 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 (good/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 independently owned and operated by the owner.
Why is Entrepreneurship important?
 Live
 Asset
 Innovations
 Create Jobs
 Promote Social Change
 Work
ENTREPRENEURSHIP AND SOCIO – ECONOMIC DEVELOPMENT
 Transforming ideas into economic opportunities is the index of entrepreneurship.
 Entrepreneurship has the capacity for innovation, investment and creation and expansion in
new markets, products and techniques.
 Economically, entrepreneurship invigorates markets. The formation of new business leads to
job creations and has a multiplying effect on economy.
 Socially, entrepreneurship empowers citizen, generates innovation and changes mindsets.
These changes have the potential to integrate developing countries into the global economy.
Entrepreneurship is an important factor in economic development. This means that a country
or society with a lot of entrepreneurs would tend to be a productive community and thus
produce wealth and spur economic development.
benefits that results from entrepreneurship
 Entrepreneurship creates employment.
 Entrepreneurship improves the quality of life.
 Entrepreneurship contributes to a more equitable distribution of income and therefore eases
social unrest.
 Entrepreneurship utilizes resources for national productivity.
 Entrepreneurship brings social benefits through government.
 Integrity - uprightness of character, honesty
 Innovation – acts of introducING something new
 Obstacle – a hindrance of obstruction in either physical or moral sense.
 Opportunity - a favorable or advantageous circumstances
 Passion – a powerful emotion, such as love joy
 Persistence - act of persisting in any course or enterprise; perseverance
 Risk – the possibility of suffering harm or loss.
Characteristics and Qualities of a successful Entrepreneur
1. INTEGRITY - someone once said, “Right is right even no one is doing it, and wrong is wrong
even if everyone is doing it”. We all hear stories about corporate greed and corruption.
However, the truth is, successful entrepreneurs are rated “being honest is everyone” The
number one factor of success. Without integrity, an entrepreneur cannot build and sustain
trust and confidence. These traits can help build a loyal following and a robust relationship
among both suppliers and consumers.
2. SELF DISCIPLINE - to become a successful entrepreneur you have to be highly disciplined.
You have to develop the ability to get things done, even when you don’t like feel it.
3. PEOPLE SKILL - another critical factor among successful entrepreneurs is having good
people skills. you should make an effort to genuinely like, respect, and appreciate other.
4. STRONG WORK ETHICS - there`s no substitute for hard work when it comes to becoming a
successful entrepreneur. Most people want to do the fastest and easiest solution when it
comes to work. To be successful, dedicate yourself to persistent and productive and old
fashion hard work
5. PASSION - You need to be passionate in your business. This doesn`t necessarily mean you
have to build a business around something you love. You should identify profitable market and
then build your business. Loving your business will also make you easier to get through the
startup phase, and other future obstacles.
6. STRONG LEADERSHIP QUALITIES - Being able to communicate effectively, motivate
others, sell your ideas, and be decisive, are just a few qualities of a good leader .in order to
become a successful entrepreneur you must dedicate yourself of improving your leadership
and abilities.
7. COMPETITIVENESS - Competition is everywhere. In business, it is the survival of the fittest.
If you can out market and outperform your competitors, youR chance of being successful
entrepreneur will be much better. Play to win but never sacrifice your integrity for the sake of
few bucks.
8. WELL – ORGANIZED - One of the main reasons why small businesses fail is lack of
organization. Everyone can learn organization skills with enough hard work practice &
persistence.
9. SALES ABILITY - the ability to convince others to make a conscious decision is a key of
becoming a successful entrepreneur. “People don’t buy for logical reasons; they buy because
of emotional reasons”. Being able to appeal to other people’s emotions is the key to selling
your ideas, products or services.

Personal Entrepreneurial Characteristics (PECs) Clusters

1. Achievement Cluster
2. Planning Cluster
3. Power Cluster
PECs under Achievement Cluster:
1. Opportunity Seeker
2. Persistent
3. Committed to work contract
4. Risk Taker
5. Demand for quality and Efficiency
PECs under Planning Cluster:
1. Goal Setter
2. Information seeker
3. Systematic Planning and Monitoring
PECs under Power Cluster:
1. Persuasion and Networking (always persuasive)
2. Self Confidence (always confident)
COMPONENT - is a constituent part of the business plan
FEASIBILITY STUDY - an analysis and evaluation of a proposed project to determine its profitability
MARKETING – deals with the selling and buying activities of the business
PROJECT SUMMARY – deals with the introduction statement of the problem
TYPES OF BUSINESS PLAN
1. Feasibility Study
2. Concept Paper
3. Business Plan
4. Project Proposal
1. Feasibility Study
 It is created in order to minimize risk and to ascertain the viability of the project
 It is not merely an investigation but a framework on how the operation of a business project
shall be accomplished
 It is used to determine the potential success of a proposed business venture
2. Concept paper
 It is a written plan for a business on how it will be managed. It is a tool to represent a
certain venture anticipating its future.
3. Business Plan
 A business plan describes the nature of the business, the sales and marketing strategy, the
financial background containing a projected profit and loss statement.
4. Project Proposal
 This is the initial document that converts an idea or policy into the details of a potential
project.
FIVE MAJOR COMPONENTS OF FEASIBILITY STUDY
 MARKETING STUDY - the sufficient demands for the product as well as the competitive
position of the firm in the industry must be determined.
 TECHNICAL STUDY - in this study, you must consider the manufacturing process, plant
size, production schedule, machinery, plant location and layout structure, raw materials,
utilities and waste disposal.
 MANAGEMENT STUDY - this involves on how the project shall be managed such as the
business organization including the organization chart and function of each unit
management personnel, skills and numbers of labor required.
 FINANCIAL STUDY - you should include the assessment of total capital requirements,
break-even outputs, sales and prices, amount of sales required to earn a certain amount of
profit and the cash payback period.
 SOCIAL DESIRABILITY - this is measured by economic benefits to the people living in the
community and its vicinities.

PARTS OF CONCEPT PAPER

INTRODUCTION - this is the part that discusses the significant details of the product or service and

why the product/service is needed in by the community

OBJECTIVES - this part gives the details of the business both specific and general
RATIONALE - this part focuses on the advantages of putting a certain business
TERMS & CONDITIONS - in this part, specific agreement from particular to general things are

clarified
RECOMMENDATIONS - this part is very important because it helps to improve the project in the

future
COMPONENTS OF BUSINESS PLAN
THE ENVIRONMENT - the needs of the people in the community should be identified
BEHAVIOR OF THE PRODUCT - you should know the market trends, product demand in the

community, the resources, quantity and quality goods in buying

LOCATION OF THE BUSINESS - you should consider the place where customers prefer to buy
ORGANIZATIONAL PLAN - the needed workers in the business must be listed in the organizational

chart
PRODUCTION PLAN - it involves manpower, money, machinery, materials and methods to be able to

produce the desired output based on anticipated profit.

FINANCIAL PLAN - you as an entrepreneur need to determine the fiscal needs of the business and

the sources of needed funds

ESSENTIAL PARTS OF A PROJECT PROPOSAL
EXECUTIVE SUMMARY - the overview of the proposal from beginning to end should be stated in the

project proposal
JUSTIFICATION - this emphasizes the need of the proposal
PROCEDURE - the steps are being explained where to start and to end
OBJECTIVES - the goals or targets of the business are defined
PROJECT ORGANIZATION AND MANAGEMENT - the manpower and function of each are clearly

stated
BUDGET - you should determine the source for the input and output, the profits and the loss of the

business

7 Steps in Preparing Business Plan

1. Make an evaluation of your personal resources

2. Conduct an analysis or survey of your market

3.Select a proper location

4.Make a financial plan

5.Make a production plan

6.Make an organizational plan

7.Make a management plan

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