3rd quarter

• this term refers to the mark or attribute that distinguishes an entrepreneur from the owner of an ordinary small business.

  Character Traits
• there are (10) ten entrepreneurial characteristics that are grouped, what are the three major clusters:

  1. Achievement Cluster

  2. Planning Cluster

  3. Power Cluster
• consist of entrepreneurial character traits that are directly related to the entrepreneur’s desires to be an achiever in the field of entrepreneurship. Entrepreneurs are achievers by nature and they strive to achieve. They feel guilty if they achieve less of nothing at all.

  Achievement Cluster
• Successful entrepreneur constantly set the things to be achieved and repeatedly find ways to achieve them. The entrepreneur who belongs to the achievement cluster is:

  1.       Opportunity Seeker

  2.       Committed,

  3.       Persistent,

  4.       A risk taker and

  5.       Efficient and Quality Oriented
• a set of characteristics of successful entrepreneur that basically supports the character traits in the achievement cluster.

  Planning Cluster
•  

  In setting goals and objectives of the business venture, the entrepreneur is usually guided by the SMART Principle. This means that goals and objectives are Specific, Measurable, Achievable, Realistic and Time Bound.
• The entrepreneur who belongs to the planning cluster is

  1.       A goal setter

  2.       An information-seeker and

  3.       Systematic in planning and monitoring
• a set of character traits that reflect the degree of the interpersonal relations maintained by successful entrepreneurs in the community

  Power Cluster
• Power cluster refers to the relationship and image of the entrepreneur in the community, An entrepreneur in the power cluster is:

   

  1.       A persuasive and positive networker and

  2.       Self-confident
• The skills required in the practice of entrepreneurship area as follows:

  a.       Cognitive Skills

  b.       Technical Skills

  c.       Interpersonal Skills
• – refers to mental ability of the entrepreneur to learn new things, generate new ideas and express knowledge in both oral and written forms.

  Cognitive Skills
• The Sources of Skills

  1.       Knowledge

  2.       Aptitude

  3.       Practice/Experience
• The cognitive skills in the practice of entrepreneurship include the following:

  a.       Ability to understand and written materials

  b.       Ability to learn and apply new information

  c.       Ability to solve problems systematically

  d.       Ability to create new ideas and

  e.       Ability to innovate new products and procedures or methods
• – relate to the knowledge and proficiency in a specialized field like computer technology, accounting, marketing, operation research, engineering, medical fields or other related technical fields.

  Technical Skills
• The technical skill of an entrepreneur includes proficiency and ability among others, in the following areas:

  a.       Information technology

  b.       Feasibility study and business plan preparation

  c.       Technical writing skill

  d.       Marketing

  e.       Management and finance
• are basically about the relationship and interaction of the entrepreneur with the workers, suppliers, creditors, customer and other members of business community

  Interpersonal Skill
• The interpersonal skill of an entrepreneur may include, among others:

  •      Skills in verbal communication     Skills in non-verbal communication

  c.       Skills in listening

  d.       Skills in leading and

  e.       Skills in negotiating
• The interpersonal skill of an entrepreneur may include, among others:

  a.       Skills in verbal communication

  b.       Skills in non-verbal communication

  c.       Skills in listening

  d.       Skills in leading and

  e.       Skills in negotiating
• it is a combination of entrepreneurial concepts and principles, entrepreneurial character traits and skills that provide and become the ultimate source of competitive advantage of the entrepreneur

  entrepreneurial core competency
• is the first layer of the environment or natural environment. It is composed of the natural elements that are inherent in the earth. It is divided into Climate, Physical Resources and Wildlife.

  Physical environment
• The is another layer of the entrepreneurial environment. It is generally composed of political, cultural, economic, sociocultural, legal and technological forces. Some experts in the field of strategic management have included demographic, ethics and even regulatory forces.

   

  societal environment
• Forces in societal environment

  3.       Economic forces

  4.       Social forces

  5.       Political forces

  6.       Cultural forces

  1. Technological Forces2.       Legal forces
•  

  Forces in societal environment

  1.       Technological Forces

  2.       Legal forces

  3.       Economic forces

  4.       Social forces

  5.       Political forces

  6.       Cultural forces
• refers to the gathering, critical evaluation and utilization of information on events and activities and their relationship with the physical, societal and industry environments.

   

  Environmental Scanning
• There are two environmental scanning tools used to evaluate and analyze the different forces existing in the societal environment, namely:

  1.       PESTEL Analysis

  2.       Environmental Forces Matrix
•  

  is the external environment layer where the trends and changes are easily and immediately felt by the business.

  Industry environment
• The industry environment is considered the immediate environment of the business where it conducts its various operational activities:

  Industry Forces include the following:

  1.       Government

  2.       Suppliers

  3.       Customer

  4.       Competitors

  5.       Employee

  6.       Creditors

   
• The five forces competing within the industry are as follows

  a.       Potential new entrants

  b.       Buyers

  c.       Substitute products

  d.       Supplier

  e.       Rivalry among existing firms
• In scanning the industry environment, the entrepreneur can use the following environmental scanning tools:

  1.       SWOT model

  2.       Forces of Competition Model

  3.       Competitive Forces Matrix
• The internal or micro environment is the environment within the business.

  The common environmental forces in the internal environment are the following:

  1.       Resources

  2.       Culture

  3.       Structure
• The commonly used internal environment scanning tools are the following:

  a. SWOT Analysis

  b. BCG Analysis Matrix
• 1.       Entrepreneurial ventures may be classified according to the number of owners as follows:Forms of Entrepreneurial Venture

  a.       Sole Proprietorship – is a business venture owned by one person only.

  b.       Partnership – is a business venture that is owned by two or more persons, the owners are usually called Partners.

  c.       Corporation – is an entrepreneurial venture formed by at least five or more than fifteen persons.
• 2.      Nature of Entrepreneurial Venture – may also be classified according to its nature, the term nature simply refers to whether the business is simply selling a product, manufacturing a product or rendering service to a customer.

  The classification of entrepreneurial venture according to its nature are as follow:

  a.       Merchandising

  b.       Service

  c.       Manufacturing

  d.       Agriculture

  e.       Hybrid Business

  f.        Special Corporation
• 3.       Production System - The three important elements in the production system are:

  The Input --------------à  Production Process ---------------à  Output

   
• 3.    Production System

  The three important elements in the production system are:

    The Input ------------- Production Process --------------Output

   

  Input includes:                  4’Ms in Production

  Manpower                         Manpower

  Materials                             Method

  Machine                              Machine

  Design                                  Materials

  Instruction