COURSE LEARNING MODULE

ENTR 1013 – The Entrepreneurial Mind

Lesson: Introduction to Entrepreneurship

Topic: Entrepreneurship Defined

Learning Outcomes: At the end of this module, you are expected to:

1. Give the importance of entrepreneurship

2. Discuss the roles of entrepreneurs in the economy
3. List the types of entrepreneurs and entrepreneurial ventures
4. Identify characteristics required of successful entrepreneurs
5. Explain the importance of factors of production and enterprise in becoming an entrepreneur
6. List several types of entrepreneurs and provide examples of each
7. Summarize the role that entrepreneurs play in the economy

LEARNING CONTENT

Introduction:

Entrepreneurship is an important engine of growth in the economy. In this lesson, you'll learn about what an
entrepreneur is and the key characteristics and skills that a successful entrepreneur possesses. Some examples of
entrepreneurs will also be given. Entrepreneurs also fill a vitally important role in market economies. In this lesson, you'll
also learn about the importance of entrepreneurship, different types of entrepreneurs and how they add value to an
economy.

ENTR 1013 – The Entrepreneurial Mind| 1

This document is a property of University of Saint Louis Tuguegarao. It must not be reproduced or transmitted in any form,
in whole or in part, without expressed written permission.
Lesson Proper:

Entrepreneurs - Risk Takers

Meet Eddie. He's an entrepreneur, which is a person who starts a business. Eddie recently graduated from college with a
degree in computer programming and has developed an app that he believes will make him a small fortune. So, instead of
working nine to five for a software company in Silicon Valley, he decides to start his own. He wants to challenge himself
and work the way he wants to without answering to a boss. He's using a small inheritance to fund the start-up. As an
entrepreneur, Eddie is not only starting a business, but is risking his personal wealth to establish it.

Eddie is also trying to convince some friends from school to form an entrepreneurial team with him.

Entrepreneurial Team
•It is a group of people that help spread out the risk of the new venture and
also bring in different talents and skill sets to it.

Eddie has a friend who majored in accounting and another who majored in marketing. He's hoping they may come along
with him and bring their skills and some cash. If he can build the right team, he can create a synergy, where the group can
achieve more together than they can apart.

Examples of Entrepreneurs
Eddie hopes that his entrepreneurial gamble will pay off as well as the gambles of other well-known entrepreneurs, such
as:

ENTR 1013 – The Entrepreneurial Mind| 2

This document is a property of University of Saint Louis Tuguegarao. It must not be reproduced or transmitted in any form,
in whole or in part, without expressed written permission.
 Bill Gates Steve Jobs Mark Zuckerberg

• Bill Gates, founder of Microsoft. There are probably not many people that have not been touched by one of his
products, such as Microsoft Windows, Microsoft Office and Internet Explorer.
• Steve Jobs, co-founder of Apple computers, which produces Macs, iPods and iPhones, as well as Apple TV.
• Mark Zuckerberg, the founder of Facebook.
• Pierre Omidyar, founder of eBay.  Caterina Fake, co-founder of Flikr, which hosts images and videos on the
Internet.

Characteristics & Skills

Entrepreneurs are like gamblers, and like any gambler, their chances of winning increase if they have the right cards. Let's
look at some characteristics and skills that help an entrepreneur succeed.

a. A tolerance for risk-taking is a necessary attribute for entrepreneurs. You can think of risk-taking as pursuing an
activity even if there is a chance of a negative consequence. Starting a business is risky, and even more so when
you're using your own money. Sometimes you can spread the risk by convincing investors to come along on your
new venture or by forming an entrepreneurial team, like Eddie is trying to do. But, at the end of the day, you can't
avoid risk if you are going to start a new business and innovate.

b. Entrepreneurs also need creativity. Think about Steve Jobs and Mark Zuckerberg; these two entrepreneurs
brought innovative products to the market that changed the way we live. Successful entrepreneurs innovate in
one of two ways. They can bring an entirely new product or service to the market, like the first cellular phone. On
the other hand, they can radically improve upon something in a dramatic way, just like the iPhone changed the
world of smart phones.

c. Initiative is also required. Entrepreneurs lead. If you are not willing to start without being pushed, your new
business will never get off the ground. For example, Eddie had an idea fresh out of college and took the initiative
to start his business venture. No one had to convince him to act; he just acted.

d. Independence is also a paramount attribute for entrepreneurs. Nobody holds an entrepreneur's hand, and they
don't want any hand-holding. Successful entrepreneurs must be willing to go it alone and succeed or fail on their
own effort without relying much on the other people.

e. Entrepreneurs also need excellent problem-solving skills. Successful entrepreneurs often provide a service or
good that solves a problem for potential customers. But problem solving doesn't stop with product design.
Running a business is all about problem solving. You have to figure out how to start your business, how to obtain

ENTR 1013 – The Entrepreneurial Mind| 3

This document is a property of University of Saint Louis Tuguegarao. It must not be reproduced or transmitted in any form,
in whole or in part, without expressed written permission.
 financing, how to market your product and how to manage employees, just to name a few problems that the
average entrepreneur will encounter.

f. Organizational skills are necessary. Running a business is complex and time consuming. Without organization
skills, a business may unintentionally break laws, productivity could fall short or it could be unprepared for
unexpected situations and problems. Entrepreneurs need to constantly juggle and multitask because they often
wear the hats of owner, manager, accountant, and salesperson.

g. Communication is essential. Entrepreneurs must be able to effectively communicate with potential lenders,
investors, business partners and customers. Sooner or later, most businesses will need capital to grow.
Entrepreneurs must make their pitch to lenders or investors to get the funds needed to take their business to the
next step. And of course, if you can't convince your prospective customers of the value of your product or service,
your business is doomed to fail.

Entrepreneurship Defined

Now let’s define the term entrepreneurship.

Meet Ernie. Once upon a time he, like most people, punched a
clock for a wage. When he wasn't working, he was pursuing his
hobby of gourmet cooking. After a particularly trying day at work,
Ernie decided to take the leap and become an entrepreneur.

An entrepreneur is a person who takes a risk to start and operate a business. Not everyone is cut out to be an
entrepreneur. You need to have entrepreneurship:

- which is the ability and willingness to take the risk to develop and operate a
business for profit or a non-profit organization to serve the needs of a particular group.

Entrepreneurship: Entrepreneurship is the process of identifying, evaluating, and seize opportunities to create and grow
new businesses or innovate within existing ones. It involves the development of innovative ideas, the ability to take
calculated risks, and the capacity to allocate resources effectively to tum those ideas into viable products or services.

Importance of Entrepreneurship:

Entrepreneurship plays a crucial role in fostering economic growth, to creation, and societal advancement. The
importance of entrepreneurship can be understood through the following aspects:

1. Economic Growth: Entrepreneurs drive economic growth by creating new products and services that generate wealth,
increase productivity, and stimulate innovation.

2. Job Creation: New and growing businesses create job opportunities that directly benelt individuals and communities.
Entrepreneurship promotes employment by establishing new companies and expanding existing ones, thus offering
people a means to support themselves and their families.

ENTR 1013 – The Entrepreneurial Mind| 4

This document is a property of University of Saint Louis Tuguegarao. It must not be reproduced or transmitted in any form,
in whole or in part, without expressed written permission.
3. Innovation: Entrepreneurs are at the forefront of innovation, developing groundbreaking technologies and processes
that lead to improved products and services. This constant drive for innovation keeps industries competitive and helps
them adapt to the ever-evolving global market.

4. Social Progress: Entrepreneurs often address social, environmental, or cultural challenges. Through their business
ventures.

5. Global Competitiveness: Entrepreneurship promotes global competitiveness by encouraging businesses to improve

their products, services, and processes continually.

6. Personal Development: Entrepreneurship encourages personal development by fostering Qualities such as creativity,
resilience, and adaptability.

7. Wealth Distribution: Entrepreneurship can help promote a more equitable distribution of wealth by empowering
individuals from diverse backgrounds to create and grow their own businesses.

Areas of Entrepreneurship

Entrepreneurship encompasses various areas, reflecting the diverse nature of business opportunities and the sectors in
which entrepreneurs can create value. Some key areas of entrepreneurship include:

1. Technology and Innovation: Entrepreneurs can develop new technologies, software, or hardware solutions, and create
innovative products or services that leverage existing technologies to solve problems or improve people's lives.

2. Social Entrepreneurship: Social entrepreneurs focus on addressing social, environmental, or cultural challenges through
their business ventures, often aiming to create a positive impact on society while achieving financial sustainability.

3. Retail and E-commerce: Entrepreneurs in retail and e-commerce develop and operate brick-and- mortar stores, online
marketplaces, or a combination of both, offering products and services to consumers.

4. Service Industry: Service-based entrepreneurship involves providing various services such as consulting, marketing,
design, event planning, hospitality, or professional services to individuals or other businesses.

5. Manufacturing and Production: Entrepreneurs in this area create value by producing physical goods or products, either
through traditional manufacturing processes or innovative methods, such as 3D printing.

6. Creative Industries: Creative entrepreneurs work in fields such as fashion, art, design, music, film, and publishing,
where they use their creative skills to develop and market products, services, or experiences.

7. Agriculture and Food: Entrepreneurs in the agriculture and food sector focus on developing innovative farming
techniques, creating sustainable food production methods, or launching food products and businesses that cater to
specific dietary needs or preferences.

8. Health and Wellness: Health and wellness entrepreneurship involves creating products, services, or platforms that
address physical, mental, or emotional well-being, such as fitness programs, wellness apps, or healthcare innovations.

ENTR 1013 – The Entrepreneurial Mind| 5

This document is a property of University of Saint Louis Tuguegarao. It must not be reproduced or transmitted in any form,
in whole or in part, without expressed written permission.
9. Education and Training: Education entrepreneurs develop innovative solutions for teaching and learning, such as e-
learning platforms, educational apps, or unique training programs.

10. Green and Sustainable Business: Green entrepreneurs focus on developing eco-friendly products, services, or business
practices that contribute to environmental sustainability, energy efficiency, or waste reduction.

The role of entrepreneurs in the economy

Entrepreneurs play a significant role in the economy by driving innovation, creating jobs, fostering economic growth, and
contributing to societal development. The role of entrepreneurs in the economy can be understood through the following
aspects:

1. Innovation: Entrepreneurs are often the driving force behind new ideas, products, and services that disrupt traditional
markets and industries.

2. Job Creation: Entrepreneurs create new businesses, which in turn generate employment opportunities.

3. Economic Growth: Entrepreneurship contributes to economic growth by fostering competition which leads to
improvements in efficiency, productivity, and quality.

4. Wealth Distribution: Entrepreneurs can contribute to more equitable wealth distribution by creating business
opportunities for individuals from diverse backgrounds. By empowering people to start and grow their own businesses,
entrepreneurship can promote social mobility and reduce income inequality.

5. Global Competitiveness: Entrepreneurs contribute to a country's global competitiveness by developing cutting-edge

products and services, adopting new business models, and improving operational efficiency.

6. Social Progress: Entrepreneurs can also play a critical role in addressing social, environmental, and cultural challenges.
Social entrepreneurs, in particular, focus on creating positive social impact through their ventures, leading to
improvements in areas such as education, healthcare, and environmental sustainability.

7. Resilience in Economic Downturns: Entrepreneurs can help economies recover from financial crises by identifying new
business opportunities, launching innovative ventures, and driving job creation.

Factors of Production

A successful business typically needs to utilize all factors of production, which is just a fancy way of referring to resources
necessary to provide a good or service. Take Ernie's new restaurant for example. He'll need all the classical factors of
production, which includes land, labor and capital. He needs to either purchase or lease property on which his new
restaurant will sit. He'll need to hire people to help him prepare and serve meals. He'll also need capital to finance the
new restaurant.

In addition to the 'classic' factors of production, he needs one final factor of production, which he will supply himself -
enterprise.

ENTR 1013 – The Entrepreneurial Mind| 6

This document is a property of University of Saint Louis Tuguegarao. It must not be reproduced or transmitted in any form,
in whole or in part, without expressed written permission.
 Enterprise is the ability to take all other factors of production and use them to create goods or
services.

Entrepreneurs, like Ernie, provide the enterprise to an economic activity.

Types of Entrepreneurs/ Forms of Entrepreneurship /Forms of Entrepreneurial Ventures

Basics of Entrepreneurship

Let's learn the basics of entrepreneurship first. Keep in mind that entrepreneurial ventures are generally started by an
individual who usually has very limited resources to operate the business. Many times, they revolve around new,
innovative products but not always. The owner takes on all of the planning and the risks of the business at the beginning.
Entrepreneurs don't always fit into one neat little category. Let's take a look at different types of entrepreneurs. In her
book, Launching New Ventures, Ernie identifies different types of entrepreneurs:

1. Small Business Entrepreneurs: These entrepreneurs typically own and operate small businesses in their local
communities. Examples include local retail store owners, restaurant owners, and service providers.

2. Scalable Startup Entrepreneurs: These entrepreneurs have the ambition to create fast-growing. scalable businesses
with the potential to disrupt industries and make a significant impact on the market.

3. Social Entrepreneurs: Social entrepreneurs create businesses to address and solve social issues or improve the well-
being of society. Social Entrepreneurship - The last form for Skip to consider is a social entrepreneurship. Social
entrepreneurship seeks to bring about positive change for the world. They want to make products that can solve
problems and crises and make their community and world a better place. Social entrepreneurship has a mission to
fulfill and are often innovative in finding funding and resources for their product.

4. Lifestyle Entrepreneurs: Lifestyle entrepreneurs create businesses that allow them to pursue passions, hobbies, or
a particular lifestyle.

5. Serial Entrepreneurs: Serial entrepreneurs are individuals who continuously create and launch new businesses.
They are risk-takers who enjoy the process of starting, growing, and often sells their companies before moving on to
their next venture.

6. Solopreneurs: Solopreneurs are self-employed individuals who run their businesses singe handedly, without the
help of employees or partners.

7. Intrapreneurs: Intrapreneurs are employees within larger organizations who demonstrate entrepreneurial traits by
taking initiative, innovating, and driving change from within the company entry work to create new products,
services, or processes that can enhance the company competitiveness and growth.

8. Franchise Entrepreneurs: Franchise entrepreneur’s business guidelines and business model Franchise Ecoming
franchisees.

9. Innovation Entrepreneurs: These entrepreneurs are focused on creating new products, serve or technologies that
can revolutionize industries or solve complex problems. They are driven a passion for innovation and a desire to make
a significant impact on the world.
ENTR 1013 – The Entrepreneurial Mind| 7
This document is a property of University of Saint Louis Tuguegarao. It must not be reproduced or transmitted in any form,
in whole or in part, without expressed written permission.
 10. Niche Entrepreneurs: Niche entrepreneurs create businesses that cater to a specific target mate or customer
segment, often addressing unique needs or preferences within that niche.

11. Green Entrepreneurs: Green entrepreneurs are focused on creating environmentally sustainable businesses that
promote the conservation of natural resources, reduce pollution, and minimize the overall ecological impact of their
operations.

12. Women Entrepreneurs: Women entrepreneurs are female business owners who start and manage their own
ventures.

13. Youth Entrepreneurs: Youth entrepreneurs are young individuals, often students or recant graduates, who start
their own businesses. These entrepreneurs are typically driven by their passion, creativity, and ambition to create
innovative ventures and make a difference in the works.

14. Family Entrepreneurs: Family entrepreneurs are those who start or continue a family-owned business. These
businesses often involve multiple generations of family members working together, with shared values and a strong
sense of loyalty and commitment to the family's long term success.

15. Creative Entrepreneurs: Creative entrepreneurs are those who create businesses within the cars and
entertainment industries.

16. Digital Entrepreneurs. Digital entrepreneurs are those who create and manage online businesses. using the
internet as their primary platform for delivering products, services, or content.

17. Agripreneurs: Agripreneurs are entrepreneurs who are involved in the agriculture sector, often creating
innovative solutions and technologies to improve farming processes, increase crop yields, and contribute to food
security.

18. Tech Entrepreneurs: Tech entrepreneurs are those who start technology-based businesses, focusing on
developing new technologies or applying existing technologies to create innovative products or services.

19. Micro-Entrepreneurs: Micro-entrepreneurs are small-scale business owners who often work with limited
resources and capital.

20. Corporate Entrepreneurs/ Large Company Entrepreneurship: Corporate entrepreneurs are those who create new
business ventures within established corporations. They are responsible for identifying and capitalizing on new
business opportunities and driving innovation within their companies, often functioning as "intrapreneurs" who help
organizations stay competitive and relevant in the market.

Skip finds that unlike other forms of entrepreneurship, large company entrepreneurship is bigger in size and
offers new products to meet the needs of their customers. In order to maintain the business, large company
entrepreneurship needs to understand how the needs of customers’ change.

ENTR 1013 – The Entrepreneurial Mind| 8

This document is a property of University of Saint Louis Tuguegarao. It must not be reproduced or transmitted in any form,
in whole or in part, without expressed written permission.
Engine for Growth & Innovation
Entrepreneurs, like Ernie, are vital for economic growth and innovation. Entrepreneurs are willing to take the risk to bring
their ideas into reality. They often create new products and entire new industries.

Creating a new product and being brave enough to try and

sell it can lead to exciting things for an entrepreneur. Lastly,
in this lesson, we'll learn the four common forms of
entrepreneurship and their characteristics.

MEET SKIP!
Skip has recently invented a new product for schools that he thinks will be a huge hit.
While he has not mentioned his product to anyone else, Skip feels it might be time to
start his own business selling his product. Now, anyone can start a business selling
products that are already on the market that are loved and needed by consumers
everywhere. But, starting a business selling a product that is new and never been sold
before, is a whole other story.

You see, if Skip decides to start and run a new business selling a new innovation and takes on all of the risks and
rewards, he would be considered an entrepreneur. Before Skip decides to take a leap and start his business, he first
wants to do some research on the different forms of entrepreneurship. Come along as Skip learns which form is best
for him and his new school product.

ENTR 1013 – The Entrepreneurial Mind| 9

This document is a property of University of Saint Louis Tuguegarao. It must not be reproduced or transmitted in any form,
in whole or in part, without expressed written permission.
 *** END of LESSON ***

REFERENCES

Textbooks

Go, Josiah and Escareal-Go, Chiqui (2018) Entrepreneurship: Starting an Enterprise. Having an Innovation Mindset

Gonzalez, Victoria. (2024). The Entrepreneurial Mind. EDRIC Publishing House. Sta. Cruz, Manila

Online Reference

What is an Entrepreneur? - Definition, Characteristics & Examples. (2013, October 11). Retrieved from
https://study.com/academy/lesson/what-is-an-entrepreneur-definition-characteristics-examples.html.

Entrepreneurship & the Economy: Definition & Importance. (2013, December 24). Retrieved from
https://study.com/academy/lesson/entrepreneurship-the-economy.html.

Common Forms of Entrepreneurship. (2018, March 24). Retrieved from

https://study.com/academy/lesson/common-forms-of-entrepreneurship.html. Images

https://images.app.goo.gl/eHKwmqV9Ko3qtoLP8
https://images.app.goo.gl/FLQg6XRxnuymAGC7A
https://images.app.goo.gl/8dmRYMVnKSby8am36
https://images.app.goo.gl/h33C8AmHCoiWKuw5A
https://images.app.goo.gl/9e2sb2MgMFfA2Yir6
https://images.app.goo.gl/FSGCd6CZUrXtFq6V8

ENTR 1013 – The Entrepreneurial Mind| 10

This document is a property of University of Saint Louis Tuguegarao. It must not be reproduced or transmitted in any form,
in whole or in part, without expressed written permission.