Reviewer in Entrepreneurship PDF

REVIEWER IN ENTREPRENEURSHIP LESSON 1: INTRODUCTION TO ENTREPRENEURSHIP Concept of Entrepreneurship The word “entrepreneur” was derived from the French verb enterprendre, which means “to undertake.” This is pinpointing to those who “undertake” the risk of enterpr...

REVIEWER IN ENTREPRENEURSHIP LESSON 1: INTRODUCTION TO ENTREPRENEURSHIP Concept of Entrepreneurship The word “entrepreneur” was derived from the French verb enterprendre, which means “to undertake.” This is pinpointing to those who “undertake” the risk of enterprise. The enterprise is created by an entrepreneur and the process is called “Entrepreneurship.” COMMON COMPETENCIES IN ENTREPRENEURSHIP 1. Decisive - an entrepreneur must be firm in making decisions. 2. Communicator - an entrepreneur must have a convincing power 3. Leader - an entrepreneur must have the charisma to be obeyed by his employees. 4. Opportunity Seeker - an entrepreneur must have the ability to be the first to see business chances. 5. Proactive - an entrepreneur can control a situation by making things happen or by preparing for possible future problems. 6. Risk Taker - an entrepreneur has the courage to pursue business ideas 7. Innovative - the entrepreneur has big business ideas and he does not stop improving and thinking of new worthwhile ideas for his business. CORE COMPETENCIES IN ENTREPRENEURSHIP 1. 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. 2. Innovative The entrepreneur constantly looks for new ideas, thus he needs to be creative. 3. Profit Potential The entrepreneur can be compensated by his profit coming from the operation. 4. Risk Bearing The entrepreneur needs to gamble but wise enough to offset the risk. RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION 1. Development of Managerial Capabilities - this means that one of the benefits an entrepreneur gets is to develop his managerial skills. 2. Creation of Organizations - This which means that because of entrepreneurship many organizations will exist 3. Improving Standard of Living - this means that entrepreneurship can lift up the economic status of an individual. 4. 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.  Types of Entrepreneurships 1. 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. 2. Imitating Entrepreneurs - They are those who don’t create new things but only follow the ideas of other entrepreneurs 3. Fabian Entrepreneurs - They are skeptical about changes to be made in the organization. They don’t initiate but follow only after they are satisfied. 4. 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. 5. 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. CAREER OPPORTUNITY OF ENTREPRENEURSHIP 1. Business Consultant - with the expertise of in the field of entrepreneurship, he can be a very good source of advices to other entrepreneurs and would be business men. 2. Teacher - a graduate of an entrepreneurship can use his knowledge in teaching. 3. Researcher - the entrepreneur can be employed as a researcher by an enterprise. 4. Sales - the entrepreneurship graduate can apply as a salesman. 5. Business Reporter - the entrepreneur being expert in the field, can be employed as a business reporter. LESSON 2: RECOGNIZE POTENTIAL MARKET ESSENTIAL IN ENTREPRENEUR'S OPPORTUNITY-SEEKING 1. ENTREPRENEURIAL MIND FLAME - allows the entrepreneur to see things in a very positive and optimistic light in the midst of crisis or difficult situations. 2. ENTREPRENEURIAL HEART FLAME - the entrepreneurial heart flame is also about emotional intelligence or eq, which is often manifested in the entrepreneurs’ efforts to nurture relationships with customers, employees, and suppliers. 3. ENTREPRENEURIAL GUT FLAME - refers to the ability of the entrepreneur to sense without using five senses. this is also known as intuition. The gut game also connotes courage or, in the local dialect, “lakas ng loob” (strong intestinal fortitude). SOURCES OF OPPORTUNITY 1. CHANGES IN THE ENVIRONMENT - Entrepreneurial ideas arise when changes happen in the external environment. a person with entrepreneurial drive views these changes positively. 1.1. PHYSICAL ENVIRONMENT 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, reptile, fish etc. that live in the wild.  1.2. SOCIETAL ENVIRONMENT a. political forces- includes all the laws, rules, and regulations that govern the business practices as well as the permit, approval, and licenses necessary to open the business. b. economic forces- income level and employment rate c. sociocultural forces- customs, lifestyles and values that characterize a society. d. technology environment- new technology and new innovations. 1.3. INDUSTRY ENVIRONMENT 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 THRUST, PROGRAMS AND POLICIES - the priorities, projects, programs, and policies of the government are also good source of ideas. 4. PEOPLE’S INTEREST - the interest, hobbies, and preferences of people are rich sources of entrepreneurial ideas, like increasing number of internet cafes at present could lead to the strong attachment of the 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 a related business enterprise. COMPETITION - it is the act or process of trying to get or win something. FIVE FORCES COMPETING WITHIN THE INDUSTRY 1. Buyers 2. Potential New Entrants 3. Rivalry Among Existing Firm 4. Substitute Products 5. Supplier LESSON 3: RECOGNIZE AND UNDERSTAND THE MARKET VALUE PROPOSITION (VP) - is a business or marketing statement that summarizes why a consumer should buy a company's product or use its service. This statement is often used to convince a customer to purchase a particular product or service to add a form of value to their lives. UNIQUE SELLING PROPOSITION (USP) - refers to how you sell your product or services to your customer. You will address the wants and desires of your customers.  THREE FACTORS THAT WILL DETERMINE YOUR CUSTOMERS 1. Target Market 2. Customer Requirements a. Service Requirement - An intangible thing or product that cannot be touched but the customer can feel the fulfillment. b. Output Requirement - Tangible thing or things that can be seen. Characteristic specifications that a consumer expects to be fulfilled in the product. 3. Market Size LESSON 4: MARKET RESEARCH MARKET RESEARCH - can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be, offered for sale to the potential consumers in the market. DATA COLLECTION - is the most valuable tool in any type of research study. Inaccurate data collection may cause mistakes and ultimately lead to invalid results. THREE DIFFERENT DATA COLLECTION TECHNIQUES 1. SURVEY - are the most common way to gather primary research with the use of questionnaires or interview schedule. These can be done via direct mail, over the phone, internet (e.g. Google) or email, face-to-face or on the Web (e.g.Skype or Viber). 2. INTERVIEW - is one of the most reliable and credible ways of getting relevant information from target customers. It is typically done in person between the researcher/entrepreneur and a respondent where the researcher asks pertinent questions that will give significant pieces of information about the problem that he will solve. A. PERSONAL INTERVIEW - are the traditional method of conducting an interview. It allows the researcher to establish relationship with potential participants and therefore gain their cooperation. It generates highest response rates in survey research. B. TELEPHONE INTERVIEW - are less expensive and less time-consuming, but the disadvantages are that the response rate is not as high as the face-to -face interview, but considerably higher than the mailed questionnaire. 3. FOCUS GROUP DISCUSSION - is an excellent method for generating and screening ideas and concepts. It can be moderated group interviews and brainstorming sessions that provide information on user's needs and behaviors.  THE FOLLOWING ARE CONSIDERATIONS IN THE USE OF FOCUS GROUP DISCUSSIONS IN MARKET RESEARCH: The length of the session is between 90 and 120 minutes. Conduct focus groups discussion with 8 to 10 participants per group. Assign an expert moderator/ facilitator who can manage group dynamics. Use a semi-structured or open-format discussion Strive for consistency in the group's composition (for example, it may not be advisable to have business customers and retail customers in the same focus group, their needs are very different)