Small Business Varieties and Impacts (1) PDF

BA0025 ENTREPRENE URIAL MANAGEMEN T © McGraw-Hill Education 1  MODULE 1 SUBTOPIC 1 SMALL BUSINESS: VARIETIES AND IMP...

BA0025 ENTREPRENE URIAL MANAGEMEN T © McGraw-Hill Education 1  MODULE 1 SUBTOPIC 1 SMALL BUSINESS: VARIETIES AND IMPACTS © McGraw-Hill Education 2 OBJECTIVES:  - Discuss what entrepreneurship is  Recognize the personal characteristics of successful entrepreneurs  Differentiate between small businesses and high- growth ventures  Determine the classification of entrepreneurial firms in the Philippines and the US  Identify actions key to becoming a business owner BUSINESSMAN AND ENTREPRENEURS ARE THE SAME. TRUE OR FALSE? WHY? https://padlet.com/heldz13 bhe/entrepreneurial_mana gement_om21-12bcof3s3t cmldxb What is ENTREPRENEURS HIP - is a process through which new core products or services are developed to augment them, build market offerings, and bring them to market. - The capacity for innovation, investment, and expansion in new markets, products, and techniques - It is a creative and innovative process and adapting response to the environment - Is the propensity of mind to take calculated risks with confidence coupled with correct decision–making to achieve a predetermined business or industrial objective and vision.  CREATIVITY INNOVATION Thinking new Doing new ways, methods, ways, systems, and methods things systems, and things Starting an Entrepreneurial Small Business: Four Key Ideas Consider four key things when starting a small business. Believe that you can do this – referred to as self-efficacy. Planning + Action = Success. Help helps. There are many ways to become an entrepreneur. Do well. Do good. Most firms go through a similar start-up process. ( Entrepreneurial Process) © McGraw-Hill 1 Entrepreneurs Are Everywhere An entrepreneur’s occupation depends on the type of goods or services they, and their firm, are producing. Entrepreneurial businesses show novelty in their products, services, or business models, while small businesses are imitative. Small business owners are self- employed entrepreneurs. Founders start a business – by themselves or in a franchise. © McGraw-Hill 1 CSI: Entrepreneurship Self-employed founders are involved in independent entrepreneurship. Founders of nonprofit organizations or for- profit social ventures are pursuing social entrepreneurship. When focus is on ecological issues, it is considered sustainable or green entrepreneurship. Corporate entrepreneurship focuses on bringing Motivation can Taken together, corporate, new products or services to market, or opening up new markets for their firm. be: social, and independent Opportunity entrepreneurship represent - CSI entrepreneurship. driven entrepreneu Or the three rship or forms of Necessity- entrepreneursh © McGraw-Hill 1  Nations relying on extracting, and forestry are factor- driven economies. Pakistan, Jamaica, Venezuela. Industrialized economies are efficiency-driven Innovation-driven economies. economies focus on Russia, Brazil, China. high- value-added manufacturing with a large service sector – for d o m estic and © McGra w-H ill Ed ucation export. Access text alternative for this image. Source: Custom tabulation of 2015–2016 GEM Global Report, Table 5, p. 130, by Jerome 6 The Many Types of Entrepreneurial Small Businesses There are over 1 million entrepreneurial firms in the Philippines, called many things, such as: Small and medium enterprises (SMEs). Independent small businesses. Owner-managed firms. Some entrepreneurs become serial entrepreneurs. Innovativeness refers to how important a role new ideas, products, services, processes, or markets play in an organization. © McGraw-Hill 1 CAPITAL REQUIREMENTS:  Enterprises are classified as Micro if they have PHP 3,000,000 or less in assets and one to nine employees,  Small enterprises if they have PHP 3,000,001 to PHP 15,000,000 in assets and 10 to 99 employees, and  Medium enterprises if they have PHP 15,000,001 to PHP 100,000,000 in assets and 100 to 199 employees.  Large enterprises have over PHP 100,000,001 or  Table 1.2: Differences between Small Businesses and High-Growth Ventures Access text alternative for this image. © McGraw-Hill 2 Entrepreneurs and Firm Growth Strategies (US) (Four generic growth strategies) A firm’s overall growth strategy can be: Lifestyle or part-time firms. Traditional small businesses. High- performing small Access text alternative for this businesses. image. High- © McGraw-Hill 9 Entrepreneurs and Firm Growth Strategies (US) (Four generic growth strategies) A firm’s overall growth strategy can be: lifestyle or part-time firm A small business primarily intended to provide partial or subsistence financial support for the existing lifestyle of the owner, most often through operations that fit the owner’s schedule and way of working. Often operating seasonally or when the owner wants to work in the business. These typically have sales of $25,000 a year or less. traditional small business A firm intended to provide a living income to the owner and operating in a manner and on a schedule consistent with other firms in the industry and market. Sales of between $25,000 and $100,000 Entrepreneurs and Firm Growth Strategies (US) (Four generic growth strategies) A firm’s overall growth strategy can be: high-performing small business A firm intended to provide the owner with a high income through sales or profits superior to those of the traditional small business. Sales of between $100,000 to $1,000,000. high-growth venture A firm started with the intent of eventually going public, following the pattern of growth and operations of a big business. Sales of more than $1million Unicorns The most successful high-growth ventures, those with a valuation of $1 billion or more. They have valuations of $1 billion or more.  Myths about Small Businesses There’s not enough financing. Besides SBA and/or bank loans, there are crowdfunding, P2P lending, drop- shipping, and bootstrapping techniques. To make profits, you need to make something. There are plenty of service industries making profits. If you fail, you can never try again. Not true, Henry Ford failed – twice – before making Ford. Students (or some other group) don’t have © McGraw-Hill 10  Table 1.3: Major Inventions from Small Businesses and Student-Started Businesses Access text alternative for this image. © McGraw-Hill Sources: The State of Small Business: A Report of the President, 1994 (Washington, DC: U.S. Government Printing Office, 1995); Meinie Reid, “How a Shop Assistant Saw the Light 11 Entry Competencies – The BRIE Model You need four elements when starting a business: boundary, resources, intention, and exchange. Access text alternative for this image. © McGraw-Hill 28 Small Business and the Economy New Jobs. Small business are willing to offer with jobs to atypical work histories or needs. people New Ideas. They cause creative destruction by creating new goods, services, or firms that hurt existing ones. New Opportunities. Small businesses create new opportunities for New entrepreneurs, customers, Markets.Small and largerfind businesses businesses. new markets by importing and exporting. Small businesses also conduct e- virtual instant commerce usingglobal entrepreneurship (VIGE). © McGraw-Hill 29  Challenge and the Entrepreneurial Way If you don’t succeed the first time, try, try again – perseverance. Scale back to the level of resources you currently have. Bird in the hand - one strategy is effectuation. Pivot – also called the corridor principle. Take it on the road by trying a market different from the one you live in. Ask for help – harness the wisdom of crowds through crowdsourcing. © McGraw-Hill 30  31 Teach a Course SEATWORK/ ACTIVITY 1. What inspired you most about the entrepreneur’s journey? 2. Do you agree with all the decisions the entrepreneur made? If yes, why? If not, what would you have done differently, and why? 3. What challenges did the entrepreneurs face, and how did they overcome them? 4. If you were to start your own business, what would you do differently after watching this video? Why? 5. What role did failure or setbacks play in Nanay Coring’s success story 6. Do you think the entrepreneur’s success was more due to their hard work, unique ideas, or venture timing? How would you weigh these factors? 7. How did the entrepreneur’s background or early experiences influence their path to success? 8. Is there a concept of innovation in the story? How important was innovation in the entrepreneur's success? 9. In what ways did the entrepreneur’s approach to business differ from traditional methods? Do you think this was a key factor in their success? 10.What have you learned from Nanay Coring’s story and how can you apply it to your own goals or projects 11.What characteristics and qualities of an entrepreneur did RUBRICS Content and Knowledge -Demonstrates thorough understanding of the topic 10 pts. with comprehensive and accurate information. Organization and Structure - Presentation is well-organized, with ideas flow logically. 10 pts. Delivery and Presentation Skills - Creative presentation. Delivers with confidence, clear articulation, appropriate pace, and engaging body language. 10 pts.  End of main content. Because learning changes everything. ® www.mheducation.com Copyright 2021 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.