Introduction to Entrepreneurship PDF

INTRODUCTION TO ENTREPRENEURSHIP This is where your presentation begins M O D RELEVANCE OF THE U L COURSE E 1  OBJECTIVES: 1. Define entrepreneurship, entrepreneur, and enterprise 2. Distinguish entrepreneur from businessman 3. Identify misconceptions on entrepreneursh...

INTRODUCTION TO ENTREPRENEURSHIP This is where your presentation begins M O D RELEVANCE OF THE U L COURSE E 1  OBJECTIVES: 1. Define entrepreneurship, entrepreneur, and enterprise 2. Distinguish entrepreneur from businessman 3. Identify misconceptions on entrepreneurship 4. Explain the compounded benefits of entrepreneurship to the Filipino people, local community, and the Philippine economy 5. Determine the relevance of Entrepreneurship to SHS students. The term “entrepreneur” originates from the French verb “enterprende”which means “to undertake”. It was coined from the words entre , which means “between”, and prende, which means “to take”. What is Entrepreneurship? It is a philosophy or process through which an entrepreneur seeks innovation and employment The art of observing correct practices in managing and operating a self-owned, wealth-creating business enterprise by providing goods and services that are valuable to the customers. – (Aduana, Nick L., 2017, p.5) What is Entrepreneurship? Entrepreneurship can be defined as a field of business that seeks to understand how opportunities to create something new (e.g., new products or services, new markets, new production processes or raw materials, new ways of organizing existing technologies) arise and are discovered or created by specific persons, who then use various means to exploit or develop them, thus producing a wide range of effects (Baron, Shane, & Reuber, 2008, p. 4) What is Entrepreneurship? A concise definition of entrepreneurship “is that it is the process of pursuing opportunities without limitation by resources currently in hand” (Brooks, 2009,p. 3) and “the process of doing something new and something different for the purpose of creating wealth for the individual and adding value to society” (Kao,1993, p. 70) What is Entrepreneurship? A process of designing and running a new business venture for earning profits. It is a process that brings innovation that is new ideas, products, and services in the market. The ability to create, manage and operate a new business and bears all of its risk with a view to earn profits. It is more than just an economic term — it is a way of thinking. What is Entrepreneurship? It involves seeking opportunities for market, establishing and operating a business out of the opportunity, and assessing its risks and rewards through close monitoring of the operations. What is Entrepreneurship? It is more than just an economic term — it is a way of thinking. Ø People exposed to entrepreneurship frequently express that they have more opportunity to exercise creative freedoms, higher self-esteem, and an overall greater sense of control over their own lives. Ø A way of inspiring creative individuals to pursue opportunities despite its risks. Standard (New) Definition Entrepreneurship is the process of creating something different with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, social risks and receiving the resulting rewards of monetary and personal satisfaction and independence.  New Definition involves Four Aspects 01 The creation 03 Assumption of Risk. process. 02 Devotion of 04 Rewards of. time and. independence, efforts satisfaction, money  WHO IS AN ENTREPRENEUR? Ø Entrepreneur (Oxford Dictionary) – Person who undertakes an enterprise with chances of profit or loss. (Entrepreneur is a person who undertakes a business activity of which he has no background and faces considerable risks in the process. If either of the two elements, i.e., “no background” or “considerable risk” is missing in the venture, it is no entrepreneurship).  WHO IS AN ENTREPRENEUR? Ø Entrepreneur – (New Encyclopaedia Britannica) – An individual who bears the risk of operating business in the face of uncertainty about the future conditions. Common Meaning – one who starts his own, new and small business Ø The American Heritage Desk Dictionary defines an entrepreneur as a person who organizes, operates, and assumes the risk of business ventures.  WHO IS AN ENTREPRENEUR? Ø An entrepreneur is defined as a person who strongly advocates and correctly practices the concept of entrepreneurship in operating and managing the self- owned business venture. – (Aduana, Nick L., 2017, p.5) Ø “An entrepreneur is the one who always searches for change, responds to it and exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, the means by which they exploit changes as an opportunity for a different business or different service”. - Peter Drucker  WHO IS AN ENTREPRENEUR? Ø An individual who forms an organization for commercial purpose. He is proprietary capitalist, a supplier of capital and at the same time a manager who intervenes between the labor and the consumer. - Adam Smith Ø An entrepreneur can be described as “one who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying significant opportunities and assembling the necessary resources to capitalize on them” (Zimmerer & Scarborough, 2008, p. 5).  WHO IS AN ENTREPRENEUR? Ø An entrepreneur is “one who organizes, manages, and assumes the risks of a business or enterprise” (Entrepreneur, n.d.). Dissecting the word we get Entre – Enter Pre – Before Neur – Nerve Centre  DEFINITION OF ENTREPRENEURSHIP IN 21ST CENTURY Ø An entrepreneur of 21st century is a customer focused innovator. He uses e–knowledge. Advantage is speed. He is a global thinker even though he may not necessarily be a global player. Ø Entrepreneurs are people who create new business activity in the economy and bear considerable business risk in the process. This is often done by starting new companies. But they can also create new business activity by introducing a new product or creating a new market.  DIFFERENCES BETWEEN BUSINESSMAN AND ENTREPRENEUR BUSINESSMAN ENTREPRENEURSHIP Sets up an existing idea Starts with new idea Creates place in existing markets Creates new markets Market player Market leader Calculative Intuitive Less risk Comparatively high risk Conventional Unconventional Profit orientation People-oriented Very high competition Low competition  What is Enterprise? Ø It is where entrepreneurial acidity is going on like Company, Industry, firm, organization, office, agency, franchise, Shops, and etc. Ø It supports the recognition of new market opportunities as well as develops the opportunity to change and develop at the individual, business and industry/sector levels. Ø It is a business organization that is formed, and which provides goods and services, creates jobs, contributes to national income, imports and above all, sustainable economic development.  MISCONCEPTION OF ENTREPRENEURSHIP 1. Entrepreneurship applies only to manufacturing business 2. Entrepreneurship applies only to small business 3. Entrepreneurship applies mostly to persons with good educational background in business courses. 4. Entrepreneurship is simply opening a small business THE TRUTHS ABOUT ENTREPRENEURSHIP 1. Entrepreneurship is not reserved for startups 2. Entrepreneurs do not have a special set of personality traits 3. Entrepreneurship can be taught (it’s a method that requires practice 4. Entrepreneurs are not extreme risk takers 5. Entrepreneurs collaborate more than they compete 6. Entrepreneurs act more than they plan 7. Entrepreneurship is a life skill  COMPOUNDED BENEFITS OF ENTREPRENEURSHIP 1. IMPORTANCE TO THE FILIPINO PEOPLE ü It provides guidelines in their wealth-creating ventures ü It helps improve their financial and social life ü It helps broaden their creativity ü It helps make their lives happy, fruitful, and successful 2. IMPORTANCE TO THE LOCAL COMMUNITY ü It provides employment in the community. ü It creates new demand in the market. ü It makes substantial contribution to the raising and collection of taxes. ü It facilitates the movement of the factors of production. ü It creates new business opportunities. ü It promotes a peaceful and loving community. ü It increases constructive competition. 3. IMPORTANCE TO THE PHILIPPINE ECONOMY ü It encourages competitiveness and thereby challenges entrepreneurs to keep improving their products and services. ü It helps find an entrepreneurial niche in the world market. ü It helps hasten the economic recovery process of the Philippines during financial turmoil or crackdown. ü It facilitates the smooth flow of money in the local market. ü It assists the national government in its desire to have a favorable economic rating in the world market.  RELEVANCE OF ENTREPRENEURSHIP TO SHS STUDENTS Ø To prepare students for livelihood even before college. Ø Entrepreneurship education aids students from all socioeconomic backgrounds to think outside the box and nurture unconventional talents and skills. Ø Entrepreneurship develops their initiative and helps them to be more creative and self-confident in whatever they undertake and to act in a socially responsible way. Ø It exposes students to numerous opportunities to learn how to think critically and analyze the pieces on the board. Ø Being aware of all the important factors and seeing how they affect each other is the foundation of a smart decision-making process. Ø Students have to be exposed to real-world examples and learn from their own experience. Ø Entrepreneurship education requires students to be innovative, creative and collaborative with others. Ø Entrepreneurship education provides budding entrepreneurs with the skills and knowledge to come up with business ideas and develop their own ventures. Ø Creation of entrepreneurial thinkers who also have the skills and tools to start their own businesses. Ø Students will also learn to: a) Write a business plan. b) Apply economic principles. c) Determine individual entrepreneurial interests d) Apply basic marketing skills. e) Use strategies for idea generation. f) Assess feasibility of ideas. g) Manage risk. Ø Students will also learn to: h. Identify legitimate sources of capital. I. Evaluate ownership structures. J. Translate problems into opportunities. K. Apply principles of human relations management. L. Speak "business" & "entrepreneurship". M. Apply basic accounting principles. N. Engage in ethical business practices. O. Demonstrate financial management WHAT MAKES A SUCCESSFUL ENTREPRENEUR? 1. The urge for achievement (most often monetary ambitions) – Most Important 2. Willingness to take moderate risks – (High risk takers are not entrepreneurs but gamblers). 3. Determination to win 4. Win– Win Personality 5. Ability to identify & explore opportunities 6. Analytical ability to take strategic decisions 7. Perseverance 8. Flexibility 8. Capacity to plan and organize 9. Preparedness to undergo physical and emotional stress 10. Positive self-concept/Self-belief 11. Future orientation – Vision 12. Ethics and Values – Mission WHO CAN BE AN ENTREPRENEUR? 1. Who feels the need for achievement 2. Who can take moderate risks 3. Who possess skills in organizing 4. Who can capitalize on opportunities 5. Who has some financial strength – On his own or borrowed 6. Who has ability to work hard 7. Who has desire for responsibility 8. Who has a clear perception of probability of success 9. Who gets stimulation by feedback 10. Anyone – He can be male, female or even a Eunuch 11. Who does not have previous experience