Introduction to Entrepreneurship PDF

INTRODUCTION TO THE ENTREPRENEURSHIP ENTREPRENEURSHIP - setting up a business taking on financial risks in the hope of profit. ENTREPRENEUR - an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. CHARACTERISTICS OF AN ENTREPRENEUR Desire for respo...

INTRODUCTION TO THE ENTREPRENEURSHIP ENTREPRENEURSHIP - setting up a business taking on financial risks in the hope of profit. ENTREPRENEUR - an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. CHARACTERISTICS OF AN ENTREPRENEUR Desire for responsibility | Entrepreneurs feel a personal responsibility for the coming ventures with which they are associated. Preference for moderate risks | Entrepreneurs are not wild risk-takers, but they do take calculated risks. Confidence in their ability to succeed | Entrepreneurs tend to be optimistic about their chances for success and usually their optimism is based in reality. Desire for immediate feedbacks | Entrepreneurs like to know how they are doing and are constantly looking for reinforcement. High level of energy | Entrepreneurs are more energetic than the average person. Future orientation | Entrepreneurs have a well-defined sense of searching for opportunities. Skill at organizing | Entrepreneurs know how to pest the right people together to accomplish a task. Value of achieving one's money | Entrepreneurs' primary motivating force is achievement; money is simply a way of "Keeping score" of accomplishments. High degree of commitment | Launching a company successfully requires total commitment from the entrepreneurs. Flexibility | True entrepreneurs have the ability to adapt to the changing demands of their customers and their business. IMPORTANCE OF ENTREPRENEURSHIP Entrepreneurship teach us to: creates opportunity ensures social justice instills confidence stimulates the economy take risks fail and to persevere become creative, intentive and innorative. Entrepreneurship is a key driver of our economy. Entrepreneurship is more than just an economic term - it is a way of thinking. Entrepreneurship is a way of inspiring creative individuals to pursue opportunities despite its risks. What Makes Someone an Entrepreneur? Personal Attributes Creativity - development of new product Dedication - motivates the entrepreneur Determination - extremely strong desire to achieve success Flexibility - the ability to move quickly Leadership - the ability to create rules Passion- what gets entrepreneurs started and keeps them there Self-confidence- comes from thorough planning Smarts - common sense joined with knowledge CHAPTER 1: BUSINESS NAME - title under which a sole-proprietorship - combination of words or symbols that uniquely identifies a business or firm instead of a good or service BUSINESS LOGO - "face" of a company - graphical displays of a company's unique identity BUSINESS TAGLINE - tagline or slogan is usually a short tagline less than five words tells potential customers the benefits they can expect. - helps customers remember you and your company. BUSINESS LOCATION - the location identified for the operation of a business will impact on its success or failure. VISION future-based and are meant to inspire and give direction to the employees of the company, rather than to customers. MISSION purpose of the company, what it does and what it intends on achieving. OBJECTIVES result that a company aims to achieve. It also includes the strategies that people will use to get there. CHAPTER 2: Demand analysis -done to estimate or find out the customer demand for a product or service in a market. METHODS OF GATHERING INFORMATION 1 SURVEY 2 FOCUS GROUP DISCUSSION 3 OBSERVATION SURVEY - the most preferred instrument for in depth quantitative research. - the respondents are asked a variety of questions which are often about their personal information, their motivations and their behavior. COMPETITORS ANALYSIS Describe direct and indirect competition (as it pertains to the target markets only). For direct competitors, give market share, resources, product and market focus, goals, strategies, strengths and weaknesses. SWOT ANALYSIS -serve as a precursor to any sort of company action, such as exploring new initiatives, making decisions about new policies Internal factors The first two letters in the acronym, S (strengths) and W (weaknesses), refer to internal factors, which means the resources and experience readily available to you. Examples of areas typically considered include: Financial resources (funding, sources of income, investment opportunities) Physical resources (location, facilities, equipment) Human resources (employees, volunteers, target audiences) External factors External forces influence and affect every company, organization and individual. Whether these factors are connected directly or indirectly to an opportunity or threat, it is important to take note of and document each one. External factors typically reference things you or your company do not control, such as: Market trends (new products and technology, shifts in audience needs) Economic trends (local, national and international financial trends) Funding (donations, legislature and other sources) Demographics Relationships with suppliers and partners Political, environmental and economic regulations Strengths -describe what an organization excels at and what separates it from the competition Weaknesses -is a limitation, fault, or defect in the organization that will keep it from achieving its objectives. Opportunities -is any favorable situation in the organization's environment. Threats -is any unfavorable situation in the organization's environment that is potentially damaging to its strategy. CHAPTER 3: 7 P’s of Marketing Product -tangible goods or the intangible service that the enterprises offer to its customer in order to satisfy their needs and to produce their expected results. Price -pricing depends on the business objectives set by the enterprise. -it is the major factor for customers in buying a product. Promotion -the explicit communication strategy - ways you tell your customers about your products or services and how you then market and sell to them. Place -where your product or service is actually sold. Packaging -the way your product or service appears from the outside.. Positioning -provide a ranking for in terms of "INDUSTRY" -provide a ranking of your competitors People -responsible for every element of your sales, marketing strategies, and activities.