Entrepreneurship Reviewer PDF

Entrepreneurship Reviewer Chapter 1: Understanding Entrepreneurship Business that doesn’t have permit Lesson 1: Defining Key Terms Business that offers non valuable Entrepreneur...

Entrepreneurship Reviewer Chapter 1: Understanding Entrepreneurship Business that doesn’t have permit Lesson 1: Defining Key Terms Business that offers non valuable Entrepreneur products - Person who owned and manage the What happens to business if the economy is business and correctly adopts the practices distressed? and principles of entrepreneurship - Big Business reduces the production to - Advocate, valuable services avoid lose - Derives from the word entreprendre, which - Small Businesses produces more products means "to undertake". A person who Lesson 2: Salient Features of Entrepreneurship organizes, operates, and assumes the risk of Entrepreneurship is an Art of Correct Practices business ventures, who strongly advocates - Entrepreneurship is an art, not a science. As and correctly practices the concepts and an art, entrepreneurship is dynamic and is principles of entrepreneurship in operating closely related to creativity. They keep on and managing a business. searching for something new, finding ways Entrepreneurship to transform ideas into entrepreneurial - Practice or process of business opportunities - the process of managing the business Entrepreneurship is a Wealth-Creating - Comes from the word entrepreneur which Venture refers to a particular field of practice or - Entrepreneurship is operating within process. It is the art of observing practices, the concept of wealth creation managing, and operating a self-owned rather than profit generation. Wealth wealth-creating business enterprise by is defined as the abundance of providing goods and services. money, property, or possession. Concept of Entrepreneurship Abundance, is the very essence of Entrepreneur - wealth in entrepreneurial endeavors Entrepreneurship - Entrepreneurship is providing value to Enterprise - The business that is being customers managed by the entrepreneur (mismong - Entrepreneurship creates economic business) wealth by providing goods and Intrapreneur services to consumers. Anything of - A person appointed by the owner to no value to anybody is definitely a manage the business (manager) waste. "Not to sell waste to Business Minded Person consumers but only valuable goods, - owner of the business but not involve in the and services" operation of the business Entrepreneurship entails opening and Small Business managing self-owned enterprise - Correctly adopts and practices the - A business is considered self-owned principles of entrepreneurship when the person managing its daily - Owned by one person with a limited activities is also its owner. workforce of not more than 20 persons Businesses that are being managed - It includes SmallMediumEnterprises (SMEs) by others for the benefit of the - Strongly promoted by government and owners do not fall within the sphere nongovernment organizations of entrepreneurship. Such businesses Ordinary Small Business are operating under the concept of - Owner and manager of the business but intrapreneurship. does NOT adopt the correct practices and Entrepreneurship is a risk taking venture principles of entrepreneurship - "Risk is inherent in an Vendors entrepreneurial venture". Risk comes 1  Entrepreneurship Reviewer simultaneously with the venture. Risk entrepreneur must be a seeker of cannot be detached from any business opportunities. entrepreneurial venture. The risk in Committed - displays full entrepreneurship is called "Business commitment to the work Risk" Persistent - the foundation of Misconceptions of Entrepreneurship commitment Applies only to manufacturing businesses. Risk Taker - (aggressive risk taker - Applies only to small businesses. hindi takot mag risk) (Conservative Applies mostly to persons with good Risk Taker) (Moderate risk taker) educational background business courses. Efficient and Quality Oriented - a Applies only to a good economy successful entrepreneur highly Entrepreneurship is simply opening a small values efficiency and the concept of business. quality in all business undertakings Importance to the Filipino People Planning Cluster - It provides guidelines in their - Planning is inherent in the entrepreneur, wealth-creating ventures. being both the owner and manager of the - It helps improve their financial and social business. It often begins with a specific plan life. and ends with review of the progress. - It helps broaden their creativity. Goal setter - Goals should be guided - It helps make their lives happy, fruitful, and by smart principle (Specific, successful. Measurable, Achievable, Realistic Importance to the Local Community and Time Bound) - It provides employment in the community. - It creates new demand in the market. - It makes substantial contributions to the raising and collection of taxes. - It creates new business opportunities. - It promotes a peaceful and loving community. - It increases constructive competition. Chapter 2: Entrepreneurial Character Traits, Skills, and Competencies Systematic Planning and Monitoring Character Traits Systematic - the mark or attribute that distinguishes an - rational and logical approach entrepreneur from the owner of an ordinary in performing the activities. small business. Based on SERDF of DTI. - Step-by-step procedures that 3 Character Traits are scientifically designed to - Achievement Cluster follow the preparation of - Planning Cluster plans and monitoring of - Power Cluster activities Achievement Cluster Planning - Consists of entrepreneurial character traits - Setting of goals and that are directly related to the objectives entrepreneur’s desire to be an achiever in Monitoring the field to entrepreneurship - Evaluation of the activities Opportunity Seeker - a person who and adopted courses of dreams of becoming a successful action 2  Entrepreneurship Reviewer Power Cluster 4. Marketing. - It establishes the relationships of the 5. Management finance. entrepreneurs with the supplies of raw Interpersonal Skills materials, financial institutions, customers, - relationship/skills of the entrepreneurs competitors, the government, employees, 1. Verbal communication and all other stakeholders. 2. Non-verbal communication Persuasive and Positive Networker - 3. Listening successful entrepreneurs are persuasive and 4. Leading can easily influence and win over to their 5. Negotiating side the other stakeholders in business Entrepreneurial Core Competencies Self Confident - entrepreneurial self - Entrepreneurial Concept & Principles confidence is actually a manifestation of the - Entrepreneurial Character Traits entrepreneur’s strong trust or belief in - Entrepreneurial Skills himself or herself Chapter 3: The Environment of the Entrepreneurial Skills and Core Competencies in Entrepreneurship Venture Entrepreneurial Skills MACRO ENVIRONMENT - Skills are considered as the personal Physical Environment abilities to do things well. They come from - First layer of the environment is the physical the totality of the knowledge, practice or natural environment. experience, and aptitude of a person. - It is composed of the natural elements that Knowledge are inherent in the earth Practice and Experience Climate - climatic conditions Aptitude Physical Resources - availability of Cognitive Skills raw materials is another factor that - Mental ability of the entrepreneur to learn can influence the success or failure new ideas, and express knowledge in both of the business venture. oral and written forms. Wild life - the wild plants and 1. Understand written materials animals in Philippines forests are 2. Learn and apply new information continuously abused. 3. Solve problems systematically Environmental Scanning 4. Create new ideas Changes in the physical environment have 5. Innovate new products and an impact on the societal environment in procedures. terms of resource availability and costs, and Problem Solving Skills later, on the industry environment in terms 1. Gathering information about the problem. of the growth or decline of particular 2. Defining the real problem industries 3. Formulating alternative solutions Societal Environment 4. Evaluating alternative solutions. - It is generally composed of social, political, 5. Selecting and implementing solutions. cultural, economic, legal, and technological 6. Evaluating the decision. forces. Economic Forces Technical Skills - Caused by changes or movements in - Entrepreneurs must be fully equipped with the Philippine Economy that have the right technical skills direct and indirect effects in the 1. Information technology. entrepreneurial venture. 2. Feasibility study and business plan 1. Interest Rates preparation. 2. Inflation Rates 3. Technical writing skills. 3  Entrepreneurship Reviewer 3. Fiscal Policies - it refers to the use of political systems, and other related government spending and tax political groups that substantially policies to influence economic influence political stability of a conditions, especially country macroeconomic conditions. These 1. Trade regulations include aggregate, inflation, and 2. Taxation economic growth. 3. Government Stability 4. Monetary Policies - tools used by a 4. Unemployment nation’s central bank to control the 5. Worker’s Benefits overall money supply and promote 6. Election Practices economic growth and employ Legal Forces strategies such as revising interest - The elements and bodies that are rates and changing bank reserve directly involved in the legislation requirements. and interpretation of laws and 5. Income ordinances directly affecting the 6. Exchange Rate business. 7. Employment 1. Product control, pricing, and labeling 8. Consumer Confidence 2. Health and safety of the workers 3. Administrations of election process 4. Advertising and promotion 5. Exercise of profession 6. Education administration and fees Cultural Forces Technological Forces - Refers to the integrated - Refers to the trends and characteristics of a group of people developments in computer and or ethnic group in a particular information technology that have society. impact on business 1. Religion 1. Internet 2. Language 2. Social Media 3. Beliefs 3. E-commerce 4. Customs 4. Technological Advancement 5. Education 5. Technological Infrastructure Social Forces Environmental Scanning - Elements in society resulting from - Gathering critical evaluation, and utilization human interactions that can of information on events and activities and influence the thoughts, behavior, their relationships with physical, societal, attitude, actions, and even beliefs and industry environments. and customs of the people. The Goal we want to do: 1. Values 1. It clearly portrays the trends, activities, and 2. Traditions developments happening in every 3. Literacy level environmental layer including the 4. Consumer Psychology interrelated relationships between the 5. Time Orientation various forces in the environment. 6. Lifestyle Patterns 2. It identifies the expected threats and 7. Professional Career Roles opportunities existing in the environment. Political Forces 3. It points out the possible factors that will - The various elements usually determine the success of the comprising of the political parties, entrepreneurial venture. 4  Entrepreneurship Reviewer 4. It helps define the future path of the - Indirect Competition – business. alternative product that 5. It assists in the formulation of the most might consider of the appropriate entrepreneurial strategies. customer ( Ex: Soft drinks vs Societal Environment Scanning Approach Juice0 1. PESTEL Analysis Employees - A tabular framework of the trends - The workers of the business who are and developments in the different highly responsible for the production forces in the external environment. of goods or delivery of services to - Most widely accepted and commonly the customers. used environmental scanning tool - Educational attainment today. - Skills P - political - Experience E - economic Creditors S - social - Refers to banks, financial T - technology institutions, and financial L - legal intermediaries engaged in the 2. Environmental Forces Matrix lending of money to the borrower - it measures the frequency of usually for a fee or charge in the occurrence and level of effect to form of interest. various environmental forces (Low, Industry Analysis Scanning Tools Moderate or High) Forces of Competition Model Industry Environment - “Five forces of competition” - The external environmental layer where the - Popularized by Michale Porter trends and changes are easily and - A prominent figure in competitive strategy immediately felt by the business. formulation. Government 1. Potential New Entrants - The system or institution that 2. Buyers handles the affairs of a particular 3. Substitute products country. 4. Supplier Suppliers 5. Rivalry among existing firms - Refers to the individual person or Competitive Forces Matrix companies that provide the required - it measures the intensity of the threat materials, parts, or services to the brought by the forces of Competition Model business. ( Low, Moderate or High) Customers MICRO ENVIRONMENT - The buyers of goods or services Internal Environment produced by the business - Refers to the environment within the Competitors business - The forces existing in the industry Business Resources environment that products, sell, or - Assets or properties owned or render products or services which controlled by the business resources are similar to those of the business. can either be tangible or intangible. - Direct Competition – Both of 1. Tangible – human resource, building, the business are offering land and etc same kind of product (Ex: 2. Intangible – trademark, patents, Robinson vs SM, Coca Cola copyright or good reputation of the Vs Pepsi business 5  Entrepreneurship Reviewer Business Culture Weaknesses - Known as the organizational or - Poor attributes or deficiencies that corporate culture give the disadvantages to the - It is a collection of values, beliefs, business principles, and expectations learned 1. Autocratic leadership form and shared by employees, founders, 2. Demoralized employees stakeholders, and members of the 3. Poor and dilapidated equipment and management. machinery 1. Culture of the business or 4. Unskilled workers organization 5. Poor technological structures 2. Individual culture of the employees Opportunities ❖ Cultural Acceptance - the - Business situations in the form of degree by which employees products or services that must be accept the culture of the unit exploited because of their potential or business. in terms of profit and growth ❖ Cultural Integration - the 1. Innovative products introduced to degree by which all units the market across the business accept 2. Increasing the market share and share a common culture. because of market advantage. Business structure 3. Providing services to new market - Formal organizational arrangement 4. New programs of the government of the business in terms of hierarchy Threats of positions, flow of communication, - Possible external events in the and relationship of functional areas, environment that may provide harm and production and marketing to the business. processes. 1. The possible entry of competitors - Top to bottom (Implementation of 2. Stiff government regulations Procedures) 3. Higher interest rates - Bottom to Top (Solving of Concern or 4. Entry of cheaper products Problems) 5. Unstable peace and order situation Internal Environment Scanning Approach 6. Shift of customer’s taste and SWOT Analysis preference - Sometimes called TOWS analysis pioneered Note: by two Harvard Business School professors Strength and Weakness of business Policy, George Albert Smith Jr. 1. Look at the internal resources, culture and and Roland Christensen. structure of the business. - S - Strength, W - Weaknesses, O - 2. Propose an alternative solution for the Opportunities, T - Threats weaknesses Strength 3. Both strengths and weaknesses can be - Strong attributes or capabilities of controlled by the business owner the business that provide great Opportunities and Threats advantage in exploiting the business 1. Look outside the internal environment. opportunity. These things can be beneficial or can cause 1. Qualified working force risk for your businesses. 2. Complete and new physical facilities 2. Both opportunities and threats cannot be 3. Democratic leadership style controlled by the owner. 4. Motivated workers 3. Threats cannot be avoided but the 5. Valuable intangible assets entrepreneur must think of a plan to reduce 6  Entrepreneurship Reviewer it Turn the weaknesses of competitor into - Rental good services – services that business opportunities are experience base on specific Nature and Type of Entrepreneurial Venture period (ex: Car Rental, staycation, Sole Proprietorship lease, house rental and etc) - 1 owner only Manufacturing - Easy to manage - Producer of good or products - Limited growth - It is engaged in buying raw materials and - Unlimited liability supplies to be processed into finished Characteristics of Sole Proprietorship products. 1. It is easy to form and manage - focused on manufacturing companies or 2. It is simple business operations factories that produce tangible goods. 3. It has limited pool of resources Agricultural 4. Its growth is limited - Production of agricultural goods and 5. The owner has unlimited liability animals Partnership - focused on consumable plant base or - Owned by 2 or more persons animal based products - 2-4 owner Hybrid Business - The owners are usually called “partners” - enterprise that offers both goods and - Easy to dissolve if encountered services (ex: restaurant, Lazada, Shopee misunderstanding or if one of the members and etc) face death Special Corporation - Withdrawal of the investment of the partner - Special types of business may include Corporation cooperatives, joint ventures, and non-profit - Atleast 5-15 members organizations - Stock corporation – the stockholders or Production System shareholders are allowed to issue or sale shares - Certificate of Stock – evidence of ownership to the corporation - Non-Stock Corporation – the members are not allowed to issue or sale share Nature of the Entrepreneurial Venture Merchandising 4 M’s of Production - focused on tangible goods that offers by Manpower resellers - Human work force involved in the Services manufacture of products - Provide services to customers 1. Educational qualifications and experience. - focused on intangible goods offers by 2. Status of employment profession service provider or 3. Number of workers nonprofessional service provider 4. Skills and expertise - Non good service – personal service 5. Time (ex: spa, massage, tutor, legal 6. Background checking and requirements services, checkup and etc) 7. Salary or wages and other mandatory - Owned good services – services that benefits are applicable to the properties or 8. Potential workers products (ex: repair services, Method laundry, carwash, cleaning services - Process or technique of converting raw and etc) materials to finished products 7  Entrepreneurship Reviewer - Process focused – production process is 4. What happens to businesses if the economy continuous and dependent on the is distressed machineries or equipment - Big businesses produce more goods - Product focused – production process can than usual and sells it high price due be continued if the specific step is to inflation successfully meet the desired quality 1. Product to produce 2. Mode of production 3. Manufacturing equipment to use 4. Required skills to do the work Machine 5. - Manufacturing equipment 6. Due to high ratings in performance 1. ​Types of products to be produced evaluation, Mr. Padilla is now promoted as 2. Production system to be adopted the manager of the restaurant bar in 3. Cost of the equipment Taguig, Mr. Padilla is considered as? 4. Capacity of the equipment - Intrapreneur 5. Availability of parts 7. Ms. Illustre owns a beauty salon. She only 6. Efficiency of the equipment visit it on Sunday to check if they generate 7. Skills required a high profit. Ms. Ilustre considered as? Materials - Business minded person - Raw materials needed in the production of a 8. Who among the following correctly adopts product. the principles of Entrepreneurship? 1. Cost 2. Quality 3. Availability 4. Credibility of suppliers 5. Waste that it may produce. QUIZZES 9. Why is entrepreneurship important to the QUIZ#1 (8/10, wag mag reklamo ikaw nalang nagbabasa ng reviewer k 🤪 ) (ikaw nalang local community? maghanap kung ano mali ko 😆 ) - It provided employment in the community 1. Why Entrepreneurship is not only applicable to manufacturing businesses? - Manufacturing business cannot cater the demands of market 2. Jojet always helps his mother to run their meat shop. He gains a lot of loyal customers due to his persuasive sales talk and 10. discount. Based on the statement, what is QUIZ#2 (8/10) the enterprise? It is an entrepreneur who urge his self to work - Meat shop wholeheartedly to achieve task and master in, 3. Why are small businesses strongly promoted regardless of extra effort. by government and non-government a. Information seeker organizations instead of ordinary small b. Efficient and quality oriented businesses? c. Committed - It correctly adopts and practices the d. Competitive principles of entrepreneurship 8  Entrepreneurship Reviewer An entrepreneur who is ________ can cope up to Mr. Guanzon innovate a new version of laptop. He failures or challenges and does not have the expand the capacity of the storage since most of courage to quit. their customers are suggesting it. a. Persistent What type of skills is describe above? b. Persuasive a. Risk taker c. Goal oriented b. Persuasive d. Risk taker A person who believes in his own abilities will Ms. Torres registered her self to “Marketing persevere in face of set backs. What character Strategies” webinar. She wants to use this skill for traits is describe above? her business venture a. Persuasive a. Committed b. Self - confidence b. Goal setter c. Goal setter c. Persistent d. Committed d. Opportunity seeker Which skills refers to applying of imaginative ideas Due to the pandemic Aling Myrna change her to the formulation of new systems and products? strategy in selling clothes. From Boutique store, by a. Technical Skills using her skills she create a website to reach the b. Interpersonal Skills customers online. c. Intrapersonal Skills a. Technical skills d. Cognitive Skills b. Intrapersonal skills QUIZ #3 (10/15) Jenny was terminated to her job because all of the During holiday season part of the Reyes Family pastries that she baked cause a food poison to the tradition is to donate clothes and goods to Angel's customers. Which of the following traits must she Heaven Foundation. What kind of venture is being have? described above? a. Efficient and Quality-oriented a. Hybrid Business b. Systematic planning & monitoring b. Special Corporation c. Persistent c. Non Good Service d. Self Confidence d. Merchandise Anna wants to resign on their company. In 3 years This kind of venture focuses on plant and animal of service all of the concerns addressed by the base products. employees are not settled due to the poor a. Wildlife management. What kind of skills must posses by b. Agriculture the management? c. Merchandise a. Cognitive Skills d. Hybrid Business b. interpersonal Skills Ms. Gonzaga is happy on her new business. c. Problem-solving Skills Everything on her restaurant is running smoothly d. Positive Networker Skills since the employees are politely serving the dishes Ms. Angeles is looking for a branch manager who is to the customers. goal oriented and prioritize work to ensure that the What nature of entrepreneurial venture is being company procedures are followed effectively. described above? In what character traits cluster does her new a. Hybrid Business manager should be belong? b. Special Corporation a. Power Cluster c. Merchandise b. Competitive Cluster d. Service c. Achievement Cluster Goergeth wants to analyze the level of effect of d. Planning Cluster legal forces on her business since the new mayor of the municipality is implementing new guidelines for building permits. What scanning tool must she use? 9  Entrepreneurship Reviewer a. PESTEL Analysis Ms. Ivy Aguas received the sack of seeds that they b. SWOT Analysis will use on their farm since the harvest season has c. Environmental Forces Matrix already ended. Zarah and Leighnie are planning to analyze the What type of entrepreneurial venture does she forces that affects their Z. & L have? Cosmetic Products. Which of the following tool must a. Manufacturing they use? b. Hybrid Business a. PESTEL c. Merchandise b. Competition Model d. Agricultural c. ENVIRONMENTAL FORCES d. SWOT Flordeliza only opens her printing shop from 4:00 pm to 8:00 pm since that is the peak period of customers. She also hired two employees to assure that all of the customer's need will be catered. What forces of societal environment is emphasize above? a. Technological b. Economic c. Social What will happen to the consumer spending and economic growth if the interest rates is high? a. The consumers confidence will be lowered and the economic growth will move slowly. b. The consumers will spend more and will resell it to make the economic growth past. c. The consumers will spend the same high rates is an indication of economic growth. d. The consumers will not spend anymore instead they will invest the money to boost the money circulation. Due to economic instability some of the stockholders of Max Well Company are planning to pull out their shares to avoid the possible losses. What form of entrepreneurial venture is being described above? a. Corporation b. Partnership c. Sole Proprietorship Which of the following entrepreneurial ventures can be easily dissolved if one of the owners faces death? a. Partnership b. Sole Proprietorship c. Special Corporation d. Corporation 10