ENTREP PRELIMS PDF 2024-2025 Past Paper

CHAPTER 1: NATURE AND RELEVANCE OF ENTREPRENEURSHIP ENTREP 1st semester | First Long Test | School Year 2024 - 2025 WHAT IS ENTREPRENEURSHIP? ENTREPRENEURSHIP...

CHAPTER 1: NATURE AND RELEVANCE OF ENTREPRENEURSHIP ENTREP 1st semester | First Long Test | School Year 2024 - 2025 WHAT IS ENTREPRENEURSHIP? ENTREPRENEURSHIP ○ Innovation ○ Opportunity Seeking and Exploitation ○ Resource Mobilizing "Having profits from ○ Encountering Risks and Uncertainties bearing uncertainty ○ Economic and Personal Rewards and risk” — Knight, 1921 UNITED STATES ○ One of the friendliest countries for entrepreneurs in the world. It is a home "Carrying out new for thousands of successful combinations of firm entrepreneurs. organization – new CHINA products, new ○ This emerging country is home to services, new budding entrepreneurs who sources of raw manufacture different products that material, new range from toys, gadgets, electronics methods of and cars. production, new SINGAPORE markets, new forms of organization. " ○ A small country that controls a significant portion of the economy in — Schumpeter,1934 Asia. Many of their entrepreneurs innovate on existing services for local and international use CANADA "Decisions and judgements about ○ Entrepreneurs in Canada are exploring the coordination of the opportunities over the internet. scarce resources.” INDIA — Casson,1982 ○ Entrepreneurship plays a dominant role in the country’s economic landscape, with the government providing a venue, Delhi Huts, to start up entrepreneurs which promote local handicrafts ENTREP By failing to prepare, you are preparing to fail 1  CHAPTER 1: NATURE AND RELEVANCE OF ENTREPRENEURSHIP ENTREP 1st semester | First Long Test | School Year 2024 - 2025 TAIWAN EVOLUTION OF ENTREPRENEURSHIP ○ Entrepreneurship is encouraged here through the small and medium The Earliest Period An entrepreneur is a person who sells enterprise incubation centers for the goods on behalf of purpose of nurturing young firms, new the goods’ owner products and technologies. HONGKONG Enters into a formal agreement with a ○ A knowledge-based economy and capitalist, bore all known as a “shopping haven risks of possible damage and losses THAILAND ○ The extent of government support to The Middle Ages An entrepreneur is a entrepreneurs is very evident. Tourism person who merely managed the for international markets and agricultural projects using the exports are the two major sources if resources provided income generated by Thai by the government entrepreneurs. Did not assume any MALAYSIA risks at all ○ Its current emphasis is on tourism as a business venture for entrepreneurs is The 17th Century An entrepreneur is a person who would gaining popularity. enter into a formal SOUTH KOREA agreement with the government to ○ The enterprising spirit is quite obvious in provide products or such companies as Samsung and Kia services that have now become well-known even outside the country A risk taker and a bearer of uncertainty The 18th Century An entrepreneur ENTREPRENEURSHIP IN THE PHILIPPINES was distinguished from the capitalist ○ The Philippines is an entrepreneurial country, where 99.7% of all firms Someone who operating in the country are small coordinates, leads, ○ medium enterprises employing 69% and manages all the of the labor force and activities of the firm ○ 47% of the 803,476 registered establishments are SMEs owned by 19th and 20th Entrepreneurs are women. Centuries innovators who seeks opportunities ENTREP By failing to prepare, you are preparing to fail 2  CHAPTER 1: NATURE AND RELEVANCE OF ENTREPRENEURSHIP ENTREP 1st semester | First Long Test | School Year 2024 - 2025 and leads “existing CONTRIBUTION of ENTREPRENEURSHIP means of production ○ Entrepreneurship has a huge impact on into new channels” the economy and in the society. A little distinction ○ It was Joseph Schumpeter, an between an Austrian economist who articulated the entrepreneur and a importance of entrepreneurship to the manager economy and in the society in 1934 21st Century Entrepreneurs are ○ The increase in entrepreneurial considered as heroes activities has also initiated changes in of free enterprise the structure of business and society. Creativity and innovation was used CREATES EMPLOYMENT to exploit high growth potentials Significant ○ When entrepreneurs put up their changes due to the business, they employ people who Internet possess different competencies and personal values to help them operate the enterprise Entrepreneurship in the Philippines started through the barter system wherein goods and services were the means of exchanges. DEVELOPS NEW MARKET Then, countries moved towards a money ○ They are opportunity seekers, creative economy when people used different forms of and resourceful. They seek for new money to pay for the goods they bought. buyers or customers. They go beyond However, when we were colonized for the existing places where their products hundreds of years, the structure of society, are sold economy, education, and political system were changed. INTRODUCES INNOVATION We became family-centered, Catholic, ○ Innovations can be something ordinary capitalist, and a democratic country. or technological or breakthrough. Due to innovation, other business fold, while others will open or flourish. Some even After independence, the Philippine restructure like merging or buying out government realized the importance of firms, to respond to the changes that entrepreneurship to individuals, society, and are required in order to become the country, and how it contributes to the sustainable in the business. nation’s economic development. ENTREP By failing to prepare, you are preparing to fail 3  CHAPTER 1: NATURE AND RELEVANCE OF ENTREPRENEURSHIP ENTREP 1st semester | First Long Test | School Year 2024 - 2025 some of the characteristics that will also make them successful entrepreneurs in GENERATES NEW SOURCE OF MATERIALS the future. ○ Entrepreneurs are always in constant search for better and cheaper sources of materials they need. Finding new BRINGS SOCIAL BENEFITS TO THE materials providers or suppliers help in PEOPLE the economic growth of the place. ○ Entrepreneurs pay taxes for every product or service sold to the market. The income derived from all these taxes STIMULATES INVESTMENT INTEREST IN by the government are then used or the THE NEW BUSINESS VENTURES BEING people, especially the poor to have CREATED access to education and health as well ○ When entrepreneurs engage in a new as improvement in infrastructure business, it stirs curiosity for other facilities like roads and bridges. people to invest in the business because of the benefits it offers. This new investment contributes to the UTILIZES AND MOBILIZES INDIGENOUS economic growth. RESOURCES ○ SMEs will always look for cheaper and local materials to supply their needs. IMPROVES THE QUALITY OF LIFE This saves much in terms of foreign ○ The new products and services currency as local enterprise patronize developed by the entrepreneur their own resources and they do not contribute to the increase in the become dependent on imported personal benefit and convenience of materials. people in society. The use of automatic gadgets in cooking or washing clothes, mobiles phones, internet service, PRODUCES MORE ALTERNATIVE agricultural machines leads t a better SOURCES FOR CONSUMERS quality of life. ○ The stiff competition in the market for quality and cheaper products and services requires the entrepreneurs to SERVES AS ROLE MODELS come up with more products consumers ○ Entrepreneurs are people to be can choose from. emulated by younger generations in the community and society. The attitude, behavior and personality traits like pro activeness, opportunity recognition, risk-taking, alertness and creativity are ENTREP By failing to prepare, you are preparing to fail 4  CHAPTER 2 | LESSON 1: CONCEPT OF ENTREPRENEURS TODAY ENTREP 1st semester | First Long Test | School Year 2024 - 2025 ENTREPRENEUR CHARACTERISTICS OF ENTREPRENEUR ○ Come from French word DIMENSION IN THE PAST TODAY “Entreprendre” means “to undertake” ○ is a founder and creator of the Educational Less Highly enterprise who makes use of the Attainment Educated Educated opportunities that abound to start or Age Older Younger grow business, knowing that there are risks involved in such undertaking Gender Dominated Mixed by Males Ownership A. FROM AN ECONOMIST’S POINT OF Previous Less More Experience Business Business VIEW Experience Experience ○ someone who brings resources, labor, materials and other assets into Utilization of Relies on Proficient in combinations that make their value IT Manual IT greater than before System ○ someone who introduces changes, Leadership Directing Empowering innovations and a new order Style Drive To get Ahead To make a B. FROM A PSYCHOLOGIST'S POINT Orientation difference OF VIEW Perspective “I can do it” “ We can do ○ a person who is “typically driven by on Self- it” certain forces such as the need to Confidence obtain or attain something, to experiment, to accomplish, or perhaps to escape the authority of others” COMMON PROFILE DIMENSIONS C. FROM A MANAGEMENT ○ Calculated Risk- Taking PERSPECTIVE ○ Commitment ○ someone who identifies opportunities, ○ Feedback- Seeking plans, mobilizes resources, manages, ○ Perseverance and assumes the risks of a business to ○ Drive to Achieve have a positive impact on society ○ Self- Confidence ○ Opportunity Orientation ○ Innovativeness ○ Responsibility ○ Tolerance For Failure ENTREP By failing to prepare, you are preparing to fail 1  CHAPTER 2 | LESSON 1: CONCEPT OF ENTREPRENEURS TODAY ENTREP 1st semester | First Long Test | School Year 2024 - 2025 A. CALCULATED RISK-TAKING ○ doing everything possible to get the ○ EXAMPLE: odds in their favor, and they often avoid ○ Borrowing money from other sources to taking unnecessary risk augment capital, looking for and training ○ EXAMPLE: Convincing investors to put employees and asking support from the up their money, creditors giving government for small businesses. discounted interest rates, and suppliers offering special terms of payment for the raw materials. E. DRIVE TO ACHIEVE ○ the internal desire to pursue and attain challenging goals B. COMMITMENT ○ entrepreneurs examine the situation, ○ the unwavering dedication to work for plan how to achieve their goals given the common good of the society through the condition one’s business ○ EXAMPLE: Regular assessment of the ○ EXAMPLE: Willingness to use one’s business performance, analysis of the own savings, sacrificing family time, and competitors performance in the market, working long hours and traveling to planning strategically to sustain the different places to acquire needed business. resources. F. SELF-CONFIDENCE C. FEEDBACK-SEEKING ○ the belief that together with the other ○ the taking of steps to know how well people, things can be done in the they are doing and how they might business improve their performance ○ EXAMPLE: Having positive belief and ○ EXAMPLE: Constantly asking for allowing those around them to help comments, reactions and suggestions during a crisis or non-profitable period from their employees and customers, for the business. then using these feedbacks to improve their products. G. OPPORTUNITY ORIENTATION ○ the constant awareness of opportunities D. PERSEVERANCE that exist in everyday life ○ the determination to succeed by ○ EXAMPLE: Studying the change in overcoming obstacles and setbacks consumer preferences to improve an ○ entrepreneurs will not easily give up existing product or introduce a new one, when problems come their way importing more of the needed raw materials when the government ENTREP By failing to prepare, you are preparing to fail 2  CHAPTER 2 | LESSON 1: CONCEPT OF ENTREPRENEURS TODAY ENTREP 1st semester | First Long Test | School Year 2024 - 2025 provides more tax incentives. need to improve their services. H. INNOVATIVENESS ○ the ability to come up with something different or unique ○ can be in terms of a new product, service, process, market or technology this trait is often related to creativity or “thinking outside the box” ○ EXAMPLE: Development of new models of mobile phones, online buying and selling, introduction of online services like bills payment, internet banking. I. RESPONSIBILITY ○ the willingness to put themselves in situations where they are personally responsible for the success or failure of the business operation ○ EXAMPLE: Taking on the blame for mistakes of the employees, admitting to customers that there is an error that was done and that this will be corrected, standing up for what is right. J. TOLERANCE FOR FAILURE ○ using it as a learning experience ○ serious setbacks and disappointments become an integral part of the learning process. ○ EXAMPLE: Confronting the source of their problems like employees or suppliers, not repeating the same mistake in the production of a product, admitting to the customer that there is a ENTREP By failing to prepare, you are preparing to fail 3  CHAPTER 2 | LESSON 2 : HOW ENTREPRENEURS THINK ENTREP 1st semester | First Long Test | School Year 2024 - 2025 and people they know. Then chooses from possible outcomes. HOW ENTREPRENEURS THINK ○ ○ Entrepreneurs think differently than COURSES OF ACTION: non-entrepreneurs. They are more 1. Convince an investor to invest the intuitive than non-entrepreneurs. needed money to start the business. 2. Invite friends and relatives and show ○ An entrepreneur collect, process and what unique ethnic items you intend to evaluate information in a more intuitive sell. manner than managers. 3. Might opt to direct or online sell instead of having a store to minimize expenses ○ According to Armstrong and Hird, entrepreneurs preferred to have an GENERATE MULTIPLE DECISION open-ended approach to problem MODELS solving. ○ This thinking process enable the entrepreneurs to reflect, comprehend ○ As observed by Timmons, this style of and control one’s learning and working is particularly suited to the intellectual ability. It means that based needs of entrepreneurs who have to on what an entrepreneur observes or sense opportunities where others see feels, he will come up with a number of chaos and confusion. decision making models centered on reasonable solutions and acting on he situation. ○ According to Kazmi, “the typical entrepreneur is alert, rational, well-informed and does not show carelessness and ignorance. LEARN FROM FAILURE ENTREPRENEURS THINK THIS WAY: ○ There are many causes of failure, such as lack of experience in doing business, ACTUATE SELF-ASSESSMENT AND inability to attract new funding, lack of CHOOSE COURSE OF ACTION new product development effort, lack of supply of needed raw materials, family ○ The entrepreneur determines what they conflict over the management of the have, like knowledge, skills, resources ENTREP By failing to prepare, you are preparing to fail 1  CHAPTER 2 | LESSON 2 : HOW ENTREPRENEURS THINK ENTREP 1st semester | First Long Test | School Year 2024 - 2025 business, resignation of skilled workers ○ Failure always results in negative emotions like anger, guilt, anxiety and hopelessness. And these can hinder the entrepreneur’s ability to learn from failure and the motivation to try again. ○ Self-determination, as well as pro active and positive thinking, can help the entrepreneurs go through the process of recover. ENTREP By failing to prepare, you are preparing to fail 2  CHAPTER 2 | LESSON 3: ENTREPRENEURIAL COMPETENCIES ENTREP 1st semester | First Long Test | School Year 2024 - 2025 CROSS-FUNCTIONAL COMPETENCIES ENTREPRENEURIAL COMPETENCIES ○ those broad overall skills that are ○ The sum total of the personality, skills grouped into goal and action and knowledge that the entrepreneur management cluster, people possesses, which are necessary to management cluster and analytical effectively perform their functions and reasoning order responsibilities ○ it is ideal that the entrepreneurs ○ can be divided into functional, possess and demonstrate at an behavioral, and cross-functional advanced level these various groups Camuffo, Gerli, and Gubitta competencies to contribute to better firm (2012) performance “It is important to bear in mind that these FUNCTIONAL COMPETENCIES entrepreneurial competencies are changeable ○ those skills, organized into clusters, and learnable through proper education and regarding the main areas of managerial training.” knowledge, such as accountancy, finance, control, marketing, HR Man and Chan (2002) categorized all of the Management, organization, operations, identified competencies into relevant activities internationalization and strategy that and behavior in the SMEs context enable the entrepreneurship to manage the organization SIX COMPETENCY AREAS BEHAVIORAL COMPETENCIES ○ Opportunity Competencies ○ Relationship Competencies ○ Conceptual Competencies those specific behaviors grouped into 5 ○ Organizing Competencies clusters, namely ○ Strategic Competencies ○ Self-awareness ○ Commitment Competencies ○ Self-management ○ Social Awareness ○ Relationship Management OPPORTUNITY COMPETENCIES ○ Cognitive Competencies - related to recognizing and developing market opportunities through various means ENTREP By failing to prepare, you are preparing to fail 1  CHAPTER 2 | LESSON 3: ENTREPRENEURIAL COMPETENCIES ENTREP 1st semester | First Long Test | School Year 2024 - 2025 RELATIONSHIP COMPETENCIES ○ related to person to-person or individual-to group based interactions CONCEPTUAL COMPETENCIES ○ related to different conceptual abilities, which are reflected in the behaviors of an entrepreneur ORGANIZING COMPETENCIES ○ related to the organization of different internal and external human, physical, financial, and technological resources STRATEGIC COMPETENCIES ○ related to setting, evaluating, and implementing the strategies of the firm COMMITMENT COMPETENCIES ○ the drive of an entrepreneur to move ahead with the business ENTREP By failing to prepare, you are preparing to fail 2  CHAPTER 2 | LESSON 4: ENTREPRENEURIAL DECISION-MAKING AS A CORE COMPETENCY ENTREP 1st semester | First Long Test | School Year 2024 - 2025 ENTREPRENEURS USE OF INTUITION IN DECISION MAKING ○ think and process differently ○ the use of “gut feel” to arrive at a ○ The critical and creative skills of the decision entrepreneurs are utilized in ○ sometimes, entrepreneurs making fast decision-making decisions may result in missed ○ will always make decisions from the opportunities, disappointments, or identification stage, to the organization, business failure and implementation/execution stages of their business venture AFFECT INFUSION ○ suggests that entrepreneurs’ current FACTORS THAT DETERMINE moods influence judgements or ENTREPRENEURIAL DECISION- MAKING decisions PROCESS 1. Rational/ Scientific Method in Decision- Making ATTRIBUTION STYLE 2. Use of Intuition in Decision - Making ○ refers to the entrepreneurs’ self-serving 3. Affect Infusion bias 4. Attribution Style ○ this bias is related to (1) a strong 5. Counterfactual Thinking tendency on the part of most 6. Over- Confidence entrepreneurs to attribute positive 7. Knowing- Style outcomes to internal causes, and (2) 8. Creative Style a corresponding tendency of 9. entrepreneurs to attribute negative RATIONAL/SCIENTIFIC METHOD IN outcomes to external causes DECISION-MAKING ○ involves the use of the standard six-step COUNTERFACTUAL THINKING process to arrive at a decision ○ requires the use of management ○ an afterthought in decision making in quantitative techniques which the procedures followed to perform the task are discussed, and The Standard Six- Step Process: various alternatives that could have ○ Identify the Problem been followed are considered ○ Gather Data ○ Analyze Data ○ Formulate Alternative Solutions ○ Select the Best Alternativ ○ Implement the Decision ENTREP By failing to prepare, you are preparing to fail 1  CHAPTER 2 | LESSON 4: ENTREPRENEURIAL DECISION-MAKING AS A CORE COMPETENCY ENTREP 1st semester | First Long Test | School Year 2024 - 2025 OVER-CONFIDENCE ○ the tendency to think that they know more than what they really know when they make the decision ○ the entrepreneurs’ failure to know the limits of their own knowledge KNOWING-STYLE ○ combination of analytical and conceptual thinking ○ entrepreneurs look for facts and data before they make decisions ○ this style tends to be slower, cautious, and centralized CREATIVE STYLE ○ holistic and conceptual thinking entrepreneurs tends to be creative and enjoy experiments before making decisions ○ thinking out of the box ENTREP By failing to prepare, you are preparing to fail 2