Entrepreneur Mind - Lesson 1: A Perspective Entrepreneurship

Entrepreneur

 is one who organizes, manages, and assumes the risks of a business or enterprise.

5 Characteristics of Entrepreneur

1. Motivation
2. Passion
3. Vision
4. Confidence
5. Decision Making

Motivation

you are by nature motivated. you put in long hours to get your ventures off of the ground and invest everything you have to pursue your dreams

Passion

you tend to be more driven by a passion for your offering as well as by a desire to make a difference

Vision

you have a clear vision as to what you want to achieve, how you can accomplish your objectives, and whom you need on your side to reach your goals

Confidence

you are confident both in yourself and in the products or services you sell

Decision Making

you not only have good decision making skills but also have the capacity to make those decision quickly in order to avoid missing opportunities

motivates an entrepreneur

- Money ( a lot of money) if often assumed to be a top motivator for entrepreneurs.
- successful entrepreneur are driven by much more than financial gain

Economic development

a scheme aimed at improving the living standards of the nation's citizenry

Entrepreneurship and economic development

- human resources
- natural resources
- capital formation
- technology

Entrepreneurship

Refers to the economic activity of a person who starts, manages, and assumes the risk of a business enterprise

Entpreneur

it identifies an economic need, considers offering business solutions, proceeds to assemble the resources requires, and assumes the risk of either succeeding or failing

Entrepreneur's task

- products and services for customer and producers
- employment
- taxes
- demand for suppliers' products and services
- training facilities for future entrepreneurs

Products and services for customers and producers

- an inspection of the array of products offered for sale in a typical supermarket reveals a wide choice provided to the consumer
- services that were not previously available are now at the back and call of the consumer

Employement

- a review of the statistical reports prepared by the government shows that business organized by entrepreneurs employs millions of people

Taxes

it is paid to the government in the form of licenses, fees, permits applicable to the enterprises as well as income taxes applicable to the employees and entrepreneurs, easily amount to billions of pesos

Demand for suppliers product and services

the entrepreneurs also make sure that the suppliers will have a ready market for their foods and services

Training facilities for future entrepreneur

- business enterprises provide a training ground for future entrepreneurs
- several entrepreneurs were former employees of enterprising persons

To make profit, the entrepreneur perform the following specific funtions

- to supply the necessary capital
- to organize production by buying and combining inputs like materials and labor
- to deicide on the rate of output
- to bear risk

Innovation

- defined as the introduction of a new method, procedure, custom or device among others.
- if it must be made successful, must provide value to the buyers over and above those offered by competitors
- it must reduce cost or improve the quality of products or services offered for sale

Pre start-up stage

- happens when the entrepreneur starts to question the feasibility of an idea, product or service
- this is a very important stage the the entrepreneur must consider

Start up stage

- formation of business
- generation of necessary capital
- purchase of facilities and equipment
- constructing prototypes
- testing the market

Early Growth Stage

- follows after establishing feasibility
- activities will be on small, selling to limited markets with limited resources

Late growth stage

- it is the final stage before the new venture matures into a stable enterprise
- this is also the stage where the skills of the entrepreneur are less needed

Rewards for successful entrepreneurship

- the use of any factors of production deserves to receives some form of compensation
- the factors referred to as "things required for making a commodity consist of land, labor, and capital
- when the land is used in production activities the owners of the land are paid a compensation called rent

rent

When the land is used in production activities the owners of the land are paid a compensation