Entrepreneurial Mindset PDF

THE ENTREPRENEURIAL production and distribution MINDSET processes. MEGA AND MICRO -​ The term “entrepreneur" comes ENTREPRENEURS f...

THE ENTREPRENEURIAL production and distribution MINDSET processes. MEGA AND MICRO -​ The term “entrepreneur" comes ENTREPRENEURS from the French word -​ Both started from opportunities entreprendre which means " to facing them. undertake”. -​ Given this, Peter Ducker (1985) -​ It is a reference to individuals in his book Innovation & who have initiated the Entrepreneurship, emphasizes establishments of business the “discipline” in the process of enterprises. starting and managing a -​ In his classic work “The Theory of business. Economic Development", Joseph ENTREPRENEURIAL PROCESS Schumpeter emphasized the role 1.​ Discovery of entrepreneurs in the process of -​ Refers to the recognition of a economic transformation. business idea or the detection of TYPES OF ENTREPRENEURS opportunities that could save 1.​ Mega Entrepreneurs money for the entrepreneurs. -​ Individuals who have generated 2.​ Development of a Business substantial value and profits from Concept innovations in a very short period -​ Gives more details on how the of time. general business idea can be -​ Individuals who are willing to realized. absorb huge risks in their 3.​ Organizing Resources business ventures. -​ Describes the process of 2.​ Micro Entrepreneurs identifying, sources, and -​ Although they also initiate financing human, nonhuman, and business enterprises, the other resources needed for the value-added and profits they conduct of business. make are limited. 4.​ Implementation -​ Some introduced innovations in the form of changes in their  -​ Is the process of carrying out the -​ The wealth of the entrepreneurs business plan. is also an important factor. 5.​ Reaping the Returns 4.​ Risk Appetite -​ Pertains to strategies related to -​ Associated with uncertainties in the expansion of the business business operation. firm. -​ These uncertainties can threaten -​ It also covers mechanisms for the survival and stability of a addressing conditions in the business enterprise. business environment that may ENTREPRENEURIAL THREATS AND affect the future of the firm. INTENTIONS (INTERNAL FACTORS) ENTREPRENEURIAL TRAITS AND 1.​ Demographics CREATION OF VALUE-ADDED -​ Gender, marital status, age, 1.​ Level of Education employment status. -​ Studies have shown that 2.​ Personal Traits entrepreneurs need some formal -​ Self-confidence, determination, education to be able to seize the enthusiasm, and other positive opportunities presented by human qualities. inventions, innovations, and other 3.​ Psychological Traits technological developments. -​ Need for achievement, risk 2.​ Employment Status appetites, acceptance for -​ Individuals who become vagueness, self-efficacy, and goal entrepreneurs in developed setting. countries are usually former Other Internal Factors: employees of companies in the 4.​ Individual Skills formal sector. 5.​ Prior Knowledge -​ Micro entrepreneurship are 6.​ Social Ties usually drawn from the pool of Note: the unemployed or GEM - Global Entrepreneurship Monitor underemployed. (EXTERNAL FACTORS) 3.​ Entrepreneurs Wealth 1.​ Environmental Support  -​ Government, Financial 2.​ Creative Thinking Institutions, and training -​ Bring about discoveries of new Institutions. ideas. 2.​ Environmental Influence -​ Not follow a systematic or -​ Regulatory Structure, patents, analytical process. protection of property rights, and 3.​ Strategic Thinking competitive environment. -​ Assess a current situation, which CHARACTERISTICS OF FILIPINO can be useful in the formulation ENTREPRENEUR of plans for the future. 1.​ Gender -​ Uses a logical systems in its -​ More females than males that are assessment (critical thinking). engaged in the early stages of RISK entrepreneurial activities in the -​ Can be described as uncertain Philippines. situations and developments that 2.​ Age can increase the probability of -​ Attracts more young individuals. loss or business failure. 3.​ Educational Attainment TYPES OF RISK -​ Almost half of entrepreneurs in 1.​ Internal Risk the early stage of development -​ pertains to danger coming from have finished secondary school. the management of resources of ENTREPRENEURIAL a business enterprise that may DECISION-MAKING imperil its operation. 1.​ Critical Thinking Example: Liquidity and financial risks, -​ Refers to the systematic and failure to have the best talents rational way of providing an 2.​ External Risk answer to a question. -​ Threats coming from various -​ Many tools in analysis make use environments outside the of analytical thinking. business firm. Example: SWOT (Strengths, Example: Lethargic economy, increased Weaknesses, Opportunities, and competition Threats) The process of identifying, assessing, and responding to the risk is called -​ Driven by passion, they are risk management. attracted to discover satisfaction. ENTREPRENEURIAL 3.​ Entrepreneurial Gut Game DECISION/COGNITIVE -​ Being intuitive. ADAPTABILITY -​ Also means confidence in one’s -​ Refers to the ability of individuals self and the firm belief that to be involved in the process of everything you aspire can be producing several ways of reached. decision-making. SOURCES OF OPPORTUNITIES -​ It expects that an entrepreneur 1.​ Changes in the Environment should have self-control in -​ Entrepreneurial ideas arise when making decisions. changes happen in the external environment. RECOGNIZE A POTENTIAL 3 TYPES OF EXTERNAL MARKET ENVIRONMENT ENTREPRENEURIAL IDEAS ​ Physical Environment -​ The creation of entrepreneurial a.​ Climate ideas leads to identification of b.​ Natural Resources entrepreneurial individuals. c.​ Wildlife ​ Societal Environment a.​ Political Forces b.​ Economic Forces c.​ Sociocultural Forces ESSENTIALS IN ENTREPRENEURS d.​ Technological Forces OPPORTUNITY-SEEKING ​ Industry Environment 1.​ Entrepreneurial Mind Frame a.​ Competitors -​ To see things in a very positive b.​ Customers and optimistic way in the midst of c.​ Creditors difficult situations. d.​ Employees 2.​ Entrepreneurial Heart Frame e.​ Government f.​ Suppliers  2.​ Technological Discovery and 1.​ Buyers Advancement -​ has a strong and magnified -​ Sees possibility of business bargaining power. opportunities in any new 2.​ Potential New Entrants discovery or because of the use -​ Defined as companies or of latest technology. businesses that have the ability 3.​ Government’s Thrust, to penetrate to enter into a Programs, and Policies particular industry. -​ Priorities, projects, programs, and 3.​ Rivalry Among Existing Firms policies of the government are -​ Business organizations are also good sources of ideas. competing with each other in 4.​ People’s Interest particular markets. -​ Interest, hobbies, and Characterized to the following preferences of people are rich factors: sources of entrepreneurial ideas. a.​ Diversity of rivals 5.​ Past Experiences b.​ Number of competing firms -​ Expertise and skills developed by c.​ Characteristics of the products or a person who has worked in a services particular field may lead to the d.​ Increased capacity opening of a related business e.​ Amount of fixed costs enterprise. f.​ Rate of industry growth FORCES OF COMPETITION MODEL 4.​ Substitute Products -​ Also known as the “Five Forces -​ Serves the same purpose as of Competition". another product in the market. -​ Regardless of what product or Can be a big threat in the industry services you have, competition is environment if the following factors are always present. notices: COMPETITION a.​ Switching cost is low -​ Trying to get or win something. b.​ Preferences and tastes of the FIVE FORCES OF COMPETING customers easily change. WITHIN THE INDUSTRY  c.​ Product differentiation is highly VALUE PROPOSITION (VP) noticeable. -​ a business or marketing d.​ The quality of substitute products statement that summarizes why a dramatically improves. consumer should buy a e.​ The price of substitute products is company’s product or use its substantially lower. service. 5.​ Supplier In creating Value Proposition, -​ One that provides something that entrepreneurs will consider the basic is needed in business operations. elements: -​ Supplies and services are ​ Target Customer unstable and the intensity of the ​ Needs/Opportunities threat is strong. ​ The name of the product ​ Name of the enterprise/company RECOGNIZE AND -​ it should be truthful and that it UNDERSTAND THE MARKET should establish credibility to the consumers. UNIQUE SELLING PROPOSITION TARGET MARKET (USP) -​ aims to determine the buyers with -​ is what makes your product or common needs and service special and different from characteristics. the competition. -​ more likely to buy from you than -​ present the best feature of your other markets. product or services that is FOUR DIFFERENT TYPES OF different from other competitors. SEGMENTATION Some tips on how to create an effective 1.​ Geographic Segmentation selling proposition to the target -​ The total market is divided customers are: according to geographical ​ Identify and rank the uniqueness location. of the product or service Variable to consider: character. ​ Be very specific. Climate Culture ​ Keep It Short and Simple (KISS)  Dominant Ethnic Density(rural or -​ the specific characteristics that Group urban) the customers need from a 2.​ Demographic Segmentation product or service. -​ divided based on consumers. Types of Customer Requirements: Variables to consider: 1.​ Service Requirement Gender Education -​ an intangible thing or product. 2.​ Output Requirement Age​ Religion -​ things that can be seen. Income Ethnic Group MARKET SIZE Occupation Family Size -​ the size of the arena where the 3.​ Psychological Segmentation entrepreneurs will play their -​ divided in terms of how business. customers think and believe. ​ Estimate the potential market Variables to consider: -​ appropriate numbers of Needs and Wants Knowledge and customers that will buy the Awareness product or avail your services. Attitudes Brand Concept ​ Estimate the customers who Social Class Lifestyle probably dislike to buy your product or avail the services. Personality Traits ​ Estimate the market share, that 4.​ Behavioral Segmentation means plotting and calculating -​ divided according to customer the competitors market share to behavior patterns as they interact determine the portion of the new with a company. venture. Variables to consider: Perceptions Benefits MARKET RESEARCH Knowledge Loyalty What is a MARKET RESEARCH? Reaction Response -​ or Marketing Research Process, CUSTOMER REQUIREMENTS is the process of gathering, analyzing and interpreting the information about the products or  the services to be offered for Step 4: Analyze and interpret the results sale. DATA COLLECTION -​ involves the gathering of data to -​ The most valuable tool in any determine vital information such type of research study. as the following: TIPS IN COLLECTING DATA a.​ Who will buy the product or ​ Organize collected data as soon service; as it is available. b.​ What is the size of the potential ​ Know what message you want to market; get across and then collect data c.​ What price should be charged; that is relevant to the message. d.​ What is the most appropriate ​ Collect more data. distribution channel; and ​ Create more interesting or e.​ What is the most effective significant data. promotion strategy to inform and THREE DIFFERENT DATA reach potential customers? COLLECTION TECHNIQUES STEPS IN DOING A MARKET 1.​ Surveys (Questionnaire) RESEARCH -​ most common way to gather Step 1: Define the purpose or objective primary research with the use of of the market research questionnaires or interview -​ To find out what people think of schedule. the product or service. 2.​ Interviews Step 2: Gather data from secondary -​ typically done in person between sources the researcher/entrepreneur and -​ Utilizing readily available and free a respondent where the secondary data sources, such as researcher asks pertinent internet resources, government questions. agencies, and publications. -​ normally last from 15 to 40 Step 3: Gather data from primary minutes. sources ​ Personal Interviews -​ Gathering new information -​ traditional method of conducting through methods like interviews. an interview.  ​ Telephone Interviews -​ Hair Styling -​ are less expensive and less b.​ Professional Services time-consuming but the -​ Engineering disadvantages are that the -​ Accounting response rate is not as high as -​ Consultancy the face-to-face interviews. 2.​ PLACE 3.​ Focus Group Discussion -​ called as the distribution channel. It can be moderated group -​ includes any physical stores as interviews and brainstorming well as virtual stores or online sessions. shops on the internet. -​ The length of each session is ​ Channel 1: Direct Marketing between 90 and 120 minutes. -​ reach customers directly. -​ 8 to 10 participants per group. ​ Channel 2: One Intermediary -​ semi-structured or open-format -​ a retailer is an intermediary or discussion. middleman. ​ Channel 3: Contains two 7P’S OF MARKETING AND stages between producer and BRANDING consumer -​ wholesaler and a retailer. 1.​ PRODUCT 3.​ PRICE -​ refers to any goods or services -​ value of money in exchange for a that are produced to meet the product or service. consumer’s wants, taste and In a commerce, price is determined by: preferences. a.​ a buyer is willing to pay. TYPE OF GOODS b.​ a seller is willing to accept. ​ Consumer Goods THE DIFFERENT PRICING -​ bought by individuals. STRATEGIES AND ITS DEFINITION ​ Business Goods 1.​ Penetration Pricing -​ bought by businesses. -​ The price charged for products SERVICES and services is set artificially low. a.​ Consumer Services 2.​ Skimming Pricing -​ Lawn Care -​ charge a higher price than slowly 11.​ Value Based Pricing lower the price. -​ prices are set primarily on the 3.​ Competition Pricing consumer's perceived value. -​ a seller uses prices of competing 4.​ PROMOTION products as a benchmark. -​ complete set of activities, which 4.​ Product Line Pricing communicate the product, brand -​ reviewing and setting prices for or service to the user. multiple products. PROMOTIONAL MIX 5.​ Bundle Pricing 1.​ Advertising -​ placing several products or Radio Electronics services together in a single Print Word of Mouth package and selling for a lower price. Television 2.​ Public Relation (PR) 6.​ Premium Pricing -​ presenting a positive image -​ setting the price of the product through various strategies to its higher. various constituents. 7.​ Psychological Pricing 3.​ Personal Selling -​ the practice of setting prices -​ an individual salesperson sells a slightly lower than rounded product, services or solution to a numbers. client. 8.​ Optional Pricing FIVES STAGES OF PERSONAL -​ earns more through cross-selling SELLING products along with basic core ​ Prospecting products. -​ finding potential customers. 9.​ Cost Plus Pricing ​ Making First Contract -​ adding a mark-up to the cost. -​ reaching out to those potential 10.​ Cost Based Pricing customers. -​ a fixed sum or a percentage of ​ The Sales Call the total cost is added (as income -​ talking to the customer about or profit) to the cost of the your product. product.  ​ Objection Handling -​ are the ultimate marketing -​ dealing with any concerns or strategy. They sell and push the doubts. product. ​ Closing the Sale -​ are one of the most important -​ getting the customer to actually elements of the marketing mix buy your product. today. PROMOTION 6. PACKAGING -​ any initiatives undertaken by an -​ refers to the outside appearance organization to promote an of a product and how it is increase in sales, usage or trial of presented to the customers. product or services. ​ Natural Deterioration SALES PROMOTION TECHNIQUE -​ caused by the interaction of products with water, gases, and Free Gifts Customer Contest fumes. Free Samples Special Pricing ​ Physical Protection Free Trial -​ include improving protection, 1.​ Direct Marketing internal product protection and -​ A promotional method that reducing shock damage that is involves presenting information caused by vibration, snagging, about your company product or friction and impact. services to your target ​ Protection customers. -​ a major function of packaging is 5. PEOPLE to provide for the effects of time -​ Your team, your staff that make it and environment for the natural happen for you, your audience, and manufactured products. and your advertisers are people ​ Safety who are involved in the product -​ is a special kind of protective or services whether directly or packaging required for products indirectly. that are harmful to those who transport them or use them. ​ Waste Reduction  -​ packaging also serves to reduce 2.​ Engineering Test the amount of waste especially in -​ This will ensure that the case of food distribution. packaging stands up under rural 1.​ Containment conditions. -​ involves merging of unit loads for 3.​ Visual Test shipping. -​ to ensure that the script is legible 2.​ Information and colors are harmonious. -​ The packaging conveys 4.​ Dealer Test necessary information to the -​ ensure that the dealers find the consumers. package attractives and easy to -​ The common packaging includes handle. general features of the products, 5.​ Consumer Test ingredients, net weight of the -​ to ensure favorable consumer contents, name and address of response. the manufacturer Maximum 7. POSITIONING Retail Price (MRP). -​ to create an image in the minds 3.​ Utility of Use of a target market. -​ refers to the packaging design to CONCEPTS OF POSITIONS enhance the convenience and 1.​ Functional Position way of use for the customers. -​ deal with solving problems PROMOTION providing benefits. ​ Companies use attractive colors, 2.​ Symbolic Position logos, symbols and captions to -​ deal with self image promote the product that can enhancement, ego identification, influence the customers. belongingness, social PACKAGING DECISIONS meaningfulness and affective 1.​ Packaging Concept fulfillment. -​ defines what packages should be 3.​ Experimental Position or do for the particular product in -​ deal with providing sensory or terms of size, shape, material cognitive stimulation. color, text and brand markets. STEPS OF THE POSITIONING PROCESS Step 1: -​ Confirms your understanding of market dynamics. (also called frame of reference) Step 2: -​ Identify your competitive advantages. -​ A competitive advantage is some trait quality, or capability that allows you to perform the competition. ​ Price ​ Feature ​ Benefits Step 3: -​ Choose your competitive advantages that define your Niche. -​ Your list of competitive advantages represents a set of possible positioning strategies you could pursue for your product, service, or brand.