3RD QUARTER EXAM REVIEWER Flashcards
The concept of entrepreneurship was first established and the meaning is evolved ever since
1700’s
He Focus on how the entrepreneur’s drive for innovation and improvement creates upheaval and change
JOSEPH SCHUMPETER (1883-1950)
At the heart of capitalism is creative destruction
JOSEPH SCHUMPETER (1883-1950)
Describe entrepreneur as someone who actually searches for change, responds to it and change as an opportunity.
PETER DRUCKER (1909-2005)
Entrepreneurship is “the process of creating or seizing an opportunity, and pursuing it regardless of the resources currently controlled.”
HOWARD H. STEVENSON
4 TENETS ON ENTREPRENEURSHIP BY HOWARD H. STEVENSON
- Entrepreneurship flourishes in community where resources are mobile.
- Entrepreneurship is greater when successful members of a community reinvest excess capital in the projects of other community members.
- Entrepreneurship flourishes in communities in which success of other community members is celebrated rather than derided.
- Entrepreneurship is greater in communities that see change as positive rather than negative.
As someone who exercise initiative by organizing a venture to take benefit of an opportunity and, as the decision maker decides what, how and how much of a good or service will be produced.
ENTREPRENEUR
are the qualities or ideas which each of us cares about, upholds, and considers important.
VALUES
They can be morally or ethically based or simply based on our natural wants and needs.
We tend to act according to the things we value
VALUES
is one’s individual perception of right and wrong, good and evil
MORALITY
believes that the moral law is within each of us, guiding us in our actions.
IMMANUEL KANT
Is a set or system of behavior based on moral ideals. Some of the most basic ethical concepts include honesty, integrity, justice, equality, and respect.
ETHICS
Will not punish who breaks its rules
ETHICS
Is about what is right and wrong
ETHICS
We can always wish that all ethical behavior would be upheld by law. But this does not always happen.
ETHICS
Is about what is lawful and what is unlawful
LAW
Will go after violators and mete out sometimes too harsh penalties, penalties that may break ethical standards
LAW
Is made with ethics as a guiding principle; it is ethics “codified” for the purpose of regulating and maintaining order in society
LAW
Consumers are getting increasingly educated and aware of their rights.
BUILD CONSUMER LOYALTY
Employees, the efficient and talented ones, will stay long with a company only if they believe in it, are proud of it, and are happy in it. They would want to be compensated fairly for the work and commitment they put in.
KEEP GOOD EMPLOYEES
Only happy employees can make customers happy — an application of the principle “You cannot give what you do not have.”
IMPROVE PRODUCTIVITY IN THE WORKPLACE
- A business may ignore worker safety
- Underpay their employees or refuse to give them legally mandated benefits.
AVOID LEGAL PROBLEMS
- It may violate environmental regulations such as having a proper waste disposal system. Or possibly ignore proper labeling and packaging laws.
- Install “jumpers” to reduce their utility costs.
AVOID LEGAL PROBLEMS
The penalty for these violations may be severe, including fees, fines and sanctions and even imprisonment, not to mention a severely blemished reputation that would be very hard to erase from the public’s mind.
AVOID LEGAL PROBLEMS
is quoted to have said, “A business that makes nothing but money is a poor kind of business.”
HENRY FORD
is an invaluable tool for any entrepreneur.
BUSINESS PLAN
It is a written document, which precisely defines your business whether it is a single proprietorship, partnership or a corporation.
The details of business financial plan. It explains who is in charge and the duties of the staff.
BUSINESS PLAN
It identifies your goals and serves as your enterprise resume.
BUSINESS PLAN
It helps you handle unforeseen complications, and make the right decisions.
BUSINESS PLAN
A BUSINESS PLAN HAS THREE PRIMARY PURPOSES:
- TO SERVE AS AN ACTION PLAN
- TO SERVE AS A ROAD MAP
- RO SERVE AS A SALES TOOL
This will help an entrepreneur pull apart the pieces of starting a business and examine each piece by itself.
TO SERVE AS AN ACTION PLAN
It is an invaluable tool to help the entrepreneur on track of its goal and guides the business to achieve what it intends to pursue.
TO SERVE AS A ROAD MAP
- A well-written business plan can convince potential financiers to put money in the business.
- To assist management in
goal-setting and long-range planning. - To explain the business to other companies with which it would be useful to create an alliance or contract.
- To attract employees.
TO SERVE AS A SALES TOOL
BASIC PARTS OF A BUSINESS PLAN
- COMPANY DESCRIPTION
- MISSION STATEMENT OF TYPE BUSINESS
- LONG AND SHORT-TERM GOALS
- ORGANIZATION (ORGANIZING, CONTROLLING AND DIRECTING)
- PRODUCT (OR SERVICE)
- PRICE
- PROMOTION AND POSITIONING
- TARGET MARKET
- COMPETITIVE ANALYSIS
- FINANCIAL INFORMATION
- SWOT ANALYSIS
- TIMETABLE
a compilation of your company’s strengths, weaknesses, opportunities and threats.
SWOT ANALYSIS
The primary objective is to help organizations develop a full awareness of all the factors involved in making a business decision.
SWOT ANALYSIS
- Things your company does well
- Qualities that separate you from competitors
- Internal resources such as skilled, knowledgeable staff
- Tangible assets such as intellectual property, capital, proprietary technologies etc.
STRENGTHS
- Things your company lacks
- Things your competitors do better than you
- Resource limitations
- Unclear unique selling proposition
WEAKNESSES
- Underserved markets for specific products
- Few competitors in your area
- Emerging need for your products or services
- Press/media coverage of your company
OPPORTUNITIES
- Emerging competitors
- Changing regulatory environment
- Negative press/media coverage
- Changing customer attitudes toward your company
THREATS
