Entrepreneurship

ENTREPRENEURSHIP
The Philippine environment for entrepreneurship

 Basic facts based on 2008 statistics
o Philippine population = 90.4 M as projected by NSO (last 2007 88.7
M)
o Unemployment rate = 7.8 % ( July 2008)
o Underemployment rate = 18.9 % ( January 2008)
o Over 36.7 % are below the poverty level
o Investment climate is vacillating
 Philippine entrepreneurial rate =

Micro E = 91.1%
MSME = 99.6% Small E = 8.1%
RP Enterprise Medium E = 0.4%
Large E = 0.4%
What is entrepreneurship?
Entrepreneurship is both an art and a science of converting ideas into highly

marketable goods and services that will improve man’s quality of life. It involves the
proper utilization of four essentials such as materials, machine, money and man (4Ms)
Entrepreneurship has essential or extra ordinary features such as the creation
of something new or something different. In short, it is innovation which distinguishes
entrepreneurship from other activities.
The key concept of entrepreneurship is innovation. Any worthy activity which
is new, different or better implies innovation. It implies to product, services or
methods.
Contributions of entrepreneurship
Entrepreneurship brings not only to the entrepreneurs but also to the country as a
whole.
1. Provide self-employment
2. Create employment for others
3. Develops industries especially in the rural areas
4. Encourages the processing of local materials into finished or semi-finished
goods
5. Generate additional income for the family
6. Encourages healthy competition which may assure highest quality products
7. Makes more goods and services available to the consumers
8. Promotes the use of modern technology in small scale manufacturing to
enhanced productivity
9. Develops possible market
10. Encourages more research/studies and inventions of machines and equipment
for domestic consumption
11. Develops entrepreneurial qualities and positive attitudes among potential
entrepreneurs to bring about significant changes in the rural areas
Who are the entrepreneurs?
Entrepreneur is an innovator who…

… does new things and does things in a new way
…supplies new product
…makes new techniques in production
…discovers new market
…develop new sources of raw materials
Entrepreneurs are those who launched their own business from scratch, they
develop scarce resources into successful business by their instinct, sense of timing and
hard work and ides producing activity.
The entrepreneurs or the-would-be entrepreneurs are extraordinary people by

virtue of their chosen career. They possess qualities that distinguish them from the
ordinary business.
Characteristics of an entrepreneur
There are 10 characteristics identified and defined by Mc Bear and Co. (1986)
of a successful entrepreneur:
1. Opportunity seeker
a. explores and acts on new business opportunities
b. takes usual opportunities to obtain capital, facilities, equipment,
machineries and government assistance
2. Persistent
a. formulates different alternatives to overcome possible problems that
may come along the way
b. makes personal sacrifices to see a job completed according to specified
standards
3. Committed to a work contract

a. assumes full responsibility for job orders of customers
b. helps workers or acts as a substitute for absent workers (if there is
need) to get a job done
c. conveys a concern for pleasing customers
4. Risk takers
a. makes an effort to evaluate advantages of a business in which he/she
would opt for a modern risk
b. Open to untoward experience and considers constraints as challenges
5. Competent and Hard worker
a. aspires and works towards quality performance
b. does things that assures work that meets or exceeds standards of
excellence
6. Goal setter
a. formulates specific, measurable, attainable, reliable and time-bounded
objectives
b. formulates long term goals
7. Information Seeker
a. solicits information about clients, competitors, suppliers.
b. Confers with experts about business or technical advice
c. Established linkages to obtain important information
8. Systematic Planner and Overseers

a. evolves and implements step by step plans to reach goals
b. assesses options
c. observes performance and adapts alternative strategies
9. Persuasive/Salesman
a. implements planned strategies to persuade or convinced others
b. sells ideas to other people
c. uses business contacts to attain goals
10. Self-confident
a. possesses strong belief in self and in what he/she accomplishes
b. has confidence in meeting problems and challenges especially those
that are related to the business
Personal Entrepreneurial Competencies
As a result of continuous study of entrepreneurial character traits, several

qualities were evolved by the Management System International, a consulting firm
based in Washington. These are collectively called personal entrepreneurial
competencies or PECS. They are referred to as competencies because these qualities
are translated into actions – demonstrated and exhibited – by an individual in order to
make things happen rather than remain as passive traits or mere mental pre-
occupation.
These competencies are clustered into the following:

1. Achievement cluster
a. Opportunity seeking
b. Persistence
c. Commitment to work contact
d. Risk taking
e. Demand for efficiency and quality
2. Planning cluster
a. Goal setting
b. Information seeking
c. Systematic planning and monitoring
3. Power cluster
a. Persuasion and networking
b. Self-confidence
Social and Economic Impact of Entrepreneurship
People have many physical needs. Basically, they need food, clothing, shelter,
air and water. In addition, they also need other things like transportation, bags, shoes,
soap, salt and sugar, medicine and many others.
People living in the community are dependent on each other for the products
and service each of them needs every day. This is so because as the community
grows, individual roles become more distinct and specialized. It is difficult for
everyone to provide for everything he needs.
A need for a product or service is an economic opportunity. When people need
something they are willing to pay someone who is able to provide it to them. The
ability of individuals to perceive the kind of products or services that others need and
to deliver these at the right time, to the right place, to the right people and at the right
price, is what is generally referred to as entrepreneurship. When entrepreneurship is a
practice of many members of a community or society, that society develops very
rapidly.
The following benefits that result from entrepreneurship explain why

development takes place when a society becomes entrepreneurial.
1. Entrepreneurship creates employment

When entrepreneurs put up a business, they oftentimes need to hire or
employ at least one or two to hundreds of other people in order to get
something done.
When entrepreneurial activities slow down, the country’s
unemployment rate goes up. Every society wants all qualified members of its
work force to be gainfully employed.
2. Entrepreneurship improves the quality of life

Entrepreneurial undertakings contribute significantly to the continuous
improvement of living standards. The development of new products and the
delivery of needed services make life easier and comfortable for society in
general.
3. Entrepreneurship contributes to more equitable distribution of income

and therefore eases social unrest.
Entrepreneurs continuously search, identify and/or develop raw
materials needed for the production of goods and services. To them, nothing or
almost nothing is useless. They are, therefore, the ones who often see the
economic potentials of raw materials and other resources in the rural areas. By
putting up an enterprise in the locality, entrepreneurs are actually dispersing
the benefits of development to other parts of the country. When many
segments of the society are deprived, social tensions may arise.
Income that is evenly distributed means less poor people. The
eradication of poverty will help solve social problems like crime, juvenile
delinquency and malnutrition.
4. Entrepreneurship utilizes and mobilizes resources to make the country

productive
Our country will develop faster economically if none of its resources
were idle or unused. For example, we have plenty of iron ore that can be
processes to supply the needs of industries that manufacture spare parts for
cars and machines. Putting up a metal factory to process iron ore does not only
utilize the raw materials and feed other local industries. It also save much for
the country in terms of dollars and time same local industries need no longer
be dependent on its iron-ore imports all the time.
Entrepreneurship also provides a way to make productive use of capital
resources such as family or personal savings. Otherwise, these may remain
utilized or channeled to unproductive ventures (gambling) or luxury spending.
5. Entrepreneurship brings social benefits through the government.

With the revenues the government collects from taxes, duties and
licenses by the entrepreneurs (not to mention income tax the entrepreneurs’
workers pay) the government allocates the disbursement of these revenues to
different services and projects for communities.

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ENTREPRENEURSHIP

The Philippine environment for entrepreneurship

 Philippine entrepreneurial rate =

Entrepreneurship is both an art and a science of converting ideas into highly

Who are the entrepreneurs?

Entrepreneur is an innovator who…

The entrepreneurs or the-would-be entrepreneurs are extraordinary people by

3. Committed to a work contract

8. Systematic Planner and Overseers

Personal Entrepreneurial Competencies

As a result of continuous study of entrepreneurial character traits, several

These competencies are clustered into the following:

Social and Economic Impact of Entrepreneurship

The following benefits that result from entrepreneurship explain why

1. Entrepreneurship creates employment

2. Entrepreneurship improves the quality of life

3. Entrepreneurship contributes to more equitable distribution of income

4. Entrepreneurship utilizes and mobilizes resources to make the country

5. Entrepreneurship brings social benefits through the government.

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