Entrepreneurship: Definition and Benefits

Entrepreneur

• The word 'entrepreneur' is derived from French, "entre," which means between, and "prendre," which means to take.
• An entrepreneur is a unique individual with the innate ability and extraordinary dedication to establish and manage a business.
• Entrepreneurs innovate and execute their ideas, rarely procrastinating.

Entrepreneurship

• Entrepreneurship is a proactive process of developing a business venture to make a profit.
• It involves seeking market opportunities, establishing or operating a business, and assessing its risks and rewards through close monitoring of operations.
• Entrepreneurs are innovators who are willing to take risks and generate new ideas to create unique and profitable solutions.

Social and Economic Benefits of Entrepreneurship

• Entrepreneurship produces more jobs, leading to an increase in national income.
• It amplifies economic activities in different sectors of society.
• It introduces new and innovative products and services and improves people's living standards.
• Entrepreneurship disperses economic power and creates equality.
• It controls local wealth, balances regional development, and reduces social conflicts and political unrest.
• It leads to economic independence and capital formation.

Common Traits of Entrepreneurs

• Proactive entrepreneurs address issues, problems, and challenges before they arise.
• They act as agents of change, seeing opportunities in complex situations.
• Entrepreneurs are risk-takers who seize opportunities.
• They have a talent for recognizing opportunities and have a sharp eye for them.
• Entrepreneurs are sociable and establish relationships with customers.
• They are networkers and know key people to connect with.
• Balanced entrepreneurs balance analytical and creative thinking.
• They are decisive and always have a decision for business.
• Entrepreneurs are innovative and full of big ideas.

Core Traits of Entrepreneurs

• Leadership is a core trait
• Communication skills is a core trait
• Having experts(specialists) in the business is a core trait
• Strong and effective problem solving skills are considered a core trait.

Five Levels of Entrepreneurial Development

• The self-employed want to do things independently.
• Managers feel the need to step up and ask for assistance.
• Leaders enjoy seeing people flourish, step up, and produce great results.
• Investors look for more opportunities to grow their business.
• True entrepreneurs are fully learned and continue to practice the four-step process of thinking.

Common Small Businesses

• Sari-sari store
• Rice-retailing
• Food cart business
• Printing business
• Buy-and-sell business
• Street food business
• Flea market business
• Online selling business
• Cellphone loading business
• Laundry and dry cleaning business
• Hair styling and makeup business
• Spa, gym, and nail care business
• Video and photography business
• Tutorial business
• Baking business
• Web site development and design/blogging
• Direct selling business
• Car wash and car care business
• Bar, café, and restaurant
• Water station and LPG station

Types of Entrepreneurs

• Innovative Entrepreneurs: They make new things through creative ideas and possess the ability to think newer, better, and more economically.
• Imitating Entrepreneurs: They follow the ideas of other entrepreneurs rather than creating new things.
• Fabian Entrepreneurs: They are skeptical about changes in the organization and only follow after they are satisfied.
• Drone Entrepreneurs: They live on the labor of others and are die-hard conservatives, even if it means suffering losses.
• Social Entrepreneurs: They initiate changes and drive social innovation in fields such as education, health, human rights, environment, and enterprise development.

Four-Step Process of Thinking

• Idealization: Dream and desire to build an ideal environment.
• Visualization: Create plans to make the dream a reality.
• Verbalization: Share ideas with other people.
• Materialization: The vision becomes the vision.

Entrepreneurial Process:

• The Entrepreneurial Process is 4 steps
• Opportunity Spotting Assessment
• Developing a Business Plan
• Capital
• Running the Business

Opportunity Spotting and Assessment (3S)

• Opportunity Spotting is the 3 S's: Screening, Seeking and Seizing.
• The beginning of the process and considered the most difficult.
• Entrepreneurs take note of interesting trends.
• Opportunities are assessed by estimating their opportunity length, the required capitalization, threats, and calculation of real and perceived value.

Developing a Business Plan

• Entrepreneurs need to create plans that are comprehensive and details the marketing, operational, human resource, financial, and strategic direction,
• Developing a plan provide the entrepreneur with their core guide and direction

Determining the capital needed

• Entrepreneurs must calculate the resources needed to establish business.

Running the business

• Resources are alloacted for the new venture.
• Implementation will occur

Market

• A market is a place where two parties can gather to facilitate the exchange of goods and services; the parties involved are usually buyers and sellers.
• Market refers to an arrangement whereby buyers and sellers come in close contact with each other to sell and buy goods.

Need

• Need is a motivating force that compels action for its satisfaction
• Needs range from basic survival needs to cultural, intellectual, and social needs.

Opportunity

• An opportunity is an entrepreneur's business idea that can potentially become a commercial product or service in the future.

Seeking the Opportunity

• Seeking Opportunity is seeking/developing new areas by scanning the firm's environment

Involves the development of new ideas from various sources

• Mircoenvironmental Sources: Physical Infrastructure and Social Capital, Human Capital, Financial Capital
• Macroenvironmental Sources: Social and Cultural trend, Technological Landscape, Economic Factors, Legal and Environment,Regulatory

Macroenvironmental Sources

• STEEPLED:
• Sociocultural- traditions, beliefs, customs, norms and perceptions, lifestyle patterns, career roles, language, and education
• Technological-_innovations of an existing technology, social media, e-commerce, technological infrastructure and advancement
• Economic-income, expenses, resources fiscal & monetary policies, inflation, interest rates, exchange rates, employment, and consumer confidence.
• Environmental- Weather and waste management. The business must be evaluated.
• Political- Tax policy and political rights. Trade regulations, taxation, benefits
• Legal- All or restrictive business
• Ethical- sales practices, accepted accounting, and marketing standards
• Demographic- the characteristics of a specific people

Microenvironmental Sources

• Industry – the latest happenings within a given industry the business's particular
• Government- system or institution that handles affairs
• Customers- the buyers of the business's services and goods
• Employees- the workers who are highly responsible for service and goods production
• Crditors- the funders who extend the business's credit

opportunity for knowledge exploration the that

• New trends
• Opportunities that can possibly affect the business.

Seeking the MICRO Market

• Consumer preferences, interests and perceptions current needs and the desires of the cliental
• Competitors- To aid the growth of product and serivce that allows the ability to stand out from the competition

Unexpected Opportunities from customers:

• Turning unnoticed turns into superstar productss

• Talent of ones talents and hobbies

• Irritants Marketplace such as complaints and delays

• Location that make it able to spot future bissness

Screening the Opportunities

• Screening is cautiously selecting the best opportunity
• It is effective choosing or with careful diligence
• Selection is based on internal reason that an that Entrepreneur would like to put up their Venture external intent adress the target market needs

Elements that are important

• has superior value
• Need and want
• Potential Cash Cow to meet entrepunurial skill

Seizing the Opportunity

• Entrepreneur must move to chosen by all means

• Must exert great dedication

• Innovation which improves exiting driver an economic growth

THREE TYPES OF INNOVATIONS ACCORING TO degree of DISTINCTIVENESS

• Breakthrough Innovations infrequently
• Technological Innovations frequently breakthrough
• Ordinary Innovations driven customers needs

Product or Service Planning and Development Process

• Ideal Stage: Naming the feasible products and/or services that will perfectly suit the opportunity
• Consumer Stage: The develop process a consumer acceptence stange
• DEVELOPMENT
• Test Marketing: Validates the work done from