ENTREP

Entrepreneurship

Entrepreneurship

The art of turning an idea into a business, often involving assuming personal and financial risks to start or expand a business.

roots from sanskrit word ‘Antha Prerna’ which means “self motivated”

Entrepreneur

A vision-driven individual who takes significant risks to bring new ideas into the business world.

Came from a french word ‘entreprende’ which means “to undertake”

Benefits of Entrepreneurship

1. Take control of your destiny

2. Choosing who to work with

3. Be your own boss

4. Have a flexible schedule

5. Making a difference to serve the society

6. Lead an exciting life

7. Meeting like-minded people

8. Leadership experience

Factors causing Business Failure

1. Not knowing enough about the market

2. Lack of skills in management

3. Failure to overcome the hard work, long hours, and stress in setting up

4. Underestimating the finances needed to run an enterprise

5. Lack of passion

6. Contending with strong and experienced competitors

7. Sheer incompetence

Joseph Schumpeter

He ascribed more lofty ideals to entrepreneurs when he differentiated them for ordinary businessmen because they deliver innovation and technological change

Innovation

The methods of production and transportation, production of new product, change in the industrial organization, opening up of a new market, discovering new sources of supply

Creative Destruction

Getting rid of an old obsolete way in order to usher in a new way of doing business

Richard Cantillon

Known as the "Father of Economics" who was the first to use the term "entrepreneur."

JEAN-BAPTISTE SAY

A French economist who said, “The entrepreneur shifts economic resources out of an area of lower and into an area of higher productivity and greater yield.”

Business Name

The legal name under which a business is registered, playing a crucial role in branding and perception.

5 RULES FOR CHOOSING THE RIGHT BUSINESS NAME

1. Make it memorable and easy to spell

2. Integrate a visual element

3. Add a positive annotation

4. Make your business objective clear

5. Keep it fairly short

Funny Business Name

Clar Ganac, marketing professor at Del la Salle “Using puns is risky, and probably best avoided.”

Its novel and you might get noticed, but if that’s all people remember, that’s bad

Adam Fridman

“Your company name plays a monumental role in a brand’s growth and perception, meaning, it can completely make or break a company”

Business Logo

A symbol or design representing a company and its products, services, and employees.

Business Tagline

A phrase conveying a brand's value without specifying the product or service offered.

Coca Cola

Open Happiness

SM

We’ve got it all for you

Microsoft

We believe in what people make possible

____ % of Start-up Businesses Fails

80-90%

Opportunity

An idea with commercial potential that can be developed into a business or create value.

3 Qualities of 21st Century Opportunity Seeking

Entrepreneurial mind frame, heart flame, and gut game.

ENTREPRENEURIAL MIND FRAME

Allows the entrepreneur to see things in a very positive and optimistic light in the midst of crisis or difficult situations.

Able to use these problematic situations as inspirations for creating something innovative

ENTREPRENEURIAL HEART FLAME

Entrepreneur is driven by passion or the strong will to succeed, strong will to find fulfillment in the act and process of discovery

PASSION

great desire to attain a vision or fulfill a mission

ENTREPRENUERIAL GUT GAME

• Also know as “Intuition” or in tagalog, “lakas ng loob” – connotes courage

• Ability of the entrepreneur to sense without using the five senses

• Knows whether it will work or not

Business Plan

A document outlining a company's financial objectives and strategies to achieve them, serving as a guide and tool for investors.

25-35

A business plan is typically _____ pages long

Parts of a Business Plan

1. Introduction

2. Executive Summary

3. The Business Proponents

4. Target Customers and the Main Value Proposition to the customer

5. Market Justification

6. Product and Service Offerings

7. Enterprise Strategy and Enterprise Delivery Systems – business competitiveness

8. Financial Forecasts and Expected Returns, Risks, and Contingencies

9. Environmental and Regulatory Compliance

10. Capital Structure and Financial Offering

Parts of the Introduction

a. The Business Concept and the business Model

b. The Business Goals: Vision, Mission, Objectives, and Performance Targets

c. The Business Offering and Justification

BUSINESS CONCEPT

Essence of the enterprise in a concrete but powerful manner

BUSINESS MODEL

A formula on how exactly the enterprise plans to make money out of the business

BUSINESS GOALS

Shows the future and long-term targets of the enterprise

Composed of the V, M, Obj, Key result areas, performance indicators (VMOKRAPI)

Vision

The idealized state that the enterprise aims to achieve in the future, answering the question "Why?"

Mission

The purpose for the existence of the enterprise, detailing how to fulfill the vision and answering the question "How?"

Jollibee

to serve great tasting food, bringing the joy of eating to everyone

Google

Organize the world’s information and make it universally accessible and useful

Facebook

to give people the power to build community and bring the world closer together

Amazon

to be Earth's most customer-centric company

Nike

to bring inspiration and innovation to every athlete in the world

Toms

with every product you purchase, toms will help a person in need

Objective

A measurable end result typically related to customers, market, and financial outcomes desired.

Key Result Areas

Qualitative manifestations that the objective is being realized

Performance Indicators

Numerical or quantitative measures for each key result area.

Executive Summary

A condensed version of the entire plan, highlighting key arguments for the business's success.

Business Proponents

Information about stakeholders and target market, crucial for engaging potential participants.

RESOURCE MOBILIZERS and FINANCIAL BACKERS

They want to know who else is on board to share the burden of raising money to see the whole thing through

TECHNOLOGY PROVIDERS and APPLICATORS

They want to know if there would be sufficient funds to pay for the technology

GOVERNANCE and TOP MANAGEMENT

They want to know what strategies and performance indicators are being proposed

OPERATING and SUPPORT TEAM

They want to know what programs, activities, tasks, and resources would be in place

Target Customers (Target Market)

A group with the potential to purchase the enterprise's products, based on specific characteristics.

2040 Vision of the Philippines

A future outlook where Filipinos enjoy stability and comfort, with provisions for future generations.

Main Value Proposition

The unique selling proposition of the enterprise, outlining the promise of value to customers.

Macro Environment

• involves influences which affect the entire economy of a business.

• also called the ‘external environment’.

• ‘Big or macro forces’ that affect the area, industry, and market where the enterprise belongs to.

• Biggest source of opportunities

Nature of Organizational Environment

External and internal factors affecting an organization's operations.

External Environment

everything outside an organization that might affect it

Internal Environment

consists of conditions and forces within the organization

SPEET Analysis

stands for the analysis of the external factors which are beneficial when conducting research before beginning a new project or to help conduct market research.

Social Environment

Demographics and socio-cultural dimensions influencing customer behavior.

Political Environment

Governance system elements affecting business operations, such as laws and regulations.

Economic Environment

External factors influencing costs, supply, and demand of products produced by the enterprise.

Law of supply, demand, and price

Natural Resources

All resources that occur naturally in the environment, including air, water, minerals, plants, and animals.

Technological Environment

The environment influenced by technological advancements, including new discoveries, innovations, machinery, equipment, and systems.

INDUSTRY SOURCES OF OPPORTUNITIES

Next biggest sources of opportunities after macro- environment

Rivals and Competitors

Entities in a particular business that compete in the same markets, such as Jollibee vs. McDonald’s, Coca-Cola vs. Pepsi, Samsung Galaxy vs. Apple iPhone.

Suppliers

Entities that provide inputs, machinery, equipment, manpower, expertise, and merchandise to businesses.

Marketing Channels

Used by industry participants (enterprises) to reach the end consumers

Consumer Market Segments

Being served by all those competing in the industry

Substitute Products or Services

Products or services that customers may shift to instead of the existing offerings.

PARTICIPANTS IN AN INDUSTRY

1. Rivals and Competitors

2. Suppliers

3. Marketing Channels

4. Consumer Market Segments

5. Substitute Products or Services

6. All Other Support and Enabling Industries

Political Environment

INCLUDES:

• laws, rules, and regulations

• Permits and Approvals

• Disposal of Waste

• Taxation of Income

• Use of Public Funds

• Importation of Goods and Services

Social Environment

INCLUDES:

• Structure

• Social Status

• Dynamics of the Population

• People’s beliefs, tastes, mores, customs, and traditions

Economic Environment

INCLUDES:

• Investments made

• The revenues

• The expenses incurred

• Inflation

• Interest rates

• Taxes (VAT)

• Stock Values

Ecological Environment

INCLUDES:

• All natural resources

• Ecosystem

  • All human beings

  • Animals

  • Plants

  • Minerals

Technological Environment

INCLUDES:

• Trends in the use of technology

• Machinery and Equipment

• Operating processes

• New systems

• Innovation

• Automation

Target Customers

Must be of sufficient size, sufficient paying capacity, and have sufficient interest to purchase the products being offered by the enterprise

Henry Sy, Sr.

A Filipino Businessman, investor, and philanthropist who was the founder of SM and aka retail king of the Philippines

Carriedo

Where the first SM was located

Which among the following is not included in the enterprises of Henry Sy, Sr.

SM

Watsons

SMDC

Mercury Drug

China Bank

BDO

Mercury Drug