Prelims

• Human resources, natural resources, capital formation, and technology


  To achieve economic development goals, proper management of the following elements is necessary:
• prestart-up stage; start-up stage; early growth stage; and late growth stage.


  The transition from a new venture to a successful long-term enterprise consists of at least four major stages. The stages are as follows:
• prestart-up stage


  this stage happens when the entrepreneur starts to question the feasibility of an idea, product, or service. He seeks answers to questions regarding potential markets, production, and financing. This is a very important stage that the entrepreneur must consider. If he errs in his evaluation, he will fail before considerable growth is attained.
• early growth stage


  this growth stage follows after establishing feasibility. Activities will be on a small scale, i.e., selling to limited markets with limited resources. If losses occur, it will naturally be limited also. If the enterprise is successful at this stage, the option to move to the next stage can be exercised.
• late growth stage


  is the final stage before the new venture matures into a stable enterprise. This is when management is structured, long-term financing is established and facilities planning are undertaken. This is also the stage where the skills of the entrepreneur are less needed. Instead, the skilled manager begins to

  take over.
• rent


  refers specifically to the price paid per unit of time for the services of a durable good, which, most often, refers to land or buildings.
• Wages

  may be determined on a piece-rate basis,
• salary


  is based on time-rate.
• Interest


  is the compensation paid to owners of invested capital.
• Market share approaches, Total assets approaches


  Small business may be defined by using any of two approaches:
• Microenterprises

  enterprises having total assets of valued at

  ₱ 1.5 million and below.
• small business.


  total assets valued above ₱1.5million to ₱15million
• manufacturing business


  (type of small business) is one involved in the conversion of raw materials into products needed by society.
• Service business 


  (type of small business) are those that provide service in one way or another.
• business services, personal services, repair services, entertainment and recreational, hotels and motels, education services


  Types of Services
• WHOLESALING


  refers to the activities of persons or establishments which sell to retailers and other merchants and to industrial, institutional and commercial users, but who do not sell in large amounts to final consumers.
• RETAILING

  covers all activities involved in the sale of goods and services to the final consumers.
• GENERAL CONTRACTION FIRMS


  are those engage in the construction of buildings whether for private individuals or firms, or for the government. Many of them perform subcontracting jobs for the bigger contractor such as installing electrical facilities and sewerage.
• Independent management, small capital requirement, mostly local operation


  Small business have their own distinctive characteristics. They are the following:
• Providers of economic opportunities for entrepreneurs, Providers of products and services to consumers, Suppliers of products and services to other business, Distributors of products and services of other business, Supporters of government, Providers of employment


  Small Business play an important role in the development of our economy:
• ETHICS


  IS THE STUDY OF MORAL OBLIGATIONS INVOLVING THE DISTINCTION BETWEEN RIGHT AND WRONG.
• BUSINESS ETHICS


  REFERS TO THE RULES ABOUT HOW ENTREPRENEURS OUGHT TO BEHAVE.
• the public, interests group, business organization, the individual's personal morals and values


  The ethical behavior required of entrepreneurs is determined by the following:
• ethical behavior


  is the application of moral principles in a given situation. It means to behave according to the moral standards set by the society which we live in.
• CODE OF ETHICS


  IS A FORMAL DOCUMENT INDICATING THE ENTREPRENEURSHIP'S ADAPTED PRINCIPLES OF APPROPRIATE BEHAVIOR.
• Punishment


  could take the form of dismissal, demotion, suspension, or reprimand.
• Rewards


  may be given in the form of cash gifts, promotion, or citation.
• 1. it should be refer to specific unethical practice 2. it should be supported by management


  A code of ethics can be made effective if the following requirements are met:
• Between the company and: the customers, it's personnel and employees, it's business associates, the investor and financial community


  Entrepreneurships face ethical questions on a daily basis. These spring from the following relationships;
• The right to be safe, the right to be informed, the right to choose, the right to be heard


  Consumer Rights
• workplace safety, quality of life issues, avoid discrimination, prevent sexual harassment


  Personnel and Employees "rights":
• environment, personality of the entrepreneur


  Factors that determine success or failure of entrepreneurship:
• Personality


  refers to the pattern of characteristics that distinguishes one person from another. It includes the person’s traits, values, motives, genetic blueprints, attitudes, emotional reactivity, abilities, self-image, intelligence, and visible behavior.
• realistic, investigative, artistic, social, enterprising, conventional


  Holland’s 6 personality types:
• Realistic type


  (type of personality)This individual prefers activities involving aggressive behavior and physical exertion requiring skill, strength, and coordination.
• Investigative type


  (type of personality) This individual prefers analytical, curious, methodological, and precise.
• Artistic Type


  (type of personality) This person is expressive, noncomforming, original and introspective
• Social type


  (type of personality) This person enjoys working with and helping others and purposefully avoids systematic activities involving tools and machinery.
• Enterprising type


  (type of personality) This person enjoys verbal activites to influence others and to attain power and status.
• Conventional type


  (type of personality) This person enjoys the systematic manipulation of data filing of records or reproducing materials.