GEE 8 MODULE 4.docx

--------------------------------------- **GEE 8 -- THE ENTREPRENEURIAL MIND** --------------------------------------- +-----------------------------------------------------------------------+ | This is a property of | |...

--------------------------------------- **GEE 8 -- THE ENTREPRENEURIAL MIND** --------------------------------------- +-----------------------------------------------------------------------+ | This is a property of | | | | **PRESIDENT RAMON MAGSAYSAY STATE UNIVERSITY** | | | | **COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT** | | | | **NOT FOR SALE** | +-----------------------------------------------------------------------+ GEE 8- THE ENTREPRENEURIAL MIND COPYRIGHT 2021   Copyright. Republic Act 8293 Section 176 provides that "No copyright shall subsist in any work of the Government of the Philippines. However, prior approval of the government agency or office wherein the work is created shall be necessary for exploitation of such work for profit. Such agency or office may, among other things, impose as a condition the payment of royalties.   Borrowed materials included in this module are owned by their respective copyright holders. Every effort has been exerted to reach and seek permission to use these materials from their respective copyright owners. The University and authors do not claim ownership over them.   Learning Module Development Team +-----------------------+-----------------------+-----------------------+ | Assigned Chapter | Title | Author/s | +=======================+=======================+=======================+ | Chapter 1 | Entrepreneurship and | *Karen E. Casuga* | | | the Entrepreneur | | | | | *Pearl Joy F. Danila* | +-----------------------+-----------------------+-----------------------+ | Chapter **2** | Entrepreneurs Impact | | | | the Economy | | +-----------------------+-----------------------+-----------------------+ | Chapter **3** | The student as | | | | entrepreneur: A | | | | Self-Evaluation | | +-----------------------+-----------------------+-----------------------+ | Chapter **4** | Success Indicators | | | | for a Business | | +-----------------------+-----------------------+-----------------------+ | Chapter **5** | Setting Personal | | | | goals | | +-----------------------+-----------------------+-----------------------+ | Chapter **6** | Opportunity or Idea: | | | | Using Business plan | | | | to determine when | | | | Business Opportunity | | | | Exists | | +-----------------------+-----------------------+-----------------------+ | Chapter **7** | Start-up operations, | | | | getting started in | | | | Business | | +-----------------------+-----------------------+-----------------------+ | Chapter 8 | Production of Goods | | | | and Services | | +-----------------------+-----------------------+-----------------------+ | Chapter **9** | Financial Management | | +-----------------------+-----------------------+-----------------------+ | Chapter 10 | Social | | | | Responsibilities of | | | | Entrepreneurs | | +-----------------------+-----------------------+-----------------------+ | Chapter 11 | Business Success | | | | Through People | | | | Development | | +-----------------------+-----------------------+-----------------------+ Evaluators:   *Overall Chairperson: Dr. Esmen M. Cabal* *Vice Chairperson: Dr. Lorna L. Acuavera* *Member: Dr. Juan A. Asuncion* *Dr. Dann Mark N. Dela Cruz* *Ms. Jammie Fritz Castillo* Course Overview =============== Introduction ------------ This course provides business and non-business majors with the skills necessary to succeed as an entrepreneur. The fundamentals of starting and operating a business, developing business plan, obtain financing, marketing a product or service and developing an effective accounting system will be covered. Course General Objectives ------------------------- *By the end of the course, the students will be able to:* 1. *Know about the definition, concepts and scope of the Entrepreneurship; its perspective, knowledge competency, and risk tolerant behavior.* 2. *Understanding the basic concepts in the area of entrepreneurship* 3. *Understanding the role and importance of entrepreneurship for economic development* 4. *Understanding the stages of the entrepreneurial process and the resources needed for the successful development of entrepreneurial ventures.* 5. *Understand how entrepreneurs characterized by relevant traits thrive in a complex global society* 6. *Understand the importance of growth mind set in establishing positive attitudes towards entrepreneurships* 7. *Understand the importance of growth mind set in establishing positive attitudes towards entrepreneurships* 8. *Acquire self- management and critical thinking in order to work positively in a team by creating a business plan with product.* 9. *Adopting of the key steps in the elaboration of business idea* 10. *Develop personal creativity and entrepreneurial initiative* Course Details: --------------- +-----------------------------------+-----------------------------------+ | ***Course Code*** | ***: GEE 8*** | +===================================+===================================+ | ***Course Title*** | ***: The Entrepreneurial Mind*** | +-----------------------------------+-----------------------------------+ | ***No. of Units*** | ***:** **3*** | +-----------------------------------+-----------------------------------+ | ***Classification*** | ***: Lecture-based*** | +-----------------------------------+-----------------------------------+ | ***Pre-requisite / | ***: None*** | | Co-Requisite*** | | +-----------------------------------+-----------------------------------+ | ***Semester and Academic Year*** | ***: 1^st^ Semester, AY | | | 2021-2022*** | +-----------------------------------+-----------------------------------+ | ***Schedule*** | ***: Monday & Wednesday*** | | | | | | ***: 7:30 AM- 9:00 AM \[BSHM | | | 4B\]*** | | | | | | ***: 12:30 PM -- 2:00 PM \[BSTM | | | 4A\]*** | | | | | | ***: Tuesday & Thursday*** | | | | | | ***: 2:00 PM -- 3:30 PM \[BSHM | | | 4C\]*** | +-----------------------------------+-----------------------------------+ | ***Name of Faculty*** | ***: Pearl Joy F. Danila*** | +-----------------------------------+-----------------------------------+ | ***Contact Details*** | ***:** Email: | | | pdanila\@prmsu.edu.ph* | | | | | | ***:** Mobile Number* | | | | | | ***:** FB Account: Pearl Danila* | +-----------------------------------+-----------------------------------+ | ***Consultation*** | ***: Friday*** | | | | | | ***: 8:00 AM -- 10:00 AM*** | +-----------------------------------+-----------------------------------+ Learning Management System -------------------------- *The University LMS will be used for asynchronous learning and assessment. The link and class code for LMS will be provided at the start of class through the class official Facebook Group / Messenger Group.* - ***Edmodo*** - ***Google Classroom*** - ***University LMS*** Assessment with Rubrics ----------------------- *Students will be assessed in a regular basis thru quizzes, long/unit/chapter tests, individual/group outputs using synchronous and/or asynchronous modalities or submission of SLM exercises. Rubrics are also provided for evaluation of individual/group outputs.* *Major examinations will be given as scheduled. The scope and coverage of the examination will be based on the lessons/topics as plotted in the course syllabus.* Module Overview =============== **Introduction** This **THE ENTREPRENEURIAL MIND was** written for the students of hospitality and tourism programs. Students will be able to read and fully understand its contents and answer the exercises placed at the end of every chapter. It will also be helpful and served as a guide to the faculty teaching the students of the tourism and hospitality management. The objective of the authors is to explain the basic information and concepts about the hospitality and tourism world. Also, it equips the students to have knowledge on operation management of tourism and hospitality industry in understanding how it can be made to work for them and in their future profession. \* **Table of Contents*** *Chapter1:* Entrepreneurship and the Entrepreneur *Chapter2: Entrepreneurs Impact the Economy* *2.1 Entrepreneurs Help Economies* *2.2 Entrepreneurial Ecosystems* *2.3 Becoming an Entrepreneur* *2.4 The Individual Entrepreneur* *2.5 Entrepreneurial background and characteristics* *2.6 Motivation* *2.7 Role Models and Support Systems* *2.8 Male versus Female Entrepreneurs* *2.9 Minority Entrepreneurship* *2.10 Entrepreneurs versus Inventors* *Chapter3: The student as entrepreneur: A Self-Evaluation* 3.1 Why you should do a formal Self-Assessment? 3.2 Anatomy of Self-Assessment 3.3 A few questions to ask yourself 3.4 Questions that delve into external factors *Chapter4:* *Success Indicators for a Business* 4.1 7 stages of starting and Running a business 4.2 Opportunity and Idea Generation 4.3 Approaches to Generating Ideas 4.4 Techniques of Brainstorming 4.6 Quiet Brainstorming 4.7 Role Play Brainstorming 4.8 Brainstorming with support 4.9 Radically Creative Brainstorming *Chapter5: Setting Personal goals* 5.3 Why set goals? 5.4 Starting to set personal goals 5.5 Staying on course 5.6 Smart goals 5.7 Further tips for setting your goals 5.8 Achieving goals 5.9 Example personal goals *Chapter6: Opportunity or Idea: Using* *Business plan to determine when a Business opportunity exists* 6.1 What is a business plan? 6.2 Purpose of a business plan 6.3 Steps of making a business plan 6.4 The importance of business plan 6.5 Template of business plan *Chapter7: Start-up operations, getting started in* *business* 7.1 Steps on how to start a Business *Chapter8: Production of goods and services* *Chapter9: Financial Management* 9.3 Cooperative for Micro Business 9.13 Balance Sheet *Chapter10:* Social Responsibilities of Entrepreneurs 10.1 Social responsibility explained 10.2 Historical development of social responsibility 10.3 Theory of Karl Marx 10.4 The influence of labor Unions 10.5 Theories of Social Responsibility 10.6 Social responsibility to consumers 10.7 business ethics *Chapter11:* Business Success through People Development 11.1 Motivating people 11.2 positive reinforcement 11.3 employee expectations from management 11.4 How to get peak performance 11.5 Features of excellent enterprise 11.6 Success of technique of famous people 11.7 Good character create success 11.8 The power of prayer **The Entrepreneurial Mind** ** ** Chapter 4 **Success Indicators for a Business** **The Entrepreneurial Mind** ** ** Chapter 4 **Success Indicators for a Business** Chapter 4 ========= **Success Indicators for a Business** **Introduction** A small business goes through various stages of development, facing different cycles throughout the life of the business. What you focus on today may not be what\'s important tomorrow, and your challenges will change and require different approaches to be successful. You need to be able to anticipate upcoming challenges and financing sources you will need to succeed at each stage of the business lifecycle. **Specific Objectives** *At the end of the lesson, the students should be able to:* 1. Draw conclusions as to whether a business\'s success should be judged by the amount of profit if earns. 2. List, explain, and evaluate the factors that determine the success of business. 3. Evaluate the importance of social responsibility as a factor in developing a successful business. **Duration** *Chapter 4: Success Indicators for a Business \[3 Hours\]* **4.1 THE 7 STAGES OF STARTING AND RUNNING A BUSINESS**  **[Seed Stage]** The seed stage of your business lifecycle is when your business is just a thought or an idea. - **Challenge:** Most seed-stage companies will have to overcome the challenge of market acceptance and pursue one niche opportunity. Do not spread money and time resources too thin. - **Focus:** At this stage of the business the focus is on matching the business opportunity with your skills, experience, and passions. Other focal points include deciding on a business ownership structure, finding professional advisors, and business planning. - **Money Sources:** Early in the business life cycle, with no proven market or customers, the business will rely on cash from owners, friends, and family. Other potential sources include suppliers, customers, and government grants. **[Start-Up Stage]** Your business now exists in legal terms. Products or services are in production, and you have your first customers. - **Challenge:** If your business is in the start-up lifecycle stage, it is likely you have overestimated money needs and the time to market. The main challenge is not to burn through what little cash you have. You need to learn what profitable needs your clients have and do a reality check to see if your business is on the right track. - **Focus:** Start-ups require establishing a customer base and market presence along with tracking and conserving cash flow. - **Money Sources:** Owner, friends, family, suppliers, customers, or grants. **[Growth Stage]** Revenues and customers are increasing with many new opportunities and issues. Profits are strong, but the competition is surfacing. - **Challenge:** The biggest challenge growth companies face is dealing with the constant range of issues bidding for more time and money. Effective management is required, as is a possible new business plan. Learn how to train and delegate to conquer this stage of development. - **Focus:** Businesses in the growth life cycle are focused on running the business in a more formal fashion to deal with increased sales and customers. Better accounting and management systems will have to be set up. New employees will have to be hired to deal with the influx of business. - **Money Sources:** Banks, profits, partnerships, grants, and leasing options. **[Established Stage]** Your business has now matured into a thriving company with a place in the market and loyal customers. Sales growth is not explosive but manageable. Business life has become more routine. - **Challenge:** It is far too easy to rest on your laurels during this life stage; the marketplace is relentless and competitive. Stay focused on the bigger picture. Issues like the economy, competitors, or changing customer tastes can quickly end all you have worked for. - **Focus:** An established life cycle company will be focused on improvement and productivity. To compete in an established market, you will require better business practices along with automation and outsourcing to improve productivity. - **Money Sources:** Profits, banks, investors, and government. **[Expansion Stage]** This life cycle stage is characterized by a new period of growth into new markets And distribution channels. This stage is often the choice of the small business owner to gain a larger market share and find new revenue and profit channels. - Challenge: Moving into new markets requires planning and research. Your focus should be on businesses that complement your existing experience and capabilities. Moving into unrelated areas can be disastrous. - Focus: Add new products or services to existing markets or expand the existing business into new markets and customer types. - Money Sources: Joint ventures, banks, licensing, new investors, and partners. **[Decline Stage]** Changes in the economy, society, or market conditions can decrease sales and profits. It may quickly end many small companies. - **Challenge:** Businesses in the decline stage of the life cycle will be challenged by dropping sales, profits, and negative cash flow. The biggest issue is how long the business can support negative cash flow. Consider if it may be time to move on to the final lifecycle stage---exit. - **Focus:** Search for new opportunities and business ventures. Cutting costs and finding ways to sustain cash flow is vital for the declining stage. - **Money Sources:** Suppliers, customers, owners. **[Exit Stage]** It is a big opportunity for your business to cash out on all the effort and years of hard work. Or it can mean shutting down the business. - **Challenge:** Selling a business requires a realistic valuation. It may have been years of hard work to build the company, but think about the real value in the current marketplace. If you decide to close your business, the challenge is to deal with the financial and psychological aspects of a business loss. - **Focus:** Get a proper valuation of your company. Look at your business operations, management, and competitive barriers to make the company worth more to the buyer. Setup legal buy-sell agreements along with a business transition plan. - **Money Sources:** Find a business valuation partner. Consult with your accountant and financial advisers for the best tax strategy for selling with or closing out the business. Each stage of the business lifecycle may not occur in chronological order. Some businesses will be \"built to flip,\" quickly going from startup to exit. Others will choose to avoid expansion and stay in the established stage. Whether your business is a glowing success or a dismal failure depends on your ability to adapt to its changing life cycles. What you focus on and overcome today will change in the future. Understanding where your business fits in the lifecycle will help you foresee upcoming challenges and make the best business decisions. ***4.2 OPPORTUNITY AND IDEA GENERATION*** ***Role of creativity and innovation in business*** *\"Business is not about the idea of power, but the power of ideas\"* *The starting point of any business organization is a powerful idea. An idea worth thinking about, an idea worth and enhancing and developing, an idea worth converting into a business.* ***BUSINESS OPPORTUNITY*** *Business opportunity is possibility for new profit HOW? Either through the founding and (a) formation of a new venture, or (b) the significant improvement of an existing venture.* ***OPPORTUNITY RECOGNITION*** - *Can be considered as an activity that can occur both prior to establishment of a firm, and also post founding of a firm (throughout the life of the firm, and throughout the life of the entrepreneur).* ***IDEA GENERATION*** - *Is the creative process of generating, developing and communicating new ideas?* *A. Creativity and Innovation* *Creativity - is the ability to bring something new into existence* *Innovation - is the translation of an idea into application, which has a commercial value* 1. *Innovation* 2. *Development* 3. *Actualization* **4.3 APPROACHES TO GENERATING IDEAS** **Brainstorming** **Under this approach all the members of the group attempt to make suggestions. This helps in generating a large number of product ideas.** **BRAINSTORMING** **Brainstorming is a method of generating ideas and sharing knowledge to solve a particular commercial or technical problem, in which participants are encouraged to thing without interruption. Brainstorming is a group activity where each participant shares their ideas as soon as they come to mind. At the conclusion of the session, ideas are categorized and ranked for follow- on- action.** **During brainstorming sessions there should be no criticism of ideas: you are trying to open up possibilities and break down wrong assumptions about the limits of the problem.** **Ideas should only be evaluated the end of the brainstorming session- this is the time to explore solutions further using conventional approaches.** **4.4 TECHNIQUES OF BRAINSTORMING** What\'s the best way to brainstorm? While there are basic rules that make the process meaningful and effective, there are dozens of ways to inspire creative ideas. Many facilitators use more than one technique in a single brainstorming session to keep the creative juices flowing while supporting different styles of thought and expression. Depending upon your situation, you may want to start with one of the unique approaches described below. Or you may want to start with \"basic brainstorming,\" and then switch things up as needed to ensure you generate a good quantity of really useful, creative ideas. Basic brainstorming isn\'t complex, though there are important techniques for ensuring success. Here, in a nutshell, is how basic brainstorming works: 1. Get a group of people together to address a problem, challenge, or opportunity. 2. Ask your group to generate as many ideas as possible---no matter how \"off the wall\" they may seem. During this period, no criticism is allowed. 3. Review the ideas, select the most interesting, and then lead a discussion about how to combine, improve, and/or implement the ideas. While this process may be simple in theory. But it\'s not always easy to generate new ideas out of nowhere. And that\'s why so many interesting and inspirational brainstorming techniques have been developed. Discover which techniques are the best fit for your next brainstorming session. **4.5 ANALYTIC BRAINSTORMING** When brainstorming focuses on problem solving, it can be useful to analyze the problem with tools that lead to creative solutions. Analytic brainstorming is relatively easy for most people because it draws on idea generation skills, they\'ve already built-in school and in the workplace. No one gets embarrassed when asked to analyze a situation. 1. **Mind Mapping** 2. **Reverse Brainstorming** 3. **Gap Filling** 4. **Drivers Analysis** 5. **SWOT Analysis** 6. **The Five Whys** 7. **Star bursting/6 Ws** **4.6 QUIET BRAINSTORMING** In some situations, individuals are so cramped for time that a brainstorming session Would be impossible to schedule. In other situations, team members are unwilling to Speak up in a group or to express ideas that others might not approve of. When that\'s the case, you might be well served with brainstorming techniques that allow Participants to generate ideas without meeting or without the need for public participation. 1. **Brain-Netting (Online Brainstorming)** Perhaps not surprisingly, brain netting involves brainstorming on the Internet This requires someone to set up a system where individuals can share their ideas privately, but then collaborate publicly. There are software companies that specialize in just such types of systems, like Slack or Google Docs. Once ideas have been generated, it may be a good idea to come together in person, but it\'s also possible that online idea generation and discussion will be successful on its own. This is an especially helpful approach for remote teams to use, though any team can make use of it. Learn more about this brainstorming technique: 2. **Brainwriting (or Slip Writing)** 3. **Collaborative Brainwriting** **4.7 ROLE PLAY BRAINSTORMING** What do customers/clients/managers really want? What are the challenges we face internally or externally? Very often, those questions are best answered by internal and external clients. Role play allows your team to \"become\" their own clients, which often provides surprisingly potent insights into challenges and solutions. Another plus of role play is that, in some cases, it lowers participants\' inhibitions. Variants of role play include Role storming, Reverse Thinking, and Figure Storming. 1. **Role Storming** Ask your participants to imagine themselves in the role of a person whose experience relates to your brainstorming goal (a client, upper management, a service provider). Act out a scene, with participants pretending to take the other\'s point of view. Why might they be dissatisfied? What would it take for them to feel better about their experience or outcomes? Learn more about this innovative way to come up with ideas as a team: 2. **Reverse Thinking** This creative approach asks, \"what would someone else do in our situation?\" Then imagine doing the opposite. Would it work? Why or why not? Does the \"usual\" approach really work well, or are there better options? 3. **Figure Storming** **4.8 BRAINSTORMING WITH SUPPORT** For groups that aren\'t creative or communicative or are likely to get stuck once the most obvious ideas have been suggested, help is in order. You can provide that help up front by setting up the brainstorming process to include everyone in a Structured, supportive manner. A few techniques for this type of brainstorming include Step Ladder Brainstorming, Round Robin Brainstorming, Rapid Ideation, and Trigger Storming. 1. **Step Ladder Brainstorming** 2. **Round Robin Brainstorming** 1. must share an idea and 2. wait until everyone else has shared before suggesting a second idea or critiquing ideas 3. **Rapid Ideation** 4. **Trigger Storming** **4.9 RADICALLY CREATIVE BRAINSTORMING** If your team seems to be stuck on conventional answers to brainstorming Challenges, you may need to stir the pot to help them generate creative ideas by using techniques that need out-of-the-box thinking. These may include the Charrette approach and \"what if\' challenges. 1. **Charrette** 2. **\"What If\" Brainstorming** **REFERENCES/ADDITIONAL RESOURCES/READINGS** **Printed References:** Instructional Manual in the Entrepreneurial Mind, August 2020, President Ramon Magsaysay State University, College of Industrial Technology Fajardo Feliciano T., Entrepreneurship, Capitol House Incorporated, 1994 **Online References:** [[Is Your Business Successful? 3 Indicators of Success (powerhomebiz.com)]](https://www.powerhomebiz.com/starting-a-business/success-factors/indicators-of-success.htm#:~:text=3%20Indicators%20of%20Success%201%20First%20Indicator%3A%20Achieving,the%20respectable%20wage%20category%20and%20contribute%20real%20profit.) [[7 Steps to Starting Your Own Business Quickly (thebalancesmb.com)]](https://www.thebalancesmb.com/starting-own-business-1200678)