Entrepreneurial Mind Class Orientation PDF

ENTREPRENEURIAL MIND CLASS ORIENTATION COURSE DESCRIPTION This Course will discuss the characteristics of an entrepreneurial mindset and how an aspiring entrepreneur should think. This module will also discuss about entrepreneur’s resources for transformation of idea and...

ENTREPRENEURIAL MIND CLASS ORIENTATION COURSE DESCRIPTION This Course will discuss the characteristics of an entrepreneurial mindset and how an aspiring entrepreneur should think. This module will also discuss about entrepreneur’s resources for transformation of idea and pursuit of knowledge which are essential for a successful entrepreneurship. CLASSROOM RULES ATTENDANCE IS A MUST - 5 ABSENCES MEANS YOUR DROPPING OUT PANCTUALITY - 15 MINUTES GRACE PERIOD WILL BE GIVEN, ANYTHING OR ANYONE WILL ARRIVE AFTER 15 MINUTES WILL BE CONSIDERED AS LATE. 3 TARDINESS IS EQUAL TO 1 ABSENT ONE MOUTH POLICY - RAISE YOUR HAND IF YOU WANT TO SHARE SOMETHING. REQUIREMENTS: Case Analysis Quizzes Major Examinations Business Proposal GRADING SYSTEM: Major Examinations - 40% (Midterm and Finals) Class Standing - 60% Quizzes– 20% Recitation – 25% Discussion /Paper Outputs/ Seatworks – 15%  SELF INTRODUCTION State your name, age, residence Tell us something about yourself  LESSON 1: Introduction to Entrepreneurship WHY DO WE NEED TO STUDY ENTRPRENEURSHIP? Because universities focus on traditional programs, the Philippine government approved the Youth Entrepreneurship Act in 2015 to promote the sustained development of young Filipinos in the areas of finance and entrepreneurship. Through this Act, the government intends to change the mindset of Filipinos from wanting to be employees to being business owners. Initiatives under this law include standardizing the current programs of schools on entrepreneurship and financial literacy, providing government assistance and training programs to students, developing mentoring and coaching programs for young entrepreneurs, and setting up incubation laboratories and creative spaces in schools. WEALTH CREATION, MANAGEMENT AND ITS VALUE Wealth creation process of creating and building a stable source that could be owned and controlled, tangible or intrangible. Assets could be tangible like a car, house, furniture, machinery etc. or intangible like goodwill, copyrights, patents, trademarks etc Employees are not assets because the company don’t own them or have sufficient control over them. They are called as resources of a company. Mr. Robert Kiyosaki says that, anything which gives profit is an asset and others are liabilities. WHAT IS ENTREPRENEURSHIP? The word Entrepreneur is derived from the French entreprendre, meaning “to undertake.” It was a term coined by Richard Cantillon, a French economist. It is the creation or extraction of value. entrepreneurship is viewed as change, which may include other values than simply economic ones. An entrepreneur is a creator or a designer who designs new ideas and business processes according to the market requirements and his/her own passion THEORIES OF ENTREPRENEURSHIP Various thinkers have propounded various theories of entrepreneurship development or development models of entrepreneurial class. THEORIES OF ENTREPRENEURSHIP Innovation Theory - Joseph A. Schumpeter is the propounded of innovation theory. The assumptions are: (1) The entrepreneur is born with the desire to establish his own industry, also (2) He desires to do something new. (3) Takes pleasure of creativity and earning experiences of skills Theory of Need of Achievement -The need for achievement theory was propounded by McClelland. His assumption is that the Desire of high achievements obtaining specific achievements, making the best performance, touching the heights of excellence, developed Entrepreneurial tendencies in the individuals. THEORIES OF ENTREPRENEURSHIP (CONT) Innovation Theory - Joseph A. Schumpeter is the propounded of innovation theory. The assumptions are: (1) The entrepreneur is born with the desire to establish his own industry, also (2) He desires to do something new. (3) Takes pleasure of creativity and earning experiences of skills Behavior Theory - This theory was propounded by John Kunkel. He assumes that the entrepreneurial development of any society depends upon its past and exiting economic social aspirations. FIVE DIMENSIONS OF ENTREPRENEURIAL DEVELOPMENT ACCORDING TO THOMAS BEAGLE AND DAVID P. BAYAD Need for high achievement. The Entrepreneur is controlled by self, rather than by luck. The entrepreneur always remains ready to take the risk in anticipation of returns and assets. The entrepreneur also remains ready to take the uncertainties and ambiguities The behavior of the Entrepreneur may include making hurry in almost all activities and feeling the pressure of time and sometimes getting hyperactive and aggressive THEORIES OF ENTREPRENEURSHIP (CONT) Entrepreneurial Group Theory - This theory was propounded by Frank W. Young. The theory is based on the assumption that expansion of entrepreneurial activities is possible only by entrepreneurial groups. Social Change Theory - This theory of entrepreneurship development has been propounded by Max Weber. For the first time, he stated that the emergence and development of the entrepreneurs depend upon ethical values system of society. Cultural Theory - Coined by B.F. Hauslin, he stated that industrial entrepreneurial development is possible only that society, where social procedures are unstable, alternatives of employment to persons are widely available and the society which encourages personality development of enterprising persons THEORIES OF ENTREPRENEURSHIP (CONT) Cultural Value Theory - Cultural value theory has developed by Kroken. He emphasized cultural values, expected rules, and social approvals have specific importance in entrepreneur development. Socio-Cultural Value Theory - This theory of entrepreneurship development was propounded by Stokes. He is of the view that during the period of economic transition, socio-cultural values play a very important role. Economic Theory - This theory has been propounded by Pepuek and Hassis. Their assumption is that physiological motivation for economic gains or increase in real income exists in every society. ENTREPRENEURIAL DISPOSITION THEORY Entrepreneurial Disposition Theory - Coined by T.V.S. Rao. His assumption is courageous Entrepreneurial disposition is very important for entrepreneurial development. ENTREPRENEURIAL DISPOSITION THEORY Process of Stage Theory - Also developed by Venkat Rao. His assumption is that entrepreneurship development a process of five following stages: Simulation-in this stage, the environment is built for development of entrepreneurs Identification of Entrepreneurial Abilities and Capacities in the Society-at this stage identification of entrepreneur is carried out and advanced systems are adopted Development and Expansion of Entrepreneurs- at this stage, various programs are organized for the development of entrepreneurs, which include vocational guidance programs, management Training, and Technical training ENTREPRENEURIAL DISPOSITION THEORY Process of Stage Theory (CONT) Promotion- at this stage, various support organizations, like Central labor organizations, state-level organizations, and Research, testing and Standards organizations, etc. are established for the expansion of economic activities and entrepreneurial promotion. T Follow Up-At the last stage, follow-up of government programs and policies formulated for entrepreneurial development is undertaken MYTHS OF ENTREPRENEURSHIP To have a good grasp of entrepreneurship, we need to dispel misconceptions that were created due to lack of research in the past. Entrepreneurs Are Doers, Not Thinkers - Entrepreneurs are actually doers at the same time that they are thinkers. We need entrepreneurs who lead us with clear vision and serve as role models in achieving the company’s aims and purposes. Entrepreneurs Are Doers, Not Thinkers - Entrepreneurs are actually doers at the same time that they are thinkers. We need entrepreneurs who lead us with clear vision and serve as role models in achieving the company’s aims and purposes. Entrepreneurs Are Always Inventors - Not all inventors end as entrepreneurs; not all entrepreneurs are inventors. Entrepreneurs are innovators, though. Entrepreneurs Are Academic and Social Misfits - Not all drop outs are successful entrepreneurs; not all successful entrepreneurs are drop outs. Likewise, entrepreneurs are recognized in and by society due to their enormous contributions. Today, entrepreneurs are considered as heroes – socially, economically and academically Entrepreneurs Must Fit the “Profile” There is no such profile of an entrepreneur. Entrepreneurs are as varied as they come. All Entrepreneurs Need Is Money - We need ideas to start with an entrepreneurial undertaking, not only money. There are other factors contributing to the failure of a business, such as poor financial planning, managerial incompetence, poor investments and poor planning. All Entrepreneurs Need Is Luck - You need hard work to be successful. Actually, luck happens with preparation, determination, desire, knowledge and innovativeness. Ignorance Is Bliss for Entrepreneurs - You need the right information/data when making decisions Entrepreneurs Seek Success but Experience High Failure Rates - Not all experience failure. Some succeed after some failure, and some fail because they are yet learning how to succeed. TYPES OF ENTREPRENEURIAL VENTURES Survival Ventures: Provide basic subsistence for the entrepreneur and his/her family, in effect allowing for little more than a hand-to-mouth type of existence. The business exists to provide for basic personal financial needs, once costs are covered there is generally no capacity to reinvest into the venture Lifestyle Ventures: Provide a relatively stable income stream for owners based on a workable business model and a maintenance approach to management. Usually, it has a single location, and employees, but does not seek meaningful expansion or growth Managed Growth Ventures: Has a workable business model and seeks stable growth over time, as reflected in occasional new product launches, periodic entry into new markets, steady expansion of facilities, locations and staff, and development of a strong local and regional brand. ESSENTIAL CHARACTERISTICS OF AN ENTREPRENEURS Good listener - Listen to people's needs and concerns and find opportunities to help them. You can't help others if you don't know what they need, and you find out what they need by listening. Positive Attitude - A consistently negative attitude makes people dislike you and drives away referrals; a positive attitude makes people want to associate with you. Helps others/collaborative - People want to network with individuals who have a collaborative attitude. Helping others can be done in a variety of ways, from emailing a helpful article to someone to putting them in touch with a person who can help with a specific challenge. Sincere/authentic - You can offer the help, the thanks and the listening ear, but if you're not sincerely interested in the other person, they'll know it Follows up - If you offer opportunities, whether it's a simple piece of information, a special contact or a qualified business referral, to someone who consistently fails to follow up, you'll soon stop wasting your time with this person Trustworthy - It doesn't matter how successful the person is; if I don't trust them, I don't work with them. When you refer someone, you're putting your reputation on the line. Approachable - People will forget what you said and what you did, but they'll never forget how you made them feel. In other words, when you're approachable, people feel comfortable. When they feel com-fortable, relationships are born THE ENTREPRENEURIAL PROCESS The four stages of the entrepreneurial process are defined as follows: Innovation, which includes generating the idea, innovation, identifying a market opportunity, information search, conception, screening ideas for feasibility, identifying where to extract value and the development of the product or service. Triggering event, which includes gestation, the motivation to start a business, the decision to proceed, the business planning, identifying the different resources required, risk assessment, resource acquisition and assembling.  Implementation, which includes infancy, incorporation, setting up and launching the new venture, business strategy, implementing the business plan, running the business, deploying of resources, building success and managing the venture. Growth which includes adolescence, maximizing profits, harvesting the rewards and continually growing the venture to include other opportunities. MOST COMMON ENTREPRENEURSHIP MYTHS. Entrepreneurs are born that way- Many people assume that entrepreneurs are born that way — and that only people who have certain natural talents can be entrepreneurs The only requirement is a good idea - Many people also believe that all it takes to live the American dream is to have that one fantastic idea for a company While the notion isn’t entirely false, it is misleading. Even the very best ideas — ones with the potential to disrupt an entire industry — need proper execution to become reality Starting a new business guarantees freedom - there will be more freedom in some respects, but entrepreneurism often requires great sacrifices. It can consume every part of your waking life; the work doesn’t end when the clock strikes 5 p.m. Launching a company quickly leads to wealth- Although some companies are immediately successful, others take a little more time to get there. Only money motivates employees - A myth related to the “get rich quick” idea is the assumption that money is the best way to motivate employees. Recent statistics have shown that Millennials, who are quickly becoming the majority in the workplace, would rather earn less at a job they enjoy than secure a higher wage doing something they hate. Businesses either flourish or fail - Because the select few startups that skyrocket out of the gate receive the bulk of the press, it’s easy to adopt an all-or-nothing outlook on entrepreneurism All responsibility falls on the entrepreneur - Another misconception about running a new business is that everything depends solely on the entrepreneur. There’s a secret, “silver bullet” key to success - The reality is that a single key to success does not exist. If anything, entrepreneurial success requires a keychain of different ideas, people, and resources that must come together at the right time and place. Businesses need someone with an MBA at the helm - Confusing value and necessity is a mistake when it comes to entrepreneurs and business degrees. On the one hand, a formal education provides immeasurable benefits. On the other, the market does not require entrepreneurs to have an MBA or other business degree Quitting is for losers - One final misconception is the idea that entrepreneurs have to stick everything out — no matter what. But the fact is that not every idea will blossom into a sustainable company. Successful entrepreneurs often cycle through and try out many ideas before they find one that has legs THE IMPORTANCE OF ETHICS IN KEY AREAS OF BUSINESS Integrity It is important that entrepreneurs today don’t get caught up in moneymaking schemes and lose sight of the importance of doing the right thing for the common good Any entrepreneur who willfully and dishonestly engages in business activity with the motive of ripping people off or profiting at the expense of others, creates a harmful business environment of distrust and antagonism. When you build a business on integrity, and set off with an attitude of nobility, humility and service, and the intention of making a living by providing your community with needed goods and services, you contribute to, rather than detract from, the general good. An early and consistent stand against questionable conflicts of interest is an important aspect of any entrepreneur’s ethics effort. Labour An entrepreneur who sets out to cheat or underpay his employees will indefinitely cause his organization to suffer and be subject to high staff turnover, low morale, dishonesty among other negative things that could cause the downfall of the business. It is important to treat all employees well as they represent the business daily, but it will also benefit the entrepreneur because most people are more likely to reciprocate what behaviours and attitudes they receive. It goes without saying, that when good work habits are developed and practiced by all within an organization, a special bond is formed and a loyalty to the company becomes apparent. Clientele Your clients are your key stakeholders and it should be quite obvious as to how dependent your business is on its customers. The entrepreneur today should seek out the opportunity to personally treat all clients well, and express great and humble appreciation when they support your business. The ideal way to do this is to always strive to provide goods and services that are of the best quality and service, as good as you can make or get them, for your clients. An entrepreneur with an honest motive and good ethical sense will realize that doing and giving the best to clients every day is not only a good business decision, but a wise and ethical choice as well. Environment It is difficult, and possibly unavoidable, to engage in business while having no impact on the environment. Even if you’re in the craft business, your clients are looking on to see how you utilize resources or recycle products. If you are truly invested in reducing your business’s Eco-footprint, then you can have a much greater impact, not just in the business world, but in the community and environment as a whole. The ethical entrepreneur today should explore, welcome, and employ the many ways that a business can reduce its Eco- footprint on the environment, including recycling, reducing energy waste, carpooling, minimizing paper packaging and usage, and reducing wasteful business practices among other things. The entrepreneur today should embrace doing business ethically in order to improve their standards. Good business ethics should be visible to all who come into contact with the business. Ethical policies should be included in business plans, in the business’s mission statements, and in all other business documents. The ethical entrepreneur ought to seek out favorable opportunities to make his or her ethical commitment bona fide. It is the business of an entrepreneur to communicate clearly to all, from the initial stages of business, the ethical standards they employ The ethically made entrepreneur should be un-naively aware of the inevitable and unavoidable tensions in the business world, and anticipate these tensions not with fear, but with resilience, and so be able to put in place, a reasonable action plan that helps the entire team to deal with these tensions before the situations are actually encountered Ethical values and the commitment to continued ethical practices must be reworked and re-communicated every time change occurs, thereby preparing all involved in the business to deal with the changing and evolving ethical dilemmas. It is imperative, that the entrepreneur today understand that the business they run has responsibilities to everyone