Entrepreneurship Reviewer PDF

ENTREPRENEURSHIP REVIEWER ENTREPRENEURSHIP As 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. - "entreprende" - to undertake - The study of business....

ENTREPRENEURSHIP REVIEWER ENTREPRENEURSHIP As 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. - "entreprende" - to undertake - The study of business. - The process of using resources effectively and transforming them into profitable venture. SMALL BUSINESS AND ORDINARY SMALL BUSINESS Small Business - refers to a business or entreprise that correctly adopts and practices the principles of entrepreneurship. It is owned by one person with a limited workforce of not more than 20 persons. Ordinary Small Business - pertains to a business managed and operated by an owner who is not an advocate of and does not practice the concepts and principles of entrepreneurship. Example: Why does this happen in the Philippines? The reason could be that many Filipino families resort to opening ordinary small business since it is the easiest and most practical way to augment their income. A small amount of money can be used to start up a simple sari-sari store business, or a small stall or pushcart in which food and other staff can be sold in quantities. However, the mere opening of a business enterprise is nor entrepreneurship and the person owning and running Its day to day operators is not an entrepreneur but rather a business person. SALIENT FEATURE OF ENTREPRENEURSHIP ENTREPRENEURSHIP IS AN ART NOT A SCIENCE - It is not governed by fixed and absolute rules. - there is constant change which denotes movement and innovation. - is not static or stagnant. - I continously grows, develops, improves and expand. - I continously evolves and responds to the changing needs or the people.  - by creativity, there is a constant change or evolution that contributes towards the enhancement of the product. - creativity results in new ideas which are the backbones of entrepreneurship. - entrepreneur keep on searching for new ideas - keep on searching for something new. - they find ways to transporm new ideas into entrepreneurial opportunities. - this aspects differentiate of entrepreneur from an Ordinary small business person. Entrepreneur - transform feasible new ideas inti an entrepreneurial venture. Ordinary business person - only builds open existing ideas to begin immediate earnings. MISCONCEPTIONS ON ENTREPRENEURSHIP - Entrepreneurship Applies only to Manifactoring Business. - Entrepreneurship Applies only to small Business. - Entrepreneurship Applies mostly to persons with Good Educational Background in Business Courses. - Entrepreneurship Applies only to a Good Economy. - Entrepreneurship is simply Opening a Small Business. ENTREPRENEURSHIP AND ORDINARY SMALL BUSINESS ACTIVITY 1. Motivate in opening a business Entrepreneurship - constant on the look out for new and fresh ideas, which can be found in the business environment. Ordinary Small Business - Opens a business with the primary goal for making it his her source of livelihood 2. Perception oF risk in the business Entrepreneurship - takes and faces the business risk quarely. - Inherent the business venture, prepares the business for it, and find ways to minimize its effects. Ordinary Small Business - Business risk is a deterrent to the operation of the business and must be avoided. 3. Reactions to changes in the environment Entrepreneurship - reacts positively to the changes in the environment changes in the business environment being new ideas for entrepreneurial opportunites. Ordinary Small Business - the owner of ordinary small business remains passive and static to changes in the environment where his/her business operates. 4. View on competition Entrepreneurship - entrepreneur the presence of competition is a sign of healthy economic environment. Ordinary Small Business - owner of an ordinary small business, however, views competitions as an unhealthy element in the business environment and tries to avoid it. 5. Vision for development and growth Entrepreneurship - entrepreneur aligns the daily business activities toward the attainment of the plans. Ordinary Small Business - owner of an ordinary small business, on the other hand, relies upon change or luck in maintaining the status quo of his/ her business. 6. Horizon of business operation Entrepreneurship - his her is always focused on the stars, above, while his|her feet are firmly anchored on the ground. Ordinary Small Business - centered only on the local environment. He she does not intend to participate in the global environment. 7. Source of business Funds Entrepreneurship - explores ways to generate the much-needed fund from both internal and external resources. Ordinary Small Business - limit the funding of his /her business interprise to personal resaurces. TERMS RELATED TO ENTREPRENEURSHIP Market - a place in the open air where different goods are bought and sold. - the number of people who have the capacity to buy the merchandise. - to sell an organized way and on a large scale. Merchandise - the goods that are sold. Merchant - a person who buys and sells goods in large quantities Economy - the system according to which money, industry and trade are organized. Feasibility Study - a plan of possible outcomes of a proposed project. Business - is an organized effort of individuals to produce and sell goods and services in order to satisfy the needs of society. Management - means putting the right people with the right skills in the right place at the right time with the right motivation in order to accomplish something. Planning - thinking before a particular task is done. EXAMPLES OF ENTREPRENEURSHIP IN TEN COUNTRIES United States - noted to be one of the friendliest countries for entrepreneurs, home to Apple, Google, Starbucks, Walmart and Walt Disney. China - home to budding entrepreneurs who manufacture different products that range from toys, gadgets, electronics and cars; a lot of products have generic brand names. Singapore - literally a small country that controls a significant portion of the economy in Asia, home to entrepreneurs who innovate on existing services for local and international use. Canada - entrepreneurs here are exploring opportunities over the internet such as the people from a region called Sanikiluaq, known for their wood carving skills and entrepreneurs are selling their products online. India - one of the countries in the Asia Pacific rim with a strong base of entrepreneur organizations led by the youth and women. Taiwan - entrepreneurship here is encouraged through the small and medium enterprise incubation centers for the purpose of nurturing young firms, new products and technologies. Incubators - provide space, facilities, hands on management assistance and access to technologies and financing to clients, helping them to survive and grow during the start-up period. Hongkong - with the knowledge based economy, it utilizes its human resources to make its economy the best possible through entrepreneurship such as activities related to tourism and agricultural exports which receives strong support from government and private sector. Thailand - Tourism for the international markets and agricultural exports are two major sources of income of Thai entrepreneurs. Malaysia - this country is becoming friendlier to entrepreneurs which is apparent in the growing numbers of businesses which decided to locate here. South Korea - it emerged from the Asian financial crisis better than any other country in the region, home to Samsung, Kia, and other tech-related companies. SALIENT FEATURES OF ENTREPRENEURSHIP 1. Art of correct practices - entrepreneurship is not governed by fixed and absolute rules. 2. Wealth creating venture - wealth creation rather than profit generation Provides valuable goods and services - the goods and services become valuable when the consumers get additional benefits from using the products or available services. 4. Opening and managing self-owned business - when a person managing its daily activities is also the owner. 5. Risk taking ventures - risk is inherent in an entrepreneurial venture. EMERGING CHARACTERISTICS OF ENTREPRENEUR TODAY Entrepreneur Dimension - Educational Attainment - Age - Gender - Previous Experience - Knowledge of Business - Utilization of Information Technology  - Innovation Orientation - Goal - Principle of Governance - Use of work structure - Leadership style - Drive orientation - Perspective of Self-Confidence DEFINITION OF ENTREPRENEUR From an economist's point of view - It is someone who brings resources, labor, materials and other assets into combinations that make their value greater than before - It is also someone who introduces changes, innovations and a new order. From a psychologist's point of view - A person who is typically driven by certain forces such as the need to obtain or attain something, to experiment, to accomplish or perhaps to escape the authority of others. From a management perspective - It is someone who identifies opportunities, plans, mobilizes resources, manages and assumes the risks of a business to have a positive impact on society. Good Qualities of an Entrepreneur - Risk taker - Goal-oriented - Persistent and Hardworking - Full of energy - Open to criticism - Responsible - Confident and self-reliant - Knowledgeable - Human management ability - Achievement-oriented