Palm Valley Entrepreneurship Lecture 1 PDF

Palm Valley Multiple Intelligence School Alaminos Heights Subd. Alaminos, Laguna School Year 2024 - 2025 Entrepreneurship Grade 12 -- STEM/HUMSS Lecture 1 Entrepreneurship -- is the activity of setting up a business taking on financial risks in the hope of profit. \- is a proactive process o...

Palm Valley Multiple Intelligence School Alaminos Heights Subd. Alaminos, Laguna School Year 2024 - 2025 Entrepreneurship Grade 12 -- STEM/HUMSS Lecture 1 Entrepreneurship -- is the activity of setting up a business taking on financial risks in the hope of profit. \- is a proactive process of developing a business venture to make a profit. It involves: 1.Seeking opportunities for a market. 2\. Establishing and operating a business out of opportunity. 3\. Assessing its risks and rewards through close monitoring of the operations. Relevance of the course: 1.Entrepreneurship produces more jobs that equate to an increase in national income. 2.Entrepreneurship amplifies economic activities of the different sectors of society. Economic Activities include: a\. Production -- action of manufacturing a product from raw materials. b\. Consumption -- the use or utilization of the product. c\. Distribution -- the process of supplying the products to stores and other business that sells to the consumers. d\. Exchange -- is a fair and orderly trading among producers and the manufacturers. 3.Entrepreneurship introduces new and innovative products. Product -- is anything that can be offered to a market that satisfies the needs and wants. \- is the output which has the value and contributes to the utility of Two products in the market: Goods -- are things that can be bought manufactured from raw materials. Service --an action that a person does for someone with payment. 4\. Entrepreneurship improves people's living standards. 5\. Entrepreneurship disperses the economic power and creates equality. \- it balances the economy by distributing national income to more business. 6\. Entrepreneurship controls the local wealth and balances the regional development. \- it makes sure that local resources are used properly and every area has an 7\. Entrepreneurship reduces social conflicts and political unrest. 8\. Entrepreneurship elicits economic independence and capital formation. Entrepreneur -- is a unique individual who has the innate ability and extraordinary dedication to: a. establish and manage a business b. acknowledging all the risks c. reaping all the rewards. 5 levels of entrepreneurial development: The Self- employed Person who is not comfortable with the routine of a desk job Do not want to conform to a fixed working schedule Want to do things in their own way The Manager Entrepreneur feels the need to step up. Begin to create positions that match the requirements of the business and employer's expertise The Leader Enjoy seeing their workers flourish, stepping up and producing great results with minimal supervision They now focus on the big picture and strategic direction of their business rather than in generating sales and operating the business. The Investor Look for more opportunities for their business to grow. May either purchase one or two businesses that can potentially add value to the company or sell their establish business ( as a franchisee ). They will act as directors and will delegate a suitable manager for business operations. The True Entrepreneurship The entrepreneurs based on their experience now aims for quality and excellence in They have fully learned and continue to practice the 4 steps process of thinking: b\. Visualization -- the entrepreneur starts to create plans to make the dream a already occurring. d\. Materialization -- happens when the vision becomes a reality. Key concepts of Entrepreneurship: 1\. Customer -- without them there will be no business, if the customer didn't buy the product one is selling there will be no business. 2\. Supply and demand In every market there 2 key groups of people: 3\. Competition -- rivalry in which every seller tries to get what other sellers are seeking at the same time: sales, profit , and market share by offering the best practicable combination of price. quality, and service. Sale- is the total amount of money that a business receives from selling goods and Profit -- is a financial benefit that is realized when the amount of revenue gained from the business exceeds the expenses, costs and taxes needed to sustain the activity. 4\. Return of Investment (ROI ) Is a performance measure used to evaluate the efficiency of an investment. 5\. Fixed and Variable Costs Costs -- (expenses), are everything spent on or pay to start, run, and keep one's business alive. Examples: rent, equipment, salaries of workers, bills, transportation expenses, advertising and bank charges. 2 main types of costs: 1\. Fixed costs -- are costs that do not change regardless of the quantity of goods or services a business does. Examples: rent, equipment, machines, salaries, and insurance. 2, Variable Costs -- are costs that change with the level of the business activity. Examples: water bills, electric bills, internet connection and telephone bills. Some of the entrepreneur's field of expertise: 1\. A technopreneur -- an entrepreneur who puts technology at the core of his business model. 2\. A social entrepreneur -- one who takes advantage of the country's social problems and turns then to profitable institutions with the intention of helping the disadvantaged community rather than making a profit. 3\. An intrapreneur -- an entrepreneur in a large company or corporation who is tasked to think, establish, and run a new big idea or project. Usually, the project manager or the business development manager of a company. 4\. An extrapreneur -- an entrepreneur who hops from one company to another to act as innovation champion, providing creative and efficient solutions. Prepared by: Mrs. Ana-Belen D. Mojica