STEM Entrepreneurship - Lesson 1 & 2 - PDF

Introduction to ENTREPRENEURSHIP Inspirational Quote of the Day “The best way to predict the future is to create it.” Peter Drucker - an Austrian-American management Consultant, Educator, and Author.  SUBJECT DESCRIPTION Thi...

Introduction to ENTREPRENEURSHIP Inspirational Quote of the Day “The best way to predict the future is to create it.” Peter Drucker - an Austrian-American management Consultant, Educator, and Author.  SUBJECT DESCRIPTION This subject deals with the concepts, underlying principles, processes and implementation of a business plan. The preliminaries of this course include the following: 1. Discussion on the relevance of the course. 2. Explanation of key concepts of common competencies. 3. Explanation of core competencies relative to the course. 4. Exploration of career opportunities.  OBJECTIVES To provide students the foundational perspectives and techniques about entrepreneurship. To give special focus on the emerging trends and developments that are happening in the current entrepreneurial arena. To help the students prepare for the advanced courses and give guide on how to organize and manage a small business.  ENTREPRENEURSHIP Basically, aimed to gear someone towards SELF-EMPLOYMENT. An entrepreneur must learn the importance of entrepreneurship so that he/she can put up and operate his/her own business, whatever the magnitude.  ENTREPRENEURSHIP If an individual merely wants to go on business to be his own boss, he may be sorely disappointed. A practicing entrepreneur has probably more bosses. – Various government regulatory bodies – Suppliers – Financial creditors and stakeholders – Demands and cycles of the market – Demands on the entrepreneur’s personal life  ENTREPRENEURSHIP Entrepreneur – French word entreprendre, - meaning to undertake.  ENTREPRENEURSHIP Entrepreneurship is the act of creating a business while building and scaling it to generate profit. ENTREPRENEURSHIP Can also pertain to management functions. Planning, Organizing, Directing, Staffing, Controlling, & Evaluating  PLANNING Is the process of determining the company goals and identifying the resources and strategies needed to achieve those goals. (ManagementStudyGuide.com, 2020)  ORGANIZING is the process of collating the physical, financial and human resources and developing a productive relationship among them. (ManagementStudyGuide.com, 2020)  ORGANIZING According to Henri Fayol, “To organize a business is to provide it with everything useful or it's functioning i.e., raw material, tools, capital and personnel’s”. To organize a business involves determining & providing human and non-human resources to the organizational structure. (ManagementStudyGuide.com, 2020)  DIRECTING - Part of managerial function that activates the organizational processes to work efficiently for the achievement of organizational purposes. - It is considered life-spark of the enterprise which sets it in motion the action of people. - Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals.  DIRECTING Direction has the following elements: Supervision Motivation Leadership Communication (ManagementStudyGuide.com, 2020)  DIRECTING Supervision - implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers. Motivation - means inspiring, stimulating or encouraging the subordinates with deal to work. Positive, negative, monetary, non- monetary incentives may be used for this purpose. Leadership - may be defined as a process by which manager guides and influences the work of subordinates in desired direction. Communication - is the process of passing information, experience, opinion etc. from one person to another. It is a bridge of understanding. (ManagementStudyGuide.com, 2020)  STAFFING Refers to function of manning the organization structure and keeping it manned. The main purpose: to put the right man on the right job (ManagementStudyGuide.com, 2020)  STAFFING Encompasses: 1. Manpower Planning 2. Recruitment, Selection & Placement 3. Training and Development 4. Salary and Compensation 5. Performance Appraisal 6. Promotions and Transfer (ManagementStudyGuide.com, 2020)  CONTROLLING It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. Purpose: to ensure that everything follows the standards set forth. (ManagementStudyGuide.com, 2020)  CONTROLLING An efficient system of control helps to predict deviations before they occur. According to Theo Haimann, a German Management science educator, author, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting, if necessary, to correct any deviation”. (ManagementStudyGuide.com, 2020) CONTROLLING According to Koontz & O’Donell “Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished”. (ManagementStudyGuide.com, 2020)  CONTROLLING Steps: 1. Establishment of standard performance 2. Measurement of actual performance 3. Comparison of actual performance with the standards and finding the deviation, if any. 4. Corrective action (ManagementStudyGuide.com, 2020)  EVALUATING Evaluate means to determine something's significance, value or worth. Like a math problem, facts in business must also be evaluated using a fixed set of criteria that will lead to an answer. (www.indeed.com) THANK YOU!  The Concept of ENTREPRENEURSHIP THE CONCEPT OF ENTREPRENEURSHIP Entrepreneurship started in France after the French Revolution.  THE CONCEPT OF ENTREPRENEURSHIP Entrepreneurship was coined by Jean Baptiste Say, a renowned French economist. It started at the beginning of Capitalism and the end of Feudalism He argued that the concept of entrepreneurship, though closely tied with the theory of economics and society, is independent of the classical economics and is unable to co- exist with it. THE CONCEPT OF ENTREPRENEURSHIP Classical Capitalism - propagated by ADAM SMITH - relatesthe optimization of what already exists. - focuses on acquiring the most out of the existing resources. Ultimate Goal: establishing equilibrium or balance. THE CONCEPT OF ENTREPRENEURSHIP Entrepreneurship, on the other hand, sees change as normal and healthy. - promotes doing something different rather than making the existing better. - a manifestation of opposition as it upsets and disorganizes the existing market.  ENTREPRENEURSHIP Entrepreneurship is the dynamic process of creating incremental wealth. Wealth is created by individuals who assume the major risks in terms of equity, time and career commitment of providing value for some product or service. The product or service may not be new or unique, but the entrepreneur must somehow infuse value by securing and allocating the necessary skills and resources.(Rondstat 1984)  ENTREPRENEURSHIP Entrepreneurship- is a process of innovation and new-venture creation through four major dimensions-individual, organization, government, education and institutions. (Kuratko, et al.1995) Nine (9) Different Types of Entrepreneurship 1. Small business Entrepreneurship 2. Large company Entrepreneurship 3. Scalable start-up Entrepreneurship 4. Social Entrepreneurship 5. Innovative Entrepreneurship 6. Hustler Entrepreneurship 7. Imitator Entrepreneurship 8. Researcher Entrepreneurship 9. Buyer Entrepreneurship  Types of Entrepreneurship 1. Small Business Entrepreneurship A majority of businesses are small businesses. People interested in small business entrepreneurship are most likely to make a profit that supports their family and a modest lifestyle. Small business entrepreneurship is often when a person owns and runs their own business. They typically hire local employees and family members. Local grocery stores, hairdressers, small boutiques, consultants and plumbers are a part of this category of entrepreneurship.  Types of Entrepreneurship 2. Large Company Entrepreneurship Large company entrepreneurship is when a company has a finite amount of life cycles. This type of entrepreneurship is for an advanced professional who knows how to sustain innovation. They are often a part of a large team of C-level executives. Large companies often create new services and products based on consumer preferences to meet market demand. Small business entrepreneurship can turn into large company entrepreneurship when the company rapidly grows. This can also happen when a large company acquires them. Companies such as Microsoft, Google and Disney are examples of this kind of entrepreneurship.  Types of Entrepreneurship 3. Scalable Start-up Entrepreneurship This kind of entrepreneurship is when entrepreneurs believe that their company can change the world. They often receive funding from venture capitalists and hire specialized employees. Scalable startups look for things that are missing in the market and create solutions for them. Many of these types of businesses start in Silicon Valley and are technology-focused. They seek rapid expansion and big profit returns. Examples of scalable startups are Facebook, Instagram and Uber.  Types of Entrepreneurship 4. Social Entrepreneurship An entrepreneur who wants to solve social problems with their products and services is in this category of entrepreneurship. Their main goal is to make the world a better place. They don't work to make big profits or wealth. Instead, these kinds of entrepreneurs tend to start non- profits or companies that dedicate themselves to working toward social good.  Types of Entrepreneurship 5. Innovative Entrepreneurship Innovative entrepreneurs are people who are constantly coming up with new ideas and inventions. They take these ideas and turn them into business ventures. They often aim to change the way people live for the better. Innovators tend to be very motivated and passionate people. They look for ways to make their products and services stand out from other things on the market. People like Steve Jobs and Bill Gates are examples of innovative entrepreneurs.  Types of Entrepreneurship 6. Hustler Entrepreneurship People who are willing to work hard and put in constant effort are considered hustler entrepreneurs. They often start small and work toward growing a bigger business with hard work rather than capital. Their aspirations are what motivates them, and they are willing to do what it takes to achieve their goals. They do not give up easily and are willing to experience challenges to get what they want. For example, someone who is a hustler is willing to cold call many people in order to make one sale.  Types of Entrepreneurship 7. Imitator Entrepreneurship Imitators are entrepreneurs who use others' business ideas as inspiration but work to improve them. They look to make certain products and services better and more profitable. An imitator is a combination between an innovator and a hustler. They are willing to think of new ideas and work hard, yet they start by copying others. People who are imitators have a lot of self-confidence and determination. They can learn from others' mistakes when making their own business.  Types of Entrepreneurship 8. Researcher Entrepreneurship Researchers take their time when starting their own business. They want to do as much research as possible before offering a product or service. They believe that with the right preparation and information, they have a higher chance of being successful. A researcher makes sure they understand every aspect of their business and have an in-depth understanding of what they are doing. They tend to rely on facts, data and logic rather than their intuition. Detailed business plans are important to them and minimize their chances of failure.  Types of Entrepreneurship 9. Buyer Entrepreneurship A buyer is a type of entrepreneur who uses their wealth to fuel their business ventures. Their specialty is to use their fortunes to buy businesses that they think will be successful. They identify promising businesses and look to acquire them. Then, they make any management or structural changes they feel are necessary. Their goal is to grow the businesses they acquire and expand their profits. This kind of entrepreneurship is less risky because they are purchasing already well-established companies. THANK YOU!