Entrepreneurship 1st Quarter PDF

1st Sem | 1st Quarter | Reviewer Entrepreneurship Self-critical – learns from his mistakes and - Entrepreneur was derived from the French from experiences of others word “entreprendre” means to undertake...

1st Sem | 1st Quarter | Reviewer Entrepreneurship Self-critical – learns from his mistakes and - Entrepreneur was derived from the French from experiences of others word “entreprendre” means to undertake A planner – collects information, prepares a - Entrepreneurs are innovators plan, and monitors performance. - Process of actions of an entrepreneur who Risk taker – willingness to take risk (to gain is always in search of something new to or loss income) exploit new ideas B. Environmental Factors - Enterprise is created by an entrepreneur Political Climate – opinions of a political and the process of its creation is called society at a particular time. Entrepreneurship Legal System – existing law pertaining - Describes activities within a firm or large business (corporation law, employment law, organization taxation) Economic and Social Conditions – Relevance of Entrepreneurship availability of food, education, healthcare, 1. Development of Managerial Capabilities drug problem, unemployment & crime levels - Entrepreneur studies a problem, identifies Market Situation – size and growth trends of its alternatives, compares the alternatives your market, what you will face in terms of in terms of cost and benefit implications, competition, critical issues that affect the and finally chooses the best alternative. ability to sell products. 2. Creation of Organization - Entrepreneurs assemble and coordinate Types of Entrepreneurs physical, human and financial resources 1. Innovative entrepreneurs – have the ability and direct them towards achievement of to think newer, better and more economical objectives. ideas 3. Improving Standard of Living 2. Imitating entrepreneurs – who follow the - Creating productive organizations, path shown by innovative entrepreneurs entrepreneurship helps in making a wide 3. Fabian entrepreneurs – skeptical about the variety of goods and services available to changes to be made in the organization. They the society. do not initiate any inventions but follow only 4. Means Of Economic Development after they ae satisfied with its success rate - Involves creation and use of innovative 4. Social entrepreneurs – they drive social ideas, maximization of output from given innovation and transformation in various resources, and development of managerial fields skills. Career Opportunities for Entrepreneurship Factors Affecting Entrepreneurship Graduates A. Personality Factors 1. Business consultant – who can go to a Initiative – does things before asked clients site, identify problems and fix them Proactive – identifies and utilizes 2. Sales – can work in sales or run the opportunities department of any businesses Perseverance – works against all odds to 3. Research and Development – a good overcome obstacles quality to work in R&D is a training and Problem solver – develops and maintains education on understanding of business relationships with customers and financers concepts, procedures, and practices and Persuasion – convinces customers and entrepreneurship financers to patronize his business 4. Not-for-profit fundraiser – being able to Self-confidence – makes decisions and raise funds requires understanding the stick to his decision importance of business and networking relationships  1st Sem | 1st Quarter | Reviewer 5. Teacher – those with entrepreneurial 5 stages of Entrepreneurial Process degree are qualified to teach the core Discovery – refers to the recognition of a subjects in SHS and teach students the business idea or the detection of entrepreneurial skills. opportunities 6. Recruiter – companies who uses recruiters Development of concept rely upon someone who is not just people- - gives more details on how the general savvy, but also, one who has an in-depth business idea can be realized business sense as well - suggest the preparation of a business plan 7. Business reporter – they can take a prime business plan – document that describes the position to take the lead in covering a local various external and internal elements involves business beat in starting or expanding a business Organization resources – describes the Entrepreneurial Process process of identifying, sourcing, and Joseph Schumpeter financing human, non-human and other - German: Feb 8, 1883 – Jan 8, 1950 resources needed for the conduct of - Author of “The Theory of Economic business Development” Implementation – process of carrying out - In his book, he emphasized the role of the business plan entrepreneurs in the transformation of Reaping the returns – pertains to strategies economic development related to the expansion of the business firm Role of entrepreneurs New products Entrepreneurial Leadership New processes - A mindset that inspires organization to work New market efficiently and encourage people to think New organization innovatively - “Entrepreneurs are individuals who have generated substantial value and profits Chris Roebuck from innovation in a very short period of - British economist time.” - Define entrepreneurial leadership “as Types of Entrepreneurs organizing group of people to achieve a Mega Entrepreneurs common goal using proactive - willing to absorb huge risks using enormous entrepreneurial behavior” amounts of capital in their business venture - contributed much in economic progress Characteristics of an Entrepreneur Micro Entrepreneurs 1. Effective communicators – they use this - They engage in micro and small businesses skill to convey ideas… as will as to listen as an alternative to formal employment actively to the ideas of others - They are short in funds and inadequate in 2. Visionaries – they know exactly where they skills want to go and how to get there 3. Optimistic – they have the ability to Peter Drucker envision a better future - German: Nov 19, 1909 – Nov 11, 2005 4. Innovators – they apply innovation and - Author of “Innovation and creativity to managing people and Entrepreneurship” businesses - Entrepreneurial process 5. Problem-solvers – have the ability to Entrepreneurial discipline assess and diagnose problems and solve Involves several stages from the them collaboratively awareness of an opportunity to the 6. Risk takes – experts in navigating realization of a business idea uncertainty and managing risk  1st Sem | 1st Quarter | Reviewer 7. Result-oriented – tend to be decisive and -Studies the competitors, market age, confident in taking charge of the business costumers, market size, competition - Can be done through surveys, interviews, Sources of Ideas for Entrepreneurial Venture group discussion 4 Major sources of Business Ideas 3. SWOT Analysis 1. From the Product - Usually undertaken to describe the state of - Entrepreneurs can source their business competition within an industry ideas from existing products or services - Strengths, weaknesses, opportunities, - Products are differentiated by shape, size, threats color, contents Annoyance-driven innovation – a situation Creativity wherein successful entrepreneurs introduce - Processes the does not follow systematic or new product due to their dissatisfaction analytical procedures but look at things at -KARL ULRICH different perspective 2. From the Process - Business ideas can arise from the process Creative Thinking of production and distribution - Processes that bring about discovery of new 3. From the Person ideas - the individual examines their business 1. Brainstorming interest, hobbies, skills, dreams, and even - Unstructured discussion of group to elicit their travels. ideas - Can be a source of business ideas 2. Problem Inventory Analysis - Examples: handicrafts, shirt printing, - Uses group discussion method to elicit preschools/training institution ideas from participant 4. From the Relationship Bargaining power of its competitors – lower - Individuals can source their entrepreneurial the selling, product differentiation ideas from families, relatives, friends, Bargaining power of suppliers – suppliers classmates, and neighborhood too can also provide business ideas to potential entrepreneurs Methods for Generating or Testing New Ideas Changes in government regulation – the Logical thinking ban on the use of plastic bags served as an - Refers to systematic and rational way of opportunity to produce ecological bags providing an answer to a question Sociodemographic changes – smaller o Systematic – follows a step in homes and living spaces can provide responding to an inquiry opportunities for smaller appliances and o Rational – follows the rules of logic furniture connecting relationship between Technological developments variables and conclusions) Methods: Logical thinking 1. Statistical Analysis - Systematic analysis of data generated from survey of individuals - Give the basic information of the population studied - Describe the trend in demand of particular product - Show key socio-economic variables 2. Market Analysis - Undertaken to know the various factors that affect the demand for a particular product