Entrepreneurship Module-1 PDF

What is Entrepreneurship? The act of building and creating a business enterprise. A process of doing something new (CREATIVE) and something different (INNOVATIVE) for the purpose of creating wealth for the individual and adding value to society. ROWENA GINAFE P. VA...

What is Entrepreneurship? The act of building and creating a business enterprise. A process of doing something new (CREATIVE) and something different (INNOVATIVE) for the purpose of creating wealth for the individual and adding value to society. ROWENA GINAFE P. VARGAS, MBA CATEGORIES OF ENTERPRISES Micro-Enterprise Asset Size: less than P3 Million Small Enterprise Asset Size: Over P3M to P15M Medium Enterprise Asset Size: Over P15M to P100M Large Enterprise Asset Size: Over P100M ASSET SIZE EXCLUDES THE VALUE OF LAND ROWENA GINAFE P. VARGAS, MBA Benefits of Entrepreneurship Creates employment Improves quality of life Contributes to more equitable distribution of income and therefore eases social unrest X Risks of Entrepreneurship Risk of failure Unpredictable business conditions Long hours of work Unwanted or unexpected responsibilities Rewards of Entrepreneurship Have unlimited opportunity to make money Be your own boss Tap your creativity Overcome challenges and feel fulfilled Entrepreneurs may be categorized into the following: 1. The intrapreneur - an entrepreneur with an existing organization referred to as the corporate entrepreneur. 2. The solo self-employed individual - includes all agents, repairmen, brokers, accountants, physicians who operate alone or only with a few employees and perform works personally. 3. The dealer to dealers – include highly knowledgeable businessmen engaged in various forms of trades frequently, directly or indirectly related to their line of work. 4. The team builders – individuals who go on building larger companies using hiring and delegation. 5. The independent innovators – include person who hit upon ideas for better products or services and the create companies to develop, produce and sell. 6. The pattern multipliers – who spot an effective business pattern 7. The economy scale exploiters - entrepreneurs who locate their business in lower rent and tax areas. 8. The capital aggregators – smart entrepreneurs who use their experience and expertise in pooling a group of financiers to engage in a business. 9. The acquirers - entrepreneurs who acquires business. 10. The independent investors- include pure inventors who develop their new product or inventions and take care of marketing them. 11. The buy and sell artists - they include the wise guys referred to as corporate raiders and brokers who turn around sell and liquidate.  Entrepreneurial Process Opportunity Decide to Start a Define and Analyze Economics of New New business New Ventures Businesses LAUNCH Attracting Legal form of Business Stakeholders and Org. & taxation Financing Resources Planning issues GROWTH Grow and Operate the business HARVEST Become Cash Sell the Go Public Liquidate Cow Business