Entrepreneurship

• Entrepreneurs are individuals who take risks to start their own businesses.
• Persistence: Entrepreneurs manifest an unyielding determination and perseverance in the face of failures and setbacks.
• Entrepreneurship is an economic activity that generates income.
• The entrepreneurial process involves identifying opportunities, developing ideas into viable business ventures, managing resources effectively, and creating value for customers.
• Entrepreneurship refers to the ability to identify new opportunities, develop innovative solutions, and create value through the creation of products or services.
• Entrepreneurship can be defined as the act or process of starting one's own business venture with the aim of making a profit.
• 2 Fundamental Elements of Innovation: Product and Service
• Impacts of Innovation

  • Rights of intellectual property
  • Eliminate Competition
  • Franchising Opportunity
  • Potential Expansion
  • Set standard for pricing policy
• Implications of Innovation

  • Skepticism - consumers will be hesitant with the innovation
  • Might end up wasting resources by developing something that does not sell
  • Costly and Time-consuming
  • Requires Market Research
  • Financial Losses due to slow market progress
• • foreground of entrepreneurship
  • development of new or unique product or service 

  Innovation
• • revolutionizing an existing product/service/idea.

  Modification
• Impacts of Innovation

  • Cost-effective
  • Manageable
  • Potential Market Trust
  • Opportunities for alternative/substitutes
  • Time-efficient
• Implications of Modification

  • Competitive pricing
  • High market rivals
  • Threats/substitutes
  • High risk of regression
• • is a place where to parties can gather to facilitate the exchange of goods and services.

  Market
• • the of exchange goods or services.

  Transaction
• Representatives of the Market Environment

  • Sellers
  • Buyers
• • generated by buyers

  demand
• • created by the sellers


  supply
• 3 Types of Industries

  • Manufacturing
  • Merchandising
  • Servicing
• • establishes direct contact to the consumers/buyers

  Merchandising
• • suppliers of raw materials

  Manufacturing
• • provides services

  Servicing
• Determinants of Market Structure

  • Numbers of buyers and sellers
  • Ability to negotiate on both ends (bargaining power/power of persuasion)
  • degree of concentration
  • degree of differentiation
  • Ease/difficulty of Entering and Exiting the market
• "having the same nature product"

  concentration/homogeneous
• Distinct Features of Market Structure

  • Buyer's structure
  • Turnout and Turnover of customers
  • Extend of product differentiation
  • Nature of Costs of Input (production costs)
  • Number of players in the market
  • Vertical Integration
  • Largest player's market share
• • buyers get to choose and decide as to what they want to demand in the market environment

  Preference
• • the number of customers that transacted in a certain entity

  Turn-out
• • customers who switch from one product to another or customers who left the entity

  Turn-over
• • a market structure wherein there is not competition and they all sell the same product (homogeneous product)

  Perfect Competition
• Two aspects of Perfect Competition

  • no innovation since it will break the chain of competition
  • very few barriers to entry
• • combination of perfect competition and monopoly
  • all equally operating in the same environment, but you can differentiate your product

  Monopolistic Competition
• • only one large entity that operates one specific product, and no other entity gets to operate the same

  Monopoly
• • small number of large companies that take over the environment

  Oligopoly Market
• Classification of Market

  Physical Market

  Virtual Market
• • refers to an illegal market where transactions occur without the knowledge of the government or other regulatory agencies

  Black Market
• • brings many people together for the sale and purchase of specific lots of goods. The buyers or bidders try to top each other for the purchase price.

  Auction Market
• • refers to any place where securities, currencies, bonds, and other securities are traded between two parties

  Financial Market
• • a network of sellers selling real estate properties and a corresponding network of buying looking to purchase homes

  Housing Market
• Traps in the Market Environment

  • Focusing only on innovation and the competition
  • Focusing only on customers
  • Focusing only on revenue
• • people who have already purchased your product

  Existing customers