Entrepreneurship: Concepts and Mindset

• Motivation is not enough, attitude and routine changes improve success.

Entrepreneurship: Overview and Concepts

• An entrepreneur creates unique ideas that can be used to start a business
• Entrepreneurs are capable of thinking about opportunities
• Entrepreneurship converts ideas into business ventures
• Entrepreneurship develops business skills
• Entrepreneurship enhances knowledge of how to operate a business
• Entrepreneurship demonstrates how to manage a business
• Entrepreneurship encourages learners to be employers, not employees
• Entrepreneurship can be a means of living
• Entrepreneurship changes personal and career attitudes, such as communication, problem-solving, collaboration, motivation, creativity, and teamwork
• Entrepreneurship makes people proactive: ready/prepared to face challenges
• Entrepreneurship makes people collaborative: working with people to make a business successful
• Key to economic driving
• Increases the level of knowledge in one's life
• Enables alternative career paths
• Common competencies include Specific Goal Setting, Self-efficacy, Need for Achievement, Ambition, Willingness to Learn, Adaptability and Flexibility, Willingness to Take Risk and Intrapersonal Skills
• Competencies for entrepreneurial success include Integrity, Conceptual Thinking, and Strategic Thinking
• Integrity is knowing what is good and right, acting in the best interest of everyone, and not acting without thinking
• Conceptual Thinking reviews outcome projects to understand where problems occur
• Strategic Thinking finds ways to do things faster at less cost
• Decisiveness switches to an alternative strategy to reach a goal, generating new ideas and innovative solutions
• Customer Relations Service knows what their customer needs to satisfy them and maintain a long-term relationship
• Other competencies include risk-taking, collaboration, commercial aptitude, optimism, and being people-centered

The Business Plan

• Business plans are written descriptions of the business that will be established in the future
• Business plans can be written before or during the few years of enterprise
• Business plans guide entrepreneurs on the most beneficial strategies for the enterprise
• Business plans provide the blueprint of your business
• Business plans test the feasibility of an idea
• Business plans give a new business the best chance of success
• A good business plan is realistic, accounts for the feasibility of implementation, is specific, and followed through
• Funding is secured by business plans
• Business plans make planning more effective
• Business plans attract investors
• Identifying customer needs is a method of determining what a client needs from a product
• Attractive Quality refers to having a neat and feasible appearance
• One-dimensional Quality refers to what customers expect
• Must-be Quality refers to cleanliness and organization
• Indifferent Quality refers to things unnecessary
• Reverse Quality is satisfactory for some, not for others

Identifying Customer Needs

• Begin by gathering raw data: determine what information you need, what information is available, and what information will be useful.
• The next steps are interpreting, organizing, and reflecting on the data.
• In gathering raw data, students may use interviews to identify needs
• Data is interpreted through analysis, with non-essential data omitted
• Data is organized by categorization based on its nature
• The process is reflected on to ensure it is sufficient for the business plan

Opportunity Spotting

• The 3 S's of Opportunity spotting are Seeking, Screening and Seizing
• Opportunity seeking equips entrepreneurs with a spirit of inquiry to decide which products or services are the most needed in the marketplace

Sources of Opportunities

• External/Macro environmental sources help shape the community, but can also present threats to the company
• Macroenvironmental sources include demographic, economic, socio-cultural, technological, ecological, political, and legal factors

Macroenvironmental Factors

• Demographic: can be seen in the nearby residents are mostly from 15-50 age group and are filipino
• Economic: reflected in that nearby residents are mostly employed with Php40,000-50,000 monthly income
• Socio-cultural: is seen with teenagers who perfer milk tea
• Technological: Shops are tied to online with online delivery service and online ordering
• Ecological: City ordinances banning the use of plastic bags can be seen with ecological factors
• Political and Legal: are seen with the need to register to the DTI and have the city provide business permits
• Internal/Microenvironmental sources pertain to factors controlled by management, affecting individuals and businesses.
• Five microenvironmental sources of opportunities are customers, suppliers, resellers, competitors, and the general public

Additional Sources

• Industry and Market Disparities: involve regulations, deregulations, and changes in supply chains
• Consumer Preferences and Interests: tastes of individuals and how outdated products plus consumer's changing perceptions kill sales.
• Technological Discoveries and Advancements: can be a source of highly innovative opportunities
• One should consider what means are adopted by shoppers when purchasing products and devise ways to stay relevant in the digital age
• Opportunity screening lays out and evaluates opportunities to transform a business idea into reality.
• Opportunity screening assesses a business idea's capability of sales growth and promising financial performance

Opportunity Evaluation

• Identifying resources
• Analyzing capabilities
• Evaluating competitive advantage
• Developing strategies
• Reviewing feedback
• Opportunities are evaluated to ensure remarkable customer value, address compelling needs, be a potential cash cow, and correspond with the entrepreneur's skills/resources/risk appetite

Opportunity Screening

• Transforming a business opportunity into a reality and addressing market needs and demands.
• Opportunity screening involves Stepping out of one's comfort zone, making the decisions count, and networking with business minded others
• The business position statement briefly describes a product or service, answers a compelling need, and is often used in marketing activities.
• The value proposition is broader, a direct output of business strategy, a bigger picture, and includes all core benefits
• A concise and straightforward statement keeps it short
• Making it unique and remarkable is crafting it uniquely
• Business position statements should stick to core values and reflect the values ​​of the enterprise itself
• They should show how the business is different from their other competitors and should use the factors that separates them from the competition
• Insights are shared if a need to reschedule arises
• The purpose is to understand customers’ needs, minimize failure risk, and forecast trends

Market Research

• Addresses changes in consumer tastes and provides an overview of economic conditions.

Key Questions for Market Research

• Why conduct market research?
• What will the market research cover?
• Which part of the market will be researched?
• Who among the members of the identified market will be researched?
• When will the market research be conducted?
• Where will the market research be conducted?
• How will the market research be carried out?
• Advertising research predicts or traces the effectiveness of existing or related product/service advertisements
• Commercial eye tracking analyzes visual behavior and trends

Types of Market Research

• Customer Satisfaction Research: gathers feedback from customers who purchased the product to gauge satisfaction
• Distribution Channel Audit: assesses distributor/retailer purchase ordering patterns and product levels
• Internet Strategic Intelligence: uses online forums to give honest experience reviews.
• Text Marketing: involves releasing small, product quantities to gauge market acceptance.
• The features that products highlight help differentiate them from others

Reasons For Use

• Clear Differentiation
• Improved Revenue
• Customers are loyal and willing to keep coming back
• Easy to sale products
• Can allow for Sales Strategy
• USP (Unique Selling Proposition) is a marketing strategy to stand out from competitors and attract customers.
• Unique statements highlight products/services distinct characteristics compared to competitors.

Value Proposition

• It has unique characteristics from other products, such as Starbucks which has Premium Coffee
• Help with customer empathy
• It can motivate clients to try all kinds of products
• Determine why customer do a repeated purchase for the product
• Gives direction, creates focus, breeds confidence, gives customer understanding, engagement, and a focus on value clarity.

Steps of Value Proposition

• Value Creation
• Value Appropriation
• Value Consumption
• Value Renewal
• Value Transfer