UNDERSTANDING ENTREPRENEURSHIP

NTREPRENEURSHIP is the opportunity, or simply a better way to do life.

process of identifying, developing The end result of this process is the creation of
and bringing a vision to life. The new venture, formed under conditions of risks
vision may be an innovative idea, an and considerable uncertainty.

WHAT ENTREPRENEUR WAS

What has come to be called entrepreneurship takes roots from prehistoric times when
people traded goods and services in what was known as barter. Each individual
exchanging something for value was considered an entrepreneur.

Here in the country, the early Filipinos engaged in barter with the Arabs before doing business with
the Chinese, who soon dominated trade in the Phil. When the barter could no longer satisfy the trading
parties, that is, when transactions failed to meet their needs and wants, a unit of monetary exchange
was employed. The development of money contributed to the promotion of trade.

WHAT ENTREPRENEUR IS

Entrepreneurship is a creative initiative of setting up business to meet the needs of consumers in the
hope of getting a profit from it. This creative initiative may be in the form of a product or a
modification to an existing product, or an innovation in the business process.

How does one begin an entrepreneurial career? It starts with identifying a need and the opportunity
that goes with the satisfaction of that need. A young entrepreneur can comb his or her area to look
for market trends or a fresh field to conquer. He or she can even take his or her special interest or
hobby to the test and start drumming up a good business. For example, baking is a worthwhile hobby
which one can capitalize on in putting up a bakeshop as a business venture.

 ADVANTAGES AND DISADVANTAGES OF ENTREPRENEURSHIP

INDEPENDENCE- Entrepreneurship allows entrepreneurs to assume a managerial role in their own

venture, hence they become their boss.

FLEXIBILITY- Entrepreneurship offers young entrepreneurs the chance to work on their own pace
and space, make their own schedule, control their hours, and set up their own workplace.

CHALLENGE- the opportunities to grow and diversity are endless. There is plenty of room to
improve oneself and one’s business skills.

DIRECT PAYOFFS- Entrepreneurs benefits directly from whatever profits the business yields.
UNLIMITED EARNINGS- income is derived in full and one can expect even more.

NO REGULAR MONTHLY SALARY- Absence of a regular paycheck.

UNPREDICTABLE SCHEDULE- Work hours run at no fixed course.

RISKY- One may hit it big, break even, or lose. If a blunder is committed, the entire investment may
be lost.

ENTREPRENEURSHIP AND THE ECONOMY

There is no one-sized – fits-all approach when it comes to putting up a business. Although there is
nothing wrong with the thinking big. It is always better to start small. That way, one can feel his or
her way into the venture before actually going the distance. This is the safest way to go especially if
the required start-up capital to get off the ground is not enough. Whether small or big, any business
venture would definitely play an important role in the growth of the economy.

1. ECONOMIC BENEFITS FROM ENTREPRENEURSHIP

Entrepreneurship increases the country’s per capita income. Two of the components of gross national
income are consumption (demand) and investment (supply). Entrepreneurship increases both
consumption and investment, thereby increasing income.

Entrepreneurship creates jobs. More business activities mean more job opportunities.

Entrepreneurship meets consumer demands. By producing products and services in their required
volume and quantity, entrepreneurship satisfies the consumer’s demands and interest.

Entrepreneurship provides social services. Entrepreneurship provides revenues to the government by

way of taxes and fees entrepreneurs pay.

Entrepreneurship links industries. One business link up with other companies, forming networks,
clusters and alliances where entrepreneurs exchange knowledge and technology to come up with
more quality goods and more efficient services.
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