Entrepreneurship: Overview and Concepts PDF

Unit 1: Understanding the Concept of Entrepreneurship Lesson 1: Entrepreneurship: Overview and Concepts Contents Engage 1 Introduction 1 Objective 1 Explore...

Unit 1: Understanding the Concept of Entrepreneurship Lesson 1: Entrepreneurship: Overview and Concepts Contents Engage 1 Introduction 1 Objective 1 Explore 2 Explain and Elaborate 3 The Entrepreneur and Entrepreneurship 3 Why Study Entrepreneurship? 3 Common Entrepreneurial Competencies 4 10 Competencies for Entrepreneurial Success 6 Extend 9 Activity 9 Evaluate 10 Wrap Up 13 Bibliography 14 Unit 1.1: Entrepreneurship: Overview and Concepts Engage Introduction Fig. 1. The Business Man Do you know that everything you see in your environment is related to business? Do you know that almost all establishments that surround you are businesses? A student like you can also be engaged in business activities and may become an entrepreneur. Read the lesson and immerse yourself as you gain an interest in becoming an entrepreneur. Objective In this lesson, you should be able to explain the key concepts of common competencies in entrepreneurship. DepEd Competency Explain the key concepts of common competencies. (additional lesson for review/enrichment) 1 Unit 1.1: Entrepreneurship: Overview and Concepts Explore 15 minutes Guide Questions Observe the environment that surrounds your school. Answer the following questions. 1. What are the establishments you see? List down at least five establishments. 2. Do any of the establishments you listed earn profit? How do these establishments earn a profit? 3. What ability or skills should entrepreneurs have in order to make these establishments successful? 2 Unit 1.1: Entrepreneurship: Overview and Concepts Explain and Elaborate The Entrepreneur and Entrepreneurship An entrepreneur is a person who creates unique ideas that will be useful for a starting business. It will enhance a student’s interest to be an employer rather than an employee. Having this in mind, we can define entrepreneurship as the science of converting processed ideas into a remarkable business venture. It refers to the setting up of a business or businesses while taking into consideration its financial risks, geared towards the attainment of profits. Why Study Entrepreneurship? The following will be the benefits to senior high school students for studying entrepreneurship: 1. It will increase an individual’s entrepreneurial interest. 2. It will help to discover innovators who also have the competence and edge of becoming entrepreneurs. 3. It will help the learners analyze creative and attainable ideas. 4. The learners will be able to write a business plan. How will this course be beneficial for you? Usefulness of the Course to the Students 1. It develops skills that will be needed for starting up a business. 2. It enhances knowledge on how to operate business. 3. It demonstrates how to manage a business. 4. Learners may consider becoming an employer rather than an employee. 5. Learners change their attitude towards the course as a means of living. 6. Learners change in personal and career attitudes such as communication, problem-solving skills, collaboration, motivation, creativity, and teamwork. 3 Unit 1.1: Entrepreneurship: Overview and Concepts How important is it to have a good background in entrepreneurship? Importance of Entrepreneurship Education The following are the importance of entrepreneurship education: 1. Entrepreneurship serves as a key economic driver. It focuses on wealth creation, and through small businesses started by entrepreneurial-minded individuals, it will also create jobs for the people. 2. Entrepreneurial education is an individual lifelong process. It helps increase the level of knowledge and competence and improve the quality of life. 3. Entrepreneurship education benefits every student by giving an alternative career path at any time of his or her life. Tip In terms of idea generation, entrepreneurs and businessmen have differences. A businessman starts the business with an existing idea or concept while an entrepreneur starts the business from his own unique idea or concept. Common Entrepreneurial Competencies For us to understand clearly the common entrepreneurial competencies, let us define first the term entrepreneurship and competencies. Entrepreneurship is a science of converting processed ideas into a remarkable business venture. Competencies are considered as the capability, capacity, and ability of a person to handle situations in various areas in business operations such as in marketing, management, production, and finance. 4 Unit 1.1: Entrepreneurship: Overview and Concepts Entrepreneurial Competencies In starting a business, you should seek competencies such as the following: Table 1. Common entrepreneurial competencies Competencies Description Specific Goal Setting Entrepreneurs should set goals that are specific, measurable, attainable, realistic, and time-bound because it will increase the chances of achieving that goal. Self-Efficacy Entrepreneurs must believe in their ability. Entrepreneurs with high self-efficacy will turn negative feedback into positive and use this as a basis for improvement. Need for Achievement Entrepreneurs must have a high desire to accomplish goals. This includes repeated efforts to achieve success. Ambition Entrepreneurs must have motivation and persistence to pursue their goals. Willingness to Learn Entrepreneurs should have a strong willingness to acquire new knowledge and skills. Adaptability and Flexibility Entrepreneurs must learn how to be adaptable and flexible in every situation. They can manage change well and generate new actions even with undesirable events. Willingness to Take Risks Entrepreneurs must be willing to accept the consequences of every decision. They must know how to calculate and identify risk. They are skilled in developing new plans. Interpersonal Skills Entrepreneurs should have strong skills in working with people. They should have an understanding of the behavior of others. 5 Unit 1.1: Entrepreneurship: Overview and Concepts 10 Competencies for Entrepreneurial Success The entrepreneurial competencies only enable you to be engaged in business. It is not a guarantee that your business will be a big hit or very successful all of a sudden. That is why aside from the entrepreneurial competencies, you should also be well versed in the competencies for entrepreneurial success. These will help you to have a successful business undertaking. Table 2. Competencies for entrepreneurial success Competencies Description Integrity An entrepreneur should have a positive sense of values and personal beliefs, particularly when encountering difficult or challenging situations. Conceptual Thinking An entrepreneur is open to new approaches and analyzes ideas that may enhance work and will lead to significant improvements. Risk-taking An entrepreneur anticipates future conflicts but knows how to solve problems that may arise in business organizations. Collaboration Entrepreneurs should know how to work with people or groups to attain common goals and to promote teamwork. Strategic Thinking Entrepreneurs understand and use strategies as a way to accomplish goals in relevance to aims and objectives. Commercial Aptitude An entrepreneur should be updated with the developments in the locality and with knowledge to identify opportunities that can be attained by the business. Decisiveness An entrepreneur should know how to make choices and resolve issues quickly. 6 Unit 1.1: Entrepreneurship: Overview and Concepts Competencies Description Optimism An entrepreneur should always think positively even when faced with unexpected problems. Customer Relations Service An entrepreneur should know how to build trust and long-term relationships with customers. People-centered An entrepreneur should know how to motivate people and see and value the best in others. Tip The common competencies are the skills you need in starting a business. On the other hand, the 10 competencies discussed are the skills that you need to be a successful entrepreneur. Example Competencies for entrepreneurial success: Competencies Example Integrity An entrepreneur should have a positive sense. He or she knows what is good and right, does what is best for everyone, and does not act without thinking. Conceptual Thinking An entrepreneur reviews project outcomes in order to understand where problems occurred. Check the impact of the proposed solution on both customers and employees. Risk-taking An entrepreneur relies on his or her gut feel if the venture will be successful or not. Collaboration An entrepreneur should establish good networking and connections with experts and government 7 Unit 1.1: Entrepreneurship: Overview and Concepts Competencies Example agencies that are instrumental to the operation and success of the business. Strategic Thinking An entrepreneur finds ways to do things faster or at less costs. Commercial Aptitude An entrepreneur always checks for updates on the current trends in the market in relation to his or her product. Decisiveness An entrepreneur switches to an alternative strategy to reach a goal. It generates new ideas and innovative solutions. Optimism An optimistic entrepreneur lets go of the unfortunate events that took place and just takes the lessons learned from the experience. Customer Relations Service A good entrepreneur knows what his or her customers need in order to satisfy them and have a long-term relationship with them. People-centered An entrepreneur knows how and when to show empathy. He or she listens actively to everyone. 8 Unit 1.1: Entrepreneurship: Overview and Concepts Extend Activity The following are questions that a potential entrepreneur must ask before setting up a new business. A YES or NO answer is recommended. Questions Answer 1. Do I have strong people skills? 2. Do I enjoy making decisions? 3. Am I a planner and goal setter? 4. Am I willing to take risks? 5. Am I flexible and can adapt in changing circumstances? 6. Am I ready to learn and accept mistakes? 7. Am I customer-oriented and willing to have a good relationship with customers? 8. Do I have positive values and beliefs? 9. Do I create innovative ideas in order to make my product unique? 10. Do I take responsibility for my actions? 9 Unit 1.1: Entrepreneurship: Overview and Concepts Guide Read the situations carefully. Answer honestly to have credible results. Answer only what is asked for every item. Evaluate A. Answer the following questions. 1. What are the qualities that you possess as an entrepreneurship student? Give at least five qualities and explain each. 2. Among those qualities, rank them with 1 as the strongest and 5 as the weakest quality. 10 Unit 1.1: Entrepreneurship: Overview and Concepts 3. What are the benefits of studying entrepreneurship to students? 4. What entrepreneurial competencies do you need to have to become a successful entrepreneur? 5. What is the difference between a businessman and an entrepreneur? B. Analyze the following scenarios. Identify what competencies for entrepreneurial success are involved in the following situations and then answer the provided questions. 1. You saw your friend alone inside the faculty room. He was using your teacher’s computer. Your teacher never allowed anyone to be in the faculty room unattended. Your classmate saw you and knew that you saw him. A few days later, it was found out that confidential files had been lost, and everyone was being questioned. Should you reveal what you saw? Which is a better example of integrity: being honest or being loyal to a friend? 11 Unit 1.1: Entrepreneurship: Overview and Concepts 2. A sales staff was having difficulty assisting a foreign customer because he could not speak English fluently. It was seen by the manager. What should the manager do? 3. All the finance staff were having a meeting with suppliers at 9:00 in the morning. One of the staff arrived late due to a road accident that caused a traffic jam. If you were the staff, what entrepreneurial competency should you have in order to conquer the scenario? 12 Unit 1.1: Entrepreneurship: Overview and Concepts Wrap Up ___________________________________________________________________________________________ An entrepreneur is a person who creates unique ideas that will be useful for a starting business. Entrepreneurship is the science of converting processed ideas into a remarkable business venture. A businessman starts the business with an existing idea or concept, while an entrepreneur starts the business from his or her own idea or concept. ________________________________________________________________________________________ 13 Unit 1.1: Entrepreneurship: Overview and Concepts Bibliography Amit_selp. “Entrepreneurial Competencies.” Docuri. Accessed March 3, 2020. https://docuri.com/download/entrepreneurial-competencies_59ae47b2f581710a62 00ff25_pdf#modals. Dollingner, Marc. Entrepreneurship: Strategies and Resources 3rd Edition. New Jersey: Prentice Hall, 2003. Kotler, Philip & Gordon McDougall. Marketing Essentials. Prentice-Hall Canada Inc., 1985. Peters, Michael & Robert Hisrich. Entrepreneurship 4th Edition. McGraw-Hill Book Co., 1999. Seth, Shobhit. “ 5 Characteristics of Successful Entrepreneurs.” Investopedia. Accessed March 3, 2020. https://www.investopedia.com/articles/personal-finance/101014/10-characteristics -successful-entrepreneurs.asp. 14