Entrepreneurship

• It ability of an individual to determine and come up with the proper combination of the resources available in his environment and transform this into an output of either goods or services, and obtain a fair profit at the price the entrepreneur sets.

  Entrepreneurship
• It entails the activities of spotting opportunities, conceptualizing these ideas into business opportunities, identifying and using resources in his environment, making use of these resources to produce products and make profits out of them. It also includes a set of behaviors, skills and attributes conducive to the development of innovation and creativity.

  Entrepreneurship
• (10) CHALLENGES IN ENTREPRENEURSHIP

  1. Creating the right opportunity

  2. Working long hours, often to pay

  3. Dealing with uncertainty and high risk

  4. Needing to make major decisions that frequently affect others

  5. relying on other people for expertise and resources

  6. Having no previous experience in this type of business

  7. Facing failure at some point

  8. Finding the right people for your team

  9. raising capital and other resources

  10. Dealing with a sense of isolation and disillusionment
• Before embarking into a business, you have to consider the techniques in identifying business opportunity in order to avoid failures.

  Creating the right opportunity
• If you start a business, you must be willing to invest most of your time until such time that it has become progressive. For the first year of operation of your business you should still be willing to all job connected to your business.

  Working long hours, often to pay
• This means that there is no assurance as to whether your business will be profitable or not. There will be times that your business will meet its downfall or not giving you the expected gain or profit. Hence your business is at high risk or guaranteed failure in the business

  Dealing with uncertainty and high risk
• In every task that we do there is always a need to make great decisions,

  ▪ Identify the problem.

  ▪ Analyze the possible solutions.

  ▪ Evaluate the possibilities that bring you closer to your goal.

  ▪ Make the decision.

  Needing to make major decisions that frequently affect others
• This means that there is no monopoly of knowledge and skills. We always need the expertise and resources of other people to implement our business plans.

  Relying on other people for expertise and resources
• This means lacking past experienced about the business you are starting-up

  Having no previous experience in this type of business
• In operating a business, we expect that there will always be a downfall or deterioration of its earnings or profit. Hence, we should be ready to face it and think of good solutions of problems that may cause failure in the operation of the business.

  Facing failure at some point
• It means selecting the right people for the right job. As a business owner one must know the qualifications of people who will work with him. He must select those who have the knowledge and skills about the business he is going to put up.

  Finding the right people for your team
• before you start-up a business you must have enough capital or assets and other resources needed for the business. This is another challenge for you to consider before starting up a business.

  Raising capital and other resources
• entrepreneurs who are feeling isolated probably don't call it isolation. Instead, they may define it as stress, tension, anxiety, or even just "being in a funk."

  - state of disappointment that arises from the failed realization of expectations or hopes.

  -

  Disconnection

  Dealing with a sense of isolation and disillusionment
• Contributions of Entrepreneurship to the Economy (7)

  1. Entrepreneurship employs the various resources present in the economy

  2. Entrepreneurs need manpower for their business operations.

  3. Entrepreneurship is the backbone of the economy

  4. Entrepreneurs is in their ability to innovate goods and services

  5. Entrepreneurs is in their ability to gain international popularity and prestige for their country

  6. Entrepreneurs is their willingness to take risk, risk that society will otherwise be hesitant to take

  7. Entrepreneurs also profoundly inspire budding and potential entrepreneurs.
• Advantages of Entrepreneurship (7)

  1. An entrepreneur has the opportunity to create his own venture

  2. He has the opportunity to be financially well-off

  3. He has the opportunity of knowing himself better

  4. It gives a great amount of freedom

  5. It can be exciting

  6. It allows you to set your own earnings.

  7. It offers flexibility.
• Disadvantages of Entrepreneurship


  1. It requires you to dedicate a huge amount of time.

  2. It can be difficult to compete with other businesses

  3. It does not guarantee 100% success

  4. It comes with unpredictable work schedules
• Social and Economic Impact of Entrepreneurship

  1. Entrepreneurship Creates Employment

  2. Entrepreneurship improves the quality of life

  3. Entrepreneurship brings social benefits through government

  4. Entrepreneurship utilizes and mobilizes resources to make the country productive

  5. Entrepreneurship contributes to more equitable distribution of income and therefore eases social unrest.

  6. Entrepreneurship as a Self-employment decision
• CATEGORIES OF THE STUDY OF ENTREPRENEURSHIP

  Environment

  Enterprise

  Entrepreneur
• A person who operates a business. One who organizes, manages and assumes the risk of a business or an enterprise. An entrepreneur is somebody who has ideas and makes these ideas happen or come to life. He must have some business skills, these skills should not only pertain to ideation, but also to the skills of organizing and running a business. He is somebody who assumes risks and desires to make profit.

  Entrepreneur
• THE ROLE OF AN ENTREPRENEUR


  The entrepreneur:

  - takes risks

  - produces capital

  - introduces innovation

  - organizes the business

  - makes decisions

  - plans ahead

  - sells his product at a profit
• THE 7 GENERAL CHARACTER TRAITS OF AN ENTREPRENEUR/ ENTREPRENEURIAL QUALITIES

  Entrepreneurs:

  - prefer moderate risks

  - take responsibility for their actions

  - are self-confident

  - seek concrete feedback on performance

  - are task-oriented

  - are achievement-oriented

  - are creative
• Vicious cycle of development


  Employment and Income

  Saving and Taxes

  Entrepreneurs Investment
• 3 clusters of PERSONAL ENTREPRENUERIAL COMPETENCIES (PEC)

  Achievement Cluster

  Planning Cluster

  Power Cluster
• Under Achievement Cluster

  Opportunity seeking

  Persistence

  Commitment to work contract

  Risk-taking

  Demand for efficiency and quality
• Under Planning Cluster

  Goal setting

  Information seeking

  Systematic planning and monitoring
• under Power cluster

  Persuasion and networking

  Self confidence
• refers to an entrepreneur's basic skill of being able to quickly spot and identify possible profitable business endeavors. He must be capable of assessing a market situation, seeking discrepancies between current production processes, market demands, gaps between sellers and buyers, and knowing how can turn the market situation inti a profitable business venture.

  Opportunity seeking
• pertains to how persevering one can be despite many obstacles and failed attempts to be successful. An entrepreneur does not easily lose heart or give up, and is constantly willing to try and try again until he succeeds.

  Persistence
• refers to an entrepreneur keeping his word or promise. His word is his bond. He makes sure he can deliver what he says he can no matter what condition he may be in.

  Only make promises you know you can keep, and keep them. If you are in doubt of your ability to keep a promise, don't make that promise. Making and keeping a promise can become a habit. So can breaking it.

  Commitment to work contract
• an entrepreneur knows how to assess the hazards and perils of the situation, and carefully calculates his chances of success and profits. He does not hastily decide, but makes a decision based on the action's costs and benefits. If the perceived risks are of a moderate nature, he takes it.

  Risks are always present in the decisions you make, especially as entrepreneurs. Before making major decisions, it would always be wise for you to assess the risks involved. Whenever possible, quantify your decisions. Numbers help a lot in decision making, especially in business.

  Risk taking
• an entrepreneur is a person who exacts from himself and others a set standard for class and good workmanship. He is known to produce consistent results as required by his clients, achieving customer satisfaction without unnecessary wastage.

  A good entrepreneur knows what quality is all about. He exacts this not only from employees but also from himself. He sets an example to his subordinated, and tries his best in developing a culture of quality and efficiency in his organization.

  Demand for efficiency and quality
• refers to an entrepreneur's ability to set realistic and attainable objectives. An entrepreneur is a go-getter. He sets his heart on something, and makes sure he can achieve it.

  Goal setting
• an entrepreneur constantly updates himself with relevant facts from varied sources. He must be aware of past, current and future issues affecting his enterprise. He makes sure he gathers all needed facts before making an informed decision.

  A key characteristic of an entrepreneur is his ability to obtain the correct information at a proper time. An entrepreneur knows where and how to get his information. He has to do his homework. His network should not only extend to business transactions but also to a strong information network. Many successful business communities are strong in this aspect.

  Information seeking
• an entrepreneur's ability to systematically plan and monitor refers to his innate competency to make preparations and ready himself and his enterprise to undertake a business venture. Thus, his development blueprint and steps to achieve a goal must be very clear. He must take the necessary time and effort to make sure that when the plan executed, tasks and objectives are being achieved.

  Systematic planning and monitoring
• pertain to an entrepreneur's capability of being able to influence others, urging them to agree with him while networking refers to his ability to socialize and develop strong connections with other people and institutions.

  To persuade people, never directly imply the decision or the action's benefit to yourself. Rather, focus on the benefits of the decision or the action to the individual you are persuading. The more they see how it would affect them, the easier it is for you to draw their support.

  Persuasion and networking
• an entrepreneur's self-confidence refers to his sense of security with himself, allowing him to face other people, his customers and situations without much fear or intimidation. He is sure of himself and his abilities, skills and talents and uses them when called for without hesitation.

  Self-confidence
• It means creating new business from scratch or from zero.

  start-up
• Techniques in Business Opportunity Identification

  1. Find a business opportunity in every market need.

  2. Study demand and supply gaps

  3. Study import-export movements

  4. Capitalize on available resources

  5. Adapt, complement, reshape

  6. Explore forward-backward industry linkages

  7. Screen and select the best investment alternative
• Sources of Product Ideas


  1. Chance happening.

  2. Personal interest or hobby

  3. Friends and relatives

  4. Family business

  5. Suggestions

  6. Education or courses

  7. Prior work experience

  8. Research and Development

  9. Creative problem solving

  10. Focus group discussions

  11. Brainstorming

  12. Problem inventory analysis

  13. Other means
• Spotting Opportunities


  a. Market need

  b. Location

  c. Hobby of the people

  d. Available materials in the community

  e. Your interest and know-how