UNDERSTANDING ENTREPRENEURSHIP CNHS - SHS ENTREPRENEUR- A person who organizes, operates, and assumes the risk of business ventures. • A person who strongly advocates and correctly practices the concepts and principles of entrepreneurship in operating and managing the self-owned business venture. This venture is also called enterprise. Entrepreneur originates from the French word entreprendre which means “to undertake”. It connotes a business paradigm which signifies the start of a new business undertaking. ENTREPRENEURSHIP • the art of observing correct practices in managing and operating a self-owned wealthcreating business enterprise by providing goods and services that are valuable to the customers. Small Business refers to a business or enterprise that correctly adopts and practices the principles of entrepreneurship. It is owned by one person with a limited workforce of not more than 20 persons. The term also includes the small and medium enterprise (SMEs) that have been strongly promoted by both government and non-government organizations (NGOs) in their desire to improve the lives of the Filipino people through entrepreneurship. Ordinary Small Business pertains to a business enterprise managed and operated by an owner who is not an advocate of and does not practice the concepts and principles of entrepreneurship. The mere opening of a business enterprise is not entrepreneurship and the person owning and running its day-to-day operations is not an entrepreneur but rather a businessperson. SALIENT FEATURES OF ENTREPRENEURSHIP ENTREPRENEURSHIP IS AN ART OF CORRECT PRACTICES – Entrepreneurship is an art not a science. It is not governed by fixed and absolute rules, whereas science is. Thus there is constant change which denotes movement and innovation. Entrepreneurship therefore is not static or stagnant. It continuously grows, develops, improves and expands; the change does not stop. SALIENT FEATURES OF ENTREPRENEURSHIP ENTREPRENEURSHIP IS AN ART OF CORRECT PRACTICES – As an art, entrepreneurship is dynamic. By the moment the economic activity changes, the political, social, and entrepreneurial activities will eventually change. As an art, entrepreneurship is closely related to creativity. By creativity, there is constant change or evolution that contributes towards the enhancement of the enterprise. SALIENT FEATURES OF ENTREPRENEURSHIP ENTREPRENEURSHIP IS AN ART OF CORRECT PRACTICES – Creativity results in new ideas which are the backbone of entrepreneurship. Entrepreneurs keep on searching for something new. They find ways to transform new ideas into entrepreneurial opportunities. This aspect differentiates an entrepreneur from an ordinary small businessperson. An entrepreneur transforms feasible new ideas into an entrepreneurial venture, while an ordinary businessperson only builds upon existing ideas to gain immediate earnings from his/her business. SALIENT FEATURES OF ENTREPRENEURSHIP ENTREPRENEURSHIP IS AN ART OF CORRECT PRACTICES – As a future entrepreneur, one should always remember that nothing is permanent in the field of entrepreneurship. What is applicable to one entrepreneur may not be applicable to another. Certain things may happen to one entrepreneur but may not happen to another. Creativity should always be applied to entrepreneurial undertakings by regularly evaluating the market and the environment and responding to the changes in them. SALIENT FEATURES OF ENTREPRENEURSHIP ENTREPRENEURSHIP IS AN ART OF CORRECT PRACTICES – Art in entrepreneurship is also related to the correct practices or ways of carrying out entrepreneurial activities. The owner of an ordinary small business has the freedom to manage and operate his/her business according to what pleases him/her. Ideally, he/she prefers business activities which are done easily. The entrepreneur, however, has to perform entrepreneurial activities correctly regardless of whether they are undertaken easily or not. What is important in entrepreneurship is that the business activities are performed correctly. SALIENT FEATURES OF ENTREPRENEURSHIP ENTREPRENEURSHIP IS A WEALTHCREATING VENTURE – opening a business with the working philosophy that it will provide an income is common among ordinary businesspeople. It should not be the approach and way of an entrepreneur. An entrepreneur has a different perception and outlook from an ordinary businessperson. An entrepreneur looks at his/her own business as a wealth-creating venture while an ordinary businessperson regards his/her small business basically as a source of income. SALIENT FEATURES OF ENTREPRENEURSHIP ENTREPRENEURSHIP IS A WEALTHCREATING VENTURE – The concept of abundance and not of accounting profit is the very essence of wealth in entrepreneurial endeavour. Wealth is created when the benefits derived by the owner in providing goods and services to the customers are abundant enough to cover the costs incurred by the business. At the same time, it provides personal benefits to the owner, which in turn improve his/her life. Otherwise, the small business is not a wealth-creating venture. SALIENT FEATURES OF ENTREPRENEURSHIP ENTREPRENEURSHIP IS A WEALTHCREATING VENTURE – The wealth created by the small business must improve the life of the owner and cascade to the development of the local economy and eventually the whole country. The creation of wealth must gradually accelerate and benefit both the owner and the community. Unless this happens, the business is not a wealth-creating venture and may remain where it started. That is why an entrepreneur regularly evaluates the level of wealth created by the business. SALIENT FEATURES OF ENTREPRENEURSHIP ENTREPRENEURSHIP PROVIDES VALUABLE GOODS AND SERVICES – The mere act of selling goods or providing services does not make a person perform or act within the concept of entrepreneurship. Entrepreneurship creates economic wealth by providing goods and services to the consumers. These goods and services must have a value in order to create wealth. One essential principle in entrepreneurship is not to sell waste to consumers but only valuable goods and services. SALIENT FEATURES OF ENTREPRENEURSHIP ENTREPRENEURSHIP PROVIDES VALUABLE GOODS AND SERVICES – Valuable goods and services highly satisfy the target buyers in terms of quality and price. The entrepreneur convinces the consumers that they gain more benefits than what they pay for the goods and services. The entrepreneur defines value from the perspective of the buyers and not only from his/her own because what is valuable to the entrepreneur may not be of any value to the consumers. Value therefore is subjective. SALIENT FEATURES OF ENTREPRENEURSHIP ENTREPRENEURSHIP PROVIDES VALUABLE GOODS AND SERVICES – Not every person considers the same things as valuable. When consumers are satisfied with the products and services offered by an entrepreneur, they tend to patronize the business and even endorse it to others. Thus, in simple analysis, wealth is created. SALIENT FEATURES OF ENTREPRENEURSHIP ENTREPRENEURSHIP ENTAILS OPENING AND MANAGING THE SELF-OWNED ENTERPRISE – This feature highlights two important elements: the concept of opening a self-owned enterprise and the concept of managing it. It must be selfowned in order to qualify as an entrepreneurial endeavour. A business is considered self-owned when the person managing its daily activities is also its owner. This is a straightforward requirement of entrepreneurship. SALIENT FEATURES OF ENTREPRENEURSHIP ENTREPRENEURSHIP ENTAILS OPENING AND MANAGING THE SELF-OWNED ENTERPRISE – Businesses that are being managed by others for the benefit of the owners do not fall within the sphere of entrepreneurship. Such businesses are operating under the concept of intrapreneurship. SALIENT FEATURES OF ENTREPRENEURSHIP ENTREPRENEURSHIP ENTAILS OPENING AND MANAGING THE SELF-OWNED ENTERPRISE – The issue in a self-owned business is very clear and simple; it is plainly about ownership. It is neither about the amount of invested capital nor about the nature of the business enterprise. Therefore, business falling under the concept of entrepreneurial endeavour may range from a small bakery or restaurant in the neighbourhood to a multimillion construction company operating throughout the Philippines, provided that the business is managed by the owner himself/herself. SALIENT FEATURES OF ENTREPRENEURSHIP ENTREPRENEURSHIP IS A RISK-TAKING VENTURE – “Risk is inherent in an entrepreneurial venture”. Once an entrepreneurial venture is born because of new ideas or opportunities, risk comes simultaneously with the venture. Risk cannot be detached from any entrepreneurial venture and the only way to remove it is to close the venture. The risk in entrepreneurship is called a business risk. SALIENT FEATURES OF ENTREPRENEURSHIP ENTREPRENEURSHIP IS A RISKTAKING VENTURE – The approach in handling business risk differentiates an entrepreneur from an ordinary businessperson. Usually, an ordinary businessperson does not understand the nature of business risk which in one way or another may lead to the failure of his/her business. He/she shuns or avoid it which indicates that he/she only favors operating under favourable condition. SALIENT FEATURES OF ENTREPRENEURSHIP ENTREPRENEURSHIP IS A RISK-TAKING VENTURE – Wherever the business goes, there will always be business risks. Hence, an entrepreneur should face business risk intelligently. He/she cannot eliminate something ingrained in the entrepreneurship. Instead, he/she must find ways to minimize the effects of risk.
