LESSON 1 – Competencies required of an Effective Entreprenuer

PERSONAL ENTREPRENEURIAL CHARACTERISTICS (PECs) has three cluster:

1. ACHIEVEMENT CLUSTER Opportunity Seeking

- sees and acts on new business opportunities

Persistence - a persistence individual takes

repeated or different actions to overcome obstacles to his/her goals

- stick to his judgment in the face of opposition or early lack of success

- makes personal sacrifices

Commitment to the Work Contract - should accept full responsibility - pitch in for others to finish the job- express concern towards the customer

Demand for quality and efficiency- do things that meet existing standards

of excellence- strive to do things better, faster and

cheaper

Risk Taking- take moderate risks - state a preference for situations

that involve moderate risks

2. PLANNING CLUSTER Goal setting

- should always have clear and specific objective –- a long-term and short term objective --

- they are guided by the word SMART (specific, measurable, attainable, realistic and time-bound)

Information Seeking- entrepreneurs do not stop seeking

information for their businesses for improvement of the company

- information-seeking on clients, supplies, and competitors

Systematic Planning & Monitoring

- developing & using logical, step by step plans, evaluate, monitor progress & switch to alternative strategies

WAYS THAT ARE USED BY THE ENTREPRENEURS TO

EXERCISE SYSTEMATIC PLANNING & MONITORING

learn from mistakes constantly review performanceConcentrate on present situations

go back & review goalsIf still unproductive, accept changes, but find other means to achieve goals

Tries to change environment if the environment is the cause of the low standard performance

3. POWER CLUSTER Self-confidence

- possess a strong believe in their abilities- express confidence in their own ability- they believe their business to be

successful and profitable

Persuasion & Networking- should use deliberate strategies to influence

others-use their business & personal contact to

accomplish their objectives

LESSON 2 – Strength & Weaknesses of an Filipino Entrepreneur

STRENGTH WEAKNESSES1. Always sets his/her own realistic goals

Sets unrealistic goals

2. Self- reliant Depends on other people for attainment of goals

3. Focuses on positive objectives

Focuses on goals which call to stop or avoid doing things

4. Periodically reviews performances

Does not keep track in progress

STRENGTH WEAKNESSES5. Learns form own mistakes

Does not improve on areas where he/she failed

6. Accepts changes & uses them to motivate self

Is afraid of changes

7. Takes care of himself physically

Is unmindful of physical appearance

8. Sticks to schedule Does not avoid or minimize interruptions

9. Is self-motivated Depends on outside forces to be motivated

10. Is action-oriented, concentrates on what has already been done or accomplished

Concentrates on what is still to be done

STRENGTH WEAKNESSES11. Manages backtracking

Keeps on going back & forth on the same path

12. Finishes work once started

Does not complete most often any given task

13. Reflects on time management regularly

Is not conscious of time wasted

14. Associates with other entrepreneurs; patterns lifestyle, values, & habits after successful entrepreneurs

Does not develop the habit of working well with people

LESSON 3 – Assessing Oneself as a Potential Entrepreneur FUTURE ENTREPRENEURS MAY BE

GUIDED BY THE FF:CHECKLIST……..1. Do you enjoy challenging task?2. Is your academic standing something to

be proud of?3. Did you receive good grades for your

school behavior?4. Do you often feel that you can do a

better job than others?

5. Are you active in community affairs?

6. Can you make good decisions?7. Are you willing to change your negative habits?

8. Did you have any experience in selling?

9. Do you have relatives or associates who are in business?

LESSON 4- Problems Faced By Entrepreneurs1. Financial problems

- lifeblood of business is money- it is a must to have your own money

before staring a business

2. Managerial problems- lack of management skills of the

entrepreneur- should think well before giving

instructions to avoid poor management

3. Marketing problems- some of these are problems with

competitors, taxes & advertising costs

4. Over-regulation & taxes- amount of income for reinvestment is

reduced by corporate income taxes

5. Problems relating to facilities- production & sales are solved by

problems of power supply, transportation & communication

Creativity & Innovation in solving practical problems faced by

Entrepreneurs Human mind

- considered as the most outstanding machine because it creates & innovates

Creativity - ability to develop an original idea

Innovation - introducing a new idea or method in an

already existing product or concept as a way of enhancing & improving it

The following qualities are possessed by a creative & innovative entrepreneur:

results-oriented aware of people’s needs involve others in decision-making risk-taker is not satisfied with the usual way of

doing things questions & innovates business

practices

LESSON 5 – Management as an important factor in Entrepreneurial Activity MANAGEMENT

- is the process of acquiring & using human, fiscal & material resources effectively to produce goods & services needed by people

FOUR BASIC MANAGERIAL TASKS OF ANENTREPRENEUR

Planning- goal setting, related decisions about what,

who, when & how- has short & long- range plans w/c requires

decisions for future action

Organizing - delegation of work & functions to personnel,

units or departments. - Each personnel or group has well-defined

duties, functions & accountability

Directing- business plan is implemented by the

entrepreneur- he is the director-monitoring the

production of goods & services- guides the work activities- sees to it that standards in the

production are followed Controlling

- this is the evaluation aspects of entrepreneurship

- checking the quality of goods & services

LESSON 6 – Applying management theories to practical situationsCLASSICAL MANAGEMENT THEORIES

A. Classical Scientific- innovated by Frederick Winslow Taylor- it is concerned on how to increase

production efficiency to lower costs, raise profits & increase workers’ pay --- through increased production

- Gantt Chart was invented by Henry L. Gantt

- used for programming production & gave importance to the role of workers

B. Classical Administration- proponent of this theory is Henry Layol- emphasis is more on management

principles than on work methods

BEHAVIORAL MANAGEMENT THEORY- Robert Owens states that quality &

quantity of work are affected by conditions workers

- workers’ morale improved resulting in improved production & reduction of operational cost after many years

CONTINGENCY MANAGEMENT THEORY- solves by analyzing, listing

circumstances prevailing at the time- identifying available causes of action-identifying the consequences of each

cause of action- choosing the bets solution

QUANTITATIVE MANAGEMENT THEORY- recommends the use of mathematical

approaches to management problems

SYSTEM MANAGEMENT THEORY- emphasizes system as a group of

interrelated parts operating as a whole to achieve desired goals and to function according to design.