Entrepreneurship Module 2
I. Introduction
ENTREPRENEURSHIP vs EMPLOYMENT
Entrepreneurship and employment are two different career paths depending on his
or her personal aspirations and work characteristics. It is really up to the person at the end of the
day on what career trail he or she will follow, considering all compelling factors that are
important to him or her. Table 1.1 shows a comprehensive list of the perks and the downsides of
being an entrepreneurs compared to being employed.
Important Career Entrepreneur Employee
Factors
1. Income Income generated passively Income generated
even when the entrepreneur actively (i.e., on
is resting working hours only) no
Opportunity income work = no pay
unlimited, depending on the Income usually fixed
success of the business per month and
Income only earned when the increases every year
business is successful depending on the
employer and the
employee’s
performance
Income earned whether
the business is
successful or
unsuccessful
2. Hiring, Firing, Provide jobs; is the owner of Seeks for a job; is the
Organizational the business and conducts one applying for a job
Setup, and Major the talent selection and is interviewed by
Key Results Areas Fully responsible for serving the company’s hiring
customers, making the officers
business Has the goal of
profitable/sustainable, and satisfying only the
providing employee employer or the direct
satisfaction supervisor
Has the power to disengage Fully dependent on the
nonperforming employees employers
applying the due process performance; is at risk
policy of disengaging of losing his or her job
personnel if the company does
Can venture into expansion not perform well; may
of business such as find it difficult to just
franchising and buying other leave their below par
similar businesses employer if this is their
only source of income
Can only work for the
current employer
exclusively
3. Daily Tasks Performs all necessary Has routine tasks and
variable tasks to establish works on regular or
and manage a start up normal hours
business, which usually takes Follows policies,
most of the entrepreneurs procedures, and
time; spend more hours on memoranda from the
work rather than a regular employer
employee and sometimes
gets no sleep
Prepares policies,
procedures, and memoranda
for the business
4. Leisure Time and Has a flexible schedule and Has limited number of
Vacations can take unlimited number of vacation days imposed
vacation days (applicable by the employer
only if the business has
stabilized already)
5. Taxation Taxed on the net income; Taxed on the gross
Entrepreneurship Module 2
can claim taxable income income; cannot use
deductions for allowable expenses incurred
expenses incurred by the related to the job such
business as food and
transportation
expenses to claim for
deductions from
taxable income
6. Comfort Level at Is comfortable in doing May be comfortable
Work multiple and challenging with routines and
tasks and takes minimal risks; may also
accountability with the risks be comfortable in
and profits of the business; working for the
does not want to be confined company itself
in a box; thinks outside the
box or sometimes thinks
there is no box
CAREERS in ENTREPRENEURSHIP
1. Sari-sari store 11. Hair styling and make up business
2. Rice retailing 12. Spa, gym, and nail care business
3. Food cart business 13. Video and photography business
4. Printing business 14. Tutorial business
5. Buy-and-sell business 15. Baking business
6. Street food business 16. Website development and design/blogging
7. Flea market business or tiangge 17. Direct selling business
8. Online selling business 18. Car wash and Car care business
9. Cellphone loading business 19. Bar, café and restaurant
10.Laundry and dry cleaning business 20. Water station and LPG station
No successful business started huge right away. A business starts with an idea. Once the
business established, the business owner, the entrepreneur, can choose to expand and explore
franchising, intrapreneurship (managing a startup business in an established business), and
acquisition (buying another similar business or a new business). Franchising is a business
arrangement wherein the franchisor, who is the owner of the business, acquires distribution
centers through the franchisees or the affiliated dealers.
OTHER ADDITIONAL BUSINESS OPPORTUNITIES
Dealership – an establishment authorized to buy and sell specific goods.
Direct Selling – selling products directly to consumers in a non-retail environment.
Distributorship – a franchise granted by a manufacturer or a company to market its goods
especially at wholesale in a particular area.
Again, the entrepreneur is not limited to the businesses cited. An entrepreneur can choose
any business that may be embraced by the potential target market. Therefore, career options for
entrepreneurs are limitless and boundless.
II. Strategy
ACTIVITY 1. Identify which among the following descriptions refer to entrepreneurs
and
which refer to employees. On the blanks, write EN for entrepreneur and EM for
employee.
____ 1. Income is earned whether the business is successful or unsuccessful.
____ 2. He or she is usually comfortable with routines and minimal risks.
____ 3. He or she is fully responsible for serving customers, making the business
profitable/sustainable, and providing employee satisfaction.
____ 4. He or she prepares policies, procedures, and memoranda for the business.
____ 5. He or she is fully dependent on the employer's performance. If the company does not
perform well, he or she is at risk of becoming jobless.
____ 6. He or she is comfortable in doing multiple and challenging tasks and takes accountability
with the risks and profits of the business.
____ 7. Income is generated on working hours only.
____ 8. He or she has a flexible schedule and can take an unlimited number of vacation days.
Entrepreneurship Module 2
____ 9. He or she is taxed on the gross income. Expenses incurred related to the job such as food
and transportation expenses cannot be used to claim for deductions from taxable income.
____ 10. He or she has the power to disengage nonperforming employees, applying the due
process policy of disengaging personnel.
ACTIVITY 2. If you are to choose between being an Entrepreneur or being
Employed, what would you choose? Why?
ACTIVITY 3. Pick three (3) businesses that you think you will be most successful
and explain why you say so.
