MODULE

7
ENTREPRENEURSHIP

Learning Objective: At the end of the lesson, the students should be able to:
1. discuss the environment of the Philippines for
entrepreneurship;
2. explain entrepreneurship and identify who the
entrepreneurs are;
3. explain the contributions of entrepreneurship; and
4. discuss the impact of entrepreneurship in the society

Methodology : Lecture-discussion

Requirements : Attendance 40%

Survey activity 60%

100%

Content : The Philippine environment for entrepreneurship

Entrepreneurship and the entrepreneurs
Social and economic impact of entrepreneurship
Entrepreneurial competencies

Time Allotment : 3 hours

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.

Integrating Activity:
The class will be divided into groups (according to collage making activity
grouping). Each group will interview an entrepreneur and answer the survey
questionnaire below.
Dear Mr./Ms. Entrepreneur,
Our students in NSTP 1 subject (National Service Training Program) are currently
conducting a survey questionnaire for a village level enterprise. One of the learning
objectives of the subject is for the students to get first-hand information from actual
entrepreneurs hence this survey. We hope that you will help our students learn from your
experience and expertise.
Thank you very much.
Sincerely yours,

______________________________
Signature over printed name of the
NSTP Facilitator

SURVEY QUESTIONNAIRE FOR VILLAGE LEVEL ENTERPRISE

Demographic Profile of the Entrepreneur

Name of the owner: __________________________________________
Address: ______________________________________________________
______________________________________________________
Gender: Male Female Age: _______________
Civil Status: Single Married
Educational Attainment:
Elementary undergraduate Elementary graduate
High school undergraduate High school graduate
College undergraduate College graduate
Vocational/Technical course: ____________________________
Graduate Studies: _____________________________________
Name of the Business: ______________________________________________
Number of years in the Business: _____________________________________
Nature of Business:
Food business: ____________________________________________
RTW (ready to wear) apparel and body accessories sale
Foot wear sale Cosmetology/Barbershop
Automobile E-Load station (Hair styling and salon)
Flower shop General merchandising
Computer/Internet shop Photocopy center
Veterinary supplies Rental business
Pawnshop (chairs, tables, gowns, vehicle, etc.)
Poultry/Piggery/Livestock Photo studio
Funeral services Auto mechanics
Electronics repair shop Tailoring
 Water refilling station Construction supplies
Others (please specify): ____________________________________

Type of Ownership:
Sole ownership Partnership
Inherited from parents/relatives
Others (please specify): ____________________________________

Economic Profile

Initial Capital:
Below P5, 000.oo P 5,001.00 – P 10,000.00
P 10,001.00 – P 15,000.00 P 15,001.00 – P 20,000.00
P 20,001.000 – P 25,000.00 P 25,001.00 – P 30,000.00
P 30,001.00 – P 35,000.00 P 35,001.00 – P 40,000.00
P 40,001.00 – P 45,000.00 P 45,001.00 – P 50,000.00
Above P 50,000.00 (please specify): __________________________

Sources of Capital:
Personal
Loan
Borrowed money from relatives/friends
Inherited from parents/relatives
Others (please specify): ____________________________________

Daily average income:

Below P5,000.00 P 5,001.00 – P 10,000.00
P 10,001.00 – P 15,000.00 P 15,001.00 – P 20,000.00
P 20,001.000 – P 25,000.00 P 25,001.00 – P 30,000.00
P 30,001.00 – P 35,000.00 P 35,001.00 – P 40,000.00
P 40,001.00 – P 45,000.00 P 45,001.00 – P 50,000.00
Above P 50,000.00 (please specify): __________________________

Daily average operating expenses

Overhead expenses (e.g. salaries and wages of your employee/s)
Specify: _____________________________________________

_____________________________________________
_____________________________________________
Water bill: ___________________________________
Electric bill: __________________________________
Rental/lease of space: _______________________________
Revenues: _______________________________________________
Promotion and marketing expenses: ___________________________
Others (please specify): ____________________________________
____________________________________
 ____________________________________

Problems encountered:
Major Problems encountered Solutions made

Minor Problems encountered Solutions made

Conforme:

_______________________________________
Signature over printed name of the entrepreneur