Entrepreneurship Explained

Entrepreneurship

• Defined as creating or extracting economic value.
• Involves change and usually entails risks beyond normal business startups.
• Can include non-economic values.

The Entrepreneur

• The person behind entrepreneurship possesses unique characteristics and traits.
• Tasks, roles, attributes, and methods are used to generate new wealth and value.
• An entrepreneur takes risks and accepts them.
• An entrepreneur owns a venture.
• Entrepreneurs are managers.
• Entrepreneurs establish new ventures and develop existing ones.
• Entrepreneurs identify opportunities in the market.
• Entrepreneurs process market information.
• Entrepreneurs bring innovation.
• Entrepreneurs provide market efficiency.
• Entrepreneurs maximize investment return.
• Entrepreneurs provide leadership.
• Entrepreneurship requires application to see possibilities and make sound decisions and plans that will increase success.

Entrepreneurial vs. Managerial Mindset

• Entrepreneurial mindsets are creators, while managerial mindsets are custodians.
• Entrepreneurs take risks, while managers seek stability.
• Entrepreneurs are personally responsible, while managers are merely responsible.
• Entrepreneurs achieve, while managers attain targets.
• Entrepreneurs are future-oriented, while managers are now-oriented.
• Entrepreneurs thrive on chaos, while managers thrive on structure.

Myths, Fears, and Excuses in Entrepreneurship

• Entrepreneurs are not necessarily born, nor are they superhuman.
• Entrepreneurs are not always inventors.
• Entrepreneurs do not always possess a definite characteristic profile.
• Entrepreneurs are not necessarily academic or social misfits.
• Entrepreneurs are not always gamblers or risk-takers.
• Luck and money are not the only things needed to become entrepreneurs.
• Entrepreneurs do not always experience a lot of failure.

Advantages of Being an Entrepreneur

• Entrepreneurs have the opportunity to create their own destiny.
• Entrepreneurs have the chance to be financially well-off.
• Entrepreneurs have the chance to know themselves well.
• Entrepreneurs can excel, be recognized, and contribute to society.

Role of Entrepreneurship in Society

• Identifying existing opportunities in the market
• Creating employment opportunities
• Contributing to national income
• Infrastructural Development
• Contributing to Community Development

Types of Entrepreneurs

• Innovative entrepreneurs
• Imitating entrepreneurs
• Fabian entrepreneurs
• Drone entrepreneurs
• Social Entrepreneurs

Wealth Creation

• Investing saved money to grow wealth by choosing investments aligned with financial goals.
• Sufficient wealth creation necessitates choosing the right investment and allowing investments sufficient time to grow.

The Entrepreneurial Mind

• The business mind uses the potentials of new products by creating a market space for them.
• The business mind also organizes sufficient forces and resources to develop, launch, and commercialize new products to maximize market value.
• The creative mind designs a useful product and ensures it is pleasing to see, touch, smell, hear, and taste.

Essential Factors for Opportunity Seeking

• Entrepreneurial Mind Frame sees things positively.
• Entrepreneurial Heart Flame has passion for business.
• Entrepreneurial Gut Game uses intuition without logical or sequential thinking.

Entrepreneurial Mind Frame

• Allows entrepreneurs to see things positively and optimistically.
• Instead of being discouraged by crisis or difficult situations, entrepreneurs use it as inspiration for innovation.

Entrepreneurial Heart Flame

• The commonality between an inventor and an entrepreneur is their surging passion.
• Involves emotional intelligence (EQ), which is manifested in nurturing relationships with customers, employees, and suppliers.

Entrepreneurial Gut Game

• The ability to sense without using the five senses, also known as intuition.
• Enables entrepreneurs to know whether something will work without logical/systematic thinking.

Entrepreneurial Process

• Comprises five steps that need to be followed by an entrepreneur to plan and launch new ventures:
  • Discovery
  • Developing a Business plan
  • Resourcing
  • Managing Company
  • Harvesting

Management

• A process of getting work or tasks done to achieve goals efficiently and effectively.
• Involves planning, organizing, staffing, directing, and controlling.

Features of Management

• Associated with Group Efforts
• Purposeful
• Accomplished Through the Efforts of Others
• Goal-oriented
• Indispensable
• Intangible
• Can Ensure Better Life

Entrepreneurial Options

• Creating a New Business: The popularity among entrepreneurs are varied, where some want others to recognize the new idea or product and the success is theirs.
  • Starting a business from scratch is done when the entrepreneur has a newly invented or developed product/service.
  • When they want to take advantage of an ideal location, product/service, equipment, employees, suppliers, and backers.
  • When they want to avoid problems and undesirable commitments in policices, contracts and procedures.
• Buying an Existing Business: Purchase of assets or the business as a whole.
  • Acquire existing companies due to available staff, facilities, tech, existing markets products, profitable location, goodwill, etc.
  • Selling occurs when there is product decline, poor growth, owner health, relocate, franchise discontinued, seek other employment
  • Buying has pros such as successful operations, proven location, quick profits, existing planning, equipment and known advance funding.
  • Buying has cons such as bad reputation, inventory and products don't conform, useless staff, undesirable clients, hard to change old set precedents, not conform to modern standards, and poor relationships with renters

Franchising

• A marketing system based on a legal agreement where one party (franchisee) is given the right to handle business as an independent owner but must abide by the terms and conditions specified by the other party (franchisor).
  • Franchising pros includes less failure, more location in Urban areas, patronize franchise product, customer loyalty, manage through training, technical assistance easier gained reputation, more profitable, high performing standards.

Small and Medium Enterprises (SMEs) in the Philippines

• 99.1% of businesses are SMEs, while only 0.99% are large enterprises.
• Republic Act No. 9501, or The Magna Carta for Micro, Small and Medium Enterprises (MSMEs) was signed by President Gloria Macapagal Arroyo on May 23, 2008.
• The law amends the 17-year-old R.A. 6977.
• Micro- up to Php 3,000,000 asset size
• Small- Php 3,000,001-15,000,000 asset size
• Medium if it has Php 15,000,0001-100,000,000 asset size,
• Large if it has Php 100,000,001 and above asset size