Prepared by; Joaquim A.

segismundo

LESSON 1;
DEVELOPING A
BUSINESS PLAN
 Overview of
entrepreneurship
The origin of the word
entrepreneurship
The word "entrepreneur" comes from the
Old French verb entreprendre, which
means "to undertake" or "to do
something".
What is entrepreneurship?
Entrepreneurship is a proactive process of
developing a business venture to make a
profit.
-It involves opportunities for market
-establishing and operating a business
An Entrepreneurship is successful if the
business that he or she envisioned has
materialized into a thriving industry, regular
customers and financial gain.

With this definition, being an entrepreneur

may seem difficult, but it can be rewarding
if the enterprise flourishes.
An entrepreneur is a unique individual who
has the innate ability and extraordinary
dedication to establish and manage
business, acknowledge all the risks and
reaping its reward.

Like other vocation being entrepreneur is

also a calling
Societal and economic benefits
of entrepreneurship

1. Entrepreneurship produces more jobs

that equate to an increase in national
income
- Millions of unemployment people will
have the opportunities to have decent
occupation. Small business produce jobs
and create wealth
2. Entrepreneurship amplifies economic
activities of different sector of society.
-A simple eatery in a rural area and a
coffee shop in an urban area both ignite
economic activity regardless of their
business scale
3. Entrepreneurship introduces new
innovative products and services
-New product and services are always
available in a market because of
entrepreneurship
4. Entrepreneurship improves people’s
living standard.
-How can you look good if not for the
services of your nearby salon or barber
shop?
-How can your day be complete without
the food that eatery cooks?
-How can you live without the sari-sari
store near your house where you can buy
your basic good?
5. Entrepreneurship disperses the
economic power and create equality.
-It balances the economy by distributing
national income to more business rather
than to only few monopolies
5 levels of entrepreneurial
development
1. The self-employed
Self employed persons are simply put, not
comfortable with the routines with the
routines of the desk job. They do not want
to conform to a fixed working schedule.
They want to do things in their own way
and start to feel agitated when controlled
by the powers that be.
2. The manager
In this level, entrepreneurs feel the need to
step up and ask some help from the
people around them. They delegate and
hire potential employees to do the work.
3. The investor
Investor look more opportunities for their
business to grow. They may either
purchase one or two business that can
potentially add value to the company
4. The leader
Entrepreneurs in this level already enjoy
seeing their people flourish, stepping up
and producing great result with minimal
supervision. Entrepreneurs on this level
focus on the big picture and in strategic
level
5. The entrepreneur
True entrepreneurs, based on their
experience, now aim for quality and
excellence in their work
 Common and core
competencies in
entrepreneurship
Entrepreneurship is a career that requires
the plethora of common and core
competencies.

Therefore, to be considered a successful

entrepreneur, he or she must possess
common entrepreneurial competencies!
Common treats that
entrepreneurs should have.
1. Proactive. Entrepreneurs are reactive
rather than passive. They ensure that
proper research is done, the risk factors are
assessed, and plans are executed on timely
and most efficient way
2. Agents of change. Entrepreneurs are
innovative champions. They are always
ready to improve and develop new products
and services and introduce them to the
market
3. Risk takers. Entrepreneurs will not be
successful if they do not take risks. By
taking risks, entrepreneurs do not just grab
opportunities left and right; they have to
take into consideration the potential
various threats they may encounter
4. Have a sharp eye for opportunities.
They know how to assess the net cause
and effect of an opportunity and decide
intelligently if the venture should be
considered or not.
5. Sociable. Relationship management is
the for employee and the customer
retention, which can be achieved by
sociable entrepreneur.
6. Networkers. A networkers knows the
key people to connect with. Successful
7. Balanced. The minds of entrepreneurs
should have a balance between the
analytical and the creative side.
8. Innovative. The minds of entrepreneurs
are rich with big ideas. They do not stop
improving of new and worthwhile ideas for
their business
Entrepreneurship can have a
significant impact on the economy
and society, and can lead to:
 Economic growth
Entrepreneurship can drive economic
growth by creating new products and
services, introducing new technologies,
and tapping into new markets.
 Wealth generation

Entrepreneurs can create new sources of

revenue and profits by targeting new
markets and audiences.
 Social change
Entrepreneurs can reduce dependence on
outdated technologies and processes by
offering innovative products and services.
 Community development

Entrepreneurs can foster a sense of

community by creating products and
services that meet the needs of their
communities
Core traits that entrepreneurs
should develop in running business
 Leaders. Successful entrepreneurs have
the heart of the leader to be successful
 Communicators. Entrepreneurs know
how to use all forms of communication
to affectively share idea and address
certain concerns with their customer.
 Specialist. Entrepreneurs are experts in
their chosen business.
 Problems solvers. Entrepreneurs
possess critical thinking skills. They
know how to handle issues in any area
of the business, be finance, operation,
or marketing.
List of the common small
businesses in the philippines
1. Sari-sari store
2. Rice retailing
3. Food cart business
4. Printing business
5. Buy-and-sell business
6. Street food business
7. Online selling business
8. Cell phone loading business
9. Baking business
10. Water station
 entrepreneurship vs
employment
Entrepreneurship and employment
are two different career paths that a
person can choose depending on his or
her personal aspirations and work
characteristics.
Identify which among the
following description refer to
entrepreneurs and which refer
to employees. Write EN for
entrepreneur and EM for
employee .
_____1. Income is earned whether the business is
successful or unsuccessful
_____2. He or she is usually comfortable with
routines and minimal risks
_____3. He or she is fully responsible for serving
customers, making the business
profitable/sustainable, and providing employee
satisfaction
_____4. He or she prepares policies,
procedures , and memoranda for the
business
_____5. He or she is fully dependent on the
employer’s performance. If the company does
not perform well, he or she at risk of
becoming jobless
_____6. He or she is comfortable in doing
multiple and challenging tasks and takes
accountability with the risks and profit of the
business
_____7. Income generated on working hours
only
_____8. He or she has a flexible schedule and
can take an unlimited number of vacation days
_____9. He or she is taxed on the gross
income. Expenses incurred related to the
job such as food and transportation
expenses cannot be used to claim for
deduction from taxable income
_____10. He or she the power to
disengage nonperforming employees,
applying the due process policy of
disengaging
ANSWER!!!
1. EM -Employee
2. EM -Employee
3. EN -Entrepreneur
4. EN -Entrepreneur
5. EM -Employee
6. EN -Entrepreneur
7. EM -Employee
8. EN -Entrepreneur
9. EM -Employee
10. EN -Entrepreneur