Entrepreneurship

• Entrepreneur


  A person who organizes, operates, and assumes the risk of business ventures, who strongly advocates and correctly practices the concepts and principles of entrepreneurship in operating and managing a business
• Entrepreneurship


  The art of observing practices, managing, and operating a self-owned wealth-creating business enterprise by providing goods and services
• Concept of Entrepreneurship


  • Entrepreneur
  • Entrepreneurship
  • Enterprise
• Small Business


  • Correctly adopts and practices the principles of entrepreneurship
  • Owned by one person with a limited workforce of not more than 20 persons
  • Includes Small Medium Enterprises (SMEs)
  • Strongly promoted by government and non-government organizations
• Ordinary Small Business


  • Pertains to business enterprise managed and operated by an owner who is not an advocate of and does not practice the concepts and principles of entrepreneurship
  • Can be found along city streets, municipal roads, and national roads, and in public markets, hospitals schools, and amusement places
• Entrepreneurship


  • It is an art of correct practices
  • It is an art, not a science
  • It is dynamic and closely related to creativity
  • They keep on searching for something new, finding ways to transform ideas into entrepreneurial opportunities
• Entrepreneurship


  • It is a wealth-creating venture
  • It operates within the concept of wealth creation rather than profit generation
  • Wealth is defined as the abundance of money, property, or possession
• Entrepreneurship


  • It creates economic wealth by providing goods and services to consumers
  • Anything of no value to anybody is definitely a waste
  • Not to sell waste to consumers but only valuable goods, and services
• Entrepreneurship


  • It entails opening and managing self-owned enterprise
  • Businesses that are being managed by others for the benefit of the owners do not fall within the sphere of entrepreneurship
  • Such businesses are operating under the concept of intrapreneurship
• Entrepreneurship


  • It is a risk-taking venture
  • Risk is inherent in an entrepreneurial venture
  • Risk cannot be detached from any entrepreneurial venture
  • The risk in entrepreneurship is called "Business Risk"
• Character Traits


  The mark or attribute that distinguishes an entrepreneur from the owner of an ordinary small business. Based on SERDF of DTI.
• Character Trait Clusters


  • Achievement Cluster
  • Planning Cluster
  • Power Cluster
• Achievement Cluster


  • Entrepreneurial character traits that are directly related to the entrepreneur's desire to be an achiever in the field to entrepreneurship
• Traits in Achievement Cluster


  • Opportunity-seeker
  • Committed
  • Persistent
  • Risk-taker
  • Efficient and Quality-oriented
• Planning Cluster


  • Planning is inherent in the entrepreneur, being both the owner and manager of the business. It often begins with a specific plan and ends with review of the progress.
• Traits in Planning Cluster


  • Systematic planning & monitoring
  • Goal-setter
  • Information-seeker
• Goal-seeker


  Guided by the SMART principle
• Systematic, Planning, and Monitoring


  1. Systematic: Rational and logical approach in performing the activities. Step-by-step procedures that are scientifically designed to follow the preparation of plans and monitoring of activities.

  2. Planning: Setting of goals and objectives.

  3. Monitoring: Evaluation of the activities and adopted courses of action.
• Power Cluster


  • Establishes the relationships of the entrepreneurs with the supplies of raw materials, financial institutions, customers, competitors, the government, employees, and all other stakeholders
• SKILLS AND CORE COMPETENCIES IN ENTREPRENEURSHIP


  • ENTREPRENEURIAL SKILLS
  • KNOWLEDGE
  • PRACTICE AND EXPERIENCE
  • APTITUDE
• Entrepreneurial Skills


  • Personal abilities to do things well
  • Come from the totality of the knowledge, practice experience, and aptitude of a person
• Cognitive Skills


  • Understand written materials
  • Learn and apply new information
  • Solve problems systematically
  • Create new ideas
  • Innovate new products and procedures
• Problem-solving Skills


  • Defining the real problem
  • Gathering information about the problem
  • Formulating alternative solutions
  • Evaluating alternative solutions
  • Selecting and implementing solution
  • Evaluating the decision
• Technical Skills


  • Information technology
  • Feasibility study and business plan preparation
  • Technical writing skills
  • Marketing
  • Management finance
• Interpersonal Skills

  • Verbal Communication
  • Non-verbal Communication
  • Listening
  • Leading
  • Negotiating
• Process of Successful Entrepreneur


  1. Fully understand the concept and principles

  2. Acquires, develop, and sharpens entrepreneurial skills

  3. Equipped with character traits

  4. Strategic support
• The Physical Environment


  • Climate
  • Physical Resources
  • Wildlife
• Environmental Scanning


  Changes in the physical environment have an impact on the societal environment in terms of resource availability and costs, and later, on the industry environment in terms of the growth or decline of particular industries
• Societal Environment - Cultural Forces


  • Religion
  • Beliefs
  • Language
  • Customs
  • Education
• Societal Environment - Social Forces


  • Values
  • Traditions
  • Literacy level
  • Consumer psychology
  • Time orientation
  • Lifestyle patterns
  • Professional career roles
• Societal Environment - Political Forces


  • Trade regulations
  • Taxation
  • Government stability
  • Unemployment
  • Worker's benefits
  • Election practices
• Societal Environment - Legal Forces


  • Advertising and promotion
  • Product control, pricing, and labeling
  • Exercise of profession
  • Health and safety of the workers
  • Education administration and fees
  • Administration of election process
• Technological Forces


  • Internet
  • Social media
  • E-commerce
  • Technological advancement
  • Technological infrastructure
• Environmental scanning


  Gathering critical evaluation, and utilization of information on events and activities and their relationships with physical, societal, and industry environments
• Goal of environmental scanning


  • Clearly portrays the trends, activities, and developments happening in every environmental layer including the interrelated relationships between the various forces in the environment
  • Identifies the expected threats and opportunities existing in the environment
  • Points out the possible factors that will determine the success of the entrepreneurial venture
  • Helps define the future path of the business
  • Assists in the formulation of the most appropriate entrepreneurial strategies
• The different layers of the external environment of microenvironment (e.g., physical, societal, and industry) and all the forces comprising each environmental layer are interrelated
• Analytical approaches for scanning the societal environment


  • PESTEL analysis
  • Environmental forces matrix
• Industry environment


  • Government
  • Suppliers
  • Customers
  • Competitors
  • Employees
  • Creditors
• Industry environment


  The external environmental layer where the trends and changes are easily and immediately felt by the business
• Competition model


  • Potential new entrants
  • Buyers
  • Substitute products
  • Supplier
  • Rivalry among existing firms