The Entrepreneurial Mindset PDF

GEC | BICOL UNIVERSITY Polangui 20.1 THE ENTREPRENEURIAL MINDSET JHONNY PET P. TOPASI, LPT, CSE, MAIE Course I nstructor Disclaimer: This instructional material includes designs created using Canva, which is subject to the respective terms of use and intellectual property of their creators. GEC 20.1 PREFACE This learner's material is specially designed to provide you with the foundations for developing an entrepreneurial mindset. It offers pathways to cooperative, collaborative, and independent learning, focusing on key concepts and competencies that will enhance your critical thinking skills and other essential 21st-century skills. The entrepreneurial mind encompasses a set of attitudes, behaviors, and skills that are crucial for students aspiring to become young entrepreneurs. It represents a mindset characterized by creativity, resilience, adaptability, and a proactive problem- solving approach. Developing an entrepreneurial mind is of paramount importance for students as it equips them with the tools needed to navigate the ever-changing landscape of the business world. By fostering an entrepreneurial mindset, students gain the ability to identify opportunities, take calculated risks, and turn innovative ideas into successful ventures. Moreover, cultivating an entrepreneurial mind nurtures critical thinking, encourages resourcefulness, and fosters a growth-oriented mindset. These qualities not only benefit students in their entrepreneurial pursuits but also prepare them to thrive in various professional and personal endeavors. Throughout this learning module, we will engage into the history of entrepreneurship, analyzing significant trends, and studying successful entrepreneurial ventures that will contribute to our entrepreneurial success, including opportunity identification, risk assessment, innovative thinking, and effective decision- making. Specifically, this material provides an in-depth exploration of the entrepreneurial mindset, enabling you to develop a keen understanding of the attitudes and behaviors that foster entrepreneurial thinking. We will delve into topics such as creativity, resilience, adaptability, and a willingness to embrace failure as a learning opportunity. It is hope that this material will empower you to embrace the entrepreneurial mindset, cultivate your entrepreneurial potential, and navigate the dynamic landscape of entrepreneurship successfully. GEC 20.1 - The Entrepreneurial Mind GEC 20.1 TABLE OF CONTENTS Preface i MODULE 1: Entrepreneurial Ethos and 1 Environment 1.Entrepreneurship and the Entrepreneur 3 2.The Entrepreneur: The Individual that 5 Steers 3.The Role of an Entrepreneur 6 4.The Myths, Fears and Excuses of People 8 who are not Entrepreneurs 5.Entrepreneurial Qualities 12 6.Developing Yourself for Entrepreneurship 13 7.The Born or Made Argument 14 MODULE 2: The Power of Persistence 22 1.Success Story of Local and Foreign 24 Entrepreneurs 2.Entrepreneurship as a Habit 27 3.How to Start with Ideas 28 4.Four Pathways to Opportunity Identification 29 MODULE 3: The Power to Choose and The 37 Design Thinking 1.Influence 44 2.React vs. Respond 45 3.Locus of Control 47 4.Vision: The Power to Choose 49 5.Mindset Defined 51 MODULE 4: Recognizing Opportunities, 59 Customers, and Market 1.In Search of Opportunity 61 2.Problems are Opportunities 63 3.Simple Solutions 64 GEC 20.1 1. 2. 3. 66 4.Opportunistic Adaptation 5.Prior Work Experience 67 6.Enthusiastic and Somewhat Inexperienced 7.Inventor as Entrepreneur 69 8.Market and Customers 70 9.Type of Costumers 71 10.Costumer Personas and Journey Map 78 MODULE 5: Ideas Into Action and Financing 81 1.Barriers to Entry 82 2.Lack of Money 3.Pricing Strategies 83 4.Calculating Price 85 5.Boostrapping 86 6.Proof of Concept 89 7.Lack of Time 8.Lack of Experience 90 9.Fear 92 10.Re-inventing Work 94 11.Revenue Model and It’s Different Types 96 12.Equity Financing 98 13.Financial Statements 108 MODULE 6: Pursuit of Knowledge 111 1.Learning Defined 2.The “aha” Moment 112 3.Planning for success 4.A Word of Caution 5.Knowledge as a Barrier 113 6.Learning Redefined 125 MODULE 7: Building Your Brand and Building Business Model 128 1.Brand Defined 129 2.Defining Your Brand 130 3.Communicating Your Brand 1. GEC 20.1 2. 3. 4.Building Your Brand 132 5.Confidence 137 6.What is Business Model? 139 7.The Business Model Canvass 144 MODULE 8: Creating Community With 165 Legal Considertaions on Intellectual Property 167 1.The Power of Network 2.Community Defined 168 3.The Value of Network 169 4.Ways in Doing Networking to Entrepreneurs 5.Who is Our Network? 170 6.Crossing the Chasm 171 7.Building a Success Network 172 8.Start Networking 178 9.Legal Considerations 185 10.Legal Mistakes Made by Startups 188 11.Types of IP and how to avoid mistakes 191 12.Hiring Employees GEC 20.1 MODULE 1: THE ENTREPRENUERIAL ETHOS AND ENVIRONMENT GEC 20. 1: The Entrepreneurial Mind Module 1 The Entrepreneurial Ethos and Environment I. Learning Objectives 1.define entrepreneurship; 2.identify the different roles, and entrepreneurial activity of an entrepreneur; and 3.recognize and discover the different myths, fears, and excuses of people who are not an Entrepreneur. II. Content Preparatory Activity In this activity, the students are instructed to have little amount of money that they were ready to take risk of in the Fair/Pair TRADE activity. They should STAND to look for a partner, and COMMUNICATE through a rock, paper, and scissors hand game. Whoever wins in the game will take the money of his/her opponent as a TRADE. III. Unlocking Difficulty 1.Entrepreneurship: The dynamic process of creating incremental wealth through the assumption of major risks in terms of equity, time, and career commitment to provide value for a product or service. 2.Innovation: The act of introducing new and creative ideas or methods that bring value to products, services, or processes. Entrepreneurs often strive to challenge conventional ways of creating innovative solutions to problems. Page No. 2 1. Entrepreneurship: The dynamic process of creating incremental wealth through the assumption of major risks in terms of equity, time, and career commitment to 2. Innovation: provide The act ofvalue for a product introducing new or service. and SANDIGIO, creative ideas Paulinethat or methods Andrea L.. 3.Equity: The ownership interest or value that an individual or group holds in an asset or company. In entrepreneurship, equity refers to the ownership stake that entrepreneurs have in their ventures representing their interest and risk. 4.Resource allocation: The process of distributing and assigning available resources, such as capital, human resources, and materials, to different tasks or areas within an organization. Entrepreneurs need to effectively allocate resources to maximize productivity and minimize costs in their ventures. 5.Persistence: The quality of continuing on a course of action despite challenges, obstacles, or difficulties. Entrepreneurs demonstrate persistence by staying committed to their goals and persevering through adversity. IV. Discussion Entrepreneur and Entrepreneurship “Without entrepreneurs there’s no entrepreneurship, both are connected through innovation” Watch this Video: https://youtu.be/PsCC6DnjhPo?si=kpbhkcbeNybHVLl2 Entrepreneurship Is a dynamic process of creating incremental wealth. This wealth is created by individuals who assume the major risks in terms of equity, time and career commitment of providing value for some product or service. The entrepreneur must somehow infuse value to the product or service. It involves deploying resources and people in a unique way to develop a new organization. Recognize entrepreneur as central to economic theory. Entrepreneurial Process Identify and Determine Develop a Evaluate the Manage the Business the Resources Enterprise Plan Opportunity Required Page No. 2 SANDIGIO, Pauline Andrea L.. Entrepreneur One who possess certain arts and skills of creating new economic enterprises, yet a person who had exceptional insight into society’s needs and was able to fulfill them. Influences society and is influence by it. John Stuart Mill, describes as entrepreneur as a business founder are NOT equal to investors. Why be and Entrepreneur? "Entrepreneurs Make Thing Happen" The Importance of Entrepreneurship a. Rewards of Entrepreneurship Have unlimited Opportunity to make Money Be your own boss Tap your creativity Overcome Challenges and free fulfilled b. Job Creation Entrepreneurship accounts for most new jobs in the country c. Innovation Entrepreneurships are responsible for introducing major proportion of new and innovative products and major proportion of new land, innovative products and services into market. d. Opportunities for diverse People People of diverse background can improve their economic status by becoming entrepreneurs. What are the different Social and Economic Impact of Entrepreneurship? 1. Entrepreneurship creates employment. 2. Entrepreneurship improves the quality of life. 3.Entrepreneurship contributes to more equitable distribution of income and therefore eases social unrest. Page No. 4 1. Entrepreneurship creates employment. SANDIGIO, Pauline Andrea L.. 3. 4.Entrepreneurship utilizes and mobilizes resources to make the country productive. 5.Entrepreneurship brings social benefits through the government. Entrepreneur: The individual that Steers “An Entrepreneur is the manager himself” Individual that Steers 1.takes and accepts risks 2.own ventures 3.are managers 4.establish new ventures and develop existing ones 5.identify opportunities 6.applies expertise 7.provides market efficiency 8.maximizes investment returns 9.provides leadership 10.processes market information 11.brings innovation Managerial Mindset vs Entrepreneurial Mindset Page No. 5 SANDIGIO, Pauline Andrea L.. Managerial Entrepreneurial 1. custodian 1. creator 2. seeks stability 2. takes risks 3. merely responsible 3. personally responsible 4. attains targets 4. achieve 5. thrives on structure 5. thrive on chaos 6. future oriented Roles of an Entrepreneur 1. PERCEIVES OPPORTUNITIES IN THE ENVIRONMENT (RESPOND IN A CONCRETE WAY TO AN OPPORTUNITY IN THE ENVIRONMENT) When a business is up and running, many new opportunities open up with time and demand. It is an entrepreneur’s function to identify these opportunities and use them to the organization’s advantage. 2. TAKES TO MAKE USE OF THESE OPPORTUNITIES An entrepreneur also understands that taking risks for risk-taking’s sake is stupid. They use their experience and knowledge to collect data, estimate the results their decisions will yield, and then take a calculated risk accordingly. They are able to hold their grounds amidst uncertainties. An example is in the field of telecommunications. We all know the benefits which the mobile phone brings. But this technology will not stay long that way. Stiff competition may render it obsolete. There is no guarantee that the investment may be recouped. The entrepreneur takes the risk away by developing the technology and managing the venture to ensure financial returns. Page No. 20 SANDIGIO, Pauline Andrea L.. 3. MOBILIZES CAPITAL FOR A BUSINESS An entrepreneur has limited resources, especially during the startup phase of things. Only an entrepreneur who can manage resources well at this stage can take the business to new heights. Besides managing human capital, an entrepreneur also knows how to manage financial capital. They understand what part of the business will bring the most benefit and then allocate capital to that area accordingly. 4. INTRODUCE INNOVATIONS An entrepreneur understands how important it is to challenge how things are being done and create new ways of doing business. Doing so allows the entrepreneur to become an industry leader and solve people’s problems more efficiently. 5. ORGANIZE AND PRODUCTION Management is an essential function that helps entrepreneurs use human capital for the enterprise’s benefit. Management is the skill of getting things done by working with and through others. It comprises planning, organizing, staffing, controlling, and directing. Organization and management are the main functions of an entrepreneur. It helps to allocate the productive resources in order to minimize losses and reduce cost in production. 6. MAKES DECISIONS Quick, efficient, and informed decision-making is a vital function of an entrepreneur. Entrepreneurs draw on their knowledge, experience, and business acumen to make decisions on various aspects of their enterprise, without sharp decision-making skills, an entrepreneur’s venture can’t achieve its desired objectives. 7. PLANS AHEAD It is the basic and foremost managerial function of an entrepreneur It helps in determining the course of action to be followed to achieve various entrepreneurial objectives. It is decision making in advance, what to do, when to do it, how to do it and who will do a particular task. Page No. 20 SANDIGIO, Pauline Andrea L.. 8. SELLS HIS/ HER PRODUCT AT A PROFIT A good entrepreneur knows how to create a product or a service, but more importantly, they understand how to bring that product or service to the people. That is what marketing is. As an entrepreneur, you should know how to make your product of value to the customers The Myths of People Who Are Not Entrepreneurs Myth 1: Entrepreneurs are Born Actually, they are made not born. Many thinks that the traits entrepreneurs have are inherent characteristics and are genetically determined. On the contrary, entrepreneurship is at form of behavior that can be learned. It is an art and a discipline. Myth 2: Entrepreneurs are Superhuman “Big time" entrepreneurs intimidate people. They perceive the person as a superior being beyond comparison. If you continue to believe in this wrong perception, you are mostly like to develop an inferiority complex. Entrepreneurs may be achievers but they are just like us. They did not just dream but woke up and worked hard to realize that dream. Myth 3: Entrepreneurs are Inventors There may be a lot who invents but there are also lots who innovate. It is not a requirement for one to invent. The entrepreneur just looked for new ways Page No. 20 SANDIGIO, Pauline Andrea L.. to bring value to product. An example for this is Ray Kroc of McDonalds. He did not invent burgers and fries, he just looked for new ways to make his products of new value to the costumers. Myth 4: Entrepreneurs are Inherited Business Traits Many people believe that successful entrepreneurs came from a family line of business-minded people. They see that a person likely to become an entrepreneur if the father or mother or anyone in the family is one. But if you were to on entrepreneurs, you would find out that a lot of them came from families who do not have entrepreneurial background. Myth 5: Entrepreneurs Possess a Definite Characteristic Profile We all know that there is a certain list of characteristics for entrepreneurs. But It is not an imposition that you possess it all since The list, though many in numbers, may still be incomplete and inadequate. The list is there to a guide and not to limit your entrepreneurial potentials and capabilities. Myth 6: The Gender-Difference Myth (Men Are Better Entrepreneurs In entrepreneurship, there is nothing that unwarranted advantage to any gender. Men and women can be both effective entrepreneurs. There is no truth that men should have different dreams from women and vice-versa. In fact, we could now see a significant number of females who are engaged in successful ventures. For Example: Angeline Tham has found a viable solution to Manila’s notoriously heavy traffic: motorbikes. She is the founder and CEO of motorcycle taxi service app Angkas, which has been downloaded more than 1.5 million times and boasts an impeccable, 99.99 percent safety record. Tham is working on expanding Angkas by offering free training to drivers and starting the Philippines’ first motorcycle ambulance. Myth 7: Entrepreneurs are Academic and Social Misfits This myth means that entrepreneurs are not academically and socially effective. This was as the result some entrepreneurs started successful business after dropping out of school or leaving from their former job to be entrepreneurs. One of them is Bill Gates of Microsoft. He proved to the world that we need not be academically qualified to excel in an entrepreneurial venture. Page No. 20 SANDIGIO, Pauline Andrea L.. Myth 9: Luck and Money are the Only Things Needed to be Entrepreneur Though money is an important factor, it is not the only prerequisite to engage in business. There are other factors to be considered such as managerial skills, timing, and even luck. Sometimes, the runaway success of an entrepreneur seems explainable only by luck. ‘How else could Bill Gates have become the world’s richest man?’, is a frequently asked question. Yet luck is not the essential ingredient to business success that we often believe it to be. Bill Gates, specifically, was the beneficiary of tremendously good luck (in addition to being smart and resourceful.) Most entrepreneurs use drive, hard work, and intelligence rather than waiting for their entrepreneurial ‘ship’ to come in. And that is why this myth is far from reality. Myth 10: Entrepreneurs Experience Lot of Failures Yes, this is true. But the difference is that an entrepreneur does not see failures as the end but rather the beginning. The entrepreneur has a different perspective in viewing failure. For them it is the time to review the processes and methods and to clearly outline the next moves so as not to repeat in failing. It is time to take one step backward in order to move two steps forward. The Fears and Excuses of People Who Are Not Entrepreneurs Page No. 20 SANDIGIO, Pauline Andrea L.. Table. Fears and Excuses Risk Excuses “I do not have the money” Financial Risks “I do not know where to get the capital” “I am afraid to lose my house, car properties, etc. “I cannot risk my promotion” Career Risks “I cannot afford not to have salary” “What would happen to me if I don’t have a job” “My kids are still young” Family Risks “My spouse and I are not doing well” “My spouse and I are just getting to know each other” “What would my friends say?” Social Risks “What if nobody buys it?” “How am I supposed to beat the large companies” “I am too young” “I am too old for that” Pyschic Risks “I lack experience” “I cannot handle the pressure” “I cannot do it” Page No. 20 SANDIGIO, Pauline Andrea L.. Activity Time! Form five groups. Each group will pick a risk and will perform a role play that the class should guess based on the excuses and dialogues made during the group presentation. Preparation time is 10 minutes and the presentation is 5 to 7 minutes only. Entrepreneurial Qualities 1. Entrepreneurs Take Moderate Risks Moderate risks activities are those outcomes depends largely on a person’s skill or efforts. 2. Entrepreneurs want to take Responsibility for His/Her Actions The tendency of the entrepreneurs to prefer moderate risks is accompanied by a strong desire to be responsible for outcome or results. 3. Entrepreneurs has Self-confidence Entrepreneur believed that they can do better than what other people or what the circumstances suggest they can do. Self-confidence is the key to entrepreneurship. 4. Entrepreneurs like to take concrete Feedback on His Own Performance Feedback will reflect how well or how poor one is doing the task. Entrepreneurs need feedback whether positive or negative – for improvement. 5. Entrepreneurs are more concerned with Tasks or Problem rather than with people Entrepreneur care primarily about what is supposed to be done and secondarily about the people who will do it; they are task-oriented. Entrepreneur judges people not in terms of their personality or relation to him but in terms of their skills or capacity to contribute to the success of the business. 6. Entrepreneurs is Achievement-Oriented Entrepreneurs are people who accomplish things, they always think of what it is they really want to accomplish in the long run and what today’s activity means in terms of that which they eventually want. 7. Entrepreneur is Creative Entrepreneurs sees something else, something different, something beyond what other see. Page No. 20 SANDIGIO, Pauline Andrea L.. Developing Yourself for Entrepreneurship 1. Read More Books Reading exercises your brain. It improves your concentration and focus, expands your vocabulary, and helps you build better communication skills. It improves your creativity by opening your mind and allowing your brain to explore new ideas. Through reading, you can learn more. 2. Take a Course To increase your skills in general business you can take courses on business strategy, marketing, sale tactics, etc. or focus on something creative if it relates to your business. 3. Work on Time Management There’s always going to be things that need to be done in your business, but focusing on the right ones is where you can work on improving. Start by focusing on big rocks then add in the smaller or less important things that still need to be done but aren’t absolute necessities. 4. Improve Your People Skills Whether you’re managing a team of people or working directly with clients in your solo business, communicating with people is an inevitable part of your job. Working on your people skills will help reduce stress for you and the people you’re working with. 5. Work on Your Sales Skills Every entrepreneur is in the business of selling a product or service. Work on your negotiation and presentation skills to help with your sales pitch. Page No. 20 SANDIGIO, Pauline Andrea L.. 6. Find Your Zen Remember to make time for you. You need to relax and recharge when you’re feeling stressed and tired. Giving yourself time to relax and collect yourself helps you remain calm and better prepares you for deescalating stressful situations. When you’re zen, you’re more agile and better equipped to deal with problems by thinking offensively instead defensively. 7. Focus on Your Health Your body needs nourishment to fuel your busy days so help it out by feeding it healthy foods full of nutrients instead of sugar and processed foods. Stay active by exercising and stretching especially if you’re at a desk or laptop most of the day. Be diligent in giving your body the rest it needs. Make your health a priority. The BORN or MADE Argument: Entrepreneur Activity Time! Before discussing the BORN or MADE argument of entrepreneur, the class will be divided into two. Each will pick one representative to the debate activity. The debate has only 3 rounds (Stand, Follow-up, and Conclusion) Entrepreneur refers to a person who set up his own business with a new idea or concept. S/he is a person who creates something new and assumes the risks and rewards associated with that innovation. Entrepreneurs are not totally born nor made. Entrepreneurs are not like athletes, they don’t need natural inherent body and muscles. An entrepreneur possesses some exceptional qualities that make him distinct from others. These are (FORD-PHILIPS-MEET)- foresight, organizing capability, risk-taking ability, initiative, desire for high achievement, patience, hard-working, innovative power, leadership capacity, intelligence, physical and mental strength, self-confidence, motivating power, eagerness and enthusiasm, education and experience, time-sense, etc. Page No. 20 SANDIGIO, Pauline Andrea L.. From the mentioned qualities, it is clear that most of the entrepreneurial qualities are inborn and cannot be achieved. That is, “entrepreneurs are born, not made”. But now, “entrepreneurs are born, not made” is an old concept. Because, it is no possible to make some entrepreneurs through education, training or providing social and financial assistance to them. Finally, we can say that “entrepreneurs are born as well as made”. V. References Dess, G. G., Lumpkin, G. T., & Eisner, A. B. (2008). Strategic management: Text and cases. McGraw-Hill/Irwin. Retrieved from: https://articlegateway.com/index.php/JABE/article/2023 Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2017). Entrepreneurship. McGraw-Hill Education. Retrieved from: https://www.academia.edu/38249418/Entrepreneurship_10e_201 7_Hisrich_Peters_and_Shepherd_9780078112843_pdf Kuratko, D. F., Covin, J. G., & Hornsby, J. S. (2014). Introduction to entrepreneurship. In Entrepreneurship: Theory, process, and practice (pp. 1-25). Cengage Learning. Retrieved from: https://elearning.uni-foundation.eu/course/246/module-1- entrepreneurship Morris, M. H., Kuratko, D. F., & Covin, J. G. (2010). Corporate entrepreneurship & innovation. Cengage Learning. Retrieved from: https://www.sequelbooks.com/corporate-entrepreneurship- innovation Rae, D. (2007). Entrepreneurship: From opportunity to action. Palgrave Macmillan. Retrieved from: https://www.academia.edu/8630352/Entrepreneurship_from_opp ortunity_to_action Scarborough, N. M., & Cornwall, J. R. (2015). Essentials of entrepreneurship and small business management. Pearson. Retrieved from: https://www.pearson.com/en-us/subject- catalog/p/essentials-of-entrepreneurship-and-small-business- management/2023 Page No. 20 SANDIGIO, Pauline Andrea L.. Page No. 20 GEC 20.1 MODULE 2: THE POWER OF PERSISTENCE GEC 20. 1: The Entrepreneurial Mind Module 2 The Power of Persistence I. Learning Objectives 1.recognize and be inspired by various local and foreign successful entrepreneurs; 2.assess entrepreneurship as a habit; 3.integrate structure strategies of forming ideas; and 4.propose pathways towards the identification of opportunity II. Content Preparatory Activity RACE GUIDELINES: 1.The class will be divided into 4 groups through a count-off. 2.Each team will be provided with a topic under Chapter 2: The Powerof Persistence. 3.Each group shall scour around the campus to find significant concepts under each topic. 4.There will be 4 stations for each group. 5.The first clue will be given inside the classroom. 6.The following clues will be given at every succeeding station. 7.The first group to complete their tasks will be proclaimed the winner. RULES: 1.Running is NOT allowed. 2.Each team must leave and return as a whole. FOR ONLINE SET-UP: The class will still be divided into 4 groups and each question will be answered online. The group who answered most of the questions won the race. Page No. 23 III. Unlocking Difficulty 1.Capital: In the context of entrepreneurship, capital refers to the financial resources or funding that is invested in a business venture to start or expand operations. 2.Market: It is a specific group of potential customers or consumers who are interested in and have the purchasing power to buy a particular product or service. 3.Strategy: In the context of entrepreneurship, strategic planning involves identifying and setting long-term goals, determining the actions required to achieve those goals, and allocating resources effectively. 4.Opportunity Recognition: The process of identifying and realizing potential business opportunities by utilizing the entrepreneurial mindset. 5.Mindset: The established set of attitudes, beliefs, and assumptions that shape a person's thinking, behavior, and perception of the world. In the context of entrepreneurship, it refers to the specific mental framework and approach that entrepreneurs adopt in identifying and pursuing opportunities. IV. Discussion Success Stories of Local Entrepreneurs "Celebrate the success stories of entrepreneurs, for they are the living proof that dreams can become reality with dedication, resilience, and unwavering belief." Henry Sy He started of by selling worn military combat boots to American soldiers. Best known for SM malls. Tony Tan Caktiong Started off as an ice cream shop and added other items. Best known for Jollibee. Was able to break into the international market. Watch this Video: https://youtu.be/m9cMzLQp38Y?si=60PF8lOvWcUJeLb8 about the Success Story of Jollibee Page No. 24 Socorro Ramos Started as a salesgirl in a bookshop. Started with a capital of P200. Best known for National Bookstore John Gokongwei Jr. Peddled goods in Cebu to support his family. Began as trading but then focused on manufacturing. Owned Universal Robina Corporation. His family owns the Robina Land Corporation, Robinsons Supermarkets and Department Stores and Cebu Pacific. Edgard Sia Started as a laundry and photo-developing business. Pioneer in limitless rice meals. Person behind Mang Inasal. Mariano Que Began selling sulfa for a low price Best known for Mercury Drug Cresida Tueres Had a natural talent for cooking Friends and family supported her in developing her shop to a national franchise Best known for Greenwich Pizza Cecilio Kwok Pedro Once the president of Aluminum Container Inc. that went out of business He then produced toothpastes half the price than his competitors. He launched Sesame Street-themed children’s toothpastes. Page No. 24 Alfredo M. Yao He sought to market his discovery of Doy Packaging technique to juice company but they showed little interest. He started his own juice company named Zest-O. Expanded to an airline named Zest Air Joe Magsaysay Dropped out of school to work at a fast-food restaurant. He was offered to be a manager He and a friend decided to open Potato Corner. Success Stories of Foreign Entrepreneurs "Successful foreign entrepreneurs transcend borders and cultures, proving that passion, innovation, and determination know no boundaries in the pursuit of greatness." Adi Dasler Best known for Adidas. Gathered feedback from athletes on what they want from a shoe. Melanie Perkins Best known for Canva. She was turned down by over 100 investors. Canva’s strategy was to solve relatable problems. Eric Yuan Best known for Zoom. Used to work for Silicon Valley. He aimed for virtual communication techniques. Page No. 24 Entrepreneur as a Habit Three Habits Required to be Nurtured and Practiced for Entrepreneurial Mindset The Self Leadership Habit Three Important Strategies Behavior-Focused - this is Enhancing self-awareness to manage behaviors especially when dealing with essential but not so good tasks. a.Self-observation b.Self-goal setting c.Self-reward d.Self-Punishment e.Self-cuing Natural Reward – about making tasks enjoyable by emphasizing the positive aspects of each task and its importance. Constructive-thought – Creating positive and productive means of thinking that are advantageous to the performance of entrepreneurs. The Creativity Habit The capacity of turning fresh ideas, insights, inventions, products or artistic objects that are considered unique, useful and valuable. Problems in the practice: 1.Fear 2.No craving for disorder 3.Fondness for judging over making ideas 4.Distaste for nurturing ideas 5.Perceived shortage of challenge The Improvisation Habit Unstructured way of creating something in the absence of planning. Page No. 24 Opportunity Recognition Using Mindset Opportunity – a means to generate profits by creating unique, innovative and desirable products and services that are not found in the market. Opportunity recognition – process which makes use od the entrepreneurial mindset in order to establish new business or ideas. How to Start With Ideas (1) 1.Analytical – breaking a problem into details. 2.Search – linking personal experiences that are significant to the existing problem. 3.Imagination-Based – interrupting of doubts and dropping restrictions. 4.Habit-Breaking – departing usual habits to stimulate creative insights. 5.Relationship-Seeking – establishing a link between concepts. 6.Development – employs the modification of existing concepts. 7.Interpersonal – interaction with a group to generate ideas. How to Start With Ideas (2) 1.Examine your own skill set for business ideas. 2.Identify undeserved needs. 3.Invent a new product or service. 4.Add value to an existing product. 5.Investigate other markets. 6.Get on the bandwagon. Page No. 24 Four Pathways to Opportunity Identification 1.Find Pathway - Find a problem and develop a solution. 2.Search Pathway – An active search to discover new opportunities. 3.Effectuate Pathway – involves using what you have (skills, knowledge, abilities) to find an opportunity that fits you. 4.Design Pathway – Focused on the unmet needs of customers. The four pathways can be classified as either a discovery or creation approach: Discovery approach – assumes opportunities exist and we rely on entrepreneurs to discover them. Creation approach – assumes that the entrepreneur creates the opportunity rather than uncovering it. Page No. 24 SANDIGIO, Pauline Andrea L.. V. References 4 Entrepreneur Success Stories to Learn From | HBS Online. (2022, January 20). Retrieved from https://online.hbs.edu/blog/post/successful-entrepreneur-stories Camilar-Serrano. (2021). Entrepreneurial Mind. Unlimited Books. F. (2023, February 21). The most successful entrepreneurs in the Philippines - FutureLearn. Retrieved from https://www.futurelearn.com/info/futurelearn-international/most- successful-entrepreneurs-philippines Garibay, C., & Garibay, C. (2022, July 22). 8 Stories of Successful Entrepreneurs that Will Inspire You on Your Journey. Retrieved from https://valiantceo.com/stories-of-successful-entrepreneurs/ Page No. 30 SANDIGIO, Pauline Andrea L.. Page No. 30 GEC 20.1 MODULE 3: THE POWER TO CHOOSE AND THE DESIGN THINKING GEC 20. 1: The Entrepreneurial Mind Module 3 The Power to Choose and the Design Thinking I. Learning Objectives 1.identify the different factors involved in starting a business; and 2.understand the various component that affects an employee and manager/owner. II. Content Preparatory Activity Directions: Find the given words in the puzzle to continue the journey. The words could be horizontal, vertical, or diagonal. Word Hunt Page No. 38 III. Unlocking Difficulty 1.Design thinking: A discipline that uses the designer's sensibility and methods to match people's needs with what is technologically feasible and what can convert into customer value and market opportunity. 2.React: A quick and instant action towards a stimulus without much thought or evaluation. 3.Respond: A thoughtful and considered action or reply after evaluating the stimulus and its impact. 4.Synergy: Synergy refers to the combined effect or cooperation of two or more elements, entities, or individuals that produces a result greater than the sum of their separate effects. It represents the idea that working together and combining efforts can lead to enhanced outcomes and productivity. 5.Resilience: Resilience is the ability to recover quickly from difficulties, setbacks, or adversity. It is the capacity to bounce back, adapt, and thrive in the face of challenges, stress, or trauma. Resilience involves mental, emotional, and physical strength to maintain well-being and overcome obstacles. IV. Discussion Design Thinking He started of by selling worn military combat boots to American soldiers. Best known for SM malls. According to Tim Brown, the Chief Executive Officer of IDEO, design thinking is "a discipline that uses the designer's sensibility and methods to match people's needs with what is technologically feasible and what a viable business strategy can convert into customer value and market opportunity". Design thinking is a constant process or trying to find innovative solutions to problems through deep understanding and empathy of the target user. Design thinking offers a means of digging that bit deeper to disclose ways of improving user experiences. Page No. 40 The Design Thinking Process The Hasso Plattner Institute of Design at Stanford provides a five-step process in design thinking. The Five Phases of Design Thinking EMPHATIZE: Research About User's Needs The first step in the design thinking process allows to obtain understanding of the people who experience a problem designing a solution to serve them. Here are some key empathy-building methods to gain a deeper understanding of the users' pulse: 1.Empathy interviews - The objective of the interview is to find out as much insight as possible using an open conversation. 2.Immersion and Observation - Users should be observed in their natural environment or immersed in a certain situation while they are in action. 3.Extreme Users - Extreme users are the ones sought to re-structure the problem and discover fresh insights. Compared to average users, they find workarounds to existing problems. 4.Ask what, how, and why in curiosity - The what, how, and why of users' behavior must always be considered. This line of questioning can lead the observation into more abstract user motivations. One method that can be used to record efficiently the information from the interview is the empathy map. Empathy map - helps gather and organize the data from the interview that could lead to surprising insights. There are four main components of the empathy map namely: 1. Say - This quadrant covers what the user says loudly in an interview or some other usability study that contains precise and direct quotes from research. Example: "I am loyal to Jollibee because I never have a bad experience." Page No. 40 2. Think - This quadrant captures what the user is thinking throughout the experience. Example: The user's thought could be expressed as "This is really frustrating." 3. Do - This quadrant encompasses the actions the user undergoes. Example: The user "Shops around to compare prices". 4. Feel - This quadrant contains user's emotional state such as his worries, excitement about a certain experience.This is often represented by an adjective. Example: "confused of too many contradictory prices". DEFINE: State Users' Needs and Problems The first step towards defining a problem is to find who the user is, what is his needs and then develop insights from the answers. Then the actionable design problem statement is defined in a human-centered manner to club all the answers together in the Empathize Stage. Here are some guidelines in generating the question under the design thinking process: 1.Strengthen the Good - In design thinking, all the positive aspects of the customers' needs are intensified. 2.Eliminate the Bad - With design thinking, all the bad components witnessed in the problem are taken out. 3.Search the opposite - Using design thinking, the problem needs to be transformed into opportunity. 4.Inquiry of the Assumptions - This step-in design thinking consists of enquiring about the assumption at hand. 5.Pinpoint the Unanticipated Resources - Having design Winking, some other resources not stated by the customer can be sought on how they can be controlled. 6. Form an Analogy - Design thinking also includes the manner of creating relationships between the problem at hand and unconnected images. 7. Breakdown the Problem into Pieces - This is where again analysis Page comes into picture for a short while before the problem definition canNo. 41 be synthesized. 2. Eliminate the Bad - With design thinking, all the bad components witnessed in the problem are taken out. 3. Search the opposite - Using design thinking, the problem needs to be transformed into opportunity. 4. Inquiry of the Assumptions - This step-in design thinking consists of enquiring about the assumption at hand. 5. Pinpoint the Unanticipated Resources - Having design Winking, 6.Form an Analogy - Design thinking also includes the manner of creating relationships between the problem at hand and unconnected images. 7.Breakdown the Problem into Pieces - This is where again analysis comes into picture for a short while before the problem definition can be synthesized. IDEATE: Challenge Assumptions and Construct Ideas In this stage, designers are prepared to start generating ideas. The concrete background of knowledge from the first two stages means anyone can begin to "think outside the box". Here are some numerous ideation techniques: 1.Brainstorm - relaxed and informal way of solving a problem using imaginative thinking. 2.Brainwrite - a serial process of asking participants to write down their ideas about a specific question or problem on sheets of paper. 3.Worst Possible Idea - a technique where members of the team look for the worst solutions in ideation periods. 4.SCAMPER - This method is a concept that aims to look for solutions, to problems. It is more engrossed on the process of discovering unfamiliar and innovative solutions to problems. SCAMPER stands for an acronym and each letter stands for one thinking technique: Substitute - A designer may look for something to replace that will result in improvements of concept, product, service or progress. Combine - Sometimes, the solutions are already at hand and not really something new. An idea might not work alone, but a combination of some ideas, processes or products could work best. Adapt - Often, there is already the right solution to a problem, but still unknown yet. Sometimes, an idea could solve one or more problems. Modify - At times, exaggerating a situation or problem could offer a new insight or added value. This could help isolate which among the part of process or concept is vital. Page No. 42 Put to another use - This is making the idea or concept works into a different use compared to what is originally planned. Eliminate - In the same process like the Lean Six Sigma, this concerns eliminating waste due to inefficient processes. Removing ineffective procedures could reform them. Reverse - This is doing things that are completely against the original purpose in order to see something from a different angle. PROTOTYPE: Start to Form Solutions A prototype is a low-cost, scaled-down quick working sample of entrepreneurial ideas for new products or particular features found in these products This stage is an experimental one to validate ideas and to develop reaction to form more and more prototypes for interaction. The purpose is identifying the best likely solution for each of the problems. identified from the first three stages. The solutions are applied within the prototypes. Here are some of the benefits about prototyping: 1.Timely feedback - Collecting feedback is an important feature of the product building process. Feedback could reveal what works for the market or what could not. 2.Prompt changes save time and cost - At the end, changes could be in the form of drastic restructuring, assumption and revision. 3.Validation prior to development - repetitive process ensur easier what in reality is needed. 4.User research and user testing – It is vital to identify potential user and gather ideas to serve them best. This can only be attained using prototyping. There are numerous types to prototyping. It is always essential to choose the right type to a product which suits into some constraints such as time and resource. Page No. 43 1.Lou Fidelity - This consists of paper prototypes that are used in the early stages that are constantly improved during the process. 2.Medium Fidelity - This prototype concerns the product, that is made with practical functionalities based on storyboard and user situations. 3.Highfidelity - These prototypes are mistaken for the final product, because they look closely like the would-be actual end product. TEST: Try Solutions Out The complete product is tested in real life environment using the best solutions in the previous step. The results that are produced out of the test are normally use to redefine one or identify further problems. Testing is the opportunity for users to try out the prototype. It is the chance for the designer to observe on purpose and gather finale process data. INFLUENCE In order to be more competitive, a business must take into account the elements that influence the immediate business landscape. Every business should overlay demographic profiles, competitor density, overheads, transport availability and the potential workforce that is immediately available in order to decide on long term strategies. FACTORS: 1.Demography – Where you base your business is dictated by the type of people who will be your nearest potential customers. 2.Competitors – Basing your business near competitors can work both ways; on the one hand there is the danger that you’ll lose customers to your rivals, especially if they undercut you on price or have other benefits. 3.Overheads – Overheads vary widely, depending on location. Beyond the price of buying or paying commercial rents for facilities and premises, you need to take into account business rates set by local authorities and factor in variations in running costs, such as commercial cleaning or alarm monitoring. 4. Transport availability – Transport accessibility virtually affects any business. Manufacturers need to consider the ease of accessing major roads, railways or airports for distributing goods. 5. Workforce – It is good to be based where suitable staff can easily get Page No. 44 to work. Assessing this can range from crude categorization (younger staff for local bars) to more sophisticated categories, such as academic 2. Competitors – Basing your business near competitors can work both ways; on the one hand there is the danger that you’ll lose customers to your rivals, especially if they undercut you on price or have other benefits. 3. Overheads – Overheads vary widely, depending on location. Beyond the price of buying or paying commercial rents for facilities and 4.Transport availability – Transport accessibility virtually affects any business. Manufacturers need to consider the ease of accessing major roads, railways or airports for distributing goods. 5.Workforce – It is good to be based where suitable staff can easily get to work. Assessing this can range from crude categorization (younger staff for local bars) to more sophisticated categories, such as academic background and subject expertise among a skilled workforce. REACT vs RESPONSE What is a Reaction? A reaction is a quick and instant action towards a stimulus. In some situations, a reaction is accepted but in others it can have a negative outcome. What is a Response? A response is preceded by concrete thinking and a thorough evaluation of the stimulus and the impact of the action. Difference Between React and Response If you just REACT: Your goals will be short-sighted There will be passive aggressive behavior Responses will be emotional There will be no or very poor communication There will be overreaction A lot of assumptions will be there and people will directly jump into conclusions Page No. 45 If you RESPOND: Goals will be visionary Values will drive the situation The responses will come from a place of knowledge Communication will be highly connected Instead of overreacting, you will focus on facts Your anticipation will help the response to be pre-thought out Reacting vs Responding Examples Example 1: Waiters at a restaurant make mistakes by delivering orders to the wrong table. Reaction: The manager scolds them immediately, which ends up frightening and humiliating the waiters. Response: Calmly devising a system for assigning numbers to each table for a more organize delivery. If the situation is dealt with a response, the waiters will easily get the orders to the correct table. Rather than frightening the humiliating the waiters with anger and causing confusion in their mind. Example 2: During an argument between the employee and a customer, the customer begins yelling at the employee. Reaction: The employee also begins yelling which makes the argument heated. Response: The employee refrains from yelling, talks calmly and waits for the customer to cool down and then states their opinion and proceeds to understand the root of the problem in order to avoid such incident in the future. If both the people begin yelling at each other, it will lead to a bitter end and might even damage the relationship between the business and customer. On the other hand, the response helps initiate a conversation and may even end with a solution to the reason for the argument. One of the main requirements of responding is being mindful of the response. This mindfulness can be practiced through the P.L.A.C.E. skill. Page No. 46 P-ause Take a step back and evaluate the trigger or situation. L-abel the Emotion Understand the emotion you are feeling as a result of the trigger. It may be anger, annoyance, frustration, irritability, anxiety or disappointment. A-sk Why Ask yourself why you are feeling triggered. Why is the situation or person making you feel that specific emotion? This step helps us become self-aware. C-hoose a Mindful Response Think of how you want to respond to it. Weigh the pros and cons of the response that you want to choose. If it affects you or anyone else negatively, try coming up with another response. Or, if it brings a positive response, execute it. E-mpower Yourself Now that you have learnt the process of being mindful, make an effort to implement it each time there is a react vs respond situation. “Between stimulus and response, there is space. In that space is our power to choose our response. In our response lies our growth and our freedom” - Viktor E. Frankl LOCUS OF CONTROL It refers to how much control a person feels they have in their own behavior. A person can either have an internal locus of control or an external locus of control (Rotter, 1954). It refers to an idea connected with anticipations about the future It is how much individuals perceive that they themselves have control over their own actions as opposed to events in life occurring instead because of external forces. It is measured along a dimension of 'high internal' to 'high external'. TWO TYPES OF LOCUS OF CONTROL 1.Internal Locus – a conviction that one can handle one's own life. 2.External Locus – a conviction that life is constrained by outside factors which the individual can't impact, or that possibility or destiny controls their lives. Page No. 46 A comparison of internal vs. external locus of control can be found in the following locus of control diagram: Internal Locus of Control External Locus of Control Base their success on their own Attribute their success on outside work influence Believe they do not control what Believe they control their life happens in their life Blame oneself for the perceived Place blame on others for failure perceived failures Will not accept responsibility for Too hard on themselves their part in failures Examples: Internal Locus of Control External Locus of Control People generally believe they have People generally believe things the power to change and improve happen to them and they can’t upon their situation. change that. For instance, let's say an employee is a candidate for a promotion Page No. 46 A person with external locus of control will consider the promotion to them based on factors such as A person with an internal locus of the right timing, perhaps others control will think that the promotion higher in the company like them, was entirely deserved strictly for divine intervention, or just luck or their hard work with the company. fate. However, if they are denied However, if they are denied a the promotion, it will usually not be promotion, they will blame taken as hard as other people. themselves and may take the news They will brush it off, blaming harder than others around them another reason outside of would have. themselves for the perceived failure, assuming that it is outside of their control. “When stuff happens in life, stop and ask yourself where your locus of control resides. An external locus leads to reactivity. An internal locus opens a choice.” - Power of TED VISION: THE POWER TO CHOOSE What is Vision? Vision is defined as the "act or power of imagination" and the "mode of seeing or conceiving" with unusual discernment or foresight. (Merriam- Webster) Vision is the vital energy that drives the entrepreneur, the founder, the co- founder and his immediate team. Vision is the energy that provides an entrepreneur and its organization with the ability to perform and succeed. Vision is what creates and establishes the culture, which is the key component that gets softly shared between people creating and establishing norms, expectations and duties that defines organization acts. Vision is the mental picture of the future you desire. More than just a goal, a vision is the embodiment of our hopes and dreams in a particular area; the picture of what has not yet happened, but what the future may hold. Page No. 46 What does it mean to have a vision? Having a vision means we have a clear sense of purpose. It means we have a much larger picture of our business, or our life, than simply setting and reaching short term goals and tackling problems as they come along. Visions are driven by passion and dreams, and they are reflected through real efforts to create real results. Having a vision is important because none of what we've learned will mean much if we don't have a destination in mind, a goal with meaning, a vision that we own and strive to achieve. Entrepreneurs are empowered by the combination of a vision and the willingness to act. We are more willing to focus our efforts on things that will improve our lives and bring us closer to our goals once we have established them. Reasons why having a Vision is crucial: It is unifying – When a clear vision is defined within a company, it provides a gathering point, or common interest, making everyone feel as though they are a part of a greater whole. It is Inspiring – Defining a powerful vision is inspiring. It has a clear motivational effect on everyone within the organization. It provides a focal point for goal-setting and business planning – Your vision will help you define your short and long-term goals, and guide the decisions you make along the way. Page No. 46 MINDSET DEFINED As a mindset, Design Thinking is characterized by several key principles: a combination of divergent and convergent thinking, a strong orientation to both obvious and hidden needs of customers and users, and prototyping. As a process, Design Thinking is seen as a combination of a micro- and a macro- process. Design thinking focuses on achieving practical results and solutions that are: Technically feasible: They can be developed into functional products or processes; Economically viable: The business can afford to implement them; Desirable for the user: They meet a real human need. Page No. 46 SANDIGIO, Pauline Andrea L.. V. References Entrepreneurial Vision and Goals – Entrepreneurship | OpenStax. (n.d.). Retrieved from https://openstax.org/books/entrepreneurship/pages/1-2- entrepreneurial-vision-and-goals Chapter 4 - Vision: The Power to Choose. (n.d.). Retrieved from https://academy.elimindset.com/courses/1246271/lectures/277685 85 De La Torre, J. J. (2016, January 20). Vision: The Driver Of Entrepreneurship. Entrepreneur. Retrieved from https://www.entrepreneur.com Hamzah, M. I., & Othman, A. R. (2023). How do locus of control influence business and personal success? The mediating effects of entrepreneurial competency. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.958911 Kumar, R. (n.d.). React vs. Respond – Leader’s dilemma. www.linkedin.com. Retrieved from https://www.linkedin.com/pulse/react-vs-respond-leaders-dilemma- rupesh-kumar-1f Mattson, C. (2022). Design Thinking Part 3: Design Thinking as a Mindset — The BYU Design Review. The BYU Design Review. Retrieved from https://www.designreview.byu.edu/collections/design-thinking- part-3-design-thinking-as-a-mindset Mba, I. Y. (n.d.). The Power of Design Thinking. www.linkedin.com. Retrieved from https://www.linkedin.com/pulse/power-design- thinking-ibnoulkhatib/ Pietroluongo, L. (2019). How Responding vs. Reacting Can Improve Your Business. Elegant Themes Blog. Retrieved from https://www.elegantthemes.com/blog/business/how-responding-vs- reacting-can-improve-your-business Page No. 54 SANDIGIO, Pauline Andrea L.. Page No. 54 GEC 20.1 MODULE 4: RECOGNIZING OPPORTUNITIES, CUSTOMERS, AND MARKET GEC 20. 1: The Entrepreneurial Mind Module 4 Recognizing Opportunities, Customers, and Market I. Learning Objectives 1.define opportunity and customers and market; 2.identify the various problems and opportunity recognition; and 3.discover how problems turn into opportunity. II. Content Preparatory Activity W O R D In this Activity, students are tasked to search the words given in the box by connecting them. It can be spelled vertically, horizontally, and backward. Remember, all the words given are associated with the topic to be discussed later on. Page No. 60 III. Unlocking Difficulty 1.Lucrative: This refers to something that is highly profitable or financially rewarding. It describes an endeavor or opportunity that has the potential to generate significant profits or financial gains. 2.Inefficiency: This refers to the state or quality of not achieving the desired or optimal result in terms of productivity, effectiveness, or resource utilization. It implies that there is wastage or a lack of effectiveness in a process or system. 3.Venture capital: A type of private investment capital provided to early-stage, high-potential startups or small businesses with significant growth potential. Venture capitalists typically invest in exchange for equity or ownership stakes in the company and provide financial and strategic support to help the business grow. 4.Scalability: The ability of a business or business model to handle an increasing amount of work, sales, or growth without compromising its performance or efficiency. A scalable business can grow its operations and revenue without proportionally increasing its resources or costs. 5.Market segmentation: The process of dividing a larger target market into distinct subgroups or segments based on shared characteristics, preferences, or behaviors. IV. Discussion Opportunity: In Search of Opportunity An entrepreneurial opportunity (hereafter opportunity) is a potentially lucrative idea that is discovered or created by an entrepreneurial entity (Short, Ketchen, Shook and Ireland, 2010) and can refer to new processes, products, services, or markets, through the formation of new means, ends, or means-ends relationships (Eckhardt and Shane, 2003; Gaglio, 2004). Sources of Opportunity INTERNAL EXTERNAL Innovation Macromarket Creativity Micromarket Analysis Imitants in the marketplace Page No. 64 What is Opportunity Recognition To become an opportunity, an idea needs to be evaluated and acted upon. To become a business opportunity, your idea needs to have a potential economic value: 1.It needs to be able to create profit. There have to be customers willing to pay for the product. 2.It should also be new and innovative. 3.It also needs to be attractive and desirable for people who want to buy it. There are two (2) ways to recognize opportunities: You can discover them - Entrepreneurs discover opportunities when they search for them in existing markets. You can create them yourself and with others - Entrepreneurs create opportunities when they engage with others in bouncing ideas back and forth, and each time it becomes more specific what the user needs are and how they are going to be solved. Page No. 64 IMPORTANCE OF OPPORTUNITY RECOGNITION 1.Opportunity recognition is an essential skill for an entrepreneur to have. 2.Opportunity recognition is a process through which entrepreneurs and businesses identify potential methods of growing their ideas or beginning new ventures. 3.For entrepreneurs to make profits and remain relevant, they must possess the skills to recognize possible opportunities. Opportunity recognition is an essential skill for an entrepreneur to have. 4.Entrepreneurs with high opportunity recognition skills can create new products that satisfy the existing market. PROBLEMS are OPPORTUNITIES Every single social problem is an opportunity. Major Problem of Entrepreneurs 1. Hiring Employees - is another of the major issues faced by the entrepreneurs. It is one of the most time-consuming activities and is therefore often sidelined by the entrepreneurs. SOLUTION: Look for candidates with prior work experience and relevant skills which reduces the work. 2. Time Management - one of the most highlighted issues and for modern entrepreneurs, it is a difficult phase as they need to perform multiple roles. Page No. 64 2. Time Management - one of the most highlighted issues and for modern entrepreneurs, it is a difficult phase as they need to perform multiple roles. SOLUTION: Entrepreneurs can manage time effectively by charting out an action plan which sets goals of the business into weekly, monthly, quarterly and yearly objectives. 3. Choosing the product to sell - most difficult part for an entrepreneur sometimes is deciding the kind of product or service they want to sell. SOLUTION: This challenge can be overcome by seeking counselling from experts in the business and also by performing a SWOT analysis. SIMPLE SOLUTIONS 5 Tips for Recognizing a Meaningful Business Opportunity: 1.You've found a noteworthy market inefficiency 2.Identify successful business models in similar markets 3.A new approach to a tried-and-true idea 4.It's something people are asking for 5.There is an opportunity to act quickly OPPORTUNITY ADAPTATION Opportunistic adaptation has primarily been regarded as an entrepreneurial strategy focusing on rapid learning and change in order to adapt to market changes. Opportunities often pursued by entrepreneurs are: Small and uncertain Do not require new technology Barely visible Unlikely to attract investment Page No. 64 Once in motion Discover a larger opportunity Otherwise, invisible Can occur in the early stages of entrepreneurial endeavor Encounter unexpected opportunity Can occur over a long period of time Business slowly evolves Entrepreneur’s abilities grow /larger opportunities grow Opportunistic Adaptation requires: Constant Experimentation/Persistence Open-mindedness/Agility An IDEA is a GOOD OPPORTUNITY IF…. It fills customers’ needs. You have the skills and resources to start a business. You can sell the product or service at a reasonable price and still profit. You can get your product or service to customers before the window of opportunity closes. You can keep the business going. OPPORTUNITY VIEWPOINTS 1. Product-pushing approach. (Not recommended) 2. Demand-pull approach. (Recommended) Listen to customers and study their behavior to answer five fundamental questions: What do they want? When do they want it? Where do they want it? How do they want it served or provided? How much are they willing to pay for it? Once you have answers, compare them with your own abilities. Do I have it, or can I get it? When they want it? Where they want it? Page No. 65 The way they want it? For less than they’re willing to pay? If all five answers are yes, you have a real business opportunity. Example Opportunity by Steven Jobs: Apple I (1976) – Jobs and Steve Wozniak Apple II (1979) - Apple II improved and updated The Macintosh (1984) the Mac NeXT (1985) After fired from his own firm Pixar (1986) (26 Academy Awards) sold for $7.6 billion The Cube (2000) A major innovation – absence of a cooling fan. The iPod (2001) The MacBook (2006) The iPhone (2007) The iPad Tablet (2010) OPPORTUNISTIC ADAPTATION Steven Jobs – Not a techie, an entrepreneur Look for opportunity And moved! Improved on his improvements PRIOR WORK EXPERIENCE Prior experience or knowledge of the entrepreneur is a heavily studied characteristic in entrepreneurial behavior. Startups frequently emerge from entrepreneurs with lots of acquired knowledge or experience within the subject field. Prior work experience improves: 1. Interpersonal skills 2. Critical and creative thinking skills 3. Leadership skills Page No. 65 ENTHUSIASTIC AND SOMEWHAT INEXPERIENCE Enthusiasm: Having a positive attitude in the workplace can help with potential promotions. INVENTOR AS ENTREPRENEUR An inventor is someone who is focused almost solely on creating and building a product, process, or service that can solve the problems that someone might have. Characteristics of an Inventor 1.Visionaries 2.Focused 3.Tunnel-visioned 4.Passionate 5.Courageous 6.Passionate 7.Hard-working 8.Forward-thinking 9.Love collaboration 10.Leader Page No. 68 ENTREPRENEUR Creates a firm to realize their idea, known as entrepreneurship, which aggregates capital and labor in order to produce goods or services for profit. Entrepreneur and Inventor - COMPARISON Inventor Entrepreneurs Possesses a high degree of The entrepreneur is adaptive and technical expertise versatile Flexible & nimble, responding to Laser focus in providing a solution changing priorities Works in an autonomous Thrive on collaboration environment Normally visionary, but can be Coachable, humble, actively solicits single-focused input from past The inventor creates The entrepreneur leads Identifies & builds economically Does cutting-edge research viable networks Establishes teams, channels, and Establishes proof of concept markets Page No. 68 MARKET AND COSTUMER Market - a place where parties can gather to facilitate the exchange of goods and services. Customer - are individual or business that purchases another company's goods or services. Market Understanding - Collecting data and turning it into insights for businesses to gain a competitive advantage. Market Research - It is the process by which companies collect data about customers and markets to help them construct a better marketing strategy. Understanding Markets and Customers: The Benefits of Market Research As a marketer, collecting helpful information and good data is essential. Good research can: Help companies make better marketing decisions. Reduce risks. Help companies identify their target market and customers. Help companies understand their customers' wants and needs. Help companies beat competitors to their target market and customers. Help companies sustain a competitive advantage. Page No. 68 TYPES OF CUSTOMERS 6 Common Types of Customers 1. New Customers - are those who have just joined your customer base for the first time. 2. Potential Customers - also known as “lookers” or “prospects” aren’t actually customers yet. They’re gathering information and exploring their options before making a buying decision. 3. Impulse Customers - make buying decisions in a snap. 4. Discount Customers - are the polar opposite of impulse buyers. 5. Angry Customers - they may be difficult to handle, unhappy customers are a valuable source of feedback. 6. Loyal Customers - are the gold standard for any business. They love your company and your product. They make repeat purchases year after year. CUSTOMER PERSONAS and JOURNEY MAP To be an entrepreneur is to think differently. While most people seek refuge, entrepreneurs take risks. They don’t want a job; they want to create jobs. Their goal isn’t to think outside the box as much as it is to own the box. Entrepreneurs don’t follow the market; they define the market. This bold and seemingly backward way of thinking I refer to as the Entrepreneur Mind. Page No. 68 SANDIGIO, Pauline Andrea L.. V. References Hillis, K. (2015, March 30). How Previous Work Experience Can Improve Your Business. Retrieved from https://www.wisdomtimes.com/blog/improve-your-business-with- previous-work-experience/ Kenton, W. (2021). Customer: Definition and How to Study Their Behavior for Marketing. Investopedia. Retrieved from https://www.investopedia.com/terms/c/customer.asp Kenton, W. (2021b). Market: What It Means in Economics, Types and Common Features. Investopedia. Retrieved from https://www.investopedia.com/terms/m/market.asp Mitzkus, S. (2023, May 16). What is the Innovation and Entrepreneurship Relationship? Retrieved from https://digitalleadership.com/blog/the-innovation-entrepreneurship- relationship/ Prior Experience in Entrepreneurship - Explained. (n.d.). Retrieved from https://thebusinessprofessor.com/business-management-amp- operations-strategy-entrepreneurship-amp-innovation/prior- experience-in- entrepreneurship#:~:text=Prior%20experience%20or%20knowled ge%20of,understand%20the%20opportunities%20that%20exist. The Pathway To Success As A Serial Entrepreneur With Cameron. Retrieved May 26, 2023, from https://elimindset.com/the-pathway- to-success-as-a-serial-entrepreneur-with-cameron-tolbert/ FutureLearn. (2022, October 25). Updates, Insights, and News from FutureLearn | Online Learning for You. Retrieved from https://www.futurelearn.com/info/courses/technology- entrepreneurship-start-a-new-venture/0/steps/45095 University Lab Partners. (n.d.). What’s the Difference Between an Inventor, Entrepreneur and Innovator? Retrieved from https://www.universitylabpartners.org/blog/difference-inventor- entrepreneur-innovator Page No. 74 SANDIGIO, Pauline Andrea L.. Page No. 74 GEC 20.1 MODULE 5: IDEAS INTO ACTION AND FINANCING GEC 20. 1: The Entrepreneurial Mind Module 5 Ideas Into Action and Financing I. Learning Objectives 1.understand the different ideas and financing a business; 2.differentiate the different ideas into action and financing; and 3.apply the different ideas into action and financing in creating or building a business. II. Content Preparatory Activity PICTURE O U T DIRECTIONS: 1.The class will be divided into three groups. 2.Guess what the provided pictures depict by looking at them. 3.The fastest group who can picture out and answer all the pictures will be the winner. III. Unlocking Difficulty 1.Mitigate: To mitigate means to reduce or minimize the impact or severity of something, such as risks or obstacles. In the context of running a business, successful owners must possess the ability to mitigate company-specific risks. 2.Infrastructure: Infrastructure refers to the basic physical and organizational structures and facilities needed for the operation of a society or business. In the context of business failure, a faulty infrastructure can be one of the reasons for small businesses to fail. 3. Marketing initiatives: Marketing initiatives are strategic actions taken by a company or organization to promote and sell its products or services. Unsuccessful marketing initiatives can contribute to the failure of small businesses. 4. Bootstrapping: Bootstrapping is a process of establishing and building a business using personal savings, earnings from initial sales, and borrowed or invested money from family and friends without relying on external funding Page No. 79 2. Infrastructure: Infrastructure refers to the basic physical and organizational structures and facilities needed for the operation of a society or business. In the context of business failure, a faulty infrastructure can be one of the reasons for small businesses to fail. 3. Marketing initiatives: Marketing initiatives are strategic actions taken by a company or organization to promote and sell its products or services. Unsuccessful marketing initiatives can contribute to the failure of small businesses. 4.Bootstrapping: Bootstrapping is a process of establishing and building a business using personal savings, earnings from initial sales, and borrowed or invested money from family and friends, without relying on external funding sources or substantial bank loans. 5.Proof of Concept (POC): It is evidence obtained from a pilot project or experiment that demonstrates the feasibility and potential success of a product idea, business plan, or project plan. POC is used to gather valuable data and insights to determine if a project or product idea is feasible before further investment and development. IV. Discussion Introduction Running a business is not for the faint of heart; entrepreneurship is inherently risky. Successful business owners must possess the ability to mitigate company-specific risks while simultaneously bringing a product or service to market at a price point that meets consumer demand levels. While there are a number of small businesses in a broad range of industries that perform well and are continuously profitable, about 33% of small businesses fail in the first two years, around 50% go belly up after five years, and roughly 33% make it to 10 years or longer, according to the Small Business Administration (SBA) To safeguard a new or established business, it is necessary to understand what can lead to business failure and how each obstacle can be managed or avoided altogether. The most common reasons small businesses fail include a lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives. Page No. 80 Barriers to Entry Barriers to entry are the economic hurdles that a new entrant face entering that market. In other words, there are the fixed costs that new entrants are liable to pay irrespective of production or sales that may otherwise have not been incurred had the participant not been a new entrant. TYPES OF BARRIERS TO ENTRY Advantages of Barriers to Entry 1.Barriers to entry prevent new entrants from entering the market, producing cheap and inferior products. 2.They protect the existing market players from safeguarding their profits and revenue generation. 3.Barriers to entry help current players concentrate on research and development rather than fighting competition with the new players. 4.The government lays down regulations for players in a few industries like transport to reduce the traffic, pollution, etc.; telecom industries to reduce heavy infrastructure usage, land, etc. 5.They aid the existence of a monopoly and let the existing players enjoy market power and market share. 6.It gives the players a competitive edge. 7.It is also advantageous to consumers because they can receive high-quality products at lower prices due to the competition. Page No. 82 Disadvantages of Barriers to Entry 1.High entry costs discourage the new entrants to the market, thereby daunting the innovations. 2.Monopoly prevails when new entrants are discouraged, leading to dominance over the consumers. LACK OF MONEY 1.Running out of money is a small business’s biggest risk. Owners often know what funds are needed day to day but are unclear as to how much revenue is being generated, and the disconnect can be disastrous. 2.Inexperience managing a business—or an unwillingness to delegate—can negatively impact small businesses, as can a poorly visualized business plan, which can lead to ongoing problems once the firm is operational. 3.Poorly planned or executed marketing campaigns, or a lack of adequate marketing and publicity, are among the other issues that drag down small businesses. PRICE STRATEGIES 1.Pricing strategies refer to the processes and methodologies businesses use to set prices for their products and services. If pricing is how much you charge for your products, then product pricing strategy is how you determine what that amount should be. 2.There are different pricing strategies to choose from but some of the more common ones include: Value-based pricing Penetration pricing Competitive pricing Economy pricing Price skimming Dynamic pricing Cost-plus pricing Page No. 82 The Importance of Nailing Your Price Strategy Having an effective pricing strategy helps solidify your position by building trust with your customers, as well as meeting your business goals. Let's compare the messaging that a strong pricing strategy sends in relation to a weaker one. A Winning Pricing Strategy: 1. Portrays value - the word cheap has two meanings. It can mean a lower price, but it can also mean poorly made. There's a reason people associate cheaply priced products with cheaply made ones. Built into the higher price of a product is the assumption that it's of higher value. 2.Convinces customers to buy - a high price may convey value, but if that price is more than a potential customer is willing to pay, it won't matter. A low price will seem cheap and get your product passed over. The ideal price is one that convinces people to purchase your offering over the similar products that your competitors have to offer. 3.Gives your customers confidence in your product - if higher-priced products portray value and exclusivity, then the opposite follows as well. Prices that are too low will make it seem as though your product isn't well made. A Weak Pricing Strategy: 1.Doesn't accurately portray the value of your product - if you believe you have a winning product, and you should if you are selling it, then you need to convince customers of that. Setting prices too low sends the opposite message. 2.Makes customers feel uncertain about buying - just as the right price is one that customers will pull the trigger on quickly, a price that's too high or too low will cause hesitation. 3.Targets the wrong customers - some customers prefer value, and some prefer luxury. You have to price your product to match the type of customer it is targeted towards. Calculating Pricing The selling price, be that of a product or service, is the customer or client’s final price. It’s extremely important to know how to calculate selling price because if you don’t make a profit while also securing a position in the market, your business will not survive. In short, successfully knowing how to calculate selling price of a product is a win-win for you and your customer. If done right — they get a good deal, and you get a fair price. For direct-to-consumer brands, there’s a chance you can charge more if your brand image is in high demand like many clothing brands do, such as Adidas or Nike. Page No. 82 Still, you’ll need a solid portfolio to back up your prices or a powerful marketing campaign. How to calculate selling price of a product formula: To cut a long story short, you’re always aiming to make a profit. Otherwise, your business won’t grow. Now, the longer version. As a manufacturer calculating selling price, you’re going to need first to calculate your cost price, otherwise known as manufacturing costs, using this formula: Cost price = raw materials + direct labor + allocated manufacturing overhead Let’s say the cost price of an item is PhP 2,720.75 The short answer is you need to charge more than this figure to make a profit. However, a rule of thumb is to add a 25% mark-up — a technique known as cost-plus or mark-up pricing. Your selling price formula will look something like this: Selling price = cost price x 1.25 SP= 2,720.75 x 1.25 In this case, the selling price would be PhP 3,400.9375. However, you need to consider other factors, such as: Competitors prices Are you selling premium or value products Your marketing tactics Types of Selling Price Calculations Planned profit pricing - this is pricing combines your cost per unit with projected output for your business. You can use it to work out if your business will be profitable at your current pricing strategy. If not, you can increase prices or increase output. The flexibility makes it suitable for manufacturing businesses. What the market will bear (WTMWB) - this pricing charges the maximum (or very close to the maximum) for what the market allows. Specifcally, if an item costs $100 to manufacture, and the most a customer will pay for it is $500 — this is the market limit. This is a pricing strategy that can lead to the highest profit margins. But beware — this is not a sustainable strategy — charging at the upper limits of what the market can bear leaves the field open for a wily competitor to undercut your prices easily. In short, it leaves you vulnerable to your competitors’ pricing strategy. Page No. 84 Gross profit margin target (GPMT) - After you know how to calculate the selling price, you can work out the GPMT of your business. Say a company has $10,000 in revenue, and the COGS is $6,000. $10,000 minus $6,000 leaves you with a $4,000 gross profit. Dividing this with the original $10,000 leaves you with a gross profit margin of 0.4. M

The Entrepreneurial Mindset PDF

Document Details

Tags

Related

Summary

Full Transcript

Upgrade to continue