75

MODULE III
APPRAISING AND DEVELOPING YOURSELF
FOR AN ENTREPRENEURIAL CAREER
;

Lesson 1 Appraising Yourself for an

Entrepreneurial Career

Lesson 2 Developing Yourself for

Entrepreneurship

Lesson 3 Group Entrepreneurship

 76
MODULE III
APPNAISI]'G & DEVELOP}IG YOUR'ELF FOR A}I ENTREPRENEURIAL
CAREER

I-fiFI
C'J lNTRODUCTION

Module II described to you how a successful entrepreneur behaves. you

must be asking yourself whether you have these characteristics and, if no, to what
extent. These are good questions to answer before you actually go into business.

ln this module, you will be given tools for examining yourselves in terrns of
a possible entrepreneurial career. You will be given a good idea regarding the
personal characteristics you need to develop in order to be a successful
entrepreneur.

oBJeCTlV€5

After reading the module, you are expected to:

l. Enumerate the tools that should help them identi! their strengths and
weaknesses for an entrepreneurial career.

2. Explain the guidelines to help them acquire the orientation, habits and attitudes
which are important in entrepreneurship.

3. Realize the importance for a group of individuals tied together by a common

bond, to go into eftrepreneurship.

DIRECTONS/MOOULC ORGANIZ€R

Module IIIcontains three lessons. Work on the pECS Self-Rating

questionnaire given in Lesson 1, honestly to enable you to find out how you rati
for entrepreneurial career.
 77
Read thoroughly the guidelines given in Lesson 2 that will help you
develop entrepreneurial qualities. Try to put to good use what you have read and
you should be on yow way to an exciting entrepreneurial cmeer.

Work also on the other leaming activities given after the lessons to assess
how much you have leamed.

You are required to submit your output to your tutor at the DOUS office.

Hope that you will enjoy working on the activities that will reveal your
strengths and weaknesses.

/--.--
t-\-..-?

1---=S
-:
 18

LESSON 1

APPRAI'ING YOUR'ELF FOR AN ENTREPREXEURIAL CAREER

Not everyone goes through the same set of life experiences, and, any person
will always differ fiom another in his abilities and potential to succeed in any
vocation or career.

In the following lessorl we will help you examine yourself in tenns of a

possible entrepreneurial career. We hope that in the process, you may be able to
identi$ your strengths and weaknesses.

ASSESSING YOUR PERSONAL ENTREPRENEURIAL

COMPETENC!ES

The questionnaire below measures an individual's weak and strong

personal entrepreneurial attributes. Would you like to find out how you rate?

PEC SELF-RATING QUESTIONNAIRE

lnstructions:

I This questionnaire consists of 55 brief statements. Read each statement and

decide how well it describes you. Be honest about yourself. Remember, no
one does everything very well.

2. Select one of the numbers to indicate how well the statement describes you

5= Always
4=
a-
Usually
Sometimes
.., _ Rarely
1= Never

3. Write the number you selected on the line to the right of each statement. Here
is an example:
I remain calm in stressful situations 2

4. Some statements may be similar, but no two statements are exactly alike.

5. Please answer all questions.

tf you're ready you may begin

1 . I look for things that need to be done.

 79
2 When faced with a difficult problem, I spend a lot of time trying to
find a solution.

I complete my work on time.

4 It bothers me when things are not done well.

q
I prefer situations in which I cannot control the outcomes as much
as possible.

6. I like to think about the future.

7. When starting a new task or project, I gather a great deal of

information before going ahead.

8. I plan a large project by breaking it down into smaller

tasks.

9. I get others to support my recommendations.

10. I feel confident that lwill succeed at whatever ldo

11. No matter whom I am talking to, l,m a gooA fistener/

12. I do things that need to be done before being
asked to by others.
13. r try severar times to get peopre to do what r wourd
ilke them to do.
'14. I keep promises I make.

15. My own work is better than of other people

I work with.

16. I don't try something new without making

sure I will succeed.
'17 . lt's a waste of time to worry about what
to do with your life.
18 I
s€g.k the advice of people who know
a lot about the tasks I am
working on.

19. Ithink about the advantages and disadvantages

or different ways
of accomplishing things.

20. I do not spend much time thinking

how to influence others.
21 . I change my mind if others disagree
strongly with me.
22. I leel resentful when I don,t get
my way.

23. I like challenges and new opportunities.

 8l)

24. When something gets in the way of what l'm trying to do, I keep on
trying to accomplish what I want.

25. I am happy to do someone else's work, if necessary, to get the job

on time.

26 It bothers me when time is wasted.

27 I weigh my chances of succeeding or failing before I decide to do

something.

28 The more specific I can be about what I want out of life, the more
chance I want to succeed.

29 I take action without wasting flme gathering information.

JU a[ the probtems I may encounter and ptan what to

lg
oon L"-t!,S "f
tI each problem occurs.

31 I get important people to help me.

when trying somethrng difficurt or chailenging,

r feer confident that
I will succeed.

33. ln the past, I had failures

34. I prefer activities that I know

well and with which I am comfortable.
35. Vvhen faced with a major
difficutty, I quickly go on to other
things.
36. Mr_en I am doing a job for someone,
l.make special effort to make
sure that person is happy with
my work.
2.7

:ill;'ffi['fi:'l#ig#1 *n"h thinss are done, ,

[?y,."Jj?
38 I do things that are risky.

39 I have a very clear plan

for my life.
40 When working on a oroiect
for someone, I ask questions
sure I understand what ihat person to be
wants.
41 I deal wjth problems as
anticipate tirem.
-'
-'"- thev
" 'wv aIIS€' rather than spend time trying to

42 r..:h
L::9^"Ilq involvedmy goals, I think of solutions that benefit
everyone in a problem.

43 I do very good work.

 l
43. I do very good work.

44. There have been occasions when I took advantage of someone

45. I try things that are very new and different from what I have done
before

46. Itry several ways to overcome things that get In the way of
reaching my goals.

47 . My tamily and personal life are more important to me than work

deadlines I set for myself.

48. I find ways to complete tasks faster at work and at home

49, I do things that others consider risky.

50. I an as concemed about meeting my weekly goals as I am for my

yearly goals.

51 . I go to several sources to get information to get help with tasks or

proiects.

52. lf one approach to a problem does not work, I think of another

approach.

53. I am able to get people who have strong opinions or ideas to

change their minds.

54. I stick with my decisions even if others disagree strongly with me.

55. When I don't know something, I don't mind admitting it.

How to Score

Now,let us see how well you performed in the PECS Self-Rating

Questionnaire.

1. Using the table in the next page, do the following.

a Enter the ratings from the completed questionnaire on the lines above the
item numbers in parenthesis.

b Do the addition and subtraction indicated in each row to complete each

PEC score. Note that the item numbers in the columns are consecutive.
Item No. 2 is below No. 1, and so on.

c Add all the PEC scores to get your total raw score. (For now, disregard the
last column on "conection factor. " You'll have a chance to work on it later.)
 112

SELF-RATING QUESTIONNAIRE SCORING SHEET

Rating of Statements Score PEC

+ + + +6 Opportunity
(1) (12) (23) (34) (45) Seeking

+ + + +6 Persistence
(2) (13) (24) (35) (46)

+ + + +6 Commitment to the
(3) (14) (25) (36) (47) Work Contract

+ + + +6 Demand for
(4) (15) (26) (37) (48) Quality and
Efficiency

+ + + +6 Risk Taking
(5) (16) (27) (38) (4e)

+ + + +6 Goal Setting
(6) (17) (28) (3e) (50)

+ + +6 lnformation
(7) (18) (2s) (40) (51) Seeking

+ + + +6 Systematic planning
(8) (1e) (30) (41) (52) and Monitoring

+ + + +6 Persuasion and
(e) (2o) (31) (42) (53) networking

+ + + +6 Self-confidence
(10) (21) (32) (43) (54)

Total PEC Score

+ + 18 Correction Factor
(11) (22) (33) (44) (55)

Now that you've completed your rating table, you may now go to the next
step

'1. Get your net score by subtracting the conection factor from your total raw score.
The corection factor is used to determine whether or not a person tries a very
favorable image of himself/herself . lf the total score on this factor is 20 or
gneater, then the total scores on the PECS must be corrected to provide a more
accurate assessment of the strength of the PEC scores for that individual.
 8l
Follow the steps belowl

a. Go to the last column of the ratings table on page 82. Total your scores in
items '1 1, 22,33, 44, and 55. The sum you will get is the conection score

b. Now that you have the colTection factor score, use the following guide in
figuring how much to subtract from your raw score. Encircle or highlight the
numbers that conespond to your score.

lf the conection Subtract the following number

factor score is. from each PEC score:

24 or 25 7
22 ot 23 5
20 or21 J
19 or less 0

2. Now, you can conect your raw scores in each PEC. Use the following table
below while referring to the original ratings in page 82.

PEC CORRECTED SCORE SHEET

Original Conection Conected

PEC Number Total
Scor€

Opportunity Seeking

Persistence

Commitment to the
Work Contract

Demand for Quality and

Efficiency

Risk Taking

Goal Sefting

lnformation Seeking

Systematic Planning
And Monitoring

Persuasion and
Networking

Self-confidence
 lt-l
3 Get your PEC profile by transfening the conected PEC score to the profile
sheet below Using the profile sheet follow the steps below:

a Mark an "X" at the appropriate point on the horizontal line for each PEC. lf
the score for Opportunity Seeking is 17. it will appear as follows:

Opportunity Seeking: x
5 10 tc 2U 25

b Draw a heavy vertical line connecting the "Xs" for each pEC and you have
constructed your PEC profile.

PEC PROFILE

0 5 10 15 20 25

Opportunity Seeking

Persistence

Commitment to the
Work Contract

Demand for Quality and

Efficiency

Risk Taking

Goal Setting

lnformation Seeking

Systematic Planning
And Monitoring

Persuasion and
Networking

Self+onfidence

0 5 10 15 25
 lt-i
q

rE w FURTH€R R€ADING5/ R€F€RCNC€s

Fajardo, Feliciano R. Entrepreneurship, 1994

SERDEF and UPISSI Introduction to Entrepreneurship, 1993.

SERDEF and UPISSI You, Too, Can Start Your Own Business, 1990

(D
END
 86
LESSON 2

DEVELOPING YOUR'ELF FOR EXTREPREXEUR'IIIP

This lesson will provide you with useful tips to help you acquire the
orientationq habits and attitudes which are important in entrepreneurship.

IMPORTANT ATTITUDES IN ENTREPRENEURSHIP

*
The previous lesson gave you a good idea regarding the personal
characteristics you need to develop in order to be a successful enhepreneur. Now,
you would like to start working on them wouldn't you.

Be creative.

To be creative is to generate ideas and images in your head in order to come

up with solutions or altemative solutions to problems. Creativity involves movhg
around ideas, splitting thenl combining them from other ideas, and thus, urri"ing
at new ways ofdoing things.

Actively seek opportunities.

An entrepreneur looks at a situation and thhks "What's in here that can be

hrned into a business?" Or, if she is already in business, she asks herself "What's
in here that will be good for my business or will improve it? Here are examples:

l. If you actively seek opportunities, you will frnd customers or markets where
other people find none.

2. If you actively seek oppornrnities, you will frnd new uses for old products,
including waste products.

3. If you actively seek oppornLrnities, you will find new ways of doing things.
4. If you actively seek opportunities, you willTfind new products for old markets
or customers.

Take moderate risks.

In many life situations, including business situations, risks are involved.

The successful entrepreneur takes risks, trut before doing so he is able to
recogruze, assess and minimize these risks. ffis is known as calculating
 tt7

moderating or controlling the risks. ln business, calculating the risks is checking

if you will make or lose money in the process of doing business.

Achievers are moderate risk takers. High risks are not preferred because
the chances of faiture are great. (An example of high-risk activity is gambling.).
On the other hand low risk situations are also shunned because they are not
challenging enough. (An example of low-risk activity is putting money in time
deposits.)

What must you do to be a moderate risk taker? Here are some suggestions:

l. ,4ssess the situation carefully. Before investing your money in the poultry
business, for example, make sure that you're not finishing up your savings, that
there is enough space in your backyard for building cages, that there is reliable
supplier of feeds near you, that you have time to feed, water and clean the
stock, that you have the market to sell to, and so forth and so on.

2. Find out if your actions will huve negative side effects A poultry farm right
in your backyard can bring in lots of flies and other pests. Neighbors may
complain of the smell coming out of it, especially if you don't clean it often. A
moderate risk taker must be prepared to cope up with these possibilities.

3. Ask for from knowledgeable people. Don't be shy or too proud to ask
advice
for information and advice from experienced poultry raisers, form
veterinarians, from extension workers of the Bureau of Animal Industry, from
bank officers and others. A high risk taker may think that she can do business
without anyone's help. A moderate risk taker will get all the advice and
information she can get to ensure that she succeeds.

4. Plan for emergencies. Be ready for unforeseen events, like prolonged bad
weather, disease and epidemic which might endanger your stock. Success in
risk taking is to be well-prepared for all eventualities.

Practice persistence.

"lf
at fust you don't succeed, try and try again." Surely you've heard of
this saying. And surely, you know that a wise saying it is. Trying and trying
again until you succeed is what persistence is all about. Persistence is also trying
to do something even if people say that you are likely to fail. It means not being
afraid of hard work. It also means not being afraid to fail because-you can try
agatn.

Ask any successful entrepreneur whether she succeeded right off the first
time she tried to start a business. Chances are, she will say that her few attempts
failed but she refused to be discouraged. You might also experience initial failure
 ttlt
if when you decide to be an entrepreneur. If you do, please remember that
persistence breeds success.

If you feel that being persistent is difficult, you must realize three things:

l. Don't give in quickly when someone with you. If you are sure of
your stand, don't give in to what the other person says without thinking about
il.

2. Don't get angr! at someane who stubbornly with you. If you do

this, your persistence will wear off quickly because you will be concentrating
on your anger. On the other han( if you stay cool and composed, you will be
more persuasive, convincing and credible.

3. Face the opposition squarely and openly. Avoid "behind the back" tactics.

Be committed to what you set up to do.

You cannot be a committed person ovemight. You must deliberately work

at it and practice it with persistence. Here are some guidelines that may help in
building up your commiftnent to work contact.

l. Huve stength of character. Entrepreneurs have palabra de honor. Their

word is their honor. People with strong character will honor what they say-
come what may. Neither stonn or fire or sickness will keep them from
honoring their word. These strong people will not make lusot or alibi. If they
fail to keep their word, they will admit it as their mistake or shortcoming.

2. Make only promises you can keep. Think carefully before saying ..yes, I will
deliver the goods at the end of the month." If you think something will prevent
you from keeping this deadline, say so immediately. Entrepreneurs who don,t
deliver orders on time find to regret that there is no more next time. Customers
can always take their business elsewhere.

J Know what to do when you cannot keep a promise. It may happen that
something unexpected comes up and that makes it impossible for you to keep
your commitment. Or possibly, it turns out to be unwise to keep your promise.
In either case, you must be able to explain the situation thoroughly to the other
person. Be honest and tactful.

l Cuhivate trust of others. Keeping promises, giving honest explanations for

broken promises, dealing with peopte fairly and justly-these ari ways to win
people's trust. Once trust is broken, it is very hard to repat it. Trust ii the root
of good entrepreneur-customer and entrepreneur-supplier relationships.
 89

5. Clarify eapectations. Keeping people's trust includes talking about what ca

and Can,t be done so that expectations are laid on the table before any promises
are made. The promise you made must be based on what is reasonable for all
people concemed. These should be clarified before decisions are made about
quantities to be delivered, quality of products and delivery dates.

6. Apologize sincerely-when you are unable to keep your promise, apologize

sincerely to customers. Be sure that you have made your side understood
completely so that no doubts remain. And remembet don't try to make alibis
or false excuses. Your customer will appreciate your honesty in the long run'

Set high standards of quality and efficiency.

The good entrepreneur demands quality and efficiency not only from her
workers and suppliers but also for herself. She sets aa example of excellence that
expects the people who work with to follow. In '.b,is way, she makes siire that the
products and services she sells are of good quality. This means good business.

Here are behaviors that can help you achieve quality and efliciency in
business and other aspects of your life.

l. Consdency is importafi. Don't turn out superior output today and wishy-
washy products tomorrow. Your quality must be steady and reliable.
Consistency will you the competitive edge.

2. A neglected and dissatisfied customet might nevet retutn. Worse' he might

spread the word around your lousy product or service. Be caref,rl even if
you're dealing only with one customer.

3. Devotion to quality and efficienq: must become a way of ltfe for you and
your workers. Commit yourself to quality not only when doing business but
also in everyday things including your personal life. This way, being efiicient
and qualiry-conscious becomes "second nature" to you.

4. Use appropriate technologt to help you. This includes new machines, new
processes, new skills. Don't persist on doing things the old way if this no
longer efficient. New technology may initially cost money but may be
economical for your business in the long run.

Seek information.

Knowledge or information is power. You need information to get wind of

business ideas and opporhrnities. You need information to determine whether
your business idea will be profitable or not, to find out whether there are people
who will buy your products and at what price. You need information in order to
find out your competitors and how can you compete with them in the marketplace.
 90

You need information about sources of assistance for your business. You need
information about sources ofbusiness loans.

Where do you get information? A important source of information is your

own experiences and observations. However, oftentimes, these are not enough-
We havi to actively seek information from outside sources. These sources may be
formal (newspapers, radio and TV broadcasts, information desks of institutions,
surveys, conferences, researches, etc.) or informal (grapevine, conversations with
other entrepreneurs, inquiries with suppliers, telephone calls, etc')
many
entrepreneurs get information by joining industry chambers where they can get to
exchange experiences and know-how with other entrepreneurs in the same or
similar business.

If you are a student, join business-oriented groups like the Junior Achievers
Society and Young EnEepreneurs Clubs. Tune in to business-oriented progfams
on telivision and radio. Sign up for entrepreneurship seminars and courses. Talk
with relatives and Iiiends who are already in business. Ask questions. Develop
curiosity to know more about business. Take on entrepleneuship work, even if
unpaid. This is the best way to gather information about business.

Set clear and realistic goals

In sefting your goals, remember the following:

l. Be realistic. Know your strengths and wealsresses as well as the support and
obstacles present in your environment.

2. rl
Be self relit Do not aim for something which depend on many other people
and circumstances for its attainment.

3 . Select those goals which are important to you and which allows you to
perform your best

4. Focus on positive objectives. In other w.ords, try to think of goals which will
make you become, do or attain something rather than those which call for you
to stop or avoid doing things. Gather as much information as you can on the
goals which you set. Try to set both long and short-term goals for yourself.
These goals, however have to be regularly reviewed and modified.

Believe in yourself.

Entrepreneurs are rather self-confident people. They believe that they can
achieve their goals. So must you. tf you do not have faith in yoursetf, no one else
will. For you to be able to make things happen, you must first recognize what you
can do so, and nobody else. Here are ways to develop your self-confidence:
 9l
l. Know as much of yourself as you can. What are your strengths? What are
your weaknesses?

2. Look at yow qualities in a realistic mannet. Neither underestimate nor

exaggerate your own abilities and talents.

3. Emphasizc lout sttengths and play down your weaknesses by choosing

activities and gools where you do besl You can select projects which allow
you the freedom to express yourself most creatively. Harness your capacities
as much as you can.

4. Take care o;fyourself physically so that you that you look to yourself and to
others. [f you look good, you will feel good about yourself. This wilt be
translated as confidence as you move around and pursue your goals.

Plan systematically.

lt is not enough to set your goals. You have to plan activities leading to
these goals. With planning comes monitoring which is necessary to check how
far and how well you have done.

In planning, you think of the many small activities you will have to carry
out to accomplish bigger or more complicated ones. You put these individual
activities in proper or logical order so that in the end you can say that you have
accomplished what you planned for.

Scheduling is an important part of planning. You must leam how to

schedule your activities well ahead of time, not when you urgently need these
activities. This way, you avoid stress. It also involves prioritizing activities so
that we either do the most important things first or to devote to them the biggest
chunks of our time.

Monitoring on the other hand, involves looking at what parts of the plan
have been done and what have not been done. Monitoring also asks for the
reasons why the plans have not been followed and what altematives are available
if the plan proves to be di{ficult to follow.

Try planning for a week. Then at the end of the week, monitor these plans
See how usefirl planning and monitoring can be.

Be persuasive.

When you are persistent enouglq you can make others do what you want
them to do. And when you are persuasive enougtr, you can make others want to
do what you want them to do. Do you see the difference?
 92
Do you think that to make another person do what you want to do is a tall
order? Well, Burton Kaplan doesn't think so. He provides the following
suggestions to develop your persuasiveness.

l. To win over people completely, you must appeal to their heart as well as their
mind Tltey need to be persuaded at these two levels to go along with you.

2. Present your idea in a way that is logical from the persons viewpoint. Start
by pointing out the benefit that they will enjoy related to their need, problem,
desire, value or difiiculty. End with a specific reference to your produc! idea
or service in ways that will provide them satisfaction or answer. Examples of
ways to start are: "l understand you have a problem in the area of......." Or
"Let see if this is your situation." Examples to end a presentation are: "We
can do the job faster than. . . " and "You get the be st of both with. . .ll'

3. Ask questions that will give you more information about their needs.

4. Agree with their remark and buill on it to push your product, service or idea
5. "Close" the deal by assuming the sale hos been complaed To do this, you
act and speak like there is a mutual agreement arrived at.

Related with persuasiveness is networking. An entrepreneur needs other

people to succeed in business-- customers, suppliers, bankers, business advisors,
govemment offices, etc. The process of linliing up with others, either formally or
informally. is called networking.

How do you establish linkages? Get out on your own bac\ard to meet
people. Attend gatherings. Join clubs or associations. Stay after church services
for a chat with parishioners. Be present during parent-teacher meetings in your
children's school. This is the first step in networking. The rest depends upon you.
Follow up with phone calls. Invite them to your parties. Can you think'of more
ways to establish linkages?

Practice entrepreneurship.

Experience is the best teacher. Try what is like to be a businessman. If you

have a father, relative or ftiend who owns an enterprise, arrange for you to work
there during the holidays. Know what is like to run and rn*ag. a business.

Better still, put up your small venture. you can start by selling things to
-
friends and neighbors. You can sell hopia, btankets, candies, cards,-flo*e'.s-
any'trring people might need. You can even make these yourself to make yo,r
profit bigger.
 9i

LEARNING ACTIVITIES

I. Answer the following questions:

l. Creative people look at things and imagine what else they could be. Give an
example of a product or activity which you can exercise creativity.
2. The examples of opportunity seeking cite at least 2 illustrations or situations
for each example, where you can practice opportunity-seeking behavior.
3. How can you achieve quality and effrciency in business and other aspects of
your life. Cite at least two ways.
4. Why is information important for an entrepreneur. List some sources of
information which entrepreneurs need.
5. Aside from daily planning what else can you do to strengthen your weak
personal enhepreneurial characteristics?
6. List down the characteristics that you wish to develop and then write down at
least three activities or measures that you can do to strengthen them.

-{E
-t.E
ttr
Q L !-'- FURTH€R RCADINGS/ R€FER€NC€s

Brandq Steven C. Entrepreneurship in Established Companies -Managing

Toward 2000, 1986

Church, Olive D. Small Business Management and Entrepreneurship,

1983

Fajardo, Feliciano R. Economics, 3'd. Edition, 1995

Fajardo, Feliciano R. Entrepreneurship, 1994

SERDEF and UPISSI lntroduction to Entrepreneurship, 1993.

SERDEF and UPISSI You, Too, Can Start Your Owr Business. 1990

END
 9-l

LESSON 3

GROUP ENTREPRENEUR'HIP

In the previous lesson, the entrepreneur is presented as an individual. It is

also possible for a group of ildividuals to join together and put up one cornmon
business.

* WHAT IS GROUP ENTBEPRENEURSHIP?

Experts define group entrepreneurship as an economic activity undertaken

by a group of persons tied together by a common bond. Possibly, they live in the
same village, are related by blood, went to school together, are colleagues in the
same profession or otherwise share a common interest.

TYPES OF GROUP ENTREPRENEUBSHIP

*
Group enfrepreneurship may be classified in two ways: (l) according to
tyle of activities undertaken, and (2) according to the legal form of ownership.

Classification by types of activities.

Short term venture This type of group entrepreneurship is established to

undertake an economic pro.ject, at the end of which the group relationship ends.
For example, several students belonging to a club decide to raise ftrnds by
sponsoring a band concert on campus so that the profits from the ticket sales
can be donated to typhoon victims. The activity of sponsoring a concert for
profits is a short-term venture which ends after the event.

2. Joint msrketing of products on a regular Dasri'. This happens when a number

of entrepreneurs produce on an individual basis, but collectively asks someone
else to do the marketing for them. Joint marketing is common in the shoe and
leather and furn irure industrie s.

3. Joint ownership of a service facility. An example of this type of group

entrepreneurship is a group of furniture makers in Cagayan Valley who
decided to buy a kiln drier for their common use. Individually, the members of
the group could not afford to buy the expensive drier, but by combining their
firnds, they became joint owners of a facility which each olthem needito be
more productive Apparently, they were able to draw an agreement by which
they take tums using the drier.
 f-i
This practice has been done successfully by farmer groups who have
pooled resources in order to be joint owners of irrigated systemq crop dryers.
tractors, warehouses, etc., while maintaining their status as individual
producers.

4. A well developed organizltion structure undertaking an economic activity.

ln this form of group entrepreneurship, individuals formally join together to
carry out an agricultural, agro-industrial venture on a long term basis. For
example, a number of persons engaged in chicken-egg production may
organize themselves so that they can be assured of veterinary services, feed
supply and a common market. A group of w'oodcraft manufacturers may
organize for the purpose of buying raw materials in bulk acquire common
machineries and market their products jointly. Usually, this tlpe of group
enfrepreneurship takes the form ofa cooperative.

5. Network or groups of artisans. Here, a group of artisans form a network in

order to complement each other's operations or obtain group benefits. The
hand-made paper industry association is a good example of this type of
networking. The members of the association may either be producers or
converters. The producers make the hand-made paper, while the converters in
turn use the hand-made paper to manufacture other products like fans.
stationery, dolls, utility boxers and so forth. By having this network, the
producers are assured of buyers for their hand-made paper, while the
converters are assured ofa continuous supply of raw materials. As a group, the
network participates in local or international trade fairs.

6. Group entrepreneurship engaged in specialized services. These are

specialized groups, usually marginal or disadvantaged, such as the rural poor,
handicapped or out of school youth. For example, the "Tahanang Walang
Hagdanan" was established so that the blin{ the crippled, and other
handicapped people may be mobilized to be productive in such activities like
woodworking wheelchair making and lantern making. This type of group
entrepreneurship is usually organized and supervised by civic or some other
socially-oriented organizations.

Classification by legal form of ownership.

I . Partnership. Where two or more individuals (usually not more than five) &aw
up Article of Partnership and register with the Securities and Exchange
Commission. The life of the partnership is indicated in the Articles of
Partnership. However, generally speaking the partnership is dissolved when
either or both partners withdraw from group enterprise.

2. Corporation Where five to 15 incorporators draw up the Articles of

lncorporation and register wtth the Securities and Erchange Commission.
Decisions are usually done by vote and the more shares an incorporator has,
 96

the more votes he is entitled to. Maximum life of a corporation is 50 years,

subject to renewal.

3. Cooperativa Where at least 15 incorporators draw up the Articles and By-

laws of the cooperative and register with the Cooperative Development
Authority. Each member has one vote, regardless of the number of shares
owned. Just like corporation, the maximum life of the cooperative is 50 years,
subject to renewal.

The cooperative is the most popular form of ownership for many economic
activities both in the rural and urban communities. In particular, it is the most
favored means of promoting group entrepreneurship for many special or
disadvantaged groups, such as the rural poor, rural womerL subsistence farmers,
and tribal fotks. A cooperative is democratic and participative in terms of
decision-making. One vote, no more, no less is given each member, regardless of
number of shares. However it is expected that all members should be active
participants in the cooperative venture. On the other hand, a partnership is deemed
unstable, when one partner quits, the enterprise terminates. The corporation on the
other hand, generally pays higher taxes and voting is based on the number of
shares owned. Consequently, power and control is concentrated in the hands of a
few stockholders.

ADVANTAGES OF GROUP ENTREPRENEURSHIP

*

Advantages of group enhepreneurship involves (l) benefrts to the

individual participants, and (2) benefits to society in general.

l. Mobilizing tesoutces. At the start of the business, an individual tends to have

very limited resources. He has little money, machinery, materials, manpowel
management know-how and methods (technology). To increase resources, the
individual can invite others in the business to contribute funds and participate
in rurning the business.

2. Attaining economies of scale. What does economies oJ'scale mean? [t means

it is more economical to do business in a big way:whether in terms of buying
raw materials, making the products, or selling them. Here are examples: a
shoemaker needs to buy raw materials such as leather from a supplier.
Because he buys in small quantities, he ahs to pay in cash and the regular price.
He gets ordinary treatment fiom the supplier. By joining other shoe makers in
order to buy in volume, he can now bargain with the supplier and get special
treatment, like credit, discounts, free delivery, etc.
 97
Woodworking entrepreneurs frnd that the cost of firing kiln drier to
dry one piece of lumber is the same cost to dry 50 pieces of lumber. The more
lumber dried, the less is the cost of drying per unit.

Small manufacturers find it advantageous to market their products

collectively. Although they compete with each other, they still attract more
buyer than when they t-ry-- to sell individually. Generally speaking there is
more business for each of them in gloup marketing-

In general, individual enfiepreneurs who join a group face the market

from a stronger bargaining position and overcome the disadvantages of
operating as a single and small entepreneur.

3. Developing human resources, Group entrepreneurship, specially the

cooperative, is conducive to developing the capabilities of its members. A
cooperative depends heavily r, participation by its members in production,
management and other activities of the cooperative. It places a premium on
securing technical and cooperafive education of their members. Thug the
individual gets educated in many aspects of the business by joining the group.

Advantages to the society in general.

l. Reaching segments of the population not served by public progtams.

Although govemment programs are numerous and are meant to reach all
sectors of the society, there are communities or segments that are hard to reach.
These include the tribal communities, rural women, and subsistence farmers.
They are either too remotely located, too shy or completely unaware that there
are programs which can improve their lives. Thus, it takes a special system or
organization-a cooperative, a foundation, or a non-government
organization-to deliberately and directly coax them, in a manner of speaking
out of their shell and participate in identiSing and running economic activities
as workers and co-owners.

2. Increasing the supply of entrepreneurs. As more and more people are drawn
into cooperatives and other group enterprises, more and more are Eained in
managerial and technical skills. There will come a time that some of the
members of the group enterprise will feel ready to break away from the group
and venture on their own as individual entrepreneurs.

3. Fighting poueru). Group entrepreneurship empowers large numbers of people

economically and socially. Members of the cooperative are often able to send
their children to school, effectively breaking the cycle of poverty in many
depressed families and communities. It gives the people hope of survival of
the v'illage and stems migration to the cities.
 98
4. Overcoming erploitation. [n a country where the supply of labor is big and
jobs are scarce. Exploitation is common in many factories and other
workplaces. In group entrepreneurs, each member has a voice in decision
making. At least, within the general membership no single individual is in a
position to exploit another. However, exploitation from another source-from
the supporting organizati on-i s possible.

5. heserving traditional crafts and arls. For example, a women's cooperative

engaged in weaving in the Mountain Province recruits younger members and
trains them in operating hand looms. In this manner, they ensure the survival
and growth of the enterprise -whose etlrnic products have found good markets
in Meho Manila and abroad.

DISADVANTAGES OF GROUP ENTREPRENEURSH!P

*
There are also certain drawbackVdisadvantages of group enhepreneurship
to (l) the individual participants, and (2) to the society in general.

Disadvantages to the individual participants.

l. It takes time to start a goup enterprise as there are many processes involved
before the group is formed and begin operating.

2. Profits have to be shared with other members of the group. For a cooperative
that has yet to take o{I, the monetary rewards to eich member may be
too
meager.

3 Decision making longer as the partners, the board, or the general

membership
has to meet before a policy issue can be acted on.

4 An initiative or a suggestion by a member or group of members may

be ki,ed
off by vested interests within the organizati-on or outside the organization.
Especially if the group enterprise enGs into business *he.e
co-jpetition is
keen or where "domains,, or ',turfs,, have already been
established.

5. If the support agency-which may be a fo,ndation, NGo, or ci,ic

organization-is inefficient or uncommitted the economic goals oi the group
enterprise may not be attained. tr takes a lot of committeo
e#ort to train plopr'e
in technical and manageriar sk ls to run the group enterprise
well. Even after
training close supervision is often required. ir ai, ,.rrr. of
commitment is not
present, then, the enterprise is bound to fail.
 99

Disadvantages to the society in general.

l. The market is unpredictable. What may be "hot stuff'today may be "baduy"

or passe tomorrow. If the project fails because of the changing market
preferences and other forces, a whole group of people may lose their
livelihood.

2. The initial stage of development requires good services from a support agency.
If the support agency is negligent or lacks managerial skill or integrity, the
people may end up badly exploited.. experience has shown that grave injustice
can be made in the name of development.

3. It is expected that the support agency will play an active nurhrring role at the
initial stage of the life of ttre group en-terprise. However, measues should be
taken to make the enterprise ultimately self-reliant. If the support agency does
too much for the enterprise for too long then the goal of economic
empowerment is defeated. The members will not develop to become real
entrepreneurs. ,'

L€ARNING ACTIVITIES

I. Answer the following questions:

1. Classi! the forms of group entrepreneurship based on R?e of activities. Cite

one example for each form that is established in your locality.
2. List the legal forms of ownership of group entrepreneurship. Make a survey of
any groups enfepreneurship that are established ia your locality.
of
Characterize or describe one in terms of:
a) Activities or purpose
b) Legal form ofownership
c) Advantages or benefits derived by members of the community
d) Problems or disadvantages encountered in the business.

f;E FURTH€R READINC5/ RCF€RCNC€s

Brandq Steven C. Entrepreneurship in Established Companies -Managing

Toward 2000, 1986

ChurctU Olive D. Small Business Management and Entrepreneurship,

1983.
 lo0

Fajardo, Feliciano R. Economics, 3'd. Edition, 1995

Fajardo, Feliciano R. Entrepreneurship, 1994

SERDEF and UPISSI Introduction to Entrepreneurship, 1993 '

1990
SERDEF and UPISSI Yoq Too, Can Start Your Own Business'

e END
 lol

dui MODULC sUMMARY

At this point you have found out that almost everyone-and that includes
you and me-has entrepreneurial attitudes, more or !ess. These attitudes can be
apparent or hidden, active or dormant, developed or undeveloped. For example.
you may be very persistent, confidant and persuasive but rarely moderately
concemed with quality, and rather weak in information seeking.

You also got an idea regarding the personal characteristics you need to
develop in order to be a successful entrepreneur. If you would like to start
'working on thenl you must follow the guidelines or tools to develop your creative.
goal setting risk+aking information seeking and other behavior associated with
successfu I entrepreneurs.

However. the entrepreneurial traits and characteristics you have leamed are
not only the requirements to a successlirl business career. There are other skills
and linowledge particularly relating to technicalities of putting up and running a
business which you have to master.

In group entrepreneurship, resources in the rural areas are mobilized and

economies of scale are attained. But it may also lead to loss of livelihood of the
whole group if the members are neglectftil of their duties, become too dependent
on their leader or officers fail to cope with unpredictable conditions in the
economy.

SUMMATIV€ T€ST

l. Identif,v:

l. It involves moving around ideas, and thus arriving at new

ways of doing things.
2. It is actively looking and going after ideas which can be
tumed into productive achvlty.
3. It is trying to do something even if either people say that
you are like to fail.
4. It is starting work with enthusiasm and interest while work
is done.
5. They are important sources of information which
entrepreneurs need for his business.
 t02
6. It is aiming for something which depend on one's abilities
and resources.
7. It is making others want to do what you want them to do.
8. It is the process of linking up with customers, suppliers,
business advisors, government officials, etc. in order to
succeed in business.
9. It is thinking of the small activities you will have to carry
out to accomplish bigger.
10. It involves prioritizing activities so that the mosl important
things are done first.

IL Write the term that is defined:

It is an economic activity undertaken by a group of persons

together by a common bond.
2 It is the most popular form of owlership for many group
economic activities in rural and urban communities.
3 It is a group of enfrepreneurship consisting of 2 or more but
not more than 5 persons.
4 It is a form ofgroup entrepreneurship organized by students
to raise frrnds for their activities.
5 It is formed by 5 to 15 incorporators to engage in a business
activity.

R€FCR€NCCs

Brandt, Steven C. Entrepreneurship in Established Companies -Managing

Toward 2000, 1986

Church. Olive D Small Business Management and Entrepreneurship,

1983.

Fajardo, Feliciano R. Economics, 3'd. Edition, 1995

Fajardo, Feliciano R. Entrepreneurship, 1994

SERDEF and UPISSI Introduction to Entrepreneurship, 1993.

SERDEF and UPISSI Yoq Too, Can Start Your Own Business, 1990

oEND