ENTREPRENEURSHIP

• Starting a business


  A positive decision on the part of the entrepreneur to exploit entrepreneurial opportunities which are important and a worthwhile endeavor
• Reasons for starting a business

  • Financial stability
  • Self-fulfillment
  • Helps the family
  • Provide employment to others
• Start Up Enterprise


  A company which is recently formed, where the founder establishes a completely new business from scratch
• Buying an Existing Business


  Business is acquiring either the shares of an existing company or all of the assets of an existing enterprise
• Franchising


  When the "owner of the company that already has a successful product or service, licenses its trademark, trade name, and methods of doing business to others in exchange for an initial franchise fee and royalty payments"
• Focus and Direction


  • There should be a clear and documented vision-mission and strategies to begin with
  • Start right by "beginning with the end in mind"
• Sources of Capital


  • Personal
  • Family and friends
  • Retirement account
  • Banks/financial institutions
  • Government loan
  • Stock market
• Good Network


  • Building good relationships and working with other people could help start the business
  • Formal networks, like associations and professional groups, as well as informal networks, like childhood friends, family members, and former classmates, can be drivers to build self-confidence and direction, providers of information that are not readily accessible to others, suppliers of raw materials, and serve as mentors/coaches
• Legal Requirements


  • It is very important to know the laws and regulations that govern the type of business that will be opened to avoid major problems that can arise if legal requirements are overlooked
• Degree of Risk


  • A business is said to be risky when the probability or chances of failure is high
  • It means the odds are great in many aspects against starting the business like limited market, stiff competition, high cost of financing the business and few supply of needed labor
• Research and Development


  • The government should provide adequate support to inventors, scientist and engineers and their new technologies to commercialize their R & D products
  • The presence of new technology, science and knowledge transfer from universities and public research centers to new and growing businesses, and support for the creation of new technology –based ventures, are good indicators to start a business in this area
• Personal competencies


  • Creativity, opportunity seeking, self-confidence, persistence, commitment, and risk-taking, as well as technical background (eg. Accounting, personal computing) and related experiences needed to run the particular business, are necessary to start running the business
• Availability of Resources


  • Resources pertain to raw materials, human resources, and machineries / equipment
• Entrepreneurial Opportunity


  A favorable set of conditions that will enable the entrepreneurs to create new products or services by combining resources that will result, not only to profit but for the common good of the society and the environment
• Opportunity Recognition Process


  1. Entrepreneurs should be able to identify, seize, and pursue business opportunities

  2. Successful entrepreneurs are those who can exploit business opportunities
• Potential sources of opportunity in the external context (Drucker)

  • The unexpected
  • The incongruous
  • The process need
  • Industry and market structures
  • Demographics
  • Change in perception
  • New knowledge
• Micro Enterprise


  • It has an asset size not exceeding ₱50,000
  • It is usually a home-based enterprise, operating in makeshift or temporary quarters
  • The owner heads the enterprise and employs from one to not more than 10 people to help him/her
• Cottage Enterprise


  • It has an asset of ₱250,000 but not exceeding ₱500,000
  • It is a home-based business which is often managed and operated by the members of the family
• Small Enterprise


  • It has an asset of ₱500, 000 but not exceeding ₱2.5 million
  • It is owned by an individual or group and has enough resources to continue operating
  • It employs from 10 to 20 people
• Medium Enterprises


  • It has an asset of ₱5 million to less than ₱20 million
  • It is owned by a single individual, business partners, or a corporation
  • It employs more than 20 to 100 people
  • These workers are more skilled and possess technical expertise to run the business with machines/equipment and utilize various quality controls to make the product
• Large Enterprise


  • It has an asset of ₱ 20 million or more
  • It is often owned and managed by a corporation
  • It is large in scope of operation and number of products or services that it offers to the market
  • It employs 100 or more workers who are hired on the basis of their expertise
  • Its Board of Directors is responsible for its governance and it has a Chief Operating Officer to oversee the implementation of the directives of the Board
  • It operates in highly formalized but complex systems of management
• Single Proprietorship


  • Owned and usually managed by one person
  • Registered with the Department of Trade and Industry
• Partnership


  • An association of two or more persons who act as co-owners of a business
  • Each partner contributes money, property, or service to the business
  • Registered with Securities and Exchange Commission (SEC)
• Corporation


  • An artificial being created by operation of law, having the right of succession and the powers, attributes, and properties expressly authorized by or incident to its existence
  • Registered with the Securities and Exchange Commission
• Cooperative


  • A duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve a lawful common social or economic end, making equitable contribution to the capital required and accepting a fair share of the risks and benefits of the undertaking in accordance with the university accepted principles of the cooperatives
  • Registered with the Cooperative Development Authority (CDA)
• Industry Classification


  • Agriculture, Forestry and Fishing
  • Manufacturing
  • Electricity, Gas, Steam and Air Conditioning Supply
  • Water Supply, Sewerage, Waste Management, and Remediation Activities
  • Accommodation and Food Services activities
  • Real Estate Activities
  • Arts, Entertainment and Recreation
• Marketing


  An organizational function and a set of process for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
• Marketing


  The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value
• Marketing


  The performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client
• The 7Ps of Marketing

  • Product
  • Price
  • Place
  • Promotion
  • People
  • Process
  • Physical evidence (environment)
• Product in manufacturing industry

  • Production and consumption of the product are not simultaneous and it is tangible, not always diverse nor usually perishable
• Product in service industry

  • Production and consumption of the product are simultaneous and the product is intangible, diverse, and perishable. The nature of this "product" allows for on the spot customization
• Price in manufacturing industry


  • It is not difficult to put a price tag on a product since the materials that go with it can be measured and its actual tangible cost of production is also measurable
• Price in service industry

  • The ambiance, the experience, and the brand name also factor into the final price offering
• Place in manufacturing industry

  • The place of production or the plant site can be different from the place of distribution or selling
• Place in service industry

  • The service is produced and consumed in the same place. The location of the service provision is carefully analyzed to allow ease of access and the desire to make the effort to reach it
• Promotion in manufacturing industry

  • A service may be more easily replicated than a physical product
• Promotion in service industry

  • To prevent a service becoming interchangeable with its competitors, it becomes vital to create a desirable brand image and name in the market. Differentiation becomes a key goal in order to attract both new and repeat customers
• People in manufacturing industry


  • In the production of a product, the people needed to do the tasks are not directly dealing with the customers, so that the customer service training is not a priority, but production related training is
• People in service industry

  • People element is vitally important in the service marketing mix. Many businesses invest in defining the right kind of person to fill this service role and then making efforts to find or train people to fit this definition