Entrepreneurship Essentials and Business Plan Development

Flashcards covering core terminology, competencies, frameworks, decision-making types, and business plan components across all lecture sources.

Entrepreneurship (Stevenson)

The process of creating or seizing an opportunity, and pursuing it regardless of resources controlled.

Entrepreneurship (Agustin-Acierto)

The science of converting processed ideas into a remarkable business venture.

Entrepreneurship (Fajardo)

A capacity for innovation, investment, and expansion into new markets and techniques.

Entrepreneur

Someone who starts and manages a business; derived from a French word meaning 'to undertake'.

Core Competency

Refers to an entrepreneur's personal traits or attributes rather than physical assets or financial resources.

EMPRETEC Program

A United Nations program first introduced in Argentina in 1988 that identified 10 key Personal Entrepreneurial Competencies grouped into three behavioral clusters.

Achieving Behaviors Cluster

The PEC cluster containing opportunity-seeking and initiative, persistence, fulfilling commitments, demand for quality and efficiency, and taking calculated risks.

Planning Behaviors Cluster

The PEC cluster containing goal-setting, information-seeking, and systematic planning and monitoring.

Power Behaviors Cluster

The PEC cluster containing persuasion and networking, as well as independence and self-confidence.

Mega Entrepreneur

An individual who generates substantial value and profits from innovations in a very short period of time, willing to absorb huge risks using enormous capital.

Micro Entrepreneur

An individual who initiates a business enterprise where value-added and profits are limited, often as an alternative to formal employment.

Entrepreneurial Process

A strategic discipline and system consisting of five stages: discovery, development of a business concept, organizing resources, implementation, and reaping the returns.

Discovery Stage

The first stage of the entrepreneurial process, involving the recognition of a business idea or detection of money-making opportunities.

Development of a Business Concept Stage

The second stage of the entrepreneurial process, which details how the general business idea will be realized through a comprehensive business plan.

Organizing Resources Stage

The third stage of the entrepreneurial process, focused on identifying, sourcing, and financing human, non-human, and other required resources.

Implementation Stage

The fourth stage of the entrepreneurial process, involving the execution of the business plan, resource management, and handling rivals and growth.

Reaping the Returns Stage

The fifth stage of the entrepreneurial process, pertaining to strategies related to business expansion and returning value.

Magna Carta for MSMEs

A Philippine law enacted in 1991 mandating government support and promotion of a conducive environment for micro, small, and medium enterprises.

Critical Thinking

A systematic and rational way of explaining what is going on in a business and how a firm can survive and remain stable, often using SWOT analysis.

Strategic Thinking

A thought process that assesses current situations to formulate future plans using tools like Porter's Five Forces, Trend Analysis, and Scenario Building.

Porter's Five Forces of Competition

An industry analysis framework developed by Michael Porter assessing competitive rivalry, supplier power, buyer power, threat of substitution, and threat of new entry.

Cognitive Adaptability

The ability of individuals to produce dynamic decision-making based on the identification and management of environmental changes through flexibility, dynamism, and self-control.

Logical Thinking

A systematic and rational approach to generating or testing ideas using statistical analysis, market analysis, SWOT analysis, and the Delphi technique.

Creative Thinking

An approach to idea generation that looks at things from different perspectives using techniques like brainstorming, problem inventory analysis, free association, and SCAMPER.

Delphi Technique

A systematic method of generating business ideas by collecting opinions from a select group of individuals over multiple rounds of consultation to reach a consensus.

Problem Inventory Analysis

A group discussion method directed at identifying all possible problems encountered with a specific product or service, followed by generating alternative solutions.

Free Association Method

An idea generation technique adapted from psychology where participants express thoughts linked to given words or concepts to discover venture ideas.

SCAMPER

A checklist method developed by Alex Osborn representing Substitute, Combine, Adapt, Magnify, Put to other use, Eliminate, and Rearrange.

Divergent Thinker

A creative thinker who explores all possible ways and options to reach a solution.

Convergent Thinker

A problem solver who evaluates options to arrive at a single final solution.

Osborn-Parnes Model

A six-stage creative problem-solving procedure: setting the objective, revisiting the objective, identifying the problem, looking for a solution, selecting the solution, and accepting the solution.

Business Opportunity

An exploitable set of circumstances with an uncertain outcome requiring a commitment of resources and involving exposure to risk.

Market Awareness

Prior knowledge of the market through personal exposure to customers and suppliers, gathered via market analysis and environmental scanning.

Entrepreneurial Readiness

The features and alertness of an individual to start a venture, including financial, physical, and human resource management capabilities.

Intermediate Inputs

Raw materials that require further processing to become final goods.

Factor Inputs

Processing inputs used in production, which include labor, capital, and technology.

Rational Approach

Also known as the traditional approach used by mega entrepreneurs, proceeding systematically through formal planning from opportunity recognition to implementation.

Intuitive Approach

An approach typically used by micro entrepreneurs where an opportunity is grabbed directly after sensing that it can be done.

Lechon Manok Syndrome

A phenomenon where numerous similar businesses rapidly open following a spike in demand, resulting in market saturation, fierce competition, and mass closures.

Business Plan

A comprehensive document describing internal and external elements involved in starting or expanding a business venture, integrating marketing, production, financial, and organizational plans.

Four Cs of Credit

The key metrics used by lenders to evaluate business plan loan applications: character, cash flow, collateral, and equity contribution.

Executive Summary

A concise two to three-page summary of the entire business plan prepared last to stimulate the interest of potential investors.