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ENTREPRENEURSHIP UT 1 REVIEWER
NAME:________________________________________________________________
I. Basic Overview on Entrepreneurship
A. What is Entrepreneurship?
 RA 9501  Magna Carta for Micro, Small and Medium Enterprises
 entrepreneurship  a proactive process that involves opportunity
seeking, establishing a business and assessment of a risk
 TWO MAIN GOALS OF DEVELOPING A BUSINESS:
 provide needs and wants of the people
 make and earn a profit
B. Benefits of an Entrepreneurship
1. Produces more jobs that equate to an increase in national income
2. Amplifies economic activity of different sectors of society
3. Introduces new and innovative products and services
4. Improves people’s living standards
5. Disperses the economic power and creates equality
6. Controls the local wealth and balances development
7. Reduces social conflicts and political unrest
8. Elicits economic independence and capital formation
II. The Entrepreneur
A. Who is an Entrepreneur?
 entre  between; French
 prendre  to take; French
 entrepreneur
 unique individual with innate ability and extraordinary
dedication to establish a business; while knowing the risks
 also a calling; like any job
 only expect returns once he added a created value outside
opportunity
 sees an organization; creates an organization to pursue it
 natural talent: be perceptive for opportunities
 INITIATIVE  readiness and ability in initiating action
 RISK  hazard or chance of loss
B. Five Levels of Entrepreneurial Development
 Self-Employed
 not comfortable with routine jobs of a desk
 do not want to conform to a fixed schedule
 do things their own-way; agitated when they become
controlled
 too reliant on themselves  leads to exhaustion
 eventually realize that a successful business should work for
them
 Manager
 feel the need to step up and ask some help from the people
around
 delegate and hire potential employees
 tendency to get more people who do not know the exact
needs  because they think that scale > profitability
 frustration; does not go as plan; some potential problems arise
 start knowing their employees better
 creates positions that match the requirements of the business
 in-charge of virtually everything
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 Leader
 already enjoy seeing their people flourish
 great results with minimal supervision
 can sleep peacefully at night; freedom and time for
themselves
 already recognized key leaders in their organization; who
trust the entrepreneur and are satisfied
 focus on the big picture and strategic direction of their careers
 Investor
 look for more opportunities for the business to grow or prosper
 purchase businesses that can add value to the company
 sell their established business (as a franchise)
 delegates a suitable manager for operations and will act as
directors
 True Entrepreneur
 have complete full experience; PASSIVE ENTREP
 aim for quality and excellence in their work; fully learned
 have income that keeps on multiplying even if they do not
exert effort
 practice the four-step process of thinking:
a. Idealization  dream enormously and desire to build
b. Visualization  start to create plans to make it reality
c. Verbalization  sharing their ideas with others
d. Materialization  happens when the vision = reality
III. Common and Core Competencies of An Entrepreneur
A. Common Competencies  needed all throughout their entrep. careers
 Proactive  reactive > passive; address needs and problems
before they have a chance to come true; assure proper research
 Agents of Change  innovation champions; opportunities in
hopeless situations; don’t settle for mediocrity; develop new products
 Risk-takers  weigh potential risks and threats; calculate and if
there is a big chance of succeeding, they push through the venture
 Sociable  establish relationships with people and customers;
 relationship management  key for employee and customer
retention
 Have a keen eye for opportunities  recognize opportunities even
while viewing macrolevel data; assess opportunities and decide if
venture should be done or not
 Balanced  balance analytical and creative sides; unique ideas
and Eureka!
 Innovative  minds are rich with big ideas that could be game
changers; don’t stop thinking for ideas
 Networkers  knows key people to connect with; can be
intimidating; takes a lot of guts; gain trust for long-term relations
 Decisive  no gray areas; always has a disposition to issues, all
aspects have objectives and based on scientific knowledge
B. Core Competencies  needed for sustainability and management
 Problem Solvers  critical thinking; know to handle issues
strategically by immersing into the ins and outs of the business
 Specialists  experts in the business; detailed; know specific
information on product; think of new ideas; enjoy being on action
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 Leaders  humble, inspirational, friendly, listen to concerns; act on

responsibilities; bring out the best in others
 Communicators  use all means to effectively share ideas; provide
people with clear views and avoid mishaps; always open
communication channels to ensure smooth flow
IV. Entrepreneurship and Employment
ENTREPRENEUR EMPLOYEE
PASSIVE INCOME: Earns income ACTIVE INCOME: Income during
even while sleeping working hours; “No Work, No Pay”
Has unlimited income opportunities Has a fixed and safe limited
compensation income
Gives jobs Finds jobs
Responsible for making his Responsible for making
customers, the public, happy his employer happy
Takes long hours of hard work during Takes regular hours of work;
start-up does routine tasks
Gives himself enough vacation and rest Takes an annual limited rest and
when enterprise is stable vacation (restricted by employer)
Taxed on his net income Taxed on his gross income
(after deducting expenses) (actual income)
Hires and fires an employee Hired and fired by an employer
A writer and instructor of the A reader and follower of the
memorandum memorandum
Can be an owner of other similar Can’t be a worker of other similar
businesses employers
Don’t require educational decrees Requires a higher educational
background to get a higher position
Acquires wealth at a young age Acquires wealth after retirement after
long years of service
Creates a system he likes and follows it Mandated to follow a system whether
he likes it or not

V. The Entrepreneurial Process

 A step-by-step procedure in establishing DEVELOPING A
BUSINESS PLAN
any kind of business; has five steps:
A. Opportunity Seeking and Discovery
 beginning of the process DISCOVERY or RESOURCING or
OPPORTUNITY DETERMINING
 most difficult SPOTTING CAPITAL

 take note of interesting trends

 generates ideas, recognizes
and assesses opportunities and
studies the market MANAGING or

 IDEA VS OPPORTUNITY:
HARVESTING a RUNNING
COMPANY

 IDEA – a concept for a

product in a market niche
that doesn’t exist yet
 OPPORTUNITY – a business idea that has a potential to
become a commercial product service
 ESSENTIAL QUALITIES OF AN OPPORTUNITY:
 DURABLE  long-lasting, tenacious and can withstand
 ATTRACTIVENESS  answers the needs and the wants of
the people
 TIMELY  depends on the season
 CREATES VALUE  is valuable to the customer
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 SOURCES OF OPPORTUNITIES:
 Customers (the wants and the needs)
 Existing problems around us
 Interests, passions, talents and skills
B. Developing a Business Plan
 business plan – a comprehensive paper that details the several
aspects of the business
 it will be the core guide of the entrepreneur in directing, resourcing
and sustaining the business
 Parts of a Business Plan:
 Executive Summary
 Company Description (Who you are)
 Products and Services
 Market Analysis
 Organization and Management Team
 Financial Plan and Projections
C. Resourcing or Determining Capital
 calculating resources; one should only include real and essential
needs
 allowance must be considered just in case of inadequacy
 create linkages and relationships with potential investors
 calculate the extrinsic and intrinsic costs
D. Managing or Running Company
 test one’s tolerance and of the company
 implementation of the business plan and application of resources
 employing different strategies and tactics
 check and balance plans using a monitoring system
E. Harvesting
 Is the strategy effective?
 If faulty, one can change the strategy or remove it completely.
 If okay, one should continue to improve and monitor.
 Assess what went right and want could have gone better.

VI. Scanning the Environment: The 3S’ of Opportunity Spotting and Assessment
 serves as the framework that entrepreneurs use to come up with the ultimate
product and service for every opportunity
A. Seeking
 discovery of potential business opportunities; most difficult step;
involves the development of new ideas
 Primary Goal: gather as much ideas as possible; one should not
judge yet
 SOURCES OF OPPORTUNITIES/ IDEAS:
 Macroenvironmental Sources
1. SPEET  factors that affect the environment of
opportunity
+ Sociocultural  view of traditions and beliefs
+ Political  laws and policies of the government
+ Economic  money matters; income and
expenses
+ Environmental  no to environmental hazards
+ Technological  innovations and inventions of
new science and engineering
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2. Industry  be updated on the trends in the industry

3. New Discoveries  platforms that can be applied or
used such as social media and channels; other new
practices
4. Futuristic Opportunities  identify possible
projected opportunities a business might encounter
while running
 Micromarket
1. Customers  preferences; wants and needs
+ need  recognized when a customer believes
that there is a difference between his situation
versus his desired situation
+ want  recognized when a customer believes
that there is a specific product that can perfectly
suit the need
2. Irritants or Problems  opportunities arise when
people find certain things problematic and sickening
3. Competitors  Understanding the competition aids
one to innovate or to work harder at developing a
product
+ 4Ps of Marketing  Product, Place, Price,
Promotion
4. Location / demographic  look at the location and
people or possible market; ex. an eatery outside a
school or IT center

B. Screening
 process of carefully selecting the BEST opportunity
 Will rely on several factors:
 internal intent  personal objective on what the business will
achieve
 external intent  intention for the needs of the market
 risk appetite  refers to the entrepreneur’s tolerance of
business risks
 time  should only be devoted to worthwhile opportunities
 Must answer positively to the questions:
 Is it a potential cash cow?
 Does it have a market?
 Does it match with the entrepreneur’s skills?
 Does one have the drive to pursue it til the end?
 Does it have a value to customers; or does it solve a problem,
need or want?

C. Seizing
 Last step of opportunity spotting
 “pushing through” with chosen opportunity; exert full effort
 Innovation  process of positively improving something existing
 Breakthrough innovation  inventions; base for more
inventions; must be protected with a patent
 Technological innovation  more frequently, technological
advancements on existing products already
 Ordinary Innovation  occur ordinarily; technology pull
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 Stages in Product Development

 IDEA
 What products suit the opportunity?
 Can the value of the products benefit the entrepreneur?
 CONCEPT
 Do the people really want this? What do they honestly
want?
 What are the specifics (sizing, price, quality)?
 PRODUCT DEVELOPMENT
 Create a prototype aligned to the preference of customer
 Do brand Comparison, let customer test samples of
product and competition’s product; let them critique all
aspects
 TEST MARKETING
 Validates work done from 1st three stages
 Actual selling of the product
 This stage identifies if product is worth commercialization
 Sales shall become the basis for the consumer’s
acceptance level

ACTIVITY 1: IDENTIFICATION. Identify what terms are being defined in every number.
Write your answer on the spaces provided.
_________________1. A unique individual with innate ability and extraordinary
dedication to establish a business; while knowing the risks
_________________2. It is a proactive process of developing a business venture
_________________3. It is the language that the word entrepreneur came from.
_________________4. It is a word that means “between”
_________________5. It is a word which means “to take”
_________________6. These are talents and skills that are necessary for sustainability
_________________7. These are skills needed all throughout the entrepreneurial career
_________________8. This refers to the hazard or chances of loss of a venture
_________________9. This is the willingness and readiness to begin an action
_________________10. The degrees or varying levels of intensity as an entrepreneur
_________________11. It is a step-by-step process in establishing any kind of business
_________________12. It is a comprehensive paper that details the aspects of a venture
_________________13. A thought concept that does not yet exist in a specific niche
_________________14. It is a thought that has the potential to be commercialized
_________________15. The framework most entrepreneurs used to identify which
product they will decide to choose to match an opportunity

ACTIVITY 2: MATCHING TYPE. Match the competencies of an entrepreneur with the

given terms. You may repeat you answers.

A. Proactive B. Agents of Change C. Risk Takers D. Sociable

E. Have a Sharp Eye for Opportunities F. Networkers G. Decisive H. Balanced
I. Innovative J. Leaders K. Communicators L. Specialists M. Problem Solvers

_______1. Knowing the key people to connect with is essential

_______2. The minds of entrepreneurs are rich with big ideas
_______3. Entrepreneurs are experts in their chosen business.
_______4. Entrepreneurs use all forms of communication effectively to share ideas
_______5. Entrepreneurs must have equal amounts of analytical and creative sides.
_______6. Entrepreneurs calculate chances and do not just grab opportunities anywhere
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A. Proactive B. Agents of Change C. Risk Takers D. Sociable

E. Have a Sharp Eye F. Networkers G. Decisive H. Balanced
I. Innovative J. Leaders K. Communicators L. Specialists M. Problem Solvers

______7. Entrepreneurs are innovation champions.

______8. Entrepreneurs are reactive, rather than passive people.
______9. Having soft skills is an important competency of entrepreneurs.
______10. An entrepreneur must be friendly, approachable and very humble.
______11. An entrepreneur does not leave any issues unsolved without a disposition
______12. Entrepreneurs possess essential critical thinking skills.
______13. Entrepreneurs can recognize opportunities even using only macrolevel data
______14. Entrepreneurs have heart and are able to bring the best out of everyone
______15. One should always think of game-changers and never stop thinking for ideas
______16. Entrepreneurs know to solve issues by immersing one’s self in the actual day-
to-day occurrences in the business
______17. Entrepreneurs never settle for mediocrity and always seek to introduce new
products and improve the old ones, and seeing opportunities in hard situations
______18. Entrepreneurs have the eureka moments, and always play with unique ideas
______19. Entrepreneurs use effective channels to ensure safe flow of a business and
to avoid mishaps along the way
______20. Entrepreneurs think of problems before they even come
______21. Entrepreneurs never leave any gray areas, and base answers on scientific
calculation and technical knowledge
______22. Successful entrepreneurs gain the trust of valuable people and maintain long-
lasting relationships with them
______23. Entrepreneurs understand the totality of the business, preferring to be in action
rather than behind the scenes
______24. Entrepreneurs only after weighing options, proceed with the best choices
______25. An entrepreneur should know how to assess the net cause and effect of every
chance, and decide intelligently if a venture should be considered or not

ACTIVITY 3: EMPLOYEE OR ENTREPRENEUR. Write on the blank EM is the statement

describes being an employee, and write EN if it shows being an entrepreneur.

____1. Income is earned whether business of successful or unsuccessful.

____2. Income is generated on working hours only.
____3. Prepares policies, procedures, and memoranda for the business.
____4. S/he is responsible in making the business profitable and sustainable.
____5. Dependent on employer’s performance.
____6. Comfortable in doing multiple and challenging tasks
____7. Has flexible schedule and can take an unlimited number of vacation days.
____8. Taxed on gross income.
____9. Has the power to disengage nonperforming employees.
____10. Is comfortable with routines and minimal risks.
____11. He takes long hard hours of work during start-up
____12. Wealth is earned upon retirement.
____13. Requires higher educational background
____14. Earns active income
____15. Can be part of other enterprises.
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ACTIVITY 4: LEVELS OF ENTREPRENEURIAL DEVELOPMENT. Classify these

sentences into the levels of entrepreneurial development. Write the letters into the
respective boxes. a. Fully learned the four – step process of thinking.
SELF-EMPLOYED b. Working in a fixed working schedule is not their thing.
c. Looks for opportunity(s) that will make the business prosper.
d. Either purchased or sell the established business.
e. Creates a comprehensive job description that matches requirements
MANAGER f. Virtually in – charge of everything.
g. The passive entrepreneur.
h. Focuses on the big picture and think of strategic directions
i. Delegates and hires potential employees for a certain job/task.
LEADER j. Too reliant on themselves
k. Recognizes key leaders in the business
l. Have idealized, visualized and verbalized everything
m. Strive for quality and excellence of work
INVESTOR n. Assigns suitable managers for operations who act as directors
o. Have a multiplying income without any effort
p. Should begin to assess employees’ weaknesses and strength
q. Does minimal supervision, but employees still excel
TRUE ENTREP r. Analyzes potential expansion and growth
s. Have the fullest experience; have mastered the art of business
t. Tend to think that business is in the scale rather than profitability

ACTIVITY 5: THE 3S’s OF OPPORTUNITY SEEKING. Write 1 for seeking, 2 for

screening and 3 for seizing.
_____1. The most difficult process of them all.
_____2. Test the attractiveness of an opportunity
_____3. Reanalyzes several factors, such as intent, appetite and time.
_____4. Considers her/his talents, skills, and field of interest.
_____5. Immerse herself/himself to the vast universe of potential business opportunities.
_____6. Selecting the BEST opportunity.
_____7. Asking questions such as potential as a cash cow, and if it has value.
_____8. This is continuing to search for more improvements and innovations
_____9. This is basically listening to the macro and micro environments.
_____10. Exert effort and full dedication for the success of the new venture.

ACTIVITY 6: SORTING! Write the keyword found in the center of the cycle into business
process that they belong into.
BUSINESS PLAN

removing failure
providers
DISCOVERY difficult RESOURCING
industry analysis
conceptualization
marketing plan capital
intrinsic and extrinsic
leadership stategizing implementation
linkages suppliers
modifying looking for trends

HARVESTING MANAGING
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ACTIVITY 7: MULTIPLE CHOICE. Write the letter of your answer on the space provided
before each number.

___1. This stage in product development determines feasible products or services.

a. idea b. concept c. product development d. test marketing

___2. This stage validates previous work; and the ones to measure success will be sales.
a. idea b. concept c. product development d. test marketing

___3. This stage goes deeper into the specifics of the wants and needs of the customer
a. idea b. concept c. product development d. test marketing

___4. This stage holds brand comparison tests and formulates final service to be sold.
a. idea b. concept c. product development d. test marketing

___5. This form of innovation establishes the platform for future innovations.
a. technological b. breakthrough c. ordinary d. launchpad

___6. This form of innovation are improvements of the platform innovations

a. technological b. breakthrough c. ordinary d. Launchpad

___7. It is the intent that an opportunity will accomplish for the entrepreneur.
a. extrinsic b. intrinsic c. internal b. external

___8. The mnemonic SPEET stands for what?

a. socioeconomic, political, environmental, ecological, technological
b. sociocultural, political, economic, ecological, technological
c. socioecological, political, environmental, ecological, technological
d. sociocultural, political, economic, environmental, technological

___9. The 4Ps of marketing under competitors are –

a. product, providence, price, place
b. people, product, price, place
c. product, price, place, promotion
d. product, people, price, place

___10. This type of entrepreneur takes advantage of the nations problems.

a. technopreneur c. social entrepreneur
b. intrapreneur d. extrapreneur

___11. This type of entrepreneur hops from one company to another to act as the
innovation champion?
a. technopreneur c. social entrepreneur
b. intrapreneur d. extrapreneur

___12. This step in the four-step process of thinking talks about dreaming enormously.
a. idealization b. visualization c. verbalization d. materialization

___13. This step in the four-step process of thinking talks about creating plans.
a. idealization b. visualization c. verbalization d. materialization

___14. This step in the four-step process of thinking tackles the actualization.
a. idealization b. visualization c. verbalization d. materialization
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____15. This step in the four-step process of thinking tackles sharing one’s plans
a. idealization b. visualization c. verbalization d. materializatiom

____16. Which of the following is not a goal of an enterprise?

a. To provide the wants of the people
b. To create profit for the entrepreneur and his employees
c. To supply the needs of the society and the consumers
d. To decrease the employment population

____17. Which of the following is not a benefit of entrepreneurship?

a. Improving people’s living standards
b. Disperses the economic power and creates equality
c. Elicits economic dependence and capital formation
d. Increases lack of social conflicts and absence of political unrest

____18. Which of the following is not true about an entrepreneur?

a. He should expect something in return once he has created added value.
b. Entrepreneurship is a learned gift and anyone can’t simply become one.
c. An entrepreneur innovates, executes big ideas, and never procrastinates.
d. The core of every entrepreneurship is dedication.

____19. Which of the following is not a core competency?

a. proactive b. problem solver c. leader d. specialists

____20. Which of the following is not a common competency?

a. innovative b. networkers c. sociable d. communicators

ACTIVITY 8: ENUMERATION.
COMMON COMPETENCIES (9) CORE COMPETENCIES (4)

ENTREPRENEURIAL PROCESS
(5)
ESSENTIAL QUALITIES OF AN
OPPORTUNITY (4)

MACROENVIRONMENTAL MICROMARKET (6)

SOURCES (4)

END EXAM! YEHEY HUMAN NA UT 1!