Entrepreneurship PDF - Definition, Skills, and Filipino Examples

Entrepreneurship!! - a proactive process of developing a business venture to make a profit Involves: -​ seeking opportunities for a market -​ establishing and operating a business out of a opportunity -​ assessing its risks and rewards through close monitoring of the operations Soci...

Entrepreneurship!! - a proactive process of developing a business venture to make a profit Involves: -​ seeking opportunities for a market -​ establishing and operating a business out of a opportunity -​ assessing its risks and rewards through close monitoring of the operations Societal and Economic Benefits Benefits of Entrepreneurship 1.​ Produces more jobs 2.​ Amplifies economic activities of different sectors of society 3.​ Introduces new and innovative products and service 4.​ Improves people's living standards 5.​ Disperses the economic power and creates equality 6.​ Controls the local wealth and balances regional development 7.​ Reduces social conflicts and political unrest 8.​ Elicits economic independence and capital formation Entrepreneur!! ​ a unique individual who has the innate ability and extraordinary dedication to establish and manage a business, acknowledging all the risks and reaping its rewards. Famous Entrepreneurs in the Philippines ​ Henry Sy - SM ​ Tony Tan Caktiong - Jollibee ​ Socorro Ramos - National Bookstore ​ John Gokongwei Jr. - Robinsons, JC Summit Holdings Inc., CebPac, etc. ​ Edgar Jaruda Sia II - Mang Inasal ​ Mariano Que - Mercury Drugstore ​ Cresida Tueres - greenwich ​ Cecilio Kwok Pedro - hapee ​ Alfredo M. Yao - Zesto ​ Joe Magsaysay - Potato Corner  Five Levels of Entrepreneurial Development 1.​ The self-employed - people who does things in their way. They are the one in control. 2.​ The manager - people who delegate and hire potential employees to do the work. 3.​ The leader - people who enjoy seeing theirpeople flourish, stepping up and producing great results. 4.​ The investor - people who looks for opportunity for their business to grow. 5.​ The true entrepreneur - people who now aim excellence in their work. (Idealization, Visualization, Verbalization, and Materialization) Common Traits that an Entrepreneur Should Have: 1.​ Proactive - they should address issues, problems, and challenges before they come. 2.​ Agents of Change - they see opportunities in hopeless and complex situations 3.​ Risk takers - they have to consider the potential various threat they may encounter 4.​ Have a sharp eye for opportunities - They know how to assess the net cause and effect of an opportunity and decide intelligently. 5.​ Sociable - They know how to establish relationship with the most important assets of the company. 6.​ Networkers - they know the key people to connect with 7.​ Decisive - they do not leave an issue unsolved without a disposition 8.​ Balanced - they should have a balance between the analytical and the creative side 9.​ Innovative - they do not stop improving and thinking of new and worthwhile ideas for their business. Core Traits that an entrepreneur should develop: 1.​ Leaders - to be successful leaders, they must be a source of inspiration for their employees 2.​ Communicators - communication channels between entrepreneurs and their employees or customers should always be open to ensure the smooth flow of operations in their business. 3.​ Specialist - they should be expert in their chosen business. When asked, they can easily answer without relying on their people. 4.​ Problem Solvers - they possess critical thinking skills and look at problems as challenges or puzzles that they need to solve. Most Common Small Business in the Philippines 1.​ Sari-sari Store 12.​Spa, Gym, and Nail care 2.​ Rice Retailing Business 3.​ Food cart Business 13.​Video and Photography 4.​ Printing Business Business 5.​ Buy-and-Sell business 14.​Tutorial Business 6.​ Street Food Business 15.​Baking Business 7.​ Flea Market Business 16.​Website development and (Tiangge) design/blogging 8.​ Online Business Selling 17.​Direct Selling Business 9.​ Cellphone Loading 18.​Car wash and car care Business Business 10.​Laundry and Dry Cleaning 19.​Bar, cafe and restaurant Business 20.​ Water station and LPG 11.​ Hair-styling and Make-up Station Business FRANCHISE Franchising -​ a business arrangement wherein the franchisor, who is the owner of the business, acquires distribution centers through the franchises or the affiliated dealers. Top 10 Best Franchise in the Philippines 1.​ Jollibee 25 - 32M 2.​ McDonald's 40 - 60M 3.​ Shell 5 - 8M 4.​ 7 Eleven - 3.5 - 5M 5.​ LBC 6.​ TGP 600 - 800K 7.​ KFC 19 M 8.​ PCSO Lotto 500k - 1M 9.​ Shakey's - 18 - 25M 10.​Pizza Hut 25 -35M The Entrepreneurial Process 1.​ Opportunity and spotting assessment - entrepreneurs take note of interesting trends in their environment. 2.​ Developing a Business Plan - a business plan is comprehensive paper that details the marketing, operational, human resource, financial strategic direction, and tactic of the business. 3.​ Determining the capital needed - calculate the resources needed to establish the business. 4.​ Running the Business - the entrepreneur should use the resources allocated for new venture. Scanning the Marketing Environment -​ the starting point of any new venture that involves understanding and knowing the intricacies of the microenvironment 3s Seeking, Screening, and Seizing -​ the entrepreneur should use the resources allocated for new venture S1 Seeking The Opportunity Opportunity seeking - is the step and is the most difficult process of all due to the number of options that the entrepreneur will have to choose from. ​ Microenvironmental Sources -​ STEEPLED s - sociocultural t - technological e - economic e - environmental p - political l - legal e - ethical d - demographic -​ Ethical Marketing 1.​ Empathy 2.​ Honesty 3.​ Transparency 4.​ Promise Keeping 5.​ Sustainability -​ Demographic Factors 1.​ age 2.​ gender 3.​ income level 4.​ geographic location 5.​ family structure 6.​ religion and ethnicity 7.​ occupation and educational level -​ Industry - the source of current trends on what is happening in the industry where the future business belongs.  -​ New Discovery or knowledge - new trends that can be the core business model of a new venture. -​ Futuristic Opportunities - projected opportunities that can possibly affect new business while in the running MICROMARKET -​ consumer preferences, interests, and perception -​ competitors -​ unexpected opportunities from the customers -​ talents, hobbies, skills, and expertise Irritants in the marketplace such as deterrents, problems, complaints, and delays. -​ location Methods of Generating Ideas 1.​ focus group discussion 2.​ brainstorming 3.​ brainwashing or internet brainstorming 4.​ problem inventory analysis S2 Screening Opportunity Opportunity screening - is the process of cautiously selecting the best opportunity -​ Internal Intent - the main objective that the business will accomplish in the entrepreneur’s life -​ External Intent - will address the compelling needs of the target audience. Business Opportunity Elements -​ has superior value to customers -​ solves a compelling problem, issue, a need, or a want -​ a potential cash cow -​ matches with the entrepreneur's skills, resources, and risk appetite S3 Seizing the Opportunity Opportunity Seizing - the “pushing through” of the chosen opportunity Innovation - positively improving an existing product or service, and it is a key driver for economic growth. Three Types of Innovation 1.​ Breakthrough Innovation 2.​ Technological Innovation 3.​ Ordinary Innovation Product or Service Planning and Development Process 1.​ Idea stage - the entrepreneur determines what are the feasible product or services that will perfectly quit the opportunity 2.​ Concept Stage - The developed idea will undergo a consumer acceptance stage 3.​ Product Development Stage - the actual product samples will be given or rendered to potential customers 4.​ Test Marketing - actual sales result will be the foundation of the consumer's acceptance level 5.​ Commercialization - known as the launch stage