Week 1-2 Introduction to Entrepreneurship PDF

WEEK 1- 2 INTRODUCTION TO ENTREPRENEURSHIP Objectives: At the end of this chapter, the learner will be able to: Define what an entrepreneur is; Identify the factors that develop entrepreneurial activities and successes; Elaborate the making of a Filipino entrepreneur and their...

WEEK 1- 2 INTRODUCTION TO ENTREPRENEURSHIP Objectives: At the end of this chapter, the learner will be able to: Define what an entrepreneur is; Identify the factors that develop entrepreneurial activities and successes; Elaborate the making of a Filipino entrepreneur and their profile; and Discuss the challenges in entrepreneurship CONCEPT NOTES “Opportunity comes from one person’s idea that influences others to take action.” ENTREPRENEURSHIP Entrepreneurship can be defined as a field of business that seeks to understand how opportunities to create something new (e.g., new products or services, new markets, new production processes or raw materials, new ways of organizing existing technologies) arise and are discovered or created by specific persons, who then use various means to exploit or develop them, thus producing a wide range of effects (Baron, Shane, & Reuber, 2008, p. 4). THE ENTREPRENEUR An entrepreneur can be described as “one who creates a new business in the face of risk and uncertainty to achieve profit and growth by identifying significant opportunities and assembling the necessary resources to capitalize on them” (Zimmerer & Scarborough, 2008, p. 5). An entrepreneur organizes, manages, directs, and assumes the risk of a business enterprise. Being an entrepreneur is a lifestyle or an attitude. It is not a calling for everyone, but rather a choice. The following questions help a potential entrepreneur guide himself or herself before setting up a new business. Yes or no is a highly recommended answer. 1. Am I a planner, dreamer, or a goal setter? 2. Do I offer a product that people want to buy? 3. Do I have enough resources to start a business? 4. Am I ready to assess and measure everything before putting it out for the public? 5. Do I have strong communication skills? 6. Do I enjoy making decisions and being in charge? 7. Am I good at short and long-range planning? 8. Am I flexible, and can adapt to changing circumstance? 9. Am I willing to take a calculated risk? 10. Am I ready to learn and accept the mistakes that I might encounter along the way? CHARACTERISTICS OF AN ENTREPRENEUR These are the specific skills: 1. Leadership and management abilities – the ability to plan and organize, direct, and control the organization towards the goals and objectives of the organization. 2. Positive risk takers – the ability to make things happen rather than wait the things to happen. 3. Self-confidence and positive outlook – the ability to have a strong belief in his capacity to make a difference in their chosen field. 4. Innovativeness and forward-looking – the ability to have the courage to make innovations in products or services. 5. Natural intelligence and decision-making skills – the most important requirement in making effective decisions. The ability to follow a logical process in making decisions. These are the behaviors and attitudes: 1. Opportunity seeking persistence 2. Persistence 3. Commitment to work 4. Demand for quality and efficiency 5. Risk-taking 6. Goal setting 7. Information seeking 8. Systematic planning and monitoring 9. Persuasion and networking THE ENTREPRENEURIAL SKILLS AND COMPETENCIES Entrepreneurial skills and competencies are the essential abilities and qualities that enable individuals to navigate the complex and dynamic world of entrepreneurship. These skills play a crucial role in driving business growth, managing challenges, and seizing opportunities effectively. These are the following: a. Negotiating - ability to engage in discussions and reach agreements with others. b. Planning - involves creating a roadmap for achieving business goals. c. Risk assessment - the skill of evaluating potential risks and uncertainties associated with business decisions, identifying potential threats, and developing mitigation strategies. d. Purchasing - involves the strategic procurement of goods or services necessary for business operations, focusing on quality, cost- effectiveness, and supplier relationships. e. Accounting - the ability to manage financial records, analyze data, create budgets, and make informed financial decisions to ensure the financial health and sustainability of the business.  f. Recruitment - involves identifying and attracting top talent to the organization, conducting interviews, assessing candidates, and building a skilled and motivated team. g. Training - the skill of developing and implementing training programs to enhance the skills and knowledge of employees, ensuring continuous learning and professional development. h. Selling - the ability to effectively promote products or services, communicate value propositions, address customer needs, and close deals to drive revenue and business growth. i. Controlling - involves monitoring business performance, tracking key metrics, identifying deviations from plans, and taking corrective actions to ensure business objectives are met. j. Dealing with emergencies - the skill of remaining calm under pressure, making quick and effective decisions in crises, and implementing contingency plans to address unexpected challenges or emergencies. The Entrepreneur as a Missionary An entrepreneur is a missionary who perceives opportunities inherent in exchanging goods with a great desire for profit. The Entrepreneur is Goal-Driven An entrepreneur is goal-driven and self-confident as he exercises the locus of control. The Entrepreneur is a Marketing Man An entrepreneur is a marketing man as he marshals his resources to pursue opportunities and takes immediate action to exploit his gain. The Entrepreneur Starts Small to Become Big An entrepreneur starts small but with their managerial talents and persistence, they exploit the opportunities available at their disposal. MANAGERIAL SKILLS THAT MAKE A SUCCESSFUL ENTREPRENEUR The entrepreneur has the following managerial skills: 1. The ability to plan and conceptualize An entrepreneur must be able to forecast the future by seeing to it that the risks involved are properly controlled. 2. The ability to organize the resources of the enterprise An entrepreneur must be able to give specific directions and work activities that will redound the efficient delivery of the necessary services to customers and clients. 3. The ability to direct and motivate people in his organization. An entrepreneur must be able to communicate ideas and plans to his subordinates with sense and humility. 4. The ability to control. An entrepreneur must safeguard and control the mechanism in the implementation stage.  5. The ability to manage time. An entrepreneur must be scheduled properly so that they will not complicate with important paperwork in the office. 6. The ability to adapt to the changing environment of business. An entrepreneur before launching into the field of business must look forward to the challenges of the entrepreneurial life. THE CHALLENGES IN ENTREPRENEURSHIP 1. The new entrepreneur must be a doer and willing to work hard until he achieves the task, he wants for himself. 2. Personal attention and awareness of the progress of the business are not trusted by other people. 3. The new entrepreneur must have a high sense of integrity he stands firm on his principles and ideals. 4. Emotional stability is an important factor in the making of an entrepreneur. 5. An entrepreneur must have a built-in self-starting mechanism. THE STARTING POINT TO ENTREPRENEURIAL SUCCESS 1. Start to be on your own. 2. Explore the business environment. 3. Be in control. 4. Have a good accountant or trusted financial adviser. 5. Seek the advice of professionals. THE DEVELOPMENT OF ENTREPRENEURSHIP The Making of a Filipino Entrepreneur The making of a Filipino entrepreneur is a process of trial and error. The colonization of the Filipinos for more than 300 years is a great factor in the slow development of entrepreneurial activity in the country. Our concept of owning a small business like a sari-sari store a small tailoring shop, a repair shop, or a market distribution outlet already makes a person an entrepreneur. While this concept is true to a certain extent, entrepreneurship is more about being self-employed and making a living out of the meager income to support the family's needs and wants. Here are some of the most successful entrepreneurs: The Making of Jollibee Foods Corporation Tony Tan Caktiong, born in 1953, is the founder and chairman of Jollibee Foods Corporation, one of the world's fastest-growing Asian restaurant chains. His journey began in 1975 with a small ice cream parlor in Quezon City, which eventually evolved into the iconic Jollibee brand. Caktiong's entrepreneurial spirit, coupled with his understanding of Filipino tastes and preferences, played a crucial role in Jollibee's success. The Foundation of The National Bookstore Socorro Ramos, affectionately known as "Nanay Coring," is the matriarch of National Book Store, the Philippines' leading retailer of books, office supplies, and greeting cards. Her entrepreneurial journey began in 1942 with a small bookstore in Manila, a venture that faced numerous challenges, including World War II and natural disasters. The Jeepney King: Leonardo Sarao Leonardo Sarao, born in 1921, is widely recognized as the "Jeepney King" for his pioneering role in transforming the surplus jeeps left behind by the US military after World War II into the iconic jeepneys that are ubiquitous in the Philippines. ASSESSMENT Activity A. Name: __________________________________ Date: ____________ Year/Block: _____________________________ Direction: Based on the definitions and concepts given, formulate your definition of entrepreneur and entrepreneurship, as what you have understood in the lesson. ENTREPRENEUR ENTREPRENEURSHIP Assignment: 1 whole yellow paper Activity B. Name: __________________________________ Date: ____________ Year/Block: _____________________________ Direction: 1. Review the Lecture Notes: Pay close attention to the sections on "Characteristics of an Entrepreneur" and "Entrepreneurial Skills and Competencies." 2. Identify Key Characteristics: Based on the lecture notes, identify at least 5 key characteristics that you believe are essential for successful entrepreneurs. 3. Identify Key Competencies: Also, identify at least 5 key competencies that are crucial for entrepreneurs to possess. 4. Explain Your Choices: For each characteristic and competency, you identified, provide a brief explanation of why you believe it is essential for entrepreneurial success. 5. Personal Reflection: Reflect on your strengths and weaknesses about the characteristics and competencies you identified. Consider which areas you need to develop further to become a successful entrepreneur. 6. Goal Setting: Set at least 1 specific goal for personal development based on your reflection. This goal should focus on improving your strengths and addressing your weaknesses concerning the characteristics and competencies you identified. Example: Characteristic: Self-confidence Explanation: Self-confidence is crucial for entrepreneurs because it empowers them to take risks, overcome challenges, and believe in their abilities even when facing setbacks. Personal Reflection: I need to work on my self-confidence when presenting my ideas to others. Goal: Practice public speaking in front of small groups to improve my confidence in presenting my ideas. Submission: Submit your completed activity in a written format. August 22, 2023 – Thursday