GEC E1: Entrepreneurial Mind Module
ENTREPRENUERIAL MIND
Course Code
Credit Unit/Course Credit
Time Duration
Course Description
: GEC E1
: 3 units Lecture
: 18weeks/54 hours ; 3Hours/Week
:This course introduces the fundamentals of
entrepreneurship that deals with the role of entrepreneurship in economic
development. Topics on Filipino entrepreneurial economy, entrepreneurial
motivation, government assistance and programs for entrepreneurs, development
and growth theories and applications are included. Relevant topics such as business
concepts and models, social responsibility, franchising, as well as e-commerce in the
Philippine setting shall also be discussed, in the nursing context.
This module is intended for third year students of Bachelor of Science in Nursing of
Nueva Ecija University of Science and Technology. To help students study even they are
staying at home. It will help them integrate principles and concepts of physical, social, natural
and health sciences and humanities in the care of population groups and communities. Allow
the students to assess the health status of the population groups and communities as client.
Prioritized community health needs and concerns and develop community diagnosis
INSTRUCTIONS ON HOW TO DO THIS MODULE
1. Begin reading and studying the Module. This Module is designed for individualized
instruction and is outcomes-based. Read the information at your own pace or
according to the timelines established by your subject teacher. In most cases, the
student will be studying the modules independently.
2. Read the objectives of each chapter. These objectives specify what you are expected
to learn and what you will be expected to do as a result of studying this Module.
3. Stop when you come to a Motivational Activity section and complete the Activity. Your
subject teacher will provide answers.
4. Start to read and study. After each unit, you have to complete all the Assessing
Learning section immediately. Check your answers against the discussion part of the
Module. If you have incorrect answers, re-read the appropriate section of the text in
the Module, and then write the correct answer(s). Then submit to your subject
teacher.
5. The Posttest measures your mastery of the units’ objectives. Thus, to prepare for the
Posttest, review the chapter objectives. Each Posttest question is directly related to
one of the chapter objectives.
6. You can now move onto the next unit in the Module. Continue to read and study the
Module—repeating steps 2, 3, 4, and 5 of these instructions—until you reach the end
of the Module.
7. From time to time follow-up conference between you and your subject teacher will
take place for feedback on what you have learned. Follow-up conference can be in the
form of text, personal message, call, and video call.
8. If you have any questions about the Entrepreneurial Mind module, please contact the
subject teacher.
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
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GEC E1: Entrepreneurial Mind Module
TABLE OF CONTENTS
Instruction
UNIT I: Introduction to Entrepreneurship
Wealth Creation, Management and Its Value
What is Entrepreneurship?
Theories of Entrepreneurship
Types of Entrepreneurial Ventures
Essential characteristics and social networking
The entrepreneurial process
UNIT II: Entrepreneurship: Myths-Mindset Mandate
Skills of a Nursing Entrepreneur
Scope of Practice of Nursing Entrepreneur
Project Entrepre-Nurse of DOLE
Ethics for Entrepreneurs
UNIT III: Problem-Solving Strategies
The Different Problem Solving Strategies
SWOT Analysis
Ishikawa Diagram
Michael Porter’s Five Forces
Blue Ocean Strategy
UNIT IV: Entrepreneurial Ventures in the Philippines
Entrepinoy
Johari Window
Personal Entrepreneurial Competencies (PEC’s)
Business Models of SMEs
Traditional
Sole Partnership
Incorporation
Start-Ups
Social Entrepreneurship
Angel Investing
UNIT V: Entrepreneurial Characteristics and Competencies
Different Characteristics of an Entrepreneur
Competencies of Entrepreneur
Learning from Failures Towards Successful Entrepreneurial Journey
Nature and Challenges on Family Business
Couple Business
Teens Business
Women Business
Friends Business
UNIT VI: The Global Trends in Business
The supply Chain in the Global Market
ASEAN Integration
E-commerce
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including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
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GEC E1: Entrepreneurial Mind Module
UNIT VII: Business Plan Overview
Parts of Business Plan
Executive Summary
Marketing Aspect
The Production/Operations Aspect
Management/Organization Aspect
Financial Aspect
Course Plan Agreement
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©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
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including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
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GEC E1: Entrepreneurial Mind Module
________________________________________________________________________________________________________
UNIT I. INTRODUCTION TO ENTREPRENEURSHIP
Overview
Entrepreneurship is the art of starting a business, basically a startup company
offering creative product, process or service. We can say that it is an activity full of creativity.
An entrepreneur perceives everything as a chance and displays bias in taking decision to
exploit the chance.
Learning Objectives
At the end of this unit, I am able to:
1. know wealth creation, management and its value;
2. define entrepreneurship;
3. evaluate different theories of entrepreneurship, and
4. Provide appropriate evidence-based practice in entrepreneurship.
________
Motivational Activity
Name:
Course/Year/Section:
Date:
Directions: The following grid contains terms associated with Entrepreneurship (as
enclosed in the box below). Find and encircle them. Look for them in all directions,
including backward and diagonally.
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________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
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GEC E1: Entrepreneurial Mind Module
Pretest________________________________________________________________________________________________
Name:
Course/Year/Section:
Date:
Score:
Directions: Encircle the correct answer.
1. It is ultimately the process of creating and building a stable source of sustenance so that one
would not have to struggle to make ends meet.
a. Wealth Creation
b. Entrepreneurship
c. Innovation Theory
d. Theory of Need of Achievement
2. It is the creation or extraction of value.
a. Innovation Theory
b. Theory of Need of Achievement
c. Entrepreneurship
d. None of the above
3. It means anything which could be owned and controlled, and have monitory value or
have the potential to create the monitory value.
a. Entrepreneurship
b. Wealth Creation
c. Innovation Theory
d. None of the above
4. In this theory the entrepreneur is born with the desire to establish his own industry
a. Innovation Theory
b. Theory of Need of Achievement
c. Theory of Recover the Withdrawal of Status
d. None of the above
5. In this theory the assumption is that creativity of any suffering minority group in the
society is the main source of entrepreneurship. This phase is sometimes known as
mourning because members have grown close and feel a loss now that the experience is
over.
a. Innovation Theory
b. Theory of Need of Achievement
c. Theory of Recover the Withdrawal of Status
d. None of the above
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©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 5 of 87
GEC E1: Entrepreneurial Mind Module
Lesson Proper
Wealth Creation, Management and Its Value
Wealth creation is ultimately the process of creating and building a stable source of
sustenance so that one would not have to struggle to make ends meet. In other words, one
can live the aspirations. An individual’s smart and rationale financial decisions determine the
value of wealth that he or she can create.
Wealth creation means anything which could be owned and controlled, and have
monitory value or have the potential to create the monitory value. Assets could be tangible
like a car, house, furniture, machinery etc. or intangible like goodwill, copyrights, patents,
trademarks etc. For a company, the land, the building, machinery, inventory etc. are the
wealth creation strategies. But the employees are not assets, though they have the potential
to create monitory value. Employees are not assets because the company don’t own them or
have sufficient control over them. They are called as resources of a company.
Some great people who understand finance in great depth see assets in a different
way. For example: the author of world-famous book, rich dad poor dad, Mr. Robert Kiyosaki
says that, anything which gives profit is an asset and others are liabilities. Wealth creation
example: the house in which an individual life is his liability as that individual is not earning
anything out of it, instead, he is paying for its maintenance and may be loan EMIs. This house
will behave as an asset when that individual sells it with a profit. A house which is giving rent
in the pocket of the owner is an asset which can be termed as one of the best ways of wealth
creation strategies and tactics.
Entrepreneurship
Entrepreneurship is the creation or extraction of value. With this definition,
entrepreneurship is viewed as change, which may include other values than simply economic
ones.
An entrepreneur is a creator or a designer who designs new ideas and business
processes according to the market requirements and his/her own passion. To be a successful
entrepreneur, it is very important to have managerial skill and strong team building abilities.
Leadership attributes are a sign of successful entrepreneurs. Some political economists
regard leadership, management ability, and team building skills to be the essential qualities
of an entrepreneur.
Theories of Entrepreneurship
We have already studied that the entrepreneurship development depends upon
various factors. Various theories or models have been prepared for this purpose. Various
thinkers have propounded various theories of entrepreneurship development or
development models of entrepreneurial class.
Innovation Theory
Joseph A. Schumpeter is the propounded of innovation theory. The assumptions are:
(1) The entrepreneur is born with the desire to establish his own industry, also (2) He desires
to do something new. (3) Takes pleasure of creativity and earning experiences of skills for
doing various tasks. However, the main objective behind the arms is to earn profits, by way
of search of new raw materials, new sources, new machinery, production of new products,
new methods of production, new workers and providing consumer satisfaction.
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©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 6 of 87
GEC E1: Entrepreneurial Mind Module
Theory of Need of Achievement
The need for achievement theory was propounded by McClelland. His assumption is
that the Desire of high achievements obtaining specific achievements, making the best
performance, touching the heights of excellence, developed Entrepreneurial tendencies in the
individuals. But, for that, the entrepreneur should have adequate capacity of imaginations,
thinking and developing new combinations. For that, the feelings for achievements are
inculcated in him, from the very beginning and thereafter it is especially attempted that he
may become a successful entrepreneur. McClelland has recognized the desire to achieve the
major factor in entrepreneurship development. He has suggested conducting motivational
training programs for development of the entrepreneurs.
Theory of Recover the Withdrawal of Status
This theory was propounded by Everet Hegen. His assumption is that creativity of any
suffering minority group in the society is the main source of entrepreneurship. In this regard,
he is of the opinion that if any community has to lose its reputation, due to some reasons, that
group becomes quite active and strong to regain it. As a result, many entrepreneurs are born.
Hence it may be said that withdrawal of status of any social group is the root cause of its
personality development and Entrepreneurial development also. According to Hagen,
withdrawal of status or reputation is caused by the following conditions: (1) When a reputed
group is forcefully displaced by another group. (2) When a better group changes its views
about its subordinate group. (3) When a group starts living in some new society. The persons
or the group tend to do creativity behavior to regain the status and reputation, after
withdrawal of status, etc. (4) Which will result in entrepreneurship development?
Behavior Theory
This theory was propounded by John Kunkel. He assumes that the entrepreneurial
development of any society depends upon its past and exiting economic social aspirations.
He feels that following four types of compositions are essential for entrepreneurial
development: (1) The behavior of the individuals may be made entrepreneurial by
influencing the major factors of demand composition. (2) The behavior of the individual may
be made Entrepreneurial by influencing the major factors of demand composition. (4)
Opportunity competition is decided by various factors, like labour and labour market,
production methods, training opportunities, skills, etc. (5) Labor composition is operated by
various factors, like sources of livelihood, traditional approach, and aspirations of life, etc.
Hence, it may be said that the supply and development of the Entrepreneurs depend
upon aforesaid composition methods, assumptions, and their scope. The Entrepreneurship
depends upon the particular combination of circumstances, whose creation is difficult, but
their destruction is easy. In aforesaid physiological theories of entrepreneurship
development, Thomes Beagle and David P. Bayad have stated five dimensions of
entrepreneurial development: (1) Need for high achievement. (2) The Entrepreneur is
controlled by self, rather than by luck. (3) The entrepreneur always remains ready to take the
risk in anticipation of returns and assets. (4) The entrepreneur also remains ready to take the
uncertainties and ambiguities, because he knows that the work which is done for the first
time involves some uncertainties and ambiguities. (5) The behavior of the Entrepreneur may
include making hurry in almost all activities and feeling the pressure of time and sometimes
getting hyperactive and aggressive.
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GEC E1: Entrepreneurial Mind Module
Entrepreneurial Group Theory
This theory was propounded by Frank W. Young. The theory is based on the
assumption that expansion of entrepreneurial activities is possible only by entrepreneurial
groups. Because they have specialties is in the groups, and capacity to react. However, this
reactiveness is possible, when three conditions prevail simultaneously in society. (1) When
the group feels of low status. (2) When the group is not successful in reaching to important
social machinery. (3) When the group has better institutional resources as compared to other
groups.
Thus, it is evident that when any subgroup in a big society realizes low status and
position, then its capacity to react gives birth to Entrepreneurial behavior.
Social Change Theory
This theory of entrepreneurship development has been propounded by Max Weber.
For the first time, he stated that the emergence and development of the entrepreneurs
depend upon ethical values system of society. He is of the view that religion in which a person
survives and the religious values and faiths which he accepts, substantially affect his business
life, occupation, Entrepreneurial enthusiasm, and energy. He had linked entrepreneurship
development with protein (that sect of Christianity who does not accept the total authority
of pope) and with various religious communities. He observed that those religious
communities which lay emphasis on capitalism, materialism, and currency rationalization
have been successful in the emergence of entrepreneurs, wealth, technology, capital
formation, and economic development. It is evident that the Protestant society has been able
to achieve rapid economic progress.
Cultural Theory
This theory of entrepreneurial development was propounded by B.F. Hauslin. He is of
view that industrial entrepreneurial development is possible only that society, where social
procedures are unstable, alternatives of employment to persons are widely available and the
society which encourages personality development of enterprising persons. He explained
that the culturally marginal groups have special importance in encouraging economic
development of any Nation, the reason being that the marginal individuals are more capable
of Creative adjustments of the conditions of the circumstances and during the process of this
adjustment they make efforts to bring about real innovation social behavior. In addition, he
also laid the stress of developing individual qualities for entrepreneurial development.
Cultural Value Theory
Cultural value theory has developed by Kroken. He emphasized cultural values,
expected rules, and social approvals have specific importance in entrepreneur development.
In addition, Kroken also explained that the success of the entrepreneur and his performance
are influenced by the following 3 factors: (1) Entrepreneurs own inclination towards his
work and profession. (2) Expectations of acceptance groups regarding the role of the
entrepreneur. (3) Functional requirements of the work.
Thus, it may be said the Entrepreneurial development is significantly linked with the
environment.
Socio-Cultural Value Theory
This theory of entrepreneurship development was propounded by Stokes. He is of the
view that during the period of economic transition, socio-cultural values play a very
important role. The physiological factors encourage economic development by stimulating
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All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
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Page 8 of 87
GEC E1: Entrepreneurial Mind Module
entrepreneurship. According to him, ‘Mental thinking’ do create the directions of
entrepreneurial development, but group generated value Matrix has significant contribution
in attracting the entrepreneurship.
Economic Theory
This theory has been propounded by Pepuek and Hassis. Their assumption is that
physiological motivation for economic gains or increase in real income exists in every society.
In addition, he has also stated that economic motivations are sufficient conditions for
individual industrial entrepreneurship. But, if in spite of that, entrepreneurial response lacks
in the individuals, it is the result of various types of market imperfections and propositions
of policy determination. This theory is based on the assumption that entrepreneurial
development is the result of various economic motivations. Hence, the individuals enter into
the industrial field with the aim of maximum utilization of economic opportunities available
within the economy and the market.
Entrepreneurial Disposition Theory
Entrepreneurial disposition theory of entrepreneurship development has been
propounded by T.V.S. Rao. His assumption is courageous Entrepreneurial disposition is very
important for entrepreneurial development. Besides, for entrepreneurial establishments,
individual, physical, and orienting factors are also essential. According to Rao,
Entrepreneurial disposition includes factors like dynamic motivation, long-term devotion,
individual, social and physical sources and political system. These factors influence the
Entrepreneurial development and also promote industrial activities.
Process of Stage Theory
Within accepted theory, process or stage theory has been developed by Venkat Rao.
His assumption is that entrepreneurship development a process of five following stages: (1)
Simulation-in this stage, the environment is built for development of entrepreneurs, by way
of providing them various simulation. Various policy announcements are made in the
country, specific plans are prepared for development, wide publicity is done, support
institutions are established, entrepreneurial development programs are organized. All these
help in stimulating entrepreneurship. (2) Identification of Entrepreneurial Abilities and
Capacities in the Society-at this stage identification of entrepreneur is carried out and
advanced systems are adopted. The entrepreneurs are directed toward constructive
activities. The prospective Entrepreneur in various fields is identified. (3) Development and
Expansion of Entrepreneurs- at this stage, various programs are organized for the
development of entrepreneurs, which include vocational guidance programs, management
Training, and Technical training. In addition, various policies and programs are organized for
the expansion of industrial activities. (4) Promotion- at this stage, various support
organizations, like Central labor organizations, state-level organizations, and Research,
testing and Standards organizations, etc. are established for the expansion of economic
activities and entrepreneurial promotion. These organizations provide various types of
motivation, assistance, facilities, and services to entrepreneurs. (5) Follow Up-At the last
stage, follow-up of government programs and policies formulated for entrepreneurial
development is undertaken. The system of feedback is introduced for entrepreneurial
expansion and development.
Types of Entrepreneurial Ventures
Survival Ventures: Provide basic subsistence for the entrepreneur and his/her family,
in effect allowing for little more than a hand-to-mouth type of existence. The business may or
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All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
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Page 9 of 87
GEC E1: Entrepreneurial Mind Module
may not be formally registered, and typically has no premises, very few assets, no business
banking relationship, and operates on a cash or barter basis. As the business exists to provide
for basic personal financial needs, once costs are covered there is generally no capacity to
reinvest into the venture. Launch of the business is often necessity driven or motivated by
“push” factors, and the business generally operates in highly competitive, price-based, and
largely undifferentiated markets.
Lifestyle Ventures: Provide a relatively stable income stream for owners based on a
workable business model and a maintenance approach to management. Relatively modest
reinvestments are made to maintain competitiveness in a local market where the firm is
embedded. The venture typically has premises, usually a single location, and employees, but
does not seek meaningful expansion or growth. Numbers of employees remain relatively
constant. Given limited capacity, it is difficult for the venture to achieve economies in
operations.
Managed Growth Ventures: Has a workable business model and seeks stable growth
over time, as reflected in occasional new product launches, periodic entry into new markets,
steady expansion of facilities, locations and staff, and development of a strong local and
regional brand. Ongoing reinvestment in the business and continuous but moderate regional
growth guide ongoing business development.
Essential Characteristics and Social Networking
Many people offer advice about what it takes to be good at networking. This advice,
however, often lacks a key piece of information: what the average person thinks it takes to be
a better networker. Networking involves inter-acting with others, so what do most
businesspeople think it takes to successfully network? Let us underscore the importance: We
all need to be cognizant of other people's expectations and adjust our behavior accordingly if
we want to make a positive impression that will help build a powerful network. To that end,
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©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 10 of 87
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we gathered almost 3,400 survey responses from businesspeople around the world who
represent both genders (57% men, 43% women) and ages that span a person's entire career.
Six percent of respondents were under 30 while two percent were over 70. The bulk of
respondents (78%) were between the ages of 30 and 59. We gave them a list of roughly 20
different characteristics on networking and asked them to pick the top behaviors they would
like to see in a great networker. From those responses, we identified the top seven
characteristics that people believe make a great networker.
Here are those seven characteristics in order of importance, according to the survey
respondents.
1. Good listener.
Being a good listener tops the list. Our success in networking depends on how well we can
listen and learn. The faster you and your networking partner learn what you need to know
about each other, the faster you'll establish a valuable relationship. A good networker has two
ears and one mouth and should use them each proportionately. Listen to people's needs and
concerns and find opportunities to help them. You can't help others if you don't know what
they need, and you find out what they need by listening. In many ways, networking is about
connecting the dots, but to do that, you have to listen so you can help people make the
connections they're looking for.
2. Positive attitude.
The first thing that people see from you is your attitude, how you handle yourself day in and
day out. A consistently negative attitude makes people dislike you and drives away referrals;
a positive attitude makes people want to associate with you. Positive business professionals
are like magnets -- others want to be around them and will send their friends and family to
them.
3. Helps others/collaborative.
People don't care how much you know until they know how much you care. Helping people
shows that you care. People want to network with individuals who have a collaborative
attitude. Helping others can be done in a variety of ways, from emailing a helpful article to
someone to putting them in touch with a person who can help with a specific challenge.
Several respondents commented about not wanting to net-work with people who are in it for
themselves. A willingness to collaborate and help others is essential as it builds trust and
helps establish a strong relationship.
4. Sincere/authentic.
You can offer the help, the thanks and the listening ear, but if you're not sincerely interested
in the other person, they'll know it! Those who have developed successful networking skills
convey their sincerity at every turn. It's all about the authenticity that someone shows you.
We've all seen people who are seemingly good at networking but lack sincerity. Faking it isn't
sustainable -- and it doesn't work.
5. Follows up.
If you offer opportunities, whether it's a simple piece of information, a special contact or a
qualified business referral, to someone who consistently fails to follow up, you'll soon stop
wasting your time with this person. When it comes to networking, the fortune lies in the
follow-up and that many people just don't follow up anymore.
6. Trustworthy.
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All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
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Page 11 of 87
GEC E1: Entrepreneurial Mind Module
It doesn't matter how successful the person is; if I don't trust them, I don't work with them.
When you refer someone, you're putting your reputation on the line. You have to be able to
trust your referral partner and be trusted in return. Neither you nor anyone else will refer a
contact to someone who can't be trusted to handle it well.
7. Approachable.
People will forget what you said and what you did, but they'll never forget how you made
them feel. In other words, when you're approachable, people feel comfortable. When they
feel com-fortable, relationships are born. That's why effective network-ing always starts with
approachability.
Each one of the characteristics above tie into the notion of building mutually
beneficial business relationships. Only then will you succeed in creating a powerful network.
The Entrepreneurial Process
The four stages of the entrepreneurial process are defined as follows:
1. Innovation, which includes generating the idea, innovation, identifying a market
opportunity, information search, conception, screening ideas for feasibility, identifying
where to extract value and the development of the product or service.
2. Triggering event, which includes gestation, the motivation to start a business, the decision
to proceed, the business planning, identifying the different resources required, risk
assessment, resource acquisition and assembling.
3. Implementation, which includes infancy, incorporation, setting up and launching the new
venture, business strategy, implementing the business plan, running the business, deploying
of resources, building success and managing the venture.
4. Growth which includes adolescence, maximizing profits, harvesting the rewards and
continually growing the venture to include other opportunities.
References
https://wikifinancepedia.com/
Aparna
J.,
2019,
Theories
of
Entrepreneurship
retrieved
from:
https://www.economicsdiscussion.net
Googlesir, 2020, retrieved from:https://www.googlesir.com/theories-of-entrepreneurship/
Michael H. Morris, Xaver Neumeyer, Yongseok Jang , Donald F. Kuratko, 2016,
Distinguishing Types of Entrepreneurial Ventures: An Identity-Based Perspective:
JOURNAL
OF
SMALL
BUSINESS
MANAGEMENT
retrieved
from:
https://www.researchgate.net/publication/308090224_Distinguishing_Types_of_Entre
preneurial_Ventures_An_IdentityBased_Perspective_JOURNAL_OF_SMALL_BUSINESS_MANAGEMENT/link
Misner Ivan, 2017, The 7 Characteristics of a Great Networker, retrieved from
https://www.entrepreneur.com/
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 12 of 87
GEC E1: Entrepreneurial Mind Module
Assessing Learning
a. Post Test
Activity 1
Name:
Course/Year/Section:
Directions: Encircle the correct answer
Date:
Score:
1. What are the wealth creation strategies for a company? Select all that apply.
a.
b.
c.
d.
e.
f.
Employees
Building
Land
Inventory
Machinery
House loan
2. It is defined as the creation or extraction of value; viewed as change, which may include
other values than simply economic ones.
a.
b.
c.
d.
Wealth creation
Entrepreneurship
Assets
Liability
3. Its main objective behind the arms is to earn profits, by way of search of new raw
materials, new sources, new machinery, and production of new products, new methods of
production, new workers and providing consumer satisfaction.
a.
b.
c.
d.
Innovation Theory
Theory of Need of Achievement
Theory of Recover the Withdrawal of Status
Behavior Theory
4. This theory was propounded by John Kunkel. He assumes that the entrepreneurial
development of any society depends upon its past and exiting economic social aspirations.
a.
b.
c.
d.
Innovation Theory
Theory of Need of Achievement
Theory of Recover the Withdrawal of Status
Behavior Theory
5. The assumption of this theory is that the Desire of high achievements obtaining
specific achievements, making the best performance, touching the heights of excellence,
developed Entrepreneurial tendencies in the individuals.
a.
b.
c.
d.
Innovation Theory
Theory of Need of Achievement
Theory of Recover the Withdrawal of Status
Behavior Theory
________________________________________________________________
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All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 13 of 87
GEC E1: Entrepreneurial Mind Module
6. This theory is based on the assumption that expansion of entrepreneurial activities is
possible only by entrepreneurial groups.
a.
b.
c.
d.
Social Change Theory
Entrepreneurial Group Theory
Cultural Value Theory
Entrepreneurial Disposition Theory
7. This theory includes factors like dynamic motivation, long-term devotion, individual,
social and physical sources and political system.
a.
b.
c.
d.
Social Change Theory
Entrepreneurial Group Theory
Cultural Value Theory
Entrepreneurial Disposition Theory
8. This theory of entrepreneurship development was propounded by Stokes .He is of the
view that during the period of economic transition, socio-cultural values play a very
important role. The physiological factors encourage economic development by
stimulating entrepreneurship.
a.
b.
c.
d.
Social Change Theory
Socio-Cultural Value Theory
Cultural Value Theory
Cultural Theory
9. Which one refers to a relatively stable income stream for owners based on a workable
business model and a maintenance approach to management?
a.
b.
c.
d.
Survival Ventures
Managed Growth Ventures
Lifestyle Ventures
Aggressive Growth Ventures
10. This venture has a workable business model and seeks stable growth over time, as
reflected in occasional new product launches, periodic entry into new markets, and
steady expansion of facilities, locations and staff, and development of a strong local and
regional brand.
a.
b.
c.
d.
Survival Ventures
Managed Growth Ventures
Lifestyle Ventures
Aggressive Growth Ventures
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 14 of 87
GEC E1: Entrepreneurial Mind Module
b. Narrative Report
Activity 2
Name:
Course/Year/Section:
Date:
Score:
Directions: Write a Narrative Report of an interview of an entrepreneur nurse. Present an Online report of what your-manager-interviewee has
shared and cite situations wherein the different management functions were carried out. Note: Should be an entrepreneur nurse.
CRITERIA
Content &
Development
POOR
Does not meet assignment
objectives 5 pts
• The content is incomplete.
• Major points are not clear and /or
persuasive.
• Questions were not adequately
answered.
Organization &
Structure
• Organization and structure
detract from the message of the
writer.
• Paragraphs are disjointed and
lack transition of thoughts.
Format
• Paper lacks many elements of
correct formatting.
• Paper is inadequate/excessive in
length.
• Paper is not double spaced
Grammar,
Punctuation &
Spelling
Timeliness
• The paper contains numerous
grammatical, punctuation, and
spelling errors.
• The language uses jargon or
conversational tone.
• Submit 3 days or 1 week after the
deadline.
FAIR
Assignment objectives partially met
10 pts
• The content is not accurate.
• Major points are addressed, but
not well supported.
• Responses are inadequate or do
not address assignment.
• Content is inconsistent about the
purpose and clarity of thought.
GOOD
Meets assignment objectives
15 pts
• The content is accurate.
• Major points are stated.
• Responses are adequate
and address assignment.
• The content and purpose
of the writing are clear.
• The structure of the paper is not
easy to follow.
• Paragraph transitions need
improvement.
• The conclusion is missing, or if
provided, does not flow from the
body of the paper.
• Paper follows most guidelines.
• Paper is over/ under word length.
• The structure is mostly
clear and easy to follow.
• Paragraph transitions are
present.
• The conclusion is logical.
• The paper contains a few
grammatical, punctuation, and
spelling errors.
• The language lacks clarity or
includes the use of some jargon or
conversational tone.
• Submit 2 days after the deadline.
• Rules of grammar, usage,
and punctuation are
followed with minor
errors.
• The spelling is correct.
• Rules of grammar, usage, and punctuation
are followed; spelling is correct.
• Language is clear and precise; sentences
display consistently strong, varied
structure.
• Submit 1 day after the
deadline.
• Submit on time.
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
• Paper follows designated
guidelines.
• Paper is the appropriate
length as described for the
assignment.
• The format is good.
EXCELLENT
Exceeds assignment objectives 20 pts
POINTS
• Content is comprehensive and accurate.
• Major points are stated clearly and are well
supported.
• Responses are excellent, timely, and
address assignments including course
concepts.
• The content and purpose of the writing are
clear.
• The structure of the paper is clear and easy
to follow.
• Paragraph transitions are logical and
maintain the flow of thought throughout
the paper.
• The conclusion is logical and flows from the
body of the paper.
• Paper follows all designated guidelines.
• Paper is the appropriate length as
described for the assignment.
• The format enhances the readability of the
paper.
Page 15 of 87
GEC E1: Entrepreneurial Mind Module
_________________________________________________________________________________________________________
UNIT II. ENTREPRENEURSHIP: MYTHS-MINDSET MANDATE
Overview
Roughly one in every 18 people worldwide owns his or her own business. Some
launch a company to pursue opportunity, while others — including many entrepreneurs in
developing countries — do so out of sheer necessity, because it’s the most promising way to
earn a living in their region. Whatever their location or motivation, every would-be
entrepreneur can benefit from learning what the role really entails.
Learning Objectives
________
At the end of this unit, I am able to:
1. identify myths and misconceptions that surround entrepreneurship;
2. identify the skills of a nursing entrepreneurship;
3. evaluate the scope of practice of nursing entrepreneur;
4. identify projects of Department of Labor and Employment for Entrepre-Nurse; and
5. apply ethics for entrepreneurs.
Motivational Activity
Name:
Course/Year/Section:
Date:
Directions: Arrange the words to form a meaningful sentence. Write your answer on the
space provided below.
only
have
entrepreneurs
certain
people
natural
are
born
talents
that
way
can
who
be
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 16 of 87
GEC E1: Entrepreneurial Mind Module
Lesson Proper
Most Common Entrepreneurship Myths
The following list provides some of the most common assumptions about
entrepreneurs and explains why they’re wrong.
1. Entrepreneurs are born that way. Many people assume that entrepreneurs are born that
way — and that only people who have certain natural talents can be entrepreneurs. However,
the truth is that almost anyone can become an entrepreneur if they can learn the necessary
skills. True, some people may adjust to the demands of the role more quickly, but there’s no
rule that says only certain types of people can found companies. Entrepreneurs may be
gregarious extroverts or quiet introverts; they may be “big picture” thinkers or more focused
on the details of executing an idea. Entrepreneurism is a learned skill, not a natural-born
ability.
2. The only requirement is a good idea. Many people also believe that all it takes to live the
American dream is to have that one fantastic idea for a company. While the notion isn’t
entirely false, it is misleading. Even the very best ideas — ones with the potential to disrupt
an entire industry — need proper execution to become reality. Ideas are important, but so
are planning, talent, leadership, communication, and a host of other factors.
3. Starting a new business guarantees freedom. The appeal of breaking out of the traditional,
40-hour work week draws many to the prospect of starting their own business. What lots of
people find is that while they leave behind their old schedule and creative limitations, they
exchange them for new demands. Sure, there will be more freedom in some respects, but
entrepreneurism often requires great sacrifices. It can consume every part of your waking
life; the work doesn’t end when the clock strikes 5 p.m.
4. Launching a company quickly leads to wealth. Some entrepreneurs mistakenly believe that
starting a business will put them on the fast track to earning substantial amounts of money
— fast. Although some companies are immediately successful, others take a little more time
to get there. Properly timing the expansion of the company and sustaining growth are two of
the entrepreneur’s biggest tasks.
5. Only money motivates employees. A myth related to the “get rich quick” idea is the
assumption that money is the best way to motivate employees. Recent statistics have shown
that Millennials, who are quickly becoming the majority in the workplace, would rather earn
less at a job they enjoy than secure a higher wage doing something they hate. Overcoming
this misconception puts a heavy obligation on the entrepreneur to develop not only a
business model that generates revenue, but also a company culture that engages employees.
6. Businesses either flourish or fail. Because the select few startups that skyrocket out of the
gate receive the bulk of the press, it’s easy to adopt an all-or-nothing outlook on
entrepreneurism. The overall high failure rate for new businesses may seem to confirm this
idea. However, entrepreneurs need to understand that there’s a lot of patience and strategy
involved in getting a company off the ground and keeping it afloat. Some companies that
initially falter, or that have lackluster growth rates at the start, go on to achieve healthy
growth.
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 17 of 87
GEC E1: Entrepreneurial Mind Module
7. All responsibility falls on the entrepreneur. Another misconception about running a new
business is that everything depends solely on the entrepreneur. This might be true at the
earliest stages, but taking this idea too seriously is also the best way to guarantee burnout.
Collaboration and the art of delegation figure strongly in the health of a company. No one can
do it all alone.
8. There’s a secret, “silver bullet” key to success. In business, many successful entrepreneurs
promote the impression that they’ve found some kind of secret key to success. However, this
doesn’t take into account the entrepreneur’s previous ideas that failed; the old-fashioned
hard work and patience they put in; or any of the many other factors that are necessary to
build a strong company. The reality is that a single key to success does not exist. If anything,
entrepreneurial success requires a keychain of different ideas, people, and resources that
must come together at the right time and place.
9. Businesses need someone with an MBA at the helm. Confusing value and necessity is a
mistake when it comes to entrepreneurs and business degrees. On the one hand, a formal
education provides immeasurable benefits. On the other, the market does not require
entrepreneurs to have an MBA or other business degree. Some startup owners have degrees
in subjects like engineering, for instance; they use their deep technical knowledge to identify
gaps in technology and devise solutions. Other successful startup founders have no degree at
all.
10. Quitting is for losers. One final misconception is the idea that entrepreneurs have to stick
everything out — no matter what. But the fact is that not every idea will blossom into a
sustainable company. Successful entrepreneurs often cycle through and try out many ideas
before they find one that has legs. Quitting might look like failure, but really, it’s a common
part of the entrepreneur’s journey and can provide incredibly important lessons. Knowing
when to walk away and move on to the next idea is therefore critical.
Project Entrepre-Nurse of DOLE
An initiative of DOLE, in collaboration with BON-PRC, DOH, PNA, UPCN, OHNAP and
other government and non-government entities to promote nurse entrepreneurship by
introducing a home health care industry in the Philippines: (1)to reduce the cost of health
care for the country’s indigent population by bringing primary health care services to poor
rural communities, (2)to maximize employment opportunities for the country’s unemployed
nurses and to utilize the country’s unemployed human resources for health for the delivery
of public health services and the achievement of the country’s Millennium Development Goals
on maternal and child health, consistent with the Formula One for Health framework of the
Department of Health.
The Davao Region will be the pilot area for the program wherein there will be one
nurses’ cooperative for each of the five provinces and one for Davao City. It is chosen as the
pilot area because the idea for the program was conceptualized by Dole regional Director
Jalilo dela Torre. Nearly 500 nurses in Region 11 have now banded together to form nurses
cooperatives and are busy complying with the requirements for registration with the
Cooperative Development Authority as a cooperative. After registration, they will be assisted
by MASICAP to put together business plans that they can use to ask for grants from
government and non-government sources. Among the potential sources of revenues for the
cooperatives are the local government units, Philhealth’s capitation fund, foreign donors and
migrant Filipino organizations abroad. The DOH will be a critical partner as source of data on
the status of health services delivery in poor rural communities. Even before CDA
registration, the Davao del Norte group, buoyed by the expression of total support by
________________________________________________________________
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All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 18 of 87
GEC E1: Entrepreneurial Mind Module
Governor Rodolfo del Rosario, have already started negotiating with local chief executives,
with successful results. The program’s strategy is to encourage nurses to form cooperatives
with a minimum number of nurse members of 500 and manage nurses’ clinic, under the
supervision of trained and experienced nurses, which will deploy newly licensed nurses to
poor rural communities with little or no access to basic health care.
Ethics for Entrepreneurs
Successful entrepreneurs operate on sound business ethics which are approved and
accepted in any society. Entrepreneurial Ethics are those codes of conduct, employed by
entrepreneurs which impact society positively, thereby increasing the entrepreneur’s
chances for greater success. Entrepreneurial ethics would lead to positive attitudes towards
raising successful entrepreneurs, who would, in turn, build entrepreneurial institutions for
societal growth and advancement. When entrepreneurial ethics are practiced and visible, the
entrepreneurs and their team, work with great zeal, dedication, and purposefulness, to
achieve the organization’s objectives, and together, they work for the common good of all. It
can be clearly seen that when good entrepreneurial ethics are demonstrated, businesses can
handle or tackle difficulty when they arise. A healthy entrepreneurial spirit is certainly a
viable option for many countries facing unemployment crisis, especially in the third world
countries. Entrepreneurial ethics, combined with integrity and all the right motives, would
allow for economic growth and gradual development throughout the primary, secondary and
tertiary sectors in the economy. Sound Entrepreneurial ethics helps to develop relationships
built on mutual trust and respect. Without this trust, businesses will not survive; investments
will not be made. Successful business empires have gained credibility and reliance as a result
of their sound ethical entrepreneurial practices. Ethical Entrepreneurial practices bring forth
positivity with the vision and mission of an organization. It, therefore, necessitates a great
sense of self-discipline and humility which grows small businesses into successful empires.
The Importance of Ethics in Key areas of Business
Integrity- Hand in hand with entrepreneurial ethics is integrity in business. It is
important that entrepreneurs today don’t get caught up in moneymaking schemes and lose
sight of the importance of doing the right thing for the common good. Any entrepreneur who
willfully and dishonestly engages in business activity with the motive of ripping people off or
profiting at the expense of others, creates a harmful business environment of distrust and
antagonism. When you build a business on integrity, and set off with an attitude of nobility,
humility and service, and the intention of making a living by providing your community with
needed goods and services, you contribute to, rather than detract from, the general good. An
early and consistent stand against questionable conflicts of interest is an important aspect of
any entrepreneur’s ethics effort.
Labour -How a company treats its workers is a good indication of its ethical practices.
An entrepreneur who sets out to cheat or underpay his employees will indefinitely cause his
organization to suffer and be subject to high staff turnover, low morale, dishonesty among
other negative things that could cause the downfall of the business. It is important to treat all
employees well as they represent the business daily, but it will also benefit the entrepreneur
because most people are more likely to reciprocate what behaviours and attitudes they
receive. It goes without saying, that when good work habits are developed and practiced by
all within an organization, a special bond is formed and a loyalty to the company becomes
apparent. Entrepreneurs who manage to keep open lines of communication with their
employees, grow to understand their feelings about things taking place within the workplace,
________________________________________________________________
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including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 19 of 87
GEC E1: Entrepreneurial Mind Module
and they work together to ensure that everyone is in alignment to benefit from their
association with the organization.
Clientele-Your clients are your key stakeholders and it should be quite obvious as to
how dependent your business is on its customers. The entrepreneur today should seek out
the opportunity to personally treat all clients well, and express great and humble
appreciation when they support your business. The ideal way to do this is to always strive to
provide goods and services that are of the best quality and service, as good as you can make
or get them, for your clients. An entrepreneur with an honest motive and good ethical sense
will realize that doing and giving the best to clients every day is not only a good business
decision, but a wise and ethical choice as well.
Environment- It is difficult, and possibly unavoidable, to engage in business while
having no impact on the environment. Even if you’re in the craft business, your clients are
looking on to see how you utilize resources or recycle products. If you are truly invested in
reducing your business’s Eco-footprint, then you can have a much greater impact, not just in
the business world, but in the community and environment as a whole. The ethical
entrepreneur today should explore, welcome, and employ the many ways that a business can
reduce its Eco-footprint on the environment, including recycling, reducing energy waste,
carpooling, minimizing paper packaging and usage, and reducing wasteful business practices
among other things.
While all of these activities have a practical basis, in that they protect the environment
and the public reputation of your business, they also have a great impact and influence on
others. When entrepreneurs model environmental ethics and encourage Eco-friendly
practices, others are likely to follow suit. Organizational Ethics should not only be practiced
by larger businesses. In fact, the entrepreneur today can consciously choose to make ethics a
part of their business plan. Start-ups can create and effectively commit to sound ethical
practices.
Entrepreneurs must first recognize that there are ethical dilemmas surrounding them
within the culture of entrepreneurship. They must decide to make ethics a principle value of
their business’s objectives and mission. The entrepreneur today should embrace doing
business ethically in order to improve their standards. Good business ethics should be visible
to all who come into contact with the business. Ethical policies should be included in business
plans, in the business’s mission statements, and in all other business documents. The ethical
entrepreneur ought to seek out favorable opportunities to make his or her ethical
commitment bona fide. It is the business of an entrepreneur to communicate clearly to all,
from the initial stages of business, the ethical standards they employ. This entrepreneur will
no doubt enjoy both financial success and a superb reputation. The ethically made
entrepreneur should be un-naively aware of the inevitable and unavoidable tensions in the
business world, and anticipate these tensions not with fear, but with resilience, and so be able
to put in place, a reasonable action plan that helps the entire team to deal with these tensions
before the situations are actually encountered. This practice should be included in the
business’s plan and mission and become part of a more formal “ethics training” for all. Not
every situation can be anticipated, but the ethical entrepreneur must always keep an opendoor policy so that new and uncommon ethical issues can be worked out as they arise. The
ethical entrepreneur looks for opportunities to engage the business as a whole and align them
to the community and its needs. This aids in team building and strengthening interpersonal
relationships. The ethical entrepreneur thinks and talks about the ethical values that matter
at any given opportunity. The frantic and elaborate, rapid growth of start-ups makes it easy
________________________________________________________________
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All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 20 of 87
GEC E1: Entrepreneurial Mind Module
to submit to the temptations of malpractices in order to stay alive in this highly competitive
business world. Always keep your objectives clear in front of you and visible for all to see and
acknowledge. The ethical entrepreneur challenges growth and renews the commitment to
ethical practices. Businesses change as they grow, and so to, do their objectives. As the
entrepreneur and his/her business grows, re-valuation is important and needed where ethics
is concerned. Ethical values and the commitment to continued ethical practices must be
reworked and re-communicated every time change occurs, thereby preparing all involved in
the business to deal with the changing and evolving ethical dilemmas. The ethical
entrepreneur looks for opportunities to engage the business as a whole and align them to the
community and its needs.
The rewards of being an ethical start-up are many. Personal and business success is
accomplished, and client and team satisfaction is the most prominent benefit for all. Everyone
feels better about themselves and the butterfly effect happens magically as everyone freely
and satisfyingly chose to act ethically in their dealings with others. For the individual
entrepreneur, a reputation for much needed ethical practices can place your business on the
top lists of ethical businesses with which others will unhesitatingly choose to do business
with, increasing your opportunities for successful business partnerships. It is imperative, that
the entrepreneur today understand that the business they run has responsibilities to
everyone.
References
Keith Kratch, 2017, 10 of the Most Common Entrepreneurship Myths, retrieved from
https://medium.com/@KeithKrach/10-of-the-most-common-entrepreneurship-mythswww.dole.gov.ph
Cherise Castle-Blugh, 2018, THE TIMELY ENTREPRENEUR retrieved from
https://www.desientrepreneurs.com
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 21 of 87
GEC E1: Entrepreneurial Mind Module
Assessing Learning
a. post test
Activity 3
Name:
Course/Year/Section:
Date:
Score:_________________
Directions: Match the myths and misconceptions that surround entrepreneurship and the
explanations why they’re wrong.
___1. Entrepreneurs are The reality is that a single key to success does not exist. If
born that way
anything, entrepreneurial success requires a keychain of
different ideas, people, and resources that must come
together at the right time and place.
___2. Starting a new One final misconception is the idea that entrepreneurs have
business
guarantees to stick everything out — no matter what. Knowing when
freedom
to walk away and move on to the next idea is therefore
critical.
___3.
Only
money Entrepreneurs need to understand that there’s a lot of
motivates employees
patience and strategy involved in getting a company off the
ground and keeping it afloat. Some companies that initially
falter, or that have lackluster growth rates at the start, go
on to achieve healthy growth.
___4. Businesses either Recent statistics have shown that Millennials, who are
flourish or fail
quickly becoming the majority in the workplace, would
rather earn less at a job they enjoy than secure a higher
wage doing something they hate.
___5. Quitting is for losers The truth is that almost anyone can become an
entrepreneur if they can learn the necessary skills.
___6. There’s a secret, What lots of people find is that while they leave behind their
“silver bullet” key to old schedule and creative limitations, they exchange them
success
for new demands. Sure, there will be more freedom in some
respects, but entrepreneurism often requires great
sacrifices. It can consume every part of your waking life; the
work doesn’t end when the clock strikes 5 p.m.
b. reflection
Activity 4
Name:
Course/Year/Section:
Date:
Score:_________________
Directions: Write a 100 words reflection paper about ethics for entrepreneurs. Use
short bond paper.
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 22 of 87
GEC E1: Entrepreneurial Mind Module
_________________________________________________________________________________________________________
UNIT III. PROBLEM-SOLVING STRATEGIES
Overview
Problem-solving is one of the most important aspects of entrepreneurship. As both
the founder of your organization and the leader of your team, you'll be responsible for
identifying and solving the problems of your customers, partners, employees and your
company, in general.
Learning Objectives
________
At the end of this unit, I am able to:
1. identify different problem-solving strategies in business ventures;
2. apply the different problem-solving strategies; and
3. present different business strategies using the following: SWOT Analysis, Ishikawa
Diagram, Michael Porter’s Five Forces Strategies Blue and Ocean Strategy.
Motivational Activity
Name:
Course/Year/Section:
Date:
Directions: Write short sentences that first come in your mind when you look at
the picture below.
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Page 23 of 87
GEC E1: Entrepreneurial Mind Module
Lesson Proper
Problem Solving Techniques
Entrepreneurs who are great problem solvers within any business are the best
prepared to solve their customers’ needs effectively as well. In fact, every business is about
solutions to customer problems – no problems, no business. Problems are an everyday part
of every business and personal environment. Thus, it behooves all of us work on mastering
the discipline of problem solving. Here is a formula from Brian Tracy, in his book “The Power
of Self-Discipline” that I believe will help entrepreneurs move up a notch in this category:
Take the time to define the problem clearly. Many executives like to jump into
solution mode immediately, even before they understand the issue. In some cases, a small
problem can become a big one with inappropriate actions. In all cases, real clarity will
expedite the path ahead.
Pursue alternate paths on “facts of life” and opportunities. Remember, there are some
things that you can do nothing about. They’re not problems; they are merely facts of life.
Often, what appears to be a problem is actually an opportunity in disguise.
Challenge the definition from all angles. Beware of any problem for which there is
only one definition. The more ways you can define a problem, the more likely it is that you
will find the best solution. For example, “sales are too low” may mean strong competitors,
ineffective advertising, or a poor sales process.
Iteratively question the cause of the problem. This is all about finding the root cause,
rather than treating a symptom. If you don’t get to the root, the problem will likely recur,
perhaps with different symptoms. Don’t waste time re-solving the same problem.
Identify multiple possible solutions. The more possible solutions you develop, the
more likely you will come up with the right one. The quality of the solution seems to be in
direct proportion to the quantity of solutions considered in problem solving.
Prioritize potential solutions. An acceptable solution, doable now, is usually superior
to an excellent solution with higher complexity, longer timeframe, and higher cost. There is a
rule that says that every large problem was once a small problem that could have been solved
easily at that time.
Make a decision. Select a solution, any solution, and then decide on a course of action.
The longer you put off deciding on what to do, the higher the cost, and the larger the impact.
Your objective should be to deal with 80% of all problems immediately. At the very least, set
a specific deadline for making a decision and stick to it.
Assign responsibility. Who exactly is going to carry out the solution or the different
elements of the solution? Otherwise nothing will happen, and you have no recourse but to
implement all solutions yourself.
Set a measure for the solution. Otherwise, you will have no way of knowing when and
whether the problem was solved. Problem solutions in a complex system often have
unintended side effects which can be worse than the original problem.
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Page 24 of 87
GEC E1: Entrepreneurial Mind Module
People who are good at problem solving are some of the most valuable and respected
people in every area. In fact, success if often defined as “the ability to solve problems.” In
many cultures, this is called “street smarts,” and it’s valued even more than “book smarts.”
The best entrepreneurs have both.
SWOT ANALYSIS
A SWOT analysis is a compilation of your company's strengths, weaknesses,
opportunities and threats. The primary objective of a SWOT analysis is to help organizations
develop a full awareness of all the factors involved in making a business decision. Perform a
SWOT analysis before you commit to any sort of company action, whether you are exploring
new initiatives, revamping internal policies, considering opportunities to pivot or altering a
plan midway through its execution. Use your SWOT analysis to discover recommendations
and strategies, with a focus on leveraging strengths and opportunities to overcome
weaknesses and threats. To run a successful business, you should regularly analyze your
processes to ensure you are operating as efficiently as possible. While there are numerous
ways to assess your company, one of the most effective methods is to conduct a SWOT analysis.
A SWOT (strengths, weaknesses, opportunities and threats) analysis is a planning
process that helps your company overcome challenges and determine what new leads to
pursue. The primary objective of a SWOT analysis is to help organizations develop a full
awareness of all the factors involved in making a business decision. This method was created
in the 1960s by Albert Humphrey of the Stanford Research Institute, during a study conducted
to identify why corporate planning consistently failed. Since its creation, SWOT has become
one of the most useful tools for business owners to start and grow their companies.
You can employ a SWOT analysis before you commit to any sort of company action,
whether you are exploring new initiatives, revamping internal policies, considering
opportunities to pivot or altering a plan midway through its execution. Sometimes it's wise to
perform a general SWOT analysis just to check on the current landscape of your business so
you can improve business operations as needed. The analysis can show you the key areas
where your organization is performing optimally, as well as which operations need
adjustment. Don't make the mistake of thinking about your business operations informally, in
hopes that they will all come together cohesively. By taking the time to put together a formal
SWOT analysis, you can see the whole picture of your business. From there, you can discover
ways to improve or eliminate your company's weaknesses and capitalize on its strengths.
While the business owner should certainly be involved in creating a SWOT analysis, it is often
helpful to include other team members in the process. Ask for input from a variety of team
members and openly discuss any contributions made. The collective knowledge of the team
will allow you to adequately analyze your business from all sides.
Characteristics of a SWOT analysis
A SWOT analysis focuses on the four elements of the acronym, allowing companies to
identify the forces influencing a strategy, action or initiative. Knowing these positive and
negative elements can help companies more effectively communicate what parts of a plan
need to be recognized. When drafting a SWOT analysis, individuals typically create a table
split into four columns to list each impacting element side by side for comparison. Strengths
and weaknesses won't typically match listed opportunities and threats verbatim, although
they should correlate, since they are ultimately tied together.
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Internal factors
Strengths (S) and weaknesses (W) refer to internal factors, which are the resources
and experience readily available to you. These are some commonly considered internal
factors: Financial resources (funding, sources of income and investment opportunities);
Physical resources (location, facilities and equipment); Human resources (employees,
volunteers and target audiences); Access to natural resources, trademarks, patents and
copyrights; Current processes (employee programs, department hierarchies and software
systems)
External factors
External forces influence and affect every company, organization and individual.
Whether these factors are connected directly or indirectly to an opportunity (O) or threat (T),
it is important to note and document each one. External factors are typically things you or
your company do not control, such as the following: Market trends (new products, technology
advancements and shifts in audience needs); Economic trends (local, national and
international financial trends); Funding (donations, legislature and other sources);
Demographics; Relationships with suppliers and partners; Political, environmental and
economic regulations
After you create your SWOT framework and fill out your SWOT analysis, you will need
to come up with some recommendations and strategies based on the results. These strategies
should focus on leveraging strengths and opportunities to overcome weaknesses and threats.
The SWOT analysis is a simple but comprehensive strategy for identifying not only
the weaknesses and threats of an action plan but also the strengths and opportunities it
makes possible. However, a SWOT analysis is just one tool in your business strategy.
Additional analytic tools to consider include the PEST analysis (political, economic, social and
technological), MOST analysis (mission, objective, strategies and tactics) and SCRS analysis
(strategy, current state, requirements and solution). Consistent business analysis and
strategic planning is the best way to keep track of growth, strengths and weaknesses. Use a
series of analysis strategies, like SWOT, in your decision-making process to examine and
execute strategies in a more balanced, in-depth way.
Ishikawa Diagram
An Ishikawa diagram is a diagram that shows the causes of an event and is often used
in manufacturing and product development to outline the different steps in a process,
demonstrate where quality control issues might arise and determine which resources are
required at specific times. The Ishikawa diagram was developed by Kaoru Ishikawa during
the 1960s as a way of measuring quality control processes in the shipbuilding industry.
An Ishikawa diagram is used to show the causal factors that go into some final outcome,
often related to a production or design problem.
Shaped somewhat like a fish, these charts are sometimes called 'Fishikawa' diagrams.
Ishikawa diagrams follow a series of eight steps to construct.
Understanding Ishikawa Diagrams
Ishikawa diagrams are sometimes referred to as fish bone diagrams, herringbone
diagrams, cause-and-effect diagrams, or Fishikawa. They are causal diagrams created
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GEC E1: Entrepreneurial Mind Module
by Kaoru Ishikawa to show the causes of a specific event. They resemble a fish skeleton, with
the "ribs" representing the causes of an event and the final outcome appearing at the head of
the skeleton. The purpose of the Ishikawa diagram is to allow management to determine
which issues have to be addressed in order to gain or avoid a particular event.
Other common uses of the Ishikawa diagram include using it as a methodology for
creating product designs that solve practical problems. It can also be used in quality defect
prevention to identify potential factors causing an overall effect. Each cause or reason for
imperfection is a source of variation. Causes are usually grouped into major categories to
identify and classify these sources of variation.
Process to Make an Ishikawa Diagram
To make an Ishikawa Diagram, a group will need a white board, flip chart and some
marking pens.
1. The group should agree on a problem statement (effect).
2. Write the problem statement at the center right of the flipchart or whiteboard, box it
and draw a horizontal arrow running to it.
3. Brainstorm the primary categories of causes for the problem. For instance, it might
make sense to start with these generic headings: methods, machines (equipment),
people (manpower), materials, measurement, and environment.
4. Write the categories of causes as branches from the main arrow.
5. Brainstorm possible causes. Ask: “Why does this happen?” As each idea is given, the
facilitator writes it as a branch from the appropriate category. Causes can be written
in several places, if they relate to several categories.
6. Ask the question “why does this happen?” again. Write sub–causes branching off the
causes. Continue to ask “Why?” and generate deeper levels of causes. Layers of
branches indicate causal relationships.
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Page 27 of 87
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7. When the group runs out of ideas, focus attention to areas in the chart where ideas
are thin.
Michael Porter’s Five Forces Strategies
Porter's Five Forces is a simple but powerful tool for understanding the
competitiveness of your business environment, and for identifying your strategy's potential
profitability. This is useful, because, when you understand the forces in your environment or
industry that can affect your profitability, you'll be able to adjust your strategy accordingly.
For example, you could take fair advantage of a strong position or improve a weak one, and
avoid taking wrong steps in future.
Understanding Porter's Five Forces
The tool was created by Harvard Business School professor Michael Porter, to analyze
an industry's attractiveness and likely profitability. Since its publication in 1979, it has
become one of the most popular and highly regarded business strategy tools. Porter
recognized that organizations likely keep a close watch on their rivals, but he encouraged
them to look beyond the actions of their competitors and examine what other factors could
impact the business environment. He identified five forces that make up the competitive
environment, and which can erode your profitability. These are:
1.Competitive Rivalry. This looks at the number and strength of your competitors.
How many rivals do you have? Who are they, and how does the quality of their
products and services compare with yours?
Where rivalry is intense, companies can attract customers with aggressive price cuts
and high-impact marketing campaigns. Also, in markets with lots of rivals, your
suppliers and buyers can go elsewhere if they feel that they're not getting a good deal
from you.
2.Supplier Power. This is determined by how easy it is for your suppliers to increase
their prices. How many potential suppliers do you have? How unique is the product
or service that they provide, and how expensive would it be to switch from one
supplier to another?
The more you have to choose from, the easier it will be to switch to a cheaper
alternative. But the fewer suppliers there are, and the more you need their help, the
stronger their position and their ability to charge you more. That can impact your
profit.
3.Buyer Power. Here, you ask yourself how easy it is for buyers to drive your prices
down. How many buyers are there, and how big are their orders? How much would it
cost them to switch from your products and services to those of a rival? Are your
buyers strong enough to dictate terms to you?
When you deal with only a few savvy customers, they have more power, but your
power increases if you have many customers.
4.Threat of Substitution. This refers to the likelihood of your customers finding a
different way of doing what you do. For example, if you supply a unique software
product that automates an important process, people may substitute it by doing the
process manually or by outsourcing it. A substitution that is easy and cheap to make
can weaken your position and threaten your profitability.
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5.Threat of New Entry. Your position can be affected by people's ability to enter your
market. So, think about how easily this could be done. How easy is it to get a foothold
in your industry or market? How much would it cost, and how tightly is your sector
regulated?
Blue Ocean Strategy
Blue Ocean Strategy is a book published in 2004 written by W. Chan Kim and Renée
Mauborgne, professors at INSEAD,and the name of the marketing theory detailed on the book.
They assert that these strategic moves create a leap in value for the company, its buyers, and
its employees while unlocking new demand and making the competition irrelevant. The book
presents analytical frameworks and tools to foster an organization's ability to systematically
create and capture "blue oceans"—unexplored new market areas.[2] An expanded edition of
the book was published in 2015, while a sequel entitled Blue Ocean Shift was published in
2017.
The book is divided into three parts:
1. The first part presents key concepts of blue ocean strategy, including Value Innovation – the
simultaneous pursuit of differentiation and low cost – and key analytical tools and frameworks
such as the strategy canvas and the four actions framework. The four actions framework aids
in eliminating the trade-off between differentiation and low cost within a company. The four
actions framework consists of the following:
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Raise: This questions which factors must be raised within an industry in terms of product,
pricing or service standards.
Eliminate: This questions which areas of a company or industry could be completely
eliminated to reduce costs and to create an entirely new market.
Reduce: This questions which areas of a company’s product or service are not entirely
necessary but play a significant role in your industry, for example, the cost of manufacturing
a certain material for a product could be reduced. Therefore, it can be reduced without
completely eliminating it.
Create: This prompts companies to be innovative with their products. By creating an
entirely new product or service, a company can create their own market through
differentiation from the competition.
2. The second part describes the four principles of blue ocean strategy formulation. These four
formulation principles address how an organization can create blue oceans by looking across
the six conventional boundaries of competition (Six Paths Framework), reduce their planning
risk by following the four steps of visualizing strategy, create new demand by unlocking the
three tiers of noncustomers and launch a commercially viable blue ocean idea by aligning
unprecedented utility of an offering with strategic pricing and target costing and by
overcoming adoption hurdles. The book uses many examples across industries to demonstrate
how to break out of traditional competitive (structuralist) strategic thinking and to grow
demand and profits for the company and the industry by using blue ocean (reconstructionist)
strategic thinking. The four principles are:
how to create uncontested market space by reconstructing market boundaries,
focusing on the big picture,
reaching beyond existing demand and supply in new market spaces
getting the strategic sequence right.
3. The third and final part describes the two key implementation principles of blue ocean
strategy including tipping point leadership and fair process. These implementation principles
are essential for leaders to overcome the four key organizational hurdles that can prevent even
the best strategies from being executed. The four key hurdles comprise the cognitive, resource,
motivational and political hurdles that prevent people involved in strategy execution from
understanding the need to break from status quo, finding the resources to implement the new
strategic shift, keeping your people committed to implementing the new strategy, and from
overcoming the powerful vested interests that may block the change.
In the book the authors draw the attention of their readers towards the correlation of
success stories across industries and the formulation of strategies that provide a solid base to
create unconventional success – a strategy termed as "blue ocean strategy". Unlike the "red
ocean strategy", the conventional approach to business of beating competition derived from
the military organization, the "blue ocean strategy" tries to align innovation with utility, price
and cost positions. The book mocks at the phenomena of conventional choice between
product/service differentiation and lower cost, but rather suggests that both differentiation
and lower costs are achievable simultaneously.
The authors ask readers "What is the best unit of analysis of profitable growth?
Company? Industry?" – a fundamental question without which any strategy for profitable
growth is not worthwhile. The authors justify with original and practical ideas that neither
the company nor the industry is the best unit of analysis of profitable growth; rather it is the
strategic move that creates "blue ocean" and sustained high performance. The book examines
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Page 30 of 87
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the experience of companies in areas as diverse as watches, wine, cement, computers,
automobiles, textiles, coffee makers, airlines, retailers, and even the circus, to answer this
fundamental question and builds upon the argument about "value innovation" being the
cornerstone of a blue ocean strategy. Value innovation is necessarily the alignment of
innovation with utility, price and cost positions. This creates uncontested market space and
makes competition irrelevant. The new chapters in the expanded edition of the book deal
with the issues of how to develop and align the three strategy propositions of value, profit
and people, how to sustain and renew blue ocean strategy at both the business level and the
corporate level, and how to avoid red ocean traps that keep organizations anchored in
existing market space even as they attempt to create new market space. The following section
discusses the concept behind the book in detail.
Red oceans represent all the industries in existence today – the known market space.
In the red oceans, industry boundaries are defined and accepted, and the competitive rules
of the game are known. Here companies try to outperform their rivals to grab a greater share
of product or service demand. As the market space gets crowded, prospects for profits and
growth are reduced. Products become commodities or niche, and cutthroat competition turns
the ocean bloody; hence, the term "red oceans".
Blue oceans, in contrast, denote all the industries not in existence today – the
unknown market space, untainted by competition. In blue oceans, demand is created rather
than fought over. There is ample opportunity for growth that is both profitable and rapid. In
blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue
ocean is an analogy to describe the wider, deeper potential of market space that is not yet
explored.
The cornerstone of blue ocean strategy is "value innovation", a concept originally
outlined in Kim & Mauborgne's 1997 article "Value Innovation - The Strategic Logic of High
Growth". Value innovation is the simultaneous pursuit of differentiation and low cost,
creating value for both the buyer, the company, and its employees, thereby opening up new
and uncontested market space. The aim of value innovation, as articulated in the article, is
not to compete, but to make the competition irrelevant by changing the playing field of
strategy. The strategic move must raise and create value for the market, while simultaneously
reducing or eliminating features or services that are less valued by the current or future
market. The Four Actions Framework is used to help create value innovation and break the
value-cost trade-off. Value innovation challenges Michael Porter's idea that successful
businesses are either low-cost providers or niche-players. Instead, blue ocean strategy
proposes finding value that crosses conventional market segmentation and offering value
and lower cost. Educator Charles W. L. Hill proposed a similar idea in 1988 and claimed that
Porter's model was flawed because differentiation can be a means for firms to achieve low
cost. He proposed that a combination of differentiation and low cost might be necessary for
firms to achieve a sustainable competitive advantage.
Many others have proposed similar strategies. For example, Swedish educators Jonas
Ridderstråle and Kjell Nordström in their 1999 book Funky Business follow a similar line of
reasoning. For example, "competing factors" in blue ocean strategy are similar to the
definition of "finite and infinite dimensions" in Funky Business. Just as blue ocean strategy
claims that a red ocean strategy does not guarantee success, Funky Business explained that
"Competitive Strategy is the route to nowhere". Funky Business argues that firms need to
create "sensational strategies". Just like blue ocean strategy, a sensational strategy is about
"playing a different game" according to Ridderstråle and Nordström. Ridderstråle and
Nordström also claim that the aim of companies is to create temporary monopolies. Kim and
Mauborgne explain that the aim of companies is to create blue oceans, that will eventually
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turn red. This is the same idea expressed in the form of an analogy. Ridderstråle and
Nordström also claimed in 1999 that "in the slow-growth 1990s overcapacity is the norm in
most businesses". Kim and Mauborgne claim that blue ocean strategy makes sense in a world
where supply exceeds demand.
Blue ocean vs. red ocean
Kim and Mauborgne argue that while traditional competition-based strategies (red
ocean strategies) are necessary, they are not sufficient to sustain high performance.
Companies need to go beyond competing. To seize new profit and growth opportunities they
also need to create blue oceans. The authors argue that competition-based strategies assume
that an industry's structural conditions are given and that firms are forced to compete within
them, an assumption based on what academics call the structuralist view, or environmental
determinism. To sustain themselves in the marketplace, practitioners of red ocean strategy
focus on building advantages over the competition, usually by assessing what competitors do
and striving to do it better. Here, grabbing a bigger share of the market is seen as a zero-sum
game in which one company's gain is achieved at another company’s loss. Hence, competition,
the supply side of the equation, becomes the defining variable of strategy. Here, cost and value
are seen as trade-offs and a firm chooses a distinctive cost or differentiation position. Because
the total profit level of the industry is also determined by structural factors, firms principally
seek to capture and redistribute wealth instead of creating wealth. They focus on dividing up
the red ocean, where growth is increasingly limited.
Blue ocean strategy, on the other hand, is based on the view that market boundaries
and industry structure are not given and can be reconstructed by the actions and beliefs of
industry players. This is what the authors call the reconstructionist view. Assuming that
structure and market boundaries exist only in managers’ minds, practitioners who hold this
view do not let existing market structures limit their thinking. To them, extra demand is out
there, largely untapped. The crux of the problem is how to create it. This, in turn, requires a
shift of attention from supply to demand, from a focus on competing to a focus on value
innovation – that is, the creation of innovative value to unlock new demand. This is achieved
via the simultaneous pursuit of differentiation and low-cost. As market structure is changed
by breaking the value/cost tradeoff, so are the rules of the game. Competition in the old game
is therefore rendered irrelevant. By expanding the demand side of the economy, new wealth
is created. Such a strategy therefore allows firms to largely play a non–zero-sum game, with
high payoff possibilities.
History of the concept
The concept was initially developed in the 1990s when W. Chan Kim was taking part
in a consulting project for Philips, headed by the management scholar C.K. Prahalad. Working
with consultants from the Mac Group (a consulting company that was later bought by
Capgemini), he developed strategy tools leading to the publication of a series of articles in the
Harvard Business Review, and then in 2005 of the Blue Ocean Strategy book.
Nintendo's Wii video game console, first released in 2006, has been often considered
an example of the blue ocean concept. Instead of trying to compete with the high performance
and computational power of the consoles from Sony and Microsoft, Nintendo designed the
Wii's hardware to focus on innovative gameplay, incorporating the use of motion controls
atypical of video games. These changes brought new gameplay ideas to the system as well as
reduced the cost of the console compared to its competitors. As a result, the Wii sold more
than 100 million units over its lifetime, far outselling the competitors.
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Since Blue Ocean Strategy was published in 2005 it has been translated into 43
languages and has sold over 3.5 million copies. The book was named a bestseller by the Wall
Street Journal, BusinessWeek, and Amazon.com. It was selected as one of the “Best Books of
2005” by Fast Company magazine, won “The Best Business Book of 2005” Prize at the
Frankfurt Book Fair, and achieved bestselling book of the decade status by 800-CEO-READ
(2000-2010). Strategy+Business magazine selected it as #1 strategy book of 2005.
In 2009, Blue Ocean Strategy was selected by the China Daily and the China Research
Institute as one of the 40 most influential books in the History of the People's Republic of China
(1949-2009) along with Adam Smith’s ″The Wealth of Nations″ under the category of
″Economics and Finance. ″ In 2010, Polish group ThinkTank selected Blue Ocean Strategy as
one of the Top 20 books that have shaped Polish Leaders. Blue Ocean Strategy won the
Thinkers50 2011 Strategy Award for Best Business Book of the decade and in the same year,
it was introduced to the Fast Company Leadership Hall of Fame. In 2013, the book received
the GoodBooks Award in the Management category by the Vietnamese Institute for Research
on Education Development (IRED), was selected as one of the 15 Best Business Books of the
last decade in Russia by the Kommersant.ru magazine, and selected as one of the top three
best management books in Japan by the Diamond Harvard Business Review.
The Wall Street Journal recommends Blue Ocean Strategy for the top manager. Forbes
calls it one of the ten business trends for 2013 and argues that "blue ocean strategies are more
influential than ever." BusinessWeek says that "Blue Ocean Strategy will have you wondering
why companies need so much persuasion to stay out of shark-infested waters." The Business
Strategy Review said the book "challenges everything you knew about strategy", and the
Business Times called on firms to "adopt blue ocean strategy to stay ahead." Marketplace
magazine recommends Blue Ocean Strategy as a book "you need to read." In addition, the book
has received many positive reviews from various publications that include Chicago Tribune,
Daily Herald, Credit Union Journal, Vancouver Sun, Association Meetings, Strategy &
Leadership, and Business First, among many others.
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Zwilling,
2011,
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Professionals
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Skye Schooley,2019, SWOT Analysis: What It Is and When to Use It, retrieved from
https://www.businessnewsdaily.com/
ADAM
HAYES,2020,
Ishikawa
Diagram,
retrived
from
https://www.investopedia.com/terms/i/ishikawa-diagram.
W. Chan Kim, Renée Mauborgne, 2014, Blue Ocean Strategy, retrieved from
https://en.wikipedia.org/wiki/Blue_Ocean_Strategy
Michael E. Porter,1979, Competitive Strategy: Techniques for Analyzing Industries and
Competitors, retrieved from https://www.mindtools.com/pages/article/newTMC_08.htm
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Page 33 of 87
GEC E1: Entrepreneurial Mind Module
Assessing Learning
a. post test
Activity 5
Name:
Course/Year/Section:
Directions: Encircle the correct answer.
Date:
Score:_________________
1. Which one refers to help organizations develop a full awareness of all the factors
involved in making a business decision?
a. Ishikawa diagram
b. Blue Ocean Strategy
c. SWOT analysis
d. Red Ocean Strategy
2. Strengths (S) and weaknesses (W) refer to internal factors, are some commonly
considered internal factors? Select all that apply.
a. Financial resources
b. Physical resources
c. Market trends
d. Funding
e. Access to natural resources, trademarks, patents and copyrights
f. Political
3. External forces influence and affect every company, organization and individual.
Whether these factors are connected directly or indirectly to an opportunity (O) or threat
(T), it is important to note and document each one. Select all that apply
a. New products
b. Investment opportunities
c. Employees
d. Economic trends
e. Relationships with suppliers and partners
f. Economic regulations
4-8 Arrange the correct Process to Make an Ishikawa Diagram by ranking it 1-5.
___a. Ask: “Why does this happen?” As each idea is given, the facilitator writes it as a branch
from the appropriate category. Causes can be written in several places, if they relate to
several categories.
___b. Ask the question “why does this happen?” again. Write sub–causes branching off the
causes. Continue to ask “Why?” and generate deeper levels of causes. Layers of branches
indicate causal relationships.
___c. Write the categories of causes as branches from the main arrow.
___d. Write the problem statement at the center right of the flipchart or whiteboard, box it
and draw a horizontal arrow running to it.
___e. The group should agree on a problem statement (effect).
9. This refers to the likelihood of your customers finding a different way of doing what you do.
a. Competitive Rivalry
b. Supplier Power
c. Threat of Substitution
d. Threat of New Entry
10. What is the cornerstone of blue ocean strategy?
a. Value Formation
b. Value Innovation
c. Strategy Formulation
d. Strategy Formation
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GEC E1: Entrepreneurial Mind Module
_________________________________________________________________________________________________________
UNIT IV. ENTREPRENEURIAL VENTURES IN THE PHILIPPINES
Overview
Addressing widespread poverty is the single most important policy challenge facing
the Philippines. Not only is poverty high when benchmarked against countries in Asia, but
also the rate of poverty reduction has been slow. While the Philippine economy has grown at
an average of 6 percent for the last five consecutive quarters (since 2012), poverty incidence
remains above 20 percent of the population. The critical challenge is to spread the payback
of this huge economic turnaround among the people, especially the poorest of the poor. They
should feel the benefits of the growing Philippine economy. Entrepreneurship can provide
the solution by creating wealth, jobs, and social empowerment. If we are to address the issue
of poverty with some degree of success, history tells us we have no choice but to actively
encourage entrepreneurial ventures.
Learning Objectives
________
At the end of this unit, I am able to:
1. identify the different ventures in the Philippines;
2. prepare a campaign to be posted in Youtube featuring the different aspects of
Entrepreneurship; and
3. accomplish and submit the following assessments on Johari Window, Personal
Entrepreneurial Competencies (PECs) and reaction paper of the results of the PECs.
Motivational Activity
Name:
Course/Year/Section:
Date:
Directions: Make a word with the jumbled letters, using meaning as the clue.
Jumbled
NOYREPIENT
WINARISJOHDOW
OAEAPNRE
NDEABLIAR
Meaning
non-profit organization that provides
guidance to Filipino entrepreneurs
and their environment through the
involvement of volunteer experts and
executives.
It is a communication model that is
used to improve understanding
between individuals
This quadrant represents the things
that you know about yourself, and the
things that others know about you.
This includes your behavior,
knowledge, skills, attitudes, and
"public" history.
This quadrant represents things about
you that you aren't aware of, but that
are known by others. This can include
simple information that you do not
know, or it can involve deep issues.
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Word
Page 35 of 87
GEC E1: Entrepreneurial Mind Module
Lesson Proper
Entrepinoy
Entrepinoy Volunteers Foundation, Inc. (EVFI) is a non-profit organization that
provides guidance to Filipino entrepreneurs and their environment through the involvement
of volunteer experts and executives. Recognizing the need to make the Filipino entrepreneur
globally competitive EVFI provides management and technical guidance to entrepreneurs as
well as organizations and/or institutions assisting small enterprises.
EVFI is driven by a strong spirit of volunteerism, nationalism, concern for the
economy and changes in the environment. There is the urgent need to fill a gap in the service
to Filipino entrepreneurs. To realize this mission, the Trustees and members value
community development, instill the culture of excellence and achievement, and promote
ethical practice through hard work and sharing. The extensive and diverse expertise,
experience coupled with the influence of our volunteers make us a unique organization of
practitioners committed to provide consultancy, training and networking to our clientele.
EVFI provide management consulting services and conducts business clinics for micro, small
and medium enterprises (mSMEs) to equip them with the necessary tools for increased
production, improved product quality, upgraded management skills, and enhanced basic
technology.
EVFI have rendered intensive assistance, induced managerial effectiveness and solve
technical problems for companies like Children’s Treasures, Daila Enterprises, Soundcheck,
Moonbake, among others. We have partnered with ABS-CBN Foundation in their community
development program in Bayan ni Juan in Calauan, Laguna. EVFI conducted various seminars
and business clinics that benefited thousands of entrepreneurs.
The Department of Science and Technology (DOST) and the Department of Trade and
Industry (DTI) are two of our active partners in forging technology and entrepreneurial sense
among their mSMEs clients, as well as their officers. We have active collaboration with
Regional officers of DOST in actualizing supply chain among their Small Enterprises
Technology Upgrading (SET UP) beneficiaries.
Johari Window
The Johari Window is a communication model that is used to improve understanding
between individuals. The word "Johari" is taken from the names of Joseph Luft and Harry
Ingham, who developed the model in 1955. There are two key ideas behind the tool:
First that you can build trust with others by disclosing information about yourself and with
the help of feedback from others, you can learn about yourself and come to terms with
personal issues. By explaining the idea of the Johari Window, you can help team members to
understand the value of self-disclosure, and you can encourage them to give, and accept,
constructive feedback. Done sensitively, this can help people build better, more trusting
relationships with one another, solve issues, and work more effectively as a team.
The Johari Window is shown as a four-quadrant grid, which you can see in the
diagram.
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GEC E1: Entrepreneurial Mind Module
The four quadrants are:
1. Open Area (Quadrant 1)
This quadrant represents the things that you know about yourself, and the things that others
know about you. This includes your behavior, knowledge, skills, attitudes, and "public"
history.
2. Blind Area (Quadrant 2)
This quadrant represents things about you that you aren't aware of, but that are known by
others. This can include simple information that you do not know, or it can involve deep
issues (for example, feelings of inadequacy, incompetence, unworthiness, or rejection), which
are often difficult for individuals to face directly, and yet can be seen by others.
3. Hidden Area (Quadrant 3)
This quadrant represents things that you know about yourself, but that others don't know.
4. Unknown Area (Quadrant 4)
This last quadrant represents things that are unknown by you, and are unknown by others.
Personal Entrepreneurial Competencies (PECs)
It refers to the key characteristics that a successful entrepreneur should have in order
to be successful. Competency among entrepreneurs plays a critical role in achieving excellent
performance to ensure a continuous growth and success of a business amongst competitive
enterprise environment. During the past few decades, the importance of entrepreneurial
competency and the human factor played by the entrepreneur himself have constantly
increased. The entrepreneur is the one who shoulders both the risk and success of a business
and the standard needed to carry on his business successfully is called his
competency.
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GEC E1: Entrepreneurial Mind Module
To be able to outline the attitude and behavior of entrepreneurs, a set of qualities has
been created and developed by a behavioral scientist and is collectively called as Personal
Entrepreneurial Competencies (PEC‘s). McClelland, the researcher, categorizes 14 personal
entrepreneurial competencies characterizing the behavior of a successful entrepreneur. The
study also found out that the PEC surpasses both culture and continent. A lot of studies have
been made to characterize entrepreneurial personalities and even though there is no
particular set of traits that can assure success, some identified behaviors are found common
in most successful entrepreneurs. A well-known research on human behavior is done by
McClelland and McBer and is able to identify 10 behavioral patterns grouped into three
general clusters: the achievement, planning, and power clusters. The entrepreneurial
qualities, more known as the Personal Entrepreneurial Competencies (PECs) are as follows:
(1) Opportunity Seeking, (2) Persistence, (3) Commitment to Work Contract, (4) Risk-taking,
(5) Demand for Efficiency and Quality, (6) Goal Setting, (7) Information Seeking, (8)
Systematic Planning and Monitoring, (9) Persuasion and Networking, (10) Self-Confidence.
These PEC‘s are considered correlated to entrepreneurial skills. PEC’s are transformed into
actions by individuals and do not remain as mere passive traits. Opportunity is a chance to
do something; it is a situation or time in which you are able to do something you always
wanted to do.
Opportunity Seeking is being active in finding openings in the environment which can
be used in different ways to start a business, to create a new market or to improve business
operations. Furthermore, opportunity seeking is what enables an entrepreneur to act and
grab new business opportunities even in the most problematic and hopeless situations. For
example, an entrepreneur went to a developing village. He easily identified the goods and
services that might be helpful to the villagers. He thought of creating a retail store and a
service shop. He is able to grab an unusual opportunity through his diligent characteristic. He
is an opportunity seeker.
Persistence is doing something continuously even though other people say that you
will not succeed or that you are just wasting your time and effort. It is doing something over
and over again until you get what you think you deserve. It means standing up straight and
not giving up even during the hardest times when you are trying to do something new or
something difficult.
Commitment is the state of giving much time and attention to something because you
believe it is right and important. Commitment comes with a personal value, it is what a person
truly believes in and is often considered as very important. For a personal value, someone
will be willing to make sacrifices just to be able to uphold or keep it. Although for some,
commitment is not a value, others still believe that keeping one‘s commitment is a value and
shall not be taken lightly. In terms of being committed to work, once a person accepts a job,
he should agree to take full responsibility and have the job done efficiently to create a
delighted customer. Being able to meet the deadline is very important. Failure to do so may
create a negative impact to the company. One must know that big achievement does not come
in a blink of an eye.
Risk-taking means taking the chances to do something which is out of your comfort
zone. It may also imply doing something that can result in anything unpleasant or dangerous.
There are three kinds of risk-taking behaviors and these are the following: (a) High risktaking – doing something risky without even checking what are the possible results of such
action and without calculating t h e probable losses that may be incurred after the action has
been taken, (b) Low risk-taking – almost not taking any risk or avoiding anything difficult or
anything which may have unpleasant or dangerous results, (c) Moderate risk-taking –
carefully calculating all the chances before doing something difficult or something which may
have unpleasant or dangerous results, thus reduces possible negative results by making the
most out of the positive possibilities. Entrepreneurs must see themselves as businessmen and
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GEC E1: Entrepreneurial Mind Module
not gamblers. They should only involve themselves in well-assessed situations with good
chances of success. They should look at different alternative solutions to problems and must
know whether or not the benefit of such risk is greater than its cost (Calvin, 2008).
Demand for efficiency and quality, a good entrepreneur demands quality and
efficiency not only from himself but also from her workers and suppliers. A successful
entrepreneur demands quality standards and cannot stand a bad performance from people
he is working with. This makes an assurance that he is giving quality products and the best
services to his customers and that equates to a good business. Quality is the standard
customers seek when buying a product or receiving a service—it is the level of work that is
acceptable in the market.
Efficiency, on the other hand, is the ability of an entrepreneur and its staffs to work
well without errors or without wasting time, money and energy. Having demands for
efficiency and quality is a normal occurrence in any business. This only means that most
entrepreneurs attempt to do things in an improved manner, be it faster, better or cheaper.
They often set a high standard of excellence to fulfill the needs of the customers (Davis, 2010).
Information Seeking is the behavior of gathering information from relevant sources.
The gathered information is critical to the formulation of different business strategies.
Information-seeking means an entrepreneur must always be ready to seek useful information
from persons related to his business including clients, suppliers, and competitors through
contacts or information networks. He must also be open to the idea of expert consultation
for business and technical assistance. Feedback is important for him; he seeks direct response
for his performance and only acknowledges accurate and relevant data on the information he
gets. Entrepreneurs often deal with a variety of changes, take notes on any management
weaknesses and try to find immediate feedback on their performance (Calvin, 2008).
A person with a high goal-setting ability is genuinely realistic. He plans his every
action and carefully makes decisions based on where he wants to go. His visions are
attainable and can inspire his drive in making his goals come to life. He is competitive in a
positive way and loves the idea of winning through hard work and perseverance. For him,
achievement is everything that keeps his burning passion alive.
A person with self-confidence has a solid self-belief. He trusts his own skills and
embraces his own imperfections. His self-awareness and faith in his personal ability makes it
easier for him to complete any task or activity. Depositorio (2011) recognizes that due to the
lack of a reliable and more superior entrepreneurial competency measurement instruments,
the PEC questionnaire has become handy and is now widely used in determining the PEC
levels of current entrepreneurs, inventors, and even students.
Interpretation of PEC scores are as follows: 19 and up = strong, 16 to 18 =
moderate, and 15 and below = weak. Di Zhang & Bruning (2011) studied about the
characteristics and orientation of entrepreneurs in Canada. They found out that
entrepreneurs’ reaction to external changes is not mechanically done. Entrepreneur’s way of
seeking and handling information and their strategic formulation is partially influenced by
their unique personal characteristics. Entrepreneurs can utilize their human capital in their
own ways. Olakitan and Ayobami (2011) make an interpretation on how personality affects
an entrepreneur’s success. In the study, three factors are examined and these are—gender,
control and behavior of an entrepreneur when taking risks. The results interpreted that: (1.)
there is no significant effect on entrepreneurial success between risk-taking behavior and
locus of control, (2.) this also applies to risk-taking behavior and entrepreneurial success, no
significant difference was recorded, (3.) a substantial variance exist between locus of control
and success, (4). gender difference doesn’t have a huge impact on entrepreneurial success,
(5.) locus of control and risk-taking behavior cannot mutually determine success. Based on
the findings, entrepreneurs are encouraged to know more about their personality since it
can help in determining whether an enterprise will be successful or not.
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GEC E1: Entrepreneurial Mind Module
Business Models of SMEs in the Philippines
In the Philippines, there are 4,769 large enterprises, 106,175 small enterprises, 4,895
medium enterprises and a whopping 887,272 units of micro business establishments. SMEs
alone have managed to create over 2.5 million jobs in the country, further signifying the
vitality of these establishments to the country’s development. Due to the fact that they greatly
influence the country’s income rate and development, they must be able to constantly meet
the global industrial demands, evolve alongside the new globalization standards and catch up
with the digital world.
Traditional Types of Business Models
A business model is simply the overarching plan of a company to generate a profit by
selling a service or a product. The business model provides an outline of the plans of the
company to produce a product or service and to market it. This plan also includes the
expenses that will occur with manufacture and marketing of the service or product. Different
business models exist, each of which can suit different companies and types of businesses.
Manufacturer
The manufacturer business model utilizes raw materials to create a product to sell.
This type of business model might also involve the assembly of prefabricated components to
make a new product, such as automobile manufacturing. A manufacturing business can sell
the products created directly to customers, which is known as the business-to-consumer
model. Another option involves outsourcing the sales aspect of the process to another
company, which is known as the business-to-business or B2B model. Wholesaling
manufacturers typically sell products to retailers, which then sell directly to consumers. An
example of this type of company might be a clothing manufacturer that sells merchandise to
a retailer, which then sells to consumers.
Distributor
A company fitting the distributor business model would be a business that buys
products directly from a manufacturing company. This business would then resell the
products directly to consumers or to a retailer. The distributor often acts as one of the middle
points between a manufacturer and the general public. Distributors have the challenge of
setting price points that will produce a profit while also utilizing effective promotion
strategies that will secure strong sales. Competition can be fierce for distributors, which
necessitates continual analysis of the market.
Retailer
A retailing business purchases products directly from a wholesale or distributing
company, then sells the inventory directly to the public. Retailers often utilize a brick-andmortar location for points of sale. Examples of retailers include grocery stores, clothing
stores, and department stores. Retailers might be nationwide chains, or they could be
independent shops operated by a single entity. A physical location for a retailer is common
but not mandatory. Retailers may choose to offer sales as an online retailer. Online retailing
can be done alone or in combination with selling from a physical location. Retailers
experience the ongoing challenge of competing against other retailers that offer similar
products.
Franchise
A franchise business model might involve any of the other business models, such as
manufacturing, distributing, or retailing. Franchise business are set up according to the
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GEC E1: Entrepreneurial Mind Module
unique service or product sold or produced. The business model of the franchise is adopted
by the purchaser of the franchise, who is known as the franchisee. Purchasing a franchise has
some important benefits for the franchisee, since most business processes and protocols are
already established for the business. However, with these established protocols come less
flexibility for the franchisee.
Sole Proprietorship and a Partnership
Sole proprietorships and partnerships are common business entities that are simple
for owners to form and maintain. The main difference between the two is the number of
owners. With a sole proprietorship, you are the sole owner (in some states, your spouse may
be a co-owner). When you have a partnership, you will work with at least one co-owner.
Owning a business with someone else invites additional concerns, such as handling conflicts
among the owners and allocating responsibilities, profits, and losses.
As soon as you start doing business by yourself, whether you accept money to mow
your neighbor’s yard or you sell your homemade jewelry online, you have a sole
proprietorship. In some states, if you co-own a business with your spouse, your business is
still a sole proprietorship. For some business entities, like corporations and LLCs, you have
to file formation documents with the state (such as Articles of Organization) to create the
business. By contrast, you create a sole proprietorship as soon as you accept money for your
goods or services, and you do not file any formation paperwork. When you form a sole
proprietorship, although you are the only owner, you do not have to work alone. You can hire
employees, freelancers, and consultants to help run your business. However, you are the one
responsible for making the decisions for the business and all of the profits and losses will go
to you.
Partnership
When you and someone else start doing business with the intent of making a profit,
you have a partnership, sometimes referred to as a general partnership. The partnership
might begin with signing an agreement to work together, or you could have an informal
relationship based on a conversation and a handshake. Your partner could be an individual
or a business, and you can have an unlimited number of partners. As with sole
proprietorships, you do not file anything with the state to form a partnership. The benefit of
a partnership over a sole proprietorship is that you’ll share the responsibilities, resources,
and losses. On the other hand, you also split your profits, and you might face disagreements
over how to run the business. One way to mitigate conflict is to create a partnership
agreement.
Partnership Agreements
The law does not require partnerships to have a partnership agreement, but you
could benefit from creating the document to clarify each partners’ expectations and roles
within the business. In the agreement, you can specify how the partners will share
responsibilities, profits, and losses. You can provide for when and how the partnership can
end, and whether partners can transfer their interests in the business to third parties. You
can read more about partnership agreements here.
Business Licensing and Names
Sole proprietorships and partnerships have the same responsibilities when it comes
to business licenses and name registrations. Although you don’t file formation paperwork
with the state to form a sole proprietorship or a partnership, you are not off the hook for
other business licenses or permits. Some towns and counties require all businesses to obtain
a local license or permit. Depending on the goods or services you provide, you might need
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GEC E1: Entrepreneurial Mind Module
specialized licenses from government agencies, such as a food handler’s permit or a license
to sell cannabis. If you want to do business under a name other than your own or your
partner’s, you must file for a Doing Business As (DBA) or a Fictitious Business Name. Check
with your Secretary of State for more information.
Personal Liability for Business Debt
Neither sole proprietorships nor partnerships shield the owners from the obligations
of the business. Creditors can go after your personal assets like your home, bank account, and
your car to pay for the debts of the business. The law does not distinguish between you and
your business. When the business owns property, so do you. Bringing a lawsuit against a
partnership or a sole proprietorship is the same as suing the owners. When you form a
partnership, you could be personally responsible for anything your partner does in the course
of running the business. However, you will not be responsible for all of your partner’s actions.
For example, if your partner caused a car accident while on vacation, your personal assets
would not be on the line to pay for the damage caused by the accident. However, if your
business is a delivery service, and your partner were to crash the business truck while on a
delivery to a customer, you might be personally liable.
Sole Proprietorship and Partnership Taxes
Both business types are “pass-through entities,” which means that the business does
not pay corporate tax. Instead, the income “passes through” the entity, and the owners pay
taxes on their personal tax return. Owners of both entities pay self-employment tax on their
portion of the income but can enjoy the 20% pass-through deduction to reduce their personal
tax burden, which you can read more about here. While the IRS taxes each entity similarly,
how the owners of each entity report their income is different: Sole proprietors report profits
and losses from their business on their personal tax returns, using Schedule C. They submit
only one return. Partnership owners file two returns: They submit Form 1065, which is its
own informational tax return. Because the partnership has allocated a portion of the profits
and losses to each partner, each partner reports their portion on their personal tax returns.
Incorporation
Incorporation is the formation of a new corporation. The corporation may be a
business, a nonprofit organization, sports club, or a government of a new city or town. A
business purpose which describes the incorporated tasks a company has to do or provide.
The purpose can be general, indicating that the budding company has been formed to carry
out "all lawful business" in the region. Alternatively, the purpose can be specific, furnishing a
more detailed explanation of the products and/or services to be offered by their company.
The chosen name should be followed with a corporate identifier such as "Corp.", "Inc.", or
"Co.". A preliminary name availability search is advisable, prior to the submission of the
Articles of Incorporation. In the case of online incorporation, the state will have the final say
with regards to the name chosen for the company. The name shouldn't deceive or mislead
consumers.
Registered agents are responsible for receiving all legal and tax documentation on
behalf of the corporation. An Inc. is the person who prepares and files the Certificate of
Incorporation with the concerned state. Share per value refers to the stated minimum value
and generally doesn't correspond to the actual share value. In reality, the value of a share is
based on its fair market value or the amount a buyer is willing to pay. An Inc. stipulates the
exact number of shares the corporation is willing to authorize. It is mandatory for every
corporation to have stock. If the corporation is willing to permit both preferred as well as
common shares of stock, then this should have a mention in the articles of incorporation,
along with the voting rights information. Generally, preferred shares provide its shareholders
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Page 42 of 87
GEC E1: Entrepreneurial Mind Module
preferential payments of distribution of assets or dividends, in case the company shuts down
its operations. A lot of small business owners only allow shares of common stock.
There are a number of legal benefits that come with incorporation.
One significant legal benefit is the protection of personal assets against the claims of
creditors and lawsuits. Sole proprietors and general partners in a partnership are personally
and jointly responsible for all the legal liability (LL) of a business such as loans, accounts
payable, and legal judgments. In a corporation, however, shareholders, directors and officers
typically are not liable for the company's debts and obligations. They are limited in liability
to the amount they have invested in the corporation. For example, if a shareholder purchased
$100 in stock, no more than $100 can be lost. On the other hand, a corporation (Corp.) or a
limited liability company (LLC) may hold assets such as real estate, cars or boats. If a
shareholder of a corporation is personally involved in a lawsuit or bankruptcy, these assets
may be protected. A creditor of a shareholder of a Corp. or LLC cannot seize the assets of the
company. However, the creditor can seize ownership shares in the corporation, as they are
considered a personal asset.
In the United States, corporations can sometimes be taxed at a lower rate than
individuals. Also, corporations can own shares in other corporations and receive corporate
dividends 80% tax-free. There are no limits on the amount of losses a corporation may carry
forward to subsequent tax years. A sole proprietorship, on the other hand, cannot claim a
capital loss greater than $3,000 unless the owner has offsetting capital gains. A corporation
is capable of continuing indefinitely. Its existence is not affected by the death of shareholders,
directors, or officers of the corporation. Ownership in a Corp. or LLC is easily transferable to
others, either in whole or in part. Some state laws are particularly corporate-friendly. For
example, the transfer of ownership in a corporation incorporated in US-DE is not required to
be filed or recorded
Start ups
A startup or start-up is a company or project undertaken by an entrepreneur to seek,
develop, and validate a scalable economic model. While entrepreneurship refers to all new
businesses, including self-employment and businesses that never intend to become
registered, startups refer to new businesses that intend to grow large beyond the solo
founder. At the beginning, startups face high uncertainty and have high rates of failure, but a
minority of them do go on to be successful and influential. Some startups become unicorns;
that is privately held startup companies valued at over US$1 billion.
Startups typically begin by a founder (solo-founder) or co-founders who have a way
to solve a problem. The founder of a startup will begin market validation by problem
interview, solution interview, and building a minimum viable product (MVP), i.e. a prototype,
to develop and validate their business models. The startup process can take a long period of
time (by some estimates, three years or longer), and hence sustaining effort is required. Over
the long term, sustaining effort is especially challenging because of the high failure rates and
uncertain outcomes.
Design principles
Models behind startups presenting as ventures are usually associated with design
science. Design science uses design principles considered to be a coherent set of normative
ideas and propositions to design and construct the company's backbone. For example, one of
the initial design principles is "affordable loss".
Heuristics and biases in startup actions
Because of the lack of information, high uncertainty, the need to make decisions
quickly, founders of startups use many heuristics and exhibit biases in their startup actions.
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GEC E1: Entrepreneurial Mind Module
Biases and heuristics are parts of our cognitive toolboxes in the decision-making process.
They help us decide quickly as possible under uncertainty but sometimes become erroneous
and fallacious.
Entrepreneurs often become overconfident about their startups and their influence
on an outcome (case of the illusion of control). Entrepreneurs tend to believe they have more
degree of control over events, discounting the role of luck. Below are some of the most critical
decision biases of entrepreneurs to start up a new business.
Overconfidence: Perceive a subjective certainty higher than the objective accuracy.
Illusion of control: Overemphasize how much skills, instead of chance, improve
performance.
The law of small numbers: Reach conclusions about a larger population using a limited
sample.
Availability bias: Make judgments about the probability of events based on how easy it
is to think of examples.
Escalation of commitment: Persist unduly with unsuccessful initiatives or courses of
action.
Startups use several action principles (lean startup) to generate evidence as quickly as
possible to reduce the downside effect of decision biases such as an escalation of
commitment, overconfidence, and the illusion of control.
Mentoring
Many entrepreneurs seek feedback from mentors in creating their startups. Mentors
guide founders and impart entrepreneurial skills and may increase the self-efficacy of
nascent entrepreneurs. Mentoring offers direction for entrepreneurs to enhance their
knowledge of how to sustain their assets relating to their status and identity and strengthen
their real-time skills.
below.
There are many principles in creating a startup. Some of the principles are listed
Lean startup is a clear set of principles to create and design startups under limited
resources and tremendous uncertainty to build their ventures more flexibly and at a lower
cost. It is based on the idea that entrepreneurs can make their implicit assumptions about
how their venture works explicit and empirically testing it. The empirical test is to
de/validate these assumptions and to get an engaged understanding of the business model of
the new ventures, and in doing so, the new ventures are created iteratively in a build–
measure–learn loop. Hence, lean startup is a set of principles for entrepreneurial learning and
business model design. More precisely, it is a set of design principles aimed for iteratively
experiential learning under uncertainty in an engaged empirical manner. Typically, lean
startup focuses on a few lean principles: find a problem worth solving, then define a solution
engage early adopters for market validation; continually test with smaller, faster iterations;
build a function, measure customer response, and verify/refute the idea; evidence-based
decisions on when to "pivot" by changing your plan's course; maximize the efforts for speed,
learning, and focus
Market validation. A key principle of startup is to validate the market need before
providing a customer-centric product or service to avoid business ideas with weak demand.
Market validation can be done in a number of ways, including surveys, cold calling, email
responses, word of mouth or through sample research.
Design thinking is used to understand the customers' need in an engaged manner.
Design thinking and customer development can be biased because they do not remove the
risk of bias because the same biases will manifest themselves in the sources of information,
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GEC E1: Entrepreneurial Mind Module
the type of information sought, and the interpretation of that information. Encouraging
people to “consider the opposite” of whatever decision they are about to make tends to
reduce biases such as overconfidence, the hindsight bias, and anchoring (Larrick, 2004;
Mussweiler, Strack, & Pfeiffer, 2000).
Decision-making under uncertainty In startups, many decisions are made under
uncertainty, and hence a key principle for startups is to be agile and flexible. Founders can
embed options to design startups in flexible manners, so that the startups can change easily
in future. Uncertainty can vary within-person (I feel more uncertain this year than last year)
and between-person (he feels more uncertain than she does). A study found that when
entrepreneurs feel more uncertain, they identify more opportunities (within-person
difference), but entrepreneurs who perceive more uncertainties than others do not identify
more opportunities than others do (no between-person difference).
Partnering. Startups may form partnerships with other firms to enable their business
model to operate. To become attractive to other businesses, startups need to align their
internal features, such as management style and products with the market situation. In their
2013 study, Kask and Linton develop two ideal profiles, or also known as configurations or
archetypes, for startups that are commercializing inventions. The inheritor profile calls for a
management style that is not too entrepreneurial (more conservative) and the startup should
have an incremental invention (building on a previous standard). This profile is set out to be
more successful (in finding a business partner) in a market that has a dominant design (a
clear standard is applied in this market). In contrast to this profile is the originator which has
a management style that is highly entrepreneurial and in which a radical invention or a
disruptive innovation (totally new standard) is being developed. This profile is set out to be
more successful (in finding a business partner) in a market that does not have a dominant
design (established standard). New startups should align themselves to one of the profiles
when commercializing an invention to be able to find and be attractive to a business partner.
By finding a business partner, a startup has greater chances of becoming successful.
Startups usually need many different partners to realize their business idea. The
commercialization process is often a bumpy road with iterations and new insights during the
process. Hasche and Linton (2018)argue that startups can learn from their relationships with
other firms, and even if the relationship ends, the startup will have gained valuable
knowledge about how it should move on going forward. When a relationship is failing for a
startup it needs to make changes. Three types of changes can be identified according to
Hasche and Linton (2018):
1. Change of business concept for the start up
2. Change of collaboration constellation (change several relationships)
3. Change of characteristic of business relationship (with the partner, e.g. from a
transactional relationship to more of a collaborative type of relationship)
Startups need to learn at a huge speed before running out of resources. Proactive
actions (experimentation, searching, etc.) enhance a founder's learning to start a company.To
learn effectively, founders often formulate falsifiable hypotheses, build a minimum viable
product (MVP), and conduct A/B testing.
Business Model Design
With the key learnings from market validation, design thinking, and lean startup,
founders can design a business model. However, it's important not to dive into business
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GEC E1: Entrepreneurial Mind Module
models too early before there is sufficient learning on market validation. Paul Graham said
"What I tell founders is not to sweat the business model too much at first. The most important
task at first is to build something people want. If you don’t do that, it won’t matter how clever
your business model is."
Social entrepreneurship
Social entrepreneurship is an approach by individuals, groups, start-up companies or
entrepreneurs, in which they develop, fund and implement solutions to social, cultural, or
environmental issues. This concept may be applied to a wide range of organizations, which
vary in size, aims, and beliefs. For-profit entrepreneurs typically measure performance using
business metrics like profit, revenues and increases in stock prices. Social entrepreneurs,
however, are either non-profits, or they blend for-profit goals with generating a positive
"return to society". Therefore, they use different metrics. Social entrepreneurship typically
attempts to further broad social, cultural, and environmental goals often associated with the
voluntary sector in areas such as poverty alleviation, health care and community
development.
At times, profit-making social enterprises may be established to support the social or
cultural goals of the organization but not as an end in themselves. For example, an
organization that aims to provide housing and employment to the homeless may operate a
restaurant, both to raise money and to provide employment for the homeless.
In the 2010 social entrepreneurship was facilitated by the use of the Internet,
particularly social networking and social media websites. These websites enable social
entrepreneurs to reach numerous people who are not geographically close yet who share the
same goals and encourage them to collaborate online, learn about the issues, disseminate
information about the group's events and activities, and raise funds through crowdfunding.
In recent years, researchers are calling for a better understanding of the ecosystem
in which social entrepreneurship exists, and social ventures operate. This will help them
formulate better strategy and help achieve their double bottom line objective.
Angel Investing
An angel investor is a person who invests in a new or small business venture,
providing capital for start-up or expansion. Angel investors are typically individuals who
have spare cash available and are looking for a higher rate of return than would be given by
more traditional investments. An angel investor typically looks for a return of around 25 to
60 percent.
Angel investment is a form of equity financing–the investor supplies funding in
exchange for taking an equity position in the company. Equity financing is normally used by
non-established businesses that do not have sufficient cash flow or collateral with which to
secure business loans from financial institutions. Angel investors fill in the gap between the
small-scale financing provided by family and friends and venture capitalists. Attracting
Angel Investors is not always easy, but there are things you can do. First, consider whether
angel investing is truly right for you and your business.
Advantages and Disadvantages of Angel Investors for Business Owners
The big advantage is that financing from angel investments is much less risky than
debt financing. Unlike a loan, invested capital does not have to be paid back in the event of
business failure. And, most angel investors understand business and take a long-term view.
Also, an angel investor is often looking for a personal opportunity as well as an investment.
The primary disadvantage of using angel investors is the loss of complete control as
a part-owner. Your angel investor will have a say in how the business is run and will also
receive a portion of the profits when the business is sold. With debt financing, the lending
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GEC E1: Entrepreneurial Mind Module
institution has no control over the operations of your company and takes no share of the
profits.
Typical Sources of Angel Investors
Angel investor is a somewhat general term, and you can actually find these types of
investors in a few different forms. Angel investments normally come from:
Family and friends: This is by far the most common source of funding for business
startups that are interested in finding business start-up money and is the only option
for many. Given the high rate of failure with new businesses, it is also risky in terms
of the possible impact on relationships if the business is not successful. It is important
to be upfront about the risk of failure.
Wealthy individuals: Another good source is successful business people, doctors,
lawyers, and others that have a high net worth and are willing to invest up to
(typically) $500,000 in return for equity. Often this is done by word of mouth through
business associates or associations such as the local Chamber of Commerce.
Groups: Angels are increasingly operating as part of an angel syndicate (a group of
angel investors), which raises their potential investment level accordingly. Investors
contribute funds to the syndicate and a professional syndicate management team
chooses the investments.
Crowdfunding: A form of an online investing group, crowdfunding involves raising
funding by having large groups of individuals invest amounts as small as $100.
Communicate Before Deciding
It's important for any business person thinking about accepting an angel investment
to be very clear about what the investor is bringing to the deal besides money, such as
expertise in business operations or access to good suppliers, for example. You would also
want to develop an understanding of what the angel investor would be like to work with since
this person could have their own conflicting ideas for how your business should be operated.
It's also important to have a comprehensive business plan in place. As a small business, you'll
need it in order to secure financing from lenders or investors.
References
Ma. Leonora V. Alusen, 2016, Personal Entrepreneurial Competencies of lpu- laguna bsba
graduating students: basis for curriculum enhancement, LPU- Laguna Journal of
Multidisciplinary Research Vol. 4 No. 4, retrieved from http://lpulaguna.edu.ph/
Christine Mathias,2020, Differences Between a Sole Proprietorship and a Partnership,
retrived from https://www.alllaw.com/articles/nolo/business/differences-between-asole-proprietorships.
https://en.wikipedia.org/wiki/Incorporation_(business)
Susan Ward,2020, The Pros and Cons of Angel Investors, retrived from
https://www.thebalancesmb.com/angel-investors.
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GEC E1: Entrepreneurial Mind Module
Assessing Learning
a. post test
Activity 6
Name:
Course/Year/Section:
Date:
Score:_________________
Directions: Encircle the correct answer.
1.It is a non-profit organization that provides guidance to Filipino entrepreneurs and their
environment through the involvement of volunteer experts and executives.
a. World trade Organization
b. International Monetary Bank
c. Entrepinoy Volunteers Foundation, Inc.
d. Bangko sentral ng Pilipinas
2. It is a communication model that is used to improve understanding between
individuals.
a. Entrepreneurial Group Theory
b. Johari’s Window
c. Cultural Theory
d. Behavior Theory
3. According to the idea from the previous question you can build trust with others by
disclosing information about yourself and with the help of feedback from others, you can
learn about yourself and come to terms with personal issues. This statement is:
a. True
b. False
c. Neither true or false
d. None of the above
4. This quadrant represents the things that you know about yourself, and the things that
others know about you. This includes your behavior, knowledge, skills, attitudes, and
"public" history.
a. Open Area
b. Blind Area
c. Hidden Area
d. Unknown Area
5. This quadrant represents things about you that you aren't aware of, but that are known
by others. This can include simple information that you do not know, or it can involve
deep issues.
a. Open Area
b. Blind Area
c. Hidden Area
d. Unknown Area
6. This quadrant represents things that you know about yourself, but that others don't
know.
a. Open Area
b. Blind Area
c. Hidden Area
d. Unknown Area
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GEC E1: Entrepreneurial Mind Module
7. This last quadrant represents things that are unknown by you, and are unknown by
others.
a. Open Area
b. Blind Area
c. Hidden Area
d. Unknown Area
8. It refers to the key characteristics that a successful entrepreneur should have in order
to be successful.
a. Entrepreneurial Group Theory
b. Theory of Need of Achievement
c. Hidden Area
d. Personal Entrepreneurial Competencies (PECs)
9. Opportunity Seeking is being active in finding openings in the environment which can
be used in different ways to start a business, to create a new market or to improve
business operations. This statement is:
a. True
b. False
c. Neither true or false
d. None of the above
10. Commitment is the state of giving much time and attention to something because you
believe it is right and important. Commitment comes with a personal value; it is what a
person truly believes in and is often considered as very important. This statement is:
a. True
b. False
c. Neither true or false
d. None of the above
b. business strategies
Activity 7
Name:
Course/Year/Section:
Date:
Score:_________________
Directions: Prepare paper work and present the different business strategies using the
following:
SWOT Analysis
Ishikawa Diagram
Michael Porter’s Five Forces
Blue Ocean Strategy
Note: Please refer to the attached rubrix.
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GEC E1: Entrepreneurial Mind Module
_________________________________________________________________________________________________________
UNIT V. ENTREPRENEURIAL CHARACTERISTICS AND COMPETENCIES
Overview
The encouraging outcomes of organizational success, emerging from productive
entrepreneurship has led academic and administrative attention on concepts of
entrepreneurial
competencies and entrepreneurial characteristics in the last few decades
Learning Objectives
________
At the end of this unit, I am able to:
1. identify the different Characteristics of an Entrepreneur;
2. know the competencies of an Entrepreneur;
3. learn from the Failures Towards a Successful Entrepreneurial Journey; and
4. produce a case study on Nature and Challenges Family in Business Couples, Business
Teens, Business Women, Business Friends and Business Risk Management
Motivational Activity
Name:
Course/Year/Section:
Score:
Directions: Pick two words from the picture below and define on your own words.
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GEC E1: Entrepreneurial Mind Module
Lesson Proper
Characteristics of an Entrepreneur
1. Curiosity
Successful entrepreneurs have a sense of curiosity that allows them to continuously
seek new opportunities. Rather than settling for what they think they know; curious
entrepreneurs ask challenging questions and explore different avenues. In Entrepreneurship
Essentials, entrepreneurship is described as a “process of discovery.” Without the drive to
continuously ask questions and challenge the status quo, valuable discoveries can easily be
overlooked.
2. Structured Experimentation
Along with curiosity comes the need for structured experimentation. With each new
opportunity that arises, an entrepreneur must run tests to determine if it’s worthwhile to
pursue. For example, if you have an idea for a new product or service that fulfills an
underserved demand, you’ll have to ensure customers are willing to pay for it. To do so, you’ll
need to conduct thorough market research and run meaningful tests to validate your idea and
determine whether it has potential.
3. Adaptability
The nature of business is ever-changing. Entrepreneurship is an iterative process, and
new challenges and opportunities present themselves at every turn. It’s nearly impossible to
be prepared for every scenario. Entrepreneurs need to evaluate situations and adapt so their
business can keep moving forward when unexpected changes occur.
4. Decisiveness
To be successful, an entrepreneur has to make difficult decisions and stand by them.
As a leader, they’re responsible for guiding the trajectory of their business, including every
aspect from funding and strategy to resource allocation. Being decisive doesn’t always mean
having all the answers. If you want to be an entrepreneur, it means having the confidence to
make challenging decisions and see them through. If the outcome turns out to be less than
favorable, the decision to take corrective action is just as important.
5. Team Building
A great entrepreneur is aware of their strengths and weaknesses. Rather than letting
shortcomings hold them back, they build well-rounded teams that complement their abilities.
In many cases, it’s the entrepreneurial team, rather than an individual, that drives a venture
toward success. When starting your own business, it’s critical to surround yourself with
teammates who have complementary talents and contribute to a common goal.
6. Risk Tolerance
Entrepreneurship is often associated with risk. While it’s true that launching a
venture requires an entrepreneur to take risks, they also need to take steps to minimize it.
While many things can go wrong when launching a new venture, many things can go right.
The key, according to Entrepreneurship Essentials, is for entrepreneurs to actively manage
the relationship between risk and reward, and position their companies to “benefit from the
upside.” Successful entrepreneurs are comfortable with encountering some level of risk to
reap the rewards of their efforts; however, their risk tolerance is tightly related to their
efforts to mitigate it.
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GEC E1: Entrepreneurial Mind Module
7. Comfortable with Failure
In addition to managing risk and making calculated decisions, entrepreneurship
requires a certain level of comfort with failure. It’s estimated that nearly 75 percent of new
startups fail. The reasons for failure are vast and encompass everything from a flawed
business model to a lack of focus or motivation. While many of these risks can be avoided,
some are inevitable. Successful entrepreneurs prepare themselves for, and are comfortable
with, failure. Rather than let fear hold them back, the possibility of success propels them
forward.
8. Persistence
While many successful entrepreneurs are comfortable with the possibility of failing,
it doesn’t mean they give up easily. Rather, they see failures as opportunities to learn and
grow. Throughout the entrepreneurial process, many hypotheses turn out to be wrong, and
some ventures fail altogether. Part of what makes an entrepreneur successful is their
willingness to learn from mistakes, continue to ask questions, and persist until they reach
their goal.
9. Innovation
Many ascribe to the idea that innovation goes hand-in-hand with entrepreneurship.
This is often true—some of the most successful startups have taken existing products or
services and drastically improved them to meet the changing needs of the market. Innovation
is a characteristic some, but not all, entrepreneurs possess. Fortunately, it’s a type of strategic
mindset that can be cultivated. By developing your strategic thinking skills, you can be wellequipped to spot innovative opportunities and position your venture for success.
10. Long-Term Focus
Finally, most people think of entrepreneurship as the process of starting a business.
While the early stages of launching a venture are critical to its success, the process doesn’t
end once the business is operational.
Competencies of an Entrepreneur
There are 10 Personal Entrepreneurial Competencies, which form the basis of the Empretec
Training Workshop. These 10 competencies are:
Opportunity-seeking and initiative. Entrepreneurs seek opportunities and take the
initiative to transform them into business situations.
Persistence. When most people tend to abandon an activity, successful entrepreneurs
stick with it.
Commitment. Entrepreneurs keep their promises, no matter how great the personal
sacrifice.
Demand for efficiency and quality. Entrepreneurs try to do something better, faster
or cheaper.
Taking calculated risks. Taking calculated risks is one of the primary concepts in
entrepreneurship.
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GEC E1: Entrepreneurial Mind Module
Goal setting. This is the most important competency because none of the rest will
function without it. Entrepreneurs set goals and objectives which are meaningful and
challenging.
Information seeking. Entrepreneurs gather information about their clients, suppliers,
technology and opportunities.
Systematic planning and monitoring. Systematic behavior means acting in a logical
way. Planning is deciding what to do. Monitoring means checking.
Persuasion and networking. Entrepreneurs influence other people to follow them or
do something for them.
Independence and self-confidence. Entrepreneurs have a quiet self-assurance in their
capability or potential to do something.
Failures Towards a Successful Entrepreneurial Journey
Failure for the entrepreneurs has become part and parcel of their lives. If you want to
become an entrepreneur, you should be able to look forward to a couple of failures too. Most
often the word ‘failure’ is used negatively but if you look deeply, there is nothing wrong in it
because it has its own way of rewarding! Life is full of ups and downs and it is also applicable
to the life of an entrepreneur. These struggles make the result so sweet. Try to look past the
superficial things to know about the failures, mistakes, and missteps of an entrepreneur.
These dim situations may create moments of doubts and giving up looks the easy way out
because we all know failure is hard to swallow. But the point is if it had been easy, everyone
would be doing it, isn’t it? Failure’ can be used negatively if you fail to learn from it. Being an
entrepreneur, you should have the ability to gain the lessons which are hidden in it and then
move forward with your experiences to create a better product or to provide a better service.
An entrepreneurial mindset can only be developed when you experience failure, but you still
keep pushing yourself towards your goal. The attitude that you should carry with yourself is
the “Never Giving Up” attitude!
Many people don’t even consider failure as a possibility and that’s where they go
wrong because it becomes difficult for them to accept failure. When you consider it as a
possibility, you actually prepare yourself for it and it becomes easier for you to tackle the
situation. See failure as a challenge! This attitude will remove the fear of failure from your
mind and when this happens, there will be nothing that can hold you back from becoming a
successful entrepreneur.
The Journey Of An Entrepreneur
The journey of an entrepreneur can be clearly divided into four distinct stages.
1. The Adrenaline Rush
Do you want to become an entrepreneur? The first thing that you will do is quit your
existing job. You will start your business. You are filled with extreme energy to show the
world the idea that you have. And you will start feeling like a king/queen who now has the
power to control their destiny.
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GEC E1: Entrepreneurial Mind Module
2. Working Your Ass Off
For the next few months or years, you will sacrifice everything, and you will work like
a crazy person. You will be discussing about your plans and the things that you are doing with
every third person you talk to. You will slog yourself 12 to 16 hours in a day and if you are in
luck, you will also see a quick growth in your business.
3. You Start Questioning
Constantly succeeding is a myth. You will encounter a stage, where the growth
becomes stagnant or even starts falling. You might lose one or two important clients. Many
people are not prepared for this stage in their entrepreneurial journey. Most of the businesses
fail in this stage!
4. Your Response Decides This Stage
When you encounter the questioning stage, it is important for you to keep in your
mind that perseverance is essential. How you react to stage three will decide the future of
your business. After encountering the very first failure, if you end up giving up, there is no
future for your business. But if you consider those encounters as a small failure from where
you can learn big lessons, you will end up taking a step forward to expand your business with
the valuable lessons that you have learned.
Macro-Failure and Micro-Failure
Most of us face micro-failure, but we end up picturing it so big that it starts looking
like a macro-failure to us. Let me explain you the difference between macro-failure and
micro-failure. Macro-failure is dying; it is about directly going out of the business world. And
a micro-failure might come in the form of losing a client or a deal. You should know that you
will face micro-failures but you always have to keep the big picture in your mind. It Is All
About The Mindset. Micro-failures are small stepping stones towards your macro-success. So,
treat it just like a stepping stone instead of taking it as an excuse of moving out of the business.
The easy part of becoming an entrepreneur is starting a business. The difficult part is
converting that tiny business into a profitable and lasting business. The secret of it lies in
persistence! Keep pushing your boundaries, step out of your comfort zone, learn from your
mistakes and keep going ahead. In the end, the reward will be worth it! Take the risk even if
it means going against all the odds. Being an entrepreneur, you truly have the power to
control your destiny. But you can control it in the right manner, only after developing the
entrepreneurial mindset which involves taking failures as an opportunity to learn and
expand.
Nature and Challenges
Family Businesses Challenges
All businesses face challenges, whether it is dealing with the changing economy,
finding and hiring the right employees, or increased competition in the market. Familyowned businesses are not immune to these challenges. In fact, there is also a unique set of
challenges that family-owned businesses have to face as a result of the nature of their
business structure. It is important to understand what these hurdles are so that if you find
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GEC E1: Entrepreneurial Mind Module
yourself facing these issues, you can not only identify them, but you can proactively develop
ways to overcome them.
Let’s take a look at ten of the most common challenges facing family businesses today.
1. Family problems. Physical, emotional and financial problems among family members
can greatly impact the day-to-day operation of the business.
2. Informal culture and structure. For many businesses, having a laid-back culture is a
positive. However, the informal structure and culture found in many family
businesses can equate to a lack of documentation, policies, and defined strategy and
goals.
3. Pressure to hire family members. It can be difficult to resist the pressure that comes
along with requests from family members who want to join the business. This
becomes especially complicated if they lack the basic skills and experience needed for
the position.
4. Lack of training. The informal culture found in many family businesses can result in a
lax approach to training new employees, whether they are family members or not.
5. High turnover of non-family employees. Non-family employees may feel that greater
opportunities exist within the business for those who are a part of the family and may
grow tired of the culture.
6. Sources for growth. A huge challenge for family businesses can be determining where
and how to get the capital and resources needed to grow the business.
7. Lack of an external view. While family members may not always have the same
opinions, they often have similar upbringing and life experiences which may lead to
a uniform view of the business. Businesses need to have external views of their
company and their competition in order to thrive.
8. Misunderstanding the value of the business and how it is to be divided. Owners of
family businesses may have varying opinions on the value of their business, or even
worse, they may have no knowledge about the value of the business and what things
contribute to or detract from that value. Further complicating this matter is
determining how to split the profits of the business or owners’ stakes.
9. Who will take over the business? It is important for family businesses to plan ahead
for business succession. Many family-owned businesses do not have a plan in place
and this can be a source of heated debate and intense family politics when the time
arises to select new leadership.
10. No exit plan. Family businesses often lack a defined strategy for what will happen if
an owner wants to retire, sell the business, or transfer responsibility. This goes hand
in hand with succession plan issues. All businesses need a plan for the future.
Couples in Business
It doesn’t take long for a couple working together in business to discover the pros and
cons. Every couple has their own dynamic in the triangular relationship between each other
and the business. The last thing you want is for the third part of that triangle—your
business—to ruin your marriage. Being in business with your spouse does lead to unexpected
challenges. Starting a business is risky. Bloomberg economists reported that, “One-third of all
new ventures close within two years, half within five years…” Plus, financial challenges place
an additional strain on most marriages.
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GEC E1: Entrepreneurial Mind Module
Working closely together is a dream born of love and enthusiasm. Couples in business
together share a vision of happily running a successful business.
Communication breakdown. No one’s a mind-reader. So don’t assume your partner
knows what you are thinking or why you approach a task in a certain way.
Different expectations. Your interests shift as your business grows. In the start-up
phase, you mutually agreed on specific business goals. As the business grows, your
expectations change. Although you live and work together, set up regular meetings to
review short and long term goals. Openly discuss what’s still working and identify
where change is needed. Otherwise, tension will rise. Especially if your expectations
differ about how much work is required. Or, personal time off gets postponed.
You step on each other’s toes. Once you and your spouse divide the work, you may
discover areas where you overlap. Control issues sometimes arise. That’s especially
true when your approach differs from your spouses.
Cramped quarters. After a while your workspace may stop working. The set-up which
was originally quaint is now annoying. What changes in space will accommodate your
growing business?
You don’t unplug. Have some of your other interests been abandoned? You realize
everything you do together revolves around the business. What happened to casual
nights off doing fun activities together? Even your friends are somehow associated
with your business. If this sounds familiar, then find ways to escape. Rejuvenate your
relationship by sharing something which has nothing to do with another workshop
or business concern.
Teens Business
As a young entrepreneur, you start a venture that can set you on course for a lifetime
of fulfillment. Unfortunately, age can trigger societal stereotypes that try to make youth a
liability rather than an asset. While dealing with conflicting social attitudes and other agerelated resistance, you also have to face all the other pressures faced by anyone who wants
to become an entrepreneur. Your place in the business world depends on how you navigate
the obstacles in your way. Rather than letting other people discourage you from reaching
your goals, learn about what you should expect and get ready to rise above the fray. Begin by
preparing yourself for the following seven challenges you might face as a young
entrepreneur.
1. Facing Age Stereotypes
Generational values can affect how the community perceives you as a young
entrepreneur. Older people might instinctively judge you as a lazy or irresponsible person,
refusing to give you a chance to earn their trust. Other entrepreneurs might doubt your ability
to persist with your business over time. You can counter age-based stereotypes by
maintaining professional conduct and respectfully treating everyone you encounter. As a rule
of thumb, you can guide your behavior by treating other people in the same manner as you
would like them to treat you. Believe in yourself and stand firm when others mistreat you
because of your age. Confidently assert your abilities and recognize your ambitions. Hold
yourself, not others, responsible for your success.
2. Financial Issues
Many young entrepreneurs already face the financial challenges posed by student
loans and other educational costs, resulting in fewer funding opportunities. Compensating
for the problem requires you to have a fantastic sales pitch and a solid business plan to
improve your chances of attracting the financing you need to open or expand your business.
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GEC E1: Entrepreneurial Mind Module
However, you can build a successful company even with the challenges associated with
limited funding. Regardless of your financial situation, you should have realistic expectations.
Entrepreneurs of all ages often sabotage themselves by expecting profits to appear instantly.
It may take several years before your business sees any substantial profit. This underlines
the need for you to have a liquid emergency fund and a solid financial plan before starting
your business.
3. Social Rejection
Your family members and friends might not understand why you chose to start a
business. They might not share your passion nor support your ideas. They also might
question your decision not to work as a regular employee. Not receiving any support from
your loved ones can certainly be a challenge. You can combat feelings of rejection and
isolation by networking with other young entrepreneurs. Share your business and personal
experiences and find supportive friends and acquaintances who will encourage your
ambitions. When working long hours and traveling on behalf of your business, try not to
neglect your relationships. Make a conscious effort to spend time with your family and
friends. Talk to them about your business and put some effort in helping them support your
ideas. Feelings of social rejection will slowly subside with the growth of your new network of
supportive peers as well as with the growth of your business.
4. Facing Criticism
As a young entrepreneur, you might hear people criticize your ideas or second-guess
your plans. Some will constantly evaluate all your business decisions and say they could have
done better. Some will criticize you personally, discouraging you from pursuing your dreams.
When money gets tight, you can expect to hear about how you should look for a traditional
job. When your ideas fail, others can criticize for your lack of experience. Don’t take
everything your critics say to heart. Criticism can sometimes come from negative people who
feel jealous of your entrepreneurial vision or feel threatened by your success. You must learn
to face criticism and use it to motivate you to succeed. Prove your capabilities to yourself and
the world, and leave your critics behind.
5. Hiring Employees for the First Time
When you get ready to hire workers for your company, you will face new challenges.
The process of identifying, recruiting, and training the right talent for your business can take
time and cause frustration. You need to create a great company culture that attracts
employees that have the right combination of skill, ability, and attitude. If you’re starting your
company in a small town, you might have difficulty finding suitable workers because top
talent is migrating to the major cities to improve their employment outlook. However, you
can expand your pool of prospective employees by employing a remote work policy.
Telecommuting has become a transformative workplace trend that allows employees to work
for distant employers without having to relocate. You can hire remote workers from a
different city, state or even country. An added benefit to this type of work will materialize
itself in the form of savings on office supplies, utilities, etc.
6. Dealing with Stress and Self-Doubt
Owning a business can bring you many satisfying moments, but it can also cause you
to experience anxiety, stress and self-doubt in the process. As a young business owner, you
might not have a steady income at first, so you might have days when you have trouble paying
the bills. Stress can sometimes cause discouragement and make you feel like you want to give
up. Deal with this type of self-doubt by reviewing and revising your goals and task lists. When
you do, you can make sure you direct your thoughts and activities in ways that support your
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GEC E1: Entrepreneurial Mind Module
goals. Although you work in a demanding role, you can take steps to minimize stress with
regular exercise and meditation.
7. Finding customers
A small marketing budget and global competition can complicate your effort to attract
and retain customers. To complicate matters, many of your leads and prospects might turn
away when they find out that your business has little experience. Customers tend to feel
confident when they deal with companies with more brand recognition and expertise than
yours. Don’t let your underdog status discourage you. You can try competing on price because
many large corporations must charge higher prices to cover their overhead and marketing
expenses. Make sure you provide high-quality goods and services to your customers to keep
them coming back for more. Your life as a young entrepreneur seems exciting, but it brings
challenges that you have to deal with on your pathway to success. Never let your age or
stereotypes about your age prevent you from pursuing your goals. You can overcome every
obstacle in your way through perseverance, enthusiasm, and optimism. As you gain
experience, you will overcome all the issues associated with youth and embark on a long
journey as a successful business owner.
Women Business
More women are starting businesses, but they still face challenges operating their
businesses. The number of women entrepreneurs is on the rise. Regardless of the positive
outcomes, women are struggling to survive in the business environment given the challenges
they face.
1. Limited Funding
Not all business people are fortunate enough to have an investor or financier for their
business. Some have to bootstrap their entrepreneurial ventures, rely on credit cards or raise
capital on their own. Women’s businesses are among the leading ventures that
lack financial support. It is also common for women to be denied loans because of gender and
cultural biases—many institutions tend to fund male-owned businesses.
2. Balancing Responsibilities
A large number of women are not just entrepreneurs or career people—they have
families, spouses, and other responsibilities. Demands from personal and professional
commitments can pressure a woman to abandon either her business or family. The family
expects her to be a mother and wife, while the business requires her to be the leader and
show commitment. It becomes more difficult for those who lack social support because they
have to carry the entire burden by themselves. Some women can balance these two spheres
of their lives, while others are overwhelmed.
3. Fear of Failure
Entrepreneurship
or
running
a
business
is
risky
and
entails
unforeseen circumstances. Never fear failure; you will never try if you fear failure. No one
goes into business with a guarantee of success. Fear of the known and the unknown is a major
issue for women. They dread failing, especially if the people surrounding them were skeptical
of their capability in business. This fear is toxic and perilous, because women may end up
operating from a place of fear instead of confidence. As a result, they will fail in business even
when they were meant to succeed.
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GEC E1: Entrepreneurial Mind Module
4. Inadequate Support System
What would women achieve if they had a perfect support system? Struggling or failing
in business could be the result of a lack of an adequate support system. In business, no man’s
an island. Women tend to face the greatest challenges in getting support, from lacking the
relevant connections to needing financial access or emotional support. They also need
mentors and sponsors to guide them in this new path. The support system is often expensive,
forcing women to delay starting their businesses.
5. Gender Inequality
What do you need to know about gender inequality? Laws, cultures, religion, and
politics are built upon a patriarchal foundation. Women must work their way up in the
masculine world while facing stigma and discrimination. Although laws and policies have
attempted to create a favorable business environment for everyone, the actual changes have
not yet been implemented. Gender lens investing, which refers to strategies that address
gender disparity issues and/or analyze gender issues to illuminate investment decisions, is
gaining traction.
6. Limited Knowledge
Empowering a woman with knowledge is just the beginning of a long journey to
business success. Life is a daily learning process where each day comes with new information.
Unfortunately, women’s access to this information and emerging knowledge is limited.
Although it could be a result of the competitive environment, women take the extra step
and seek relevant and practical information.
7. Unfavorable Business Environment
Among
the
challenges
that
women experience
are
less-established
business networks, and social and traditional constraints that restrict women’s participation
in business. Religion hinders women from owning businesses. In some countries, women
may be required to have a male partner will do deals, negotiate, and be the face of the
business. Regardless of these challenges, the business world is gradually accepting women’s
abilities and contributions.
8. Timidity
Women who strive and succeed are often shy about touting their accomplishments.
They are afraid of being labeled as proud or boastful people. Humility is not shyness or
timidity. Women need to stand by their success and let people around them recognize it.
Friends Business
Most people have experienced the great reward of a good friendship. You support
each other, motivate each other and share memorable times together.
If you have found that genuine friendships, both new and longstanding, can be quite positive
for personal and business development. Here is why:
1. True friends can offer you honest and helpful feedback about your brand and its endeavors.
They will be encouraged you to move forward with your company, even when you are
questioned going into the spirits business with no experience in it.
2. True friends can provide incentives to work hard and efficiently so that you can enjoy time
together.
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GEC E1: Entrepreneurial Mind Module
3. True friends can connect you to other entrepreneurs, experts, investors, resources or
experiences that help grow your business.
4. True friends believe in your vision and capacities and are happy to buy your products or
services, as well as encourage others to do the same.
5. True friends remind you of your strengths, successes and goals when you feel discouraged
or defeated.
Unfortunately, as you begin a business, grow it and evolve, you will likely find that your oncecherished social circles and friendships may not be as genuine as you hoped. When you
quickly realized that not all of your seemingly “good” friendships helped your business -- and
many actually hurt it. These “ingenuine friendships” or even “frenemies” often presented
challenges personally and professionally.
How do you recognize when a friendship is not authentic?:
1. Ingenuine friends can become extreme “doubters” who critique your business constantly
but do not offer solutions -- nor congratulations when concepts they doubt actually work.
2. Ingenuine friends may frequently solicit “freebies” or feel entitled to products or a piece of
the profits without contributing time or resources to the business.
3. Ingenuine friends are supportive when things go well but often disappear when there are
obstacles.
4. Ingenuine friends may be too eager to use your company and its reputation for their own
personal gain, often without asking permission to mention the business or represent it.
5. Ingenuine friends may not be truly happy when you experience strides and successes.
While no person or friendship is perfect, my partners and I were deeply hurt when
we saw the true priorities and intentions of the people, we thought we knew, trusted and
loved. That disappointment and the passion for our business, goals and vision made us that
much more determined to attract and keep authentic friendships in our lives. Can true friends
make good business partners, or should there be boundaries? Owning a business with a
friend can be very challenging because doing so involves setting expectations and creating
accountability that does not exist in the friendship alone. However, it is possible to
successfully collaborate when friends have common interests, goals and priorities -- and
agree to lay out everyone’s expectations at the beginning of the endeavor. It is important to
discuss expectations and put plans, roles and responsibilities in place before launching the
company.
Whether or not you go into business with friends, how do you achieve genuine relationships
that enhance your professional life? Here are several tips:
1. Make time to communicate with true friends on a regular basis. Your insight, support and
inspiration should be a priority for them and vice versa. A quick conversation or brief time
together can be more motivating and enjoyable than a cup of coffee. Make the most of it.
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GEC E1: Entrepreneurial Mind Module
2. Foster meaningful business relationships rather than relying on your friendships for
business. It's wonderful when friends can offer assistance with your business or frequent it,
but it can be uncomfortable, awkward and unfair when you depend on someone to be your
close friend and your client base.
3. Speak positively about your friends to others, and approach friends personally with any
questions or negativity. Ingenuine friends tend to do the opposite and are kind to your face
but not to your back, which can be detrimental to your business.
4. Determine mutually agreed upon expectations or boundaries so that neither party takes
advantage of the other’s time, generosity, or business activities. If you know where the other
person stands, you don’t accidentally hurt or disappoint each other as often.
5. Don’t be afraid to move on or grow apart when friends do not share a mutually supportive,
fun and healthy relationship with you. Sometimes people grow apart and in opposite
directions. That is okay, especially in business.
Business Risk Management
Business Risk management is a subset of risk management used to evaluate the
business risks involved if any changes occur in the business operations, systems and process.
It identifies, prioritizes and addresses the risk to minimize penalties from unexpected
incidents, by keeping them on track. It also enables an integrated response to multiple risks,
and facilitates a more informed risk-based decision-making capability.Businesses today are
unpredictable, volatile and seem to become more complex every day. By its very nature, it is
filled with risk. Businesses have viewed risk as an evil that should be minimized or mitigated,
whenever possible. However, risk assessment provides a mechanism for identifying which
risks represent opportunities and which represent potential pitfalls. Risks can have negative
impact, positive impact, or both. Risks with a negative impact can prevent value creation or
erode existing value. Risks with positive impact may offset negative impacts or represent
opportunities.
The risk management process involves:
Identifying risks – Spotting the evolving risks by studying internal and external
factors that impact the business objectives
Analyzing risks – It includes the calibration and, if possible, creation of probability
distributions of outcomes for each material risk.
Responding to risk – After identifying and analyzing the potential risk, appropriate
strategy needs to be incorporated. Either by establishing new processes or
eliminating, depending on kind and severity of the risk.
Monitoring risk and opportunities – Continually measuring the risks and
opportunities of the business environment. Also keep a check on performance of
management strategies.
Types of risks
Hazard risk: A hazard is anything in the workplace that has the potential to harm
people. Hazard risk includes factors which are not under the control of business
environment, such as fallout of machinery or dangerous chemical, natural calamities.
Financial risk: A large number of businesses take risk with their financial assets, quite
regularly. Sometimes choosing a wrong supplier or distributor can backfire. Financial
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GEC E1: Entrepreneurial Mind Module
risk also includes risk in pricing, currency exchange and during liquidation of any
asset. Business risk management should say how much risk is too much in financial
relationship.
Operational risk: Evaluation of risk loss resulting from internal process, system,
people or due to any external factor through which a company operates.
Strategic risks: Might arise from making poor or wrong business plans and losing the
competition in the market. Failure to respond to changes in the business environment
or inadequate capital allocation also represents strategic risk.
Risk Assessment
A risk assessment should begin and end with specific business objective that are
anchored in key value drivers. Risk management acts like a guide in decision-making and
planning to the company, in the event of an emergency. It helps to organize and allocate
resources by setting up priorities. An effective risk management is
Increasingly important to the success of any business today
Required for a consistent approach, tailored to the organization
Organizations that vigorously interpret the results of their risk assessment process
set the foundation of an effective risk assessment program
However, BRM also has its own limitations, factors considering human involvement
in decision making. Human judgment can sometimes be based on past experience or sheer
gut feeling, which may or may not work at all times. Simple errors or mistakes can turn the
business upside down. This could also happen when two or more people are involved and
they fail to come to same understanding or accept a decision in confused state of mind/ haste.
These limitations preclude a management from having absolute assurance towards the
achievement of the entity’s objectives.
References
Miller,Kelsey,
2020,Harvard
Business
School
Online
,
retrieved
from
https://online.hbs.edu/blog/post/characteristics-of-successful-entrepreneurs
Nilakshi Pathak, 2018, Journey of An Entrepreneur- Success through Failure, retrieved from
https://www.passionatechic.com/journey-of-an-entrepreneur/
Jacqueline M. Abellera,2011, The Top 10 Challenges Family Businesses Must Overcome,
retrieved
from
https://www.withum.com/resources/the-top-10-challenges-familybusinesses-must-overcome/
Fogelman,Loren,
2020,
Bussiness
Success
Solution,
retrieved
from
https://www.businesssuccesssolution.com/being-in-business-with-your-spouse/
Jill Phillips, 2016, Top Challenges You’ll Face as a Young Entrepreneur, retrieved from
https://www.paymill.com/en/blog/challenges-for-young-entrepreneur/
Marguerita Cheng, 2018, 8 Major Challenges Women Face In Business, retrieved from
https://www.forbes.com/sites/margueritacheng
Alex Kowtun, 2019, How Friendships Can Benefit And Challenge Your Business, retrieved
from https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil
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GEC E1: Entrepreneurial Mind Module
Assessing Learning
a.post test
Activity 8
Name:
Course/Year/Section:
Date:
Score:_________________
Directions: Encircle the correct answer.
1.This characteristic of an entrepreneur allows them to continuously seek new
opportunities.
a. Adaptability
b. Risk tolerance
c. Curiosity
d. Team building
2. This characteristic of an entrepreneur allows them to to evaluate situations and adapt
so their business can keep moving forward when unexpected changes occur.
a. Adaptability
b. Risk tolerance
c. Curiosity
d. Team building
3. Which of the following is not a characteristic of an entrepreneur?
a. Adaptability
b. Risk intolerance
c. Curiosity
d. Team building
4. Which of the following is not a characteristic of an entrepreneur?
a. Persistence
b. Short term focus
c. Innovation
d. Team building
5. Which of the following is not a characteristic of an entrepreneur?
a. Indecisiveness
b. long term focus
c. Innovation
d. Team building
6. To be successful, an entrepreneur has to make difficult decisions and stand by them.
This statement is:
a. True
b. False
c. Neither true or false
d. None of the above
7. A great entrepreneur is not aware of their strengths and weaknesses. They let
shortcomings hold them back, they build well-rounded teams that complement their
abilities. This statement is:
a. True
b. False
c. Neither true or false
d. None of the above
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GEC E1: Entrepreneurial Mind Module
8. Entrepreneurship is often associated with risk. This statement is:
a. True
b. False
c. Neither true or false
d. None of the above
9. Most people think of entrepreneurship as the process of starting a business. While the
early stages of launching a venture are critical to its success, the process doesn’t end once
the business is operational. This statement is:
a. True
b. False
c. Neither true or false
d. None of the above
10. Failure for the entrepreneurs has become part and parcel of their lives. If you want to
become an entrepreneur, you should be able to look forward to a couple of failures too.
This statement is:
a. True
b. False
c. Neither true or false
d. None of the above
b.integration
Activity 9
Name:
Course/Year/Section:
Date:
Score:_________________
Directions: Accomplish and submit the following assessments:
Johari Window
Personal entrepreneurial Competencies (PECs)
After answering the assessments write a one page reaction paper on the result.
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GEC E1: Entrepreneurial Mind Module
_________________________________________________________________________________________________________
UNIT VI. THE GLOBAL TRENDS IN BUSSINESS
Overview
Globalization is the process by which the exchange of goods, services, capital,
technology, and knowledge across international borders becomes increasingly
interconnected. Globalization creates new opportunities for businesses to increase profits by
expanding markets and by allowing wider access to resources. On the other hand,
globalization also opens domestic markets to new competitors, decreasing demand for local
products. Arguing the advantages or disadvantages of globalization is a little like arguing
about the weather: it’s best just to admit it’s here to stay and then figure out how it’s going to
affect you.
Learning Objectives
At the end of this unit, I am able to:
1. know the global trends in business;
2. identify the supply chain in the global market;
3. explain ASEAN integration; and
4. learn E-commerce.
________
Motivational Activity
Name:
Course/Year/Section:
Score:
Directions: Write two words from the picture below and define on your own words.
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GEC E1: Entrepreneurial Mind Module
Lesson Proper
Important Global Trade Agreements and Organizations
After World War II (US involvement spanned from 1941–1945), many countries
wanted to expand global cooperation—politically, economically, and socially. Nations agreed
to work together to promote free trade and increase global cooperation. They also created
regional custom and trade agreements and unions to facilitate economic
interdependence. The most important of these organizations, treaties, and trade agreements
are briefly summarized below.
The World Trade Organization
The World Trade Organization (WTO), officially formed in 1995, grew out of
the General Agreement on Tariffs and Trade (GATT). The WTO oversees the implementation
and administration of agreements between member nations. It provides a forum for
negotiations and for settling disputes among nations. It also helps developing nations get
experience and technical expertise needed to deal with large and very comprehensive trade
agreements. Although there are ongoing controversies, its member states account for 97
percent of global trade and 98 percent of the global gross domestic product. The WTO is a
truly global organization that deals with agriculture, labor standards, environmental issues,
competition, and intellectual property rights.
The World Bank
The World Bank is an international financial institution that provides loans for capital
programs to developing countries. It is a component of the World Bank Group, which is part
of the United Nations system. The World Bank is comprised of 189 member countries
represented by a board of governors. Although headquartered in Washington, DC, the World
Bank has offices in almost every nation in the world. The organization has two goals to
achieve by 2030:
1. End extreme poverty by decreasing the percentage of the world’s population
that live on less than US $1.90 per day to no more than 3 percent.
2. Promote shared prosperity by fostering the income growth of the bottom 40
percent in every country.
Some recent projects have been aimed at improving primary and secondary school
education systems and basic infrastructure, such as building and maintaining safe water
supplies and sanitary sewer systems in Africa and parts of Asia. Although the World Bank has
come under fire in the past for budget overruns and poor project oversight, its role in
promoting economic development has been undeniable.
The International Monetary Fund
The International Monetary Fund (IMF), headquartered in Washington, DC, is
comprised of 189 member countries. The IMF works to foster global growth and economic
stability by providing policy, advice, and financing to its members. It also works with
developing nations to help them reduce poverty and achieve macroeconomic stability. It now
plays a central role in the management of balance-of-payments difficulties and international
financial crises.
When the IMF was founded, its primary functions were to provide short-term capital
to aid the balance of payments and to oversee fixed-exchange-rate arrangements between
countries, thus helping national governments manage their exchange rates and prioritize
economic growth. This assistance was meant to prevent the spread of international economic
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crises. The IMF mission changed slightly after 1971, and floating currency exchange rates
made it harder to predict the economic stability of a region. Today the IMF plays an active
role in shaping and managing economic policy around the world.
Global Trade Policies
In addition to international organizations, countries make agreements among
themselves to reach trade advantages. There are four common types of trade
agreements (also known as trade blocs) with different levels of trade dependencies: regional
trade agreements (RTAs), custom unions, common markets, and economic unions. Regional
trade agreements establish reciprocal (equally binding) treaties addressing tariffs
and trade barriers with member countries. For example, the North American Free
Trade Agreement (NAFTA) between Canada, the United States, and Mexico allows for
tariff reductions or eliminations (free trade). The Association of Southeast Asian
Nations (ASEAN) provides for the free exchange of trade, service, labor, and capital
across ten independent member nations to provide a balance of power to the
economic powerhouses of China and Japan. Customs unions are arrangements in
which countries agree to allow free trade on products within the customs union. They
may also agree to a common external tariff (CET) on imports from the rest of the
world. It is the CET that distinguishes a customs union from a regional trade
agreement. It is important to note that although trade is unrestricted within the
union, customs unions do not allow free movement of capital and labor among
member countries. An example is the customs union of Russia, Belarus, and
Kazakhstan, which was formed in 2010. These countries eliminated trade barriers
among themselves but have also agreed to some common policies for dealing with
nonmember countries.
Common markets are similar to customs unions in that they eliminate internal
barriers between members and adopt common external barriers against nonmembers. The
difference is that common markets also allow free movement of resources (e.g., labor) among
member countries. An example of a common market is the Economic Community of West
African States (ECOWAS), comprised of Benin, Burkina Faso, Cape Verde, Gambia, Ghana,
Guinea, Guinea-Bissau, Ivory Coast, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and
Togo.
Economic unions eliminate internal barriers, adopt common external barriers, and
permit free movement of resources (e.g., labor). They also adopt a common set of economic
policies. The best-known example of an economic union is the European Union (EU). EU
members all use the same currency, follow one monetary policy, and trade with one another
without paying tariffs.
Key Characteristics of Globalization
Debates about the characteristics and consequences of globalization generally focus
on three areas: political, economic, and cultural. Globalization produces both positive and
negative outcomes in all these areas.
Political
For thousands of years, treaties have shaped international relations and led to
complex alliances. International cooperative bodies such as the United Nations and the World
Trade Organization exist today because of the increasing need for political cooperation at the
global level. It is impossible for a country to remain isolated from events around the world.
People’s ideas and expectations are shaped by what they see happening around them.
Because of the rapid flow of information to most areas of the world, people are very aware of
events taking place around the globe virtually as they happen. However, some nations, such
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as North Korea, choose to try to isolate themselves from the rest of the world. Others try to
control the flow of information within their borders. But technology makes it very difficult to
control access to information. Depending on how it is used, technology can both reduce and
increase political tensions and military conflicts. Labor and environmental abuses, traced to
corporations taking advantage of weak protectionist laws in some countries, are uniting
people who would otherwise not find political common ground. The fear of domestic job
losses and concerns about manufacturing safety records in developing countries are
becoming popular planks in many political campaigns.
Economic
As a result of globalization, nations with limited resources can access goods and
knowledge that help to raise their standards of living. Trade treaties, such as NAFTA and the
European Union (EU), lower or abolish tariffs that restrict the flow of products across
borders. Nations with rare resources or specific skills are able to focus on their particular
business or commercial strengths and sell their goods to a global market. The
Economist magazine has reported that one billion people have been lifted out of poverty
thanks to freer trade policies.[1] On the downside, outsourcing allows businesses to exploit
people as sources of cheap labor required to work under substandard conditions. There is
also a trend toward the consolidation of businesses in many industries, hurting locally owned
businesses and damaging local economies.
Cultural
Globalization has heightened the awareness of the many, many languages, religions,
cuisines, arts, literature, and dress that constitute cultures around the world. Some people
are worried, however, that cultures around the world are merging into a “world culture” in
the process of globalization. As people emigrate to economic powerhouses in the search for
higher standards of living, many local traditions and even languages are threatened with
extinction. You will read more about this topic later in this module.
Global Competition
Global competition means the competing organizations that serve international
customers through enhanced communications, improved shipping channels and supply
chains, reduction of trade barriers, and centralized financial institutions. There are small
players, such as a local entrepreneur who advertises handmade baby carriers on her website
and ships products to other countries through Amazon or directly to the customer. At the
other extreme are the giant multinationals such as Exxon Mobil, Apple, McDonald’s, and
Google.
Why do so many businesses make the financial investments and take the high risks
involved with global business ventures? The chief reasons include the following:
Increased profits. A wider market and customer base means the opportunity to sell
more goods and services. Some countries have lower taxes, adding to the advantages of
moving production there.
Greater access to suppliers for materials and at lower costs. If a cold snap in southern
Florida damages the crop of oranges for a season, juice manufacturers can import fruit from
another country.
Reduced manufacturing costs through access to cheaper labor. Even Levi’s, which still
makes its blue jeans in the United States, will pay Wipro $143 million over five years to handle
information technology, human resources, finance, and customer service. [2] Motorcycle
maker Harley-Davidson moved 125 jobs overseas. It is also well-known that Apple has the
iPad and iPhone assembled in China by contractor Foxconn, while parts for the devices are
made in more than 20 different countries.
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Social and environmental concerns. Many US businesspeople are committed to
improving the lives of people around the world and working with international organizations
to address environmental concerns such as air pollution, clean water, and climate change.
The World Economic Forum has developed the Global Competitiveness Report that
ranks countries on global competitiveness. It averages the different data points that
encourage competitiveness, including such things as a stable government, good educational
systems, a developed infrastructure, a strong market for goods and services, efficient labor
pools, stable financial institutions, and the ability to innovate and use technology. The top ten
most globally competitive countries in 2016 were as follows:
1. Switzerland
2. Singapore
3. United States
4. Netherlands
5. Germany
6. Sweden
7. United Kingdom
8. Japan
9. Hong Kong
10. Finland
Another ranking that measures global competitiveness is the Ease of Doing Business
Index created by the World Bank Group. This index lists the “friendliest” countries for starting
commercial ventures. The ranking considers such factors as dealing with construction
permits, getting electricity, legal procedures, getting credit, providing investor protections,
paying taxes, enforcing contracts, trading across borders, regulatory issues, and transparency
in government. Only Singapore, the United States, and the United Kingdom appear in the top
ten of both lists. Two key reasons that these countries are so globally competitive is that
businesses operating within their borders have developed the most efficient supply chains
and continually innovate to improve operations, products, and services.
Global Supply Chains
A supply chain is the network of suppliers and contractors that provide needed
materials and services to a business. It includes all of the businesses involved with taking a
product from raw material to manufacturing to the transporting and storage of the finished
merchandise. Some supply chains include delivery to the consumer and even account for
recycling of the used product. Logistics means getting materials from one place to another
when they are needed and storing them if necessary. It is a popular field of study in many
business schools. Logisticians study the latest innovations in shipping, warehousing,
rail/road transportation, and airfreight.
For example, let’s look briefly at what it takes to produce a typical T-shirt bought off
Amazon. The cotton is grown in Texas or Mississippi with the help of agricultural subsidies
to the farmers. The raw cotton is shipped to Indonesia (for example), where it is combed and
spun into yarn. The yarn is sent to Bangladesh or another country where it’s made into whole
cloth, washed, and dyed. The cloth is then sent to Colombia (or whichever country has the
lowest labor rates) to be sewn into T-shirts. The T-shirts are then shipped back to the United
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States, where they are printed and distributed to retail stores or Amazon warehouses. Getting
the goods to the consumer is the most expensive part of the whole process. Finally, some Tshirts are recycled to East Africa. International agreements to keep tariffs low and improved
shipping methods all contribute to making this global supply chain cost-effective.
In the global economy, managing a supply chain requires dealing with trade and tariff
controls, quality regulations, and international relationships. Global supply chain
management is highly specialized and complicated. Some firms even do nothing but manage
supply chains for other companies, whereas some other companies offer the service in
addition to their core activity. The World Bank estimates that 13 percent of the world’s gross
domestic product (GDP) was earned from moving and storing goods around the planet in
2016.
Today’s globally integrated economy makes it necessary for businesses to look as far
as possible for both the cheapest and the best resources. The benefit of global supply chains
is that businesses can take advantage of low-cost goods and services in foreign locations to
bring down operating costs. However, when a business depends on outsourcing, it increases
the number of risk factors outside of its control. Tsunamis in Japan shut down an auto
assembly plant in Ohio when essential parts couldn’t be shipped; severe flooding in Thailand
delayed the manufacture of computers for the US market when hard drives failed to appear.
Ethical considerations can also be a factor. Even when a firm tries to ensure that the factory
owners it contracts with provide fair wages and safe working conditions, abuses still occur,
and responsibility is hard to assess. A series of factory fires and disasters killed hundreds of
workers in Bangladesh in 2013 and led to the Disney Company canceling the production of
its licensed products in that country.
Many companies have developed alternate supply chains that take over when the
primary sources are unavailable. Managers must always be aware of changes in the economy
and in politics that make one source a better choice than another. As energy prices increase
in one location and go down in another, for example, shifts can be made to capture these
savings. These kinds of efficiencies can occur when companies use technology to innovate
their supply chain management systems.
The Global Nature of Innovation
Innovation in business is developing an idea or invention that increases efficiency,
raises productivity, or creates value for which customers will pay. An innovation applies
information, imagination, and initiative in ways that further the goals of the organization to
satisfy customer expectations. Today, virtually every business believes that innovation is
necessary for its sustainability and growth.
One of the most powerful drivers of innovation is technology. Not only is
technology scalable (able to handle increasing amounts of work) but it can also be used to
leverage and produce new innovations. Economists traditionally viewed competition as a
function of investment, labor and other costs, and the general business climate. Today,
competitiveness is based more on the ability to keep up with rapid technological and
organizational changes. In a dynamic world, many people use the catchphrase “innovationled economy.”
When your business competes on a global scale, it is more important than ever to
adapt and innovate to find ways to sustain a competitive advantage. Doing the same thing
forever is not a viable option because the next company is committed to finding the key to
take your market share. Blockbuster Video, for instance, failed to recognize customer demand
for the new live-streaming innovation for computers, whereas Netflix jumped on the
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innovative technology and created a user-friendly interface. To succeed, organizations must
continually adapt and apply new strategies.
A final example: Nestlé is the largest food and beverage company in the world. In
2016, it launched a crowdsourcing initiative to ease communication among the 36,000 people
involved in its supply chain. The initiative, called InGenious, asks employees to communicate
with each other about supply chain challenges, problems, and solutions. The company has
also developed more than seventy massive open online courses (MOOCs) in multiple
languages to educate its supply chain teams worldwide. Nestlé leaders believe that there is
no one system that can track all of the agricultural suppliers in the world and how their
products are distributed. They are developing “sharing economy” technologies that rely on
crowdsourcing to alert the company to potential problems and help them develop solutions.
The Supply Chain in the Global Market
In today’s digitally driven marketplace, the importance of efficient supply chain
management becomes more obvious. The world is getting much smaller and the food you eat,
the car you drive and the mobile device that holds your world together have increasingly
complex global supply chains. Few products, if any, have single geography supply chains. Raw
materials may come from one region, with sub-assemblies built in another and often shipped
to the consuming geography for assembly to lower cost and create flexibility. The United
States is the fifth largest exporter of rice in the world, and those supply chains serve 120
different countries. It doesn’t get simpler than rice. Simply put, the world runs on a global
supply chain.
Although many products look like their supply chains are unique and independent,
very few are. This lack of knowledge obscures the risks inherent in an increasingly linked and
integrated global economy. At an increasing pace, the lack of understanding of the
interdependent global supply chains creates negative business impacts that are often hard to
fix once they have occurred. It is a great way to learn about your supply chains but very
expensive.
1. Pandemic Disruptions Related to COVID-19
Without a doubt, the supply chain impact of the coronavirus has been one for the
books. In fact, 66% percent of supply chain decision makers in Jabil's special report say that
COVID-19 has had the biggest supply chain impact in the last decade. In previous years, as
businesses have struggled with component shortages, global trade uncertainty and logistics
constraints, COVID-19 has amplified these challenges to completely new levels. As worldwide
lockdowns, new waves of the virus and other pandemic related issues arise, global
enterprises and small businesses alike navigate their way through these turbulent conditions.
2. Component Supply Constraints
The years 2017 and 2018 saw electronics demand dramatically outstrip supply,
causing lead times for commodity devices like capacitors, resistors, diodes, transistors and
memory to stretch as long as 60 weeks. On the supply side, the shortage was spurred by
insufficient growth in component capacity and production. In addition, pandemic-related
needs have unveiled more challenges as priorities have shifted. These component
shortages have made a drastic impact on global supply chains. According to Jabil’s survey,
98 percent of product brands say global sourcing and materials issues have impacted their
company in the last year. Some of those impacts include:
Delays in production delivery or time-to-market (62 percent)
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Smaller profit margins (46 percent)
Revenue loss (42 percent)
Global sourcing issues, unfortunately, have translated into direct financial impact as
well. Six out of 10 participants said that their companies have seen losses of more than $50
million, with two out of 10 saying their companies experienced $100-$500 million in losses.
3.Demand Expansion
Consumer demand for electronics has been fueled by the pandemic as well, as many
schools and offices have closed their doors to in-person activities. With the current state of
the pandemic, the global economy's ascent back to pre-pandemic levels remains uncertain,
according to the International Monetary Fund. The "new normal," therefore is changing our
daily needs as well. At the same time, as the Internet of Things (IoT) finds mainstream hold,
there is increasing demand for more connected devices, wireless technologies and data
centers, just to name a few. The expansion of the IoT into new value steams within industries
like healthcare and industrial products as well as the increasing content with industries like
automotive, simply translates into an increasing demand for many electronic commodities.
There really is no need for “new products” to increase the demand, just legacy products with
new technology like continuous glucose monitoring and autonomous cars. As a result, the
electronics market continues to outgrow the global economy.
4.Global Trade and Tariff Uncertainty
Jabil survey participants listed trades and tariff implications and reducing supply
chain costs as their top business and technology challenge in 2019, but today these
uncertainties are lower on the list of priorities. A quick resolution of the global trade issues
could lead to increased certainty among business leaders, buyers and increased purchasing
activity. The value of an intelligent global supply chain tied to a well-positioned global
manufacturing network allows a balance between cost and risk and allows speed, should you
need to migrate your business due to these uncertainties.
5. Labor Shortages
The outdated perception that global supply chain management is still primarily a lowpaying purchasing job prevents many young professionals from considering it as a career.
The fact that only a handful of universities offer appropriate courses and most of them are in
the United States compounds this issue. As a result, there is a global shortage of qualified
individuals ready to step into such roles today. Managing the supply chain is increasingly
becoming a career track in big companies today, involving professionals with job titles such
as director of finance – supply chain or advanced purchasing engineer, all the way up to the
C-Level with Chief Procurement and Chief Supply Chain Officers. Anyone holding a role with
commercial acumen can create a very successful and rewarding career in supply chain.
6.Global Logistics Constraints
As waves of the pandemic made their way through the world, global logistics became
increasingly difficult to navigate. Especially in early to mid-2020, logistics changes took place
overnight, with countries putting in new protocols with little to no notice.
As a result of these turbulent changes, supply chain managers had to take urgent actions such
as:
Quickly identifying new international shipping options
Identifying additional options for "last mile" deliveries
Re-routing to avoid border closures
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Therefore, it should come as no surprise that half of the Jabil survey participants
agreed that addressing logistics interruptions was a focus for their supply chain
resilience program.
7.Higher Labor Costs
Another factor driving the pricing and availability issues of recent years is the longterm increase in labor expenses in China, key electronics manufacturing region. Nearly half
of the Jabil survey participants said that higher labor costs were impacting their company’s
global supply chain. China’s average annual wages rose by nearly 63 percent between 2011
and 2016, according to the country’s National Bureau of Statistics. The long-term impact of
China’s one-child-per-family policy has created a slowdown in population growth and a
decline in the workforce, resulting in rising wages and labor costs. The Chinese government
predicts that the total available workforce in China—which stood at 900 million people in
2017—will likely drop to 700 million by 2030. As a result, companies with manufacturing
operations in China need to keep this top-of-mind as they expand the assembly of their
product lines as part of their global supply chain.
8.Rapid Technology Transitions
Beyond the pandemic, makers of several critical components are shifting their
manufacturing resources away from low-margin legacy parts and toward more advanced and
higher cost devices. As a result, legacy devices continue to be difficult to source in the
memory, passive and discrete segments. One of the most critical legacy-part shortages is in
the multi-layer ceramic capacitors (MLCC) segment. MLCC suppliers have increased
production of higher capacitance, smaller case-size parts and decreased manufacturing of
older, larger less efficient products. This means that even though MLCC supplies have
improved overall, manufacturing has increased only for more advanced parts. As a result,
buyers sourcing legacy MLCCs are experiencing continued tightness in supply.
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ASEAN Integration
The establishment of the ASEAN Economic Community (AEC) in 2015 is a major
milestone in the regional economic integration agenda in ASEAN, offering opportunities in
the form of a huge market of US$2.6 trillion and over 622 million people. In 2014, AEC was
collectively the third largest economy in Asia and the seventh largest in the world.
The AEC Blueprint 2025, adopted by the ASEAN Leaders at the 27th ASEAN Summit
on 22 November 2015 in Kuala Lumpur, Malaysia, provides broad directions through
strategic measures for the AEC from 2016 to 2025. Along with the ASEAN Community Vision
2025, and the ASEAN Political-Security Community (APSC) Blueprint 2025 and the ASEAN
Socio-Cultural Community (ASCC) Blueprint 2025, the AEC Blueprint 2025 forms part
of ASEAN 2025: Forging Ahead Together. It succeeded the AEC Blueprint (2008-2015), which
was adopted in 2007.
The AEC Blueprint 2025 is aimed towards achieving the vision of having an AEC by
2025 that is highly integrated and cohesive; competitive, innovative and dynamic; with
enhanced connectivity and sectoral cooperation; and a more resilient, inclusive, and peopleoriented, people-centered community, integrated with the global economy
The AEC Blueprint 2025 consists of five interrelated and mutually reinforcing
characteristics, namely: (i) A Highly Integrated and Cohesive Economy; (ii) A Competitive,
Innovative, and Dynamic ASEAN; (iii) Enhanced Connectivity and Sectoral Cooperation; (iv)
A Resilient, Inclusive, People-Oriented, and People-Centered ASEAN; and (v) A Global
ASEAN. These characteristics support the vision for the AEC as envisaged in the ASEAN
Community Vision 2025.
The AEC Blueprint 2025 sets out the strategic measures under each of the five
characteristics of AEC 2025. To operationalize the Blueprint’s implementation, these
strategic measures will be further elaborated in and implemented through the work plans of
various sectoral bodies in ASEAN. The sectoral work plans will be reviewed and updated
periodically to ensure their relevance and effectiveness. Partnership arrangements with the
private sector, industry associations and the wider community at the regional and national
levels will also be actively sought and fostered to ensure an inclusive and participatory
approach to the integration process. Institutions will be strengthened and enhanced
approaches to monitoring and public outreach will likewise be developed to support the
effective implementation of the Blueprint.
The AEC 2025 Consolidated Strategic Action Plan (CSAP) comprises of key action
lines that will operationalize the strategic measures in the AEC Blueprint 2025. It takes into
account the relevant sectoral workplans, and will be reviewed periodically to account for
developments in each sector.
The inaugural issue of the ASEAN Economic Integration Brief (AEIB) was released on
30 June 2017. The AEIB provides regular updates on ASEAN economic integration progress
and outcomes, and is a demonstration of ASEAN’s commitment to strengthen communication
and outreach to raise stakeholder awareness of the AEC.
The AEC Blueprint 2025 will lead towards an ASEAN that is more proactive, having
had in place the structure and frameworks to operate as an economic community, cultivating
its collective identity and strength to engage with the world, responding to new
developments, and seizing new opportunities. The new Blueprint will not only ensure that
the 10 ASEAN Member States are economically integrated, but are also sustainably and
gainfully integrated in the global economy, thus contributing to the goal of shared prosperity.
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E-commerce
Ecommerce, also known as electronic commerce or internet commerce, refers to the
buying and selling of goods or services using the internet, and the transfer of money and data
to execute these transactions. Ecommerce is often used to refer to the sale of physical
products online, but it can also describe any kind of commercial transaction that is facilitated
through the internet.
Whereas e-business refers to all aspects of operating an online business, ecommerce
refers specifically to the transaction of goods and services. The history of ecommerce begins
with the first ever online sale: on the August 11, 1994 a man sold a CD by the band Sting to
his friend through his website NetMarket, an American retail platform. This is the first
example of a consumer purchasing a product from a business through the World Wide Web—
or “ecommerce” as we commonly know it today.
Since then, ecommerce has evolved to make products easier to discover and purchase
through online retailers and marketplaces. Independent freelancers, small businesses, and
large corporations have all benefited from ecommerce, which enables them to sell their goods
and services at a scale that was not possible with traditional offline retail.
Global retail ecommerce sales are projected to reach $27 trillion by 2020.
Types of Ecommerce Models
There are four main types of ecommerce models that can describe almost every
transaction that takes place between consumers and businesses.
1. Business to Consumer (B2C):
When a business sells a good or service to an individual consumer (e.g. You buy a pair of shoes
from an online retailer).
2. Business to Business (B2B):
When a business sells a good or service to another business (e.g. A business sells softwareas-a-service for other businesses to use)
3. Consumer to Consumer (C2C):
When a consumer sells a good or service to another consumer (e.g. You sell your old furniture
on eBay to another consumer).
4. Consumer to Business (C2B):
When a consumer sells their own products or services to a business or organization (e.g. An
influencer offers exposure to their online audience in exchange for a fee, or a photographer
licenses their photo for a business to use).
Ecommerce can take on a variety of forms involving different transactional
relationships between businesses and consumers, as well as different objects being
exchanged as part of these transactions.
1. Retail:
The sale of a product by a business directly to a customer without any intermediary.
2. Wholesale:
The sale of products in bulk, often to a retailer that then sells them directly to consumers.
3. Dropshipping:
The sale of a product, which is manufactured and shipped to the consumer by a third party.
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GEC E1: Entrepreneurial Mind Module
4. Crowdfunding:
The collection of money from consumers in advance of a product being available in order to
raise the startup capital necessary to bring it to market.
5. Subscription:
The automatic recurring purchase of a product or service on a regular basis until the
subscriber chooses to cancel.
6. Physical products:
Any tangible good that requires inventory to be replenished and orders to be physically
shipped to customers as sales are made.
7. Digital products:
Downloadable digital goods, templates, and courses, or media that must be purchased for
consumption or licensed for use.
8. Services:
A skill or set of skills provided in exchange for compensation. The service provider’s time can
be purchased for a fee.
References
“Towards the end of poverty,” The Economist, June 1, 2013, accessed Jan. 5,
2021, https://www.economist.com/news/leaders/
McDougall, P. “Bored of the USA?: 'Made In America' Jeans Maker Levi Strauss to Move 500
Jobs Offshore,” International Business Times, Nov. 13, 2014, accessed Jan. 5, 2021
Klaus Schwab, ed., “The Global Competitiveness Report, 2016–2017,” World Economic
Forum, http://www3.weforum.org/docs/GCR20162017/05FullReport/TheGlobalCompetitivenessReport2016-2017_FINAL.pdf
“Ease of doing business index (1=most business-friendly regulations),” The World Bank,
accessed Jan. 5, 2021, http://data.worldbank.org/indicator/IC.BUS.EASE.XQ ↵
Aumann, T. “Supply Chain 101 The Journey of a T-Shirt (Updated,” July 9, 2014, accessed Jan.
5, 2021, https://www.slideshare.net/TimAumann/supply-chain-101-journey-of-a-tshirt ↵
“Supply Chain Fact Sheet,” FedEx, accessed Jan. 5, 2021, http://about.van.fedex.com/ourstory/company-structure/supply-chain-fact-sheet/ ↵
Foroohar, R. “Bangladesh Factory Collapse Will Force Companies to Rethink Outsourced
Manufacturing.”
Time,
April
30,
2013,
accessed
Jan
5,
2021, http://business.time.com/2013/04/30/bangladesh-factory-collapse-will-forcecompanies-to-rethink-outsourced-manufacturing/ ↵
Joe McBeth,2020, Global Supply Chain Management: 8 Market Forces Creating Complexity,
retrieved from https://www.jabil.com/blog/the-misunderstood-global-supply-chain.html
ASEAN, retrieved from: https://asean.org/asean-economic-community/
Business encyclopedia, retrieved from https://www.shopify.com/encyclopedia/what-isecommerce
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 76 of 87
GEC E1: Entrepreneurial Mind Module
Assessing Learning
a.post test
Activity 10
Name:
Course/Year/Section:
Date:
Score:_________________
Directions: Encircle the correct answer.
1. It is officially formed in 1995, grew out of the General Agreement on Tariffs and Trade
(GATT). The WTO oversees the implementation and administration of agreements
between member nations.
a. International Monetary Fund
b. Theory of Need of Achievement
c. World Trade Organization
d. World Bank
2. It is an international financial institution that provides loans for capital programs to
developing countries.
a. World Bank
b. North American Free Trade Agreement
c. World Trade Organization
d. International Monetary Fund
3. The IMF works to foster global growth and economic stability by providing policy,
advice, and financing to its members. It also works with developing nations to help them
reduce poverty and achieve macroeconomic stability.
a. World Bank
b. International Monetary Fund
c. World Trade Organization
d. North American Free Trade Agreement
4. It plays a central role in the management of balance-of-payments difficulties and
international financial crises.
a. World Bank
b. International Monetary Fund
c. World Trade Organization
d. North American Free Trade Agreement
5. Which of the following are not key characteristics of globalization?
a. Political
c. Cultural
b. Social
d. Economic
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 77 of 87
GEC E1: Entrepreneurial Mind Module
6. Which of the following countries is not included in the top ten most globally competitive
countries in 2016?
a. Japan
b. Malaysia
c. Singapore
d. United Kingdom
7. Which of the following countries is not included in the top ten most globally competitive
countries in 2016?
a. Hongkong
b. Switcher land
c. Indonesia
d. Hingkong
7. is the network of suppliers and contractors that provide needed materials and services
to a business.
a. World Bank
b. Supply Chain
c. World Trade Organization
d. North American Free Trade Agreement
8. refers to the buying and selling of goods or services using the internet, and the transfer
of money and data to execute these transactions.
a. E-commerce
b. Supply Chain
c. World Trade Organization
d. North American Free Trade Agreement
9. There are four main types of ecommerce models that can describe almost every
transaction that takes place between consumers and businesses. This statement is:
a. True
b. False
c. Neither true or false
d. None of the above
10. Ecommerce can take on a variety of forms involving different transactional
relationships between businesses and consumers, as well as different objects being
exchanged as part of these transactions. This statement is:
a. True
b. False
c. Neither true or false
d. None of the above
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 78 of 87
GEC E1: Entrepreneurial Mind Module
Activity 11
Name:
Course/Year/Section:
Date:
Score:
Directions: Write business plan using the following strategies SWOTAnalysis, Ishikawa Diagram,Ocean strategy, Michael Porter’s Five Forces
CRITERIA
Content &
Development
POOR
Does not meet assignment
objectives 5 pts
• The content is incomplete.
• Major points are not clear and /or
persuasive.
• Questions were not adequately
answered.
Organization &
Structure
• Organization and structure
detract from the message of the
writer.
• Paragraphs are disjointed and
lack transition of thoughts.
Format
• Paper lacks many elements of
correct formatting.
• Paper is inadequate/excessive in
length.
• Paper is not double spaced
Grammar,
Punctuation &
Spelling
Timeliness
• The paper contains numerous
grammatical, punctuation, and
spelling errors.
• The language uses jargon or
conversational tone.
• Submit 3 days or 1 week after the
deadline.
FAIR
Assignment objectives partially met
10 pts
• The content is not accurate.
• Major points are addressed, but
not well supported.
• Responses are inadequate or do
not address assignment.
• Content is inconsistent about the
purpose and clarity of thought.
GOOD
Meets assignment objectives
15 pts
• The content is accurate.
• Major points are stated.
• Responses are adequate
and address assignment.
• The content and purpose
of the writing are clear.
• The structure of the paper is not
easy to follow.
• Paragraph transitions need
improvement.
• The conclusion is missing, or if
provided, does not flow from the
body of the paper.
• Paper follows most guidelines.
• Paper is over/ under word length.
• The structure is mostly
clear and easy to follow.
• Paragraph transitions are
present.
• The conclusion is logical.
• The paper contains a few
grammatical, punctuation, and
spelling errors.
• The language lacks clarity or
includes the use of some jargon or
conversational tone.
• Submit 2 days after the deadline.
• Rules of grammar, usage,
and punctuation are
followed with minor
errors.
• The spelling is correct.
• Rules of grammar, usage, and punctuation
are followed; spelling is correct.
• Language is clear and precise; sentences
display consistently strong, varied
structure.
• Submit 1 day after the
deadline.
• Submit on time.
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
• Paper follows designated
guidelines.
• Paper is the appropriate
length as described for the
assignment.
• The format is good.
EXCELLENT
Exceeds assignment objectives 20 pts
• Content is comprehensive and accurate.
• Major points are stated clearly and are well
supported.
• Responses are excellent, timely, and
address assignments including course
concepts.
• The content and purpose of the writing are
clear.
• The structure of the paper is clear and easy
to follow.
• Paragraph transitions are logical and
maintain the flow of thought throughout
the paper.
• The conclusion is logical and flows from the
body of the paper.
• Paper follows all designated guidelines.
• Paper is the appropriate length as
described for the assignment.
• The format enhances the readability of the
paper.
Page 79 of 87
POINTS
GEC E1: Entrepreneurial Mind Module
________________________________________________________________________________________________________
UNIT VII. BUSSINESS PLAN
Overview
A business plan is a written document that describes in detail how a business—
usually a startup—defines its objectives and how it is to go about achieving its goals. A
business plan lays out a written roadmap for the firm from marketing, financial, and
operational standpoints. Business plans are important documents used to attract investment
before a company has established a proven track record. They are also a good way for
companies to keep themselves on target going forward. Although they're especially useful for
new businesses, every company should have a business plan. Ideally, the plan is reviewed and
updated periodically to see if goals have been met or have changed and evolved. Sometimes,
a new business plan is created for an established business that has decided to move in a new
direction.
Learning Objectives
________
At the end of this unit, I am able to:
1. know parts of business plan;
2. integrate business planning with business opportunity identification and selection;
3. identify opportunities for entrepreneurial nursing; and
4. present commercial nursing business.
Motivational Activity
Name:
Course/Year/Section:
Score:
Directions: Pick two words from the picture below and define on your own words.
________________________________________________________________
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All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
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GEC E1: Entrepreneurial Mind Module
Lesson Proper
Business Plan
A business plan is a fundamental document that any startup business needs to have
in place prior to beginning operations. Banks and venture capital firms indeed often make
writing a viable business plan a prerequisite before considering providing capital to new
businesses.
Operating without a business plan is not usually a good idea. In fact, very few
companies are able to last very long without one. There are definitely more benefits to
creating and sticking to a good business plan—including being able to think through ideas
without putting too much money into them and, ultimately, losing in the end.
A good business plan should outline all the projected costs and possible pitfalls of
each decision a company makes. Business plans, even among competitors in the same
industry, are rarely identical. But they all tend to have the same basic elements, including an
executive summary of the business and a detailed description of the business, its services,
and its products. It also states how the business intends to achieve its goals.
The plan should include at least an overview of the industry of which the business
will be a part, and how it will distinguish itself from its potential competitors.
Parts of Business Plan
The length of the business plan varies greatly from business-to-business. All of the
information should fit into a 15- to 20-page document. If there are crucial elements of the
business plan that take up a lot of space—such as applications for patents—they should be
referenced in the main plan and included as appendices. As mentioned above, no two
business plans are the same. But they all have the same elements. Below are some of the
common and key parts of a business plan.
•
•
•
•
•
Executive summary: This section outlines the company and includes the mission
statement along with any information about the company's leadership, employees,
operations, and location.
Products and services: Here, the company can outline the products and services it will
offer, and may also include pricing, product lifespan, and benefits to the consumer.
Other factors that may go into this section include production and manufacturing
processes, any patents the company may have, as well as proprietary technology. Any
information about research and development (R&D) can also be included here.
Market analysis: A firm needs a good handle of the industry as well as its target
market. It will outline who the competition is and how it factors in the industry, along
with its strengths and weaknesses. It will also describe the expected consumer
demand for what the businesses is selling and how easy or difficult it may be to grab
market share from incumbents.
Marketing strategy: This area describes how the company will attract and keep its
customer base and how it intends to reach the consumer. This means a clear
distribution channel must be outlined. It will also spell out advertising and marketing
campaign plans and through what types of media those campaigns will exist on.
Financial planning: In order to attract the party reading the business plan, the
company should include its financial planning and future projections. Financial
statements, balance sheets, and other financial information may be included for
already-established businesses. New businesses will instead include targets and
estimates for the first few years of the business and any potential investors.
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 81 of 87
GEC E1: Entrepreneurial Mind Module
•
Budget: Any good company needs to have a budget in place. This includes costs
related to staffing, development, manufacturing, marketing, and any other expenses
related to the business.
References
ADAM
HAYES,
2020,
Business
Plan,
retrieved
from
https://www.investopedia.com/terms/b/businessplan.asp#:~:text=A%20business%20plan%20is%20a,%2C%20financial%2C%20and%2
0operational%20standpoints.
Assessing Learning
a.post test
Activity 12
Name:
Course/Year/Section:
Date:
Score:_________________
Directions: Encircle the correct answer.
1. is a fundamental document that any startup business needs to have in place prior to
beginning operations.
a. Marketing strategy
b. product and services
c. Business Plan
d. Market analysis
2. This section outlines the company and includes the mission statement along with any
information about the company's leadership, employees, operations, and location.
a. Executive summary
b. product and services
c. Business Plan
d. Market analysis
3. it will offer, and may also include pricing, product lifespan, and benefits to the consumer
a. Financial Planning
b. product and services
c. Business Plan
d. Market analysis
4. It will outline who the competition is and how it factors in the industry, along with its
strengths and weaknesses.
a. Marketing strategy
b. product and services
c. Business Plan
d. Market analysis
5. It will also describe the expected consumer demand for what the businesses is selling
and how easy or difficult it may be to grab market share from incumbents.
a. Executive summary
b. product and services
c. Business Plan
d. Market analysis
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 82 of 87
GEC E1: Entrepreneurial Mind Module
6. This area describes how the company will attract and keep its customer base and how
it intends to reach the consumer.
a. Financial Planning
b. product and services
c. Marketing strategy
d. Market analysis
7. It will also spell out advertising and marketing campaign plans and through what types
of media those campaigns will exist on
a. Executive summary
b. product and services
c. Marketing strategy
d. Market analysis
8. Financial statements, balance sheets, and other financial information may be included
for already-established businesses.
a. Financial Planning
b. product and services
c. Marketing strategy
d. Market analysis
9. New businesses will instead include targets and estimates for the first few years of the
business and any potential investors.
a. Executive summary
b. product and services
c. Financial Planning
d. Market analysis
10. This includes costs related to staffing, development, manufacturing, marketing, and
any other expenses related to the business.
a. Executive summary
b. product and services
c. Budget
d. Market analysis
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 83 of 87
GEC E1: Entrepreneurial Mind Module
COURSE PLAN AGREEMENT FORM
I acknowledge that I received the course plan for GE E1 (Entrepreneurial Mind).
I have read the course plan and I understand the remote learning policies, instructions,
expectations and rules (e.g. online submission of requirements, downloading of digital
references, attendance, and attitude and grading system) as stated in the course plan of this
course.
If I have any questions or concerns, I will contact and consult my instructors for further
explanation.
I understand that I am responsible to complete the online assignments, assigned class
presentations, skills performance via video, quizzes and outputs by the due dates.
I agree to be prepared for and attend class on each scheduled meeting.
PRINTED NAME: __________________________________________ SIGNATURE: ______________
DATE: _________________
CONTACT NO: _____________________
Email address: (Please write exactly and eligibly) ____________________________
NAME OF PARENT/GUARDIAN with signature: ___________________________________________
RELATIONSHIP: ____________________________
CONTACT NO: _____________
COMPLETE ADDRESS: __________________________________________________
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 84 of 87
GEC E1: Entrepreneurial Mind Module
GEC E1 (Entrepreneurial Mind)
COURSE DESCRIPTION:
This course introduces the fundamentals of entrepreneurship that deals with the role
of entrepreneurship in economic development. Topics on Filipino entrepreneurial economy,
entrepreneurial motivation, government assistance and programs for entrepreneurs,
development and growth theories and applications are included. Relevant topics such as
business concepts and models, social responsibility, franchising, as well as e-commerce in the
Philippine setting shall also be discussed, in the nursing context.
COURSE CREDIT: 3 units Lecture (54 hours)
SEMESTER SCHEDULE: Additional readings will be assigned as necessary. This schedule may
be modified or change to fit the needs of the class.
WEEK
1st week
2nd week
3rd week
4th week
5th week
6th week
7th to 8th week
LECTURE TOPIC OUTLINE
• Orientation to the NEUST vision, mission, core values and tagline; CON
goals and objectives; and course content
• Leveling of expectations and discussion of the intended learning
outcomes and shift to OBE approach for the course
1. Independent study
2. Attire in the classroom/laboratory
3. Assessment, evaluation and grading system
Students ethics
Introduction to Entrepreneurship
• Wealth Creation, Management and Its Value
• What is Entrepreneurship?
• Theories of Entrepreneurship
• Types of Entrepreneurial Ventures
• Essential characteristics & social networking
• The entrepreneurial process
Entrepreneurship: Myths-Mindset Mandate
• Skills of a Nursing Entrepreneur
• Scope of Practice of a Nursing Entrepreneur
• Project Entrepre-Nurse of Department of Labor and Employment
(DOLE
• Ethics for Entrepreneurs
PROBLEM-SOLVING STRATEGIES
• The Different Problem-Solving Strategies in Business Ventures
SWOT Analysis
Ishikawa Diagram
Michael Porter’s Five Forces Strategies Blue
Ocean Strategy
MIDTERM
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 85 of 87
GEC E1: Entrepreneurial Mind Module
ENTREPRENEURIAL VENTURES IN THE PHILIPPINES
10th to 11th
week
•
•
•
•
Entrepinoy
Johari Window
Personal Entrepreneurial Competencies (PECs)
Business Models of SMEs in the Philippines:
Traditional
Sole
Partnership
Incorporation
Emerging
Start-Ups
Social Entrepreneurship Angel Investing
Others
ENTREPRENEURIAL CHARACTERISTICS AND COMPETENCIES
Different Characteristics of an Entrepreneur
Competencies of an Entrepreneur
12th week
13th to 14th week
15th to 17th week
18st week
Learning from the Failures Towards a Successful Entrepreneurial
Journey
Research on: Nature and Challenges Family in Business Couples
Business Teens
Business Women
Business Friends
Business Risk Management
THE GLOBAL TRENDS IN BUSINESS
1.The Supply Chain in the Global Market
2.ASEAN Integration
3.E-Commerce
Introduction to Business Model Canvas
Theory, Value Proposition and
Customer Segments
Testing Product Market Fit & debrief
BUSINESS PLAN OVERVIEW
Parts of a Business Plan
•The Executive Summary
•The Marketing Aspect
•The Production/Operations Aspect
•The Management/ Organizational Aspect
•The Financial Aspect
FINAL TERM
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
Page 86 of 87
GEC E1: Entrepreneurial Mind Module
FINAL COURSE OUTPUT:
The student is required to do and submit the following at the end of the course:
1. Submission of the all activities as stated in the module and other means of online
platform.
2. Compliance to the Online Learning Management System or any platform designated
like Activities/Online Quizzes.
CLASS POLICIES:
1. Attendance will be subjected to the guideline and protocols of the IATF and DOH, as
well as CHED.
2. Maximum participation is expected in all activities.
3. At all instances, respect for classmates and instructors are expected. Observe proper
decorum even as a netizen.
4. It is expected that all outputs be submitted on time on the designated dates.
5. Anyone violating these policies will be subjected to the Guidance Office for
disciplinary action.
6. All general policies of the College of Nursing and the University will also be
implemented as part of the policies for this course.
GRADING SYSTEM:
DESCRIPTION
MIDTERM
FINAL TERM
Term Examination
30%
25%
Quizzes/Unit Test
25%
15%
Output/Requirement
40%
30%
25%
Business Proposal
Attitude
5%
5%
TOTAL
100%
100%
FINAL GRADE for lecture= [Midterm Grade + (Final Grade x 2)]/3
Prepared by:
Noted:
Approved:
ZUZETTE B. CATABONA, MAN, RN
DR. JEAN N. GUILLASPER, RN
Academic Program Head
Date Signed:
Dean, College of Nursing
Date Signed:
CECILLE L. ALDAY, MAN, RN,LPT
JOEL F. BAUTO, RN
JANELA F. GALAC,Phd,RN
Subject Teacher
Date Signed:
________________________________________________________________
©2021 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means,
including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the
institution. Unauthorized reproduction is punishable by law.
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