ENTREP 2.1 SUMTEST

REVIEWER

Entrepreneurship

The modern definition of entrepreneurship emphasizes creating, organizing, and operating a new business venture to generate profit while taking on financial risk. The word "entrepreneur" came from the French word "entreprendre," which means "to undertake."

Tradespeople

Traveling merchants and artisans during the Middle Ages who would visit different kingdoms to offer goods and services in exchange for payment, playing an essential role in the economy of the time.

Entrepreneurs

are people who take on the risks and challenges of starting new businesses. They introduce new goods, services, or concepts to the market to make a profit.

Employment Creation

Entrepreneurs frequently hire employees to help with various tasks and responsibilities when launching their businesses. As a result, employment increases and unemployment declines, which can benefit the economy as a whole.

Economic Development

Entrepreneurial businesses drive economic growth by expanding operations, investing in state-of-the-art technology and equipment, and strengthening the workforce. These factors are all vital in contributing to a country's overall prosperity.

Technological Advancement

Entrepreneurs often bring new ideas and products that change how people live. These innovations range from groundbreaking technologies to more efficient and effective business models.

Market Dynamics

The emergence of new competition may expand the options accessible to consumers and result in the provision of better goods and services at cheaper costs.

Socio-Cultural Changes

Entrepreneurs are taking the initiative to tackle social and cultural challenges by creating innovative, effective, and sustainable business solutions instead of relying on the government or big businesses to take action.

Agripreneurship

deals with the production and selling of various agricultural goods and inputs. The most profitable agribusiness ideas include crop cultivation, production and processing, aquaculture, animal health and feeds, agro-bio products, biotechnical service, energy-saving, and ecological agro-production systems.

Buyer Entrepreneurship

involves business individuals who possess substantial capital and utilize it to acquire established companies or merge with smaller businesses. These acquired companies or small businesses have an established brand, customer base, and approved revenue-generating activities.

Ecopreneurship

involves people who want to create a "green" business. It comes with opportunities to save the Earth while making a good profit.

Imitator Entrepreneurship

creates a business by copying or adapting an existing business concept or a successful product or service in the market.

Intrapreneurship

is the act of being an entrepreneur within a company or organization. It involves taking risks, being innovative, and developing new ideas to improve the company's products or services.

Large Business Entrepreneurship

involves taking calculated risks to develop new market offerings to remain competitive and better respond to changing markets and customer needs.

Scalable Startup Entrepreneurship

involves launching a small-scale enterprise intending to quickly expand and transform into a highly lucrative company. It is focused on disruptive innovation and can continue or renew itself indefinitely.

Small Business Entrepreneurship

involves starting a business on a smaller scale rather than expanding it into a large corporation or opening multiple branches. It is easy to manage because it employs minimal employees or is often just a one-person team.

Social Entrepreneurship

focuses on innovating and creating novel solutions to address pressing social issues. Thus, they play an essential role in having innovative approaches to social issues, such as poverty, education, and healthcare.

Technopreneurship

solves complex business problems and brings uniqueness and novelty to the business process by combining entrepreneurial skills and technology.

Small, Medium, and Micro-sized Enterprises (SMME)

are any business activity or enterprise engaged in industry, agribusiness, and services, whether single proprietorship, cooperative, partnership, or corporation, whose total assets are inclusive of those arising from a loan but exclusive of the land on which the business is situated.

Micro Enterprise Capital Requirement

Less than $P50,000$

Cottage Enterprise Capital Requirement

$P50,001$ to $P500,000$

Small Enterprise Capital Requirement

$P500,001$ to $P5,000,000$

Medium Enterprise Capital Requirement

$P5,000,001$ to $P20,000,000$

Sole Proprietorship

It is initiated, organized, owned, and managed by a single person.

Partnership

Two (2) or more partners who co-own a business to make a profit.

Corporation

Exist in contemplation of law; the business has its own identity separate and distinct from stockholders.

Cooperative

A duly registered group of persons with a common interest to voluntarily join to achieve a lawful social and economic end.

Entrepreneurial Motivation

refers to an entrepreneur's drive to continue engaging in entrepreneurial activities. Entrepreneurial behavior can encompass a variety of actions, such as taking risks, identifying new opportunities, and pursuing innovation.

Extrinsic Motivation

It is about motivating individuals to complete a task by offering rewards such as money, gifts, or treats. However, this type of motivation fades away when the reward is absent or not at par with their interest.

Intrinsic Motivation

People do the task at hand because they are passionate about the business.

Achievement Motive

Have a strong motivation to succeed, achieve greatness, and conquer any difficulties and hurdles in the quest for objectives.

Power Motive

The desire for control, influence, and the ability to impact others and change circumstances.

Affiliation Motive

The act of pursuing, upholding, or revitalizing an emotional connection with others.

Idea Generation

I is the creative process of generating new methods to solve problems and improve the product's or company's conditions. It is based on factors like idea development, group discussions, choosing the best alternative, and implementing the idea in real-world scenarios. The idea does not need to be practical but can also be a mere thought.

Dreamer Stage

In this stage, ideas can flow freely without fear of criticism or judgment from others. It encourages individuals to explore new possibilities, breaking free from the constraints of conventional thinking.

Designer Stage

It provides an opportunity to analyze ideas and explore their feasibility.

Detailer Stage

In this stage, potential problems are thoroughly looked for and identified. This step is crucial in ensuring that all aspects of the project have been considered and addressed before executing the plan. Identifying potential problems early on can save time, money, and resources in the long run.

Entrepreneurial Mind Frame

The entrepreneurial mind frame equips the entrepreneur to be optimistic during a crisis. Even if entrepreneurs are aware that businesses are risky, they do not get easily discouraged.

Entrepreneurial Heart Flame

shows the passion of an entrepreneur in fulfilling their vision and mission. Entrepreneurs devote themselves to the venture they decide to pursue.

Entrepreneurial Gut Game

exhibits an entrepreneur's intuitive side. Entrepreneurs have a good sense of whether something will work without necessitating logical, systematic, and sequential thinking. It brings out the confidence and courage of an entrepreneur.

Ideation

is an essential process that involves the creation and development of ideas. It is a critical element of the creative problem-solving approach, allowing individuals to explore different possibilities and alternatives.

Opportunity Seeking

Entrepreneurs create value by introducing the latest market offerings or finding new solutions to existing daily problems of consumers by studying emerging trends and patterns while simultaneously examining particular groups of customers in the market.

Relevance (12 Rs)

Entrepreneurs should aim for an opportunity that aligns perfectly with their business's vision, mission, and goals, ensuring a solid foundation for success.

Resonance (12 Rs)

The opportunity should be perfectly harmonious with the values and virtues that the entrepreneur desires for the business.

Reinforcement of Entrepreneurial Interests (12 Rs)

Entrepreneurs should seize opportunities that perfectly match their interests, talents, and skills.

Revenues (12 Rs)

Verify if the products or services possess a market with substantial potential for growth and sales.

Responsiveness (12 Rs)

The opportunity should effectively meet the needs and desires of customers.

Reach (12 Rs)

Entrepreneurs should use opportunities to grow their businesses by creating branches, franchises, distributors, and dealerships. This will help them achieve consistent and ongoing growth.

Range (12 Rs)

Opportunities abound for creating a wide range of products and services to meet the diverse needs of various markets.

Revolutionary Impact (12 Rs)

The entrepreneur must visualize the business as a revolutionary force of the future.

Returns (12 Rs)

The opportunity should offer a low initial investment with the potential for substantial returns upon selling at a higher price.

Relative Ease of Implementation (12 Rs)

Entrepreneurs should find it simple to seize this opportunity, as there are only a few obstacles to overcome.

Resources Required (12 Rs)

Entrepreneurs should choose opportunities that require fewer resources.

Risks (12 Rs)

Entrepreneurs should be able to recognize high-risk opportunities with clarity and confidence.

Opportunity Seizing

is the ultimate step in planning for a successful business venture. Entrepreneurs should learn from other businesses' successes and failures to identify the key factors contributing to success.

PESTEL Analysis

This tool helps identify the external forces that can positively and negatively impact the business (Political, Economic, Social, Technological, Legal, Environmental).

Competitor Analysis

Conducting a competitive analysis is a crucial component of any successful business plan. By studying the competition, the entrepreneur can develop effective strategies to rival and secure a significant share of the competitors' markets. The entrepreneur should classify its competitors into direct and indirect groups to conduct a thorough analysis.

SWOT Analysis

is usually performed before the enterprise is in operation. Strengths and weaknesses are Internal factors, while opportunities and threats are external.

Strengths (SWOT)

refer to the internal factors within an organization that give it a competitive advantage or contribute to its success. These could include a strong brand reputation, a dedicated and skilled workforce, a superior product or service offering, efficient operations, an extensive distribution network, or unique technological capabilities.

Weaknesses (SWOT)

refers to internal factors or characteristics of a business or individual that put them at a disadvantage or undermine their overall performance. It represents areas where the entity may lack skills, resources, or competitive advantages, which could impede its ability to achieve its goals.

Opportunities (SWOT)

refer to external factors that have the potential to positively impact an organization's performance or strategic objectives. They are favorable conditions or trends in the external environment that the organization can leverage to its advantage.

Threats (SWOT)

refer to external factors or challenges that may impede the success or progress of a business or project. They can negatively impact the performance or competitiveness of an organization.

Business Innovation

Although "business ______" is often used to describe technology, the real meaning of business innovation is increasing income. The main benefit of innovation is that it increases business income and enhances the bottom line.

Process Innovation

is a change in how a product or service is manufactured, created, or distributed to achieve greater efficiency.

Product or Service Innovation

involves creating and implementing new ideas, concepts, or technologies to enhance customer value and differentiate a company’s market offerings.

Disruptive Innovation

introduces a new value proposition. It either creates new markets or reshapes existing markets. There are two (2) types of disruptive innovations: Low-end disruptive innovations and New-market disruptive innovations.

Low-end Disruptive Innovations

This happens when products and services are too expensive because they are considered very high quality.

New-market Disruptive Innovations

This occurs when the features of a product restrict its accessibility or confine its usage to inconvenient, centralized venues.

Economic Risk

refers to erratic economic changes that can decrease sales, revenue, or profits.

Financial Risk

refers to internal and external circumstances that directly impact a company’s profits.

Risks of Security and Fraud

In today’s rapidly evolving business environment, an increasing number of individuals rely on e-commerce, online shopping, and business to adapt to changing circumstances. Sadly, the growth of online businesses also comes with an increased risk to cybersecurity from hackers, cybercriminals, and fraudsters.

Compliance Risk

refers to the potential for a company to face legal penalties, financial loss, and material consequences due to violating external laws and regulations or internal standards.

Human Risk

Simply put, employees’ failure or inability to carry out their essential responsibilities at work can result in human risks for businesses.

Risk of Reputation

A company’s reputation is in jeopardy, and reputational risk can negatively affect profits and shareholder confidence. A lawsuit, negative social media reviews, or other occurrences can significantly impact public opinion, harming a business’s reputation and overall success.

Competitive Risks

arises when a company loses ground to its rivals after establishing itself in an industry. This risk, often referred to as the "comfort risk," can arise when a company grows so complacent with the success or excellence of its products or services that it neglects to consistently enhance them.

Patent

is a property right granted to an invention by a government agency, like the U.S. Patent and Trademark Office. The invention, which could be a design, a process, an improvement, or a physical invention like a machine, is granted exclusive rights by the patent.

Copyrights

The exclusive right to use, copy, and duplicate original content is granted to authors and creators by copyrights.

Trademarks

is a recognizable symbol, phrase, or logo that distinguishes a product legally from other products. A company can only use or copy a trademark because it is exclusively assigned to that company.

Market Research

is crucial to understanding the potential success of a new product or service. It involves conducting research with potential customers to determine its viability. This process helps businesses decide whether to launch a product or service and how to market it to potential customers best.

Primary Research

is essential for businesses as it involves direct interaction with consumers or third-party entities to conduct pertinent studies and gather valuable data.

Quantitative Research

is a systematic research approach that focuses on analyzing numerical data. It uses statistical methods, enables researchers to make objective, data-driven decisions, and provides insights into cause-and-effect relationships.

Customer Surveys

through various channels such as in-person, smartphones, online forms, polls, and survey software can provide valuable insights. The quantitative surveys come in different formats, such as yes/no questions or rating scales ranging from 1 to 5.

Binary or Rating Scale Questionnaires

A questionnaire is an effective research tool that comprises carefully constructed questions created to gather valuable information from participants. Quantitative questionnaires usually consist of options that are either binary choices or rating scales.

Sampling

This method affects the reliability and validity of research results by helping researchers conclude the larger population based on the sample's characteristics. Random or probability sampling minimizes bias and increases the likelihood of unbiased estimates while ensuring diversity in the sample.

Qualitative Research

aims to provide insight into the underlying reasons or motivations behind a particular phenomenon, correlation, or behavior. By exploring the "why" behind these aspects, qualitative research helps uncover human experiences' complexities and meanings.

Focus Group Discussion

It involves gathering a small group of individuals who respond to online surveys sent to them. This study stands out for its impressive capability to remotely gather data from groups of 6 to 10 individuals, thereby eliminating the need for in-person interaction with the participants.

Individual Interviews

This process consists of an interview, during which the researcher interacts personally with the respondent by asking a series of questions to collect data.

Ethnographic Research

This method involves conducting thorough research in the actual environments where the respondents are situated. This approach entails observing consumers in their own homes.

Case Study Research

This approach helps explain, describe, or explore a specific issue, event, or phenomenon in detail within its everyday real-life context.

Open-ended Questionnaires

An open-ended question cannot be answered with a yes or no response. Instead, questions are phrased as a statement that requires a more extended response.

Secondary Research

uses data and insights from other sources rather than collected directly. This information can be utilized to guide product positioning and decision-making processes effectively.

Buyer Persona

involves creating a fictional representation of an ideal customer. These profiles retain the distinctive attributes of the model customer and provide insight into potential recurring behaviors.

Service Requirement

An intangible thing or product cannot be physically touched but still provides a sense of fulfillment to the customer. Several vital elements should be considered when considering service requirements, such as timely delivery, friendly customer service, and convenient payment options. It includes every aspect of how customers anticipate being treated when purchasing a product and how effortless the buying process will be.

Output Requirements

Physical objects or visible entities. Consumers expect products to have specific characteristics like features, performance, quality, reliability, and durability. Consumers also look for attributes such as size, weight, speed, compatibility, and user-friendliness.

Product and Service Development (PSD) Process

Encompasses much more than just the production of a product or the creation of procedures for delivering a service. It involves a holistic approach that includes research, design, testing, and improving the product and the service.

Flowchart

is a visual representation of a process or system. It uses symbols connected by arrows to show the steps, decisions, and flow of information. Flowcharts improve understanding and communication as they help identify bottlenecks and areas for improvement.

Cost

is all the money spent to manufacture a product or provide a service.

Costing

is the process of allocating costs to various aspects of a business. It includes allocating variable costs, which change according to a particular activity, like sales or the number of employees.

Product Cost

is the cost associated with making a product to be sold. Product costs consist of three (3) main components: direct material, direct labor, and manufacturing overhead.

Direct Materials

are the raw materials or components used directly in the production process of the final product. Examples of direct materials include wood, metal, plastic, fabric, and chemicals.