Lesson 1

• Entrepreneurship is a science of converting ideas into business. It is a process of actions of an entrepreneur who is always in search of something new to exploit new ideas into gainful opportunities. by accepting the risk and uncertainty of the enterprise. It is about execution of ideas.
• Entrepreneurship refers to the concept of developing and managing a business venture in order to gain profit by taking several risks in the corporate world.
• Entrepreneurial Idea is a specific innovative way to satisfy want, overcome a problem, or meet a challenge
• Entrepreneurial Opportunity is defined as a want, problem, or challenge that can be addressed, solved, and/or satisfied by an innovative initiative.
• Entrepreneur is derived from the French verb entreprende which means "to undertake". They are innovators, willing to take risks and generate new ideas to create unique and potentially profitable solutions to modern-day problems. They are those who "undertake" the risk of new enterprise.
• Enterprise is is an organization that is engage in commercial activities - the trade of goods or services, or both, with consumers. Its goal basically, is to earn profit. Profit is the return or compensation to the entrepreneur for taking on the risk of developing an idea into an actual business venture. It is created by an entrepreneur and the process of its creation is called entrepreneurship.
• Service Business and Product Business are the two types of Business
• Entrepreneurship is the process of developing and creating a business
• new concept, new business

  - This usually means creating or stumbling on a new idea or concept, and creating or inventing something radically new. The inventor then builds a new business around this product.
• existing concept, new business.

  - This usually means creating a new business based on the existing concept
• existing concept, new business

  • An example of this is Mang Inasal. It offers chicken in a new light: grilled chicken as fast food. With this new concept, Mang Inasal, which started in the Visayas, took the country by storm because its founder, Edgar "Injap" J. Sia, correctly perceived a need of people for affordable, quick-serve inihaw or grilled chicken. Thus, this business was founded and flourished, to the extent of offering very real competition to the Jollibee's popular Chicken Joy.
• existing concept, existing business.

  • An entrepreneur can have a laundry business. Dean of Clean, for example, had three branches in Manila. The son of the owner, while still in college, was permitted by his parents to set up a fourth branch in Quezon City. Although the new store was built on an existing business it is still a laundry shop, it required the young entrepreneur to take some personal, family, and financial risks. The setting up of branches or franchises can be considered an example of this type of enterprise.
• The Traits/Qualities of an Entrepreneur: Initiative, Proactive, Perseverance, Problem-solver, Persuasion, Self-confidence, Self-critical, A planner, Risk-taker, Creativity, Business like Attitude, Confidence, Relation Skills, Communication Skills, Ability to Make Decisions
• Entrepreneurs are the founders and builders of enterprises and businesses. And they are often called the NEW HEROES.
• Initiative does things before asked
• Proactive identifies and utilizes opportunities
• Perseverance works against all odds to overcome obstacles and is never complacent with success.
• Problem-solver introduces innovative solutions to any obstacles and problems in the enterprise
• Persuasion convinces customers and financiers to patronize his/her business.
• Self-confidence makes decisions and sticks to his decisions.
• Self-critical learns from his mistakes and from experiences of others.
• A planner, collects information, prepares a plan, and monitors performance.
• Risk-taker willing to take calculated risks
• Creativity, the ability to come up with clever, workable solutions
• Business-like attitude, Possessing the knowledge of your chosen business and having the savvy to conduct business.
• Confidence, having a firm belief in your own capabilities and your chance of success.
• Relation Skills. The ability to get along with others, to inspire cooperation, confidence and loyalty.
• Communication skills. The ability to express yourself and to understand others so that ideas can be shared.
• Ability to make decisions. The talents to analyze complex situations and draw conclusions that will make the business succeed.
• RELEVANCE OF ENTREPRENEURSHIP

  • Development of managerial capabilities
  • Creation of organizations
  • Improving standard of living
  • Means of economic development
• Development of managerial capabilities

  • Entrepreneurship helps in identifying and developing managerial capabilities of entrepreneurs.
• Development of managerial capabilities

  • Studying a problem, identifying its alternatives, comparing alternative in terms of cost and benefit implications and choosing the best alternative help in sharpening the decision making skills of an entrepreneur.
• Creation of organizations

  • Entrepreneurship results in the creation of organizations when entrepreneurs assemble and coordinate physical, human and financial resources and direct them towards achievement of objectives through managerial skills.
• Improving standard of living

  • Entrepreneurship helps in making a wide variety of goods and services available to the society which results into higher standard of living for the people. Possessions of luxury cars, computers, mobile phones, rapid growth of shopping malls, etc.
• Means of economic development

  • Entrepreneurship involves creation and use of innovative ideas, maximization of output from given resources, and development of managerial skills. All these factors are essential to the development of a country.
• KEY CONCEPTS THAT MAKE UP ENTREPRENEURSHIP

  • OPPORTUNITY
  • RESOURCES
  • CREATION OF SOMETHING NEW
  • THE PRESENCE OF RISK
  • THE DESIRE TO CREATE VALUE
• OPPORTUNITY – there must be opportunities to respond to;
• RESOURCES – are required to respond to opportunities, though entrepreneurs have the capacity to do much more than what their resources would suggest possible;
• CREATION OF SOMETHING NEW – entrepreneurs always strive to create something new, in order to capitalize on their opportunities.
• THE PRESENCE OF RISK – there will always be risk involved with entrepreneurship, though smart entrepreneurs manage it.