Entrepreneurship

WHAT IS ENTREPRENEURSHIP?
- It is the process of developing, organizing and running a new business to generate
profit while taking on financial risk.

- The word “entrepreneurship” was derived from the French verb enterprendre, which
means “to undertake.” This is pinpointing to those who “undertake” the risk of
enterprise. The enterprise is created by an entrepreneur and the process is called
“Entrepreneurship.”

RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION

• Development of Managerial Capabilities - this means that one of the benefits an

entrepreneur gets is to develop his managerial skills.
• Creation of Organizations - which means that because of entrepreneurship many
organizations will exist.
• Improving Standard of Living - this means that entrepreneurship can lift up the
economic status of an individual
• Means of Economic Development - this means that not only the life of the
entrepreneur is improved but also the society where the business is located.

COMMON COMPETENCIES IN ENTREPRENEURSHIP

▪ Decisive - an entrepreneur must be firm in making decisions.

▪ Communicator - an entrepreneur must have a convincing power.
▪ Leader - an entrepreneur must have the charisma to be obeyed by his employees.
▪ Opportunity seeker - an entrepreneur must have the ability to be the first to see
business chances.
 ▪ Proactive – an entrepreneur can control a situation by making things happen or by
preparing for possible future problems.
▪ Risk Taker – an entrepreneur has the courage to pursue business ideas.
▪ Innovative - the entrepreneur has big business ideas and he does not stop improving
and thinking of new worthwhile ideas for his business.

TYPES OF ENTREPRENEURS

- Innovative Entrepreneurs - They are those who always make new things by thinking of
new ideas. They have the ability to think newer, better and more economical ideas.
- Imitating Entrepreneurs - They are those who don’t create new things but only follow
the ideas of other entrepreneurs.
- Fabian Entrepreneurs - They are skeptical about changes to be made in the
organization. They don’t initiate but follow only after they are satisfied.
- Drone Entrepreneurs - They are those who live on the labor of others. They are die-hard
conservatives even ready to suffer the loss of business
- Social Entrepreneurs - They are those who initiate changes and drive social innovation
and transformation in the various fields such as education, health, human rights,
environment and enterprise development.

JOB OPPORTUNITIES FOR ENTREPRENEURSHIP AS A CAREER

1. Business Consultant
- They are those who can go to client site, identify problems and fix them. They asses and
create solutions to help the company more efficiently meet its goal. Also known as
management analysts, work in areas that include marketing, human resources,
management, and accounting. The duties for business consultants generally begin with
understanding what clients wish to improve or fix.
Example:
 When Mr. Estenote helps to improve business processes to do better and will
partner with executive management to review their current business operations
processes and make recommendations to improve efficiency, enhance customer
service, and reduce company costs, he is a business consultant.
2. Sales Manager
- Someone who knows how to represent a company, manage accounts and follow up
leads. Their responsibilities include designing and implementing a strategic sales plan
that expands company's customer base and ensure its strong presence.
Example:
Mr. Montes presented the new artistic designs of Montes Arts and Designs in the
market and implemented his strategic plans that will make the designs to be the top of
the mind of the customers. Here, Mr. Montes is a sales manager.
3. Research and Development Officer/Executive/Director
- Someone who understands business concepts, systems, procedures and practices.
Looking for used facts and information, interpreting data and making conclusions, and
recommending courses of action. They are responsible for controlling, coordinating and
carrying out research in various company departments, guaranteeing the continuous
innovation of products and work processes.
Example:
Johnson & Johnson today announced the selection of a lead COVID-19 vaccine
candidate from constructs it has been working on since January 2020; the significant
expansion of the existing partnership between the Janssen Pharmaceutical Companies
of Johnson & Johnson and the Biomedical Advanced Research and Development
Authority (BARDA). Here, they need researchers to do the necessary research and look
into the best and accurate vaccine to offer in the market.
4. Teacher
- These educators train their students to solve business problems, plan for future growth,
and strategize how to run a business efficiently and effectively. Many business
educators have experience working in business as well as a background in education,
 transferring the skills and knowledge students need to become qualified business
professionals.
Example:
Mr. Cabarles inspires young people to have a vision for society. He shares his
experiences and insights about business and success. He also teaches them how to
make business plan and how to implement it. Here, Mr. Cabarles is a teacher.
5. Business Reporter
- Someone who can write articles is in a prime position to take the lead on covering a
local business beat. They write breaking news and business stories in unique and
interesting ways to increase readership.
Example:
Ms. Silva were tasked to give a report on the business story of a full-time
housewife who successfully runs her new recipe of banana. He wanted to get accurate
information. So, he planned to conduct an actual interview to the owner. He prepared
interview questionnaires to be used in gathering the information about the success
story. Here, Ms. Silva is a business reporter.
6. New Venture Creator
- Someone who launch a company, start a new venture in a family enterprise or
commercializing a technology. They are entrepreneurial people whose primary role is in
creating new business via creating new start-ups or scaling growing companies, having
significant and direct stake in the actual business success.
Example:
Young entrepreneur, LM Bais, turned his school science project into an eco-
friendly social enterprise. Project Langga PH manufactures Eco-Uling which are
charcoals made of water hyacinth, agri-forest wastes and coconut husks. LM Bais is a
new venture creator.
7. Career in an Existing Entrepreneurial Venture
 - Someone who works in an existing business or company. They could be a teller in a
bank, receptionist in a hotel, admin staff of a school or be an advertising agent of a
specific company.
Example:
Mr. Edison Alvarez is a fresh grad with a degree in BS Entrepreneurship, he was
hired as a bank teller by a commercial bank. His work involves depositing and
withdrawing money of his clients. Mr. Edison is working in an existing entrepreneurial
venture, specifically, a commercial bank.

What is a Business Plan?

- Is a written document describing the nature of the business, the sales and marketing
strategy, and the financial background, and containing a projected profit and loss
statement.
Some people think you don't need a business plan unless you're trying to borrow money. But a
business plan is more than a pitch for financing; it's a guide to help you define and meet your
business goals. A business plan won't automatically make you success, but it will help you avoid
some common causes of business failure, such as under-capitalization or lack of an adequate
market. One could not write a business plan without going into the first process which is looking
into the business concept.

Business Concept

- is an idea for a business that includes basic information such as the product (goods or
services), the target demographic, and a unique selling proposition that gives a company
an advantage over competitors.
- A business concept may involve a new product or simply a novel approach to marketing
or delivering an existing product. Once a concept is developed, it is incorporated into a
business plan.
To bring about the business concept, the entrepreneur should be able to recognize an
opportunity in terms of product (goods or services).
Product opportunity

- exist when there is a gap between what is currently on the market and the possibility for
new or significantly improved products that result to emerging trends.
- Opportunity recognition is relevant to an entrepreneur, it is the active, cognitive process
(or processes) through which individuals conclude that they have identified the
potential to create something new that has the potential to generate economic value
and that is not currently being exploited or developed, and is viewed as desirable in the
society in which it occurs (i.e. its development is consistent with existing legal and moral
conditions)
People might be wondering how entrepreneurs come up with potential products. Systematic
innovation involves “monitoring seven sources for innovative opportunity” (Drucker, 1985, p.
35). The first four (4) are internally focused within the business or industry, in that they may be
visible to those involved in that organization or sector. The last three (3) involve changes outside
the business or industry or externally focused.

Internally Focused

1. The unexpected (unexpected success, failure, or outside events).

- An entrepreneur may be able to discover opportunity such as in failures like

overproduction of fresh tomatoes thus the entrepreneur was able to preserve tomatoes
through drying or boiling.

2. The incongruity between reality as it actually is and reality as it is assumed to be or as

it ought to be.

- Children doesn’t choose vegetables over meat but now in reality entrepreneurs are
making ways that children will love vegie foods like shawarma, vegie dumplings and the
like.
3. Innovation based on process need.

- In the pandemic times, medical face mask become scarce to cope with the need,
entrepreneurs provided reusable facemask for nonmedical practitioners.
 4. Changes in industry structure or market structure that catch everyone unawares.

- The market competition becomes an opportunity like the popping up of convenience

stores which grew like mushrooms around the city blocks.
Externally Focused

• Demographics (population changes).

- Like age, status, race, sex is an entrepreneurial bases for opportunity for each factor
needs to be considered in providing goods and services.
• Changes in perception, mood, and meaning.
- The uniqueness of every individual creates differentiation of the offered goods and
services like the choice of perfume scents.
• New knowledge, both scientific and non-scientific.
- Acquired information both from scientific or in non-scientific way can easily get into the
ideas of an entrepreneur.

There are two (2) ways to recognize opportunities: discovering or creating

Entrepreneurs discover opportunities when they search for them in existing markets. This
means they observe technological, economic or social trends. Recognizing opportunities is a
cognitive process. It relies on the ability of people to recognize patterns and connect the dots.

Entrepreneurs create opportunities when they engage with others in bouncing ideas back and
forth, and each time it becomes more specific what the user needs are and how they are going
to be solved. Creating opportunities is a social process. It relies on the ability of entrepreneurs
to interact.

It is up to you as an entrepreneur which way is most suitable for you and which actions to take
to enable opportunity recognition.
Design thinking is a human-centered approach to innovation that draws from the designer’s
toolkit to integrate the needs of people, the possibilities of technology, and the requirements
for business success – Tim Brown, president and CEO.

The design thinking process is best thought of as a system of overlapping spaces rather than a
sequence of orderly steps. There are three (3) spaces to keep in mind: inspiration, ideation, and
implementation. Inspiration is the problem or opportunity that motivates the search for
solutions. Ideation is the process of generating, developing, and testing ideas. Implementation
is the path that leads from the project stage into people’s lives.

To deliver products that solve your target customers’ problems, you must first identify
market problems. These problems may be stated directly as customer needs or implied
indirectly.

Stated needs are explicit statements from your market that declare, “I want a product to
do X.” While stated needs are important, they are not as powerful as silent needs, which are
problems with as yet undefined solutions.

Your market is consists of:

• Existing customers: People who have already purchased your product;

• Prospects: People who have not yet purchased your product but are considering it and,
• Target market users: People in your target market who are not currently looking for a
solution.

The key is to balance your focus to ensure that you are really listening to your entire market at
the same time.

Key factors in order to make solutions to the problems:

• Don’t focus only on innovation and the competition, focus in solving the problem.
• Don’t focus only on customers. Customers understand problems, but they cannot help
you to move your product forward. They know what you provide, and tend to stay
inside that mindset.
 • Don’t Focus only on revenue. It is critical to find a balance between prospects and
customers to ensure that your future revenue is protected, while still keeping existing
customers happy.

Spotting Business Opportunities

- Anyone can spot the opportunities either by watching others having a problem or find a
solution to their own problem which many others may also be facing.
- Observation skills and keeping an ear to the ground are traits of successful
entrepreneurs. Spotting an opportunity is the only first step but to convert the idea to a
business requires good execution skills.
- The opportunity should also have sufficient market. If the market already has similar
products / services, how can one differentiate their product from others will determine
whether opportunity becomes a reality. Business opportunities are like buses. If you
miss one, there is always another one.