Lesson 1-1.5 (Entrepreneurship)

Is the person who identifies an

opportunity, creates a new venture, and

takes the risks.

Entrepreneur

It is the process, activity, or journey of

building and managing that business,

involving innovation, resource

coordination, and value creation.

Entrepreneurship

Someone who starts and manages a business.

Entrepreneur

The word “Entrepreneur” coined by French

economist Jean-Baptiste say comes from the French verb?

Entreprendre (to undertake)

He associated entrepreneurship with innovation.

• Doing something different or new is a necessary condition to become a successful entrepreneur

Joseph A. Schumpeter

He associated entrepreneurship

with purposeful activity and the

creation of organization.

Arthur H. Cole

He is the father of modern management

-Entrepreneurship is discipline that is capable of being learned and practiced

Peter F. Drucker

Entrepreneurs need to follow something which will serves

as guideline for their business success.

Fundamental Principles/Underlying Principles:

1. Having a vision

2. Managing effectively

3. Providing innovative products or

   services.

4. Taking risks and opportunities

5. Making informed decision

It is for the promotion of entrepreneurship and micro,

small, and medium enterprises (MSMEs) to facilitate sustainable

development and inclusive growth has identified 10 key areas

competencies related to entrepreneurial development.

The EMPRETEC Programme of the United Nations

Conference on Trade and Development (UNCTAD)

These competencies are called the 10 Personal Entrepreneurial

Competencies (PECs), which include the following:

1. Opportunity-seeking and Initiative

2. Persistence

3. Fulfilling of Commitments

4. Demand for quality and efficiency

5. Taking calculated risks

6. Goal-setting

7. Information-seeking

8. Systematic planning and monitoring

9. Persuasion and networking

10. Independence and self-confidence

A competency that seeks opportunities and takes the

initiative to transform these opportunities into profitable business

situation.

Opportunity-seeking and Initiative

A competency that an entrepreneur has the determination to persevere and an extremely strong desire to achieve goals and objectives.

Persistence

A competency that an entrepreneur always keeps his or her promises, no matter how great the personal sacrifice is, and exerts extraordinary effort to complete a task or project.

Fulfilling of Commitments

A competency that is obsessed by the need to improve

the product or service quality, do something better, faster or cheaper.

Demand for quality and efficiency

A competency that an entrepreneur is willing to take risks and

take actions to control the outcomes.

Taking calculated risks

A competency that an entrepreneur sets goals and objectives which personally meaningful and challenging, clear and specific, and

measurable and time-bounded.

Goal-setting

A competency that an entrepreneur personally seeks information from customers, suppliers, and competitors, and does personal research or consults experts for business, product, or technology development.

Information-seeking

A competency that plans in an orderly and logical way, and keeps financial and business records to use them to make decisions.

Systematic planning and monitoring

A competency that employs deliberate strategies to influence

and persuade people to follow him or her, and takes action to develop and maintain a network of business contacts.

Persuasion and networking

A competency that an entrepreneur takes total

responsibility for making things happen, and seeks autonomy from the rules and control of others.

Independence and self-confidence

Most entrepreneurs learn through a

hands-on or?

“learning by doing”

approach.

Entrepreneurs acquire ________

by learning from past experiences and

observing the actions and outcomes

achieved by others.

Tacit knowledge

Learning Styles in Entrepreneurship:

1. Imagining Style

2. Deciding Style

3. Analyzing Style

4. Initiating Style

5. Balanced Style

Entrepreneurs prefers concrete experience and tend to use varying thinking processes to generate multiple solution and ideas.

Imagining Style

Taking in abstract information through reflection and enjoy logical problem solving and theory formulation.

Analyzing Style

Entrepreneurs are drawn to application of theory through practical task oriented problem-solving.

Deciding Style

Entrepreneurs are interested in practical activities that more likely to engage their sense of intuition.

Initiating Style

Entrepreneur may also have a balanced or flexible style that allows them to adapt their learning on a situational basis.

Balanced Style

Process before entering a business:

1. Opportunity Seeking

2. Opportunity Screening

3. Opportunity Seizing

It pertains to an idea that has the potential to be

developed into a business venture.

Opportunity Seeking, Screening, and Seizing

Seven sources of opportunity:

1. The Unexpected

2. Industry and Market Disparities

3. Process Vulnerabilities or Process Needs

4. Incongruities

5. Demographic Shift

6. Changes in Perception

7. New Knowledge

Are the first

phase of any entrepreneurial venture,

and it is the most difficult part.

Spotting opportunities

There are many ways to spot opportunities:

1. Listen to the Market

2. Feel the competition

3. Look at the trends

4. Evaluate the market competitors and Industry needs

Not all opportunities can give the same level of impact to the business or the same percentage of return on an investment

Opportunity Screening

Entrepreneurs must select their

opportunities carefully this

process is called?

At this stage, entrepreneurs are able to

cautiously choose the best opportunity for them.

Opportunity screening

A sound opportunity screening should have any of the

following elements:

1. Brings superior value to customers

2. Provides solution to a compelling problem

3. Fully satisfies a need or want

4. Must be a potential cash cow

5. Matches with the skills and resources of the entrepreneur

The 12 Rs of Opportunity Screening:

1. Relevance

2. Resonance

3. Reinforcement

4. Revenues

5. Responsiveness

6. Reach

7. Range

8. Revolutionary Impact

9. Returns

10. Relative Ease of Implementation

11. Resources Required

12. Risks

The opportunity must be aligned with the vision, mission, and objectives of the entrepreneur.

Relevance

The opportunity must match the values the entrepreneur wishes to impart.

Resonance

The opportunity must resonate with the entrepreneur’s interest, preferences, or taste.

Reinforcement

The opportunity must determine the sales potential of the products or service the entrepreneur wants to offer.

Revenues

The opportunity must address the unfulfilled needs and customers.

Responsiveness

The opportunity must have good chances of expanding through branches, distributorships, dealerships, or franchise outlets.

Reach

The opportunity must have a potential to lead to a wide range of product or service offerings, and tap multiple market segments of the industry.

Range

The opportunity is the “next big thing” or even a game-changer that will revolutionize the industry.

Revolutionary Impact

The opportunity yields the highest returns on investment.

Returns

The opportunity is relatively easy to implement.

Relative Ease of Implementation

The opportunity requires fewer resources.

Resources Required

The opportunity could outweigh the risks, such as technological, market financial, or people risk.

Risks