Module 1. HOSPITALITY AND TOURISM AS A CONSUMER-DRIVEN BUSINESS

PART I
HOSPITALITY AND TOURISM AS A CONSUMER-DRIVEN BUSINESS

CHAPTER 1 - Hospitality Entrepreneur and Entrepreneurship Define
Learning Outcome:
After studying this chapter, you should be able to:
1. present the importance of tourism and hospitality in the global economy/level;
2. provide a definition of entrepreneurship;
3. discuss the role of entrepreneurs;
4. describe the main features of entrepreneurs;
5. briefly present the role and contribution of entrepreneurs in tourism activities and
their contribution for the development of a tourism destination.
Preliminary Activity:
Watch: https://www.youtube.com/watch?v=RT-eOK0Fjtw - Successful people and
their stories of inspiration | Powerhouse
Lesson:
INTRODUCTION
1The
tourism industry is often cited as the largest industry in the world,
contributing 10% of the world’s GDP. (https://psa.gov.ph/tourism/satellite-accounts -
updated Philippine Tourism contribution in GDP)
Looking at tourism, it is important to consider the term HOSPITALITY. Some

define hospitality as “the business of helping people to feel welcome and relaxed and
to enjoy themselves.” Simply put, the hospitality industry is the combination of the
accommodation and food and beverage groupings, collectively making up the largest
segment of the industry.
The tourism and hospitality industry are guest-driven businesses that put
together create a huge economic impact that continues to expand to new markets and
destinations.
1. ENTREPRENEURSHIP DEFINE
Many definitions of entrepreneurship are offered by scholars. Some of these are

cited below in chronological order. Entrepreneurship is:
✓ the creation of an innovative economic organization (or network of organizations) for
the purpose of gain under conditions of risk and uncertainty’ (Dollinger, 1995, p. 7);
✓ the process of creating something new with value by devoting the necessary time and
effort, assuming the accompanying financial, psychic and social risks, and receiving
the resulting rewards of monetary and personal satisfaction and independence’
(Hisrich & Peters, 1998, p. 9);
✓ an activity that involves the discovery, evaluation and exploitation of opportunities to
introduce new goods and services, ways of organising, markets, processes and raw
materials through organising efforts that previously had not existed’ (Shane, 2003, p.
4; Shane & Venkataraman, 2000, p. 218);
✓ a way of thinking, reasoning, and acting that is opportunity obsessed, holis- tic in
approach, and leadership balanced’ (Timmons & Spinelli, 2007, p. 79);
✓ the result of a systematic and disciplined process of applying innovation and creativity
to opportunities and needs in the market’ (Zimmerer & Scarborough with Wilson, 2008,
p. 5).
Two ideas/principles central to the entrepreneurship concept: (1) the creation and
recognition of opportunities, inclusive of the will and initiative to seize those opportunities
and (2) the creation of new businesses in conditions of risk and uncertainty in order to
make a profit (Timmons & Spinelli, 2007; Zimmerer & Scarborough with Wilson, 2008).
1
(n.d.). Chapter 16 Hospitality & Tourism – Fundamentals of Business. Retrieved June 11, 2020, from
https://viva.pressbooks.pub/fundamentalsofbusiness/chapter/chapter-16-hospitality-tourism/
2. What is an ENTREPRENEUR?
There are a plethora of definitions of the term ‘entrepreneur’; some of these are
cited below in chronological order. An entrepreneur is:
✓ An entrepreneur can be defined as a person who sees an opportunity in the

marketplace and establishes a business with the aim of meeting the market’s
needs.
✓ a person who carries out commercial innovation: modification of existing knowledge
and/or practices. Innovation could occur in five forms: offering of new
goods/services; new production methods, new sources of supplies; new
markets/distribution systems; and/or new management techniques’ (Schumpeter
(1949), cited in Koh and Hatten (2002, p. 27));
✓ a person who sees an opportunity and assumes the risk (financial, material, and
psychological) of starting a business to take advantage of the opportunity or idea’
(Hatten, 1997, p. 31).
✓ an individual who is alert to opportunities for trade ... is capable of identifying
suppliers and customers and acting as an intermediary where profit arises out of
the intermediary function’ (Deakins & Freel, 2009, p. 7);
✓ a person who creates a new business in the face of risk and uncertainty for the
purpose of achieving growth and profit by identifying significant opportunities and
assembling the necessary resources to capitalise on them’ (Zimmerer &
Scarborough with Wilson, 2008, p. 5).
✓ The one who creates a new business in the face of risk and uncertainty for the
purpose of achieving profit and growth by identifying opportunities and assembling
the necessary resources to capitalize on them.
✓ An individual who, rather than working as an employee, runs a small business and
assumes all the risks and rewards of a given business venture, idea, or good or
service offered for sale.
✓ The entrepreneur is commonly seen as business leaders and innovators of new
ideas and business processes.
✓ It is a French word means “between taker” or “go-between”
Literature suggests that entrepreneurs also possess specific characteristics, namely:
creativity and innovation, determination and persistence, need for independence, need for
achievement and risk-taking, commitment and determination, leadership, opportunity
obsession, tolerance of risk, creativity, self-reliance and adaptability and motivation to
excel (Longenecker, Moore, Petty, & Palich, 2006, p. 16). These characteristics and
capabilities are much needed in tourism-related industries.
Based on the above, where the focus is on what an entrepreneur does, rather than
what he or she is, it should be stressed that, an entrepreneur (1) identifies new business
opportunities, (2) is creative and innovative, (3) is willing to take calculated risks, (4)
obtains financial resources, (5) starts and manages own enterprise(s), (6) is able to
market a concept, product or service and (7) organises and controls resources and
monitors performance to ensure a sustainable and profitable operation. These ideas and
principles are equally valid in the service industries, including tourism.
3. ENTREPRENEURSHIP IN HOSPITALITY INDUSTRY an OVERVIEW
DEVELOPING-FILIPINO-ENTREPRENEURS-January-3-2017.pdf (umich.edu)
SUMMARY
The role played by entrepreneurship and entrepreneurs in the field of tourism is
undeniable and generally recognized. It, firstly, presented and highlighted the
importance and the contribution of tourism to the global economy. Then, the two
concepts of entrepreneurship and entrepreneurs were clearly defined. The main
features and characteristics of individuals involved in business ventures were also
outlined. This was followed by an outline of the contribution of entrepreneurship and
SMEs in tourism- related industries. The chapter was completed by presenting and
clarifying the main elements of the book, specifically, the aim, objectives, approach and
perspective/focus. The following chapters will provide detailed presentations and
analytic discussions on key issues and aspects of entrepreneurship in tourism-related
industries.
PRACTICE ACTIVITIES:
A. TOUNGE TWISTER FOR THE DAY – “SHE SEES CHEESE” (instead of saying “yes
mam or no mam” whenever the teacher ask the class if they are listening or
understand the lesson)
B. BP PLAN BASED PAPER PRESENTATION
1. Discuss the innovated products.

2. Outline the business plan product description.
3. What are the main features or innovations of the business?
4. Present the main ideas and message based from the bp model or template
ASSESSMENT:
Complete TESDA Online Program for Entrepreneurship. Complete the
quiz on competency framework for entrepreneurship course.
● Log in to https://www.e-tesda.gov.ph/course/
● Choose entrepreneurship
● Take Star Online Training Program and finish lesson 1 Quiz
● Submit print screen on finish activity.
ADDITIONAL RESOURCES:
Videos to watch
● https://www.youtube.com/watch?v=70b_0XKMRME - An inspiring story of
Filipino entrepreneurs
● https://www.youtube.com/watch?v=sr55995iYFs&pbjreload=101 - Leading
Women Abby Watabe
REFERENCES AND FURTHER READING
1. Sotiriadis, M. (Ed.). (2018). The Emerald Handbook of Entrepreneurship in Tourism, Travel and
Hospitality. doi:10.1108/9781787435292

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PART I

HOSPITALITY AND TOURISM AS A CONSUMER-DRIVEN BUSINESS

Looking at tourism, it is important to consider the term HOSPITALITY. Some

Many definitions of entrepreneurship are offered by scholars. Some of these are

✓ An entrepreneur can be defined as a person who sees an opportunity in the

1. Discuss the innovated products.

REFERENCES AND FURTHER READING

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