ENTREP GT1.docx

9 TYPES OF ENTREPRENEURSHIP Entrepreneurship is a dynamic, social process where individuals, alone or in collaboration identify opportunities for innovation and act upon them by transforming ideas into practical targeted activities whether in a social, cultural, or financial context. Nine Differen...

9 TYPES OF ENTREPRENEURSHIP Entrepreneurship is a dynamic, social process where individuals, alone or in collaboration identify opportunities for innovation and act upon them by transforming ideas into practical targeted activities whether in a social, cultural, or financial context. Nine Different Types of Entrepreneurship. Small Business Entrepreneurship - Small business entrepreneurship refers to opening a business without turning it into a large conglomerate or opening many chains. A single-location restaurant, one grocery shop, or a retail shop to sell goods or services would all be examples of small business entrepreneurship. Large Company Entrepreneurship - This type of entrepreneurship is for advanced professionals who know how to sustain innovation and are often part of a large team of C-level executives. Large companies often create new products and services based on consumer preferences to meet market demand. Scalable Startup Entrepreneurship - is a type of entrepreneurship that requires external capital and risk, wherein an organization launches its business on a small scale with the goal of expanding rapidly and becoming an extremely profitable company. Social Entrepreneurship - An entrepreneur who wants to solve social problems with their products and services is in this category of entrepreneurship. Their main goal is to make the world a better place. They don\'t work to make big profits or wealth. Instead, these kinds of entrepreneurs tend to start nonprofits or companies that dedicate themselves to working toward social good. Innovative Entrepreneurship - Innovative entrepreneurs are people who are constantly coming up with new ideas and inventions. They take these ideas and turn them into business ventures. They often aim to change the way people live for the better. Hustler Entrepreneurship - People who are willing to work hard and put in constant effort are considered hustler entrepreneurs. They often start small and work toward growing a bigger business with hard work rather than capital. Their aspirations are what motivates them, and they are willing to do what it takes to achieve their goals. Imitator Entrepreneurship - Imitators are entrepreneurs who use others\' business ideas as inspiration but work to improve them. They look to make certain products and services better and more profitable. An imitator is a combination between an innovator and a hustler. They are willing to think of new ideas and work hard, yet they start by copying others. People who are imitators have a lot of self-confidence and determination. They can learn from others\' mistakes when making their own business. Researcher Entrepreneurship - Researchers take their time when starting their own business. They want to do as much research as possible before offering a product or service. They believe that with the right preparation and information, they have a higher chance of being successful. A researcher makes sure they understand every aspect of their business and have an in-depth understanding of what they are doing. They tend to rely on facts, data, and logic rather than their intuition. Detailed business plans are important to them and minimize their chances of failure. Buyer Entrepreneurship - A buyer is a type of entrepreneur who uses their wealth to fuel their business ventures. Their specialty is to use their fortunes to buy businesses that they think will be successful. They identify promising businesses and look to acquire them. Then, they make any management or structural changes they feel are necessary. Their goal is to grow the businesses they acquire and expand their profits. This kind of entrepreneurship is less risky because they are purchasing already well-established companies. SALIENT FEATURES OF ENTREPRENEURSHIP 1\. It is an art of correct practices is not governed by fixed absolute rules, thus, there is a constant change that denotes movement and innovation. As an art, entrepreneurship is dynamic - By the moment the economic activity changes, the political, social, and entrepreneurial activities will eventually change. 2\. It is a wealth-creating venture Profit - represents the excess income or revenue from the cost and expenses. Wealth - is defined as the abundance of money, property, or possession. It is created when the benefits derived by the owner in providing goods and services to the customers are abundant enough to cover the costs incurred by the business. \- Wealth is created when the benefits derived by the owner in providing goods and services to the customers are abundant enough to cover the costs incurred by the business. 3\. It provides valuable goods and services One essential principle in entrepreneurship is "not to sell waste to consumers but only valuable goods and services." The entrepreneur convinces the consumers that they gain more benefits than what they pay for the goods and services. 4\. It entails opening and managing the self-owned enterprise The entrepreneur opens his/her own business under the principle of entrepreneurship and it must be self-owned in order to qualify as an entrepreneurial endeavor. The entrepreneur is the owner and the manager must clearly set the goals of his/her business. He/she must have a definite answer to the question, "Where will my entrepreneurial venture be in five or ten years after?" As a future entrepreneur, you have to constantly plan for the course of your entrepreneurial endeavor. Planning does not cost anything but the benefit you will gain from exercising it can be rewarding. 5\. It is a risk-taking venture Risk is inherent in an entrepreneurial venture. Business Risk pertains to the risk in entrepreneurship. ENTREPRENEURIAL PROCESS Stage 1: Startup Idea development Opportunity recognition Identification of market opportunity Stage 2: Development Formulation/ refinement of the concept Designing Business Model, plan, goals, launch team, and operational structure Creation of prototype product to fit market (sample or model for customer feedback) Further research Stage 3: Resourcing Gathering pertinent resources, such as human and financial capital, investors, facilities, equipment, and transportation Establishing connections, networks, and logistics Further research Stage 4: Market Entry Assessing management structure and needs, adjusting as necessary Managing cash flow Launching the entity Monitoring progress Further research Stage 5: Growth Managing the venture Making key adjustments, as needed Further research Stage 6: Maturity Strengthening market position Awareness and willingness to change Reaping return on investment (ROI) Stage 7: Harvest Identifying what the entrepreneurial team, and investors, want out of the venture, their ROI Planning for your future: What's next on your entrepreneurial journey? Stage 8: Exit Exit strategy and plan Transition to the next generation of owners Stage 9: Rebirth Redesigning or creating a new venture Bringing in a new entrepreneurial team or the team from the previous venture ROLES OF ENTREPRENEURSHIP 1\. Income Generation and Fewer Social Problems Successful entrepreneurship activities increase the income level of the average person and the standard of living in the community. Individuals who search for business opportunities usually create wealth through entrepreneurship. This wealth plays a considerable role in the development of the nation. If people are more employed, more people pay taxes, which means income for the government. It also means that the crime rate will go down and the country can become a safer location with more tourists willing to visit the country. If tourism increases, more job opportunities will become available and more people will be employed. Entrepreneurs can also attract more foreign investment, which in return can also create more job opportunities. 2\. Employment Opportunities Entrepreneurship not only offers self-employment opportunities but also creates employment for others. Self-employment offers more job satisfaction and flexibility in the workforce. Such job creation initiatives utilize the human resources of the particular country and help natural talent materialize. 3\. Personal Challenge Entrepreneurship is a challenging task, but if successful, the rewards are worth the effort. Rewards for an entrepreneur can be both financial and personal. The entrepreneur gains self-satisfaction and confidence as he or she succeeds. 4\. Improvements in Industry Entrepreneurship leads to the development of more industries, especially in rural areas or regions where there are very few economic activities. This does not only mean more goods and services, but also higher quality products, because of healthy competition between the different businesses. 5\. Higher Productivity and economic growth More industries can create higher production at lower prices. Entrepreneurship encourages the use of local materials to produce finished foods for domestic consumption, as well as for export. Entrepreneurship enables the country to produce more and more goods locally and thereby build its capacity and resources. If we change our raw materials into consumable goods we add value to our products, which means that we can now receive a much higher price and at the same time create more jobs. With new inventions and developments in technology, a nation can use its resources more effectively. 6\. Increases in exports and less dependent on imports Entrepreneurship leads to the development of new markets. If we produce more, we can export products that are not sold locally. This means that a country's products can also enter foreign markets. From time to time a country's government officials sign agreements with other countries to promote trade. These are opportunities that should be taken into account when we are planning and growing our new business. Currently, many developing countries (including small states) rely heavily on imports, especially from developed nations. This means that money flows out of the country. Exports must exceed imports in order to create an economic advantage. Earnings from exports inevitably stimulate the economy. DEFINITION This word was derived from the French verb "entreprendre", which means "to undertake". This is pinpointing to those who "undertake" the risk of the enterprise. The enterprise is created by an Entrepreneur and the process is called "Entrepreneurship". Entrepreneurs are innovators, willing to take risks and generate new ideas to make unique and profitable solutions to present-day problems. One characteristic of a savvy entrepreneur is recognizing the ability to identify a problem from an opportunity-identification perspective. We might identify feeling hungry as a problem, but an entrepreneur would identify the problem using an opportunity-identifying perspective by determining how the problem could be translated into an opportunity to create a new venture---perhaps combining the problem of feeling hungry between meals into a street kiosk or a vending machine with food choices or creating a new snack that is nutritious, satisfying, and portable. Innovation - any new idea, process, or product, or a change to an existing product or process. Patent - a legal grant of protection for an inventor over the rights, usage, and commercialization of an invention for a set time period. Corporate Entrepreneurs - large corporations funded the development of new ideas, opportunities, or ventures through formal research and development processes that focused on the corporations' own strategies and goals. CHARACTERISTICS OF AN ENTREPRENEUR Based on the study conducted by the Small Enterprise Research and Development Foundation (SERDF) of the Department of Trade and Industry (DTI), there are ten entrepreneurial characteristics grouped into three major clusters: Achievement Cluster - Consists of entrepreneurial character traits that are directly related to the entrepreneur's desire to be an achiever in the field of entrepreneurship. Opportunity-seeker Committed Persistent Risk taker Efficient and Quality-oriented Planning Cluster - Set of characteristics of successful entrepreneurs that basically support the character traits in the achievement cluster. Goal-setter Information-seeker Systematic in planning and monitoring Power Cluster - Includes a set of character traits that reflect the degree of interpersonal relations maintained by successful entrepreneurs in the community. Moreover, this also defines how entrepreneurs project themselves in the business community. Persuasive and Positive Networker Self-confident ENTREPRENEURIAL SKILLS Skills - personal abilities to do things well. These come from the totality of knowledge, practice, and experience of a person. Sources of Skills: Knowledge, Aptitude, Practice/Experiences Entrepreneurial Skills - set of cognitive, technical, and interpersonal skills required in the practice of entrepreneurship 1\. Cognitive Skills - The mental ability of the entrepreneur to learn new things, generate new ideas, and express knowledge in both oral and written forms 2\. Technical Skills - Focus mainly on the mechanical or practical aspects of a person. It is the external replica of the person\'s cognitive skills 3\. Interpersonal Skills - Relationship and interaction of the entrepreneur with workers, suppliers, creditors, customers, and other members of the community. CAREERS IN ENTREPRENEURSHIP Business Consultant - with expertise in the field of Entrepreneurship, he can be a very good source of advice to other entrepreneurs and would-be businessmen. Teacher - a graduate of entrepreneurship can use his/her knowledge in teaching Researcher - the entrepreneur can be employed as a researcher by an enterprise Sales - the entrepreneurship graduate can apply as a salesman Business Reporter - the entrepreneur is an expert in the field, can be employed as a field reporter. SOCIAL ENTREPRENEURSHIP This is all about recognizing social problems and achieving social change by employing entrepreneurial principles, processes, and operations. It is all about making research to completely define a particular social problem and then organizing, creating, and managing a social venture to attain the desired change. The change may or may not include a thorough elimination of a social problem. It may be a lifetime process focusing on the improvement of the existing circumstances. SOCIALPRENEUR - He/She is a person who sets out on an entrepreneurial venture with the intention of addressing social issues and contributing to the social good. These businesses can have a for-profit, non-profit, or hybrid model, but funds are typically used to support operational costs and develop programs to support target markets. Social Entrepreneurs are: 1\. are mission-driven. - They are dedicated to serving their mission of delivering social value to the underserved. 2\. act entrepreneurially - through a combination of characteristics that set them apart from other types of entrepreneurs. 3\. act within entrepreneurially oriented organizations - that have a strong culture of innovation and openness. 3\. act within financially independent organizations - that plan and execute earned-income strategies. The objective is to deliver the intended social value while remaining financially self-sufficient. This is achieved by blending social and profit-oriented activities to achieve self-sufficiency, reduce reliance on donations and government funding, and increase the potential of expanding the delivery of proposed social value. IMPORTANCE OF SOCIAL ENTERPRENEURSHIP 1\. You will be an inspirational source of impact "Social enterprises fulfill a pressing desire to work with purpose and align people's efforts with their values." A growing number of companies already started to enhance the link between purpose and work. Social enterprises, however, truly fulfill this pressing desire to work with purpose and align people's efforts with their values. Even better: beliefs stating that "doing good" cannot be turned into a viable business finally fade away. So yes, you can survive, financially speaking, while tackling a social or environmental issue. 2\. You will respond to customers' needs It is true that social enterprise's customer segments can be tough to handle because there are often not only the clients' but also the beneficiaries' needs to fulfill. Moreover, as the former segment is allowing the social business to serve the latter, there is a balance to be worked out. Take the example of a social grocery as Eis Epicerie in Zolwer (LU) that has regular clients paying a fair price for local and fair trade products. Enabling the beneficiaries of the social office can access these products for an affordable amount. However, the current trend for environmentally friendly and ethical products dispels doubts about the lack of opportunities for social businesses to be profitable. In brief, as long as there is a need to fulfil and a viable business to develop, there's no reason for you to shy away from the customer segment challenge. 3\. Relationships beyond the economic purpose Social enterprises also have the ability to build strong relationships between individuals in social and economic networks. As opposed to traditional commerce and other business connections, social relations facilitate exchanges and are nourished mainly by emotional support provided not only to people in need but also to entrepreneurs. By the same token, sharing information and resources amongst communities can be beneficial to similar social groups from different parts of the world. For instance, international humanitarian initiatives like fair trade have proved that social entrepreneurship can also help create networking opportunities between two or more countries and reinforce those who are being economically and socially marginalized 4\. A more responsive business to create economic and social value This fast-growing sector can solve social problems and exploit new market opportunities more responsively than traditional businesses. Social enterprises do not rely only on the priorities of governments and that is why they can respond to social problems more efficiently. Additionally, not depending on limited funds from official institutions make it easier to meet the needs of our society. What is more, being change agents for the community and significantly contributing to the global economy, social entrepreneurs deliver solutions in a way the State does not. This is also why social entrepreneurship is important --it offers alternative solutions when the administration is not acting effectively to supply urgent needs. 5\. A social mission to make the world a better place Going by the motto "do well by doing good", social value and social change are at the heart of any social enterprise operation. Monetary profit becomes just a tool for entrepreneurs to accomplish people-centered goals. Certainly, social entrepreneurship is more than an economic activity --it gives society positive world-changing solutions at a time when we need them. Social entrepreneurship matters because it maximizes social benefits. Entrepreneurs from the third and fourth sectors consider it as their obligation to give back to the community. And to do so, they find unique ways of creating sustainable solutions to either global or local pressing social issues such as healthcare, homelessness, or child labor.