Entrepreneurial Mindset

a way of thinking that enables you to overcome challenges, be decisive and accept

responsibility for your outcomes. It is a constant need to improve your skills learned from your

mistakes and take continuous action on your ideas.

Characteristics of successful entrepreneurs

 Industrious

 Innovative

 Honest

 Persistent

 Caring

 Helpful

 Faith and Goodness

 Confident

Honest

Entrepreneurs must be honest with themselves about everything that is happening in their

company.
Industrious

is characterized by persistence and hardiness, the ability and DESIRE to overcome obstacles.

Innovative

Being able to come up with new and original products, strategies and methods in order to
adapt to any challenges, increase efficiency, and reduce risks.

Persistent

he ability of an entrepreneur to remain steadfast, focused and solution-oriented in spite of

what could become roadblocks makes their business more likely to succeed.

Caring

Caring allows an individual to connect with others, respecting human dignity and responding
with compassion

Helpful

Allows successful individuals to make a mark on the world through their kindness and over-
delivering service.

Faith and Goodness

Faith-Is a great trust in something or someone that leads a person to keep on doing what he
thinks is right.The goodness-The quality or state of being good, moral, and virtuous.

Confident

Allows us to challenge norms and step into the unknown without fear. It gives us a feeling of
certainty and the ability to take action

Killers of Entrepreneurial Mindset

 Comfort Zone
 Discouragement
 Rejection
 Fear
 Anxiety
  Laziness
 Low Self-Esteem
 Doubts

Comfort Zone

BEING A SUCCESSFUL ENTREPRENEUR MEANS YOU NEED

TO TAKE RISKS. IF YOU NEVER STEP OUTSIDE OF YOUR COMFORT
ZONE, YOU’LL NEVER REACH YOUR FULL POTENTIAL

Discouragement

LOSING CONFIDENCE IN SOMETHING DUE TO CERTAIN

CIRCUMSTANCES THAT MAKE YOU DISAPPOINTED.

Rejection

A SOMEWHAT UNPLANNED EVENT THAT MAKES

INDIVIDUALS FEEL EXCLUDED OR DEFEATED.

THE FEAR

MINDSET IS THE KISS OF DEATH FOR ENTREPRENEURS

Anxiety

FEELING AN EXTREME ANXIOUSNESS, IMPATIENCE ,OR

OUTRIGHT FEAR, ANXIETY CAN BE EXPERIENCED BY ANY
ENTREPRENEUR WHEN MAKING IMPORTANT DECISIONS OR UPON
FORESEEING A POTENTIAL PROBLEM THAT MAY GREATLY AFFECT
HIS/HER BUSINESS.

Laziness

LAZINESS ENTREPRENEUR CAN BE A LEGITIMATE APPROACH TO

ACHIEVING SUCCSSS AND AVOID A HEAVY HEALTH TOLL

Low Self-Esteem

MEANS NOT HOLDING YOURSELF IN HIGH REGARD.

Doubts

FEELING UNPREPARED, PERHAPS NOT HAVING THE EXPERIENCE

OR UNDERSTANDING TO HANDLE A PROBLEM.

THE NATURE OF SMALL BUSINESS

Business size is one factor that does not prevent one from engaging in
entrepreneurship.

SMALL BUSINESS

Small business may be defined by using any of the two approaches:

 market share or total assets.

TWO APPROACHES

 MARKET SHARE

Small business may be defined as one which is independently owned and operated

and which is not dominant in its field of operation

 TOTAL ASSETS

Small business may be defined under the total assets approach as one having total

assets that fall within a certain bracket.

•Magna Carta for Small Enterprises (R.A. 6977)

TYPES OF SMALL BUSINESS

Small business may be classified into five types:

(1) manufacturing

(2) service
 (3)wholesaling

(4) retailing

(5) general construction firms,

SMALL MANUFACTURING BUSINESS

A manufacturing business is one involved in the conversion of raw materials

into products needed by society.

SMALL SERVICE BUSINESS

Service businesses are those that provide service in one way or another

RETAILING

Retailing covers all activities involved in the sale of goods and/or services to

the final consumers. The bulk of retailing activities are performed by small businesses.

Wholesailing

Wholesaling refers to the activities of persons or establishments which sell to

retailers and other merchants

GENERAL CONSTRUCTION FIRMS

. General construction firms are those engaged in the construction of buildings

whether for private individuals or firms, or for the government.

CHARACTERISTICS OF SMALL BUSINESS

Small businesses have their own distinctive characteristics.

 INDEPENDENT MANAGEMENT - THE OWNER IS ALSO THE MANAGER.
 SMALL CAPITAL REQUIREMENT – SMALL BUSINESS REQUIRES ONLY SMALL CAPITAL AND
THIS CAN BE SUPPLIED BY A SINGLE OR A FEW INDIVIDUALS.
 MOSTLY LOCAL OPERATION – SMALL BUSINESS USUALLY OPERATES IN A CERTAIN
LOCALITY ALTHOUGH THERE ARE CASES WHEN THE MARKET IS NOT CONFINED TO A
LOCAL AREA.

ECONOMIC IMPORTANCE OF SMALL BUSINESS

 PROVIDERS OF ECONOMIC OPPORTUNITIES FOR ENTREPRENEURS - PEOPLE WHO DO
NOT FEEL COMFORTABLE AS EMPLOYEES HAVE THE OPTION OF ENGAGING IN SMALL
BUSINESS OPERATION.
 PROVIDERS OF PRODUCTS AND SERVICES TO CONSUMERS - THE PRODUCTION OF MANY
PRODUCTS AND SERVICES IS OFTENTIMES NOT FEASIBLE WITH BIG AND MEDIUM
BUSINESS OPERATION. THESE LIMITED OPPORTUNITIES ARE NATURALLY FITTED FOR
SMALLBUSINESSES.
 SUPPLIERS OF PRODUCTS AND SERVICES TO OTHER BUSINESSES - SOME BUSINESSES
REQUIRE RAW MATERIALS, SEMI-FINISHED PARTS, FINISHED COMPONENTS, OR EVEN
LABOR, WHICH THEY CANNOT ECONOMICALLY PRODUCE. THE SMALL BUSINESSES PER
FORM THIS TASK FOR THEM.
 DISTRIBUTORS OF PRODUCTS AND SERVICES OF OTHER BUSINESSES – SOME
MANUFACTURERS DO NOT HAVE THE ABILITY TO DISTRIBUTE THEIR PRODUCTS AND
SERVICES. MANY SMALL BUSINESSES ASSUME THIS ROLE FOR THEM,
 SUPPORTERS OF GOVERNMENT - SMALL BUSINESSES SUPPORT THE GOVERNMENT
WITH THE TAXES THEY PAY, AS WELL AS PERFORMING OTHER FUNCTIONS.
 PROVIDERS OF EMPLOYMENT - A LARGE PROPORTION OF THE LABOR FORCE ARE
EMPLOYED BY SMALL BUSINESSES,
  THE OPPORTUNITY TO GAIN CONTROL OVER HIS OWN DESTINY

The prospective small business owner can choose from several business

opportunities that he would like to take advantage of. If, after a few years, he thinks that the

business is not worth operating any more, then he can dissolve it and open a new one. This

option is not made available to plain employees and professionals.

 THE OPPORTUNITY TO REACH FULL POTENTIAL

The employee will do his work based on prescribed targets which may only require

less than his full potential. This is not so with the small business operator. His freedom to act is

limited only by his potential and he can revise or amend his targets within short notice.

 THE OPPORTUNITY TO REACH FULL POTENTIAL

The employee will do his work based on prescribed targets which may only require

less than his full potential. This is not so with the small business operator. His freedom to act is

limited only by his potential and he can revise or amend his targets within short notice.

 THE OPPORTUNITY TO MAKE A CONTRIBUTION TO SOCIETY AND RECEIVE

RECOGNITION FOR HIS EFFORTS

Entrepreneurs who make innovative products available to the public are recognized

properly by society.
DISADVANTAGES OF OPERATING A SMALL BUSINESS

 uncertainty of income

 risk of losing your entire capital investment

 lower quality of life until the business gets established

 complete responsibility

 having to serve undesirable customer

 paperwork and other chores

 long hours and demanding work condition

THE ETHICAL AND SOCIAL RESPONSIBILITIES OF THE ENTREPRENEUR

What is Business Ethics?

Ethics is the study of moral obligation involving the distinction between right and

wrong.The rules about how entrepreneurs ought to behave are referred to as BUSINESS

ETHICS.

The ethical behavior required of entrepreneurs are determined by the following:

 the public
  interest groups like the Society of Prevention of Cruelty to Animals

 business organization

 individual's personal morals and values

FACTORS INFLUENCING ETHICAL BEHAVIOR

 the situation

 Circumstances vary and the reactions of firms or individuals also vary

 reward system

 Expectation of high rewards for commiting unethical behavior motivates a person to do

it

 individual differences

 eople are different from one another and that includes differences in reacting to specific

situations.

 other factors

When a person is in competition with others, and he wants to be sure of winning, he is more

inclined to adapt unethical behavior.

How Ethical Behavior is Encouraged

  adaptation of a code of ethics

 institution of rewards and punishments concerning ethical behavior

 adaptation of internal programs for resolving conflicts

 adaptation of internal programs for resolving conflicts

 provision of training in ethics for employees

Code of Ethics

The code of ethics is a formal document indicating the entrepreneurship's adapted principles of

appropriate behavior. It serves as a basic reference for employees who make big or small

decisions. A code of ethics can be made effective if the following requirements are met:

 It should refer to specific unethical practices like receiving gifts, avoiding warranty

claims, bid-rigging, making fictitious claims, among others;

 . It must be supported by top management.

Rewards, Punishment, and Ethical Behavior

For many people, the code of ethics may not be enough to motivate them to act ethically. If the

entrepreneurship wants to have some measure of control over the behavior of its personnel, a

system of reward and punishment must be instituted.

Internal Programs for Resolving Conflicts

Conflicts arise, even when ethical conduct of personnel is concerned. Internal programs for

resolving conflicts may include an instance where a subordinate may appeal a superior's

decision without exposing him to the concerned superior.

Rewards - cash gifts, promotion, or citation

Ethics Review Committee

To encourage ethical behavior, the entrepreneurship may create an ethics review commitee.

The committee is usually composed of company employees as well as some who are not

employed by the company who have undergone special training in ethics.

It gives advice to the entrepreneur and his staff concerning sensitive ethical issues.

Provision of Training in Ethics

Company personnel who are exposed to activities that are ethically charged must be provided

with sufficient training in ethics.Ethics training is more appropriate for persons occupying

sensitive positions in purchasing, waste disposal, personnel, research and development, sales,
and manufacturing who have undergone special training in ethics. It gives advice to the

entrepreneur and his staff concerning sensitive ethical issues.

ETHICAL ISSUES FACING ENTREPRENEURSHIP

THE COMPANY AND THE CUSTOMERS

Customer relations are the ways a company took to interact by its customers and enhance the
customer experiences. Especially, this is responsibly developing long-term solutions that are
focused on the success of the customer while also addressing immediate problems.

BETWEEN THE COMPANY AND ITS PERSONNEL AND EMPLOYEES

Employees are all the people that are working under a company.Personnel are all the people
working for a company. This make a big difference.

BETWEEN THE COMPANY AND THE BUSINESS ASSOCIATE

A business associate is a person or organization that works for or offers services to a covered
entity and performs out specific tasks or activities that require the use or of protected health
information. Employees of the covered entity are not considered business associates.

BETWEEN THE COMPANY AND THE INVESTORS AND THE FINANCIAL COMMUNITY
is a strategic responsibility whereby organizations manage communications between their
executive leadership and the financial community

ETHICAL ISSUES FACING ENTREPRENEURSHIP

Relations with Customers

Entrepreneurs are expected by society to treat their customers fairly and not to act in ways that

will be harmful to them. Entrepreneurs should provide support for consumer rights which are

as follows:

 the right to be safe;

 the right to be informed;

 the right to choose; and

 the right to be heard

Relations with Customers

the right to be safe

Consumers expect that the products and services they buy will do them no harm. They also

expect to be free from bodily harm when they are inside the entrepreneur's business premises.
the right to be informed

The quality of consumers' purchasing decisions will depend on whether or not they are properly

informed.

the right to choose

Firms that intend to adhere to business ethics should strive to protect consumers' right to

choose, what products and services they need and intend to purchase.

the right to be heard

Customers have the right to communicate their concerns to entrepreneurships they patronize.

This right may be used to express appreciation about what the company is doing, or to provide

information about defects in the products the customer bought.

Relations with Personnel and Employees

There is always the possibility that business firms, including entreprenuerships, will commit

unethical acts towards their employees. Since entreprenuers and their staff make decisions on

various business activities like hiring, promotion, trasnfer, compensation, and dismissal. An

example is the ethical question faced by a manager in deciding wheather or not to give hiring

preference to a relative of his superior.

Good ethical conduct requires entrepenuers to be aware of their responsibilities to employees.

These are the following:

 Workplace safety

 Quality of life issues

 Avoiding discrimination

 Preventing sexual harresement

 Relations with Personnel and Employees

 Workplace safety

 Quality of life issues

 Avoiding Discrimination

 Preventing sexual Harrasment

Relations with Business Associates

Entrepreneurships operate in conjunction with the efforts of:

 suppliers
  agents

 various types of middlemen

In the course of business transactions between the players mentioned and the firms, some

ethical questions may come into fore.Bribery and prioritizing delivery orders for a favored

company or trader are examples of unethical practices that must not be allowed to happen in a

company that upholds good ethical conduct.

Relations with Investors and the Financial Community

The degree of trust is maintained at a high level if investors and the financial community feel

that business firms practice good business ethics, especially if they think that their investments

are well protected. If that is so, the desired level of investment is maintained.However, trust

and confidence are eroded by wrongdoings. Investment scams, misrepresentation of the

company's financial health, land swindles, embezzlement, and misleading reports about non-

existent assets are some unethical and illegal practices that undermine our country's financial

stability.

ENTREPRENEUR’S PERSONALITY

Every person has a personality that is unique and different from others. Each personality type
has a corresponding type of job that fits it.
PERSONALITY

• refers to the pattern of characteristics it concludes the person trait, values, motives,
genetic blue prints, attitudes, emotional reactivity, abilities l, self image, intelligence,
and behavior patterns.

CHARACTERISTICS OF ENTREPRENEURS

DRIVE

• it is the tension that occurs when a need is not met; it means that if an entrepreneur
fails in the first attempt, he/she makes another attempt and repeats those attempts
until he/she succeeds.

Thinking Ability

• involves solving problems and making decisions; meaning, an entrepreneur finds the
correct solutions to the problems that confront him/her and then makes decisions to
become closer to realizing his/her goals

Human Relations Ability

 • determining the survival and growth of business firms which includes 3 types of persons:
(1) the customer, (2) the employee, and (3) the third party with interest in the firm.

Ability to Communicate

• it is the ability to understand and be understood to make it easier for entrepreneurs in

transacting business with customers, bankers, and government officials

Technical Knowledge

• – devising a strategy on how an entrepreneur will manage his/her firm to effectively

compete with others which requires performing major and minor tasks.

Reasonable Risk Taker

• - when a person starts a new venture, he has already begun to assume the risk of
business failure. Entrepreneurs, however, normally do not assume unreasonable risks.

Self-Confident

• A person cannot achieve much unless he has sufficient confidence in himself. In any
undertaking, including entrepreneurship, a person's belief in his ability leads him to
actual performance and eventual success

Goal Setter

• Goals are very useful motivational tools, especially those related to accomplishing the
objectives of entrepreneurs

Accountable

• the success of an enterprise will depend much on the willingness of subordinates to

comply with the wishes of the entrepreneur.

Innovative

• a free enterprise economy like ours allows business enterprises to flourish.

What motivates people to become entrepreneur

• Desire to be one's own boss

• Desire for financial rewards

• Desire to create one's own job security

 • Desire to improve one's quality life

Entrepreneur and Manager Distinguished

Also called trustee Emphasizes the efficient utilization of resources

Also called promoter Feels confident of his ability to seize a business opportunity regardless
of his resources under his control