Entrepreneurship Handouts PDF

**[ENTREPRENEURSHIP]** ENTREPRENEURSHIP - is a key driver of [economic growth] and [job creation]. It provides many people with career opportunities that better fit their preferences than waged employment. In addition, self-employment or business start-up is a response by signifi...

**[ENTREPRENEURSHIP]** ENTREPRENEURSHIP - is a key driver of [economic growth] and [job creation]. It provides many people with career opportunities that better fit their preferences than waged employment. In addition, self-employment or business start-up is a response by significant numbers of people to job losses in the current global economic crisis. - It is a proactive process of developing [profitable] business venture. - It is the process of discovering [new ways] of combining resources. (Russell S. Sobel) ENTREPRENEUR - [Entrepreneur] is a French verb "entreprende" which means "to begin something, undertake." - **[Entrepreneur] is an enterprising person who discovers potentially profitable opportunities through innovation.** **ADVANTAGES OF BECOMING AN ENTREPRENEURS** 1. **OPPORTUNITY FOR GREATER FINANCIAL SUCCESS.** - Entrepreneurs have been shown to a mass even personal fortunes through the development of their companies. When you work for someone else, you are contributing to their financial future all of the time and to your own financial future to the extent that they decide. 2. **OPPORTUNITY TO BUILD EQUITY.** - When you own a business, you also own the means of production, which can develop into substantial value. This equity represents assets that can be sold to someone else or passed on to your heirs. You also have the opportunity to bring other family members into your firm and prepare for transition between generations. This is much more rewarding than receiving a gold watch at retirement from employment. 3. **ENTREPRENEURSHIP CREATES THE** **OPPORTUNITY FOR PHILANTHROPY.** - If you are financially successful you may choose to give away some of your wealth in the manner that you decide to help your community or favorite institutions. [Employees cannot give away the firm's money or assets. They belong to the owners of the firm, not to the employees]. Other contributions that entrepreneurs make result from their creating value. 4. **THE OPPORTUNITY TO HAVE CONTROL** **OVER YOUR LIFE AND JOB.** - It is not just the ability to say what hours you will work but it also involves every step in the operation of a business. This might include environmental sensitivity, social responsibility, and benefiting your own community in certain ways. When you are the boss, all decisions from design concept to job creation, sales, business operations, and customer relationship management ultimately circle back to the boss and his or her philosophy and motivations. 5. **EGO SATISFACTION** - Business entrepreneurs have great opportunities to be visible in their community. Membership in chambers of commerce, business awards, community boards, and other corporate boards of directors serve the personal esteem and satisfaction motivations of some entrepreneurs. - Entrepreneurs **boost economic growth by introducing innovative technologies, products, and services**. Increased competition from entrepreneurs challenges existing firms to become more competitive. Entrepreneurs provide new job opportunities in the short and long term. **WHAT MAKES SOMEONE AN ENTREPRENEUR?** **JOB OPPORTUNITIES** **[Job Opportunity]** is simply an opportunity for employment. When we say **[career]**, it is a long-term professional journey you may determine based on your **passions**. It is the path you embark upon to fulfil your professional goals and ambitions. A **career in entrepreneurship** can be made in virtually any field, depending on your interests. **[The following are some of the Job Opportunities for Entrepreneurship]** 1. **BUSINESS CONSULTANT** - They are those who can go to client site, identify problems and fix them. They asses and create solutions to help the company more efficiently meet its goal. Also known as management analysts, work in areas that include marketing, human resources, management, and accounting. 2. **SALES MANAGER** - Someone who knows how to represent a company, manage accounts and follow up leads. Their responsibilities include designing and implementing a strategic sales plan that expands company\'s customer base and ensure its strong presence. 3. **RESEARCH & DEVELOPMENT DIRECTOR** - Someone who understands business concepts, systems, procedures and practices. Looking for used facts and information, interpreting data and making conclusions, and recommending courses of action. They are responsible for controlling, coordinating and carrying out research in various company departments, guaranteeing the continuous innovation of products and work processes. 4. **FUNDRAISER** - Someone who raises money for a specific purpose and meant not to make profit but instead for maintaining the organization or toward the purpose for which it was created. They organize events, building networking relationships and raising money for a cause. They also may design promotional materials and increase awareness of an organization\'s work, goals, and financial needs. 5. **TEACHER** - These educators train their students to solve business problems, plan for future growth, and strategize how to run a business efficiently and effectively. Many business educators have experience working in business as well as a background in education, transferring the skills and knowledge students need to become qualified business professionals. 6. **TALENT RECRUITER** - Someone whose job is in sourcing, attracting, recruiting, interviewing, and on-boarding employees to an organization. Someone who is people savvy and has an in-depth business sense as well. 7. **BUSINESS REPORTER** - Someone who can write articles in a prime position to take the lead on covering a local business beat. They write breaking news and business stories in unique and interesting ways to increase readership. 8. **NEW VENTURE CREATOR** - Someone who launch a company, start a new venture in a family enterprise or commercializing a technology. They are entrepreneurial people whose primary role is in creating new business via creating new start-ups or scaling growing companies, having significant and direct stake in the actual business success. **[RECOGNIZE A POTENTIAL MARKET]** **The creation of an entrepreneurial ideas leads to the identification of entrepreneurial opportunities, which in turn results in the opening of an entrepreneurial venture.** **[ESSENTIALS IN ENTREPRENEUR'S OPPORTUNITY SEEKING]** 1. **[Entrepreneurial mind frame].** This allows the entrepreneur to see things in a very positive and optimistic way in the midst of difficult situation. Being a risk - taker, an entrepreneur can find solution when problems arise. 2. **[Entrepreneurial heart flame].** Entrepreneur\'s driven passion, they are attracted to discover satisfaction in the act and process of discovery. Passion is the great desire of an entrepreneur to achieve his/her goals. 3. **[Entrepreneurial gut game].** This refers to the ability of the entrepreneur of being intuitive. This also known as intuition. The gut game also means confidence in one's self and the firm believes that everything you aspire can be reached. **[SOURCES OF OPPORTUNITY]** 1. **A. [CHANGES IN THE ENVIRONMENT]** Entrepreneurial ideas arise when changes happen in the external environment. A person with an entrepreneurial drive views these changes positively. **External environment** refers to the physical environment, societal environment, and industry environment where the business operates. 1.1 **[The physical environment includes ]** a\. **Climate**- the weather conditions. b\. **Natural resources**- such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain. c\. **Wildlife**- includes all mammals, birds, reptiles, fish, etc., that live in the wild. 1.2 **[The Societal environment includes the various forces like:]**\ a. **Political forces**- includes all the laws, rules, and regulations that govern business practices as well as the permits, approvals, and licenses necessary to operate the business. b\. **Economic forces**- such as income level and employment rate.\ c. **Sociocultural forces**- customs, lifestyles and values that characterize a society.\ d. **Technological environment**- New inventions and technology innovations. 1.3 **[The industry environment of the business includes]**: a\. Competitors b\. Customers c\. Creditors d\. Employees e\. Government f\. Suppliers 2. **[TECHNOLOGICAL DISCOVERY AND ADVANCEMENT]** - A person with entrepreneurial interest sees possibility of business opportunities in any new discovery or because of the use of latest technology. 3. **[GOVERNMENT'S THRUST, PROGRAMS, AND POLICIES]** - The priorities, projects, programs, and policies of the government are also good sources of ideas. 4. **[PEOPLE'S INTEREST]** - The interest, hobbies, and preferences of people are rich source of entrepreneurial ideas. Like the increasing number of Internet Café at present could be lead to the strong attachment of young people to computers. 5. **[PAST EXPERIENCES]** - The expertise and skills developed by a person who has worked in a particular field may lead to the opening of related business enterprise. **[FORCES OF COMPETITION MODEL]** It is also known as the **"*five forces of competition*,"** An industry environment is a competitive environment. Regardless of what product or services you have, competition is always present. **Competition** -- it is the act or process of trying to get or win something. **These are the five forces competing within the industry:** Buyers Potential new entrants Rivalry among existing firms Substitute products Supplier 1. BUYER - The *buyers* are the one that pays cash in exchange to your goods and services. For example, the influenced of the price or in the bargaining strategy. The buyer has a strong and magnified bargaining power. 2. NEW ENTRANTS - *A new entrant is* defined as the one who enters something. For example, the level of capital requirements, if the business requires huge capital, new entrants should decline to join the business. This gives a threat to the business. 3. RIVALRY AMONG EXISTING FIRM - *Rivalry* is a state or situation in which people or groups are competing with each other. For example it depends on the Marketing strategy of your competitor, like giving freebies and special offers. 4. SUBSTITUTE PRODUCTS A substitute product can give a big threat in the industry environment if the following factors are notice:\ a. Switching cost is low.\ b. Preferences and tastes of the customers easily change.\ c. Product differentiation is highly noticeable\ d. The quality of substitute products dramatically improves.\ e. The price of substitute product is substantially lower. 5. SUPPLIERS\ - The *Suppliers* are the one that provide something that is needed or wanted. For example if the supply and services being offered is unstable or keep. The intensity of the threat is strong in this kind of the competitive force in the industry. This can be notice if there is the presence of the following factors: a\. The supplier has the ability for forward integration. b\. Suppliers in the industry are few, but the sales volume is high. c\. Substitute products are not readily available in the market d\. The switching cost is very high. e\. The product or service is unique. **RECOGNIZING A POTENTIAL MARKET:** **ANALYZE THE MARKET NEED** What is the definition of Market? - It is a place where two or more people can gather to facilitate the trade of goods and services - It is the total of all the buyers and seller in the area under consideration.  Wants vs Needs: What is the Difference? - FIbyREI  **WHAT IS MARKET ANALYSIS** - **A market analysis is a quantitative and qualitative assessment of a market. It examines the [market size](https://blog.alexa.com/marketing-research/market-size), various [market segments](https://blog.alexa.com/marketing-research/market-segmentation), customer buying patterns, the competition, and the economic environment.** **WHAT IS MARKET SIZE?** - **A Market size is the number of individuals in a certain [market segment](https://blog.alexa.com/marketing-research/market-segmentation) who are potential buyers. Companies should determine market size before launching a new product or service.** - **Understanding market size helps you distinguish between two categories: the addressable market, which is the total revenue opportunity for your product or service; and the available market, which is the portion of the addressable market for which you can realistically compete.** **WHAT IS MARKET SEGMENTATION?** - **Market segmentation is the process of dividing a [target market](https://blog.alexa.com/marketing-research/target-market) of potential customers into segments with common characteristics. Through a process of [audience analysis](https://blog.alexa.com/marketing-research/audience-analysis), segments are composed of consumers who respond similarly to marketing strategies and share traits such as similar interests, needs, or locations. **  Top 10 Benefits of Segmentation \| Data Driven Market \| Grepsr [Demographic segmentation](https://www.yieldify.com/blog/demographic-segmentation-ecommerce-marketing/) might be the first thing people think of when they hear 'market segmentation'. This is perhaps the most straightforward way of defining customer groups, but it remains powerful. Demographic segmentation looks at identifiable non-character traits such as: - Age - Gender - Ethnicity - Income - Level of education - Religion - Profession/role in a company Psychographic segmentation is focused on your customers' personalities and interests. Here we might look at customers and define them by their: - Personality traits - Hobbies - Life goals - Values - Beliefs - Lifestyles [G][eographic segmentation](https://www.yieldify.com/blog/geographic-segmentation-real-world-examples/)[ is often one of the easiest to] identify, grouping customers with regards to their physical location. This can be defined in any number of ways: - Country - Region - City - Postal code [Behavioral segmentation](https://www.yieldify.com/blog/behavioral-segmentation-definition-examples/) is possibly the most useful of all for e-commerce businesses. As with psychographic segmentation, it requires a little data to be truly effective -- but much of this can be gathered via your website itself. Here we group customers with regards to their: - Spending habits - Purchasing habits - Browsing habits - Interactions with the brand - Loyalty to brand - [Previous product feedback](https://usersnap.com/blog/customer-feedback/) **RECOGNIZING A** **POTENTIAL MARKET:** **Determine the Possible Product(s) or Service(s) that will Meet the Need** WHAT ARE POTENTIAL MARKETS? - A potential market is the part of the market you can capture in the future. - These are customers you don\'t have now, but can work to attract. - Learn how to identify these potential new customers and actions to attract them. - Your potential market includes the [demographic groups ](https://www.thebalancesmb.com/what-is-target-market-identification-2295569)that are not currently your customers but could become customers in the future. They might become your customers because you expand your available products or services, or because you begin marketing your current products and services in a new way and to new groups of buyers. TYPES OF POTENTIAL MARKETS Potential markets take one of three forms: - New products you market to your current customers. - New products you market to new customers. - Current products you market to new customers. To identify your new potential markets, consider every target demographic you currently sell to, as well as those you have not yet targeted:  - What other products do my customers need now? - What related products will they need in the future? - Who else could make use of the products I am selling now? - What demographic information does that new group have in common with my current customers? - What demographic information does that new group have in common with each other?