tesorio midterms

• The word entrepreneur was coined by Jean Baptiste Say
• Joseph Schumpeter used Say's ideas as the groundwork of his book The Theory of Economic Dynamics
• Entrepreneur originated from the French word entrepreneur, which means "to undertake"
• Richard Cantillon (1680-1734) was an Irish economist who was born in France and belonged to the French school of thought
• Adolph Reidel (1809-1872), a member of the German school of thinking, took Cantillon's concept of uncertainty and expanded it to suggest that entrepreneurs take on uncertainty so that others, such as income earners
• Frank Knight (1885-1972), a member of the American school of thought, developed the Chicago School of Economics
• Motivation is required due to tough competition in the global economy
• Motivation is required due to unpredictable future conditions
• Motivation is required to generate public demand in the market
• Motivation is required to boost creativity in the market
• Motivation is required to boost productivity in the market
• What motivates entrepreneurs: EARN PROFIT
• What motivates entrepreneurs: MAKE ONE'S OWN CHOICES
• What motivates entrepreneurs: ATTAIN SUCCESS
• What motivates entrepreneurs: GRAB AN OPPORTUNITY
• What motivates entrepreneurs: GIVE BACK/PAY IT FORWARD
• Characteristics of entrepreneurs

  • creativity
  • professionalism
  • risk-taking
  • passion
  • planning
  • knowledge
  • social skills
• Planning skills

  Create business plans to achieve objectives in finance, marketing, production, sales, and personnel
• Ability to communicate

  Explain, discuss, sell, and market products or services
• Marketing skills

  Make people desire to buy goods or services
• Interpersonal skills

  Form and maintain favorable connections with various stakeholders
• Basic management skills


  Know if the company has necessary resources
• Leadership abilities

  Create a company vision and encourage colleagues to achieve it
• Types of entrepreneurs

  • Innovating Entrepreneurs
  • Imitative Entrepreneurs
  • Fabian Entrepreneurs
  • Drone Entrepreneurs
• New ways to innovate in business

  • New Product
  • New service
  • New Means of Production
  • New Distribution Route
  • Improved service
  • New Relationships
• Types of franchising

  • Product and Trademark Franchising
  • Business Format Franchising
• Value by reducing cost in communication, monitoring, and strengthening networks against fierce competition

  • Cost reduction in communication, monitoring, and network strengthening
• Types of franchising

  • Product and Trademark Franchising
  • Business Format Franchising
• Types of franchise agreements

  • Individual Franchise Agreement
  • Area Franchise Agreement
  • Master Franchise Agreement
• What franchise provides
• What franchise provides

  • Trademark
  • Market studies
  • System Standards
  • Operational Manual
  • Company Experience
  • Franchisor's Wisdom
  • Training
  • Site Selection Assistance and Approval
  • Store layout
  • Exclusive Territory
  • Procurement Programs
  • Franchisee hiring support
  • Marketing Strategies
  • Effective Field Service
  • Research and Development
• Franchisees require operational support for issues and difficulties that arise from time to time
• Businesses confront fierce competition; therefore, new items are always being evaluated and presented to the market
• Cost of investment

  • Initial Franchise Fee
  • Capital Requirements
  • Royalties
  • Advertising Fee