use his knowledge in teaching.
3. Researcher – the entrepreneur can be employed as researcher by an enterprise.
4. Sales – the entrepreneur can be employed as researcher by an enterprise.
5. Business reporter – the entrepreneur being expert in the field, he can be employed as
business reporter.

Now that you are finished accomplishing

this module, let us check what you have
learned.
 ASSESSMENT

Direction: Answer the questions given below by writing the letter that contains the correct
answer.
1. The entrepreneurs who create new ideas are called?
a. Drone c. Imitating
b. Fabian d. Innovative
2. The entrepreneur who lives on the labor of others is called?
a. Drone c. Imitating
b. Fabian d. Innovative
3. These are entrepreneurs who are to follow the path shown by innovative entrepreneur.
a. Fabian c. Innovative
b. Imitating d. Social Entrepreneurs
4. Which of the choices is NOT part of the environmental factors?
a. Climate
b. Family background of the manager
c. Political
d. Weather condition
5. All except one does NOT belong to the group?
a. Political protest c. Strikes
b. Product d. Unfair trade practices
6. Entrepreneur means:
a. To take risk c. To research
b. To undertake d. To improve standard of living
7. It is a personality factor which means convincing customers to buy the product.
a. Persuasion b. Proactive
 c. Risk-taker d. Self-confidence
8. Which of the following is NOT a function of an entrepreneur?
a. Conduct research c. Risk taking
b. Make no changes with his d. Skills management
product
9. It is a personality factor which means “doing things even before being told”.
a. Initiative c. Persuasion
b. Perseverance d. Proactive
10. Which is NOT a career for an entrepreneur?
a. Business consultant c. Research and development
b. Domestic Helper d. Sales
11. The entrepreneur who is sceptical about the changes in the company is called?
a. Drone c. Imitating
b. Fabian d. Social entrepreneur
12. They are entrepreneurs who drive social innovation and transformation in various fields.
a. Drone c. Imitating
b. Fabian d. Social entrepreneur
13. Which of the statements below is true?
a. Entrepreneur has limited career opportunities.
b. Entrepreneurs are prone to constant high income.
c. Entrepreneurs are contributor to the development of the society.
d. Entrepreneurs are the reasons for unemployment problem.
14. Which of the statement is NOT true?
a. An entrepreneur will patiently wait for his efforts to bear fruit.
b. The profit of the entrepreneur is immediate.
c. All entrepreneurs are successful.
d. Entrepreneurs are researchers.
15. Which of the following is NOT true?
a. Entrepreneurship create organizations
b. Improves the life of the entrepreneur alone
c. Entrepreneurs improves the economy
d. None of the choices

ADDITIONAL ACTIVITY
 Research on the life story of at least two (2) successful entrepreneurs in our
country: identify how they started their business and how much is their capital when they
are still starting up a business. Then after your research, write a brief essay or paragraph
reflecting your opinion on what makes them a successful entrepreneurs? What qualities
do they possess?