Entrepreneurship

• Entrepreneurship

  • the process of developing a business venture to make a profit.
  • involves seeking opportunities for a market, establishing or operating a business out of opportunity, and assessing its risk and rewards through close monitoring of the operations.
• Entrepreneur

  • innovators, willing to take risks and generate new ideas to make it unique and profitable solutions to the present-day problems.
• Common Traits of an Entrepreneur

  • Pro Active
  • Agents of Change
  • Risk Takers
  • Have a sharp eye for an opportunity
  • Sociable
  • Networkers
  • Balanced
  • Decisive
  • Innovative
• Core Traits of an Entrepreneur

  • Leader
  • Communicators
  • Specialist
  • Problem Solvers
• entre - between

  prendre - to take
• Levels of entrepreneurial development

  • The self-employed - want to do things on their own
  • The manager - Feel the need to step up and ask some help from people around them
  • The leader - enjoy seeing people flourish, stepping up, and producing great results with minimal supervision
  • The investor - look for more opportunities for their business to grow
  • The true entrepreneur - fully learned, and continue to practice four-step process of thinking
• Innovative Entrepreneurs are those who always make new things by thinking of new ideas. The have the ability to think newer, better, and more economical ideas.
• Imitating Entrepreneurs are those who don't create new things but only follow the ideas of other entrepreneurs.
• Four-Step Process of Thinking:

  1. Idealization - dream and desire to build an ideal environment.
  2. Visualization - create plans to make the dream a reality.
  3. Verbalization- sharing ideas with other people.
  4. Materialization - vision becomes a reality.
• The Entrepreneurial Process:

  1. Opportunity Spotting Assessment
  2. Developing a business plan
  3. Determining the capital needed
  4. Running the business
• Opportunity Spotting Assessment

  • The beginning of the process and considered the most difficult.
  • Entrepreneurs take note of interesting trends in their environment.
  • They need to carefully assess the opportunity through estimation of opportunity length, capitalization required, threats, profitability, and calculation of real and perceived value.
• Developing a business plan

  • A comprehensive paper that details the marketing, operational, human resource, financial, strategic direction, and tactics of the business.
  • Core guide and direction of the entrepreneur.
• Determining the capital needed

  • Calculate the resources needed to establish business.
• Running the business

  • Use the resources allocated for the new venture.
  • Implementation
• Market

  • a place where two parties can gather to facilitate the exchange of goods and services.
  • the parties involved are usually buyers and sellers.
  • may be physical like a retail outlet, or virtual like an online store.
• Need

  • a motivating force that compels action for its satisfaction.
• Opportunity

  • an entrepreneur's business idea that can potentially become a commercial product or service in the future.
• Seeking the Opportunity

  • In order to spot and assess opportunity, an entrepreneur must scan and understand the firm’s environment.
  • Involves the development of new ideas from various sources.
• Three environmental factors that need to be considered in business:

  1. Physical - climate, geographical location
  2. Social - cultural aspect
  3. Industrial - government, competitor, customers
• Microenvironmental Sources

  • internal factors we can control
  • Human Capital, Financial Capital, Physical Infrastructure and Social Capital
• Macroenvironmental Sources

  • External factors that are beyond our control
  • Economic Factors, Legal and Regulatory Environment, Technological Landscape and Social and Cultural trend
• STEEPLED

  • S - Sociocultural
  • T - Technological
  • E - Economic
  • E - Environmental
  • P - Political
  • L - Legal
  • E - Ethical
  • D - Demographic
• Microenvironmental Sources

  • Industry - government, customers, employees, creditors
  • New discovery or knowledge
  • Futuristic opportunities
• Micromarket

  • Consumer preferences, interests, and perceptions
  • Competitors
  • Unexpected opportunities from customers
  • Talents, hobbies, skills, and expertise
  • Irritants in the market place
  • Location
• Screening the Opportunity

  • Process of cautiously selecting the best opportunity
  • Effective choosing or careful diligence
  • The selection is based on the entrepreneur’s internal and external intent.
  • Internal intent is the main reason that the entrepreneur would like to put up the business venture.
  • External intent addresses the compelling needs of the target market.
• Seizing the Opportunity

  • Pushing through with the chosen opportunity.
  • Make the best out of this opportunity, and they should exert efforts and full dedication for the success of the new venture.
• Innovation is the process of positively improving an existing product or service which can be a key driver for economic growth.
• Three types of innovation according to the degree of distinctiveness:

  1. Breakthrough Innovations - must be protected by patent, trade secret, and copyright.
  2. Technological Innovations - technological advancements of an existing product.
  3. Ordinary Innovations - technology full-innovation is driven by market demand or specific customer needs.