MODULE 1: LESSON 1- 3:

Learning Objectives:

At the end of the lesson; students should be able to do the following

1. Explain the importance of Entrpreneurship in the society;

2. Distinguish between the terms entrepreneurial traits, qualitis, and functions, and
3. Explain the basic charactiristics of Entrepreneurs, and describe different kinds of
entrepreneurship.

Subject includes

1. Entreprenuerial Leadership in an Organization

 Top 12 Successful Entrepreneurs in the Philippines
 Top 1 Social Entrepreneur in the Philippines
 Definition and Concept of Entrepreneurship and Entrepreneur
 Characteristics of an Entrepreneur
2. Entrepreneurial Traits, Qualities and Functions
 Entrepreneurship Traits
 Qualities of an Enrepreneur
 Types of Entrepreneur
 Entrepreneur and Manager Relationship
3. Role and Importance of Entrepreneur in Economic Growth
 Economic Development due to Entrepreneurship
 The Entrepreneur’s Task
 The Ethical and Social Responsibilities of Entrepreneur
 The Entrepreneurial Personality
 What Motivate People to Become Entrepreneurs
 Entrepreneurs and Managers Distinguished

Module Requirements, Submission, Instructions

All activities must be submitted either in the internet via gclassroom or in school.

Means of Support. Students may contact Ma’am Anne A. Tablizo for assistance and guidance
thru: messenger (“anne”) or my email account.

After reading this lesson, you sould be able to understand and articulate

ENTREPRENEURIAL LEADERSHIP IN AN ORGANIZATION

DEFINITON AND CONCEPT OF ENTREPRENEURSHIP

Entrepreneurship is considered to be vital component in the process of economic

growth and development for various reasons. It is a mechanism by which society converts
technological information into products and services.

The word “ entrepreneur” was derived from the French verb enterprendre, which means “to
undertake”. This is pinpointing to those who “undertake” the risk of enterprise. The
enterprise is created by an entrepreneur and the process is called “Entrepreneurship”.

Entrepreneurs are innovators, willing to take risks and generate new ideas to make it unique
and profitable solutions to the present-day problems. Are the creators and builders of new
ventures that not only fulfill their own dreams but also make a strong impact on the society
and improve the lives of people.

The Essentials of Entrepreneurship emphazised that and entrepreneur is not an innovation

but an organization builder or one who has the skill to build an organization. Peter F. Drucker
stressed that the entrepreneur as one who always searches for change, responds to it and
exploits it as an opportunity. INNOVATION is the specific tool of entrepreneurs by which they
exploit change as an opportunity for a different business or service.

COMMON COMPETENCIES IN ENTREPRENEURSHIP

1. Decisive – an entrepreneur must be firm in making decisions.

2. Communicator – an entrepreneur must have a convincing power.
3. Leader – an entrepreneur must have the charisma to be obeyed by his employees.
4. Opportunity Seeker – an entrepreneur must have the ability to be the first to see
business chances.
5. Proactive – controlling a situation by making things to happen or by preparing for
possible chances.
6. Risk Taker – they have the courage to pursue their business ideas.
7. Innovative – the entrepreneurs have big business ideas and they do not stop
improving and thinking of new worthwhile ideas for their business.

CORE COMPETENCIES IN ENTREPRENEURSHIP

1. Economic and Dynamic Activity – Entrepreneurship is an economic activity because

it involves the creation and operation of an enterprise with a view to creating value
or wealth by ensuring optimum utilization of limited resources.
2. Innovative – Entrepreneurs constantly look for new ideas, thus he needs to be
creative.
3. Profit Potential – The Entrepreneur can be compensated by his profit coming from
the operation.
4. Risk Bearing – The Entrepreneur needs to gamble but wise enough to offset the risk.

TYPES OF ENTREPRENEURS

1. Innovative Entrepreneurs – they are those who always make new things by thinking
new ideas. They have the ability to think newer, better and more economical ideas.
2. Imitating Entrepreneurs – they are those who don’t create new things but only
follow the ideas of other entrepreneurs.
3. Fabian Entrepreneurs – they are skeptical about changes to be made in the
organization. They don’t initiate but follow only after they are satisfied.
4. Drone Entrepreneurs – they are those who lives on the labor of others. They are
die-hard conservatives even ready to suffer the loss of business.
5. Social Entrepreneurs – they are those who initiate changes and drive social
innovation and transformation in the various fields such as education, health, human
rights, environmental and enterprise development.
SUCCESSFUL ENTREPRENEURS IN THE PHILIPPINES

1. Manuel “Manny” Villar is a Filipino Billionaire business with a net worth of $ 1.65B.
Villar is the chairman of STARMALLS and VISTA LAND AND LANDSCAPES.
2. Lucio and Susan CO. has a net worth of $1.8B. They are the owners of PURECOLD
Price club store. The family has interest in gaming, hotels and wine distribution.
Lucio is the group’s chairman, Susan serves as the vice chairman, while their son
Vincent serves as the President.
3. Ramon Ang is the President and Vice Chairman of one of the nation’s oldest
conglomerates,SAN MIGUEL with a net worth of $2.3B. He also owns a hotel with
200 acres of prime real estate. Ang started out by fixing and selling used Japanese
car and truck engines later with Eduardo Cojuangco, now a billionaire, he sold
aluminum wheels.
4. Andre Tan is a Ch9nes-Filipino Billionaire with business interest in liquor, fast food,
and real estate. He is one of the top riches Filipinos according to Forbes with a net
worth of $2.5 B. Tan runs the Alliance Global Group Inc. (AGI) composed of
companies: Megaworld Corporation, EMPERADOR Distillers, Inc. and Golden
Arches Development Corporation that operate MCDONALD’s FRANCHISES.
5. Tony Tan Caktiong is the man behind the country’s famous bee. He is a Chines-
Filipino Businessman and the founder of Filipino Fast Food Chain JOLLIBEE with a net
worth of $3.4 B. Caktiong founded Jollibee in 19789 after having started it as an ice
cream parlor in 1975.
6. George TY is a Filipino banker and businessman with a net worth of $3.6B. He is the
founder of Metropolitan Bank and Trust Company (MBTC). He was also the owner of
the G.T. International Tower in Makati, as well as the owner of hotels under GRAND
HYATT and MARCO POLO Brands.
7. David Cosunji was born to a middle class family in Hermos Bataan. Consunji is the
founder of DMCI Holding, Inc with a net worth of $3.68B. He started his
construction business as nothing more than a small contructor in q954. He was a
former secretary of Department of Public Works’ Transportation from 1970-1975
during the Marcos Administration. He also has stakes in the country’s largest coal
miner, listed subsidiary, SEMIRARA MINING.
8. Jaime Augustus Zobel de Ayala is the Chairman and Chief Executive Office (CEO) of
Ayal Corporation with a net worth of $3.7B. He succeeded his father as the
company’s President and CEO in 1994. Zobel is also the chairman of GLOBE
Telecom, BANK OF THE PHILIPPINE ISLANDS (BPI) and Integrated Micro-electronics
Inc. (IMI). He also serves as Co-Vice Chairman of Mermac, Inc.
9. Lucio Tan was one the longest running riches man in the Philippines not until his
great rival Henry Sy took over the throne. Tan is a Chines-Filipino billionaire with a
net worth of $4.2B. He has interest in airline, banking, tobacco, liquor, real estate
industries and education. In 1966 Tan started his own cigarette company named
Fortune Tobacco. He also established and put up Asia Brewery in 1982. Now a
subsidiary of LT Group, the brewery was the only one then to compete with the
market leader San Miguel. Also in 1993, Tan secure control of the country’s airline
carrier PHILIPPINE AIRLINES (PAL).
10. Enrique Razon Jr. is a Filipino billionaire with a net worth of $4.3B. Razon is also
known as “Ports King”, since his knowledge on how to control of where to put a port
is used him as a key to becoming one of the country’s richest business tycoons. His
 investments came from their family business, the International Container Terminal
Servies (ICTSI), which is the largest port operator in the Philippines. Razon serves as
the Executive Chairman and Chief Executive Officer of Bloomberry Resorts
Corporation. He is also the Chief Executive Officer and President of INTERNATIONAL
CONTAINER TERMINAL SERVICES, INC.
11. John Gokongwei is the second richest Businessman in the Philippines with a net
worth of $5.5B. He was born in China to a Filipino-Chinese father who was a scion of
a wealth Cebu-based family. Unfortunately, at the age of 15 he had to work to
provide for his family since they became flat broke. He sold roasted peanuts and
opened up a small stall in the market. He even sold soap, candles, and threads to
earn money. Fortunately, with is determination, JG Summit Holdings, Universal
Robina Corporation, Robinsons Corporation, and CEBU PACIFIC are all Gokongwei’s
fruits of labor.
12. Henry Sy has a net worth of $18B. HE is a Chinese-Filipino businessman and the
founder of SM PRIME HOLDINGS. In 1958, Sy opened the first Shoe Mart store and
has since evolved into a dynamic group of companies with five lines of business-
shopping malls, real estate development and tourism, retail, financial service, hotels
and conventions. Forbes Magazine listed him as one of the richest man in the
Philippines for ten years in a row.

TOP 1 SUCCESSFUL SOCIAL ENTREPRENEUR IN THE PHILIPPINES

JAIME ARISTOTLE B. ALIP is a Social Entrepreneur and the Founder and Managing
Director of the CARD MUTUALLY REINFORCING INSTITUTIONS, a group of companies
composed of a foundation, a bank, a microinsurance, a development institute, and a
business development service. The companies were established to empower poor
women on the countryside, to help alleviate poverty in the Philippines. CARD is the
largest microfinance institute in the Philippines. Alip has won several awards for his
work, such as the prestigious Ramon Magsaysay award in 2008 for public service.

CHARACTERISTICS OF AN ENTREPRENEUR

1. Vision. An entrepreneur has a dream and he visualizes the ways and means to
achieve dream.
2. Confident. It is a hallmark of the entrepreneur. Many gain their sense of self-esteem
and faith in their ability to face challenges and by seeing the results and gaining the
praise and respect of others.
3. Feels a Sense of Ownership. Uses individual accountability in the ultimate pursuit of
profitability, teamwork, and overall success.
4. Able to Communicate. Communication is the key to successful relationships with
people. The entrepreneur develops a keen ability to listen and hear what others are
trying to say, because the best communications got that way by first being the best
listener.
5. Team Player. By employing the physical of interpersonal synergy and dynamic
relationships. One twig can be easily snapped, but a bundle of those small twigs
becomes stronger than the sum of its individual parts and can be impossible to bend,
much less break.
 6. System -Oriented. Good systems allow us to reproduce great results every time with
less and less exertion of energy or resources. Designing, implementing, and
perfecting systems is one of the most useful and rewarding skills of an entrepreneur.
7. Dedicated. Entrepreneurs dedicate themselves to the fulfillment of their plans,
visions and dreams and that tenacity of purpose generates electricity throughout the
whole organization.
8. Grateful. Being grateful for what the entrepreneurs have opens us up to receive
more, and one reason that is true is because those who are grateful appreciate what
they are given.
9. Optimistic. A positive outlook is essential for the entrepreneur, who learns to see
setbacks as bargain priced tuition for the valuable business lessons gained through
firsthand experience.
10. Knowledge. An entrepreneur has full knowledge about all the technicalities of his
business be it technological, operational, financial or market dynamic.
11. Desire to Succeed. An entrepreneur has a strong desire to succeed in life. Their
dreams are not just limited to achieving one single gaoal but they constantly work to
achieve higher goals.
12. Passion for the Business. It is where the entrepreneur’s belief that the business will
positively influence people’s lives. For social entrepreneur’s passion is what drives
them to bring about the change that they so desire in the environment of social
aspect.
13. Money Management. Entrepreneurs has a strong desire to succedd in life. Their
dreams are not just limited to achieving one single goal but they constantly work to
achieve higher goals.
14. Creative Thinking. This ability allows entrepreneurs to view resources in a
completely different aspect than normal individuals.
15. Positive Mental Attitude. No successful entrepreneur without a positive attitude. If
maintain confidence persevere and continue to stay positive, we will be successful; if
allow doubt and uncertainty to prevail will probably fail.

RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION

1. Development of Managerial capabilities – this means that one of the benefits an

entrepreneur gets is to develop his managerial skills.
2. Creation of Organizations – which means that because of entrepreneurships many
organizations will exists.
3. Improving standard of living – this means that entrepreneurship can lift up the
economic status of an individual.
4. Means of economic development – this means that not only the life of the
entrepreneur is improved but also the society where the business is located.

Ativity: I would like to know how much learning you gain. Please summarize and put your
answers on the space provided…..

Who among the successful entrepreneurs you admire the most and why? What specific
characteristic you observe which makes them successful.
MODULE 1,2: ENTREPRENEURIAL TRAITS, QUALITIES, AND FUNCTIONS

A successful entrepreneur must possess the following traits:

1. Mental Ability – consists of intelligence and creative thinking. An entrepreneur

should be intelligent and must have an analytical mind and have the capacity to
analyze the problem under which decision have to be made.
2. Clear Objective – successful entrepreneur must have the objective to establish his
product in the market, make profit and render social service.
3. Business Secrecy – an entrepreneur must able to guard business secrets. Leakage of
business secrets to trade competitors is a serious matter.
4. Human Relations Ability – an entrepreneur must have good relations with his
customers to earn profit and win their confidence in his product. He must also
maintain good relation with his employees.
5. Effective Communication – good communication means that the entrepreneur has
the ability to put his point effectively and with clarity. Communiation ability is the
secret of the success of most entrepreneurs.
6. Technical Knowledge – the entrepreneurs are dealing with situations where
sophisticated technology is involved. The entrepreneurs must have a reasonable
level of technical knowledge.
7. Decision-making – the entrepreneur should have the capacity to analyze the various
aspects of the business before arriving at a decision.
8. Risk-bearing – higher risk, higher profit; risk is inherent and inseparable element of
entrepreneurship. He assumes the uncertainty of future.
9. Self-confidence – entrepreneurs must have mental capacity to face any situations.
They should also have the ability to inspire others. They must have the confidence in
themselves and the determination to achieve their goals.
10. Highly Self-Motivated- successful people go out into the world and invoke change
through their actions. Leaders enjoy challenges and will work tirelessly to solve
problems that confront them.
11. Serial Innovator – entrepreneurs are almost defined by their drive to constantly
develop new ideas and improve on existing processes. Successful people welcome
change and often depend on it to improve their effectiveness as leaders and
ultimately the success of their businesses as many business concepts rely on
improving products, services and processes in order to win business.

QUALITIS OF AN ENTREPRENEUR

1. Planner – entrepreneurs has a strong desire to achieve a higher goal and make their
dreams come true. the entrepreneur must have these quality to achieve that target.
2. Technician – an entrepreneur must have the technical knowledge. He should know
how to use the resources and achieve target.
3. Motivator – he inspires the employees to achieving the target
4. Future Oriented – entrepreneur shows a high level of future orientation. They do
not allow the past to obsess them. They are oriented towards present and future.
5. Interpersonal Skills – an entrepreneur is a person who during the course of his
activities he should be a person who likes working with people and who has skills of
dealing with people.
6. Disciplined- these individuals are focused on making their business work, and
eliminate any hindrances or distractions to their goals.
7. Competitive – many companies are formed because an entrepreneur knows that
they can do a job better than another.
8. Creativity – one facet of creativity is between able to make connections and
seemingly unrelated events or situations. They will repurpose products to market
them to new industries.
9. Determination – entrepreneurs are not thwarted by their defeats. They look at
defeat as an opportunity for success. Successful entrepreneurs do not believe that
something cannot be done.
10. Strong Work Ethics – successful entrepreneurs will often be the first person to arrive
at the office and the last one to leave. Their mind is constantly on their work,
whether they are in or out of the workplace.

FUNCTIONS OF ENTREPRENEURS

1. RISK TAKING AND UNCERTAINTY BEARING. The future is unpredicatable; the

entrepreneur has to take risks in these circumstances. Taking risks form an
important entrepreneurial function. Knight define entrepreneurs as “the economic
functionary who undertakes such responsibility of uncertainty which by its very
nature cannot be insured or capitalized or salaried too.”
2. Taking Business Decisions. He has to formulated an action plan to foster high quality
on the product to be produced. He has to evolve the best possible method of
production which would earn him sizeable profit.
3. Managerial Functions – the entrepreneur arranges finance, purchase raw materials,
provides the necessary infrastructure for production. The entrepreneur has a multi-
faced personality when he undertake managerial functions. He provides a logical
and scientific basis to the above functions for the smooth operation of the enterprise
thereby avoids chaos in the field of production, marketing, purchasing, recruiting
and selection.
4. Decision Making Function – the most vital function an entrepreneur discharges. The
selection of the best course of action that bears greater benefit than sacrifice.
5. Innovation- introduces far reaching improvements in the quantity and quality of
production line and considers the economic viability and technical feasibility of an
innovation. Entrepreneurs enhance the quality of consumers’ lives by introducing
new products and services that solve problems and fulfill consumers’ needs.
6. Coordination – involves selection of the right type of factors employment of each
factor in the right quantity , use of the best technical devices, division of labor, and
reduction of waste.
7. Environmental Analysis – classified as internal environment – are controllable; and
external environment – are beyond the control of the business.
8. Identifying Entrepreneurial Opportunity – an entrepreneur has to keep his eyes and
ears open and require imagination, creativity and informativeness.
9. Turning Ideas into Action – entrepreneur as an organizer and organizing function
which brings together various factors of production ensures continuing management
and renders risk bearing functions as well.
Ready for Debriefing???

Lets up apply what you’ve learned

I would like to know how much learnings you gain. Please summarize and put your
answers on the space provided below.

Give at most three (3) names of entrepreneurs in your locality that you know and
identify what factor or factors that makes him/her successful.

Module1.3: ROLES AND IMPORTANCE OF ENTREPRENEURS IN ECONOMIC GROWTH

The position of the entrepreneur in modern production is like that of the director of a
play. Modern economic development is closely linked with production. The
entrepreneur directs production and he must do whatever is necessary for its success.

1. Employment Generation – enterprise being established by the entrepreneur

provides direct and indirect employment to may more. Entrepreneurship is the best
way to fight unemployment.
2. National Income. Entrepreneurship increases the national income through
generation of product and services both in imports and exports.
3. Dispersal of Economic Power – when the number of entrepreneur increases, a large
amount of national wealth is also shared by a large number of entrepreneurs, thus
dispersing wealth. This dispersal of wealth promotes the real socialism and makes
the economy healthy.
4. Balance Reginal Development – the growth of industry and business leads to a large
number of public benefits like road, transport, health, education, and entertainment.
A rapid development of entrepreneurship ensures a balance regional development.
5. Economic Independence – entrepreneurship is essential for national self- reliance.
6. Improvement in Living standards – entrepreneurs set up industries which remove
scarcity of essential commodities and introduce new products.
7. Harnessing locally Available Resources and Entrepreneurship – a few large scale
industries started by entrepreneurs from outside the state in economically backward
areas may help as models of pioneering efforts, but ultimately the real strength of
industrialization in backward areas depends upon the involvement of local
entrepreneurship in such activities.
8. Innovations in Enterprise – business enterprises need to be innovative for their
survival and better performance. Small firms are expected to result in more
innovations and make the industry complete in international market.

THE ENTREPRENEUR’S TASK

If all requirements in a capitalist economy are in place, the entrepreneur can assume
his assigned role in the development in the economy. This made possible because the
surviving enterprises are responsible for providing the following:

1. Products and services for customers and producers;

2. Employment’;
3. Taxes;
4. Demand for suppliers’ products and services; and
5. Training facilities for future entrepreneurs.

The entrepreneurs also make sure that the suppliers will have a ready market for their
product and services. Lastly, business entrepreneurs provide a training ground for future
entrepreneurs. Some even improved on the entrepreneurial skills passed on to them.

It also consists of assembling the resources consisting of land, labour, and capital for the
purpose of producing goods and services. The entrepreneur is also responsible for
deciding on the rate of output his ventures must produce. He also bears the risk inherit
to the ventures. If the entrepreneur’s task appears to be great burden, the prospect of
profits makes it bearable.

THE ETHICAL AND SOCIAL RESPONSIBLILITIES OF ENTREPRENEUR

Every now and then, issue concerning ethical behavior of entrepreneurs in different
field of business became a trend. These issues affect the society’s survival. The concern
for society’s survival brought into before the need to adapt ethical standards and socially
responsible actions.

This concern brough the creation of business ethics. Ethics is the study of moral
obligation involving distinction between right and wrong. Business ethics refers to the
rule about how entrepreneurs ought to behave. This business ethics paved the way for
the adaption of the general rule of the society.

The ethical behavior required of entrepreneurs is determined by the public, interest

groups like society, prevention of cruelty to animals, business organization and
individual’s personal morals and values. Certain factors regarding ethical behavior is
influenced by any or combination of the situation, reward system, individual differences
and other factors.

There are definite ways on how to encourage ethical behavior among employees such as
adaption of a code of ethics, institution of rewards and punishments concerning ethical
behavior, adaption of internal programs resolving conflicts, creation of ethics review
committee, Provision of training in ethics for employees and tops management support.

In a business, a formal document indicating the entreprenurships adapted priciples of

appropriate behavior is called the Code of Ethics. Ethical issues’ concerning
entrepreneurship arises between the company and the customer, the company and its
personnel, the company and its business associates and the company and the investor
and financial community.

When ethical abuses are committed the most provbable victims are the customers. As
entrepreneurs, customer rights should be provided like the right to be safe, the right to
be informed, the right to choose and the right to be heard.

On the other hand, there is always the possibility that business firms, including
entrepreneurship will commit unethical act towards their employees. Good ethical
conducts require entrepreneurs to be aware for their responsibilities to employees.
Those responsibilities are workplace safety, quality of life issues, avoiding discrimination
and preventing sexual harassment.

ENTREPRENEURIAL PERSONALITY

Operating a business enterprise is a very challenging occupation. Only a small number of

entrepreneurs become successful and the levels of their success differ. Therefore,
entrepreneurship is not for everyone.

TWO FACTORS THAT DETERMINE SUCCESS OR FAILURE IN AN ENTREPRENEURSHIP:

1. The Environment as a Factor – an entrepreneurship will survive and grow only in

economic environments of free enterprise.
2. The Personality of the Entrepreneur – every person has a personality that is unique
and different from others. Personality refers to the pattern of characteristics that
distinguishes one person from another.

SIX TYPES OF PERSONALITY

1. THE REALISTIC TYPE – this individual prefers activities involving aggressive behavior
and physical exertion requiring skill, strength, and coordination.
2. THE INVESTIGATIVE TYPE – this individual prefers to be analytical, curious,
methodical and precise.
3. THE ARTISTIC TYPE – this person is expressivem nonconforming, original and
introspective.
4. THE SOCIAL TYPE – enjoys working with and helping others and purposefully avoids
systematic activities involving tools and machinery.
5. THE ENTERPRISING TYPE – this person enjoys verbal activities to influence others
and to attain power and status.
6. THE CONVNTIONAL TYPE – enjoys the systematic manipulation of data, filling of
records, or producing materials.

WHAT MOTIVATE PEOPLE TO BECOME ENTREPRENEURS

1. The desire to be one’s own boss.

2. The desire for financial rewards.
3. The desire to create one’s own job security
4. The desire to improve one’s quality of life.

ENTRPRENEURS AND MANAGERS DISTINGUISHED

The entrepreneur feels confident of his ability to seize business opportunity

regardless of the resources under his current control. The manager emphasizes the
efficient utilization of resources.

REMARKABLE! I know you are capable of so much more! Don’t’ be shy please share
your brilliant ideas on the things you have learned out from reading and discussion.
You can use real-life experiences if you want to.
Use your imagination. Choose two that you could imagine owning and why. Put your
answer in the space provided.

WRAPPED UP KEY TAKEAWAY

FROM THE HORSE’ MOUTH

One of the best ways to determine if now is the best time to start a business is to
meet with other entrepreneurs and see what they do and how they do it. Looking at
their life and talking about entrepreneurship can help you figure out if you’re ready.
Often when you talk to someone who’s done it, they’ll tell you all the negative things
about owning a business, like the time they had to work 24 hours a day or when the
power went out. But those are the things you need to learn about before you get
started.

In addition to meeting with successful entrepreneurs, you might want to talk to a

few who weren’t so successful. Find out what went wrong with their ventures so
you can avoid these problems. Did they fail to conduct market research before
forging ahead? Were they unwilling to work long hours? Where they
undercapitalize? Did they have misconceptions about what really takes to be an
entrepreneur? Many potential business owners find it successful to attend
entrepreneurial seminars or classes. You can often find such courses at community
or colleges. Continuing education programs or online. Others seek assistance from
consulting first that specialize in helping small businesses get off the ground. Don’t
hesitate to ask for assistance. These people will help you succeed.