ENTREPRENEURSHIP

ENTREPRENEURSHIP

• are innovators, willing to take risks and generate new ideas to make it unique and profitable solutions to the present-day problems.

• a person who creates the business and aggregates the resources efficiently and effectively to manage the business well

 enterprendre

 to undertake

RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION 1

DEVELOPMENT OF MANAGERIAL CAPABILITIES

RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION 2

Improving the Standard of living

RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION 3

Creation of Organization

RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION 4

Means of Economic Development

PROACTIVE

Entrepreneurs are reactive rather than passive. They address issues, problems, and challenges before they come rather than when they have already happened. They ensure that proper research is done, the risk factors are assessed, and plans are executed on a timely and most efficient way.

AGENT OF CHANGE

Entrepreneurs are innovation champions. They see opportunities in hopeless and complex situations.

RISK TAKERS

Entrepreneurs will not be successful if they do not take —-. By taking —-, entrepreneurs do not just grab opportunities left and right; they have to take into consideration the potential various threats they may encounter

HAVE A SHARP EYE FOR OPPORTUNITIES

Entrepreneurs have a talent for recognizing an opportunity even by using the macrolevel data only.

SOCIABLE

Soft skills are one of the most important competencies of entrepreneurs as these establish the relationship with the most important assets of the company, its people, and its customers. Relationship management is the key to employee and customer retention, which can be achieved by a —— entrepreneur.

 Networkers

A ——- knows the key people to connect with. ——- can be a very intimidating task, for it takes a lot of guts to pull it off. Successful entrepreneurs gain the trust of their valuable network and maintain a long-lasting relationship with them.

Decisive

Entrepreneurs always have a decision about their business. They do not settle for gray areas or unclear solutions. They do not leave an issue unsolved without a disposition. They make sure that all aspects of their business have clear objectives and strategies. Last, they base their decisions on scientific calculations backed up by their experience and technical knowledge.

Balanced

The minds of entrepreneurs should have a ——- between the analytical and the creative sides. Their brains are always playing with "unique ideas" that no one has ever thought of yet. Entrepreneurs always have "Eureka!" moments.

Innovative

The minds of entrepreneurs are rich with big ideas that can add value to their existing business or could become a game-changer in the industry or business where they belong. They do not stop improving and thinking of new and worthwhile ideas for their business.

core traits

Leaders, Communicators, Specialists, Problem solvers

Leaders

Successful entrepreneurs always have the heart of a —-. To be successful ——-, they must be a source of inspiration for their employees.

Communicators

Entrepreneurs know how to use all forms of ——to effectively share ideas and address certain concerns with their customers or employees.

Specialists

Entrepreneurs are experts in their chosen business. They are tactical and are very keen with details. When asked about the specifics of their product or service, they can easily answer without heavily relying on their people.

Problem solvers

Entrepreneurs possess critical thinking skills and look at problems as challenges or puzzles that they need to solve. They know how to handle issues in any area of the business, be it finance, operations, or marketing.

Franchising

is when a business ——- gives someone else —— the right to use its brand name, system, and know-how to run a business under its name, in return for fees and following its rules.

 MARKET

• It is a place where two or more people can gather to facilitate the trade of goods or services.

• It is the total of all buyers and sellers in the area under consideration.

3S OPPORTUNITY

SEEKING, SCREENING, AND SEIZING 

S1: seeking opportunity

is the first step and is the most difficult process of all due to the number of options that the entrepreneur will have to choose from. It involves the development of new ideas from various sources as follows:

STEEPLED 

• mnemonic for sociocultural, technological, economic, environmental, political, legal, ethical, and demographic factors.

•  represents the general environment where the entrepreneur can identify business opportunities from and where the future business is about to operate.

Socio-cultural factors

These factors represent a general view of a locality's traditions, customs, beliefs, norms, and perceptions. These factors affect how a person of the locality behaves and reacts to marketing and selling activities.

TECHNOLOGICAL factors

These are composed of innovations of an existing technology or an invention of a new one mostly on applied science and engineering research areas.

ECONOMIC FACTORS

These factors play a vital role in the scanning of the marketing environment because economic factors directly affect any business venture.

Environmental or ecological factors

These factors should be given much importance in conducting a business especially when the world has already suffered severely from human-induced calamities.

Political factors

These factors are mostly induced by government policies and administrations, which can have strong effect in the entrepreneur's business.

Legal factors

Related to political factors, -—- factors are government laws and regulations that can restrict or allow business activities.

Ethical factors

These are the factors that will serve as an entrepreneur's guide on how to be ethical in running the business.

Demographic factors

These are the characteristics of the people in the target market.

NEW DISCOVERY OR KNOWLEDGE

These are new trends that can be the core business model of a new venture.

INDUSTRY

This is the source of the current trend in what is happening in the industry, where the future business will belong.

Futuristic opportunities

These are projected new opportunities that can possibly affect the new business while it is running.

CONSUMER PREFERENCES

• These are the current needs and wants of potential customers that should be discovered right away by a budding entrepreneur.

INTEREST

• A need is recognized when a customer believes that there is a difference between his or her current situation versus his or her desired condition.

PERCEPTION

• A want, on the other hand, is recognized when a customer believes that there is a Specific product or service that can perfectly suit the need.

 COMPETITORS

Recognizing and understanding potential competitors will aid the entrepreneur to develop a product or service that is unique and will surely stand out from the competition. 

UNEXPECTED OPPORTUNITIES

It may happen in unlikely situations, unlikely places, and with unlikely people. Existing problems and bottlenecks often give rise to an unexpected opportunity.

Talents, hobbies, skills, and expertise.

•  Business opportunities do not just come from outside forces, but also from within the entrepreneur. 

• The entrepreneur's talents, hobbies, skills, or expertise can be a source of business opportunity.

Irritants in the marketplace

•  Irritants in the marketplace such as deterrents, problems, complaints, and delays.

•  Generally, entrepreneurs see opportunities in situations where there is a recurring problem or sometimes when there is no more hope in solving the problem.

Location

Often, entrepreneurs just have to look at their ecosystem, and they will be able to spot a business opportunity right away.

S2: OPPORTUNITY SCREENING

is the process of cautiously selecting the best opportunity. 

Time

must be considered by the entrepreneur in screening the opportunities at hand, as it is considered one of the most critical resources of an entrepreneur.  should only be devoted to worthwhile opportunities.

S3: SEIZING THE OPPORTUNITY

• is the last step in opportunity spotting and assessment. This is the "pushing through" with the chosen opportunity.

• Innovation is the process of positively improving an existing product or service. It is a key driver for economic growth. Innovation is inevitable as the world constantly changes.

TYPES OF INNOVATION

Breakthrough, Technological, Ordinary

Breakthrough innovation

These innovations, which may also include inventions, occur infrequently as these establish the platform on which future innovations in an area are developed.

Technological innovation

These innovations occur more frequently than breakthrough innovations. These innovations are technological advancements of an existing product or service.

Ordinary innovation

These innovations occur ordinarily as the name implies. They are commonly originating from market analysis and technology pull instead of a technology push.

PRODUCT OR SERVICE PLANNING AND DEVELOPMENT PROCESS

The last process, called the seizing process, involves refining and developing this opportunity. The refining process is called

VALUE PROPOSITION  (VP)

is a business or marketing statement that summarizes why a consumer should buy a company's product or use its service. This statement is often used to convince a customer to purchase a particular product or service to add a form of value to their lives.

Unique Selling Proposition (USP)

refers to how you sell your product or services to your customer. You will address the wants and desires of your customers. A method to market your product or service in a way that is different than the other competitor’s marketing target customers.

TARGET MARKET

identification process that aims to determine the buyers with common needs and characteristics.

GEOGRAPHIC SEGMENTATION

 Climate, Dominant ethnic group, Culture, Density (either rural or urban)

DEMOGRAPHIC SEGMENTATION

means dividing the market based on personal characteristics

PSYCHOLOGICAL SEGMENTATION

Divided in terms of how customers think and believe

BEHAVIORAL SEGMENTATION.

Divided according to customers' behavior pattern as they interact with a company

CUSTOMER REQUIREMENTS

are the specific characteristics that the customers need from a product or a service.

Service Requirement

An intangible thing or product that cannot be touched but the customer can feel the fulfillment. 

Output Requirement

Tangible thing or things that can be seen. Characteristic specifications that a consumer expects to be fulfilled in the product. Tangible thing or things that can be seen. Characteristic specifications that a consumer expects to be fulfilled in the product.

Market Size

is like the size of the arena where the entrepreneurs will play their business. It is the approximate number of sellers and buyers in a particular market. Companies are interested in knowing the market size before launching a new product or service in the area.

MARKETING RESEARCH

can be defined as the process of gathering, analyzing, and interpreting the information about the products or the services to be offered for sale to potential consumers in the market.

DATA COLLECTION

is the most valuable tool in any type of research study. Inaccurate data collection may cause mistakes and ultimately lead to invalid results.

DIFFERENT DATA COLLECTION

SURVEY (QUESTIONNAIRE), INTERVIEW, FOCUS GROUP DISCUSSION (FGD)

PRODUCT

refers to any goods or services that is produced to meet the consumers’ wants, tastes and preferences.

PLACE

represents the location where the buyer and seller exchange goods or services. It is also called the distribution channel. It can include any physical store as well as virtual stores or online shops on the Internet. 

PRICE

In the narrowest sense, ——- is the value of money in exchange for a product or service. Generally speaking, the price is the amount or value that a customer gives up to enjoy the benefits of having or using a product or service. 

PROMOTION

refers to the complete set of activities, which communicate the product, brand or service to the user. The idea is to create an awareness, attract and induce the consumers to buy the product, in preference over others.

ADVERTISING

• (radio, television, print, electronic, word of mouth, generic)

PUBLIC RELATION OR PR

• - The reporter, whether broadcast or print, writes about or films your company as a result of information he or she received and researched. 

PERSONAL SELLING

occurs when an individual salesperson sells a product, service or solution to a client. 

SALES PROMOTION

is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service (gifts, free samples, free trials etc.) 

 DIRECT MARKETING

is a promotional method that involves presenting information about your company, product, or service to your target customer without the use of an advertising middleman.

Forms of Direct Marketing

Brochure, Catalogs, Fliers, Newsletters, Post cards, Coupons, Email, Phone calls, Text messages

PEOPLE

the staff that makes it happen for you, your audience, and your advertisers are the people in marketing.

PACKAGING

is a silent hero in the marketing world. —- refers to the outside appearance of a product and how it is presented to the customers. 

.POSITION

When a company presents a product or service in a way that is different from the competitors, they are said to be “positioning” it. —- refers to a process used by marketers to create an image in the minds of a target market.