Entrepreneurial Behavior and Competencies PDF

Entrepreneurial Behavior and Competencies ARNALDO D. BERNABE Introduction: ENTREPRENEURSHIP? What comes into your mind when you hear the words ENTREPRENEUR and ENTREPRENEURSHIP? You may initially refer to an ENTREPRENEUR as a business person and ENTREPRENEURSHIP as the busines...

Entrepreneurial Behavior and Competencies ARNALDO D. BERNABE Introduction: ENTREPRENEURSHIP? What comes into your mind when you hear the words ENTREPRENEUR and ENTREPRENEURSHIP? You may initially refer to an ENTREPRENEUR as a business person and ENTREPRENEURSHIP as the business. Others may specify the former to be the ordinary business person and the latter to be a small- to medium- scale business. Some may even consider that there is no difference between the two terms. So what does this lesson provide for your entrepreneurial journey as a student? 1. It outlines the operational definitions of the terms "entrepreneur" and "entrepreneurship" and makes a clear distinction between them. 2. It defines their differences in terms of concepts, beliefs, understanding, and approaches adopted by an entrepreneur and an ordinary businessperson. 3. It highlights the basic theoretical concepts, principles, approaches, and strategies used in entrepreneurship 4. It aims to build a strong entrepreneurial foundation to pique an interest among students to become successful entrepreneurs SMALL BUSINESS AND ORDINARY SMALL BUSINESS A small business is different from an ordinary small business. Small business refers to a business or enterprise that correctly adopts and practices the principles of entrepreneurship. It is owned by one person with a limited workforce of not more than 20 persons. The term also includes the small and medium enterprises (SMEs) that have been strongly promoted by both government and non-government organizations (NGOs) in their desire to improve the lives of the Filipino people through entrepreneurship. On the other hand , ordinary small business pertains to be a business enterprise managed and operated by an owner who is not an advocate of and does not practice concepts and principles of entrepreneurship.  SALIENT FEATURES OF ENTREPRENEURSHIP From its operational definition, entrepreneurship consists of five salient features. 1. It is an art of correct practices. 2. It is a wealth-creating venture.. 3. It provides valuable goods and services. 4. It entails opening and managing the self-owned enterprise. 5. It is a risk-taking venture. The Salient Features Of Entrepreneurship provide better understanding of the whole concept. They also act as the point of reference in determining whether a particular business endeavor is operating within the realm of entrepreneurship.  Entrepreneurial concepts and principles are not fixed. They constantly change and are highly influenced by the changes in the environment. The evolutionary processes happening in entrepreneurship are mainly due to the creativity and innovation born or created from business opportunities. As new ideas are created, new entrepreneurial ventures open. A wealth-creating venture is an entrepreneurial undertaking wherein wealth is created. It is a business endeavor where the resources of the enterprise have been utilized fully to maximize the investment of the entrepreneur. The venture improves the life of the entrepreneur in terms of economic, financial, social, moral, and psychological aspects. Value is basically the opposite of waste. Products and services are considered valuable when they provide additional benefits to the buyers and users. In entrepreneurship, value is always measured from the perspective of the consumers. The goods and services become valuable when the consumers get additional benefits from using the products or availing of the services. All businesses, whether big or small, are operating within the concept of risk-taking because of uncertainty. Nobody knows what will happen tomorrow. Business risks cannot be eliminated. TI1ey are inherent in the venture. Entrepreneurs, however, face the business risks instead of avoiding them. They find ways to minimize the effects of the business risks.