Entrepreneurial Management Concepts

Entrepreneurial Management

• It is taking entrepreneurial knowledge and using it to increase the effectiveness of new business ventures and small- to medium-sized businesses.

Entrepreneur

• An entrepreneur is an individual who creates a new business.
• Entrepreneurs bear most of the risks and enjoy most of the rewards.
• The entrepreneur is commonly seen as an innovator and a source of new ideas, goods, services, and business/or procedures.

Groups of Entrepreneurs

• Founders: People who create or start new businesses.
• Franchise: A prepacked business bought, rented, or leased from a franchisor.
• Buyers: People who purchase an existing business.
• Heir: A person who becomes an owner through inheriting or being given a stake in a family business.

Key Idea: Planning and Action

• Planning plus Action equals Success.
• A plan without action is futile.
• Actions without plans are usually wasted.
• Success comes from having the right sort of plan.

Key Idea: Help Helps

• Successful entrepreneurs learn from other entrepreneurs.
• They also learn from experts in their chosen fields and potential customers.
• They learn even from their professors.
• Help succeeds bigger and more often.

Key Idea: Do Well

• Do good because you will depend on partners, investors, customers, and neighbors.
• Trying to do well in business leads to feeling better about the business and life, and those around get that benefit too.

Entrepreneurs and Firm Growth Strategies

• Lifestyle or part-time firms: Small businesses intended to provide partial or subsistence financial support for the owner's existing lifestyle, with operations that fit the owner's schedule.
• Traditional Small Business: A firm to provide a living to the owner and operate on a schedule consistent with other firms in the industry and market.
• High-performing Small Business: Intended to provide the owner with a high income through sales or profits exceeding those of traditional small businesses.
• High-growth Venture: A firm started with the intent of eventually going public, following the growth and operations pattern of a large business.

Motivations to Become an Entrepreneur

• The universal entrepreneurial reasons are flexibility, a livable income, and personal growth.
• Building wealth and creating products is another reward.
• Other social rewards can be respect or admiration from others, or wielding power.
• Family rewards are an motivation, like continuing a family tradition in business.

Popular Rewards for Small Business Owners

• Growth Rewards involve what people get from facing and beating challenges.
• Income Rewards include the money made by owning one's own business.
• Flexibility Rewards comprise the ability of business owners to structure life in the way that suits their needs best.

Universally Mentioned Rewards

• Flexibility: "To have greater flexibility for my personal and family life."
• Income: "To give myself, my spouse, and children financial security."
• Growth: "To continue to grow and learn as a person."

Occasionally Mentioned Reward

• Wealth: "To have a chance to build great wealth or a very high income."
• Product: "To develop an idea for a product."

Rarely Mentioned Rewards

• Recognition: "To achieve something and get recognition."
• Admiration: "To be respected by my friends."
• Power: "To lead and motivate others."
• Family: "To continue a family tradition."

Myths About Small Business

• There's not enough financing, but small business experts say that is a myth based on urban legends.
• You cannot start businesses during a recession.
• To make profits, you need to make something.
• If you fail, you can never try again.
• Students (or moms or some other group) don't have the skills to start a business.
• Myths like these hold back many potential entrepreneurs
• Awareness of the truth motivates tough work of starting an enterprise.
• When encounter someone discouraging, check facts and do research.

Getting Started: Entry Competencies

• To start a business, boundary, resources, intention, and exchange need to come together in the BRIE model.
• Boundary: Something that sets a firm up and sets it off from the buying, selling, or bartering activity.
• Resources: Something that sets up and sets off a firm from the buying or selling or bartering, resources do.
• Intention: The desire to start a business is the most frequently occurring BRIE Model element.
• Exchange: Moving resources, goods, or services to others in exchange for money or other resources.

Small Business and Economy

• Small business is highly vital to a community and an area's economy.
• Contribute to the economy through new jobs, innovations, and the basic items (jobs, taxes, product or services).
• MSMEs generated a total of 5,510,760 jobs, or 62.4% of the country's total employment in the study by the Department of Trade and Industry in 2019.

Innovations

• Small business is a key element of every nation's economy because it makes possible the new.
• Small business owners are freer of the judgment and social constraints of workers elsewhere.
• Austrian economist Joseph Schumpeter labeled this process creative destruction, which refers to newly created goods, services, or firms can injure existing ones.

Opportunities

• Business owners get opportunities to improve their life, wealth, and rise in the economy of the Philippines.
• Small businesses provide communities with goods and services.
• Consider a neighborhood without a grocery store or a pharmacy; without these things, the town would not be a real community.
• A small grocery, drugstore, hardware store, or gas station might be able to use its low overhead and local capacity to adapt to local needs.
• This can create opportunities to sell items like fishing supplies to appeal to tourist anglers and generate profits where larger chain stores could not.
• A city, municipality, or even barangay requires businesses to be able to stand alone

Aspects of Global Entrepreneurship

• Factor-Driven Economy: A nation where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining, or oil production.
• Efficiency-Driven Economy: A nation where industrialization is becoming the major force providing jobs, revenues, and taxes, where minimizing cost while maximizing productivity is a goal.
• Innovation-Driven Economy: An economy where the major forces for jobs, revenues, and taxes come from high-value-added production based on new ideas and technologies and from professional services based on higher education.

Types of Entrepreneurship

• Opportunity-Driven Entrepreneurship: Creating a firm to improve one's income or a product or service.
• Necessity-Driven Entrepreneurs: Creating a firm as an alternative to unemployment.

E-Commerce

• A popular approach that has grown dramatically this past decade is using E-commerce, particularly like Ebay and Amazon, or Lazada and Shopee.
• E-commerce is the general term for conducting business on the internet.
• The formal title is Virtual Instant Global Entrepreneurship (VIGE), which uses internet to quickly create business with a worldwide reach.

The Entrepreneurial Way of Overcoming Challenge

• Entrepreneurs' stories usually tell us about challenges faced and overcome.
• There are some strategies that are used from story to story.
• If you don't succeed the first time, try again. This is the strategy of perseverance or the behavior of continued effort to achieve a goal.
• Scale back.
• When you have an idea but can't get the resources to get it started, scale it back lower.
• Bird in the hand means instead of planning a firm and then looking for resources, you start with the resources you already have and contemplate the best use for them.
• Pivot: Start the business in a way you can and look for better opportunities as you go along.
• Take it on the road- sometimes the place where you live is not the best market or your products or services.
• Harness the wisdom of crowds to get opinions or ideas through collective involvement of others, asking for help on Facebook for ideas, advice, opinions, or donations.
• Find the best idea for you thinking through your capabilities, prospects, and passions, then plan for action to make it happen.

End of Lecture

• Covered key ideas and myths about small business
• Surveyed the work of small business founders that stayed small and those that grew larger.
• Most of society benefits through new jobs, new ideas and the new opportunities created for individuals, communities, and the economy when small businesses are created.
• Helping people who have the intention to start a business take the steps to take the steps to get it done is the goal of the course.

Key topics:

• ROI & its significance
• Elements of ROI
• Calculating ROI
• Challenges
• Time - the missing dimension
• Summary

Chapter 1: Mindset

• "If you really want to do something, you'll find a way. If you don't, you'll find an excuse." - Jim Rohn

Mindset

• To determine whether you're mentally ready for the work ahead, establishing the proper mindset is your first task.

Fixed Mindset vs Growth Mindset

• Fixed Mindset:
  • "I give up easily"
  • "My potential is predetermined"
  • "Failure is the limit of my abilities"
  • "My Intelligence if static"
  • "I avoid challenges"
  • "I stick to what I know"
  • "Feedback and Criticism is personal"
  • "I will never improve"
  • "I am either good at it or I am not"
  • "There is no point in trying it"
• Growth Mindset:
  • "I like to try new things"
  • "I can learn to do what I"
  • "Failures offer opportunity growth"
  • "My intelligence can "
  • "I embrace challenges"
  • "I learn from feed"
  • "I keep trying and never"
  • "I am inspired by people's s"
  • "My mis!"

CEO and Architect

• Deciding to open your own design practice requires a fundamental shift in attitude toward the making of architecture.
• You're a business owner first.
• To survive in the long term a business' expenses must be lower than its assets.
• You must prioritize learning to be a businessperson over being an architect, which is crucial when you're staking your claim and building your reputation.

Amateur versus Professional

• An important distinction exists between practicing your craft as an amateur and doing it as a professional.
• The amateur isn't committed to long-term success, only short-term gains, because nothing is at stake.
• Professionals are invested in success and have a long-term plan for making it happen.
• The professional realizes that every action has real, legal implications.
• Your professional reputation is built on each of these actions.
• Professionals are unflinching and decisive when it comes to following the rules.
• You cannot afford to do favors or look the other way because your professional reputation is at stake.
• Obligations exists and are upheld when you are professional.
• Pros have a duty to serve and protect the customers
• Being a pro also requires you put in the necessary time and effort to run your business professionally.