ENTREPRENEURSHIP
Self determination – one’s fate
ENTREPRENEURSHIP- pioneering work
of Joseph Schumpeter eventually
resulted of concept of creative
destruction.
- Ability to know what products
and services are needed by
people.
- According to Dr. Ralph Sorensen
it is an art of creating, launching
and growing new venture
business.
ENTREPRENEUR-reference to
individuals who initiated the
establishment of business enterprise.
If you owns a business -business
woman. Manage a business
-professional manager. Bought a
franchise- franchisee.
ENTREPRENEURS PERSONALITY
CHARACTERISTICS AND TRAITS
1. Passion for the business – refers
to eagerness to involved in
commercial activities.
2. Confidence- must have trait.
Belief in themselves and
capabilities to see things.
3.
lies really on one’s self his beliefs
and efforts.
4. Management of Risk-
entrepreneurs how to take risks
but these risks are calculated.
5. Initiative and need for
achievement – great need to
achieve things.
6. Creativity- they are not satisfied
with just copying or doing the
same routine.
7. Seeing the big picture- asses how
particular decisions about
operations can affect business.
Affects as a whole.
THREE BASIC SOURCES OF BUSINESS
RISK
1. Demand risk – risk that the
product will not be accepted by
market.
2. Competitive risk- competitors
may able to replicate the
business model and capture
market.
3. Capability Risk – capability of the
firm, possibility that the products
or services of firm would fail to
deliver what customer paying for.
TOP 5 REASONS WHY FILIPINOS DON’T
GO INTO BUSINESS
1. Money- I don’t have enough
money
2. Time- I’m so busy with a lot of
things.
3. Skills -I’m afraid to fail.
4. Opportunity – That business is
not for me.
5. Connection – I don’t know a lot of
people.
Business plan – learning experience
and force the entrepreneur to organize
her thoughts.
REASONS FOR CREATING A PLAN
1. Vision
2. Opportunity Assessment
3. Financing
4. Market Assessment
5. Implementing the plan
6. Outside failure
BUSINESS FAILURES
1. Poor cash flow control
2. Lack of managerial experience.
3. Undercapitalization
4. Inventory control problems
5. Trade area competition.
6. Poor site location
7. Unidentified target market
8. Pricing strategy
9. Inadequate long-term plan
10. Inadequate financial control.
ELEMENTS TO DETERMINE MARKET
POTENTIAL
1. Market size – first and important
factor. Total markets sales
potential of all.
2. Market growth rate – between
product line extensions and a
completely new concept in
market for example Samsung in
Samsung Galaxy.
3. Profitability – understand market
potential, low profitability
volume needs to be high
calculation
To determine market potential u
can use three main elements
- ROI- Return on investment
- ROS- return on sales
- RONA- return on net assets
- ROCE- return on capital
employed
4. Competition- if industry has high
competition the entry barriers
are going to be high and
establishing yourself will require
deep pockets.
5. Product and consumer type – is
your product a repeat buying
product or one time sale ony?