SHS

ENTREPRENEURSHIP
Quarter 1 - Module 1
RELEVANCE OF ENTREPRENEURSHIP

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Entrepreneurship – SHS
Quarter 1 – Module 1: Relevance of Entrepreneurship

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Every effort has been exerted to locate and seek permission to use these materials
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nor claim ownership over them.

Regional Director: Gilbert T. Sadsad

Assistant Regional Director: Jessie L. Amin

Development Team of the Module

Writers: RAYMUND S. BRIONES, MPA, MBA
Editors: ELENA D. HUBILLA
Reviewers: JOY CABRERA
Illustrator: None
Layout Artist: ELENA D. HUBILLA

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 UNDERSTANDING ENTREPRENEURSHIP

BEGIN!

Senior High School curriculum is designed to help develop critical thinking among
students through identifying community/ society needs and wants. Entrepreneurship is
an essential subject that allows a student to assess the needs and to offer solutions to
the needs of the community.
This subject engages the human mind to explore entrepreneurial opportunities
in the communities.

YOUR TARGETS

After completing the module, you will be able to:

1. distinguish entrepreneurship from the entrepreneur;

2. develop the entrepreneurial mindset;
3. differentiate an ordinary business owner from an entrepreneur;
and
4. identify the salient features of entrepreneurship.

LET’S
PUT TRY
THIS INTHIS!
MIND

Hello Learners!
You will encounter unfamiliar words throughout
this module. I want to help you understand these
unfamiliar words. So, I prepared a list of words
and their definitions.

ENTREPRENEUR – refers to a person who strongly advocates and correctly practices

the concepts and principles of entrepreneurship in operating and managing self-owned
entrepreneurial venture.

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 ENTREPRENEURSHIP – is the art of observing correct practices in managing and
operating a self-owned business enterprise by providing goods and services that are
valuable to customers. In addition, it refers to the act of analyzing community needs and
developing product innovation that will try to solve the needs.

ORDINARY SMALL BUSINESS – pertains to a business enterprise managed and

operated by an owner who is not an advocate of and does not practice the concepts and
principles of entrepreneurship.

ENTREPRENEURIAL MINDSET – is a state of mind/ attitude in making business through

conceptualizing product development.

LET’S TRY THIS!

Task 1: Write True if the statement is correct and False if the statement is incorrect.

_________________________1. An entrepreneur thinks that entrepreneurship is simply

opening and a business enterprise.
_________________________ 2. All business owners are entrepreneurs.
_________________________ 3. Most owners of ordinary small businesses view profitability
as the core of their business.
_________________________ 4. The terms ‘entrepreneurship’ and ‘entrepreneur’ are the
same in context and can be used interchangeably.
_________________________ 5. Knowing all the entrepreneurial concepts will assure a
person of becoming a successful entrepreneur.

DO THIS!

Task 2:.Using the pictures below, answer the questions that follow.

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 1. What business opportunities can you identify seeing these pictures?

___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

2. What products can you offer using the raw materials presented in the picture?

___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

If you were able to enumerate several business opportunities and

products out of the raw materials presented, you have the mindset
of an entrepreneur. ☺ ☺ ☺

CONGRATULATIONS!

LET’S STUDY THIS!

ENTREPRENEUR
The term “entrepreneur” originates from French word “entreprendre” which
means “to undertake.” It connotes a business paradigm which signifies the start of a
new business undertaking. It refers to a particular field of practice or process as
compared to an entrepreneur which is a person practicing entrepreneurship.
Comparatively, the relationship is like that of a manager and the management in which
a manager is a person who practices correctly the concept of management.

The American Heritage Desk Dictionary defines an entrepreneur as a person

who organizes, operates and assumes the risk of business venture. Moreover, it is
defined as a person who strongly advocates and correctly practices the concepts and
principles of entrepreneurship in operating and managing the self-owned business
venture. This venture is called an enterprise.

ENTREPRENEURSHIP
Entrepreneurship is defined as the art of observing correct practices in
managing and operating a self-owned wealth-creating business enterprise by
providing goods and services that are valuable to customers. It also defined as the
process of recognizing an opportunity, testing it in the market, and gathering resources

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necessary to go into business. Entrepreneurship in its simplest sense is creating a
new business venture.

SMALL BUSINESS AND ORDINARY SMALL BUSINESS

Small business refers to a business or enterprise that correctly adopts and
practices the principles of entrepreneurship. It is owned by one person with a limited
workforce of not more than 20 persons. The term also includes the small and medium
enterprises (SMEs) that have been strongly promoted by both government and non-
government organizations (NGOs) in their desire to improve the lives of the Filipino
people through entrepreneurship.

On the other hand, ordinary small business pertains to a business enterprise

managed and operated by an owner who is not an advocate of and does not practice
the concept and principle of entrepreneurship. In the Philippines, small businesses,
whether ordinary or not, are flourishing and sprouting like mushrooms. They can be
found almost anywhere – along streets, municipal roads and national roads, and in
public markets hospitals, schools and amusement places.

Most of the owners of ordinary small businesses in the Philippines may not be
considering entrepreneurship as an advocacy. Some of them may not have even
heard of the term and merely intend their businesses to serve as the source of their
livelihood or as means to lessen financial problems.

Let’s move forward!

Knowing the differences between a small business from a small ordinary
business is essential in understanding Entrepreneurship. Here are other
things that you need to know about Entrepreneurship.

Basic Concepts in Entrepreneurship

1. Entrepreneurship is the primary catalyst for economic growth.
2. To be a successful entrepreneur requires an understanding of how the
economy works.
3. As an ENTREPRENEUR, you accept the risks (calculated risk) and
responsibilities of business ownership.
4. Entrepreneurs start by responding to society's wants and end up changing
society, thereby creating even more wants to be satisfied. As a result,
entrepreneurs are the catalysts that make economic progress happen.
5. Entrepreneurship contributes much in the development of local economies.
Entrepreneurs are principal sources of venture capital. Entrepreneurs provide
jobs. In doing so, they provide for their own and others’ financial security.
6. The chances of a new business succeeding are good with effective planning
and management. Entrepreneurs must learn how to recognize opportunity, test
that opportunity in the marketplace, and assemble a team with the necessary
expertise to execute the business concept.

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 7. The risks of Entrepreneurship are working long hours, having an uncertain
income, being fully responsible, and risking one’s investment.
8. A can-do attitude and desire are important. Successful entrepreneurs are
persistent, creative, responsible, inquisitive, goal-oriented, independent, self-
demanding, self-confident, risk-taking, restless, action-oriented, and
enthusiastic. Entrepreneurs need communication skills, math skills, problem-
solving skills, computer and technical skills, decision-making skills, organizing
and planning skills, teamwork skills, social skills, adaptability skills, and basic
business skills.
9. You may improve your entrepreneurial potentials by strengthening your
entrepreneurial characteristics, by thinking and acting like an achiever, and by
developing your skills.
10. Most good business opportunities result from the entrepreneur’s ability to
recognize unmet consumer needs and unique and unfilled market niches. One
way to identify opportunities is to understand industries and examine and
analyze industry trends.

By now, you have learned key concepts about Entrepreneurship. Also,

you have understood the differences between small business and
ordinary small business. With this in mind, let us review what you have
learned so far.

LET’S TRY THIS!

Task 3.

1. Conduct a community scanning and identify the different business

establishments in your barangay.

2. Identify the products and services offered by the businesses you have
identified.

3. Put a check mark if those businesses answer the needs of the community
through their products and services and if they have innovated their
products/services

4. Analyze and identify the businesses whether it is an Ordinary Small Business

or Small Business by practicing the entrepreneurial concept.

(Use the table in the next page for this activity.)

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 Does the business Does the Remarks
Business Name Products and/or answer the needs business (Ordinary Small
Services of the community innovate Business or Small
through their products and Business practicing
products? services? entrepreneurial
concept)

Before you proceed to the next page, think about this: An

entrepreneur transforms feasible new ideas into an entrepreneurial
venture, while an ordinary small businessperson only builds upon existing
ideas to gain immediate earnings from his or her business

KEEP THIS IN MIND

FORMS OF ENTREPRENEURSHIP

1. Social Entrepreneurship
Any creative and innovative solution applied to solve social problems
Involves social mission
Search for approaches to move poor people out of poverty
Bottom line: people, profit, planet

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 2. Business Entrepreneurship
For profit
Study of systems, structure, and staffing to make a corporation stay
competitive, innovative, and profitable on a sustainable basis through
keeping the Sense of Mission alive as you grow, re-instilling
customer/product vision in every employee, fostering high-speed
innovation, and making self-inspired behavior for the organization
standard.

SALIENT FEATURES OF ENTREPRENEURSHIP

The salient features of entrepreneurship provide better understanding of the

whole concept. They also act as the point of reference in determining whether a
particular business endeavor is operating within the realm of entrepreneurship. From
its operational definition, entrepreneurship consists of five salient features.

1. IT 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. Therefore, is not
static or stagnant. It continuously grows, develops, improves and
expands; the change does not stop.
✓ Entrepreneurship is dynamic. By the moment the economic activity
changes, so with the political, social and entrepreneurial activities.
✓ It is closely related creativity. By creativity, there is constant change
or evolution that contributes towards the enhancement of the
enterprise. Creativity and innovation are the backbone of
entrepreneurship.

2. IT IS A WEALTH CREATING VENTURE

✓ In most instances, ordinary small businesspeople equate wealth with
profit. Entrepreneurship, however, is operating within the concept
wealth creation rather than profit generation. Wealth is defined as the
abundance of money, property or possession.

3. IT PROVIDES VALUABLE GOODS AND SERVICES

✓ The owner of a business, in most instances, is engaged in the sale
of goods and services. However, the mere act of selling goods or
providing services does not make a person perform or act within the
concept of entrepreneurship. Anyone can sell goods or services for
price.
✓ One essential principle in entrepreneurship then is, “not to sell waste
to consumers but only valuable goods and services. Anything of no
value to anybody is definitely a waste. The entrepreneur defines
value from the perspective of the buyers and not only from his or her
own because what is valuable to the entrepreneur may not be of any
value to the consumers.

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 4. IT ENTAILS OPENING AND MANAGING THE SELF-OWNED
ENTERPRISE
✓ The entrepreneur opens his/her business under the principle of
entrepreneurship. It must be self-owned to qualify as an
entrepreneurial endeavor. A business is considered self-owned when
the person managing its daily activities is also the owner. This is a
straightforward requirement of entrepreneurship. Businesses that are
being managed by others for the benefit of the owners do not fall
within the sphere of entrepreneurship. Such businesses are
operating under the concept of intrapreneurship.

5. IT 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.”
✓ Once an entrepreneurial venture is born because of new ideas or
opportunities, risk comes simultaneously with the venture.
✓ Risk cannot be detached from any entrepreneurial venture and the
only way to remove it is to close the venture.

By now, you have learned two major forms of entrepreneurship and

their characteristics. Also, you have learned the salient features of it.
To further enhance what you have learned, let us proceed to your
guided activities. Please refer to page 8-9 and 11 -12 as reference for
your next activity.

APPLY WHAT YOU HAVE LEARNED

Task 4.a: Identify the difference and similarity of an ordinary small business and a small business/
enterprise.

ORDINARY
SMALL BUSINESS
SMALL BUSINESS
/ ENTERPRISE
CORE SKILLS for
BUSINESS
VENTURE

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 Task 4.b: Identify the difference and similarity of entrepreneurship and intrapreneurship.

Entrepreneurship Intrapreneurship

Reflect

Task 5: After learning about the key concepts of entrepreneurship, complete the given table.

Three (3) things I learned from the lesson

1 2 3

Two (2) Interesting facts

1 2

One (1) question I still have

You made it!

You just succeeded in learning important concepts about
Entrepreneurship. Remember that not all persons involved in
business are entrepreneurs. You have to consider that
entrepreneurs have distinct skills to be called Entrepreneurs.

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 ASSESS WHAT YOU HAVE LEARNED

Task 6: Answer the following questions. Write the letter corresponding to your answer on your
notebook.

Part A.
1. It refers to the art of observing correct practices in managing and operating a
self-owned wealth-creating business enterprise by providing goods and
services that are valuable to customers.
a. Intrapreneurship c. Venture
b. Entrepreneurship d. Entrepreneur

2. The following are ancient concepts of “entreprendre” except

a. To start c. To earn
b. To venture d. To undertake

3. This is a type of entrepreneurship wherein creative and innovative solution

applied to solve social problems such as poverty and famine.

a. Business Entrepreneurship c. Ordinary Small Business

b. Social Entrepreneurship d. Cooperatives

4. The following are the salient features of entrepreneurship except

a. Providing values to customers c. Profit-creating venture

b. Art of correct practices d. Risk-taking venture

5. “Entrepreneurship is not static or stagnant. It continuously grows, develops,

improves and expands; the change does not stop.” What specific salient
feature of entrepreneurship is being referred to?

a. Art of correct practices

b. Opening and Managing self-owned business
c. Risk-taking Venture
d. Providing values to customers

Part B. Essay

1. What do you understand about the statement “Risk is inherent in an

entrepreneurial venture”? (Explain your answer in complete sentences.)

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 ______________________________________________________________
______________________________________________________________
______________________________________________________________

2. How will you apply the things you have just learned in this module on your
daily life?
______________________________________________________________
______________________________________________________________
______________________________________________________________

CONGRATULATIONS!
You completed module 1.

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Answer Key

Task 1: True or False

1. False
2. False
3. True
4. False
5. True

Task 2: Entrepreneurial Mindset

Question 8 points 6 points 4 points 2 Points

1 Cited 4 Cited 3 Cited 2 Cited 1
business business business business
opportunities opportunities opportunities opportunities
2 Cited 7-8 Cited 5-6 Cited 3-4 Cited 1-2
products out of products out of products out of products out of
the raw the raw the raw the raw
materials materials materials materials
presented presented presented presented

Task 3: Community Scanning.

Question 8 points 6 points 4 points 2 Points

1 Cited 7-8 Cited 5-6 Cited 3-4 Cited 1-2
businesses in businesses in businesses in businesses in
the community the community the community the community
during the during the during the during the
community community community community
scanning scanning scanning scanning

Task 4: Similarity and differences

Question 8 points 6 points 4 points 2 Points

Similarity Cited 4 Cited 3 Cited 2 Cited 1
similarities similarities similarities similarity
Differences Cited 4 Cited 3 Cited 2 Cited 1
differences differences differences difference

Task 5: Reflection

Task 6:

Part A

1. b 2. c 3. b 4. c 5. a

Part B
(Answers may vary.)

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References

Entrepreneurship in Philippine Setting – Nick L. Aduana

Small Business Management (An Entrepreneurial Emphasis) – Longenecker, Moore,

Petty and Palich

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