entrepreneurship

• entrepreneurship

  • one of the most important inputs in the economic development of a country.
• entrepreneur

  • supplies risk capital as a risk taker and monitors and controls the business activities
• entrepreneurship

  • has the ability to improve standards of living and create wealth, not only for the entrepreneurs, but also for related businesses
• entrepreneurship

  • Professor Nathalial Left as cited by Fajardo (1994,) the capacity of innovation, investment and expansion in new markets, products and techniques
• entrepreneurship

  • Coloma & Herrera (2004,) the capacity and quality of an individual to effectively manage a business towards customer satisfaction and profitability of services
• entrepreneurship

  • professor hirsh as cited by fajardo (1994,) a mission
• types of entrepreneurships:

  1. small business
  2. scalable startup
  3. large company entrepreneurship
  4. social entrepreneurship
• small business

  • could be any company, restaurant, or retail store that’s launched by a founder, without any intention of growing the business into a chain, franchise, or conglomerate
  • focus initially on a single product, market, or locality
  • initial goal of small business entrepreneurs is to make a profit, although even in its early stages, the business may be motivated by the entrepreneur’s desire to affect social change
  • either self-funded or funded through small business loans
• scalable startup

  • less common than small businesses, though they tend to attract a lot of media attention
  • nurtured and scaled, typically through the involvement of outside investors, until it becomes something much larger
  • have a vision for growth from the outset
  • not just to make profits but also to generate revenues they can invest back into the business, fueling growth
  • venture capital - most common way to fund a scalable startup
• large company entrepreneurship

  • the creation of a new business entity within an existing company
  • address the needs and opportunities of an existing business through innovation
  • look to branch into new customer markets, broadening the reach of an established business
  • may entail the acquisition of new companies and resources, or investment in research and development
• social entrepreneurship

  • “are willing to take on the risk and effort to create positive changes in society through their initiatives."
  • money that’s generated is put toward advancing the company’s mission and maintaining necessary overhead but not necessarily toward corporate growth or expansion
  • often involves alternative forms of fundraising, which may include grants, sponsorships, or small donor fundraising within the community
• resources:

  1. physical
  2. human
  3. intellectual
  4. financial
• physical resources

  • considered as tangible assets which the organization uses to create value offering and value proposition to its customers
  • important for the functioning of the organization
  • ex. equipment, buildings, inventory, the manufacturing plant, and distribution network
• human resources

  • employees - most underrated assets of any organization
  • important for the functioning of any organization, will become a "standstill"
• intellectual resources

  • nonphysical and intangible in nature
  • patents of the product, brands of the organization, copyright over important materials and even the partnerships
  • customer data, customer knowledge, and talent
• financial resources

  • cash, credit, and lines of credit along with the ability to have options of stock plans for the employees of the organization
• the entrepreneur

  • an individual who creates a new business, bearing most of the risks and enjoying most of the rewards
  • operates and organizes businesses, taking on greater than normal financial risks to do so
  • organizing productive resources to produce goods and services
  • takes on the risk and seeks to fill a need on her own terms
• core competency

  • specific set of skills, knowledge, and experience that enables one entrepreneur or business to outperform its competitors

  1. conceptual skills
  2. human skills
  3. technical skills
• conceptual skills

  • ability to see the business, see the interdependence of different areas, understand their dependence on one another, and change or influence one over the others
  • ability to assess a situation and determine how to divide it into manageable pieces
• human skills

  • ability to comprehend, modify, lead, and control the actions of other people and groups
• technical skills

  • skills required to perform a specific type or line of work or occupation effectively
• qualities of a good entrepreneur

  • opportunity seeker
  • goal setter (smart)
  • planner
  • risk taker
  • hard worker
  • persistent worker
  • confident problem solver
  • committed worker
  • salesman
• how to become an entrepreneur

  1. find the product you will profitably sell
  2. develop your product
  3. test your product
  4. make a business plan
  5. secure the funding you require through self-funding or, if necessary, a loan
  6. start your business
  7. sign up for a course on entrepreneurship
• product

  • heart of your business
  • can be handcrafted or manufactured
• dropshipping

  • option if you do not want to keep inventory
  • retail fulfillment method where a store does not keep the product it sells in stock
• business plan

  • document that describes concept, identifies your market, sets your financial goals and sales projection
  • indicates how you will promote your business, distinguish yourself self from the competition, and run the business to achieve those goals
• bootstrapping

  • "small business loans"
  • almost every entrepreneur uses the methos
  • common with first-time entrepreneurs
  • allows the entrepreneur to retain ownership and control over their business
• importance (fajardo, 1994)

  • develop new markets
  • discover new sources of materials
  • introduce new technologies, new industries, and new opportunities for workers
  • create employment