Topic 2: Understanding Entrepreneurship PDF

TOPIC 2: UNDERSTANDING ENTREPRENEURSHIP WHY ENTREPRENEURSHIP EDUCATION? REPUBLIC ACT NO 10679 Because universities focus on traditional programs, the Philippine government approved the Youth Entrepreneurship Act in 2015 to promote the sustained development of young Filipinos in the areas of...

TOPIC 2: UNDERSTANDING ENTREPRENEURSHIP WHY ENTREPRENEURSHIP EDUCATION? REPUBLIC ACT NO 10679 Because universities focus on traditional programs, the Philippine government approved the Youth Entrepreneurship Act in 2015 to promote the sustained development of young Filipinos in the areas of finance and entrepreneurship. Through this Act, the government intends to change the mindset of Filipinos – from wanting to be employees to being business owners. Initiatives under this law include standardizing the current programs of schools on entrepreneurship and financial literacy, providing government assistance and training programs to students, developing mentoring and coaching programs for young entrepreneurs, and setting up incubation laboratories and creative spaces in schools. ENTREPRENEURIAL LOUISIANS This entrepreneurship course is for you learners to ignite your entrepreneurial spirit and to be innovators in your chosen career path and thus, able to introduce changes in your field of discipline – changes that transform the world for the better. It has been observed that in the past, students’ creativity are wasted. How? Learners’ creative outputs are dumped in the storage rooms. With entrepreneurship education, learners may be able to see the opportune use of their creative outputs and turn them into reality. “The purpose of innovation in higher education is to create entrepreneurial universities with graduates who will be change- adept to meet the emerging challenges of an evolving world” Rev. Fr. Gilbert Sales, CICM, PhD. With entrepreneurship education, entrepreneurial Louisians will create value in their chosen profession, which is a concept of careerpreneurship. With careerpreneurship, you now “entrepreneurial” your career, hence making yourself valuable. EVOLUTION OF ENTREPRENEURSHIP The word Entrepreneur is derived from the French entreprendre, meaning “to undertake.” It was a term coined by Richard Cantillon, a French economist. The entrepreneur is one who undertakes to organize, manage, and assume the risks of a business. Although no single definition of entrepreneur exists and no one profile can represent today’s entrepreneur, research is providing an increasingly sharper focus on the subject. DEFINITION OF ENTREPRENEURSHIP Entrepreneurship is a mindset. It is not only about the creation of a business, but rather it involves seeking opportunities, taking risks beyond security and having the tenacity to push an idea through to reality. 1. Seeking Opportunities: Always looking for new ways to solve problems or improve situations. Example: Imagine you notice that street vendors in your barangay have difficulty attracting customers due to a lack of proper advertisement. Seeing this as an opportunity, you create a Facebook page and community group where vendors can post their products and locations, allowing more people to discover and support local businesses. 2. Taking Risks Beyond Security: Willing to step out of your comfort zone and take calculated risks, even if it means facing uncertainty. Example: Leaving a stable job in a corporate office to open your own café in Manila because you believe in your unique concept and coffee recipes, much like how many successful Filipino entrepreneurs started their ventures despite the risks. 3. Having Tenacity: Persistently working towards your goal despite challenges and setbacks. Example: Manny Pacquiao faced numerous defeats early in his boxing career. Despite these setbacks, his tenacity and dedication to training led him to become one of the greatest boxers in history, earning multiple world championships in different weight classes.  In the book of Kuratko, an integrated definition states that entrepreneurship is a dynamic process of vision, change, and creation. 1. Vision: Having a clear idea of what you want to achieve in the future. Example: Henry Sy envisioned a retail landscape in the Philippines where shopping malls would be community hubs offering more than just shopping, but also dining, entertainment, and social spaces. This vision led to the creation of SM Supermalls, transforming the retail experience in the country. 2. Change: Being willing to adapt and innovate to make your vision a reality. Example: Jollibee started as an ice cream parlor in the Philippines. Recognizing the potential of offering Filipino-style fast food, the company adapted its business model to focus on burgers, chicken, and other local favorites, eventually becoming a global fast-food giant. 3. Creation: Bringing something new into existence that adds value. Example: Kenneth Cobonpue, a renowned Filipino industrial designer, created innovative furniture that combines modern design with traditional Filipino craftsmanship. His unique pieces, made from natural materials like rattan and bamboo, have gained international acclaim and added value to the global design industry.  Kuratko further said that “entrepreneurship is the new revolution. It is about disruptive innovation and creativity. The future of the word economy. The words to describe the new innovation today are dream, create, explore, invent, and imagine” 1. Disruptive Innovation: Introducing products or services that profoundly alter conventional practices. Example: Grab shook up the transportation sector by offering a mobile app for booking rides, challenging the dominance of traditional taxi services and providing a more accessible and cost-effective option. 2. Creativity: Pioneering unconventional approaches to devise novel solutions. Example: Jollibee displayed creativity by blending Filipino flavors with Western fast-food concepts, revolutionizing the global fast-food landscape and captivating diverse palates worldwide. 3. Dream: Envisioning ambitious and far-reaching aspirations. Example: Manny Pacquiao dreamed of becoming a world champion boxer despite humble beginnings, inspiring millions with his journey from poverty to international acclaim and success. 4. Create: Innovating to bring forth groundbreaking concepts or technologies. Example: The creation of Mang Inasal by Edgar Sia introduced a novel dining experience centered around affordable, flavorful grilled chicken, resonating with Filipino taste preferences and becoming a household name nationwide. 5. Explore: Venturing into uncharted territories and experimenting with novel ideas. Example: Max’s Restaurant, originally a humble cafe in Quezon City, explored franchising opportunities and diversified its menu, evolving into a globally renowned Filipino dining destination with branches worldwide. 6. Invent: Pioneering advancements through the development of new technologies or products. Example: The invention of the yo-yo by Pedro Flores showcased Filipino ingenuity on the global stage, popularizing the timeless toy and sparking a worldwide craze that endures to this day. 7. Imagine: Conceiving innovative visions for transformative change. Example: Jose Rizal envisioned a liberated Philippines through his literary works and revolutionary ideas, inspiring a nation to strive for independence and shaping the course of Philippine history. ESSENTIAL COMPONENTS OF ENTREPRENEURSHIP 1. Willingness to Take Calculated Risks: This trait is exemplified by the readiness to invest time, money, or effort into a venture despite the possibility of failure. Example: In the Philippines, Mang Inasal's founder, Edgar Sia, took a calculated risk by starting a small barbecue restaurant in Iloilo City. Despite initial challenges, his venture grew into a nationwide chain, showcasing his willingness to take calculated risks. 2.Ability to Formulate an Effective Venture Team: This skill involves assembling a group of individuals with the right expertise to bring your idea to life. Example: When Henry Sy Sr. established SM Investments Corporation, he formed an effective venture team composed of experts in retail, real estate, and finance. Their collective efforts propelled SM into one of the largest conglomerates in the Philippines. 3.Creative Skill to Marshal Needed Resources: This capability entails creatively sourcing and utilizing resources essential for launching your venture. Example: Gawad Kalinga, a Philippine-based NGO, creatively marshaled resources to build sustainable communities for marginalized families. Through partnerships and volunteerism, they transformed vacant lots into thriving neighborhoods. 4.Fundamental Skills of Building a Solid Business Plan: This skillset encompasses the ability to craft a comprehensive plan detailing your business operations, revenue streams, and growth strategies. Example: When Tony Tan Caktiong founded Jollibee, he meticulously crafted a solid business plan that emphasized local flavors and affordable meals. This strategic approach propelled Jollibee to become one of the largest fast-food chains in the Philippines and beyond. 5. Vision to Recognize Opportunity Where Others See Chaos, Contradiction, and Confusion: This trait involves the ability to identify opportunities amidst challenging circumstances. Example: During the aftermath of Typhoon Haiyan, Gawad Kalinga saw an opportunity to rebuild communities using sustainable and resilient housing solutions. This vision led to the development of GK villages that provided hope and stability to affected families.  To have a better perspective on entrepreneurship, let us look into this contribution by the Commission Communication “Fostering entrepreneurial mindsets through education and learning” COM(2006). “Entrepreneurship refers to an individual’s ability to turn ideas into action. It includes (1) creativity, (2) innovation and (3) risk taking, as well as the ability to (4) plan and manage projects in order to achieve objectives. This supports everyone in (5) day-to-day life at home and in society, makes employees more aware of the context of their work and better able to seize opportunities, and provides a (6) foundation for entrepreneurs establishing a social or commercial activity.” The Commission Communication "Fostering entrepreneurial mindsets through education and learning" (COM(2006)) defines entrepreneurship as the ability to turn ideas into action.  Example: Canva ▪ Creativity: Canva, a graphic design platform, allows users to create professional-quality designs easily. ▪ Innovation: It introduced simple drag-and-drop tools and a wide range of templates, making design accessible to non-designers. ▪ Risk-Taking: Founders Melanie Perkins, Cliff Obrecht, and Cameron Adams risked their time and resources to develop and market a new design tool. ▪ Planning and Managing Projects: They planned the development, launch, and scaling of Canva meticulously, securing funding and building a solid business strategy. ▪ Daily Life and Work: Canva helps individuals and businesses create presentations, social media graphics, and marketing materials, enhancing productivity and creativity in everyday tasks. ▪ Entrepreneurial Foundation: Canva supports millions of users worldwide, showcasing how turning an innovative idea into a practical tool can have a significant social and commercial impact. MYTHS OF ENTREPRENEURSHIP: DONALD KURATKO To have a good grasp of entrepreneurship, we need to dispel misconceptions that were created due to lack of research in the past. Donald Kuratko, a renowned scholar in the field of entrepreneurship, has contributed significantly to debunking several myths surrounding entrepreneurship. Myth 1: Entrepreneurs Are Doers, Not Thinkers Entrepreneurs are actually doers at the same time that they are thinkers. We need entrepreneurs who lead us with clear vision and serve as role models in achieving the company’s aims and purposes. “Thinking entrepreneurs are equally important as doing entrepreneurs” Elon Musk is a prime example. He envisioned a future with sustainable energy and space exploration (thinking) and then founded companies like Tesla and SpaceX to turn those visions into reality (doing). His ability to think deeply about big ideas and act on them demonstrates the dual nature of successful entrepreneurship. Myth 2: Entrepreneurs Are Born, Not Made Entrepreneurs are either born or made. There are innate traits that entrepreneurs are born with. Likewise, there are models and processes that need to be studied and knowledge that are to be acquired; hence, the purpose why entrepreneurship is taught. In the Philippines, one example of a company that highlights the concept of entrepreneurs being made through learning and acquiring knowledge is Goldilocks Bakeshop. Founded by the Filipino entrepreneur Milagros Leelin Yee and her family, Goldilocks started as a small bakery in Manila in 1966. Milagros Leelin Yee didn't have a formal education in baking or business management but had a passion for cooking and an entrepreneurial spirit. Despite lacking formal training, Milagros Leelin Yee and her family learned through experience, trial and error, and by studying successful bakery models. They continuously innovated their recipes, product offerings, and business strategies to meet the demands of their customers. Over time, Goldilocks Bakeshop grew from a small neighborhood bakery into one of the leading bakery chains in the Philippines, known for its delicious cakes, pastries, and Filipino delicacies. The success of Goldilocks exemplifies how entrepreneurship can be taught and cultivated through hands-on experience, learning from others, and continuous improvement. Myth 3: Entrepreneurs Are Always Tech Ventures. Not all entrepreneurs are involved in the tech industry. Entrepreneurship covers more than just tech innovation—it requires a complete understanding of innovative behaviors in all forms. In the Philippines, one example that dispels the myth that entrepreneurs are always involved in the tech industry is the story of Gourmet Farms. Founded by Jose "Boy" Logro and Marivic Dubria, Gourmet Farms began in 1987 as a small coffee plantation in Silang, Cavite. While Gourmet Farms utilizes technology in its agricultural processes, such as modern irrigation systems and eco-friendly farming techniques, its core business is centered around coffee production, agri-tourism, and organic farming. The founders did not necessarily have a background in technology but instead focused on innovative practices in agriculture and sustainable farming methods. Through their dedication to quality and innovation in the agricultural sector, Gourmet Farms has grown into one of the leading coffee producers and agri-tourism destinations in the Philippines. Their success showcases that entrepreneurship extends beyond the tech industry and can thrive in various sectors with a comprehensive understanding of innovative behaviors and practices. Myth 4: Entrepreneurs Are Academic and Social Misfits Not all drop outs are successful entrepreneurs; not all successful entrepreneurs are drop outs. Likewise, entrepreneurs are recognized in and by society due to their enormous contributions. Today, entrepreneurs are considered as heroes – socially, economically and academically. Entrepreneurship is viewed as a professional role model. In the Philippines, one example that disproves the myth that entrepreneurs are academic and social misfits is the story of Tony Tan Caktiong, the founder of Jollibee Foods Corporation. Tony Tan Caktiong graduated with a degree in Chemical Engineering from the University of Santo Tomas (UST) in Manila, Philippines. Instead of pursuing a career in engineering, Tony Tan Caktiong ventured into entrepreneurship by starting an ice cream parlor in 1975 with his family's support. Through hard work, dedication, and innovative business strategies, the small ice cream parlor eventually evolved into Jollibee, now the largest fast-food chain in the Philippines. Tony Tan Caktiong's success demonstrates that entrepreneurs can come from diverse academic backgrounds and still make significant contributions to society and the economy. Today, he is widely recognized not only for his entrepreneurial achievements but also for his philanthropic efforts and contributions to the community, making him a respected figure and role model in Filipino society. Myth 5: Entrepreneurs Must Fit the “Profile” There is no such profile of an entrepreneur. Entrepreneurs are as varied as they come. Oprah Winfrey, with her background in media, became a successful entrepreneur by founding OWN (Oprah Winfrey Network) and other ventures. This shows that entrepreneurs can emerge from any field, not just those traditionally associated with business. Myth 6: All Entrepreneurs Need Is Money We need ideas to start with an entrepreneurial undertaking, not only money. There are other factors contributing to the failure of a business, such as poor financial planning, managerial incompetence, poor investments and poor planning. Blake Mycoskie's founding of TOMS Shoes exemplifies how a simple idea, coupled with a strong mission and effective planning, can lead to entrepreneurial success beyond just financial backing. Firstly, Mycoskie's idea of the "One for One" model, where for every pair of shoes sold, TOMS would donate a pair to a child in need, resonated deeply with consumers. This mission-driven approach not only differentiated TOMS Shoes from other footwear brands but also appealed to socially conscious consumers who wanted to make a positive impact through their purchases. Secondly, Mycoskie's success with TOMS Shoes was not solely reliant on funding. While financial resources were necessary for operations and growth, what truly propelled TOMS Shoes to success was effective planning and management. Mycoskie and his team meticulously planned their business strategy, including sourcing materials ethically, streamlining production processes, and establishing distribution channels. Additionally, they implemented sound management practices to ensure efficient operations and maintain quality standards. Furthermore, Mycoskie's ability to effectively communicate TOMS Shoes' mission and values to consumers and stakeholders played a crucial role in the brand's success. By leveraging storytelling and marketing campaigns, TOMS Shoes created a strong emotional connection with its audience, inspiring them to become advocates for the brand and its cause. Overall, Blake Mycoskie's entrepreneurial journey with TOMS Shoes demonstrates that while funding is important, it is not the sole determinant of success. A clear mission, effective planning, and management are equally, if not more, crucial factors in building a successful and impactful business. Myth 7: All Entrepreneurs Need Is an Idea Ideas and ideation are important in entrepreneurship but not the only thing that makes an entrepreneur successful. Comprehension and acting upon the entire entrepreneurship process are needed to be successful. “Learning the process of entrepreneurship makes entrepreneurs better prepared to face on situations and turn them into success”. Needs the combination of preparation, determination, desire, knowledge and innovativeness. Howard Schultz's journey with Starbucks exemplifies how vision, preparation, and the ability to scale a business are essential elements of entrepreneurial success. Schultz didn't merely have the idea for Starbucks; he had a vision of creating a unique coffee experience that would transcend the traditional café culture in America. His vision centered around creating a "third place" between home and work where people could gather, socialize, and enjoy high-quality coffee. However, Schultz's success with Starbucks was not solely based on his vision. He also demonstrated meticulous preparation and planning. Schultz traveled to Italy, where he was inspired by the café culture, and brought back the concept of espresso bars to the United States. He carefully studied the market and identified opportunities to introduce specialty coffee to American consumers. Furthermore, Schultz's ability to scale the business was instrumental in Starbucks' global expansion. He implemented strategic initiatives such as franchising, licensing, and international expansion, all while maintaining the brand's reputation for quality and customer experience. Schultz's leadership and management skills were crucial in navigating challenges and seizing opportunities for growth. Myth 8: Entrepreneurship Is Unstructured and Chaotic Entrepreneurs are assumed to be disorganized and unstructured. In reality, entrepreneurs are involved in all areas of their business. They are organized and have a system. Their system may look like strange to casual observers but their system works. Jeff Bezos' meticulous planning and smart logistical methods disprove the misconception that entrepreneurship is chaotic. From the start, Bezos understood the need of careful planning and execution for a successful and scalable firm. He prioritized convenience, choices, and service for customers. Amazon's growth from an online bookshop to a varied e-commerce platform with many products and services was led by this strategic goal. Innovative logistical methods are fundamental to Amazon's success. To improve efficiency and operations, Bezos built substantial infrastructure like fulfillment centers, distribution networks, and innovative technology. Amazon's pioneering data analytics and automation improved logistics, speeding delivery and improving customer happiness. Amazon also encouraged innovation and experimentation under Bezos. He urged staff to dream big, take risks, and innovate to develop and improve customer service. Amazon Prime, Kindle e-readers, and Amazon Web Services (AWS) were created with an entrepreneurial mindset, revolutionizing multiple industries and making Amazon one of the world's most valuable firms. Jeff Bezos' structured approach to building Amazon with detailed planning and innovative logistics systems defies the myth of chaos in entrepreneurship and emphasizes the importance of strategic vision, execution excellence, and continuous innovation in scaling up entrepreneurship. Myth 9: Most entrepreneurial initiatives fail Kauffman reported in 2021 that around 78.1% of start-up firms had survived one year after their founding recent studies showed that new ventures do not fail on an alarming rate. Kauffman Foundation estimates that 78.1% of entrepreneurs survive their first year, challenging the belief that most fail. Startup resiliency reveals many key factors in their success. Many entrepreneurs today have resources, guidance, and funding. Entrepreneurial centers, incubators, accelerators, and networking events help startups survive. Technology has also democratized entrepreneurship, making business startup and growth easier. E-commerce platforms, cloud computing, and digital marketing technologies help entrepreneurs reach global customers, test ideas fast, and adapt to changing markets. Entrepreneurship now values agility, adaptability, and originality. Successful startups react quickly to market changes and opportunities by learning, experimenting, and being customer-centric. Startups can now raise funds via crowdsourcing, angel investors, and venture capital to continue development and operations after the first year. Startups' high survival rate reflects entrepreneurs' persistence, adaptability, and innovation in today's dynamic business climate. Entrepreneurship is risky, yet statistics reveal that new ventures are more resilient than assumed, creating a global entrepreneurial ecosystem. Myth 10: Entrepreneurs Are Extreme Risk Takers. Entrepreneurs are calculated or moderate risk takers; neither low risk taker nor high risk taker (gambler). As a moderate risk taker, the entrepreneur weigh chances of failure or success before taking action. Reed Hastings, co-founder of Netflix, took calculated risks by transitioning from DVD rentals to streaming, analyzing market trends and consumer behavior before making the move. Myth 11: The Unicorn Fallacy There are groups of unicorns on the rise. In 2023, more than 1,143 ventures have been valued at $1B. But there are those that have reached the decacorn—achieving $10B level. Such as Facebook, Uber, and Airbnb. As of 2023, companies like Facebook, Uber, and Airbnb have become decacorns, showing that highly valuable startups are more common than often assumed. ENTREPRENEURIAL SCHOOLS OF THOUGHT The schools of thought provide us with perspectives on what factors influence one to entertain entrepreneurial thoughts; factors that relate to the success or failure of entrepreneurial ventures. THERE ARE TWO VIEWPOINTS – THE MACRO AND THE MICRO VIEWS. MACRO VIEW: The macro view of entrepreneurship includes external factors that are beyond the control of the entrepreneur, but could affect him/her. The macro view of entrepreneurship involves external factors that are beyond the entrepreneur's control but can significantly influence their business. In the Philippines, several external factors such as economic conditions, political stability, socio- cultural trends, technological advancements, and environmental changes play a crucial role in shaping the entrepreneurial landscape. Here are a few concrete examples of businesses or entrepreneurs in the Philippines, along with the macro factors affecting them: 1. Jollibee Foods Corporation - Business Type: Fast food - Macro Factors: ❖Economic Conditions: The company's performance is closely tied to the purchasing power of consumers. Economic downturns or high inflation rates can reduce disposable income, affecting sales. ❖Political Stability: Government policies on taxation, labor laws, and food safety regulations can impact operations and profitability. ❖Socio-Cultural Trends: Changes in dietary preferences and increasing health consciousness among consumers can influence menu offerings and marketing strategies. ❖Technological Advancements: Adoption of digital technologies for ordering, delivery, and customer engagement is crucial for staying competitive. 2. PLDT Inc. - Business Type: Telecommunications - Macro Factors: ❖Economic Conditions: Economic growth can drive demand for telecommunications services, while economic slowdowns might lead to reduced spending on non-essential services. ❖Regulatory Environment: Government regulations on telecommunications, including pricing and competition policies, can significantly impact operations. ❖Technological Advancements: Rapid technological changes require continuous investment in infrastructure and services to meet consumer demands. ❖Global Competition: International market trends and competition can affect strategic decisions and market positioning. 3. Ayala Corporation - Business Type: Conglomerate (real estate, banking, telecommunications, water, etc.) - Macro Factors: ❖Economic Conditions: The conglomerate's diverse portfolio means it is affected by various economic indicators such as GDP growth, interest rates, and foreign exchange rates. ❖Political Stability: Government policies across different sectors (e.g., real estate, banking) can influence the corporation's strategic decisions and investments. ❖Environmental Changes: Sustainability and environmental regulations impact the corporation’s infrastructure and real estate developments. ❖Socio-Cultural Trends: Changes in consumer behavior, such as shifts towards digital banking or sustainable living, require adaptive strategies across its business units. 4. Gcash (operated by Mynt) - Business Type: Fintech - Macro Factors: ❖Economic Conditions: Economic inclusivity and the growth of the digital economy boost demand for fintech solutions, while economic hardships might increase default rates on digital loans. ❖Regulatory Environment: Financial regulations, cybersecurity laws, and data privacy policies can affect operations and service offerings. ❖Technological Advancements: Continuous innovation in digital payment technologies and cybersecurity is essential to maintain a competitive edge. ❖Socio-Cultural Trends: Increasing adoption of digital payments and online transactions drives growth, but also requires educating a diverse population on fintech usage. 5. SM Investments Corporation - Business Type: Retail, Real Estate, Banking - Macro Factors: ❖Economic Conditions: Consumer spending power directly affects retail and real estate sales. Economic stability encourages investments and expansions. ❖Political Stability: Policies on retail trade, real estate development, and financial services impact the corporation’s strategic planning and compliance requirements. ❖Environmental Changes: Climate change and environmental regulations affect real estate development plans and operational sustainability efforts. ❖Socio-Cultural Trends: Shifts towards e-commerce, changing lifestyle preferences, and demographic trends influence business strategies across retail and real estate segments. THE ENVIRONMENTAL SCHOOL OF THOUGHT Considers the external factors that influence a potential entrepreneur’s lifestyle. These could be positive or negative factors that mold the entrepreneur’s entrepreneurial desires. Example, the pandemic situation may influence one to be an entrepreneur. THE FINANCIAL SCHOOL OF THOUGHT Based on the capital-seeking process — the search for seed and growth capital. Availability of funds needed for potential business venture may influence one to be an entrepreneur. THE DISPLACEMENT SCHOOL OF THOUGHT Alienation drives entrepreneurial pursuits. Displacement focuses on the negative factors. Frustrations will drive you to your entrepreneurial pursuits. Political displacement. Examples are governmental regulations or policies that limit certain industries, causing job displacement and turning toward entrepreneurship. Cultural displacement. Examples are ethical background, religion, race and sex factors that drive people away from standard professions and toward entrepreneurial ventures. Economic displacement. Economic variations of recession and depression can create the foundation for entrepreneurial interest. Example is the loss of their job during this pandemic, which prompted some to be entrepreneurial. MICRO VIEW. The micro view of entrepreneurship examines the factors that are specific to entrepreneurship. 1. Beanleaf Coffee and Tea ▪ Entrepreneur: Founders or franchisees of Beanleaf Coffee and Tea outlets ▪ Micro Factors: Business Idea: The uniqueness of the coffee and tea offerings, as well as the ambiance and customer experience, contribute to the success of each outlet. Entrepreneurial Skills: The ability of the founders or franchisees to manage operations, marketing, finance, and customer service effectively is crucial. Market Research: Understanding local consumer preferences and competition helps in positioning the business and developing targeted marketing strategies. Networking: Building relationships with suppliers, customers, and local communities can provide valuable support and opportunities for growth. 2. Sari-Sari Store ▪ Entrepreneur: Owners of neighborhood sari-sari stores ▪ Micro Factors: Location: Choosing the right location with high foot traffic and demand for convenience products is essential. Inventory Management: Effective inventory management, including stock selection, pricing, and replenishment, influences profitability. Customer Service: Providing friendly and personalized service can help build customer loyalty and word-of- mouth referrals. Financial Management: Managing cash flow, expenses, and profits to ensure sustainability and growth. 3. Online Clothing Boutique ▪ Entrepreneur: Owners of an online clothing boutique on platforms like Instagram or Facebook ▪ Micro Factors: Product Selection: Curating a unique collection of clothing items that resonate with the target market's preferences and fashion trends. Social Media Marketing: Utilizing social media platforms effectively for promotion, engagement, and customer interaction. E-commerce Skills: Managing online storefronts, handling orders, payments, shipping, and customer inquiries efficiently. Branding and Storytelling: Building a brand identity and storytelling that connects with customers on an emotional level can differentiate the boutique from competitors. 4. Food Truck Business ▪ Entrepreneur: Owners of a food truck serving specialty dishes in urban areas ▪ Micro Factors: Menu Innovation: Offering unique and high-quality food items that cater to the tastes and preferences of urban customers. Mobile Marketing: Utilizing social media, location-based advertising, and partnerships to attract customers to different locations. Operational Efficiency: Managing food preparation, inventory, staffing, and vehicle maintenance to ensure smooth operations. Customer Feedback and Adaptation: Listening to customer feedback and adapting the menu or service based on preferences and market trends. 5. Freelance Graphic Design Business ▪ Entrepreneur: Freelance graphic designer offering design services to clients ▪ Micro Factors: Portfolio Development: Building a strong portfolio showcasing past work and creative abilities to attract clients. Networking and Marketing: Leveraging social media, online platforms, and personal connections to find clients and projects. Time Management: Balancing multiple projects, deadlines, and client communications efficiently. Continuous Learning: Staying updated with the latest design trends, software tools, and industry best practices to deliver high-quality work. THE ENTREPRENEURIAL TRAIT SCHOOL OF THOUGHT Focuses on identifying traits common to successful entrepreneurs. Believing that entrepreneurs have traits common to them and that if you have these traits, you could be a successful entrepreneur might prompt you to be an entrepreneur. THE VENTURE OPPORTUNITY SCHOOL OF THOUGHT Focuses on the opportunity aspect of venture development. The more idea sources and resources that are available for the development of business concepts and their implementation to take advantage of venture opportunities, the more people are motivated to be entrepreneurs. THE STRATEGIC FORMULATION SCHOOL OF THOUGHT Emphasizes the planning process in successful venture management and development. Involves establishing a business venture with all its internal factors aligned with each other and with the external forces as the entrepreneur pursues the venture’s vision and mission, its dream and purpose.