CHAPTER 1 UNDERSTANDING ENTREPRENEURSHIP

*Reasons why there is no universally accepted

definition of entrepreneurship:
1. There are different views and theories …
2. Scholars are influenced by their own personal
beliefs.
3. The entrepreneurial models are
predominantly influenced by the prevailing
economic situations during specific periods in
history.
4. The frameworks and methodologies of
researches are highly dependent on the
theories and the contexts of the research
endeavors.

ENTREPRENEUR – The term originates

form the French word entreprendre
which means “to undertake.”
-defined by American Heritage Desk
dictionary as a person who organizes,
operates, and assumes the risk of
business ventures.
-defined as a person who strongly
advocates and correctly practices the
concepts and principles of
entrepreneurship in operating and
managing the self-owned business
ventures (which is also called
enterprise).
ENTREPRENEURSHIP – defined as the
art of observing correct practices in
managing and operating a self-
owned wealth-creating business
enterprise by providing goods and
services that are valuable to the
customers.
 SMALL BUSINESS AND
ORDINARY SMALL BUSINESS
SMALL BUSINESS – refers to a business or
enterprise that correctly adopts and
practices the principles of
entrepreneurship. It is owned by one
person with a limited workforce of not
more than 20 persons.
-Also includes the small and
medium enterprises (SMEs) that
have been strongly promoted by
both government and non-
government (NGOs) in their desire
to improve the lives of the Filipino
people through entrepreneurship.
ORDINARY SMALL BUSINESS –
pertains to a business enterprise
managed and operated by an
owner who is not an advocate of
and do not practice the concepts
and principles of entrepreneurship.
TRUE or FALSE. Answer TRUE if the statement
is correct. Otherwise answer FALSE and
state your reasons briefly.
_______ 1. An entrepreneur perceives
entrepreneurship as the mere opening and
managing of a small business.
_______2. Knowing all the entrepreneurial
concepts will assure a person of becoming
a successful entrepreneur.
_______3. Having a degree in
entrepreneurship will assure a person that
his/her business endeavour will succeed.
_______4. Since there is now a degree
program in higher education leading
toward entrepreneurship, the academe
has already adopted a universal definition
of the term entrepreneurship.
_______5. Entrepreneurship originates
from the Greek work entreprendre
which means to undertake a business.
_______6. An entrepreneur can be a
juridical person or those entities that
have been created by the operation of
law.
_______7. The distinguishing mark that
differentiates an entrepreneur from an
owner of an ordinary small business is
the commitment of the entrepreneur to
entrepreneurial concepts and
principles.
_______8. In layman’s term an
entrepreneur is a person who opens
his/her own business, assumes
responsibility over the operation and
management, and assumes the risk of
the business.
_______9. Most owners of ordinary small
businesses open their businesses
because of the profitability aspect of
the operations.
_______10. All businesspeople are
entrepreneurs.