Pointers to Review Entrepreneurship PDF

POINTERS TO REVIEW RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION Development of Managerial Capabilities - this means that one of the benefits an entrepreneur gets is to develop his managerial skills. Creation of Organizations -...

POINTERS TO REVIEW RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION Development of Managerial Capabilities - this means that one of the benefits an entrepreneur gets is to develop his managerial skills. Creation of Organizations - which means that because of entrepreneurship many organizations will exist. Improving Standard of Living - this means that entrepreneurship can lift up the economic status of an individual. Means of Economic Development - this means that not only the life of the entrepreneur is improved but also the society where the business is located. The word “entrepreneur” was derived from the French verb enterprendre, which means “to undertake.” PERSONALITY FACTORS WHICH INCLUDE: Initiative - doing things even before being told. Proactive - which means he can classify opportunities and seize it. Problem Solver - which means he can retain good relations with other people. Perseverance - meaning he will pursue things to get done regardless of challenges. Persuasion - means that he can entice people to buy even if they don’t want to. A Planner - he makes plans before doing things and does not fail to monitor it. Risk-taker - which means that he is willing to gamble but he will calculate it first. CORE COMPETENCIES IN ENTREPRENEURSHIP: Economic and Dynamic Activity - Entrepreneurship is an economic activity because it involves the creation and operation of an enterprise with a view to creating value or wealth by ensuring optimum utilization of limited resources. Innovative – The entrepreneur constantly looks for new ideas, thus he needs to be creative. Profit Potential - The entrepreneur can be compensated by his profit coming from the operation. Risk bearing – The entrepreneur needs to gamble but wise enough to offset the risk. Environmental Factors which include political, climate, legal system, economic and social conditions and market situations. TYPES OF ENTREPRENEURS Innovative Entrepreneurs - They are those who always make new things by thinking of new ideas. They have the ability to think newer, better and more economical ideas. Imitating Entrepreneurs - They are those who don’t create new things but only follow the ideas of other entrepreneurs. Fabian Entrepreneurs - They are skeptical about changes to be made in the organization. They don’t initiate but follow only after they are satisfied. Drone Entrepreneurs - They are those who live on the labor of others. They are die-hard conservatives even ready to suffer the loss of business. Social Entrepreneurs - They are those who initiate changes and drive social innovation and transformation in the various fields such as education, health, human rights, environment and enterprise development. THE SOCIETAL ENVIRONMENT INCLUDES THE VARIOUS FORCES LIKE: 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. Economic forces – such as income level and employment rate. Sociocultural forces – customs, lifestyles and values that characterize a society. Technological environment – new inventions and technology innovations. ESSENTIALS IN ENTREPRENEUR’S OPPORTUNITY – SEEKING: 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 solutions when problems arise. Entrepreneurial heart flame. Entrepreneurs are driven by 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. 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 belief that everything you aspire can be reached. SOURCES OF OPPORTUNITIES Trends - these are indicators in the shift of paradigm (or thinking) of a certain population o Trends in the society - aging demographics, health and fitness, lifestyles of young professionals, interests of adolescents o Trends in technology - mobile technology, e-commerce o Economic trends - higher disposable income, dual wage earners, more employed workforce, more student populations, rise in foreign exchange needs o Government trends - petroleum prices, regulations, election season, threat of terrorism Unexpected occurrences - these could be either be success or failures that were not anticipated like the 911 terrorist attack, Yolanda typhoon, earthquakes and fires Incongruities - these occur when a gap of difference exists between reality and what is expected Process needs - creation of new medical devices, health foods, sports drinks, caffeine free drinks, sugar free drinks and time saving devices Demographic changes - these occur when changes in age, population, education, occupation, geographic locations and other factors happen Perceptual changes - these occur when people’s view on facts and concepts changes Knowledge based concepts - these are the basis for creating something brand new such as innovations and new technologies that were non-existent before. COMMON COMPETENCIES IN ENTREPRENEURSHIP Decisive - an entrepreneur must be firm in making decisions. Communicator - an entrepreneur must have a convincing power. Leader - an entrepreneur must have the charisma to be obeyed by his employees. Opportunity seeker - an entrepreneur must have the ability to be the first to see business chances. Proactive – an entrepreneur can control a situation by making things happen or by preparing for possible future problems. Risk Taker – an entrepreneur has the courage to pursue business ideas. Innovative - the entrepreneur has big business ideas and he does not stop improving and thinking of new worthwhile ideas for his business. PRODUCT – is associated with Physical Items. UNIQUE SELLING PROPOSITION – refers to how you sell your product or services to your customers. VALUE PROPOSITION - is a business or marketing statement that summarizes why a consumer should buy a company's product or use its service. THE 7 P’S OF MARKETING MIX: Product - refers to any goods or services that is produced to meet the consumers’ wants, tastes and preferences. Place - is the second P in the Marketing Mix. Place represents the location where the buyer and seller exchange goods or services. It is also called as the distribution channel. It can include any physical store as well as virtual stores or online shops on the Internet. In the narrowest sense, price is the value of money in exchange for a product or service. Generally speaking, the price is the amount or value that a customer gives up to enjoy the benefits of having or using a product or service. Promotion - is the fourth P in the Marketing Mix. Promotion refers to the complete set of activities, which communicate the product, brand or service to the user. People are the ultimate marketing strategy. They sell and push the product. People are one of the most important elements of the marketing mix today. Packaging refers to the outside appearance of a product and how it is presented to the customers. Positioning refers to a process used by marketers to create an image in the minds of a target market. When a company presents a product or service in a way that is different from the competitors, they are said to be “positioning” it.