Entrepreneurship Core Concepts PDF

ENTREP: CORE CONCEPTS OF ENTREPRENEURSHIP KEY TERMS | SALIENT FEATURES | TRAITS, SKILLS & CORE COMPETENCIES | BUSINESS PLAN & ITS PARTS SHS | STEM | FIRST SEMESTER | 2023 Key Terms Salient Features of Entrepreneurship 1. Entrepreneur ▪...

ENTREP: CORE CONCEPTS OF ENTREPRENEURSHIP KEY TERMS | SALIENT FEATURES | TRAITS, SKILLS & CORE COMPETENCIES | BUSINESS PLAN & ITS PARTS SHS | STEM | FIRST SEMESTER | 2023 Key Terms Salient Features of Entrepreneurship 1. Entrepreneur ▪ Originated from the A. An Art of ▪ Not governed by fixed and French word Correct absolute rules “Entreprendre”, Practices ▪ A venture that continuously meaning “to grows, develop, improves, undertake/ innovative and expands mindset” ▪ There is constant change ▪ A person who which denotes movement organizes, operates, and innovation and assumes the risk ▪ As economic activity of business (The changes, the political, American Heritage social, and entrepreneurial Desk Dictionary) activities eventually change; ▪ A person who strongly making it dynamic advocates and B. A Wealth - ▪ Resources are fully correctly practices the Creating maximized to improve the concepts and Venture entrepreneur’s life in terms principles of of economic, social, moral, entrepreneurship in and psychological aspects operating and ▪ Entrepreneurship is managing the self- operating within the concept owned business of wealth creation rather venture than profit generation ▪ Venture = enterprise C. Provides ▪ The entrepreneur must Valuable convince the consumers 2. Entrepreneurship ▪ Art of observing Goods and that they gain more benefits correct practices in Services than what they pay for the managing and goods and/or services operating a self-owned D. Entails ▪ The owner must also be the wealth-creating Opening manager of daily operations business enterprise by and of the entrepreneurial providing goods and Managing venture services that are Self-Owned ▪ It starts with one then it Enterprise valuable to the expands customers ▪ Includes the business practices of franchising and 3. Small Business ▪ Refers to a business buyout or enterprise that E. A Risk- ▪ Risks are inherent and correctly adopts and Taking inevitable practices the principles Venture ▪ Business risk – risk in of entrepreneurship entrepreneurship ▪ Owned by one person with a workforce Difference of Entrepreneurship limited to not more Entrepreneurship Ordinary Small than 20 persons Business Motive in Means to a happy Source of 4. Ordinary Small ▪ Pertains to a business Opening a and fruitful life Livelihood Business enterprise managed Business (wealth-creating (Profit- and operated by an venture) generating owner who does not venture) Trait: Committed advocate and practice Perception Considers risk as Believes that the principles of of Business inherent risks are entrepreneurship Risk Traits: deterrent to the - Opportunity- operation of the seeker business - Risk-taker - Persuasive network ENTREP: CORE CONCEPTS OF ENTREPRENEURSHIP KEY TERMS | SALIENT FEATURES | TRAITS, SKILLS & CORE COMPETENCIES | BUSINESS PLAN & ITS PARTS SHS | STEM | FIRST SEMESTER | 2023 Reactions to Sees changes in Passive and ▪ Entrepreneurs who belong in this cluster are: Changes in the environment static to 1. An opportunity- 4. A risk-taker the as source for new changes seeker 5. Efficient and Environment ideas for 2. Committed quality-oriented entrepreneurial 3. Persistent opportunities Traits: Planning Cluster -Persistent ▪ A set of characteristics that supports the -Efficient and character traits in the achievement cluster quality-oriented ▪ Planning is inherent in the entrepreneur, being View on Sees competition Views both the owner and manage Competition as a sign of competition as ▪ Entrepreneurs who belong in this cluster are: healthy economic an unhealthy 6. Goal-setter 8. Information-seeker environment element in the 7. Systematic in planning and monitoring business Trait: environment Self-confidence and tries to Power Cluster avoid it ▪ Includes a set of character traits that reflect the Vision for Outlines short- Relies on degree of the interpersonal relations maintained Development term, medium- chance or luck by successful entrepreneurs in the community term and long- in maintaining ▪ Establishes the relationships with the suppliers of term plans of the status quo raw materials, financial institutions, customers, action of his/her competitors, the government, employees, and all business other stakeholders Trait: Systematic in ▪ Entrepreneurs who belong in this cluster are: planning and 9. Persuasive and 10. Self-confident monitoring positive networker Horizon of Thinks globally but Centered on the Business acts locally local Skills and Core Competencies Operation environment A. Cognitive ▪ Refers to the mental Trait: Skills ability of the entrepreneur Goal-setter to learn new things, Sources of Explores ways to Limits funding to generate new ideas, and Business generate funds personal express knowledge in Fund (internal and resources external both oral and written form resources) ▪ The ability to: o Understand written Trait: materials Information- o Learn and apply new seeker information o Solve problems systematically Entrepreneurial Character Traits o Create new ideas ▪ Refers to the mark or attribute that distinguishes o Innovate new products an entrepreneur from the owner of ordinary and procedures or business owner methods ▪ There are 10 traits and grouped into three major B. Problem- ▪ Entrepreneurs must face clusters: Solving solve problems and make (1) Achievement Cluster Skills a decision (2) Planning Cluster ▪ Adopts the scientific (3) Power Cluster approach instead of making an intuitive Achievement Cluster decision ▪ Consists of entrepreneurial character traits that ▪ Scientific approach in are directly related to the entrepreneur’s desire to solving business be an achiever in the field problems: ▪ Successful entrepreneurs constantly set the o Defining the real things to be achieved and repeatedly find ways to problem o Gathering information achieve them ENTREP: CORE CONCEPTS OF ENTREPRENEURSHIP KEY TERMS | SALIENT FEATURES | TRAITS, SKILLS & CORE COMPETENCIES | BUSINESS PLAN & ITS PARTS SHS | STEM | FIRST SEMESTER | 2023 o Formulating alternative solutions Career Opportunities o Evaluating alternative 1. Sales: need to know how to represent a solutions company, manage accounts, and follow-up on o Selecting and implementing the leads optimal solution 2. Business consultant: go to a client site, identify o Evaluating the decision problems and fix them C. Technical ▪ These skills relate to their 3. Researcher: understand business concepts, Skills knowledge and systems, procedures, and practices proficiency in a 4. Teacher specialized field 5. Human Resource Manager: recruit and train ▪ Include proficiency and people ability in: 6. Business Reporter: take the lead on covering a o Information technology local business beat o Feasibility and business plan preparation Business Plan o Technical writing skills ▪ Prepared using a scientific approach in o Marketing determining possible business situations o Management and Finance considering the different perspectives of people who are interested in the business D. Interpersonal ▪ About the relationship ▪ Entrepreneur must still consider the views of the Skills and interaction of the customers, creditors, and even the employees entrepreneur with the and staff workers, suppliers, ▪ Entrepreneur must gather sufficient and relevant creditors, prospective information to support any reception or conclusion customers, and other ▪ The road map of the new business and the members of the business entrepreneur community ▪ Defined as a detailed and integrated written ▪ Include skills in: o Verbal communication document that describes the various activities o Non-verbal involved in opening and operating a new communication entrepreneurial venture o Listening o Leading Feasibility Study o Negotiating ▪ Written document that must be prepared and is of equal importance of as the business plan Entrepreneurial Core Competencies ▪ Serves as the forerunner of the business plan ▪ Indicates that successful entrepreneurs possess ▪ Two major tests for new business ideas: a full understanding of the concepts and 1. Test of Possibility principles of entrepreneurship, strong character 2. Test of Feasibility traits, and sufficient and competent ▪ Objective is to determine whether the proposed entrepreneurial skills business is feasible or not in all areas ▪ Provides competitive advantage in the venture and becomes the core competency Major Parts of the Business Plan ▪ Defined as the combination of the following: 1. Introduction - the general perspective of 1. Entrepreneurial concepts and principles the business 2. Entrepreneurial character traits 2. Executive - points out the overall 3. Entrepreneurial skills summary highlights 3. Environmenta - strategic tool that Relevance l analysis determines the external 1. Creates employment and internal factors 2. Develop new market affecting the performance 3. Introduces innovation of the business 4. Stimulates investment interest in the new 4. Business - presents the nature and business venture description form of the business to be 5. Improves quality of life undertaken 6. Brings social benefits the people 5. Organizationa - provides a detailed 7. Utilizes and mobilizes indigenous resources l plan description the business 8. Provides more alternatives for consumers ENTREP: CORE CONCEPTS OF ENTREPRENEURSHIP KEY TERMS | SALIENT FEATURES | TRAITS, SKILLS & CORE COMPETENCIES | BUSINESS PLAN & ITS PARTS SHS | STEM | FIRST SEMESTER | 2023 in terms of the form of c) Name of the ▪ Must be properly stated: business organization, Owner o Sole proprietorship = liability of the owner/s, one owner organizational structure, o Partnership = names of the partners and extent of roles and responsibilities, their liabilities and salary requirements o Corporate Entity = 6. Production - presents or describes the names, nationalities, and plan activities related to the addresses of production of goods incorporators 7. Operation - outlines the various ▪ Incorporators – persons plan activities from the who originally formed the acquisition of raw corporation materials to the delivery d) Description ▪ Must include information of the product to target of the about the type of product consumers Business or service that the 8. Marketing - details how the proposed business intends to plan business will sell its produce or provide products to target ▪ May include a brief consumers information about the 9. Financial plan - accumulates and ultimate mission, vision, describes all the data and objectives expressed in monetary ▪ Other products or units from the sections of services that the business the business plan plans to produce must be + Appendix mentioned + Statement of Confidentiality is added for ▪ Must describe the ff: 1. Nature and form prospective owners or investors 2. Innovative features 3. Reason for selection 1. Introduction 4. Current situation ▪ Presents the general perspectives of the business 5. Size of the proposed ▪ May consist of one to two pages business ▪ Contains the following sections: 6. Administrative operations a) Proposed ▪ Propose at least 3 and be 7. Future parties involved Name of the approved the DTI e) Location of ▪ Place the proposed Business ▪ Proposed business name the business in a strategic must: Business location that will assure 1. Reflect the business competitive advantage identity and image ▪ Factors to consider for the 2. Promote the location: philosophical value and 1. Proximity to target culture that the business consumers values the most 2. Distance from the source of 3. Profess the brand raw materials, labor, and identity of the product utilities 4. Attract or influence the 3. Availability and cost of target consumers transportation b) Address of ▪ All business 4. Peace and order situation the correspondences are 5. Presence of direct competitors Business mailed to the business 6. Geographic and climatic address conditions ▪ Email address for f) Funding ▪ Estimated total initial cost facilitating electronic Requirement of the business venture communication between and Source must be clearly indicated the business and other ▪ Include the project parties breakdown, or allocation ▪ Raw materials and other of the total cost manufacturing materials are also shipped by seller ENTREP: CORE CONCEPTS OF ENTREPRENEURSHIP KEY TERMS | SALIENT FEATURES | TRAITS, SKILLS & CORE COMPETENCIES | BUSINESS PLAN & ITS PARTS SHS | STEM | FIRST SEMESTER | 2023 ▪ Presents source or ▪ Tells the size of the sources of funds market and the target ▪ Estimated period to settle market share of the the funding source business and the product provided by creditors ▪ Must be able to convince must be mentioned the reader that the proposed business has a 2. Executive Summary competitive advantage in ▪ Commonly the last section to be written after all the market other major parts have been completed d) Wealth ▪ Describes the ▪ The next major part of the business plan after Improvement methodologies or introduction Approaches approaches to be taken ▪ Points out the overall highlights of the business in order to: plan as well as a bird’s-eye-view of its sections 1. Maintain a competitive ▪ Must not provide any summary of the different advantage major sections 2. Position the business in the market ▪ Must be written in simple language that can be 3. Improve market share understood easily and attract the reader’s 4. Maximize the utilization attention and influence of resources ▪ Must include the following sections: ▪ Includes a brief a) Vision, ▪ Depicts the fundamental discussion of the Mission, characteristics, nature, marketing policies and Goals, and philosophical values, financial operation of the Objectives identity, and image business, and the (VMGO) ▪ Must reviewed and profitability level of the revisited at least every industry and the business three years e) Parties ▪ Description of the parties Supporting that strongly support the o Vision the Business business - What the org wants to ▪ Parties that have a direct become; how the future relationship with the will look business: o Mission 1. Consumers - What the org is all about; 2. Creditors what the org does for 3. Suppliers whom (benefits) 4. Employee and staff o Goals - Long-term purpose that a 3. Business Description person strives to achieve ▪ Present the nature and form of the business to be o Objectives undertaken - Strategies to attain ▪ Covers two-three pages identified goals / ▪ May be merchandising, service, manufacturing, or implementation of steps hybrid - SMART ▪ Either sole proprietorship, partnership, and b) Business ▪ Defined the perspective corporations Model of the business in terms ▪ Important areas to cover: Adopted of structure, production, 1. Nature and form of the business operation, and financial 2. Present status of the business activities 3. Product or service that it plans to ▪ Will lead to the produce or serve achievement of the 4. Various plant and office equipment VMGO 5. Size of the proposed business c) Business ▪ Will help determine how 6. Future parties with whom contracts may and Product the business define its be necessary Position course and the process 7. Personnel requirement of accumulating wealth 8. Administrative operation