Entrepreneurial

Defined
 MODULE CONTENT

COURSE TITLE: ENTREPRENEURSHIP

MODULE TITLE Entrepreneurship Defined

NOMINAL DURATION: 3 HRS

SPECIFIC LEARNING OBJECTIVES:

At the end of this module you MUST be able to:
1. Know the meaning of Entrepreneurship
2. Learn the different Development and Growth Theories
3. Understand the importance of Entrepreneurship
4. Know the Contributions of Entrepreneurship in the economy

TOPICS:
1. Different definitions of Entrepreneurship
2. Development and Growth Theories
3. The Importance of Entrepreneurship
4. Contributions of Entrepreneurship in the Economy

ASSESSMENT METHOD/S:
Multiple Choice

REFERENCE/S:
Fajardo, Feliciano. R. Entrepreneurship. Q.C.: National Book Store,
1994. pp.13-28.

Bachelor Of Science In Date Developed:

Bulacan
Office Management July 2020
Polytechnic Page 2 of 10
Date Revised:
Entrepreneural Bahavior College
July 2020
and Competencies Document No. Developed by:
ENT 213 Revision # 02
30-Ent 213 Jennet M. Natividad
 Information Sheet ENT 213-1
Entrepreneurship Defined
Learning Objectives:
After reading this INFORMATION SHEET, YOU MUST be able to:
1. Explain what Entrepreneurship is all about.
2. Determine the contributions of Entrepreneurship to Philippine
economy.

There are various definitions of entrepreneurship. However, the key

concept is innovation. This refers to new or different ways of doing things, like
technology, marketing human relations, management, and so forth. When an
individual creates a new product, it is innovation. When he sells his product in
a different approach, it is also innovation.

This topic explains the definition of entrepreneurship, the various

theories of economic development and growth, importance of entrepreneurship
and the contributions of entrepreneurship in the country’s economy.

Bachelor Of Science In Date Developed:

Bulacan
Office Management July 2020
Polytechnic Page 3 of 10
Date Revised:
Entrepreneural Bahavior College
July 2020
and Competencies Document No. Developed by:
ENT 213 Revision # 02
30-Ent 213 Jennet M. Natividad
 (ahn ‘tra pra nur ship)

Entrepreneurship - is the capacity for innovation, investment and

expansion in new markets, products and
techniques. – Professor Nathaniel Left

This definition implies that an enterprise is at work whenever an individual

takes the risks and invest resources to make something unique or something
new, designs a new way of making something that already exists, or creates
new markets.

However, entrepreneurship is not only applicable to business enterprises. It

can also be done in schools, hospitals and other social services institutions.
Entrepreneurship has special or extra-ordinary features, such as the creation
of something new or something different. In short, it is innovation which
distinguishes entrepreneurship from other activities.

Professor Hirsh said:

“Entrepreneurship is more than a word. It is a mission. We must perceive
opportunities inherent in change; we must create a desire for pursuing the
opportunities that arise; and we must create an environment in which success
is possible and the consequences of failure are tolerable.”

Bachelor Of Science In Date Developed:

Bulacan
Office Management July 2020
Polytechnic Page 4 of 10
Date Revised:
Entrepreneural Bahavior College
July 2020
and Competencies Document No. Developed by:
ENT 213 Revision # 02
30-Ent 213 Jennet M. Natividad
 Development is a process while growth is a product. So, growth is the
result of development. In agriculture, the application of fertilizers, insecticides,
labor, machines and other productive inputs represents a process of
development. The results or outputs are crops like rice, corn or sugar. In
simple terms, development is input while growth is the output.

Input Output

Development Growth

Bachelor Of Science In Date Developed:

Bulacan
Office Management July 2020
Polytechnic Page 5 of 10
Date Revised:
Entrepreneural Bahavior College
July 2020
and Competencies Document No. Developed by:
ENT 213 Revision # 02
30-Ent 213 Jennet M. Natividad
 - Economic freedom
1. Laissez Faire - The government should
Theory not interfere in economic
activities.
- The government should
play the key role in
economic development.
- Contends that during
economic depression the
government should put up
massive public works, like
construction of roads and
2. Keynesian bridges, and other labor-
Theory intensive projects.
- Generates large-scale
employment resulting to
more income for more
people.
- Means more production
and enhances economic
development.
- By English Economist
David Ricardo
- The key factor in
economic growth is land.
3. Ricardian
Theory - Agriculture plays a major
role in economic
development
- People cannot live without
food and natural resources.
- The key factor in
economic growth is
physical capital like
4. Harrod-Domar machines.
Theory
- More products can be
produced through the use
of machines.

Bachelor Of Science In Date Developed:

Bulacan
Office Management July 2020
Polytechnic Page 6 of 10
Date Revised:
Entrepreneural Bahavior College
July 2020
and Competencies Document No. Developed by:
ENT 213 Revision # 02
30-Ent 213 Jennet M. Natividad
 - The key factor is
technology.
- The application of
modern technology in
5. Kaldor Theory the production of goods
and services has been
responsible for the
economic success of the
highly developed
countries.
- by Joseph Schumpeter
- The innovators or
6. Innovation entrepreneurs have the
Theory courage and imagination
to handle old systems,
and be able to transform
theory into reality.
- These are several other
theories which are non-
economic in nature.
- Key factors are:
7. Non-economic 1. Political stability
Theories 2. Efficient public
administration
3. Open society
4. Positive cultural
values

Bachelor Of Science In Date Developed:

Bulacan
Office Management July 2020
Polytechnic Page 7 of 10
Date Revised:
Entrepreneural Bahavior College
July 2020
and Competencies Document No. Developed by:
ENT 213 Revision # 02
30-Ent 213 Jennet M. Natividad
 In the Philippines, most of our economic activities fall under the micro
and small business categories. There are many retailers, vendors, online sellers
and other small sole proprietors. As long as they perform some risk-taking
ventures, innovations and creative undertakings, they are considered
entrepreneurs.

Because of the proven importance of entrepreneurship, subjects in

entrepreneurship have been included in the curriculum of high schools,
colleges and universities in many countries.

Harvard President Derek Bok said:

“The Harvard Business School is beginning to see that its role is
not just training general managers but also training and providing preparation
for people to start their own business… It is a kind of new freedom to go out
and take some risks and run your own show… It’s a kind of a new frontier for
people of some boldness and creativity.”

Bachelor Of Science In Date Developed:

Bulacan
Office Management July 2020
Polytechnic Page 8 of 10
Date Revised:
Entrepreneural Bahavior College
July 2020
and Competencies Document No. Developed by:
ENT 213 Revision # 02
30-Ent 213 Jennet M. Natividad
 1. Develop New 2. Discover New 3. Mobilize Capital
markets Sources of Materials resources

4. Introduce New
Technologies, new
5. Create employment
industries and new
products

• Markets are people who are willing and able to satisfy their
1. Develop
needs.
New
• Entrepreneurs are resourceful and creative, they can create
customers or buyers.
Markets
• Entrepreneurs are never satisfied with traditional or existing sources of
materials.
2. Discover • In business, those who can develop new sources of materials enjoy a
new sources comparative advantage in terms of supply, cost and quality.
of materials

• Entrepreneurs are the organizers and coordinators of the

major factors of production, such as land, labor and capital.
3. Mobilize
capital
• They properly mix these factors of production to create
resources goods and services.

Bachelor Of Science In Date Developed:

Bulacan
Office Management July 2020
Polytechnic Page 9 of 10
Date Revised:
Entrepreneural Bahavior College
July 2020
and Competencies Document No. Developed by:
ENT 213 Revision # 02
30-Ent 213 Jennet M. Natividad
 1. Develop New 2. Discover New 3. Mobilize Capital
markets Sources of Materials resources

4. Introduce New
Technologies, new 5. Create
industries and new employment
products

• Entrepreneurs take advantage of business

4. Introduce opportunities and transform them into profits. They
new introduce something new or something different.
technologies, • Entrepreneurial spirit has greatly contributed to the
new industries modernization of our economy.
and new
products
• The biggest employer is the private business sector. Millions of
jobs are provided by factories, service industries, agricultural
enterprises and the numerous small-scale businesses.
• Such massive employment has multiplier and accelerator effects
5. Create on the whole economy. More jobs mean more incomes. More
employment production requires more employment.

Bachelor Of Science In Date Developed:

Bulacan
Office Management July 2020
Polytechnic Page 10 of 10
Date Revised:
Entrepreneural Bahavior College
July 2020
and Competencies Document No. Developed by:
ENT 213 Revision # 02
30-Ent 213 Jennet M. Natividad