Entrepreneurship

What is Entrepreneurship?

  • The process of setting up a business and the process of creating a value (though it does have a lot of different interpretation)

Concepts of Entrepreneurship

  • Undertake

  • Risk

  • Enterprise


ENTREPRENEURSHIP

  • A proactive process of developing business venture to make a profit.

  • Involves seeking opportunities for a market, establishing and operating a business out of the opportunity, and assessing its risks and rewards through close monitoring of the operations.


A Business is Successful and has materialized into:

  • Thriving industry

  • With loyal costumers

  • With financial gain


Relevance of Entrepreneurship

  • Produces more jobs

  • Amplifies economic activities

  • Introduces new innovative products and services

  • Improves living standards

  • Creates equality

  • Balances regional development

  • Reduces social conflicts

  • Elicits economic independence and capital formation


Who is an Entrepreneur?

  • French Origin

    • Entre - “between”

    • Prendre - “to take”


  • A unique individual who has the innate ability and extraordinary dedication to establish and manage a business acknowledging the risks and reaping its rewards.

  • Expects return once they already added or created value out of an opportunity.


Factors Affecting Entrepreneurship

  • Personality Factors

  • Environmental Factors


5 Levels of Entrepreneurial Development (Action Coach)

  • The Self-Employment Mindset - desire to have a greater control of their lives.

  • The Managerial Perspective - belief that business is all about managing people.

  • The attitude of an owner or leader - has created an organization that is more self-sufficient and self-sustaining.

  • The Entrepreneurial Investor - those who invest and managing thier money to produce more money.

  • The True Entrepreneur - someone who turns dreams into reality.

    • Four-step Process of thinking

      • Idealization - dreaming of building an ideal environment

      • Visualization - starts to create plans

      • Verbalization - sharing their ideas with other people knowing that their vision is already occuring

      • Materialization - when the vision becomes reality


Types of Entrepreneurs based on their expertise

  • Technopreneur - uses technology as its core

  • Social Entrepreneur - takes advantage of the country’s social problems and turns them into profitable institations

  • Intrapreneur - tasked to think, establish and run a new big idea or project

  • Extrapreneur - hops from one company to another to act as innovation champion

  • Innovative Entrepreneur - has the ability to create innovative products

  • Immitating Entrepreneur - copies the new inventions of innovative entrepreneurs

  • Fabian Entrepreneur - careful in making changes in their business

  • Drone Entrepreneur - used to doing old fashioned ways of business and doesn’t want change


Common Entrepreneurial Competencies

  • Are needed all throughout the entrepreneurship career

  • Common Traits of Entrepreneurs

    • Proactive - overthinker for risks and future challenge

    • Agents of Change - doesn’t settle for mediocrity

    • Risk Takers - is prepared for the consequences

    • Have a sharp eye for opportunities - uses opportunities as a steeping stone

    • Sociable - to establish relation with costumers

    • Networks - knows the key people to connect with

    • Decisive - always have the decision about their business and doesn’t settle for grey ideas

    • Balanced - mind in analytical and creative side, and plays with unique ideas

    • Innovative- rich with big ideas that can add value to their existing business


Core Entrepreneurial Compentencies

  • Are needed for business sustainability and manangement

  • Core Traits of Entrepreneurs

    • Leaders - must be humble, approachable and knows how to listen to people’s concerns.

    • Communicators - knows how to use all forms of communcation to effectively share ideas.

    • Specialists - experts in their own field.

    • Problem Solvers - knows how to handle issues regarding their business from finance to retail, etc.


Important Career Factors

  • Income

    • Entrepreneurs earn money passively and unlimited depending on the business sales.

    • Employee earns in fixed amount and actively.

  • Hiring and Firing

    • Entrepreneurs provide jobs

    • Employee seeks for a job

  • Daily Tasks

    • Entrepreneurs perform all tasks regarding the business and prepares policies

    • Employees has routine tasks, works on regular or normal hours and follows protocols

  • Leisure Time and Vacation

    • Entrepreneurs has a flexible schedule and can take unlimited number of vacation

    • Employees has limited number of vacation days

  • Taxation

    • Entrepreneurs are taxed on net income

    • Employees are taxed on gross income

  • Comfort Level at Work

    • Entrepreneurs are comfortable in doing mutiple and thinks outside the box

    • Employees may be comfortable with routines and minimal risks


Some MYTHS about Entrepreneurship

  • Entrepreneurs are born, not made

  • They are social and school misfits

  • One needs money only

  • A great idea is the only ingredient

  • Entrepreneurs don’t have bosses


The Entreprenurial Process

  • Opportunity Spotting and Assessment

    • Considered as the entrepreneurs toughest job.

      • Oppotunity Assesment Estimation:

        • Opportunity Length

        • Capitalization Required

        • Threats

        • Profitability

        • Calculation of real and perceived value

      • Opportunity Alignment with:

        • Personal Goals

        • Personal Attributes

      • Advance Planning of:

        • Position of product and service in the market

        • Showcase its unique selling proposition

The 3S of Opportunity Spotting

  • S1: Seeking the Opportunity

    • The most difficult process of all due to the numbers of option that the entrepreneurs will have to choose from.


  • Various Sources of New Ideas

    • Macroenvironmental sources

      • STEEPLED

        • S - Sociocultural

        • T - Technological

        • E - Economic

        • E - Environmental

        • P - Political

        • L - Legal

        • E - Ethical

        • D - Demographic

          • Represents the general environemnt where the entrepreneur can identify business opportunities from and where the business will operate

      • Industry

        • Source of current trend and where will be the future busines will belong to

      • New discovery or knowledge

        • New trends that can become the core for business model for the future

      • Futuristic Opportunities

        • Opportunities that can affect the new business on the run


  • Developing A Business Plan

    • Formulate business plan

      • Business Plan

        • Contains all informations needed for the business.

        • CORE GUIDE and DIRECTION for the emplemenation of the business.

  • Determining the Capital Needed


  • Running the Business


Scanning the Marketing Environment

  • Process of obtaining information and using it for strategic purposes

  • A must for all business types


Oppotunity

  • An entrepreneur’s business idea that can potentially become a commercial product or sevice in the future

  • The Idea should be able to create the following value:

    • Economic Value - ability to make profit

    • Social Value - addresses social need to provide benefit in the society

    • Environment Value - to presreve the natural environment


Opportunity Recognition

  • Done by continuous brainstorming

  • Discovering solutions to problems and meeting costimer needs


Identify an opportunity and convert them into a business idea

  • Identify your own personal skills

    • What skills do you inherently possess?

    • What skills have you developed lately?

  • Earn from your hobbies and favorite activities

    • Do you have a hobby or interest that you enjoy doing and does it perfectly?

  • Examine existing products or services and figure out ways by which it can be improved

  • Take advantage of your previous work experience

  • Identify problems and seize the opportunity by offerring solutions

  • Access to suppliers

  • Identify unexplored resources


How to start with ideas?

  • Imagination-based

    • Interrupting doubts and dropping restrictions to produce fantasies or make believe situations

  • Habit-breaking

    • Departing of human’s usual patterns to stimulate creative insights

  • Relationship-Seeking

    • Connecting two unrelated things together

  • Development

    • Modifications of existing concepts

  • Interpersonal

    • Interactions with groups to generate ideas