SAN ISIDRO COLLEGE

City of Malaybalay
Tel No. 088-813-5541
Website: sic.edu.ph
Webmail: info@sic.edu.ph

OAC106 Entrepreneurial Characteristics and Competencies Mr. Jiemarie D. Paderes

(Course Code) (Course Tittle) (Name of Instructor)

I. Learning Module 1 What is Entrepreneurship

(Topic)

II. Introduction
Greetings! Good morning, everyone! Praised be Jesus and Mary! Welcome to module. You
will find here our general instructional guidelines, then the components of our module. You
will be guided one step at a time through the specific instructions of the learning tasks given
below, which intend you to understand an entrepreneurship. Let joy and peace abound in your
mind and heart as you genuinely and responsibly respond to the learning processes that this
module offers

III. Intended Learning Outcomes (ILOs)

1. Discuss the theories of entrepreneurship
2. Differentiate the types of entrepreneurial ventures
3. Identify who is an entrepreneur,
4. Apply the value to oneself and the society;
5. Elaborate the different profile of a successful entrepreneur, and
6. Explain the role of ethical standard for entrepreneur.

IV. Stimulating Recall

1. What is an entrepreneur?

2. what are the entrepreneur do?

V. Presentation of the topic/learning material

What is Entrepreneurship
a) What is Entrepreneurship
b) Profile of a successful Entrepreneur
c) The Foundation of Entrepreneurial Ethics
d) The Role Ethical Standard for Entrepreneur
e) Good Business Ethics
f) The Starting Point to Entrepreneurial Success
 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.
According to Dontigney (2018), an entrepreneur puts together a business and accepts
the associated risk to make a profit. These are the theories of entrepreneurship:

1. Theory is Economic Entrepreneurship dates back to the first half of the 1700s
with the work of Richard Cantillon, who introduced the idea of entrepreneurs as
risk takers. The classic, neoclassical and Austrian Market process schools of
thought all pose explanations for entrepreneurship that focus, for the most part,
on economic conditions and the opportunities they create.

2. Theory is Resource-based focuses on the way individuals leverage different

types of resources to get entrepreneurial efforts off the ground. Access to
improves the chances of getting a new venture off the ground, but entrepreneur
often start ventures with little ready capital.

3. Psychological Theories of Entrepreneurship describe on the individual and

the mental or emotional elements that drive entrepreneurial individuals
theory puts forward by psychologist David McClelland, a Harvard emeritus
professor, offers that entrepreneur possess a need for achievement that drives
their activity, Julian Rotter, professor emeritus at the University of Connecticut
put forward a Locus of Control Theory.

4. The Sociological Theory centers its explanation for entrepreneurship on the

various social contexts that enable the opportunities entrepreneurs' leverage.
Taal D Reynolds, a George Washington University research professor, singles
out four such contexts: social networks, a desire for a meaningful life, ethnic
idenfication and social-political environment factors.

5. Anthropological Entrepreneurship Theory - The theory is derived from the

description on Anthropology as the study if the egon development, customs, and
beliefs of a community. In other words. the culture of the people in the
community. The anthropological theory says that for someone to successful
initiate a venture the social and cultural contexts should be examined or
considered.

6. Opportunity-Based Entrepreneurship Theory - Entrepreneurs do not cause

change (as claimed by the Schumpeterian or Austrian school) but exploit the
opportunities that change (in technology, consumer preferences etc.) creates
(Drucker, 1985). He further says, "This defines entrepreneur and
entrepreneurship, the entrepreneur always searches for change, responds to it,
and exploits it as an opportunity".
7. Resource-Based Entrepreneurship Theories

The Resource-Based Theory of Entrepreneurship argues that access to

resources by founders is an important predictor of opportunity based
entrepreneurship and new venture growth (Alvarez & Busenitz, 2001). This
theory stresses the importance of financial, social and human resources (Aldrich
1999). Thus, access to resources enhances the individual's ability to detect and
act upon discovered opportunities (Davidson & Honing, 2003). Financial, social
and human capital represents three classes of theories under the resource-
based entrepreneurship theories.

8. Financial Capital/Liquidity Theory

Empirical research has showed that the founding of new firms is more common
when people have access to financial capital (Blanchflower et al, 2001, Evans &
Jovanovic, 1989, and Holtz-Eakin et al, 1994). This theory suggests that people
with financial capital are more able to acquire resources to effectively
repreneurial opportunities, and set up a firm to do so (Clausen, 2006) exploit
eher studies contest this theory as it is demonstrated that most However
founders start new ventures without much capital, and that financial capital is not
significantly related to the probability of being nascent entrepreneurs (Aldrich,
1999, Kim, Aldrich & Keister, 2003, Hurst & Lusardi, 2004, Davidson & Honing,
2003).

9. Social Capital or Social Network Theory

Entrepreneurs are embedded in a larger social network structure that constitutes

a significant proportion of their opportunity structure (Clausen, 2006). Shane and
Eckhardt (2003) says "an individual may have the ability to recognize that a given
entrepreneurial opportunity exist, but might lack the social connections to
transform the opportunity into a business start-up. It is thought that access to a
larger social network might help overcome this problem" in a similar vein,
Reynolds (1991) mentioned social network in his four stages in the sociological
theory.

10. Human Capital Entrepreneurship Theory underlies two factors: education and
experience (Becker, 1975). The knowledge gained from education and
experience represents a resource that is heterogeneously distributed across
individuals and in effect central to understanding differences in opportunity
identification and exploitation (Anderson & Miller, 2003, Chandler & Hanks, 1998,
Gartner et al, 2005, Shane & Venkataraman, 2000).

11. Cultural Entrepreneurship Theory argues that propensity for an individual to start
a venture is largely influenced by the prevailing culture (Simpeh, 2011;Gichana,
2011). Herrington, Kew and Kew (2010) contend that entrepreneurship can
reveal the latent potential of the South African economy.

12. Regional Entrepreneurship is enhanced by training and education interventions

so that there is a growing acceptance that components of entrepreneurship can
be delivered and learned. The entrepreneurial culture is key to motivating young
people to take up business-related programs in middle-level tertiary colleges
(Herrington et al., 2010) and primarily consists of training through hands-on skills
 (Simpeh, 2011). Cultural practices lead to entrepreneurial attitudes such as
innovations that also lead to venture creation behavior (Gichana, 2011)

13. The Opportunity-Based Theory pioneered by the prolific businessment author,

professor and corporate consultant, Peter Drucker put forward an Opportunity-
Based Theory. Drucker contends that entrepreneurs excel at seeing and taking
advantage of possibilities created by social, technological and cultural changes.
For example, where a business that caters to senior citizens might view a sudden
influx of younger residents to a neighborhood as a potential death stroke, an
entrepreneur might see it as a chance to open a new club

PROFILE OF A SUCCESSFUL ENTREPRENEUR

Successful people in the field of business are creators of things with difference.
They are no ordinary Juan dela Cruz who can be seen around the corner. They
are people with great ambition and are alert to the environment that they can
explore towards successful venture. They possess eagle's eyes 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 strong desire for independence

2. The entrepreneur develops strong drive to succeed.
3. The entrepreneur has strong determination in decision making.
4. The entrepreneur develops feedback mechanism for results.
5. The entrepreneur is a result-driven individual.
THE FOUNDATION OF ENTREPRENEURIAL ETHICS

The entrepreneur must seek to know through education and religious practices to
understand ethics as it relates to business practices that extract essential from
several theories past and present. They must seek to combine such theories and
practices into a practical code of social behavior.

An entrepreneur should possess the following characteristics in dealing with this

various stakeholder.

1. Conscience
2. Justice
3. Wisdom.
4. Courage-
5. Temperance

THE ROLE ETHICAL STANDARD FOR ENTREPRENEUR

Entrepreneurs play a great role in economic development. They mold the

economic institution in a free enterprise. They emphasize in their mission and
vision to serve the interest of the society with the supply of abundant goods and
services that would satisfy their needs and wants.
 Good ethical standards are the functions of company executives and they
perform the following:

1. Foster the development of social interest and goodwill in the business of

operation;
2. Determine the business courses of action that will safeguard their existence in
the industry;
3. Create an atmosphere that will insure mutual trust and confidence between
management and its various stakeholders, and
4. Develop mechanism that will give equal opportunities for all without favoritism.

GOOD BUSINESS ETHICS

The entrepreneur, in his sensible mind, would like to practice ethical standard
among his employees, the customer and the general public that depend on his
services and goods. Free economic activity cannot grow and prosper without the
practice of ethical standards and morality in the operation of the enterprise

In the pursuits of such objectives the entrepreneur has to develop ethical

standards in dealing with the following:

1. The Employees

The relation between management and the employee is a personal relationship.

The relationship is governed by the golden rule of "Do unto others as

2. The Customers.

The forging of better relationship between the business organization and the
customer is the essential requisite of ethical standards and morality. Customers
like employees are the very "hen that lays the golden eggs" that brings profit to
the organization. Products and service must satisfy the needs and wants of the
customers, that without them, management cannot be in business.

3. The Community

The business enterprise is located in a particular area of operation. They

distribute goods or render service to the community. The first concern of the
entrepreneur is to secure the protection of the environment against pollution and
the development of a social ecosystem.

4. The Government

Business operation generates profits. Profits are subject to taxes in order to

support the operational services of the government in providing better
maintenance of roads, health condition of the people and services for the
education of the community.

5. The Competitors

Unfair business operation is always considered a critical point of discussion in

the world of business. It is considered in the circle of industries as downright
 immoral and unethical. It is immoral to downplay the products of the other
company and spreading rumors or gossips of unfounded validity.
THE STARTING POINT TO ENTREPRENEURIAL SUCCESS

1. Start to be on your own

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 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.

3. Be in control

An entrepreneur must be in the driver seat of his business. You cannot trust your
business to somebody who does not own the ideals and aspiration of the
enterprise. Be in control of the operation as you develop people 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.

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 to other
profitable operation.

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. Seek 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 body in terms of tax payments.
VI. Assessment Tasks

Essay:

1. Discuss the theories of entrepreneurship.

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2. Elaborate the different profiles of a successful entrepreneur.

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3. Explain the role of ethical standard for entrepreneurs.

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Rubric for essay: /10

Identification of main issues or topics /1
Analysis /5
Solutions/ Answer to questions /2
Readings and Research /1
Spelling and grammar /1

VII. Other reading materials or sources

Messenger
Google Classroom
Google Meet
PowerPoint Presentation