M1: ENTREPRENEURSHIP

ENTREPRENEURSHIP

It is a science of converting processed ideas into a remarkable business venture.

According to Fajardo (2009), it is also a capacity for innovation, investment, and
expansion in new market products and techniques. This definition implies that an
enterprise is at work whenever an individual takes the risks and invests resources to
make something unique or something new, designs a new way of making something
that already exists, or creates new markets.

THE ENTREPRENEUR

An entrepreneur is an individual who is alert to profitable opportunities for the exchange

of goods or services. A street vendor in Divisoria takes the opportunity to make a profit
by selling school supplies during the opening of the school. During Christmas, He or she
takes the opportunity of selling Christmas items and on other occasions, sell clothing
apparel at different seasons. A cell phone repairman takes the opportunity of servicing
various cellular owners who cannot afford to buy new models. An entrepreneur is one
who organizes, manages, directs, and assumes the risks of a business or enterprise.
Being an entrepreneur is a lifestyle or an attitude. It is not a calling for everyone, but
rather a choice.

These fifteen (15) questions that a potential entrepreneur must ask himself or herself
before setting up a new business: a Yes Or NO answer is highly recommended.

1. Am I a planner, dreamer, or goal setter?

2. Do I offer a product that people want to buy?

3. Do l have enough resources to start the business

4. Will my business plan allow cash to flow as soon as possible?

5. Am l working around a tight budget for my expenses

6. Do l have good credit status?

7. Am I expecting too much from my revenues as a result of my hard work?

8. Am I ready to assess and measure everything before putting it out for the public?

9. Do I have strong people skills?

10. Do I enjoy making decisions and being in charge?

11. Am I good at short and long-range planning?

12. Am I willing to take initiative when confronted with difficult situations?

13. Am I flexible, and can adapt to changing circumstances

14. Am I willing to take calculated risks?

15. Am I ready to learn and accept the mistakes that I might encounter along the way?

If you could answer yes to most of the questions, then you are probably ready to
become an entrepreneur. There are no correct answers for these questions regardless
of your answer. These are some of the basic realities that you must face when starting a
business: demand for your product or service, cash flow, income potential,
marketability, and flexibility. Be prepared to navigate the road to entrepreneurship and
hurdle the challenges and roadblocks along the way. Source: Entrepreneur the
Ultimate Guide to Starting Your Own Business.
THE ENTREPRENEURIAL SKILLS AND COMPETENCIES

The entrepreneurial skills and competency factors are the following: negotiating
planning risk assessment, purchasing accounting recruitment, training selling controlling,
and dealing with emergencies.

The Entrepreneur as a Missionary

The entrepreneur is a missionary who perceives opportunities inherent in the exchange

of goods with a great desire to profit. The entrepreneur creates an environment in
which success is possible and the possibility of failure is controllable. The entrepreneur is
at work whenever he takes a risk and invests his personal talents and resources to make
something new or different as customers like to buy new and improved products.

Entrepreneur is Goal-Driven

An entrepreneur is goal-driven and self-confident as he exercises the locus of control.

He sets high goals and strives to attain the projected target and accomplishments. He
extracts compliance with set goals and activities to avoid the risk he foresees while
planning the activities and programs in the operation of the enterprise. He accepts
challenges and responsibility for results. He makes sure that people work based on
specified work programs and schedules.

The Entrepreneur is a Marketing Man

The marketing environment is identified by the entrepreneur and thus, he marshals his
resources to pursue the opportunities and makes immediate action to exploit his
personal gain. The needs and wants of customers are properly identified and these are
the propelling reason for him to take the opportunity to make a profit He takes the lead
for innovation and makes modifications to make the customer aware that his product
or service is more superior to those offered by others.

The Entrepreneur Starts Small to Become Big

Many entrepreneurs start small but with their managerial talents and persistence, they
exploit the opportunities available for their disposal. At the early stage, their growth
orientation is for expansion of their operation and they persistently pursue approaches
that differentiate them from other managers.
THE MAKING OF AN ENTREPRENEUR

The making of an entrepreneur is a dynamic process and an approach. As an

approach, the entrepreneur considers the business opportunity as a chance to find
new ways to solve the problem rather than solving the problem. A manager of an
organization is characterized as an adapter while the character of an entrepreneur is
an innovator. The manager employs a discipline and a precise methodical approach in
solving business problems while an innovator entrepreneur approaches the problem
from a different angle as he focuses on discovering problems and make new avenues
for its solutions. Entrepreneurship is a process that can be developed, learned and
nurtured.

ENTREPRENEURSHIP AS A DYNAMIC PROCESS

Entrepreneurship is a dynamic process of innovation and the establishment of new

opportunities for the creation of new ventures. The small business owner entrepreneur in
the sense is self-employed and is different from an innovator entrepreneur. The real
entrepreneur is an individual with the greatest drive for expansion and growth and has
the propensity to make a difference in terms of their achievements in profit and
exploitation of the resources for growth and business expansion.

The entrepreneur develops strategic plans and programs that will ascertain a definite
advantage over the others in their line of business. This is the reason why we see people
in the same line of business that others had gone miles over the others. The former is a
manager of his business while the latter is an entrepreneur.

FACTORS THAT DEVELOP ENTREPRENEURIAL ACTIVITIES

1. The Entrepreneur Takes the Initiative

With his great interest to capitalize on the opportunity at hand, the entrepreneur takes
the initiative to venture into business. With an amount of knowledge, he knows that he
can operate the venture with minimum risk. Armed with vigor and vitality, he plunges a
profitable operation.

2. Organization of Capital Resources

While talents and ambitions are great resources of the entrepreneur, financial and
human resources are important ingredients in the start of the organization. With his
savings and other financial resources, he starts operation on small scale together with
his trusted family members or friends he knew that could help him develop his dream
enterprise

3. The Development of Administrative Machinery

The management is developed with an organizational structure based on the need of

the operation. specific duties and responsibilities are assigned to individuals with talents
and skills that fit their respective position. It is based on the individual capacity to do the
job and not on personal connection with the entrepreneur.

4. The Development of Entrepreneurial Autonomy

The entrepreneur develops autonomy in the operation of the enterprise as he takes the
lead in all the activities of the organization especially in the early stage of operation. His
venture capitalized as he knows best the direction of the enterprise as he is aware of
the calculated risk involved. The locus of cost control must be in his hands.

5. The Development of SWOT Analysis

The avoidance of risk can be taken with careful analysis of the Strength, Weaknesses,
Opportunities, and Threats of the organization. The entrepreneur must see the
environment of the enterprise based on SWOT analysis so that the risk involve could be
seen before it happens. Forecasting environmental events are an antidote to future
business risk.

PECULIAR CHARACTERISTICS OF MANAGERS IN SOLVING PROBLEMS

1. He develops systems and procedures that are precisely based on current practices in
an industry.

2. The manager is interested in solving organizational problems rather than finding other
avenues in the solution of the problems.

3. The manager calibrates in the refinement of policies and procedures and tends to
revise them to solve existing problems.

4. HE finds ways and means to provide solutions and compliance to routine activities.
5. He is interested in details and sensitive to group cohesion and extracts group
cooperation as a means to group accomplishments.

CHARACTERISTICS OF AN INNOVATOR ENTREPRENEUR IN SOLVING PROBLEMS

1. He looks at the problem on different angles and finds means to circumvent the same

2. He discovers the roots of the problem and develops avenues to better solve the
problem. He formulates solutions and alternatives,

3. He develops basic assumptions and hypotheses related to current practices and

makes innovations based on careful analysis through SWOT.

4. The innovator entrepreneur is interested in the end results rather than the means to
achieve it. He has little tolerance for details and routine work.

5. He capitalizes on people with bright ideas and talents and gets their opinion and
consensus and with little regard for people with mediocre ideas.

THE DEVELOPMENT OF ENTREPRENEURSHIP

The Making of a Filipino Entrepreneur

The making of a Filipino entrepreneur is a process of trial and error. The colonization of
the Filipino for more than 300 years is a great factor in the slow development of
entrepreneurial activity in the country. Our concept of owning a small business like a
sari-sari store, or a small tailoring shop, or a repair shop or market distribution outlet
already makes the person an entrepreneur. While this concept is true to a certain
extent, entrepreneurship is more than being self-employed and making a living out of
the meagre income to support family needs or a little of their wants.

The success of Filipino entrepreneurs stands on a very shallow foundation. Most Filipino
business starts on a copy-cat syndrome. For example, Maria will start a sari-sari store,
and here comes Pedro seeing the flourishing business of the Maria, opens store
opposite the other corner. Juana starts a barbeque stand on the corner and Petra with
another outlet offering another variety of street foods. This is the Scenery in most
Philippine business conditions.

The food business outlet is one of the most abused and most prominent activities of
some Filipino business entrepreneurs, including that of a small outlet in the distribution of
basic grocery and other items called sari-sari store or in some cases mini-grocery stores.
Some enterprising outlets include cellular phone load that adds to their income.

THE MAKING OF JOLLIBEE FOODS' CORPORATION

The true Filipino entrepreneur is more than that a copycat. While we consider the
success of Jollibee Corporation in the food industry, the founder is not a true Filipino in
the strict sense of his origin. He has Chinese blood; he inherited his business acumen
from his parents who knew how business should grow and prosper.

He started with an ice cream stand and later made it into an outlet for chicken joy and
other food items that answer the Filipino taste buds, especially for children. His success
was based on his talent for innovation and finding a business that makes him a multi-
millionaire.

THE FOUNDATION OF NATIONAL BOOKSTORE

The making of the National Book Store is not a myth of fortune and honey. The founder,
Socorro Ramos, came from a poor family who sustained a living from selling various
items to support their basic needs. She was a working student while in high school but
because of her persistence and perseverance, she graduated with honors. Being a
working student was not a hindrance to her education as she painstakingly combined
studies with hard work.

After high school, she worked as a sales clerk in Goodwill Bookstore owned by her
brother where she learned the rudiments of the book business. Learning the hard way is
not an easy task and starting a business empire of national magnitude with more than
30 branches all throughout the country was a product of entrepreneurial acumen
coupled with determination and hard work.

Business capital for expansion could come from savings and other sources. The Ramos
couple knew that they could expand their business with the savings that they had and
bought the present office of the store at Rizal Avenue in Santa Cruz, Manila where a 9-
story edifice was built. They built a building complex in Pasig where printing and other
services are being made.

With the help of their children, they went into vertical expansion by establishing a
printing press to print local books and other office forms and supplies. They ventured on
other business activities and expand horizontally and vertically and made them of what
they are today. 1Their children were trained the same hard way and they are all
successful, fitted to inherit the new growing business empire.

LEONARDO SARA0, THE JEEPNEY KING

The success of the jeepney business is the making of a Filipino entrepreneur. Sarao
jeepneys abound in all terminals during the early period of transport development in
the country until copy- cats made jeepneys of similar styles. Leonardo Sarao, the
jeepney king, started the business by being a helper mechanic until he established his
repair shop from a meagre capital.

He then started buying second-hand parts and engines from Japan and built jeepneys
that abound in most streets of Metropolitan Manila and its suburbs. He established the
jeepney factory with meagre capital and made savings to expand his operations. He
ventured into other business activities and success was not based on his education but
hard work and determination. All his children became professionals and are now
engaged in various business activities that made them of what they are today.

The mentioned few successful stories of Filipino entrepreneurs will serve as a self-
propelling reason for us to think that the making of entrepreneurship is not served on a
silver platter. The career of these few successful entrepreneurs was built with
entrepreneurial genius founded on slow and painstaking hard work. Their personal
objective is not only to generate money to sustain basic needs or wants but the greater
drive for personal fulfillment.
THE CHALLENGES FOR ENTREPRENEURSHIP

The new generation of young entrepreneurs should look up to the high standard of
values and character of entrepreneurs who got up the ladder of success. Success in
entrepreneurial activity is based on the inner compulsion to achieve undeterred
difficulties. The values and character of JUAN TAMAD have no place in the world of
entrepreneurial vocabulary.

1. The new entrepreneur must be a doer and willing to work hard until he achieves the
task, he wants for himself.

He must possess the versatility for success and self-confidence that could be overcome
risk with his strong determination. The exploration of the total business environment must
be put into total perspective as it interplays with the development of new opportunities
and the risk attached to it

2. Personal attention and comprehensive awareness for the progress of the business are
not trusted on other people.

The entrepreneur must be in direct control of the operation and not in indirect control.
He must be able to measure the desired results. He must personally verify the data and
financial figures spent and earned in the operation of the business.

3. The new entrepreneur must have a high sense of integrity that he stands firm on his
principles and ideals.

His word of wisdom is a contract to depend on. He looks at things from different
perspectives and approaches things with varied alternatives to attain what he wants. In
short, he is visionary, innovative, and unstoppable until he achieves the goal he sets for
himself.

4. Emotional stability is an important factor in the making of an entrepreneur.

While he is impatient for mediocre performance and lazy bones, his temper must
remain in control. Interpersonal relationships must be the banner in negotiations and
effective personal communication the key factor in closing Business deals.

5. The built-in self-starting mechanism that drives an entrepreneur to success is the

executive ability to manage people and resources.
This executive ability refers to how he plans, organizes, directs, and controls the physical
and material resources under his disposal. Many entrepreneurs are describing to have a
shrewd judgment in character that induced them to see things the way it should be. An
entrepreneur has a passion for excellence and mediocre performance has no place in
his entrepreneurial vocabulary.

The new entrepreneurs and those who believe in their capacity for long hours of work to
get things done, spend 75 percent in planning innovations and putting them into
action. Dreams are built around creativity as he conceived original ideas out of his
imagination.

The entrepreneur is like a multi-awarded artist with a handful of trophies of

accomplishment equipped with an inner drive-in transforming ideas into tangible
reality. Sacrifice for long working hours and abandonment of personal life pleasures
make the entrepreneur achieve their target goals. They organize and develop their
idea into achievable activities and surpass the factor of risk.

THE STARTING POINT TO ENTREPRENEURIAL SUCCESS

1. Start to be on your own.

An individual can never attain success in the entrepreneurial activity unless he starts his
own business and releases himself as an employee for the rest of his life. Income from
employment is never enough as it is good until the 15th and end of the month. Never
have we found an ordinary employee who gets rich except those who are connected
with the government and amass wealth through graft and corruption.

You may start as an employee, get new ideas and develop your own entrepreneurial
style from experience and education. Start dreaming and be independent. Learn to
save money and be sure to put it in proper investment then make it as starting capital
to operate your enterprise. Make that money work for you as you think to make it grow
bigger from the dreams you have crafted out of your imagination for success.

2. Explore the business environment.

The Philippines being a haven of opportunities is wide open for people who dream to
be rich and amass a fortune as we have all the natural resources. Find the things you
can do best and you must have the talent and interest in doing it. Remember that the
central objective of any business is to produce the best goods and those that provide
better service.
With the talent you acquire in conducting feasibility studies in your college days or
those that you learned from experience, apply your knowledge in SWOT analysis.
Consider opportunities for expansion as business growth is possible under good
management.

3. Be in control.

The entrepreneur must be in the driver's seat of his business. You cannot trust your
business to somebody who does not own the ideals and aspirations of the enterprise. Be
in control of the operation as you develop people with whom you can work with
dedication and with values the same as yours. Invest your time with people who are
achievers and do not lose your valuable time with losers.

Motivate people to excel and make their desire burning for success with their
accomplishments. Make them partners in decision-making and develop their ego
needs for proper recognition. People are the assets that can help you propel success in
your business. Think that improving efficiency and effectiveness will create more space
for growth and development.

4. Have a good accountant or a trusted financial adviser.

While you, as an entrepreneur and busy with the management of the business, a good
accountant or financial adviser is needed to help you out in the financial activities of
the enterprise. They can help you re-invest your money in other profitable operations.

While trust and confidence can be given, you must also have knowledge of the entry in
financial statements. Develop control procedures that you are still in command in
approving transactions involving money and its disbursements. While you economize
your expenditure, be sure that every peso is spent wisely without sacrificing quality in
products or service.

5. Seek the advice of professionals.

You are not a superman to know all the legal and other matters related to the
operation of the enterprise. Seck the services of a legal consultant on matters with legal
implications. Have your income tax prepared by good accountant lawyers or certified
accountants that know how to deal with government regulating bodies in terms of tax
payments.

All legal matters and intricate government transactions must be entrusted to people
with the right connection and know how to deal with the business problem as the
government as a regulating body, may affect the business operation especially in the
period of expansion.
ENTREPRENEURIAL MANAGEMENT DEMANDS

Many successful entrepreneurs in the Philippines and those in foreign countries are not
making it known schools of management. Most entrepreneurs came from scratch and
have acquired managerial expertise in making business empires through shared hard
work and dedication. They possess the characteristics and intelligence to make things
happen rather than wait for things to happen.

While schooling and learning management could guide the making of a successful
entrepreneur, the individual talent and intelligence coupled with strategies akin to
other people are totally inherent to the entrepreneur.

The demands for entrepreneurial success are common in most successful businessmen.

1. The entrepreneur is alert to opportunities and perceptive to make things happen.

The entrepreneur looks at things much ahead of other people. He sees things in a
different way and develops strategies to make things happen the way he perceived it
to be. An entrepreneur is a starter but makes sure that what he started, he pursues until
he succeeds in making it happen.

2. The entrepreneur has the health and endurance to work long hours.

The dreamer entrepreneur could not stop working until he finds solutions to his
perceived idea. He spends 75 percent of his 24-hour time thinking and working gets to
the realization of his dream. He is willing to sacrifice personal pleasure quest for the true
meaning of his ideal set up of the business enterprise.

3. Entrepreneur of flexibility and change.

The entrepreneur does not have a one-track mind. He finds a new avenue or course of
action as he senses some danger zone with his plans and program. He makes easy
revision but he makes sure that the track on hand is still towards the direction he wants
to achieve. He crafts new alternatives solutions and devises ways to make a difference

4. The entrepreneur is self-assured.

The entrepreneur could not easily be rattled by problems or uncertainties. He has great
trust in his capability to develop new things. His intelligence and self-confidence are
always at a high level. He is guided also by his faith in God that his good intentions and
actions deserve to be fulfilled.
5. The entrepreneur seeks others' opinions or makes researches.

He believes that a person who asks questions could only be a fool for a minute but one
who asks no question could be a fool for a lifetime. He seeks the advice of other
professionals that will help make things happen. He indulges in research activities to find
new solutions.

PROFILE OF A SUCCESSFUL ENTREPRENEUR

Successful people in the field of business are creators of things with differences. They
are no ordinary Juan Dela Cruz who we can be seen around the corner. They are
people with great ambition and are alert to the environment that they can explore
toward a successful venture. They possess an eagle's eye that can see and dive
hundreds of feet down and make catch the prey of opportunities.

Most successful entrepreneurs are described to possess the following profiles:

1. The entrepreneur has a strong desire for independence.

An entrepreneur would not like to be attached to his employment. He seeks

independence and strives to develop his own business. As he acquires new insights and
opportunities, he would seek that sense of independence. He thinks differently and
would venture in trying to satisfy his own curiosity. He assumes responsibility with pride
and determination.

2. The entrepreneur develops a strong drive to succeed.

Success is for people with the profound need to achieve their dreams and life
aspiration. Achievements are the ego of people with the inner desire for
independence. He does not depend on others as he thinks that his success lies in his
own making. He is a good organizer and leads others to a successful venture. He
finishes things he started and leaves no stone unturned to get his way.

3. The entrepreneur has strong determination in decision-making.

The strong personality of the entrepreneur carries with it the power to make decisions.
He is aware of developing new markets and creates new things to satisfy customers'
needs and wants. He capitalizes on his inner drive to make a profit before anyone else
could take that opportunity. Innovativeness and creativity go with the power to make
decisions.
4. The entrepreneur develops a feedback mechanism for results.

The development of a feedback mechanism is one important factor in the

development of successful business entrepreneurs. He goes back to where he starts
and finds out things the way they are. He believes that one who does not look back
cannot go miles away from his starting point. Feedbacks are a factor for analysis and
decision-making. He needs data and figures to make wise decisions.

5. The entrepreneur is a result-driven individual.

Profit is the result of accomplishment. His achievements are the driving forces that keep
him awake for more opportunities. He expects results for activities he planned.
Employees with mediocre abilities and a low sense of feeling for accomplishment have
no place in their organization. He expects results to be on time and with the highest
quality. He is impatient for poor performance and expects quality output.