The document discusses whether entrepreneurs are born or made, emphasizing competencies required for success, including personal, interpersonal, and business competencies. It outlines various factors affecting entrepreneurship, such as environmental and personality aspects, and highlights the significance of innovation and risk-taking in entrepreneurial ventures. Additionally, it provides strategies for identifying business opportunities and principles for successful business practices.

1. Are entrepreneurs
born or made?

2. Is there such a thing as a
‘natural-born
entrepreneur’?

3. Three levels of competencies
1. Personal competencies-These are your abilities to
ground yourself so that you are secure and self-assured in
whatever situation you may find yourself.
• Ex. creativity, determination, integrity, self-criticism.
2. Interpersonal competencies-These are your ability to
lead, influence, communicate, supervise, negotiate, and
control people at all levels. It is the ability to get along with
people and motivate people to perform jobs.
Ex. communication, engagement, delegation

4. • 3. Business competencies – These are set of particular
abilities and knowledge that sets a company apart from its
competitors (yourbusiness.azcentral.com). It also refers to
the key characteristics that successful entrepreneurs
should have in order to be successful.
• Ex. business vision, financial management,
networking

5. Factors Affecting Entrepreneurship
• There are several factors that affects
entrepreneurship such as psychological,
economic, social and cultural factors, but
those factors can be categorized only into
two factors to wit, environmental and
personality factors (De Guzman, 2018)

6. 1. Environmental factors
• These factors relate to the place or
conditions in which an entrepreneur has
to work. Factors such as economic and
social conditions, political climate, legal
system, and market situations are just few
examples of environmental factors that
significantly affect the economic activities
of an enterprise.

7. • For example, the tax imposed by the
Bureau of Internal Revenue on the
online sellers of commodities affects
the production of goods and/or
services of an enterprise

8. 2. Personality factors
These are the traits possessed
by an entrepreneur.

9. 1. Drive. An entrepreneur is self-motivated enough to
pursue his chosen course without relenting even in the face
of adversity. If he fails in his first attempt, he makes another
attempt.
2. Critical thinking. An entrepreneur’s job involves
decision-making and problem solving. A man with superior
thinking ability can see through the maze of information (or
disinformation) brought before him.
3. Human relations ability. An entrepreneur possesses
high social awareness and ability to build relationship with
others.

10. 4. Ability to communicate. Communication skill is a very important
characteristic that an entrepreneur must possess in order to succeed. The
ability to understand and to be understood makes it easier for the entrepreneur
to transact business.
5. Technical knowledge. An entrepreneur must have familiarity of the business
venture he is going to undertake.
6. Reasonable risk taker. When a person starts a new venture, he has already
begun to assume the risk of business failure. Entrepreneurs enjoy challenges.
But they are careful and calculating. So, they do away from high risk situations,
because these might not be attainable. However, entrepreneurs also avoid low-
risk situations because there are no challenges. A risk situation exists when
results are not certain, either it is success or failure.
In view of the risk-taking abilities of entrepreneurs, they make things happen
rather than

11. 7. Self-confident. Entrepreneurs have strong faith in their abilities. They
believe they can be the best in their field. They do not accept things as they are,
because they believe they can do things better.
8. Goal setter. An entrepreneur usually has a specific target and because he is
persistent to
achieve a certain target, he creates strategies and action plan.
9. Accountable. An entrepreneur takes full responsibility of whatever will
happen to the
enterprise.
10. Innovative. An entrepreneur always seeks for something new and useful
product or
service. He always strives to discover new things or strive to improve existing
products or
services

12. 3. Biological factor
This factor is something new. The writer of this module
decided to include biological factor since many enterprises
had been affected by the COVID-19 pandemic. This
pandemic is a kind of viral respiratory infection that has no
cure yet at the time of this writing. Various enterprises and
commercial establishments stay closed, work stoppage
occurred, and there was a limit in mobility of almost
everyone in the entire world. However, other businesses
strive because of this factor such as the manufacturers of
alcohol, personal protective equipment and face masks.
Entrepreneurs of this sort were able to design an innovative

13. Core Competencies in Entrepreneurship
• 1. Economic and dynamic activity.
Entrepreneurship is an economic activity because it
is concerned in the creation and operation of an
enterprise with a purpose of creating value or
wealth through maximum utilization of scarce
resources. This value creation activity is performed
continuously in the midst of uncertain business
environment. Hence, entrepreneurship is regarded
as a dynamic force (De Guzman, 2018)

14. • 2. Innovation. Entrepreneurship involves
continuous search for new ideas. It compels an
individual to continuously evaluate the existing
modes of business operations so that more efficient
and effective systems can be evolved and adopted.
In other words, entrepreneurship is a continuous
effort for synergy to ensure optimization of
performance in organizations (De Guzman, 2018)

15. 3. Profit potential. Profit potential is the ability of a product
or service to generate revenue which, after expenses, leads
to net income.
4. Risk bearing. There are always uncertainties in every
business enterprise. An entrepreneur must be willing to
undertake a calculated risk arising from the creation and
implementation of new business ideas. These ideas are
always tentative and could result to either positive or
negative outcome

16. Basic Business Cycle
Buying
Adding
value
Selling

17. Business Cycle
Secure money
Allocate earnings
Selling
Purchasing
Spend
money
Manufacturing

18. The Key Ideas to Understand
Entrepreneurship
❑Economy→is the system by which the production and consumption of
goods and services is organized in a country or community.
❑Employment→is the state of being employed or having a job; the
occupation for which you are paid.
❑Enterprise →is any activity which provides customers with a product
(goods/services) with a view to making a profit.
❑Entrepreneurship→is the practice of starting new organizations,
particularly new business, generally in response to identified opportunities.
❑Small business→is one that is independently owned and operated by the
owner

19. Business Opportunities
Most successful entrepreneurs do not simply ‘enter the
market’. They build on experience, knowledge, education, and
skills. Successful entrepreneurs find some need in the market
that is not being met. They must have the knowledge,
skills, and experience to satisfy their customers. It may be in an
area which they learned in their studies, a former experience, a
hobby, or a special interest. But even with a strong base of
knowledge, more learning and more research are almost always
needed.

20. There are many ways to identify business opportunities.
Here are some tips:
1. Listen to your potential clients and past leads
Think who will be your potential customers and consider
their needs, wants, challenges and frustrations with your
chosen field of business. Do they used similar products and
services before?
2. Listen to your customers
It is important to listen to your customer’s ideas about your
industry. Take note for their frequently asked questions,
experiences, frustrations, feedback, and complaints

21. 3. Look at your competitors
Conduct a survey to determine the status of other businesses in
your industry. Try to analyze their actions and it results.
4. Look at industry trends and insights
Check the industry publications, associations, set google alerts
and other social media platforms. This will educate you on the
latest techniques and trends in chosen industry.

22. Environmental Scanning
The purpose of environmental scanning is to investigate how
entrepreneurs scan their environment for information to identify
various contextual factors that affect their activities and
determine how the entrepreneurs’ perceptions of the
environmental impact their marketing strategies. These are
various techniques through which images/information are
recorded or gathered from conditions, situations, and materials in a
particular environment.

23. Environmental Scanning
Areas for Business Opportunities
• Community needs – knowing what the people want or need in
terms of good and services is the basic step to use your creativity,
resourcefulness, and analytical skills. Survey and simple research
may help you discover new material or new uses of an existing
products which may provide better services for the local and
foreign markets.
• Local Specialized Skills – know the specialized traditional skills
in your community as we can develop more and promote
opportunities for all.

24. • Industrial Information - are newspapers, technical and business
journals that provide techniques and information on business
• Technology -are modern gadgets which can be utilized to identify
business opportunities.
• Evaluation of developmental plans -developed plans which are still
possible in the community.
• Review of old projects – observe and find out business elsewhere.
Old project may become useful today.
Environmental Scanning

25. Principles of Business Opportunities
⮚Have a Quality Product
It is already the notion of people that we can’t build a good business
without a good product whether you are already having a restaurant,
selling furniture, or providing a service to your customers. So, you
must be wise and knowledgeable about your business and you must
have a quality product or service that will add value to your
customers.
⮚Know Your Industry and Competitors
Pricing your products and the services you offer determine whether
people will be interested to avail or purchase them. That is why you
must make sure that what you offer is of quality and at a reasonable

26. ⮚Promote Your Products and Services
Always keep in mind that you must have the dynamic study of
the fundamentals of marketing through traditional and digital
media. Moreover, you must have learned how to effectively share
your company’s products and services. Remember, that getting the
word out about what you offer is how you will grow your
business.
⮚Build a Great Staff
Your employees are your most important asset. They can help
you build a successful company, or they can be the cause of
your ultimate downfall.
Principles of Business Opportunities

27. ⮚Understand Organizational Structure and Design
It is vital that you have the basic understanding of how good businesses
run effectively. From its initial structure of departments and personnel to
how individual projects are managed; you need to run your business as
effectively and efficiently as you can.
⮚Use Capital and Cash Flow Wisely
Your business needs to start with a good financial base, but it is equally
important that you also keep a positive cash flow which will help you grow
your business and stay in the competition. You must have sufficient funds
to pay your employees and vendors, so you produce your products and sell
them at a good profit.
Principles of Business Opportunities

28. ❑Market Penetration Strategies
A growth strategy in business is what we call market penetration.
Truly, a small company uses a market penetration strategy once it
decided to market the existing products within the same market it
has been using.
❑Market Expansion or Development
It is said that a market expansion growth strategy, often called
as market development, which entails selling current products in
a new market.
Strategies of Business Opportunities

29. ❑Product Expansion Strategy
A small company may also expand its product line or add new features to
increase its sales and profits. When small companies employ a product
expansion strategy, also known as product development, they continue
selling within the existing market.
❑Growth Through Diversification
Growth strategies in business also include diversification where a small
company will sell new products to new markets.
❑Acquisition of Other Companies
Growth strategies in business can also include an acquisition. In the
acquisition, a company purchases another company to expand its
operations.
Strategies of Business Opportunities