Entrepreneurship-Q1 PDF

WEEK 1: ENTREPRENEURSHIP VS BUSINESS There is no universally accepted definition of entrepreneurship, even among universities and colleges offering entrepreneurship program in the Philippines and abroad. Some of the reasons for this are as follows: ○ Different views an...

WEEK 1: ENTREPRENEURSHIP VS BUSINESS There is no universally accepted definition of entrepreneurship, even among universities and colleges offering entrepreneurship program in the Philippines and abroad. Some of the reasons for this are as follows: ○ Different views and theories have been developed in the field of entrepreneurship. ○ The scholars who provided the definition for entrepreneurship are largely influenced by their own individual personal beliefs. ○ The entrepreneurial models introduced by scholars are predominantly influenced by the prevailing economic situations during specific periods in history. ○ The frameworks and methodologies of researches on entrepreneurship are highly dependent on the theories and the contexts of the research endeavors. ENTREPRENEUR The term "entrepreneur" originates from the French word "entreprendre" which means "to undertake." It connotes a business paradigm which signifies the start of a new business undertaking. The American Heritage Desk Dictionary - defines an entrepreneur as a person who organizes, operates, and assumes the risk of business ventures. It is defined as a person who strongly advocates and correctly practices the concepts and principles of entrepreneurship in operating and managing the self-owned business venture. This venture is also called enterprise. ENTREPRENEURSHIP The term "entrepreneurship" comes from the word entrepreneur. It refers to a particular field of practice or process, as compared to an entrepreneur which is a person practicing entrepreneurship. the art of observing correct practices in managing and operating a self-owned wealth-creating business enterprise by providing goods and services that are valuable to the customers. SMALL BUSINESS Refers to a business or enterprise that correctly adopts and practices the principles of entrepreneurship. Owned by one person with a limited workforce of not more than 20 persons. Includes small and medium enterprises (SMEs) that have been promoted by both government and non-governmental organizations (NGOs) in their desire to improve the lives of the Filipino people through entrepreneurship. ORDINARY SMALL BUSINESS Pertains to a business enterprise managed and operated by an owner who is not an advocate of and does not practice the concepts and principles of entrepreneurship. Examples: food stalls at the side of the street WEEK 2: FEATURES AND THEORIES OF ENTREPRENEURSHIP 1. ENTREPRENEURSHIP AS AN ART OF CORRECT PRACTICES Entrepreneurship is an art and not a science. It is not governed by fixed and absolute rules, whereas science is. Thus, there is constant change which denotes movement and innovation. Entrepreneurship as an art is: ○ Dynamic - by the moment the economic activity changes, the political, social, and entrepreneurial activities will eventually change. ○ Related to the correct practices or ways of carrying out entrepreneurial activities ○ Closely related to creativity - it results in new ideas which are the backbone of entrepreneurship. 2. ENTREPRENEURSHIP IS A WEALTH-CREATING VENTURE This feature sounds simple, but this has been most misconstrued because of the word wealth. In most instances, ordinary small business people equate wealth with the term profit. In the parlance of accounting, profit represents the excess income or revenue from the cost and expenses. According to Random House Webster's Dictionary, wealth is defined as the abundance of money, property, or possession. Wealth is created when the value of the business has increased abundantly and the life of its owner has improved considerably. 3. ENTREPRENEURSHIP PROVIDES VALUABLE GOODS AND SERVICES Entrepreneurship creates economic wealth by providing goods and services to the consumers. A business is considered self-owned when the person managing its daily activities is also its owner. 4. ENTREPRENEURSHIP ENTAILS OPENING AND MANAGING THE SELF-OWNED ENTERPRISE Businesses that are being managed by others for the benefit of the owners do not fall within the sphere of entrepreneurship. Planning is an important principle in management. It refers to the process of setting the goals of the business. 5. ENTREPRENEURSHIP IS A RISK-TAKING VENTURE Once an entrepreneurial venture is born because of new Assignments ideas or opportunities, risk comes simultaneously with the venture. Risk cannot be detached from any entrepreneurial venture THEORIES ON ENTREPRENEURSHIP  ➔ A theory is a generalization that explains a set of facts or phenomena. 1. INNOVATION THEORY - The innovation theory on entrepreneurship was contributed by Joseph Schumpter, an Austrian economist and political scientist. The innovation theory regards economic development as the product of structural change or innovation. This theory considers innovation as the primary factor affecting development. 2. KEYNESIAN THEORY - The Keynesian theory on entrepreneurship was developed by John Maynard Keynes, a British economist. The theory put so much emphasis on the role of the government in entrepreneurial and economic development, most especially when the economy was experiencing depression. 3. ALFRED MARSHALL THEORY - Marshall regarded the entrepreneurs as the prime movers in the organization. The theory generalizes that the organization plays the most significant role among the different factors of production. 4. RISK AND UNCERTAINTY-BEARING THEORY - Frank Hyneman Knight viewed an entrepreneur as an agent of the production process where he/she connects the producers and the consumers. 5. WEBER'S SOCIOLOGICAL THEORY - In this theory, Max Weber stressed that social cultures are the primary driving elements of entrepreneurship. The entrepreneur is expected to perform the role of a good constituent 6. KALDOR'S TECHNOLOGICAL THEORY - Nicholas Kaldor. This theory gives importance to the advancement of technology as an element of production. 7. LEIBENSTEIN'S GAP-FILLING THEORY - In this theory on entrepreneurship, Henry Leibenstein proposed that the primary role of entrepreneurship in any economic activity is to fill the existing gap. 8. KIRZNER'S LEARNING-ALERTNESS THEORY - Israel Kirzner. The entrepreneur must be alert in recognizing entrepreneurial oppörtunities and the ignorance of consumers as well. WEEK 3: ENTREP VS ORDINARY SMALL BUSINESS DIFFERENCE OF ENTREPRENEURSHIP AND ORDINARY BUSINESS WEEK 4: CHARACTER TRAITS COMMON TO SUCCESSFUL ENTREPRENEURS ➔ The term character trait in this lesson refers to the mark or attribute that distinguishes an entrepreneur from the owner of an ordinary small business. ➔ Based on studies conducted by the Small Enterprise Research and Development Foundation (SERDF) of the Department of Trade and Industry (DTI), there are ten entrepreneurial characteristics grouped into three major clusters: ACHIEVEMENT CLUSTER - The achievement cluster consists of entrepreneurial character traits that are directly related to the entrepreneur's desire to be an achiever in the field of entrepreneurship. a. Opportunity-seeker A person who dreams of becoming a successful entrepreneur must possess the ability to identify with great ease the most appropriate entrepreneurial opportunities. b. Committed A highly committed entrepreneur displays does not entertain negativism and skepticism. He/She accepts full responsibility for what has been promised to the customers establishes proper coordination with and among workers. c. Persistent He/She learns to take repeated or different actions in order to overcome the obstacles, make personal sacrifices or exert extraordinary effort to complete required task. d. Risk-taker There are three types of risk-takers: An aggressive risk-taker is not scared to take any risks in business. A moderate risk-taker is more calculative in taking risks. He/She analyzes the situation before taking the leap. A conservative risk-taker is not very eager to take any kind of risk. He/She is satisfied with managing a small business and a regular clientele. e. Efficient and Quality-oriented A successful entrepreneur Always performs the required tasks in accordance with existing standards of excellence or continuously improves on his/her past performance.  PLANNING CLUSTER - The plan serves as the blueprint of the actions to be undertaken by the entrepreneur. a. Goal-setter The basic concept of planning is setting goals and objectives. Although goals and objectives may appear similar, goals are long-term while objectives are short-term. SMART principle - This means that the goals and objectives are Specific, Measurable, Achievable, Realistic, and Time-bound. b. Information-seeker Successful entrepreneurs, in other words, primarily seek a strong basis to make sound decisions. c. Systematic in Planning and Monitoring The term systematic implies that there is a rational and logical approach in performing the activities. There are step-by-step procedures that are scientifically designed to be followed in the preparation of plans and monitoring of activities. Planning simply refers to the setting of goals and objectives. Monitoring, on the other hand, refers to the evaluation of the activities and adopted courses of actions whether they are carried in accordance with the plans. POWER CLUSTER - It simply refers to the ability of the entrepreneur to maintain the highest degree of interrelationship in the business community and influence others over to his/her line of reasoning. a. Persuasive and Positive Networker Successful entrepreneurs are persuasive and can easily influence and win over to their side the other stakeholders in business. b. Self-confident Successful entrepreneurs are known to have a high level of self-confidence. They project a favorable image of themselves which is founded on respect and good deeds. WEEK 5: SKILLS AND CORE COMPETENCIES IN ENTREPRENEURSHIP ➔ Skills are considered as the personal abilities to do things well. COGNITIVE SKILLS - refer to the mental ability of the entrepreneur to learn new things, generate new ideas, and express knowledge in both oral and written forms. PROBLEM-SOLVING SKILL  TECHNICAL SKILLS - these skills relate to their knowledge and proficiency in a specialized field like computer technology, accounting, marketing, etc. INTERPERSONAL SKILLS - about the relationship and interaction of the entrepreneur with the workers, suppliers, creditors, prospective customers, etc. ➔ CORE COMPETENCIES - defined as the combination of entrepreneurial concepts and principles, entrepreneurial character traits and entrepreneurial skills that provide and become the ultimate source of competitive advantage of the entrepreneur. ➔ Competitive advantage refers to the strategic position and condition of the entrepreneurial venture that: ◆ Provides the necessary attributes to outperform competitors, ◆ Distinguishes the venture from competitors, ◆ Achieves superior performance in the industry, and ◆ Produces a product or develops production methods that can hardly be copied by competitors. ➔ WEEK 6: DEVELOPING A BUSINESS PLAN WHAT IS BUSINESS PLAN FOR? ○ Business plan must have a specific audience in mind what important questions do this audience want answered.