Entrepreneurship Review PDF

Introduction to ENTREPRENEURSHIP Direction has the following elements: ENTREPRENEURSHIP Basically, aimed to gear someone towards SELF- SUPERVISION - the act of watching & directing work & EMPLOYMENT....

Introduction to ENTREPRENEURSHIP Direction has the following elements: ENTREPRENEURSHIP Basically, aimed to gear someone towards SELF- SUPERVISION - the act of watching & directing work & EMPLOYMENT. workers. An entrepreneur must learn the importance of MOTIVATION - means inspiring, stimulating or entrepreneurship so that he/she can put up and encouraging subordinates with deal to work. operate his/her own business, whatever the magnitude. LEADERSHIP - guides and influences the work of subordinates in desired direction. If an individual merely wants to go into business to be COMMUNICATION - is the process of passing his own boss, he may be sorely disappointed. information, experience, opinion etc. from one person to another. It is a bridge of understanding. A practicing entrepreneur has probably more bosses. STAFFING- to function of manning the organization - Various government regulatory bodies structure and keeping it manned. - Suppliers - Financial creditors and stakeholders The main purpose: to put the right man on the - Demands and cycles of the market right job - Demands on the entrepreneur’s personal life Encompasses: Entrepreneur – origin: French word ENTREPRENDRE, 1. Manpower Planning meaning to undertake 2. Recruitment, Selection & Placement 3. Training and Development ENTREPRENEURSHIP is the act of creating a business 4. Salary and Compensation while building and scaling it to generate profit. 5. Performance Appraisal 6. Promotions and Transfer Can also pertain to management functions. PLANNING – determining the company goals and CONTROLLING- measurement of accomplishment identifying the resources and strategies needed to against the standards and correction of deviation if any achieve those goals. to ensure achievement of organizational goals. Determination of objectives Purpose: to ensure that everything follows the standards set forth. ORGANIZING-is the process of collating the physical, financial and human resources and developing a THEO HAIMANN, a German Management science productive relationship among them. educator, author, “Controlling is the process of checking whether or not proper progress” Creating structure According to KOONTZ & O’DONELL “Controlling is the HENRI FAYOL, “To organize a business is to provide it measurement & correction of performance activities of with everything useful or it's functioning i.e., raw subordinates in order to make sure that the enterprise material, tools, capital and personnel’s” objectives and plans desired to obtain them as being DIRECTING- deals directly with influencing, guiding, accomplished”. supervising, motivating sub-ordinates for the Steps: achievement of organizational goals. 1. Establishment of standard performance -It is considered life-spark 2. Measurement of actual performance 3. Comparison of actual performance with the standards and finding the deviation, if any. 4. Corrective action EVALUATING- to determine something's significance, DIMENSIONS-individual, organization, government, value or worth. education and institutions. (KURATKO, et al.1995) Follow up if the assigned task is well performed The ENTREPRENEUR -facts in business must also be evaluated using a fixed ENTREPRENEUR set of criteria that will lead to an answer Person behind entrepreneurship. THE CONCEPT OF ENTREPRENEURSHIP Must possess certain characteristics and different traits which make him unique. Entrepreneurship started in France after the French The person who manages the business directly. Revolution. WHO is the ENTREPRENEUR? Entrepreneurship was coined by Jean Baptiste Say, a 1. Willing to take and accept risks. renowned French economist. 2. Own the ventures. 3. Considered managers. It started at the beginning of CAPITALISM and the end 4. Able to establish new ventures & develop exciting of FEUDALISM. ones. 5. Able to identify opportunities in the market. He argued that the concept of entrepreneurship, though 6. Apply his/ her expertise. closely tied with the theory of economics and society, is 7. Capable of processing market information. independent of classical economics and is unable to co- 8. Bring innovation. exist with it. 9. Can provide market efficiency. 10. Maximize investment returns. CLASSICAL CAPITALISM 11. Provides leadership. - propagated by ADAM SMITH - relates the optimization of what already exists. CHARACTERISTICS of an ENTREPRENEUR - focuses on acquiring the most out of the existing In good physical health resources. Have superior conceptual abilities Ultimate Goal: establishing equilibrium or balance. Have high self-confidence Have a strong personal drive ENTREPRENEURSHIP, on the other hand, sees change Need to control and direct as normal and healthy. Must have moderate entrepreneurial skills -promotes doing something different rather than Must have a realistic outlook Must have a high degree of emotional stability making the existing better. Have a low need-level status - a manifestation of opposition as it upsets and IMPORTANCE OF ENTREPRENEURSHIP disorganizes the existing market. ENTREPRENEURSHIP is the dynamic process of creating incremental wealth. Key driver of our economy. WEALTH is created by individuals who assume the major risks in terms of equity, time and career commitment of providing value for some product or service. The product or service may not be new or unique, but the entrepreneur must somehow infuse value by securing and allocating the necessary skills and resources. (Rondstat 1984) ENTREPRENEURSHIP- is a process of innovation and new-venture creation through FOUR MAJOR  Allows people to bring creativity into the 9. Management Analyst marketplace. - One can evaluate a business system procedures Business-people pay attention to the social and operations. impact of their products – aim to improve - An analyst’s goal is to identify places needing society and the environment. improvement and suggest ways to make a Entrepreneurial firms are also better suited to cater to business work efficiently. NICHE markets because they do not have to support MINDSET vs. SKILLSET large overheads. MINDSET is a set of beliefs that determines the way NICHE a specialized segment of the market for people behave. a particular kind of product or service. - SELF-CONFIDENCE JOB OPPORTUNITIES - PASSION - RESILIENCE 1. Mid-level Management - ADAPTABILITY - INITATIVE - convert the ideas of the c-level folks into - CREATIVITY execution. - VISIONARY 2. Business Consultant - OPENESS TO ADVICES - RISK-TAKER - Provide advice about a pressing business issue. - ETHICAL RESPONSIBILITY - Give solutions on how to streamline operations. - WILLPOWER - Guides businesses on how to expand into a new market. SKILLSET is a set of skills that are essential in completing 3. Sales a specific activity. - COMMUNICATION - Need to know how to represent a company, - SELLING manage accounts and generate profit. - PROBLEM-SOLVING - PLANNING 4. Research and Development - LEADERSHIP - INTERNAL RELATIONSHIP - One must be adept with business concepts, - CUSTOMER SERVICE procedures and practices. - RISK MANAGEMENT 5. Not for Profit/ Fundraiser - FINANCIAL UNDERSTANDING - ANALYTICAL THINKING - NETWORKING - Being able to raise funds requires understanding - MULTI-TASKING the importance of business and networking - WELCOMES CHANGE relationships. - NEGOTIATING - INNOVATIVE 6. Teacher - Teach students the benefits of math to business, BUSINESS PLAN history of innovation and the literature to A document containing a written summary of persuasive advertising. proposed venture, its optional and financial 7. Recruiter details, manager's skills, and abilities. - Having courses that cover operations Management functions: management, leadership and others, one must have a likely keen sense of what type of person a.) PLANNING is needed to fulfil a certain position. b.) ORGANIZING 8. Business reporter c.) DIRECTING - One can write articles or cover a local business d.) STAFFING beat. e.) CONTROLLING f.) EVALUATION PURPOSE of the Business Plan To help the firm's management CONSIDERATIONS in a Business Plan To attract potential investors Business plan are done differently and unique. To serve as a legal document with which funds Should have systemic method. are raised Systematic Method Steps: ROLE if the Business Plan Step 1: identification of the business opportunity. It communicates to people It permits constant change Step 2: conduct a personal inventory to determine if there is a good fit. it is a call to action IT COMMUNICATES TO PEOPLE – a packaged to bring about the interesting features of business. Investors, STRATEGIC FACTORS to be considered are as follows: customers, and employee (All major players of the business) STRATEGIC FACTORS to be considered are as follows: IT PERMITS CONSTANT CHANGE – guide for the a. The need for a certain size or type of target entrepreneur to constantly re-check his ideas and market segment. concepts. Provide organized data from which he could b. Availability of certain type or range of products. research for new information. c. Dependence on a highly reliable source of IT IS A CALL TO ACTION – good business plan which is supply. done in good presentation. d. Required size, location or layout of physical facilities. What Should the BUSINESS PLAN Contain? e. Availability of essential service, e.g. water, It must show relevance to existing conditions. electricity, telecommunications and It should be like a MAP that will tell you what to transportations. expect and what alternative routes you can take f. An assured line of finance on reasonable terms. to arrive at your intended destination. g. The need for highly skilled and experienced manpower. OFFICIAL OUTLINE OF BUSINESS PLAN For the purpose of uniformity, it should be like this: UNCONTROLLABLE and CONTROLLABLE FACTORS can (Adopted from: AREOLA & SIGGAOAT, 2017) affect the operation of the business. COMPANY DESCRIPTION EXTERNAL (UNCONTROLLABLE FACTORS) Influences the MISSION STATEMENT OF THE BUSINESS business plan (Environmental factors) VISION STATEMENT OF THE BUSINESS Competition COMPANY VALUES Economic, and financial conditions ORGANIZATIONAL STRUCTURE Legal Regulations and Political conditions TARGET MARKET Social and Cultural trends PLACE Technology. PRODUCT/SERVICE COMPETITIVE ANALYSIS PRICE INTERNAL (CONTROLLABLE FACTORS) Gives form and S.W.O.T. ANALYSIS substance to the business plan. PROMOTION AND POSITIONING PROJECT COST Purchasing FINANCIAL PROJECTION Production GANTT CHART Labor  Marketing The Business Name Finance. a.) Eye-catching GUIDELINES FOR THE PREPARATION b.) Short and concise c.) Easy to remember The following are the guidelines in preparation of a d.) Relatable Business Plan: To briefly describe what SORT of business you are in THE INTRODUCTION or intended to enter is the SECOND thing to do. THE INDUSTRY THE BUSINESS NAME Business organization: THE MANAGEMENT - Proprietorship- manage and controlled by an THE MARKETING ENVIRONMENT individual THE PRODUCT OR SERVICE - Partnership- 2 or more persons bind themselves THE PRICE - Company/Corporation- created by a THE PROMOTION organization THE PHYSICAL EVIDENCE The main activities THE FINANCIAL FORECAST - Retailing- directly sells its products and services to an consumer. The Introduction - Service- firms that use their employees to provide services. State the objectives of the plan or proposal. - Manufacturing – firms that create or Should be a brief description of how the plan is manufacture their own products. implemented. (KEY EMPLOYEE). - Wholesaling- sell goods in large quantities to Specify who, how much, and the purpose for other businesses. the funds, and how it would benefit. The LOCATION and the LAYOUT of the facilities must be (FINANCING PROPOSAL) described also. Equity indicates what Rate the investors are mat All businesses, whether small, medium and expect. large enterprise should have license and When they will be Repaid. (BARROWED). properly registered in government agencies prior to operation. For the FINANCING PROPOSAL, the introduction should specify WHO is asking for finance, HOW DTI, SEC and BIR are some government MUCH money is required, the PURPOSE for institutions which businesses should contact to. which the funds will be used and HOW the funds will benefit the business. DTI- DEPARTMENT OF TRAGE AND INDUSTRY If the funds are in the form of EQUITY, indicate SEC- SECURITIES AND EXCHANGE COMMISION what RATE the investors may expect. BIR- BUREAU OF INTERNAL REVENUE If the funds are to be BARROWED, indicate WHEN they will be REPAID. The Industry Indicates the present status and prospects for the industry Trends to discuss