Entreprep Midterms Reviewer PDF

Entrepreneurship - The process of designing, launching, and running a new business Entrepreneur - A person who recognizes opportunities and gaps in the market. Who operates and takes risk in a business venture Entrepreneurial Job Opportunities 1. Salesperson:...

Entrepreneurship - The process of designing, launching, and running a new business Entrepreneur - A person who recognizes opportunities and gaps in the market. Who operates and takes risk in a business venture Entrepreneurial Job Opportunities 1. Salesperson: ○ A person who works in sales. ○ Possesses excellent marketing strategies to persuade customers. 2. Mid-Level Management: ○ This career conveys ideas through execution. 3. Business Advisor: ○ They have training that helps identify things that others may not pick on. 4. Research and Development: ○ Training and education acquired is an advantage they can understand business concepts, procedures, and practices. 5. Teacher: ○ Can teach the benefit of math in business, history innovations, and literature to persuasive writing. 6. Business Reporters: ○ They can write an article. ○ They can understand the field and concepts and can use their knowledge to make the business section much more interesting. 7. Small Entrepreneurial Manager: ○ They can manage the operation of a business and apply entrepreneurial knowledge. 8. Management Analyst: ○ They provide analysis services to companies to coordinate projects efficiently and effectively. Entrepreneurial Traits 1. Risk Taker: ○ Have high-risk tolerance. ○ Are willing to do things that involve danger to achieve goals. 2. Innovative: ○ Entrepreneurs can think differently from anyone else. ○ They can create innovative products according to changing demands in the market. 3. Creativity: ○ An entrepreneur can develop new ideas and discover new ways of looking at problems and opportunities. 4. Problem Solving Skill: ○ Take the problem as a challenge and put in their best to find the most appropriate solution. 5. Self Confidence: ○ They believe in agility and ideas even when they face rejection along the way. 6. Optimistic: ○ A successful entrepreneur always sees hope in the future. 7. Planner: ○ Develop future courses of action keeping in mind the goals to be realized. ○ They believe that developing a realistic plan can ensure proper execution for attaining their goals. 8. With Clear Vision: ○ They can create a big picture, the purpose, goals, and market position of the business. ○ They can do strategic planning. 9. Patience: ○ Successful entrepreneurs believe that they can change the world. ○ There's an excitement and belief in what they are doing that got them through the hard times. 10. Resilience:  ○ A successful entrepreneur is resilient, they understand that failure is part of the game. 11. Agility: ○ They are able to treat every problem they encounter and they address it without taking too long. ○ They remain proactive and vigilant, preventing small problems from becoming major ones. 12. Passion: ○ Entrepreneurs work hard for their businesses, it drives them to keep working to achieve their vision. 13. Flexibility: ○ Able to adapt to changes and solve problems as they arise, they are receptive to other people's needs, opinions, and ideas, and are open-minded to feedback from others. Recognize Potential Market Entrepreneurial ideas leads to the identification of entrepreneurial opportunities, which in turn results in the opening of an entrepreneurial venture. ENTREPRENEURIAL PROCESS IN CREATING NEW VENTURE Basic Foundation in Seeking Opportunities 1. Entrepreneurial Mind Frame: - see things in a very positive and optimistic way in the midst of difficult situations. - Being a risk-taker can find solutions when problems arise. 2. Entrepreneurial Heart Flame: - driven by passion; attracted to discover satisfaction in the act and process of discovery. - Passion is the great desire to achieve his/her goals. 3. Entrepreneurial Gut Game: - Be intuitive. Also known as intuition. - “gut game” confidence in oneself and the firm belief that everything you aspire to can be reached. Sources of Opportunities Changes in the environment People's interest Technological discovery and Past experiences advancement Government's thrust, programs, and policies 5 Forces Competing Within the Industry Buyers Substitute product Potential new entrants Supplier Rivalry Definition of Terms Buyers: Are the ones who pay cash in exchange for your goods and services. Competition: It is the act or process of trying to get or win something. Entrepreneurial process: Can be defined as the steps taken to begin a new enterprise. A step-by-step method one has to follow. Entrepreneurial ideas: Are innovative concepts that can be used for financial gain that is usually centered on a product or service that can be offered for money. Essentials of entrepreneur's opportunity-seeking: Are the basic foundation that the entrepreneur must have in seeking opportunities, such as: ○ Entrepreneurial mind frame ○ Heart flame ○ Gut game External environment: Refers to the physical environment, societal environment, and industry where the business operates. Government: Refers to the local government (municipality, city, or provincial) or the national government and its branches.  New entrants: The ones who enter something. Opportunity: Seeking the process of considering, evaluating, and pursuing market-based activities that are accepted to be beneficial for the business. Rivalry: A state or situation in which people or groups are competing with each other. Sources of opportunity: Can be attained by assessing and looking at environmental changes; technological discovery and advancement; government's thrust, programs, and policies; people's interests, and past experiences. Substitute: Anything that takes the place or function of another. Suppliers: Are the ones who provide something that is needed or wanted. 1. Changes in the Environment ideas arise when changes happen in the external environment. A person with an entrepreneurial drive views these changes positively. The Industry environment of the business includes: Employees Competitors Government Customers Supplier Creditors 2. Technological discovery and advancement a person with entrepreneurial interest sees the possibility of business opportunities in any new discovery or because of the use of the latest technology. 3. Government's thrust, programs, and policies The priorities, projects, programs, and policies of the government are also good sources of ideas. 4. People's interest The interests, hobbies, and preferences of people are rich sources of entrepreneurial ideas, as the increasing number of Internet Cafés at present could lead to the strong attachment of young people to computers. 5. Past experiences The expertise and skills developed by a person who has worked in a particular field may lead to the opening of a related business enterprise. Recognize and Understand the Market Value Proposition (VP) - Summarizes consumer's reasons for purchasing a product or service. - Used to add value to customers' lives. Basic elements: Target Customer Name of the product Needs/opportunity Name of the enterprise/company Unique Selling Proposition (USP) – Addressing customer wants and desires. - Selling products or services. Tips on how to create effective USP Identify and rank the uniqueness of the product or services character Be very Specific Keep it Short and Simple (KISS) A. Target Market is a sage in market identification process that aims to determine the buyers with common needs and characteristics. B. Customer Requirements are the specific characteristics that the customers need from a product or a service. Two types of customer requirements: 1. Service Requirement - Intangible 2. Output Requirement Service Requirement - Tangible