ENTREPRENEURSHIP In this case, following the definition of - A business is considered self–owned

wealth, profit does not equate to wealth. when the person managing its daily
SALIENT FEATURES OF - Entrepreneurship is focused on wealth activities is also its owner.
ENTREPRENEURSHIP creation rather than profit generation. This is a straightforward requirement of
Profit is more applicable in the area of entrepreneurship.
AN ART OF CORRECT PRACTICES accounting as a way of measuring the - Businesses that are being managed by
- Entrepreneurship is an art and not a operating performance of a business. others for the benefit of the owners do not
science. It is not limited by absolute rules - Wealth is defined as the abundance of fall within the sphere of entrepreneurship.
unlike science which needs to follow money, property, or possessions. Such businesses that operate under this
rules. Entrepreneurship focuses on abundance concept are called intrapreneurship.
- It continuously grows, develops, in its conceptual definition of wealth. This includes franchising.
improves, and expands, there is a
constant change which denotes PROVIDING VALUE TO THE A RISK-TAKING VENTURE
movement and innovation. CUSTOMERS - The basic concept of risk in
This makes entrepreneurship dynamic - It creates economic wealth by providing entrepreneurship can be expressed in
and not static or stagnant. goods and services to the consumers. this statement:
- Since entrepreneurship is dynamic, These goods and services must have “Risk is inherent in an entrepreneurial
therefore it is an art. value to the customers to create wealth. venture. ”
By the moment the economy changes, - “Not to sell waste to consumers but only - Risk cannot be detached from any
the political, social, and entrepreneurial valuable goods and services”. Anything of entrepreneurial venture and the only way
activities will eventually change. no value to anybody is a waste. to remove it is to close the venture.
- It is related to creativity, which employs -value shall always be defined from the
constant change or evolution that perspective of the buyers and not from Spotting Opportunities
contributes towards enhancing the the seller.
enterprise. What is an ENTREPRENEUR?
- In search of something new IT ENTAILS OPENING AND MANAGING Originates from French word
THE SELF-OWNED ENTERPRISE entreprendre (to undertake).
A WEALTH CREATING VENTURE - Two important elements in opening a • A person who organizes, operates, and
-The word wealth in entrepreneurship is business: assumes the risk of business ventures
equivalent to profit. (A) the concept of opening a self-owned (American Heritage Desk Dictionary).
Profit represents the excess income or enterprise • A person who strongly advocates and
revenue from the cost and expenses. (B) the concept of managing it. correctly practice the concepts and
However, profit has different perspectives - A business must be self-owned to principle of entrepreneurship operating
like economists and accountants. qualify as an entrepreneurial endeavor.

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and managing self-owned business 3. Examine Existing Products An entrepreneur plays an important role
ventures or also known enterprises. • Think what else can you do to make an in the economy.
• Owns and manages the small existing product more appealing. • He is an agent of change, employer,
entrepreneurial endeavor for small • What special service can you offer to and contributor to
business customers’ satisfaction?
• How can technology promote efficiency Environmental Scanning
How to Spot a Business Opportunity in the production of this good or services? Changes in the physical environment
As an Entrepreneur he/she must see that • By scrutinizing the features, functions, have direct impact on the societal
opportunities can exist anytime and services rendered, design,and other environment and effect and be felt later in
anywhere,he/she is inherently gifted with aspects of goods and services, you may the industry environment.
instinct to quickly recognize conditions be able to generate countless ideas. AccordingtoWheelen and Hunger (2010)
that may give rise to opportunity and
business idea. 4.Take Advantage of your previous work The changes in the physical environment
experience have an impact on the societal
1. Identify Your Own Personal Skill • Having connections and referral. environment first in terms of resource
An entrepreneur should utilize their innate • Expertise of networks built. availability and costs, and later, on the
skills and convert these into profit. industry environment in terms of growth
Skills that are: 5. Identify the Problem and find solutions or decline of particular industries.
• Inherited • Doing observations on what the
• Developed recently community needs. However, it is perceived that all the
Examples:Baking, Carving, Stitching, Etc. • Offer services that are convenient, changes that happen in different layers of
where and the consumers can gain. the environment directly affect business.
2. Earn From your Hobbies and Favorite
Activities 6. Access to Suppliers Societal Environment
Combining the things you love to do with • Having connections to local producers. The societal environment is generally
money making ideas is an enjoyable way • Availability of resources in the area composed of social, political,
of making extra income. cultural,economic, legal, and
“You can only become truly accomplished 7. Identify Unexplored Resources technological forces.
at something you love. Don't Make • Includes innovating unused resources.
money your goal. Instead, pursue the • Discovering other applications uses The critical evaluation and thorough study
things you love doing,and then do them products. of the environment where the business
so well that people can’t take their eyes • Learning a new approach. operates is technically called
off you”– Maya Angelou environmental scanning

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1. Economic forces Literacy Environmental Scanning: Definition and
These are factors primarily caused by Consumer psychology Significance
changes or movements in the Philippine Time orientation
economy that have direct or indirect Lifestyle patterns Environmental Scanning
effects on the entrepreneurial venture. Professional career roles It refers to the gathering, critical
Economic forces or factors include the evaluation, and utilization of information
following: 4. Legal Forces events and activities and their
Interest rates Legal Forces are the elements that are relationship with physical, societal, and
Inflation rates directly involved in the legislation and industry environments.
Fiscal policies interpretation of laws and ordinances
Monetary policies directly affecting the business. This includes the different forces existing
Income Exchange rates employment Legal forces include legislation on the in every environmental layer that have
Consumer confidence following: direct and indirect effects on the
Product control entrepreneurial venture.
2. Cultural Forces Pricing and labeling
Culture basically refers to the integrated Health and safety of the workers Environmental scanning is very important
characteristics of a group of people of an Administration and election process for the following reasons:
ethnic group in a particular society Advertising and Promotion 1. It clearly portrays the trend, activities,
Cultural forces include the following: Exercise of profession and developments happening in every
Religion Education administration and fees environmental layer including the
Language interrelated relationships between the
Beliefs 5. Technological forces various forces in the environment.
Customs Technological forces refer to the trends 2. It identifies the expected threats and
Education and developments in computer and opportunities existing in the environment
information technology that have an 3. It points out the possible factors that
3. Social Forces impact on business. will determine the success of the
Social forces are elements in the society These occur almost every day. entrepreneurial venture.
resulting from human interaction that can Internet 4. It helps define the future path of the
influence the thoughts, behavior, attitude, Social media business.
and even the beliefs and customs of the E – commerce 5. It assists in the formulation of the most
people. Technological advancement appropriate entrepreneurial strategies.
Social forces include the following Technological infrastructure
Values
Traditions

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PESTEL Analysis
The PESTEL analysis is a tabular
framework of the trends and
developments in the different forces in the
external environment.
The acronym PESTLE stands for
Political
Economic
Sociocultural
Technological
Ecological
Legal forces.

The PESTEL analysis

Tools such as SWOT, ETOP, and QUEST can be used as

Template of PESTEL Analysis

By: migs