Basic Concepts Of Entrepreneurship PDF

Entrepreneurshi p It is a proactive process of developing a business venture to Entrepreneurshi p It involves seeking opportunities for a market,  Entrepreneurshi p establishing and operating a business out of the opportunity, Entrepreneurshi p assessing its risks and rewards, Entrepreneur...

Entrepreneurshi p It is a proactive process of developing a business venture to Entrepreneurshi p It involves seeking opportunities for a market,  Entrepreneurshi p establishing and operating a business out of the opportunity, Entrepreneurshi p assessing its risks and rewards, Entrepreneurshi p through close monitoring of the operations.  Common Elements innovation opportunity seeking resource mobilizing encountering risks and uncertainties economic and personal rewards Societal & Economic Benefits and Contribution of Entrepreneurship Introduces New and Innovative
Products and Services Amplifies Economic Activities of Different Sectors of Society Provides More Alternatives to the People Produces More Jobs which
Adds to National Income Brings Social Benefits to the People Improves People’s
Living Standards Disperses the Economic Power and Creates Equality Other Benefits Entrepreneurship controls the local wealth and balances regional development. Entrepreneurship reduces social conflicts and political unrest. Entrepreneurship generates new sources of materials. Entrepreneurship elicits economic independence and capital formation. Entrepreneurs serve as role models. Entrepreneur s “ The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.” -Peter Drucker An entrepreneur is a unique individual who has the innate ability and extraordinary dedication to establish and manage a business. acknowledging all risks and reaping its rewards. 5 Levels of Entrepreneurial Development 1. Self-employed 2. The manager 3. The leader 4. The investor 5. The true entrepreneur  1. The self-employed  not comfortable with the routine of a desk job  do not want to conform to a fixed schedule  2. The manager  ask help from other people  delegate and hire potential employees  assess the strengths of the employees 3. The Leader  enjoy seeing their employees flourish  focus on the strategic direction of the business  4. The investor  look for more opportunities for their business to grow 5. The true entrepreneur  aim for quality and excellence in their works  fully learned, and continue to practice the four step process of thinking  four step process of thinking: -idealization -visualization -verbalization -materialization Core Competencies of Entrepreneurs 1. Proactive 2. Agents of change 3. Risk-takers 4. Have sharp eye for opportunities 5. Sociable 6. Networkers 7. Decisive 8. Balanced 1. Proactive Entrepreneurs are reactive rather than passive. 2. Agents of change innovation champions improve and develop new products and services 3. Risk-takers calculate risks 4. Have sharp eye for opportunities Assess the net cause and effect of an opportunity and decide intelligently if a venture should be considered or not 5. Sociable establishing relationship workers and customer 6. Networkers know the key people to connect with gain trust of the network 7. Decisive do not settle for unclear solutions clear objectives and strategies 8. Balanced analytical and creative unique ideas Core Traits of Entrepreneurs 1. Leaders 2. Communicators 3. Specialists 4. Problem solvers An entrepreneur is someone who identifies opportunities, plans, mobilizes resources, manages, and assumes risks of a business to have a POSITIVE IMPACT ON SOCIETY.  QUIZ 3.1
Introduction to Entrepreneurship Identify what level of entrepreneurial development is being described. Self-employed Manager Leader Investor True Entrepreneur 1. They do not want to conform to a fixed working schedule. 2. They fully learned and continue to practice the four-step process of 3. They are persons who look for more opportunities for their business by purchasing other businesses to add value to their company. 4. Entrepreneurs at this stage focus on the strategic direction of their business. 5. In this level, entrepreneurs delegate and hire potential employees for the company. 6-9. Give the four core traits of the entrepreneurs. 10. It is the proactive process of developing a business venture to make a profit. Identify the competencies shown by the following entrepreneurs. 11. Mr. A is calculating the risk and return of venturing to a money remittance business. 12. Mr. B has a good relationship with his workers. 13. Mr. C addresses issues and challenges before they come rather than when they already happened. 14. Mr. D maintains a good connection to his suppliers and creditors. 15. Mr. E thinks of ways on how he can improve his products. 16-20. Give 5 benefits of entrepreneurship in the society and economy. Pros and Cons of Entrepreneurship Vs. Employment Income Hiring and firing Organizational set-up Daily task Leisure Time & Vacation Taxation Comfort Level at work  Income Entrepreneur Employee Income only Income earned when generated actively the business Income is fixed is successful per month Hiring Entrepreneur Employee Provides Seeks Job for a job Daily Task Entrepreneur Employee Prepares all Follows policies and policies and procedures procedures Leisure Time & Vacation Entrepreneur Employee Has Has limited number of flexible vacations schedule imposed by employer  Taxation Entrepreneur Employee taxed on net taxed on gross income income can claim taxable cannot use income expenses incurred deductions for related to the job allowable  Comfort Level at work Entrepreneur Employee comfortable doing may multiple and comfortable challenging task with routines takes accountability with minimal with the risks and risks profits 1. What do you think are the factors that drive Filipinos to become entrepreneurial? 2. What do you think is the most important competency of an entrepreneur? Why? HOMEWORK: Write a diary of your behavior and activities for one week. At the end of the week, show your diary to your parents/guardians. Ask them what personal characteristics they can deduce about you from your documentation, Is there any characteristics that is similar of an entrepreneur? How do you feel about this? Ask your parents as well how they feel about this.