The Entrepreneurial Mindset PDF

THE ENTREPRENEURIAL MINDSET Entrepreneurshi p Is an art of observing correct practices in managing and operating a self- owned wealth creating business enterprise by providing goods and services that are valuable to the customers  What is an Entrepreneur? Entreprende- which means to undertake It...

THE ENTREPRENEURIAL MINDSET Entrepreneurshi p Is an art of observing correct practices in managing and operating a self- owned wealth creating business enterprise by providing goods and services that are valuable to the customers  What is an Entrepreneur? Entreprende- which means to undertake It is a reference to individuals who have initiated the establishment of a business enterprise. What is an Entrepreneur? Joseph Schumpeter emphasized the role of entrepreneurs in the process of economic transformation Entrepreneurs introduce to the market, innovations in the form of new products, new markets and new organizations Mega Entrepreneurs Individuals who have generated substantial value and profits from innovations in a very short period of time and who are willing to take risks using enormous amount of capital contributed much to the economic progress of a developed country. Micro Entrepreneurs they also initiate business enterprises, the value-added and profits they make are limited. They introduce innovations in the form of changes in their production and distribution processes but their contribution are minimal and attract few competitors and imitators. They engage in micro and small businesses as an alternative to formal employment. Entrepreneurial Process: 1. Discovery 2. Development of Concept 3. Organizing Resources 4. Implementation 5. Reaping the Returns DISCOVERY refers to the recognition of a business idea or detection of opportunities that could make money for the entrepreneur.  Development of a Business Concept It suggest the preparation of business plan which must spell out the various activities that must be done from the production to the distribution of the product or service. The business plan describes how the enterprise is going to be organized and managed and how the business is going to be financed. Organizing Resources describes the process of identifying, sourcing and financing human, non human and other resources needed for the conduct of business. Implementation The process of carrying out the business plan. It covers a number of activities, including the management of human, physical, technological and financial resources of the business. Reaping the Returns Pertains to strategies related to the expansion of the business firm. It also covers mechanisms for addressing conditions in the business environment that may affect the future of the firm. Peter Drucker in his book Innovation and Entrepreneurship emphasized the “discipline” in the process of starting and managing a business. Characteris tics of an Entreprene ur  Characteristics of an Entrepreneur Education entrepreneurs need formal education to seize the opportuniites presented by inventions, innovations and other technological developments. The degree of human resource qualiifications will depend on the type of business ventures that are being established by entrepreneurs Characteristics of an Entrepreneur Employment Status experience/s in the field of business by being employed previously is an important factor for you to succeed. Characteristics of an Entrepreneur Entrepreneur’s Wealth refers to the amount of money available for an entrepreneur to start or put up a business. The bigger the financial resources, the better Characteristics of an Entrepreneur Risk Appetite risks are associated with uncertainties in business operation. These uncertainties can threaten the survival and stability of a business enterprise. Entreprneurial Intentions Are planned actions formulated in the minds of individuals which are geared toward the objectives of establishing a business venture from potential business opportunities. 2 Factors that influence the formation of Entrepreneurial Intentions: 1. INTERNAL FACTORS A. Demographic refer to gender, marital status, age and employment status of individuals. B. Traits some entrepreneurial traits that a person should possess are: determination, self-confidence, enthusiasm, creative, innovative and others.  2 Factors that influence the formation of Entrepreneurial Intentions: 1. INTERNAL FACTORS C. Psychological Traits these include need for achievement, risk appetite, acceptance for vagueness (lack of preciseness),self-efficacy (belief in one’s ability) and goal setting. D. Individual Skills Know how supervisory and managerial skills acquired from work experience, trainings can also predict entrepreneurial intentions.  2 Factors that influence the formation of Entrepreneurial Intentions: 2. EXTERNAL FACTORS A. Environment Support this refers to government support such as training given by goverment institutions, financial support both from the public and private sectors.  2 Factors that influence the formation of Entrepreneurial Intentions: 2. EXTERNAL FACTORS B. Environmental influence Includes regulatory structure, patents, protection of property rights and competitive environment, regulation on labeling, property disclosure, taxing business, polluting the environment, protetction of intellectual property rights, respect for contracts.  Types of Mental Processes 1. Critical Thinking Refers to the systematic and rational way of providing answer to questions. It follows step in responding the inquiry. 2. Creative thinking refers to the thought processes that bring about the discovery of new ideas, developing new products and new systems in business operations. Types of Mental Processes 3. Analytical Thinking One of the best tools to help the Entrepreneurs anlayze the situations of the business is the SWOT analysis. 4. Strategic Thinking Involves thought processes that assess a current situation which can be useful in the formulation of plans for the future. Types of Mental Processes 5. Cognitive Adaptability Refer to the ability of individuals to be involved in the process of producing several ways of decision-making based on the identification and management of changes in the environment. It requires qualities of flexibility, dynamism, and self control on the part of the entrepreneur. RISKS can be described as uncertain situations and developments that can increase the probability of loss or business failure. A.Internal Risks Pertain to dangers coming from the management of resources of the business that may imperil its operations. Ex. Liquidity, financial risks, failure to hire the best talents and failure to innovate. RISKS can be described as uncertain situations and developments that can increase the probability of loss or business failure. External Risks threats coming from various environments outside the business firm. Ex. Slowdown of economic growth, increased competition, price increase of materials, regulatory risks, natural calamities and political risks. RISK MANAGEMENT- is the process of identifying, assessing and responding to these risks. Internal Risks: Wise use of resources Install mechanisms to maintain the quality of the products and services Prepare a long-term plan Retain the best talents Make research for product development RISK MANAGEMENT- is the process of identifying, assessing and responding to these risks. External Risks: Reviews of their strategic plans in prepartion for the impacts of global and national socio- economic and political developments on the company.