What Is Entrepreneurship

ENTREPRENEURSHIP
PREPARED BY:
ERICA B. EVANGELISTA
Entrepreneurship?
Refers to the ability of an individual to determine
an come up with the proper combination of the
resources available in his environment and
transform this into an output of either goods or
services, and obtain profit from this activity.
IDEA
There are different activities involves
in entrepreneurship this includes:
• spotting opportunities
• conceptualizing this opportunities to business
ideas
• identifying and using resources in the
environment
• gain profit out of the activity
In entrepreneurship the first investment of the
entrepreneur is his/her IDEAS. The ideas is
the blueprint of the entrepreneur on how he is
going to make goods/services, how to run and
manage his business and how to make profit
out of it.
Definition of Terms:
 Raw materials- basic inputs that the

entrepreneur uses to come up with his products
 Capital- refers to the buildings, machinery,
equipments and tools used in the course of
production
 Laborers- people directly responsible in the
production process
 Plant- place where all of these physical factors
are found
 Finished Products- inputs are

transformed into outputs
 Market- is simply the buyers and users of
the entrepreneur’s product
 Customers- people who buy the product
 Consumers/End-users- people who use
the product
 Invisible Hand Theory – according to

this theory, business ventures and nations
will develop to a particular direction without
necessitating the effort nor the desire of the
capitalists, thereby espousing the thought
that economic development is but a natural
thing that comes about. This master plan of
economic development was otherwise
known as the Law of Nature.
 Creative imitation – takes place when the

imitators better understand how an
innovation can be applied, used, or sold in
their particular market niche (namely, their
own countries) than do the people who
actually created or discovered the original
innovation.
Origins of the Entrepreneurship
 Marco Polo – made the practice of selling his

goods to a moneyed person with both of them
signing a contract.
 Richard Cantillon – introduced the term
“entrepreneur”. This explains why some
consider him as the father of the theory of
entrepreneurship.
 Jean Baptiste Say – claimed that the
entrepreneur is one who brings other people
together in order to build a single productive
organism
 Adam Smith, David Ricardo and John

Stuart Mill- briefly touched on the concept of
entrepreneurship, broadly referring to the
English term as the “business management”
 J.B. Say – in the 18th century, he
distinguished between profits of entrepreneurs
and profits of capital
 Alfred Marshall – first formally recognized
the necessity of the entrepreneurship for the
production in 1890.
 Joseph Schumpeter – espoused the idea

that the entrepreneurs are innovators and
developers of untried technology
 David McClelland – maintained that the
productivity is dependent upon the energy
levels of people and that entrepreneurs are
energetic and, therefore, productive.
 Peter Drucker – emphasized the idea that

entrepreneurs are people who look for and
maximized opportunities
 Albert Shapiro – argued that
entrepreneurs take initiatives, organize
some social and economic mechanisms and
accept risks of failure
Socio Economic Benefits from
entrepreneurship
Promotes Self
Mobilize
help and
Capital
Employment
Provides taxes
Empowers
to the
Individual
economy
Distribute Improves
Income quality of life
Categories of Small and
Medium Entrepreneurships
(SMEs)
IN TERMS OF
CAPITALIZATION
SMALL AND MEDIUM AMOUNT OF
ENTERPRISE CAPITILIZATION
CATEGORY
Micro Enterprise Less than Php 3 million
Small Enterprise From Php 3million to Php 15

million
Medium Enterprise From Php 15 million to 100
million
Large Enterprise Php 100 million and above
IN TERMS OF
EMPLOYMENT SIZE
ENTERPRISE CATEGORY CAPITALIZATION
Micro Enterprise Less than 10 employees

ENTERPRISE CAPITALIZATION
Small Enterprise From 10 to 100 employees
Medium Enterprise From 100 to 500

employees
Large Enterprise 500 employees and above
QUIZ #1
¼ SHEET OF PAPER
Multiple Choice:
Choose the best possible answer

for each of the following items.Write
your answer before the number and
CAPITAL LETTERS ONLY.
________1) This refers to the ability of an
individual to utilize available resources in his
environment to come up with either goods or
services to be sold at a profit.
A. human resource
B. entrepreneurship
C. labor
D. investment
________2) These terms refer to the buyers
and users of the products of an
entrepreneur, except…
A. customers
B. consumers
C. suppliers
D. end-users
________3) This factor of production,
usually its unprocessed or natural state, is a
basic input to the entrepreneur’s products.
A.raw materials
B.capital
C.plant and equipment
D.labor
________4) These people are those that are
directly responsible in the production
process.
A.Laborers
B.Managers
C.Employees
D.Entrepreneurs
__________ 5) A French economist who
claimed that the entrepreneur is one who
brings other people together in order to build
a single productive organism.
A.Jean Baptiste Say
B.John Stuart Mill
C.David Ricardo
D.Adam Smith
__________6) He espoused the idea that
entrepreneurs are innovators and developers
of untried technology.
A.David MacClelland
B.Peter Drucker
C.Albert Shapiro
D.Joseph Schumpeter
___________7) Barriers to growth of
Philippine SMEs includes the following
except:
A. Poor Market Access.
B. Lack of Information.
C. Low Productivity..
D. Globalization.
___________ 8.The word “entrepreneur”
originally meant, “to imitate”
A. True
B. False
___________ 9. Capital refers to the basic
inputs, mostly in their natural states, used in
the production process.
A. True
B. False
___________ 10. The first investment in
entrepreneurship is capital.
A. True
B. False
Checking of Papers
Key Answers:
1. B 6. D
2. C 7. D
3. A 8. B
4. A 9. B
5. A 10. B

What Is Entrepreneurship

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What are the different activities involved in entrepreneurship?

What is the first investment of an entrepreneur?

ENTREPRENEURSHIP

 Raw materials- basic inputs that the

 Finished Products- inputs are

 Invisible Hand Theory – according to

 Creative imitation – takes place when the

 Marco Polo – made the practice of selling his

 Adam Smith, David Ricardo and John

 Joseph Schumpeter – espoused the idea

 Peter Drucker – emphasized the idea that

Small Enterprise From Php 3million to Php 15

SMALL AND MEDIUM AMOUNT OF

Small Enterprise From 10 to 100 employees

Medium Enterprise From 100 to 500

Choose the best possible answer

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