ENTREPRENEURSHIP - A strong work ethic - Tolerant of

ambiguity
- Lengthy attention span - Visionary
INTRODUCTION TO THE CONCEPT
Serial Entrepreneurship – The types of entrepreneurs
Famous Entrepreneurs who start several businesses, whether simultaneously
or one after the other
1. Steve Jobs – the heart of Apple’s
8 SIGNS YOU MIGHT BE A SERIAL ENTREPRENEUR
entrepreneurial culture 1. Restless
2. Jeff Bezos & Jack Ma – online shopping 2. Fear regret
(Amazon & Alibaba) 3. Too many talents
4. Try a few ideas at once
3. Larry Page – Co-Founder of Google 5. Made money as a kid
4. Mark Zuckerberg – Founder of 6. Customer of own business
Facebook 7. Dropped out or
8. Look to fix simple life problems
disliked school
Entrepreneurship

Entrepreneurship or the process of Entrepreneurs should Entrepreneurship can

becoming an entrepreneur, requires much more be young and energetic be taught (it’s a method
than simply learning how to run a company. that requires practice).
Entrepreneurs are Entrepreneurs are not
Myths about Entrepreneurship gamblers and start all- extreme risk-takers.
in.
You have to do it all Entrepreneurs
MYTHS FACTS yourself. collaborate more than
they compete.
You need to have
You need money to Entrepreneurship is not connections.
make money reserved for startups Entrepreneurs love the Entrepreneurs act more
- Entrepreneurs spotlight. than they plan.
are motivated Entrepreneurs are Entrepreneurs can be
primarily by born, not made. made as they have life
money. skill.

Startups – a temporary organization in search of a

scalable business model ENTREPRENEURIAL CHARACTERISTICS
TYPES OF START-UP FIRMS
AND COMPETENCIES
1. Salary-Substitute – Firms that basically
provided their owner or owners a similar level
Who is an entrepreneur?
of income to what they would be able to earn in
a. Employee – a person who works in a
a conventional job.
2. Lifestyle – firms that provide their owner or business owned by someone else.
owners the opportunity to pursue a particular b. Entrepreneur – someone who creates
lifestyle and make a living at it. and runs a business.
3. Entrepreneurial Firms – firms that bring new
products and services to the market by Being an entrepreneur is also a calling. It
creating and seizing opportunities regardless is not a career that one can just jump into when
of the resources they currently control.
he or she decides so. It entails a holistic nosiness
talent to be considered one, ranging from
Entrepreneurs are Entrepreneurs do not product and marketing expertise to operations
outgoing. have a special set of
personality traits.
agility, and to financial proficiency.
Why become an entrepreneur?
COMMON TRAITS AND CHARACTERISTICS OF
ENTREPRENEURS • Be their own boss
- A moderate risk taker - Optimistic
disposition • Pursue their own ideas
- A networker - Persuasive • Pursue financial rewards
- Achievement motivated - Promoter
- Alert to opportunities - Resource Characteristics of Successful Entrepreneurs
assembler
- Creative - Self-confident
- Decisive - Self-starter
• Aptitudes and Attitudes
- Energetic - Tenacious
- A strong work ethic - Tolerant of
ambiguity
- Lengthy attention span - Visionary
 a. Aptitude – a natural ability to do order; the ability to plan well and
particular type of work. manage your time.
b. Attitude – a way of viewing or g. People Skills: The ability to
thinking about something that affects persuade and motivate people;
how you feel about it. knowing both how to be a leader and
work in a team.
• Personal Characteristics
Think Like an Entrepreneur
a. Courage: A willingness to take risks
in spite of possible losses. • Observe
b. Creativity: Inventing new ways of • Listen
doing things; thinking outside the • Think
box.
c. Curiosity: The desire to learn and WEALTH CREATION, MANAGEMENT, AND
ask questions. ITS VALUE: DEVELOPING
d. Determination: Refusing to quit in ENTREPRENEURIAL MINDSET
spite of obstacles. Types of Mindset
e. Discipline: The ability to stay
focused and follow a schedule to 1. Fixed Mindset - the assumption held by
meet deadlines. people who perceive their talents and
f. Empathy: Being sensitive to the abilities as set traits
thoughts and feelings of others. 2. Growth Mindset – the assumption held
g. Enthusiasm: Being passionate by people who believe that their abilities
about something; the ability to see can be developed through dedication,
problems as opportunities. effort, and hard work.
h. Flexibility: The ability to adapt to
new situations; a willingness to
change.
i. Honesty: A commitment to being
truthful and sincere with others.
j. Patience: Recognizing that most
goals are not reached overnight.
k. Responsibility: Being accountable
for your decisions and actions; not
passing the buck.

• Skills
a. Business Skill: Understanding how Entrepreneurial Mindset
to create and manage a business.
b. Communication Skill: The ability • The ability to quickly sense, take action
to listen well, write well, and speak and get organized under uncertain
well. conditions.
c. Computer Skill: The ability to use • The ability to persevere, accept and learn
technological tools effectively. failure, and get comfortable with a certain
d. Decision-Making and Problem- level of comfort.
Solving Skills: Knowing how to Elements of Entrepreneurial Mindset
apply logic, information, and past
experiences to new decisions and 1. Passion
problems. ⎯ an intense positive emotion,
e. Mathematical Skill: Using math to which is usually related to
create budgets, keep accurate entrepreneurs who are engaged
records, and analyze financial in meaningful ventures, or tasks
statements. and activities, and which has the
f. Organizational Skill: The knack of effect of motivating and
keeping tasks and information in stimulating entrepreneurs to
 overcome obstacles and remain Business Leader
focused on their goals.
Usually applies innovation, superior
judgment, and organizational talent in the
2. Habit
following:
⎯ sometimes unconscious pattern of
behavior that is carried out often 1. Creating new products and new markets.
and regularly. 2. Introducing new processes and
⎯ Good habits can be learned organizational mechanisms.
through a “habit loop”- a process 3. Securing resources such as technology
by which our brain decides and information in order to gain distinct,
whether a certain behavior should sustainable, competitive advantages.
be stored and repeated.
Qualities of Entrepreneur and The Cultural
Aspect of Entrepreneurship
3. Self-Leadership
⎯ A process whereby people can • N-Entrepreneurs
influence and control their own ⎯ They led the local business scene
behavior, actions, and thinking to and made successful forays
achieve the self-direction and abroad.
self-motivation necessary to build ⎯ They were mostly in food
their entrepreneurial business processing, property
ventures. development, and trade
(including shopping malls).

• Entrepreneurship as primarily the

product resources as well as
opportunities and constraints in the
society.
⎯ The supply of entrepreneurs
tends to be uneven in time and
place.
⎯ Stresses the importance of the
firm’s internal and external
Steps to Self-Leadership
motivational states.
a. Creativity habit – the capacity to
Stages of Development in Entrepreneurship
produce new ideas, insights, inventions,
in the Philippines
products, or artistic objects that are
considered to be unique, useful and of
value to others.
b. Fear Factor – the danger of fear that it
can cause self-doubt, insecurity, and
discomfort even before the beginning of
the creative process
c. Creative Mind (Improvisation) – the art
of spontaneously creating something
without preparation

ENTREPRENEURSHIP IN THE PHILIPPINES Colonial Era

Business Undertaker • 18th Century
The notion of the entrepreneur as simply ⎯ Manila-Acapulco Galleon Trade
one who forms and manages a business apparent ⎯ China-Acapulco Galleon Trade
in government programs that attempt to develop ⎯ Tobacco Monopoly
small-scale industries. ⎯ Sugar plantations in Negros
region.
 • 19th Century ⎯ The historical patterns in the
⎯ Large landholdings were being country’s production, trade, and
concentrated in the hands of a few employment structures are
families and organizations. suggestive of long-term economic
⎯ Agriculture thrived in several performance.
provinces and, along with it, local ⎯ The decades-long transformation
crafts, commerce, and trade. of the Philippines into a service
economy and the stagnation of its
• Mid-19th Century manufacturing sector limit the
⎯ Among the prominent expansion potentials for
entrepreneurs who responded to employment and GDP.
the opportunities of the 19th
Economic Restructing and Cronyism during
century were the Roxases and the
the Authoritarian Period
Barrettos.
• Marial Law
• 20th Century ⎯ Filipino-foreign joint ventures in
⎯ The production of primary the Philippines increased.
commodities increasingly ⎯ Promote the production of non-
became specialized and adapted traditional export commodities
for export to the American market. following the expiration of the
⎯ Liberal Economic Policy Laurel-Langley Agreement.
⎯ Philippine Autonomy Act (Jones ⎯ Infrastructure projects attracted
Law) many a conglomerate to expand.
⎯ Creation of PNB ⎯ Increased outmigration of Filipino
⎯ Tydings-McDuffie Independence workers.
⎯ Advances in transportation and ⎯ Progress in infrastructure,
communications as well as mass transportation and
production and mass distribution communication, the supply of
conditioned the rise of modern technical and managerial skills, as
industrial enterprise. well as the development of
markets associated with foreign
Free Trade and Protectionism during the capital therefore created
Independence Period tremendous opportunities for
• Post-Colonial Period entrepreneurship and
⎯ Philippine Free Trade Act (Bell diversification.
Trade Act) Economic Liberalization during the Post-
⎯ Filipino First Policy Marcos Period
⎯ The emergence of a Filipino
manufacturing elite in the 1950s • Aquino and Ramos
stimulated the banking and ⎯ Improvements in the entry of
financial industry. foreign investments as well as in
⎯ Philippine colleges and trade policy stimulated the growth
universities were producing a of domestic markets, providing
larger supply of technical and employment and boosting local
managerial skills than what entrepreneurship.
domestic industry could absorb. ⎯ Lucion Tan, Zobel de Ayala
Group, Lopez Group, Gokongwei
• Philippine Economic Structure and Firms
Performance since the 1950s ⎯ The benefits of a liberal economic
⎯ The government induced the regime, albeit a severely
development of manufacturing criticized one, have not been
industries, particularly consumer confined to big and established
goods. businesses.
How Strong is the Philippine • Supports – supports mechanisms have
Entrepreneurship Ecosystem? increased over time. Time to take stock
and coordinate.

How effective is the Philippine • Finance – access to finance might not be

Entrepreneurship Ecosystem? major constraint

How inclusive is the Philippine

Entrepreneurship Ecosystem?

• Human Capital – Filipino firms train a

greater portion of their employees, but
don’t spend much time on software.

Assessing the Ecosystem Using the World

Bank’s Entrepreneurship Diagnostic Toolkit

• Policy – it’s less bureaucratically fun in • Culture – the perceived Filipino

the Philippines. entrepreneurial traits are above world
averages.
 a definite window of opportunity
that opens only once.

2. The Entrepreneur and the

Management Team
a. Skills – regardless of how right the
• Markets – few businesses are ready for
opportunity may seem to be, it will
the digital economy.
not become a successful business
unless it is developed by a person
with strong entrepreneurial and
management skills.

3. Resources
a. Capital - successful entrepreneurs
are frugal with their scarce
resources. They keep overheads
low, productivity high, and
ownership of capital assets to a
minimum.

Determining Resource Needs and Acquiring

Resources

• Assess what resources are crucial for the

company’s success in the marketplace.
ENTREPRENEURIAL PROCESS • A complete set of resources includes
Jeffry Timmon’s Framework of Driving everything the business will need, but a
Forces business does not have to do all of its
work in-house with its own employees.
• Even startup companies can get
amazingly good terms from outside
suppliers.
• Low-end and high-end areas rent/lease

Startup Capital
Two type: Debt and Equity
1. Debt – you don’t have to give up any
ownership of the business, but you have
to pay current interest and eventually
1. Opportunity repay the principal you borrow.

a. Idea – too many would-be 2. Equity – you have to give up some of the
entrepreneurs are almost ownership to get it, but you may never
obsessed with finding a unique have to repay it or even pay a dividend.
idea.
b. Customer – there is no market • Capital Gain vs. Dividends
unless customers have a real need • Return of Investment (ROI)
for the product – a proven need
rather than a hypothetical need in DIFFERENT TYPES OF BUSINESS
the mind of a would-be
1. Manufacturing
entrepreneur.
c. Timing – time plays a crucial role ⎯ Converts material goods suitable
in many potential opportunities. In for use and then sell those goods
some emerging industries, there is to others.
 ⎯ Industrial – goods are sold to
other manufacturing businesses. Franchise – an arrangement in which an
⎯ Consumer – goods are products established company sells the right for others
to use the company’s name and operating plan
that are eventually bought by the
to sell products or services.
public.

2. Wholesaling LIABILITY
⎯ Buys goods in large quantities,
typically from manufactures, and Liability is the legal obligation of a
resells them in smaller batches to business owner to use personal money and
retailers. possessions to pay the debts of the business.
⎯ Wholesalers are also known as • Unlimited – a business owner can be
“middlemen”, go-betweens, legally forces to use personal money and
distributors, or intermediaries possessions to pay the debts of the
because they provide a link business.
between manufacturers and • Limited – a business owner cannot be
retailers – who sells goods to legally forces to use personal money and
consumers. possession to pay business debt.
⎯ Wholesalers do not generally sell
directly to the public. • Business owners with limited liability
only risk the money specifically
3. Retailing invested in the business.
• The level of liability for a business
⎯ Buys goods, often from owner depends on the type of
wholesalers, and resells them ownership structure used by the
directly to consumers – the end business.
buyers.
⎯ Retailing businesses are stores, Types of Business Ownership
shops, and boutiques.
⎯ Retailing businesses include 1. Traditional
traditional stores that people visit ⎯ It is a set-up where customers will
in person and online stores that have to visit the store physically to
sell from the internet. buy the products.
⎯ You can connect with local
4. Service audience.
⎯ Provides services to customers for ⎯ Established credibility
a fee. ⎯ Promotional materials are
⎯ Service businesses provide a sustainable.
wide variety of professional, ⎯ National consumers are hard to
technical, and everyday services reach.
that people need and want.
⎯ Most states and some local 2. Sole Proprietorship
governments have licensing
requirements for people who a. Advantages
provide particular services. ⎯ Simplest and least expensive
option for business
5. Special Type ownership.
⎯ Farming is a special type of ⎯ Business income and costs
business. are reported on the owner’s
⎯ Mining often referred to as an personal income tax return.
“extraction business” ⎯ Less paperwork and easier
⎯ Trade business – a business that tax accounting.
is either a wholesale or retail ⎯ Sole decision maker with
business. complete control over the
management of the business.
 b. Disadvantages b. Limited partnership
⎯ That person has to carry a ⎯ Structured in a way that at
heavy workload – raising the least one partner (the
financial backing to set up, general partner) has limited
operate, and expand the liability for the debts of the
business. business.
⎯ The sole proprietor has ⎯ The other partner has no say
unlimited liability for any in the company’s day-to-day
business debts. operation but are only
⎯ Difficult to borrow money or investors.
attract money.
c. Disadvantage of Partnership
c. How to set-up a sole proprietor ⎯ Profit is split between the
business partners.
⎯ Naming the Business and ⎯ Each partner is responsible
applying for T.I.N. number. for the business-related
actions of all the others.
3. Partnership – type of business ⎯ Partners may have trouble
organization in which at least two agreeing on how the
individuals share the management, business should be
profit, and liability. operated.
a. General partnership – all partners
d. Partnership Agreement - is a legal
have unlimited partnership. They
document that clearly defines how
are personally responsible for
the work, responsibilities, rewards,
business debt and usually take an
and liabilities of a partnership will
active role in the business.
be shared by the partners.
▪ Advantages
- It is much like sole 4. Corporations - the business itself is
proprietorship as considered a type of “person” (often
far as establishment referred to as an “entity”) under the law,
and taxes are and limited liability is granted to the
concerned. business owner(s).
- It can rely on the
a. Owners of the Corporation
entrepreneurial
▪ Shareholders or
skills and financial
stockholders.
backing of at least
▪ A share of stock is a unit of
two individuals
ownership in a corporation.
instead of just one.
▪ C corporations are taxed as
- It can attract and
an entity by the federal
motivate
government.
employees with the
incentive of
b. Advantages of Corporations
becoming partners
▪ Share holders have a limited
in the business at
liability.
some point in the
▪ They risk only the ,money
future.
they invested in the
corporation.
▪ Disadvantages
▪ Shareholders can end their
- The higher risk of
ownership by selling their
losing personal
shares to someone else.
money and
possessions to pay
business debt.
 ▪ The life span of a corporation Business Ethics
is not tied on the life span of
its owners. ⎯ It is the moral principles applied to
business issues and actions.
c. Disadvantages of Corporations ⎯ It’s the right thing to do. It’s what you
▪ They are more difficult and should do. It’s what anyone would do.
expensive to set up and Why should we practice business ethics?
maintain rather than other
business structures. • Customers are more confident when
▪ Regulated under state laws, buying goods and services from an
so to incorporate means to ethical company.
set up a corporation in • An ethical workplace motivates
accordance with the laws of employees.
the particular state where the • Ethical behavior also prevents legal
business is located. problems.
▪ Corporations must follow
How to establish an ethical workplace?
every specific procedure for
keeping records and selling • Creating transparency.
shares. • Responding to whistle-blowers.
• Writing a Code of Ethics.
Non-profit Corporation – type of business
that operate not to provide profit but to serve
the good of society and to further its mission.

Cooperative - a business owned, controlled,

and operated for the mutual benefit of its
members – people who use its services, but its
goods, or are employed by it.

ETHICAL, LEGAL, AND SOCIAL RESPONSIBILITY

ETHICAL BUSINESS BEHAVIOR

Ethics

⎯ It is a set of moral principles that govern

decisions and actions.
⎯ To ac ethically is to act in ways that are in
keeping with certain values.

Universal Values INTELLECTUAL PROPERTY RIGHTS

⎯ It is the values shared by all cultures Ethical issues for entrepreneurs

throughout history.
• Intellectual Property
⎯ They are recognized because they
promote the conditions needed for ⎯ It is artistic and industrial
individuals to survive, enjoy life, and get creations of the mind.
“Possession” of these creations is
along with others.
protected by law.
⎯ The owners are entitled to credit
and usually some form of payment
when their works are used,
especially when used for
commercial gain.
⎯ Copyright, patent, and
trademark.
 indicates greater competition as
Copyright the total consumers fall.
⎯ Artistic creation.
⎯ Exclusive right to perform, display,
copy, or distribute an artistic work.
2. Changes in Social Preferences
⎯ Copyright applies automatically as ⎯ Social preferences relating to
soon as work is created. fashion or fad are continuously
Patent changing.
⎯ Industrial invention.
⎯ If a business refuses to adapt to
⎯ Exclusive right to make, use, or sell a
device or process. changing social preferences, its
a. Utility Patent sales will decline, and business
b. Design patent will fall.
Trademark
⎯ It is a symbol that indicates that the
use of a brand or brand name is Social and Ethical Impact of Business to
legally protected and cannot be used
Society
by other businesses.

1. Economic Impact
⎯ Infringement – violating a
a. Wages and salaries paid to
copyright, trademark, or patent
employees improve their
holder’s rights.
standard of living.
b. Timely payment for the supplies of
A doctrine called fair use
goods purchased on credit from
provides for the limited quotation
the suppliers.
of a copyrighted work without
c. The value of goods and services
permission from or payment to the
sold to customers.
copyright holder avoid
infringement.
2. Governance
⎯ If businesses offer bribes in
If the copyright or patent has
exchange of work and other
expired, it becomes a public
benefits, the ethics of society
domain.
suffer.
⎯ Corruption may raise the price of
• Conflict of Interest – This exists when
goods and services when
personal considerations and professional
companies engage in price fixing.
obligations interfere with each other.
Corporate Responsibility to Consumer
• Confidentiality
⎯ Using information in an ethical • It is based on the concept that the
manner. relationship between business and
⎯ It can also create conflict of society ought to go deeper than
interest. economics.
⎯ Confidentiality or non-disclosure • Responsibility to individuals (customers,
agreement. employees).
• Responsibility to the environment
CORPORATE SOCIAL RESPONSIBILITIES
(energy-efficient workplace).
Social Factors Affecting Business • Responsibility to the community.

Product Quality
1. Population Growth
⎯ The supply and demand of goods • A consumer has the right to expect
and services in an economy can uniform product quality. They have the
change with the structure of right to expect that what they have seen
business. in their advertisement will be the same
⎯ Decline of birth rates mean when they purchased it.
demand will decrease. It also • Firms that give more attention in
monitoring the quality of their products
 are more successful than those who are
not responsible enough to do it.
Product Packaging

• Packaging can increase customer

satisfaction, increase visibility and set
one product apart from its competition.
• It can protect the product from time it is
manufactured until it is sold.
• It can inform the consumer about the
quantity and quality of the contents and
can enhance the appearance of the
product to increase sales.
Product Labeling

• It helps to promote and sell customer’s

products.
• They provide clear information for
consumer’s use of every product.
• It guarantees consumer satisfaction if the
product is used properly.
• Misrepresentations about a product or
services are illegal.

Consumer Safety/Product Responsibility

• Every company has the responsibility to

safeguard consumers from undue
hazards in the storage and use of the
product.
• It is the responsibility of the company to
warn the consumers against product
misuse.
• Careful attention to ingredients
responsibility, human health and
environmental impact, without
compromising performance must be
given priority.

Environment Sensitivity

• Consumers want and expect the products

they buy to be safe, accurately labeled,
and conveniently packed.
• They expect business to demonstrate
their respect for their environment
through their product and business
methods.
• They would like the company to produce
products that are biodegradable or
recyclable and to reduce the
environmental impact of their businesses
operations to reduce pollution and waste.