Entrepreneurship - 1st Quarter Assessment (PDF)

ENTREPRENEURSHIP - is the pursuit Opportunity - implies an offering that is of opportunity beyond resources novel in one or more of four ways. controlled. The opportunity may entail: Entrepreneurship as a career 1. Pi...

ENTREPRENEURSHIP - is the pursuit Opportunity - implies an offering that is of opportunity beyond resources novel in one or more of four ways. controlled. The opportunity may entail: Entrepreneurship as a career 1. Pioneering a truly innovative path product 2. Devising a new business model MSMEs success rate after 4 3. Creating a better or cheaper version years = 1:10 of an existing product 4. Targeting an existing product to The word entrepreneur was derived new sets of customers. from the French word entreprendre, which means to These opportunity types are not undertake. mutually exclusive. Entrepreneurs deliver creative "Beyond resources controlled" - implies destruction, which means getting resource constraints. At a new venture's rid of an old, obsolete way in order outset, its founders control only their own to use a new way of doing human, social, and financial capital. business. - Joseph Schumpeter (1883-1950) Many entrepreneurs bootstrap: they keep expenditures to a bare minimum MIND FRAME while investing only their own time and, as - the desire to provide solutions with necessary, their personal funds. a positive and optimistic mindset (AQ) Types of Risks HEART FLAME Demand risk - the strong willingness to attain a - relates to prospective customers' vision or fulfil a mission (EQ) willingness to adopt the solution GUT GAME envisioned by the entrepreneur. - the ability to sense without using the five senses or logical thinking Technology risk (SQ) - is high when engineering or scientific breakthroughs are Pursuit required to bring a solution to - implies a singular, relentless fruition. focus. Entrepreneurs often perceive a short window of opportunity. Execution risk They need to show tangible - relates to the entrepreneur's ability progress to attract resources, and to attract employees and partners the mere passage of time consumes who can implement the venture's limited cash balances. plans. Financing risk Consequently they are likely to be - relates to whether external capital unsettled wanderers. Entrepreneurs will be available on reasonable are maverick in the sense that they terms. instigate change and challenge the status quo, but they are not misfits. "Find something good and make it better." An entrepreneur is a: Problem Identifier - Determining if a problem is worth solving involves considering diverse approaches and perspectives, analyzing potential impacts, and understanding the Risk-taker reasons the market has failed to - In business, as well as in life address the problem. generally, it has always been the innovators - people looking for Effective Communicator new limits — who inspire us to - "Storytelling" by better futures and more success. In entrepreneurs-conjuring a vision of this fast-moving world dictated by a better world that could be technology, we need innovation to brought about by their venture-can thrive. Innovators can inspire each encourage resource owners to of us to stop for a moment to ask downplay risks and in the process ourselves what change we could commit more resources than they make today - big or small — to get would if they had not been a leg up on the competition. inspired. IDENTIFYING THE ENTERPRISE Enterprise - is a large-scale organization with a composite structure. Enterprise companies often have multiple divisions, each with its specialized function. For instance, a multinational corporation may have a marketing department, Maverick manufacturing infrastructure, legal - Evident suggests that entrepreneurs team, and resources for launching are not always among the best new projects. tend to produce or students, and they tend to be sell several products and services, restless in structured jobs. catering to multiple markets. They  may sell directly to consumers, serve other businesses, or both. Limited Liability Company - An LLC combines the legal protection of a "Enterprise" can also refer to starting a corporation with the tax treatment of a business or undertaking a venture. partnership. LCCs and other limited liability business structures are common THE PHILIPPINE CONTEXT with licensed professional firms, such as accountants, architects, engineers, The Philippines employs two criteria in doctors, and lawyers, due to their operationally defining MSMEs, namely protections for individuals. employment and asset size. PLANNING THE ENTERPRISE MSME stands for Micro, Small and Medium Enterprise. Business Plan A comprehensive document that Micro if it has less than 10 outlines a company's goals, employees strategies, and financial projections Small if it has 10-99 employees (Hubspot, 2024). It can be written Medium with 100-199 employees before setting up and revised during the business peak. Micro if it has up to Php 3,000,000 Purpose: asset size 1. serves the entrepreneur who must Small if it has Php set a navigational course 3,000,001-15,000,000 asset size 2. serves the investors and cautious Medium if it has Php financiers 15,000,0001-100,000,000 3. serves the internal stakeholders so they will be guided Types of Enterprise: WHAT IS A BUSINESS MODEL? Sole proprietorship - is a business owned A description of the means and methods and operated by a single individual. The a firm employs to generate sales revenue, owner benefits from all profits but bears profit, and cash flow (Go & Escareal-Go, unlimited liability for any damages and 2020). Has two parts and nine building debts resulting from business operations. blocks. Partnership - is a business run by two or more individuals or entities who share ownership. The distribution of ownership does not necessarily have to be equal. Corporation - is a for-profit entity designed to protect the owners) from liability in case of a lawsuit. The strucer or a corporation can vary depending on the Contents of a Business Plan VI. Product & Service Offerings I. Introduction (VMOKRAPI) - The product offering/s must be described by highlighting the a. The Business Concept and the features and attributes most Business Model appealing to and benefit the target b. The Business Goals: Vision, customers. Mission, Objectives, Performance Targets PESTLE ANALYSIS c. The Business Offering and P - Political Justification E - Economic Il. Executive Summary S - Social The synthesis of the entire plan T - Technological highlights the major arguments L - Legal why potential investors should E - Environmental participate in the business venture. VIl. The Enterprise Strategy and III. The Business Proponents Enterprise Delivery Systems Contains information about the business proponents or Inputs - Throughput - Output - Desired stakeholders. Outcomes - Marketing Four types: VIII. The Financial Forecasts and 1. Resource mobilizers and financial Expected Returns, Risks, and backers Contingencies 2. Technology providers and applicators IX. Environmental and Regulatory 3. Governance and top management Compliance 4. Operating and support team X. The Capital Structure and Financial IV. The Target Customer and Main Offering Value Proposition OPPORTUNITY SEEKING V. Market Justification - Entrepreneurs are innovative Based on: opportunity seekers. They love to 1. Supply-Demand Situation create value. Often, opportunities 2. Customer Needs and Wants come in different ways: 3. Industry Dynamics 4. Macro-Environmental Factors Personal Sources of Opportunities Education & Training Innate Skills & Hobbies Work Experiences & Exposures Family Ties  Conducive Entrepreneurial New Knowledge, New Investors, Environment New Systems Serendipitous Encounters New outlooks about how life should be led and a host of other Macro-environment Sources new things are tremendous sources of opportunities. PESTLE P - Political OPPORTUNITY SEEKING E - Economic S - Social T - Technological L - Legal E - Environmental Industry Sources Potential industry sources of opportunities: 1. Rivals or competitors 2. Suppliers of inputs 3. Marketing channels 12 R's of Opportunity Screening 4. Consumer market segments 5. Substitute products or services 1. Relevance 6. All other support and enabling 2. Resonance industries 3. Reinforcement 4. Revenues Market Sources 5. Responsiveness - Market sources of opportunities 6. Reach can be discovered from increased 7. Range or decreased demand as well as 8. Revolutionary Impact higher or lower supply. However, 9. Returns the threat of price war remains 10. Relative Ease strong. 11. Resources Required 12. Risks Micromarket It pertains to a clearly defined Opportunity Screening Matrix location or specific customer group - The ultimate goal of this that an enterprise wishes to serve instrument is to narrow down the many opportunities into one or two Consumer Preferences, Piques, and attractive ones. Perfections 1st: Battle for the Mind The Pre-feasibility Study 2nd: Battle for the Heart - This time, the entrepreneur must 3rd: Battle for the Wallet review the details and consider the following factors.  Investment Requirements and 1. Market potential and prospects Production/Servicing Costs 2. Availability and appropriateness of Pre-operating Costs technology Production/Service Facilities 3. Project investment and detailed Investment cost estimates Working Capital Investment 4. Financial forecast and determination of financial Financial Forecasts and Determination feasibility of Financial Feasibility - The financial forecasts refer to the Market Potential and Prospects - refers monetary transactions that the to the estimated number of possible business is expected to engage in. customers who might avail of the product Its result will indicate the or service. Narrowing down your feasibility of the enterprise. estimation to the relevant population or target customers in the area is ideal. Income Statement - Measures an enterprise's performance in terms of Assessing Competition and Estimating revenues and expenses over a certain Market Share & Sales period. REVENUE - EXPENSES = Who has dominance? PROFIT/LOSS Who has greater bargaining power? Which segments are over-served Balance Sheet - Reports a company's and underserved? assets, liabilities, and shareholder equity at Are there more attractive market a specific point in time. ASSETS = segments? LIABILITIES + EQUITY (A=L+E) Methods for Quantifying the Market Financial Ratios and Measurements - - there are many methods for compares line-item data from a quantifying the market depending company's financial statements to evaluate on the availability of published its profitability, liquidity, efficiency, and information, consumer surveys, solvency. and market tests. Technology Assessment and Operations Viability - at least four target customer expectations are affecting the scale and complexity of an enterprise's operations: 1. Quantities demanded 2. Quality specifications demanded 3. Delivery expectations 4. Price expectations