MIDTERMS ENTREP

• Entrepreneurship


  The activity of setting up a business, taking on financial risk in the hope of profit
• Creativity


  Ability to conceive something new, original and unique
• Innovation


  Introducing change into relatively existing products
• Product


  Any item offered for sale
• Goods


  Tangible
• Services


  Intangible
• Producer


  Manufactures/creates goods and supplies
• Consumer


  Person who purchases goods and services for personal use
• Sector


  Describes a large segment of the economy
• Industry


  Group of companies that are related on their primary business activities
• Anyone can become an entrepreneur
• Land


  A natural resource utilized in businesses
• Labor


  Human effort exerted in production
• Capital


  Man-made resources used in the production, like money, machinery, equipment, and more
• Efficiency


  Ability to maximize output with minimum input. Doing things right.
• Effectiveness


  Capacity to attain an intended objective. Doing the right thing.
• Entrepreneur


  A self-employed individual who sets up and runs a company as an employer or business owner
• Entrepreneurs


  • Goal-oriented
  • Highly-motivated
  • Willing to take risks to achieve their business objectives
• Aspects of business an entrepreneur needs to learn

  • Organizational development
  • Operations management
  • Sales and marketing
  • Financial planning and forecasting
• Entrepreneur


  An individual who undertakes the risk associated with organizing and operating a business
• Entrepreneurs play a key role in an economy by driving good competition and introducing innovative ideas to the market
• Entrepreneurs bring together the factors of production and combine them into a product
• When entrepreneurs succeed, they are rewarded with profits and growth opportunities in return
• Creative destruction


  The dynamic change in the economy brought about by entrepreneurs instituting new combinations of factors of production, which Schumpeter called innovation
• Entrepreneurship


  The dynamic process of conceptualizing, financing, and running a business enterprise to provide goods and services and earn profits
• Forms of innovation according to Schumpeter

  • Launching of a new product or service
  • Development of a new production method
  • Opening of a new market
  • Discovery of a new source of supply of raw materials
  • Carrying out a new organization of industry
• Entrepreneurship


  Purposeful activity or integrated sequence of decisions of an individual or a group of individuals undertaken to initiate, organize, or aggrandize a profit-oriented business unit for the production or distribution of economic goods or services
• Peter F. Drucker: 'What all the successful entrepreneurs I have met have in common is not a certain kind of personality but a commitment to the systematic practice of innovation.'
• Underlying principles of entrepreneurship

  • Having a vision
  • Providing innovative products or services
  • Managing effectively
  • Taking risks and opportunities
  • Making informed decisions
• 10 Personal Entrepreneurial Competencies (PECS)

  • Opportunity-seeking and initiative
  • Persistence
  • Fulfilling of commitments
  • Demand for quality and efficiency
  • Taking calculated risks
  • Goal-setting
  • Information-seeking
  • Systematic planning and monitoring
  • Persuasion and networking
  • Independence and self-confidence
• 3 clusters of the 10 Personal Entrepreneurial Competencies

  • Opportunity-seeking and initiative
  • Persistence
  • Fulfilling of commitments
  • Demand for quality and efficiency
  • Taking calculated risks
  • Goal-setting
  • Information-seeking
  • Systematic planning and monitoring
  • Persuasion and networking
  • Independence and self-confidence
• Entrepreneurs are innovative opportunity seekers
• Essential to an entrepreneur's opportunity seeking

  • Entrepreneurial mind frame
  • Entrepreneurial heart flame
  • Entrepreneurial gut game
• Entrepreneurial mind frame


  Allows the entrepreneur to see things in a very positive and optimistic light in a midst of crisis or different situation
• Entrepreneurial heart flame


  • Drawn to find fulfilment in the act and process of discovery
  • Passion - Great desire to attain a vision or fulfil a mission
  • Emotional intelligence - Often manifested in the entrepreneur's efforts to nurture relationship with customers, employees, and suppliers
• Entrepreneurial gut game


  Refers to the ability of the entrepreneur to sense without using five senses
• Sources of Opportunity


  • Macro environment
  • Industry
  • Market sources of opportunities
  • Micro market
• Macro environment


  • Socio-cultural
  • Political environment
  • Economic environment
  • Ecological environment
  • Technological environment
• Participants in the industry

  • Competitors
  • Suppliers
  • Consumers
  • Products
• Direct Competitor


  Competition among the supplies of virtually same products