ENTREP 1

• ENTREPRENEURSHIP

  • The process by which an individual or a group of individuals (entrepreneurs) exploit a commercial opportunity, either by bringing a new product or process to the market or by substantially improving an existing good, services or method of production.
• ENTREPRENEUR

  • An owner of a business who invests resources to bring an idea to life.
  • A person who organizes the means of production to engage in entrepreneurship, often under considerable uncertainty and financial risk.
• The term “entrepreneur” originates from the French word entreprendre which means to undertake.
• FEASIBILITY

  • The possibility that can be made, done, or achieved, or is reasonable.
• Obstacles commonly faced

  1. Overcoming Bureaucracy

  2. Hiring Talent

  3. Obtaining Financing
• PROCESS

  Idea Generation - Developing Business Model - Resourcing - Promotion - Actualization - Harvesting
• WAGE EMPLOYMENT 

  • Work for others
  • Follow instructions
  • Earning is fixed, never negative
  • Routine Job
  • Does not create wealth
• VS. ENTREPRENEURSHIP

  • Own boss
  • Make own plans
  • Create activity
  • Can be negative, sometimes generally surplus
  • Creates wealth
• CHARACTERISTICS of an Entrepreneur

  1. High degree of Commitment

  2. High energy level

  4. Desire for Responsibility

  3. Foresightedness

  5. Risk Taking Ability

  6. Leadership and Managerial Skills

  7. Value for Achievement over money

  8. Open-mindedness and Optimism
• MENTAL ABILITY - Must have creative thinking and must be able to analyze

  problems and situations. He should be able to anticipate changes.
• BUSINESS SECRECY - He should guard his business secrets from competitors.
• CLEAR OBJECTIVES - He must have clear objectives as to the exact nature of business or the nature of goods to be produced.
• HUMAN RELATIONS - He must maintain good relations with his customers, employees, etc. to maintain good relationships he should have emotional stability, personal relations, tactfulness and consideration.
• COMMUNICATION ABILITY - He should have good communication skills, meaning both the sender and the receiver should understand each other's message.
• IMPORTANCE OF ENTREPRENEURSHIP

  • Reduce Poverty Level
  • Increases Employment
  • Fulfills the demand
  • Helps to develop the economic condition of a country
• ECONOMICS - The study of how people choose to allocate scarce resources to fulfill their needs and wants.

  1. What to produce and in What Quantity?
  2. How should goods and services be produced?
  3. For whom should goods and services be produced?
• COMPETITION - a rivalry where two or more parties strive for a common goal

  which cannot be shared.
• MARKET STRUCTURES - The nature and degree of competition among businesses operating in the same industry.
• Difference between a businessman and entrepreneur

  • An entrepreneur is an individual having an exclusive idea to establish a new venture. Entrepreneurs are market leaders.
  • A businessman is an individual who establishes a business with an old business idea. Businessmen are market players.
  • Not all businessmen are entrepreneurs, but every entrepreneur is a businessman.
  • An entrepreneur is a leader, while a businessman is a boss.
• BUSINESS PLAN

  • A written document that describes in detail how a business is going to achieve its goals.
• DO YOU REALLY NEED A BUSINESS PLAN?

  1. To raise money for your business.

  2. To make sound decisions

  3. To help you identify potential weaknesses

  4. To communicate your ideas with stakeholders
• Title Page and Contents

  Contains the ff:

  1. Business Logo
  2. Document Title and Business Name
  3. Name of the business proponents (owners of the business)
  4. Business address and contact information
  5. Business plan completion date
  6. Confidentiality statement
• BUSINESS PLAN

  • A document that helps the entrepreneur determine what resources are needed to achieve the objectives of the firm
  • Formal written expression of an entrepreneur’s vision that converts opportunities into a profitable undertaking.
  • Provides standard as basis for evaluating the results of performance
• I. Title Page and Contents - The cover page contains the following list:

  1. Name of the business
  2. Business logo
  3. Name of the proponents (owner, entrepreneur)
  4. Business address
  5. Telephone number
  6. E-mail, Facebook account and Website address
• EXECUTIVE SUMMARY - is a brief introduction and summary of your business

  plan. It should describe your business, the problem that it solves, your target market, and financial highlights.
• Management/Business Organizational Structures 

  • The ladder of your business organization, from the highest position down to the lowest staff member of the company.
• UNIQUE SELLING PROPOSITION is a statement of what makes your business unique and ultimately valuable to your prospective customer or target audience. Essentially, it answers the questions… How are you better than your competition?

  Why should the customer choose you over your competition?
• VALUE PROPOSITION - describes what your company is offering, to whom you are offering it to, and how it solves your customer’s problem.
• BUSINESS CONCEPT is a statement that describes the reach and reason of existence of a given business idea. In other words, it

  sums up the crucial elements that define the business. It is about the directions and forms of its operations. Business concept is a bridge between an idea and a business plan. It focuses one’s thinking so that the entrepreneur can identify the specifics of his/her proposed venture.
• 1. INFRASTRUCTURE CONCEPT - is a business idea that involves the creation and development of a structure, facility or building. This type of business concept determines what the need for the new infrastructure is and how it can benefit people, such as building a new highway to help reduce traffic issues.
• 2. BUSINESS-TO-BUSINESS CONCEPT - involves creating an idea that provides services and products to other businesses, instead of consumers.
• 3. CONSUMER-GOODS CONCEPT - is an idea of a new product to present to the consumer market.
• 4. CONSUMER-TO-CONSUMER CONCEPT - involves an idea for one consumer to sell a product or service to another consumer.
• 5. E-COMMERCE CONCEPT - is an idea that involves selling a product or service electronically.
• 6. MOBILE CONCEPT - is an idea revolving around services or products provided through mobile devices like phones and tablets.
• 7. CONSUMER SERVICE CONCEPT - is an idea that brings a new and innovative service to the consumer market.
• 8. SMALL BUSINESS CONCEPT - involves an idea for creating a small business, often to provide a central product or service to consumers.
• HOW TO BE A SUCCESSFUL ENTREPRENEUR

  1. Know your Product or Service - believe in the product or services that you will offer to your customer.
• HOW TO BE A SUCCESSFUL ENTREPRENEUR

  2. Analyze the Market Potentials - The wider the market potential, the more chances of growth and success.
• HOW TO BE A SUCCESSFUL ENTREPRENEUR

  3. Determine the Marketing Strategy - a unique product or service needs an effective distribution strategy to get customers into the basket of demand potential.