"ENTREPRENEUR" and but also the society where

"ENTREPRENEURSHIP" the business is located.

The word "entrepreneur" was

derived from the French verb
FACTORS AFFECTING
enterprendre, which means "to
ENTREPRENEURSHIP
undertake." This is pinpointing to
those who "undertake" the risk of 1.Personality Factors which include:
enterprise. The enterprise is created
by an entrepreneur and the process a. Initiative - doing things even
is called "Entrepreneurship." before being told.
b. Proactive - which means he
Entrepreneurs are innovators. They can classify opportunities
are willing to take the risks and and seize it.
generate unique ideas that can c. Problem Solver which means
provide profitable solutions to the he can retain good relations
needs of the market and the society. with other people.
d. Perseverance - meaning he
will pursue things to get
RELEVANCE OF ENTREPRENEURSHIP done regardless of
TO AN ORGANIZATION challenges.
e. Persuasion means that he
1. Development of Managerial
can entice people to buy
Capabilities - this means that
even if they don’t want to.
one of the benefits an
f. A Planner - he makes plans
entrepreneur gets is to
before doing things and does
develop his managerial skills.
not fail to monitor it.
2. Creation of Organizations -
g. Risk-taker which means that
which means that because of
he is willing to gamble but he
entrepreneurship many
will calculate it first.
organizations will exist.
3. Improving Standard of 2. Environmental Factors which
Living this means that include political, climate, legal
entrepreneurship can lift up system, economic and social
the economic status of an conditions and market situations.
individual.
4. Means of Economic
Development this means COMMON COMPETENCIES IN
that not only the life of the ENTREPRENEURSHIP
entrepreneur is improved
1. Decisive an entrepreneur must be 3. Profit Potential - The entrepreneur
firm in making decisions. can be compensated by his profit
coming from the operation.
2. Communicator- an entrepreneur
must have a convincing power 4. Risk bearing - The entrepreneur
needs to gamble but wise enough to
3. Leader an entrepreneur must have
offset the risk.
the charisma to be obeyed by his
employees.

4. Opportunity seeker an TYPES OF ENTREPRENEUR

entrepreneur must have the ability to
1. Innovative Entrepreneurs - They
be the first to see business chances.
are those who always make new
5. Proactive - an entrepreneur can things by thinking of new ideas. They
control a situation by making things have the ability to think newer, better
happen or by preparing for possible and more economical ideas.
future problems.
2. Imitating Entrepreneurs - They are
6. Risk Taker an entrepreneur has the those who don't create new things
courage to pursue business ideas. but only follow the ideas of other
entrepreneurs.
7. Innovative the entrepreneur has
big business ideas and he does not 3. Fabian Entrepreneurs - They are
stop improving and thinking of new skeptical about changes to be made
worthwhile ideas for his business. in the organization. They don't
initiate but follow only after they are
satisfied.
CORE COMPETENCIES IN
4. Drone Entrepreneurs - They are
ENTREPRENEURSHIP
those who live on the labor of others.
1. Economic and Dynamic Activity - They are die-hard conservatives even
Entrepreneurship is an economic ready to suffer the loss of business.
activity because it involves the
5. Social Entrepreneurs - They are
creation and operation of an
those who initiate changes and drive
enterprise with a view to creating
social innovation and transformation
value or wealth by ensuring optimum
in the various fields such as
utilization of limited resources.
education, health, human rights,
2. Innovative - The entrepreneur environment and enterprise
constantly looks for new ideas, thus development.
he needs to be creative.
CAREER OPPORTUNITIES OF High School, 2017, C&E
ENTREPRENEUR publishing page 46, Aduana,
2017).
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 business men.
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. ESSENTIALS IN ENTREPRENEUR'S
4. Sales the entrepreneurship OPPORTUNITY-SEEKING
graduate can apply as a
Basic foundation that the
salesman.
entrepreneur must have in
5. Business Reporter - the
seeking opportunities:
entrepreneur being expert in
the field, can be employed as Entrepreneurial mind frame.
a business reporter. This allows the entrepreneur to
see things in a very positive and
optimistic way in the midst of
MODULE 2: RECOGNIZE A difficult situation. Being a risk
POTENTIAL MARKET taker, an entrepreneur can find
solutions when problems arise.
ENTREPRENEURAL IDEAS
Entrepreneurial heart flame.
The creation of an
Entrepreneurs are driven by
entrepreneurial idea leads to the
passion; they are attracted to
dentification of entrepreneurial
discover satisfaction in the act
opportunities, which in turn
and process of discovery. Passion
results in the opening of an
is the great desire of an
entrepreneurial venture.
entrepreneur to achieve his/her
The entrepreneurial process of goals.
creating a new venture is
Entrepreneurial gut game. This
presented in the diagram below.
refers to the ability of the
(Nick L. Aduana, Etrepreneurship
entrepreneur of being intuitive.
in Philippine Setting for Senior
 This also known as intuition. The c. Wildlife includes all mammals,
gut game also means confidence birds, reptiles, fish, etc., that live in
in one's self and the firm belief the wild.
that everything you aspire can be
1.2 The Societal environment
reached.
includes the various forces like

a. Political forces - includes all the

SOURCES OF OPPORTUNITIES laws, rules, and regulations that
govern business practices as well as
There are many ways to discover
the permits, approvals, and licenses
opportunities. Looking at the big
necessary to operate the business.
picture, some have noticed the
emerging trends and patterns for b. Economic forces - such as income
business opportunities. While level and employment rate.
others are trying to find out their
c. Sociocultural forces- customs,
target market. The following are
lifestyles and values that characterize
some sources of opportunities:
a society.
SOURCES OF OPPORTUNITIES
d. Technological environment new
1. Changes in the environment inventions and technology
innovations.
Entrepreneurial ideas arise when
changes happen in the external 1.3 The Industry environment of
environment. A person with an the business includes:
entrepreneurial drive views these
a. Competitors
changes positively.
b. Customers
External environment refers to
the physical environment, c. Creditors
societal environment, and
industry environment where the d. Employees
business operates. e. Government
1.1 The Physical environment f. Suppliers
includes
2. Technological discovery and
a. Climate the weather conditions. advancement
b. Natural resources - such as A person with entrepreneurial
minerals, forests, water, and fertile interest sees possibility of
land that occur in nature and can be business opportunities in any
used for economic gain. new discovery or because of the
use of latest technology. For For example, an accountant who
example, an individual with has learned the appropriate
knowledge in repair and accounting and management
installation of a machine engine skills and techniques in a
discovers additional engine parts prominent accounting firm can
that considerably reduce fuel start his/her business venture by
consumption. opening his/her own accounting
firm.
3. Government's thrust,
programs, and policies FORCES OF COMPETITION
MODEL
The priorities, projects,
programs, and policies of the It is also known as the "five
government are also good forces of competition". An
sources of ideas. For example, industry environment is a
the use of firecrackers to competitive environment.
celebrate New Year's Eve is Regardless of what product or
strictly prohibited. People services you have, competition is
without entrepreneurial interest always present. Competition - it
will view the ordinance as a plain is the act or process of trying to
restriction. However, for an get or win something.
entrepreneur, it is a business
For example, the prices are lower
opportunity to come up with a
when there is a competition
new product that will serve as a
among the stores.
substitute for firecrackers.

4. People's interest
FORCES OF COMPETITION
The interest, hobbies, and
MODEL
preferences of people are rich
sources of entrepreneurial ideas, Five forces competing within the
like the increasing number of industry:
Internet Cafés at present could
lead to the strong attachment of 1. Buyers
young people to computers. 2. Potential new entrants
3. Rivalry among existing firms
5. Past experiences 4. Substitute products
5. Supplier
The expertise and skills
developed by a person who has
worked in a particular field may
lead to the opening of a related SOURCES OF OPPORTUNITIES
business enterprise.
 1. Buyers a. Substantial capital requirement
The buyers are the ones that
b. Strict government policy
pay cash in exchange for your
goods and services. One c. Difficulty in accessing distribution
example is the influence of channels
the price or in the bargaining
strategy. The buyer has a d. Economies of scale
strong and magnified e. High cost of product differentiation
bargaining power. The threat
of its bargaining power will f. High switching cost
be less if the following 3. Rivalry among Existing Firms
factors are noticed:
Rivalry is a state or situation
a. There are several suppliers wherein business organizations
available in the market. are compelting with each other
b. The buyer has the potential for in a particular market. For
backward integration. example, it depends on the
marketing strategy of your
c. The cost of switching the supplier competitor, like giving freebies
cost is minimal. and special offers. The intensity
d. The product represents a high of rivalry among existing firms is
percentage of the buyer's cost. characterized to the following
factors:
e. The buyer purchases large portions
of the seller's product or services. a. Diversity of rivals

2. Potential New Entrants b. Number of competing firms

A new entrant is defined as c. Characteristics of the products or

companies or businesses that services
have the ability to penetrate or d. Increased capacity
enter into a particular industry.
For example, in the level of e. Amount of fixed costs
capital requirements, if the f. Rate of industry growth
business requires huge capital,
new entrants should decline to 4. Substitute Products
join the business. This gives a
Substitute is one that serves the
threat to the business.
same purpose as another
This can be noticed if there is the product in the market. For
presence of the following factors: example, the consumers decide
to use margarine as a substitute
 for butter. In case the price of c. Substitute products are not readily
butter increases, preferably the available in the market
consumer will gradually switch to
d. The switching cost is very high e.
margarine. A substitute product
The product or service is unique.
can give a big threat in the
industry environment if the
following factors are noticed:
DEFINITION OF TERMS
a. Switching cost is low
Buyers are the ones who pay
b. Preferences and tastes of the cash in exchange for your goods
customers easily change and services.
c. Product differentiation is highly Competition - it is the act or
noticeable process of trying to get or win
something.
d. The quality of substitute products
dramatically improves Entrepreneurial process - can be
defined as the steps taken in
e. The price of substitute product is
order to begin a new enterprise.
substantially lower
It is a step-by-step method one
5. Suppliers has to follow to set up a
business.
The Suppliers are the one that
provide something that is Entrepreneurial ideas -an
needed in business operations innovative concept that can be
such as office supplies and used for financial gain that is
equipment. In an example where usually centered on a product or
supplies and services being service that can be offered for
offered is unstable the intensity money.
of the threat is strong in this kind
Essentials of entrepreneur's
of the competitive force in the
opportunity - seeking - these are
industry. This can be noticed if
the basic foundation that the
there is the presence of the
entrepreneur must have in
following factors:
seeking opportunities, such as
a. The supplier has the ability for entrepreneurial mind frame,
forward integration heart flame and gut game.

b. Suppliers in the industry are few,

but the sales volume is high
External environment refers to
the physical environment,
societal environment, and
industry where the business
operates.

Government - refers to the local

government (municipality, city, or
provincial) or the national
government and its branches.

New entrants - the one who

enters something.

Opportunity - seeking - the

process of considering,
evaluating, and pursuing market-
based activities that are accepted
to be beneficial for the business.

Rivalry is a state or situation in

which people or groups are
competing with each other.

Sources of opportunity can be

attained by assessing and looking
at changes in the environment;
technological discovery and
advancement; government's
thrust, programs, and policies;
people's interest, and past
experiences.

Substitute anything that takes

the place or function of another.

Suppliers are the ones who

provide something that is
needed or wanted.