Unit 1: Understanding the Concept of 
Entrepreneurship 
Lesson 2: Core Competencies in 
Entrepreneurship 
 
 
Contents 
Engage 1 
Introduction 1 
Objective 1 

Explore 2 

Explain and Elaborate 3 

Core Competencies in Entrepreneurship 3 
Factors that Develop Entrepreneurial Activity 4 
The Making of a Filipino Entrepreneur 7 

Extend 8 
Activity 8 

Evaluate 9 

Wrap Up 11 

Bibliography 12 
 
 
 
 
 
 
 
 
 

 
  
Unit 1.2: Core Competencies in Entrepreneurship 
 

Engage   
 

  Introduction 

 
Fig 1. Businessman 
Have  you  ever  wondered  why  some  businesses  survive  even  with  the  stiff  competition? 
What  should  be  the  characteristics  of  entrepreneurs  in  order  to  sustain  the  profitability  of 
their business? How do companies determine their core competency?  
 

  Objective  
In this lesson, you should be able to explain the core competencies in entrepreneurship.  
 
DepEd Competency 
Explain  the  core  competencies  in  entrepreneurship.  ​(additional  lesson  for 
review/enrichment) 

 
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Unit 1.2: Core Competencies in Entrepreneurship 
 

Explore   
 

       10 minutes 
Guide Questions 
Answer the following questions.  
 
1. W
​ hat is your favorite restaurant? Explain why you like their products and services.  

 
 
2. Do  you  think  its  products  and  services  have  an  advantage  versus  other  competitors? 
Explain your answer. 

 
 

 
3. Why  do  you  think  this  business  has  been  able  to  sustain  itself  and  the  customers  keep 
on patronizing their products and services? 

 
 
 
 
 

 
 

 
 
 

 
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Unit 1.2: Core Competencies in Entrepreneurship 
 

Explain and Elaborate   

 
Core Competencies in Entrepreneurship 
Core  competencies  are  the  features  or  characteristics  that  allows  a  business  to  stand  out 
from  its  competitors.  These  competencies  cover  the  business’  manpower  capabilities, 
acquired  assets,  capital,  and  registered  patents.  It  is  very  similar  to  the  strengths  of  a 
business.  
 
The  concept  of  core  competencies  was  developed  by  C.K  Prahalad  and  Gary  Hamel.  They 
revealed the three general conditions that a business activity must meet:  
1. The activity must provide superior value or benefits to the consumer. 
2. It should be difficult for a competitor to replicate. 
3. It should be rare.  
 

​ ​Tip 
A  core  competence  is  something  unique  that  a  business  has  or  can 
do strategically well.  

 
Core Competencies of Entrepreneur 
An  entrepreneur  must  be  equipped  with  the  following  core  competencies  so  that  his 
planned  business  will  really  stand  out  among  other  competitors.  Take  a  look  at  the 
competencies  below  and  always  keep  them  in  mind  to  serve  as  a  guide  in  your 
entrepreneurial journey. 
 
Table 1. Core competencies of entrepreneur 

Core Competencies  Description 

Entrepreneur as a  The  entrepreneur  considers  the  business  as  a  mission.  For 

missionary  these people, there is a passion rather than drive.  

 
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Unit 1.2: Core Competencies in Entrepreneurship 
 

Core Competencies  Description 

Entrepreneurs are  Goal-oriented  entrepreneurs  achieve  the  maximum  results 

goal-driven  of  their  efforts  because  they  work  towards  clear  and 
measurable targets. Working towards clearly defined goals is 
important. They think of what they want and how to get it.  

Entrepreneur as a  Marketing  is  an  important  process  for  entrepreneurs.  The 

marketing man  process  of  acquiring  and  retaining  customers  is  the focus of 
marketing.  Entrepreneurs  must  design  the  product,  set  its 
price,  distribute  the  product  to  the  market  and promote the 
product.  Entrepreneurs  must  differentiate  their  company’s 
product  or  service  so  its  uniqueness  and  value  are  clear  to 
the customer. 

Entrepreneurs start  Most  successful  entrepreneurs  start  small  and  think  big. 
small to big  Many  entrepreneurs  start  a  small  scale  business  but  with 
their  managerial  talents  and  persistence, they will be able to 
make the company grows.  

How  will  you  develop  your  entrepreneurial 

  abilities?  
 
Factors that Develop Entrepreneurial Activity 
There  are  several  factors  that  contribute  to  the  development  of  entrepreneurial  activity. 
Entrepreneurs  always  bear  in  mind  these  things  and  utilize  them  as  needed  to  gear  their 
businesses towards success. 
 
 
 
 
 

 
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Unit 1.2: Core Competencies in Entrepreneurship 
 
Table 2. Factors that develop entrepreneurial activity 

Developing Factors  Description 

Entrepreneur’s initiative  With  the  interest  in  the  opportunity  at hand, the entrepreneur 

takes  the  initiative  of  venturing  into  the  business.  It  is  the 
ability  of  entrepreneurs  to  convert  ideas  into  actions.  It  also 
includes  the ability to plan and manage projects with creativity, 
innovation, and risk-taking in order to achieve goals. 

Organization of capital  Human  resources  and  financials  are  important in starting up a 

resources  business.  With  the  entrepreneur’s  savings  and  other 
resources,  he  will  start  the  operation  of  his  business.  He  may 
ask  his  trusted  family  members  or  friends  that  could help him 
start his dream business.  

Development of  The  management  will  develop  a  structure  based  on  the  need 
administrative machinery  for  operations.  Duties  and  responsibilities  are  assigned  to 
individuals  with  skills  that  will  fit  to  their  position  and 
qualifications.  It  is  based  on  their  capacity  to  do  the  job  and 
not on personal connections with the entrepreneur.  

Development of  The  entrepreneur  develops  autonomy  as  he  leads  all  the 
entrepreneurial autonomy  activities  in  the  business  organization.  He  knows  the  best 
direction  because  he  also  knows  how  to  calculate  the  risk 
involved.  

Development of SWOT  In  SWOT  analysis,  strengths  and  weaknesses  are  internal 
analysis  elements  in  the  business  while  opportunities  and  threats  are 
external  elements.  ​Strengths  are  the  things that the company 
does  well.  ​Weaknesses  are  the  things that the company lacks. 
Opportunities  are  factors/events  in  the  environment  of  the 
business  which  are  favorable  for  its  growth  and  success. 
Threats  are  the  elements  that could endanger the profitability 
of the business.  

 
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Unit 1.2: Core Competencies in Entrepreneurship 
 
 

​ emember 
R
SWOT  (Strengths,  Weaknesses,  Opportunities,  and  Threats)  is  a  tool  used  in 
evaluating  a  business.  Entrepreneurs  should  know  how  to  analyze  their 
business using this tool.  

 
Example 
 
Evaluating the Business using SWOT Analysis 
A  young  entrepreneur,  who  has  a  business  offering  milk tea, wants to evaluate his business 
in  order  to  know  the  challenges  encountered  and  identify  new  markets.  He  comes  up  with 
the following answers:  
 

Internal Elements  Answers 

Strengths  ● unique taste 

● quality ingredients 
● friendly staff 

Weaknesses  ● low profits 

● no business website 
● competitors has more offerings 

External Elements  Answer 

Opportunities  ● market boom 

● expansion of branches 
● can implement a loyalty program 

Threats  ● rising cost of ingredients 

● negative reviews 
● increasing number of 
competitors 

 
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Unit 1.2: Core Competencies in Entrepreneurship 
 
 
The Making of a Filipino Entrepreneur 
 
The  making  of  a  Filipino  entrepreneur  is  like a process of trial and error. Most Filipinos start 
a  business  when  they  see  that  other  businesses  are  profitable.  For  example,  Maria  starts  a 
grocery  store  and  here  comes  another  individual  who  also opens a grocery store. However, 
some entrepreneurs start their businesses with innovative ideas.  
 
According  to  Chinese  philosopher  Lao  Tzu,  “  The  journey  of  a thousand miles, begins with a 
single  step”.  All  growth  starts  from  the  beginning.  The  same  applies  to  the  world  of 
business.  There  are  a  lot  of  entrepreneurs  who  start  their  business  from a small enterprise 
into a big company. 
 
Example 
The Case of Jollibee Foods Corporation 
 
Tony  Tan  Caktiong  used  to  have  a  dessert  parlor,  before  changing  it  into  a  fast-food  chain 
called  Jollibee.  With  a  beginning  capital  of  P350,000,  the  youthful  Caktiong  opened  two 
branches  in  Cubao  and  Quiapo,  together  with  companions  who  believed  in  this  vision  in 
business. 
 
Caktiong  chose  to  serve  cheeseburgers,  chicken,  and  spaghetti  to  clients  when  they  began 
looking  past  the  standard  dessert.  In  the  end,  the  business  developed,  and  he  needed  to 
enlist  more  crew.  By  knowing  the  Filipino  market,  Jollibee  figured  out  how  to  exceed 
expectations as an inexpensive food household name. 
 

​ emember 
R
All  growth  starts  from  the  beginning.  The  same  applies  to  the  world  of 
business.  There  are  a  lot  of  entrepreneurs  who  start  their  business  from  a 
small enterprise into a big company. 

 
 
 
 
 
 
 
 
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Unit 1.2: Core Competencies in Entrepreneurship 
 

Extend   
 

Activity 
Answer  the  following  question  based  on  the  story  of  Tony  Tan  Caktiong,  the  owner  of  the 
famous fast-food chain in the Philippines.  
 
1.  What  do  you  think  are  the  characteristics  of  the  owner  that  have  contributed  to  the 
success of the business?  

 
2. What are the core competencies of Tony Tan Caktiong’s business today?  

 
3.  “A  journey  of  a  thousand  miles  begins  with  a  single  step”.  Explain  your  point  of  view  on 
the saying.  

 
 

​ uide 
G
● Read the situations carefully.  
● Answer only what is asked for every item.  
● Avoid overlapping answers to several questions/ items. 

 
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Unit 1.2: Core Competencies in Entrepreneurship 
 
 

Evaluate   
 

A. Explain the meaning of the following statements.​  

 
1. Entrepreneur as a missionary.  

 
2. Entrepreneur as a marketing man.  

 
3. Entrepreneurs are goal-driven.  

 
4. Entrepreneurs start from small to big.  

 
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Unit 1.2: Core Competencies in Entrepreneurship 
 
 
5. Organization of capital resources. 

 
 
B. Answer  the  following  in  pairs  or  groups.  You  may  conduct  a  quick 
research to help you answer the questions below. 
 
1. Why do core competencies matter to every business and entrepreneur? 
 

 
2. How do entrepreneurs determine the core competency of their business?  
 

 
 
 
 
 
 
 
 

 
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Unit 1.2: Core Competencies in Entrepreneurship 
 
3. Why are entrepreneurial competencies considered as entrepreneurial distinctive?  
 

 
 

Wrap Up 
___________________________________________________________________________________________ 
 
● Core  competencies  are  the  defining  characteristics  that  make  a  business  or  an 
individual stand out from the competition. 
● A  ​core  competence  is  something  unique  that  a  business  has  or  can  do 
strategically well.  
● An  entrepreneur  must  be  equipped  with  the  following core competencies so that his 
planned business will really stand out among other competitors. 

 
________________________________________________________________________________________ 
 
 
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Unit 1.2: Core Competencies in Entrepreneurship 
 
 

  Bibliography 
“Are you an entrepreneurial missionary or mercenary?” Edology. Accessed from March 8,  
2020. 
https://www.edology.com/blog/business/entrepreneur-missionary-or-mercenary/​. 
 
“Eight successful Filipino entrepreneurs who started small.” Business Inquirer. Accessed  
from March 8, 2020. 
https://business.inquirer.net/273445/eight-successful-filipino-entrepreneurs-who-s
tarted-small​. 
 
Kotler, Philip & Gordon McDougall. ​Marketing Essentials​. Prentice-Hall Canada Inc., 1985. 
 
Peters, Michael & Robert Hisrich. ​Entrepreneurship 4th Edition​. McGraw-Hill Book Co., 1999. 
 
 
 
 
 

 
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