Entrepreneurship Study Notes

Okay, here is the converted text from the images into a structured markdown format. I have focused on transcribing the text accurately, structuring it with markdown headings, lists, and tables, and converting mathematical formulas to LaTeX format where applicable. ```markdown NO: DATE: # Introduc...

Okay, here is the converted text from the images into a structured markdown format. I have focused on transcribing the text accurately, structuring it with markdown headings, lists, and tables, and converting mathematical formulas to LaTeX format where applicable. ```markdown NO: DATE: # Introduction to Entrepreneurship ## What I need to know * Entrepreneurship is encouraged by the economy beacause it can provide a lot of opportunities for unemployed people. * It will increase per capita income, improve standard of living, and increase individual savings. * Provide revenue to the government in the form of income tax, value added tax, export duties, import duties and balanced regional development. ## 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 * Which means that because of entrepreneurship many organizations will exist 3. Improving Standard of Living * This means that entrepreneurship can lift up the socio economic status of an individual. --- NO: DATE: 4. Means of economic Development * This means that not only the life of the enterpreneur is improved but also the society where the business is located. ## Concept of Entrepreneurship The word "entrepreneur" was derived from the french verb "enterprendre", which means "to undertake". This is pin-pointing to those who "undertake" the risk of enterprise. Entrepreneurs are innovators. They are willing to take the risks and generate unique ideas that can provide profitable solutions to the needs of the market and the society. ## Factors affecting Entrepreneurship 1. 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. --- NO: DATE: * 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. 2. Environmental Factors * Which include political, climate, legal system, economic and social conditions and market situations. ## Common competencies 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 gy his employees. 4. Opportunity seeker * An enterpreneur must have the ability to be the first to see business chances --- NO: DATE: 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 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. --- NO: DATE: 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. ## Types of Entrepreneurs 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 economic ideas. 2. Imitating Entrepreneur * 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 Entrepreneur * They are those who live on the labor of others.they are die-hard conservatives even ready to suffer the loss --- NO: DATE: s. Social Enterpreneurs * 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 Opportunities 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 enterpreneur can be employed as a researcher by an enterprise. 4. Salesfor * The entreprenuership graduate can apply as a salesman. --- NO: DATE: 5. Business Reporter * The entrepreneur, being expert in the field, can be employed as a business reporter. ## Entrepreneurial Ideas * The creation of an entrepreneurial idea leads to the identification of entrepreneurial opportunities, which in turn results in the opening of an entrepreneurial venture. ### The Entrepreneurial Process of Creating New Venture Creation of entrepreneurial ideas -> Indentification of Entrepreneurial Oportunities -> Opening of an Entrepreneurial Venture ## Essentials in Entrepreneurs Opportunity - Seeking ## Basic Foundation of Entrepreneur 1. 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 riss-taker, an entrepreneur can find solution when problems arise. --- NO: DATE: 2. Entrepreneurial heart flame entrepreneurs are driven by passion, they are 1.1 attracted to discover satisfaction in the act and process of discovery. Passion is the great desire of an enterpreneur to achleve his/her goals. 3. Entrepreneurial gut game. This refers to the ability of the enterpreneur of being intuitive. This also known as intuition. The gut game also means confidnce in one's self and the firm belief that everything you aspire can be reached. ## Sources of Oportunities 1. Changes in the Environment * Entrepreneurial ideas arise when changes happen in the external environment. A person with an entrepreneurial drive views these changes positivaly. * External environment refers to: * Physical Environment * Sociatal environment * Industry enviroment --- DATE: NO: 2. 1 The Physical environment includes: * Climate - the weather conditions. * Natural Resources - such as minerals , forests, water and fertile land that occur in nature and can be used for economic gain. * Wildlife - includes all mammals, birds, reptiles, fish, etc. that live in the wild. 3. 2 The Societal Environment: * Political Forces- Includes all the laws, rules and regulations that govern bussiness practices as well as the permits, approvals and licenses necesssay 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 thchnology innovations. 4. 3 The Industry Enviroment * Competitors * Customers * Creditors * Employees * Goverments * Suppliers NO: DATE: 2. Technological discovery and advancement * A person with entrepreneurial interest sees possibility of business opportunities in any new discovery or bacause of the use of latest technology 3. Goverment's thurst, program, and policies * The priorities, projects, programs, and policies of the government are also good sources of ideas. 4. People's Interest * The Interest, hobbies, and preferences of people are rich sources of entrepreneuria ideals, like the increasing number of Internet cafes at present could lead to the strong attachment of young people to computers. 5. Past Experiences * The expertise and skills developed by a person who has worked in a particular field many lead to the opening of a related business enterprise. "Forces of Competition Model" * It is also known as the "five forces of competition". An industry enviroment is a competitive enviroment. * Regardless of what product or services you have competition is always present. --- NO: DATE: ## Competition * It is the act or process of trying to get or win something. * Buyers * Potential new entrants * Rivalry among existing firme * Subtitute products * Supplier ## 1. Buyers The buyers are the ones that play cash in exchange for your goods and services. One example is the influence of the price or in the bargaining strategy. The buyers has a strong and magnified bargaining pwoer. The threat of its bargaining power will be less if the following factors are notices. * There are several suppliers available in the market * The buyer has the potential for backward intergration * the cost of swiching the supplier cost is minimal * the produce represent a high percentage of the buyer's cost * The buyer purchases large portions of the seller's product or services. NO: DATE: ## 2. Potential New Entrants * A new entrant is defined as companies or business that have the ability to penetrate or enter into a particulr industry. * Substantial capital requirement * strict government policy * Difficulty in accessing distrubution channels * Economic of scales. * High cost of product differentiation * High switching cost ## 3. Rivalry among existing Frms * Rivalry is a stats on situation where in business organizations are competing eith each other in aparticular market. * Diversity of rivals * Number of competing firms * characteristics of the product or services. * Increased capacity * Amount of rixed costs. Rate industry growth --- NO: DATE: 1. Substitute Products Substitute is one that serves the same purpose as another product in the market * Switching cost is low Preferences and tastes of the customers easily change Product differentiation is highly notice able The quality of substitute products dramatically improves The price of tubstitute product is substantially lower 2. Suppliers The supplier are the one that provide somthing that is neededs in bussness operations such as office supplies and equipment.The supplier has the ability for forward integration * suppliers in the industry are few, but the sales voulume is high * Substitue products are not readily available in the market * The switching cost is very high * The product or service is unique --- NO: DATE: ## Recognized and understand the Market ### Value Proposition (VP) * Is a business of marketing that summarizes why a consumer should buy a company's product or use it's service. * In creating Value Proposition,entrepreneurs will consider the basic elements: 1. Target Customer 2. Needs opportunity 3. Name of the product 4. Name of the enterprise/company An important aspect in Value Proposition is that it must be truthful and that it should establish credibility to the consumer. --- * Unique Selling Proposition (usp). * Refers to how you sell your productor services to your custome. you will address the wants and desires of your customer. * Unique * Clearly sells you apart from your competition, poisitioning you the more logical choice. * Selling * It persuades another to exchange money for a product on service * Propositions * It is a proposal or offer suggersted for acceptance * Some tips for the entrepreneurs on how to create an effective unique selling proposition to the target customers are: * Identify and rank the uniqueness of the product or services charader * Be very specific * Keep it short and Simple (Kisst) --- NO: DATE: 1 At An entrepreneur present the best feature of your product or service that different from other competilors Identifying ther unique selling proposition requires marketing research in promotion your products orservicesi make sure that it is very spesific and put detalls that empasize the differentator aganist the competilor keep at stort simple and think of a tagline that is easy toremembe A A Target Market Is in the most identilication procers that aims to determine the buyers with commun reeds and characteristics prospect customer are a market segment that an entrepreneurial venture intends to scrve commonly used methode for segmenting the markets are follows * Geographic segmentation The total market is divided according to geographicat location variables for consider * Climate * Dominantes ethnic group * Culture * Density leiter rusal or serbian --- NO: DATE: B. Demogranthic Seymemlation * divided based on customer variables to consider" 1. Gender 2. Age 3. Income 4. Occugation C Psychologial Sejmestation * Divided th terms of how customer think and believe variables to consider 1) Needs and wants 2) Attilides 3) Social class 4) personality traits D Behavioral Sejmestation a divided according to customer beharmor patiens as they interact with a company 34 A perceptions B knowlegde C reaction Renuiremerts to the --- NO: DATE: Thert can be two types of the customer requirements 1 senvice Requirmertr 2 output Requismertra. senvice requirmerta A intargible thing for product that cannot be touched bur the aystomen Can feel the fulfillmen there are in service requirement like sernice, with a smile easy payment elc. It the -The elenents service requismertis like on time deliveryservice widh a smill easy payment etc. It inchiedes an anpects of how a customer expects to be treated white purchasing 4 producto and drow easy the buying process goes". output requismertis "tangible sing or sings that cam be seen charicteric specifications that a consumers Expects to be follbilledth the product coustmers with a vaill servises As A produces 1 then various service Requirements can dake the form of autput requirmonts for exampte if the the customers hires a multi cad chen -On timé arriuals,becomes An output requirmont customer boys gadgets (phone speaker) the specifitation like che Louidniess and danity,are the Output requiremen 1 Marke size *Ine the entreprenurs most criscal task is Co cakutate the Market size and value that marter of Has gor thein start-up businessMarket research with determine che entrepreneur's jossible customers in omc localitys * Market size Is lilke A size of the arena NO: DATE 14 Market Size -is like a size of the arena will play hair business. it is seller and buyers in a particm interested in knowing tha market -new product or service in this In determining the market sts strategic marketing research sellers and buyersina particlar mars interested in knowing tha mank new product or service the one arma this = enirepreneurs ind research prom metho el tho