Entrep Mind Module 5

ILOCOS SUR
POLYTECHNIC STATE
SantaCOLLEGE
Maria Campus
MODULE
MODULE IN
Elective 104
THE ENTREPRENEURIAL MIND
Module 5
ALBERT G. NAUNGAYAN
Assistant Professor I
Course Code: ELECTIVE 104

Descriptive Title: THE ENTREPRENEURIAL MIND
Instructor: ALBERT G. NAUNGAYAN
ILOCOS SUR
POLYTECHNIC STATE
SantaCOLLEGE
Maria Campus
MODULE
MODULE 5
ENTREPRENEURIAL PERSONALITY
Entrepreneurship is not for everyone. But how do we know, beforehand, that a person is a
good prospect. What determines success or failure? It is important for those interested in
entrepreneurship to know the answers to those question.
LISTS OF TOPICS TO BE INCLUDED IN THE MODULE

1. The Environment as a Factor
2. The Entrepreneur’s Personality
3. What is Personality
4. Characteristics of Entrepreneurs
5. What Motivates People to Become Entrepreneurs
6. The Entrepreneur and the Manager Distinguished
LEARNING OBJECTIVES
1. Identify important personal traits of an entrepreneur.
2. Discuss the difference between entrepreneur and manager.
LEARNING CONTENT
Factors that Determine Success or Failure in an Entrepreneurship
A. Environment as a Factor
Entrepreneurship will survive and grow only in economic environments of free enterprise. Full
blooming entrepreneurship cannot be expected to flourish in economies that are not fully supportive of
free enterprise.
Types of Economic Environment
1. Fully supportive of entrepreneurships- entrepreneur’s task is easy
2. Moderately supportive of entrepreneurships- entrepreneur’s task is less easy
3. Not supportive of entrepreneurships- entrepreneur’s task is hard
B. The Entrepreneur’s Personality

Every person has a personality that is unique and different from others. Each personality type
has corresponding type of job that fits it. A certain personality, however, may fit in more than one type
of job, although the level of fitness will be different with each job.
Personality Types Entrepreneur’s Job Teacher’s Job Engineer’s Job

A Perfect fit Moderate fit Unfit
B unfit Perfect fit Moderate fit
C Moderate fit unfit Perfect fit
Personalities and Job Fit
What is Personality
Personality refers to the pattern of characteristics that distinguishes one person from another. It
includes the person’s traits, values, motives, genetic blueprints, attitudes, emotional reactivity, abilities,
self-image, intelligence, and visible behavior patterns.

ILOCOS SUR
POLYTECHNIC STATE
SantaCOLLEGE
Maria Campus
MODULE
Six Personality Types According to Holland
1. Realistic- this individual prefers activities involving aggressive behavior and physical exertion
requiring skill, strength, and coordination. Examples: farming and mining
2. Investigative- individual prefers to be analytical, curious, methodical, and precise. Example: crime
investigator
3. Artistic- he is expressive, nonconforming, original, and introspective. Examples: song writer and
novelist
4. Social- he enjoys working with and helping others and purposefully avoids systematic activities
involving tools and machinery. Example: social worker
5. Enterprising- this individual enjoys verbal activities to influence others and to attain power and status.
Examples: manager and entrepreneur
6. Conventional- he enjoys the systematic manipulation of data, filing of records, or reproducing
materials. Examples: accounting, finance
Characteristics/Traits of Entrepreneurs
1. Drive
Reaching a goal is often achieved through a series of moves. It is rare for entrepreneurs to
succeed with just a single stroke. If he fails in the first attempt, he makes another attempt. He repeats
the attempts, maybe with some improvements until he succeeds. This will happen if the person has
drive.
2. Thinking ability
An entrepreneur must use his thinking ability and it should be sufficient to guide him to make
the best decisions for success.
3. Human relations ability

There are 3 types of persons that will determine the survival and growth of business firms,
namely:
a. Customer- makes the decision whether to patronize the firm or not.
b. Employee- can be productive and loyal to the firm. He can be an asset depending on superior’s
treatment.
c. Third party with interest in the firm- this can also be made to be more cooperative and
accommodating. This will depend on how the company relates to them.
4. Ability to communicate
This skill is very important to entrepreneur in order to become successful. The ability to
understand and be understood makes it easier for the entrepreneur to transact business with
customers, bankers, and government officials.
When the entrepreneur gives orders that are easily understood, wastages in time and
materials are minimized. An entrepreneur who has little ability to communicate tends to do demoralize
and alienate his staff. What usually happens next is low productivity and high employee turnover.
5. Technical knowledge
Operating a business requires the performance of major and minor tasks like recruitment of
personnel, purchasing of materials, bookkeeping, sanitation, cashiering, and others. An entrepreneur
should at least be familiar with and posses some technical knowledge about how the various tasks are
performed.

ILOCOS SUR
POLYTECHNIC STATE
SantaCOLLEGE
Maria Campus
MODULE
6. Reasonable risk-taker
When a person starts a new venture, he has already begun to assume the risk of business
failure. Entrepreneurs are expected to be reasonable risk-takers, not conservative but also not
gamblers. They assume risks but only after they are convinced that they have the skills and resources
to overcome the difficulties inherent in a new venture.
Types of Risk Taker Level of Risk Taken Expected Level of Benefits
Salaried employee low Low
Entrepreneur moderate Moderate
Gambler high hgh
Entrepreneur compared with Other Risk Takers
7. Self-confident
In any undertaking, a person’s belief in his ability leads him to actual performance and eventual
success. When a person has self-confidence, he does his job without inhibition.
8. Goal setter
Goals are very useful motivational tools especially those related to accomplishing the
objectives of entrepreneurs.
Functions of Goal:
a. Directs one’s attention to a specific target.
b. Encourages one to exert effort toward achieving something specific.
c. Encourages persistence.
d. Fosters the creation of strategies and action plans.
9. Accountable
The success of an enterprise will depend much on the willingness of subordinates to comply
with the wishes of the entrepreneur. Compliance can be expected if the entrepreneur is accountable
enough to take responsibility for whatever happens to the firm.
10. Innovative
A free enterprise allows business enterprises to flourish. This will depend on how well the
public is convinced to patronize them. Buyers will have to be persuaded to buy from the entrepreneur’s
firm rather than from competitors. The innovative entrepreneur will be able to handle this problem.
Innovation may be the only way the entrepreneur can achieve the following:
a) Penetrate the market
b) Improve employee turnover
c) Reduce manufacturing cost
d) Improve collection rate
What Motivates People to Become Entrepreneurs

Not everyone desires to be an entrepreneur. Those who do, however, are motivated by any or
all of the following:
a) Desire to be one’s own boss
b) Desire for financial rewards
c) Desire to create one’s own job security
d) Desire to improve one’s quality of life

ILOCOS SUR
POLYTECHNIC STATE
SantaCOLLEGE
Maria Campus
MODULE
The Entrepreneur and Manager Distinguished
The terms entrepreneur and manager are sometimes used interchangeably. Although both jobs
are useful to the economy, each performs distinct functions.
Activity Emphasis of New Ventures

Enterprise Stage Factor Emphasis
1. Prestart-up Business idea Full
Human resource None
Capital None
2. Start-up Business idea None
Human resource Limited
Capital Limited
3. Early growth Business idea None
Human resource Escalating
Capital Escalating
4. Later growth Business idea None
Human resource Full
Capital Full
5. Stable enterprise Business idea None
Human resource Full
Capital Full
The Entrepreneur’s Task vs. The Manager’s Task

Enterprise Stage Activity Entrepreneur’s Manager’s Involvement
Involvement
1. Prestart-up Feasibility of an idea, Full None
product or service,
among others, is
scrutinized.
2. Start-up Business is formed, Full None
necessary capital is
generated, facilities and
equipment are
purchased, prototype of
products are built,
market is tested.
3. Early growth With limited resources, Full None
selling is undertaken in
limited markets.
4. Later growth Structured Declining Partial
management, long-term
financing, and facilities
planning are
established.
5. Stable enterprise With bigger resources, None Full
recurring sales and
profits, selling is
undertaken in bigger
markets.

ILOCOS SUR
POLYTECHNIC STATE
SantaCOLLEGE
Maria Campus
MODULE
A major distinction between the entrepreneur and the manager is about orientation. The
entrepreneur (also called promoter) feels confident of his ability to seize a business opportunity
regardless of the resources under his current control. The manager (also called the trustee)
emphasizes the efficient utilization of resources.
Competition and the Complementary Functions of the Entrepreneur and the Manager
Business Activity Competitor’s Activity
Entrepreneur’s Turf Step 1- Identify and seize Competitor is unaware
opportunity
Step 2- Assemble resources Competitor slowly becomes

aware
Step 3- Start operation Competitor become fully aware

Manager’s Turf Step 4- Expand operation Competitor makes decision to
operate
Step 5- Maximize profits Competitor starts operation
Step 6- Meet competition Competitor shares in industry

profits
Entrepreneurs are different from managers because they perform functions that are distinct
from each other.

ILOCOS SUR
POLYTECHNIC STATE
SantaCOLLEGE
Maria Campus
MODULE
ASSESSMENT
Answer the following questions.
1. What makes an entrepreneur different from a manager?

2. What motivates you to become an entrepreneur. Discuss your answer.
3. Prepare a short report on an innovator who made good in entrepreneurship.
Note: Quiz will be administered using the TestMoz Application.
REFERENCE
Medina, R. G. Entrepreneurship and Small Business Management. Third edition. Rex Book Store,
Manila, Philippines

ILOCOS SUR
POLYTECHNIC STATE
SantaCOLLEGE
Maria Campus
MODULE


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ILOCOS SUR

Course Code: ELECTIVE 104

LISTS OF TOPICS TO BE INCLUDED IN THE MODULE

Factors that Determine Success or Failure in an Entrepreneurship

B. The Entrepreneur’s Personality

Personality Types Entrepreneur’s Job Teacher’s Job Engineer’s Job

Course Code: ELECTIVE 104

3. Human relations ability

Course Code: ELECTIVE 104

What Motivates People to Become Entrepreneurs

Course Code: ELECTIVE 104

Activity Emphasis of New Ventures

The Entrepreneur’s Task vs. The Manager’s Task

Course Code: ELECTIVE 104

Step 2- Assemble resources Competitor slowly becomes

Step 3- Start operation Competitor become fully aware

Step 5- Maximize profits Competitor starts operation

Step 6- Meet competition Competitor shares in industry

Course Code: ELECTIVE 104

1. What makes an entrepreneur different from a manager?

Note: Quiz will be administered using the TestMoz Application.

Course Code: ELECTIVE 104

Course Code: ELECTIVE 104

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