Entrepreneurship Reviewer PDF

Lesson 1: Introduction to Entrepreneurship 2. Colonial Expansion: first global companies, merchants build trading post along trade  Entrepreneurship: art of starting a business; act o...

Lesson 1: Introduction to Entrepreneurship 2. Colonial Expansion: first global companies, merchants build trading post along trade  Entrepreneurship: art of starting a business; act of routes, provide shipping crews (tobacco, creating a business/business sugar cane)  Ages of Business Failures 3. Industrial Revolution: entrepreneurs would 1. Engage in small & medium sized businesses invent something and sell it and move to 2. Initiating social change, creating an net invention, invention increase innovative product, or presenting a new life productivity and automate manufacturing, changing solution. scale manufacturing to reduce cost,  Five Stages of Business Life entrepreneurs transformed 19th century 1. Seed Stage: thought/idea commerce and industry, produced 2. Decline stage: changes in remarkable achievements (technology, economy/market/society can end business transportation, energy, communication, 3. Growth Stage: competition is surfacing industrial productions) 4. Exit Stage: big opportunity of business to 4. 19th Century: advertising, use of mass media cash in all effort or can mean shutting down 5. Information Age: internet allowed for global the business reach, small business marketplace 5. Expansion Stage: small business owner  Motivation derived from the word “motive” chance to gain larger market share and find (prompts any person to act in a particular manner. new revenue/profit.  Why is motivation required?  Causes of Business Failures 1. Tough competition 1. Neglect: 3.0 2. Unfavorable environment 2. Fraud: 1.1 3. To create public demand 3. Lack of Technical Expertise: 8.5 4. To enhance creativity and increase 4. Lack of Management Experience: 17.4 productivity 5. Lack of Experience: 21.2  6C’s that motivates the entrepreneurs 6. Incompetence: 44.9 1. Change 7. Disaster and other reason: 3.9 2. Challenge  Entrepreneurship started in France after French 3. Creativity Revolution 4. Control  Entrepreneur was coined by Jane Baptiste Say 5. Curiosity  Entrepreneur originated from the word 6. Cash “entreprenede” (to undertake)  What makes the successful entrepreneurs?  Entrepreneur is the creator who designs new ideas 1. Good physical health  Entrepreneur needs to have managerial skill, 2. Superior conceptual abilities leadership skills and strong team building abilities. 3. Generalist  Who are the entrepreneurs? 4. High self-confidence 1. take and accept risk 5. Strong personal drive 2. own ventures 6. Control and direct 3. establish new ventures and develop existing 7. Interpersonal skill ones 8. Risk takes 4. identify new opportunities in the market 9. Realistic outlook 5. apply their expertise 10. High degree for emotional stability 6. process market information 11. Low need level for status 7. bring innovation  Myths, Fears and Excuses of People who are not 8. maximize investment returns Entrepreneur 9. provide leadership 1. Born  Evolution of Entrepreneurs 2. Super human 1. Renaissance Tradesmen: merchants and 3. Inventors craftsmen 4. Inherit business traits 5. Posses definite characteristic profile  6. Gender difference myths 4. 11% Arable and cultivated 7. Academic and social misfits 5. 4% plains and grasslands 8. Gamblers and risk takers  Filipinos excellent human relations 9. Luck and money are the needs to become 1. Pakikipagkapawa-tao entrepreneurs 2. Pakikibagay 10. Experienced a lot of failures 3. Pagmamalasakit  Advantages of becoming an Entrepreneur 4. Pakikisama 1. Create your own destiny 5. Bayanihan 2. Financially well-off  Filipinos value of self-esteem and good public image 3. Knowing yourself better 1. Amor-Propio 4. Excel, be recognized and contribute to 2. Delicadeza society 3. Mapahiya  Why do people become entrepreneur?  Filipinos are courageous 1. Change the world 1. Bahala na 2. Don’t want to be a boss 2. “Ang makipagsapalaran sa Maynila” 3. Flexible hours  Filipinos ability to withstand crisis 4. Rick takers 1. Have natural strength of character and a 5. Don’t fit into corporate environment strong sense of faith in God. 6. Curious 2. Extreme personalism 7. Ambitious 3. Extreme family-centeredness 8. Can’t get a job 4. Lack of discipline 5. Passivity and lack of initiative 6. Colonial Mentality Lesson 2: Entrepreneurship in the Philippine Setting 7. Kanya-Kanyasyndrome 8. Lack of Self Analysis and Self Reflection  Glimpse of the Philippines  DTI (Department of Trade and Industry) 1. Mountainous terrain 1. Responsible for realizing the country's goal 2. 30,000,000 hectares of land of globally competitive and innovative 3. has 7,100 islands in the archipelago with industry and services sector. Luzon, Visayasand Mindanao as the largest 2. Philippine Development Plan (PDP): reduce regions. inequality and poverty by expanding 4. has rich and diverse resources. economic opportunities in industry and 5. fit for agricultural activities. services by increasing MSMEs. 6. Rice, corn, fruits and vegetables grows best a. Increase local and foreign direct 7. Abaca, coconut and sugarcane are products investments widely seen around the country b. Increase competitiveness, 8. important minerals are mined: Gold, Silver, innovativeness and resilience of copper, nickel, bauxite and carbon industries and services 9. oil reserves in Palawan and in the much c. Improve access to finance, to contested, Spratly Islands production networks, and to 10. Dry and Typhoon Season markets 11. Tagalog-based language and d. Enhance productivity, efficiency, 12. more than 100 dialects and resilience 13. Mostly Catholic religion e. Ensure consumer access to safe 14. In the typical Filipino environment, and quality goods and services. entrepreneurship is not so much  Board of Investment (BOI) encouraged at an early age  Philippine Economic Zone Authority (PEZA)  Marine Sources  Bureau of Product Standards (BPS) 1. 42% FORESTED  Accreditation Scheme (BAS) 2. 8% Urban, water underdeveloped  BPS Laboratory Accreditation Scheme (BPSLAS) 3. 15% Arable and uncultivated  Micro, small and medium enterprises (MSMEs): 1. Great human relations backbone of the PH’s economy 2. Self-esteem and good public image  DTI 7M’s: to make difference in market which 3. Adventurous sustain the Filipino entrepreneurship 4. Courageous 1. Mindset 5. Ability to withstand crisis 2. Mastery  10 reasons for doing business in the Philippines 3. Mentoring 1. Incentives to foreign investors, opening 4. Markets opportunities 5. Money 2. Earning and capital can be freely converted 6. Machines 3. Wave of privatization and deregulation 7. Models of Business 4. Financial markets is the most emerging  DOLE (Department of Labor and Employment): securities markets formulates policy and programs and protects 5. Most accessible countries because of employers and workers colonizers  SEC (Securities and Exchange Commission): 6. Location is potential source for seeking registration of securities, analysis of every registered suppliers worldwide security, and evaluation of the financial condition 7. Has skilled, trainable and inexpensive labor and operations of applicants for security issue force, many speaks in English  SSS (Social Security System): social insurance 8. Exporter of agricultural products, minerals program for employees in the Philippines and raw materials  HDMF (House Development Mutual Fund): benefits 9. Competitive producer in regional/world Pag-IBIG fund, offers assistance in housing needs markets  PhilHealth (Philippine Health Insurance Corporation): 10. Huge domestic market for modern offers basic health insurance and health care consumer goods financing  Business Ideas in the Philippines 1. Palamig business: 150-3,00 2. Costume rental: 5000 3. Cellphone loading business: 5k-45k 4. Online buy and sell: 10k 5. Vlogging 10k-30k+ 6. Photo booth rental 70k-100k 7. T-shirt printing business: 105k-200k 8. Water refilling station: 100k-300k 9. Food cart franchise: 50k-300k Lesson 3: The Entrepreneurs  Entrepreneur: innovator  David McClelland (1961): entrepreneur as primarily motivated by an overwhelming need for achievement and strong urge to build  Collins Moore (1970): studied 150 entrepreneurs and concluded that they are tough, pragmatic people driven by needs of independence and achievement.  MSMEs: 200 workers/100M assets They seldom are willing to submit to authority  99.6% small and medium sized enterprises  Cooper, Woo, and Dunkelberg (1989):  820,795 micro business, 86,955 small businesses, entrepreneurs exhibit extreme optimism in their 4,018 medium businesses decision making process. In a study of 2994  Filipino Values entrepreneurs they report that 81% indicate their personal odds of success as greater 70% and a  remarkable 33% seeing odds of success of 10 out of  4 types of Entrepreneurs 10 1. Innovating: introduces new  Characteristics of an Entrepreneur ideas/good/services 1. Motivation: willing to take initiatives 2. Imitative: characterized by readiness to 2. Risk Tolerance: large appetite for assuming adopt successful innovations, do not risk innovate the changes, they only imitate 3. Vision: decide where business should go techniques and technology 4. Mental Ability and Creativity: anticipate 3. Fabian: lack the will to adopt new methods changes, recognize opportunities and productions, imitate only when failure 5. Clear Objectives: objectives to be achieved would not result in loss of relative position in the business 4. Drone: refuse to adopt opportunities to 6. Good Communication Skills make changes in existing method 7. Human Skills: emotional stability, good  Contributions of Entrepreneurs inter-personal relations, consideration and 1. Develops new market tactfulness 2. Discover new source of materials  Traditional Entrepreneur: build something of 3. Mobilize capital sources recognized value around perceived opportunities 4. Introduce new technologies. Industries, 1. Motivated by gain products 2. Seeks personal shareholder gain 5. Create employment 3. High levels of interest 6. Economic development 4. Low levels of social conscience  Determinants of Entrepreneurial Success 5. High levels of drive and determination 1. Internal (success): efficient management,  Social Entrepreneur: seeks to maximize social good quality product, quality goods & value/capital from non-profit pursuits to solve social services, good reputation, low cost problems production, effective marketing, proper 1. Motivated by social gain financing, dedicated manpower, proper 2. Highly innovative and creative technology, and proper time management 3. Lower levels of self interest 2. External (success): quality manpower, high 4. Higher levels of social conscience demand in the market, government policy, 5. Higher levels of risk taking low competition, and new market  8 steps to become resilient 3. Internal (failure): ineffective management, 1. Accept change old technology, poor financing, ineffective 2. Become a continuous learner marketing strategies, low quality of raw 3. Take charge materials, low human relations, and poor 4. Find your sense of purpose leadership 5. Pay attention to self-identity 4. External (failure): shortage of raw material, 6. Cultivate relationship shortage of power, shortage of manpower, 7. Reflect poor finance, change in technology, high 8. Skill shift competition, negative government policies,  Categories of Entrepreneurs and increase in supply and availability of 1. Lifestyle Entrepreneur: develop business in better substitute order to alter his/her own lifestyle, nit sole purpose of making money 2. Social Entrepreneur: acts as agents of change society, build companies that solve problems, hire both people in need, both 3. Serial Entrepreneur: continually generates new ideas and start business, one after another