Module 1 Entrepreneurship PDF

Lesson 1 INTRODUCTION TO ENTREPRENEURSHIP Why do people become entrepreneur?  WHY DO PEOPLE BECOME ENTREPRENEURS To change the world They don’t want a boss They want flexible hours They want to work from anywhere They can’t get a job They don’t fit in the corporate environment...

Lesson 1 INTRODUCTION TO ENTREPRENEURSHIP Why do people become entrepreneur?  WHY DO PEOPLE BECOME ENTREPRENEURS To change the world They don’t want a boss They want flexible hours They want to work from anywhere They can’t get a job They don’t fit in the corporate environment They are curious They are ambitious  Do you imagine yourself becoming an entrepreneur and managing your own business? ENTREPRENEURSHIP Entrepreneurship is an activity of setting up a business or businesses, taking on financial risks in the hope of profit. Entrepreneurship is a vital activity to bring about changes in the economy and society, not only in a country but also in those in the world. ENTREPRENEUR The term “entrepreneur” originates from the French word entreprendre which means “to undertake” or “to start something”. It connotes a business paradigm which signifies the start of a new business undertaking. ENTREPRENEUR An entrepreneur is a unique individual who has the innate ability and extraordinary dedication to establish and manage a business, acknowledging all the risks and reaping its reward. Like other vocations, being an entrepreneur is also a calling.  HERE ARE THE ROLES AND BENEFITS OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT 1. Job Creation Entrepreneurs establish new businesses, which generate employment opportunities. As businesses grow, they hire more workers, reducing unemployment rates. 2. Innovation and Technological Advancement Entrepreneurs introduce new ideas, products, services, and technologies, driving innovation. This improves productivity, efficiency, and competitiveness in the economy. 3. Capital Formation Entrepreneurs mobilize savings and investments to fund their ventures. This capital formation increases overall economic productivity. 4. Wealth Creation and Distribution Entrepreneurship generates wealth for business owners, employees, and the government (through taxes). Wealth distribution reduces income disparities and improves living standards. 5. Improvement in Standard of Living Entrepreneurs create goods and services that satisfy consumer demands, improving quality of life and providing access to better products. 6. Economic Diversification Entrepreneurs operate in various industries, reducing the economy’s dependence on a single sector and promoting diversification. 7. Regional Development Entrepreneurs often establish businesses in rural or underdeveloped areas, leading to infrastructure development, investment, and reduced regional disparities. 8. Export and Foreign Exchange Earnings Entrepreneurs contribute to exports by producing goods and services for global markets, bringing in foreign exchange, which strengthens the economy. 9. Encouragement of Competition Entrepreneurship fosters competition, which leads to better quality products, competitive prices, and consumer benefits. 10. Social Entrepreneurship Entrepreneurs also address social problems through innovative business solutions, such as sustainable development, education, and healthcare.  HERE ARE THE Attributes, Qualities and Characteristics of an Entrepreneur 1. Visionary Thinking Entrepreneurs have a clear vision for their ideas and goals. They see opportunities where others may not and imagine innovative solutions for future needs. 2. Risk-Taking Ability They are willing to take calculated risks and embrace uncertainty to achieve their goals. Entrepreneurs understand that failure is often part of the journey to success. 3. Resilience and Perseverance Entrepreneurs face setbacks and challenges but remain determined. They bounce back from failures, learn from them, and keep pushing forward. 4. Creativity and Innovation The ability to think creatively and come up with new products, processes, or strategies is a hallmark of successful entrepreneurs. 5. Adaptability and Flexibility Entrepreneurs adapt quickly to changing circumstances and pivot their strategies when necessary to remain competitive. 6. Passion and Drive Passion fuels entrepreneurs, giving them the energy and motivation to overcome obstacles and achieve their dreams. 7. Decision-Making Ability Entrepreneurs are decisive, weighing pros and cons quickly and making effective decisions under pressure. 8. Financial and Business Acumen Understanding financial management, markets, and business operations is critical to sustaining and growing a business. 9. Networking Skills Entrepreneurs excel at building relationships with investors, mentors, partners, and customers, which helps them expand their resources and opportunities. 10. Customer-Centric Approach They focus on understanding and solving customer needs, ensuring their products or services provide value. Entrepreneurship or Employment? Entrepreneurship and employment are two different career paths that a person can choose depending on his or her personal aspirations and work characteristics. It is really up to the person at the end of the day on what career trail he or she follow, considering all compelling career factors that are important to him or her.  IMPORTANT CAREER ENTREPRENEUR EMPLOYEE FACTORS 1. Income Income generated Income generated actively passively even when the (i.e., on working hours entrepreneur is resting. only) Opportunity income Income usually fixed per unlimited depending on month and increases every the success of the year depending on the business. employer and the Income only earned when employee’s performance the business is successful. Income earned whether the business is successful or not  IMPORTANT CAREER ENTREPRENEUR EMPLOYEE FACTORS 2. Hiring and Firing, Provides jobs Seeks a job Organizational Setup, and Fully responsible for Has the goal of satisfying Major Key Result Areas serving customers, making only the employer or the the business direct supervisor profitable/sustainable, Full dependent on the and providing employee employer’s performance; satisfaction is at risk of losing his or her Has the power to job if the company does disengage nonperforming not perform well employees Can only work for the Can venture into current employer expansion of business exclusively. such as franchising  IMPORTANT CAREER ENTREPRENEUR EMPLOYEE FACTORS 4. Leisure Time and Has flexible schedule and Has limited number of Vacations can take unlimited vacation days imposed by number of vacations days the employer (applicable only if the business has stabilized already) Taxed on net income; can Taxed on the gross income; 5. Taxation claim taxable income cannot use expenses deductions for allowable incurred related to the job expenses incurred by the such as food and business transportation expenses to claim for deductions from  IMPORTANT CAREER ENTREPRENEUR EMPLOYEE FACTORS 3. Daily Tasks Performs all necessary Has routine tasks and variable task to establish works on regular or and manage a startup normal hours. business, which takes Follow policies, most of the procedures, and entrepreneur’s time; memoranda from the spend more hours on employer. work more than a regular employee Prepares policies, procedures, and memoranda for the business.  IMPORTANT CAREER ENTREPRENEUR EMPLOYEE FACTORS 6. Comfort Level at Work Is comfortable in doing May be comfortable with and challenging tasks and routines and minimal takes accountability with tasks; may also be the risks and profits of comfortable in working for the business; does not the company itself. want to be confined in a box; thinks outside the box or sometimes thinks there is no box.  ACTIVITY NO. 1 Write short answers for each scenario, explain which entrepreneurial trait(s) you will be using and how you would address the situation. (15 points) 1. You have an idea for a business but only a small amount of savings. You’re unsure if it will succeed. What steps would you take to assess and take the risk while managing the uncertainties? 2. Your neighborhood has many coffee shops, and you want to open a new one. How would you make your business stand out from the competition? 3. You started a small business, but for the first few months, you’re not making a profit, and you’re losing motivation. What would you do to keep pushing forward?