ENTREP Flashcards
is the process of creating a business activity of value to the entrepreneur and the community with the accompanying initiative and risks.
Entrepreneurship
The word “entrepreneur” was derived from the French verb
entreprendre
entreprendre” which means
“to undertake.”
The enterprise is created by an entrepreneur and the process is called?
Entrepreneurship
5 Rewards of going into a business
> > Having unlimited opportunity to make money
Being your own boss
Tapping your creativity
Helping others
Building an entrepreneurial legacy
4 Risks of going into a business
> > Possibility of failure
Unpredictable business conditions
Long hours of work
Unwanted or unexpected responsibilities
2 Factors Affecting Entrepreneurship
Personal and environmental
7 personal factors
INITIATIVE
PROACTIVE
PROBLEM SOLVER
PERSEVERANCE
PERSUASION
PLANNER
RISK-TAKER
what personal factor is this?
doing things before being told
INITIATIVE
what personal factor is this?
seizing opportunities
PROACTIVE
what personal factor is this?
retain good relationships
PROBLEM SOLVER
what personal factor is this?
pursue things regardless of challenges
PERSEVERANCE
what personal factor is this?
convince or entice people to buy
PERSUASION
what personal factor is this?
plans and monitor
PLANNER
what personal factor is this?
calculate then gamble
RISK-TAKER
7 ENVIRONMENTAL FACTORS
DECISIVE
COMMUNICATOR
LEADER
OPPORTUNITY SEEKER
PRROACTIVE
RISK-TAKER
INNOVATIVE
what environmental factor is this?
firm in making decisions.
Decisive
what environmental factor is this?
convincing power
COMMUNICATOR
what environmental factor is this?
charisma to be obeyed by his employees
LEADER
what environmental factor is this?
ability to be the first to see business chances
OPPORTUNITY
SEEKER
what environmental factor is this?
control a situation by making things happen
PROACTIVE
what environmental factor is this?
courage to pursue business ideas.
RISK-TAKER
what environmental factor is this?
thinking of new worthwhile ideas
INNOVATIVE
5 Opportunities provided by the entrepreneurs
- Employment and Income
- Investment
- Taxpayers
- Service providers
- Suppliers of products
what opportunity was provided?
They would be able to provide employment chance for the people and uplift their living.
Employment and Income
what opportunity was provided?
Individuals have now an alternative on where, what and how to make use of their money to grow
Investment
what opportunity was provided?
Business helps the community and the country source an income for the development from the taxes they are obliged to remit.
Taxpayers
what opportunity was provided?
The services they offer will be enjoyed by the community in a convenient way.
Service providers
what opportunity was provided?
They help bring new products and ideas to the market. The products they have to produce is something needed by the community.
Suppliers of products
4 Core Competencies in Entrepreneurship
Economic and Dynamic Activity
Innovative
Profit Potential
Risk Bearing
what core competency is this
It involves the creation and operation of an enterprise with a view to creating value or wealth by ensuring optimum utilization of limited resources.
Economic and Dynamic Activity
what core competency is this
The entrepreneur constantly looks for new ideas, thus he needs to be creative.
Innovative
what core competency is this
The entrepreneur can be
compensated by his profit coming from the operation.
Profit Potential
what core competency is this
The entrepreneur can be
The entrepreneur needs to
gamble but wise enough to offset the risk.
Risk Bearing
5 Types of Entrepreneurs
Innovative Entrepreneurs
Imitating Entrepreneurs
Fabian Entrepreneurs
Drone Entrepreneurs
Social Entrepreneurs
what type of entrepreneur is this
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.
Innovative Entrepreneurs
what type of entrepreneur is this
They are those who don’t create new things but only follow the ideas of other
entrepreneurs.
Imitating Entrepreneurs
what type of entrepreneur is this
They are skeptical about changes to be made in the organization. They don’t initiate but
follow only after they are satisfied.
Fabian Entrepreneurs
what type of entrepreneur is this
They are those who live on the labor of others. They are die-hard conservatives even ready to suffer the loss of business.
Drone Entrepreneurs
what type of entrepreneur is this
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.
Social Entrepreneurs
5 Career Opportunities of Entrepreneurship
. Business Consultant
Researcher
Sales Man/women
Teacher
Business Reporter
is a document containing the
entire skeletal plan of a business
business plan
It is considered as the blueprint of all business
establishments.
business plan
like a road map, which makes it possible to know if the business is on the right track
business plan
Users of The Business Plan
ENTREPRENEURS -
INVESTORS AND FINANCERS
MANAGERS AND STAFF
what user of business plan is this
Set a NAVIGATIONAL COURSE
for the business.
Entrepreneurs
what user of business plan is this
they Decide whether they invest MONEY or not
INVESTORS AND FINANCERS
they manage the STRATEGIES and PROGRAMS for the enterprise
MANAGERS AND STAFF
When to prepare a Business Plan?
*BEFORE OR PRIOR TO SETTING UP AN ENTERPRISE
*DURING THE FIRST FEW YEARS OF THE ENTERPRISE
contains the essence of the enterprise in a concise but powerful manner.
Business concept
is a formula on how the enterprise exactly plans to make money out of the business.
Business model
It stresses the value of the product offering to the target customers who would most likely but it.
Business concept
Four Areas of Money Making in a Business Model
*BUSINESS REVENUES
*COST OF THE ENTERPRISE PRODUCTS AND OTHER
*MAJOR INVESTMENTS OF THE ENTERPRISE
* ENTERPRISE FINANCE AND FUNDING
10 PARTS OF THE BUSINESS PLAN
I. Introduction
II. Executive Summary
III. The business proponents
IV. Target market and the main value propositions
V. Macro environmental factors
VI. The Product and Service Offerings
VII. Enterprise Strategy and Enterprise Delivery
System
VIII. The financial forecasts and expected returns
IX. Environmental and regulatory compliance
X. The capital structure and financial offering
Contains everything that is relevant and important about the business plan
Executive Summary
The synthesis of the entire plan
Executive Summary
Can only be written LAST
Executive Summary
HIGHLIGHTS OF A GOOD BUSINESS PLAN
BUSINESS PROPONENTS AND PARTNERS
ENTERPRISE ORGANIZATION AND ITS CAPABILITIES
TECHNOLOGY PROVIDER AND THEIR EXPERIENCE
THE SUPPLIERS AND MAJOR SERVICE PROVIDER
Third section of the business plan that contains the details about the business owners and the stockholders.
III. The Business Proponents
4 Types of Stockholders
- RESOURCE MOBILIZERS AND FINANCIAL BACKERS
- TECHNOLOGY PROVIDERS AND APPLICATORS
3.GOVERNANCE AND TOP MANAGEMENT - OPERATING AND SUPPORT TEAM
They want to know who else on board to share
the burden of raising money for the business.
RESOURCE MOBILIZERS AND FINANCIAL BACKERS
They want to know if there are sufficient funds
to pay for the technology.
TECHNOLOGY PROVIDERS AND APPLICATORS
They want to know what strategies and
performance indicators are being proposed.
GOVERNANCE AND TOP MANAGEMENT
They want to know what programs, activities, tasks and resources that would be in place.
OPERATING AND SUPPORT TEAM
*Fourth section of the business plan
The Target Customers and Main Value Proposition
must be of sufficient size, sufficient paying capacity and have sufficient interest to purchase the products being offered by the enterprise.
Target Customers
is the unique selling
proposition of the industry.
Main Value Proposition
Fifth section of the business plan
Market Demand and Supply,Industry Dynamics and the Marcro Environmental Factors
Demand states that ceteris paribus (“all other things being equal”), as the price of the corresponding goods increases, its quantity demanded decreases.
Law of Demand
Demand states that ceteris paribus (“all other things being equal”), as the price of the corresponding goods increases, its quantity supplied also increases vice versa.
Law of Supply
The relevant industry dynamics except?
*Competing strategies in the industry
*Main Value Proposition
*Suppliers in the industry
*Channels of distribution
*Main Value Proposition
(the 3 relevant industry dynamics except)
*Competing strategies in the industry
*Suppliers in the industry
*Channels of distribution
V. MACRO ENVIRONMENTAL FACTORS
WHAT ARE THE 5 ENVIRONMENTAL FACTORS
Political Environment
Economic Environment
Social environment
Technological Environment
Ecological Environment
what macro environmental factor is this?
defines the governance
system of a country and includes all laws,
rules and regulations including allowable and
non-allowable practices
Political Environment
what macro environmental factor is this?
mainly driven by the
supply and demand forces and also with the
interest and foreign exchange rates
Economic Environment
what macro environmental factor is this?
includes the demographics and the social dimensions that govern the
relevant entrepreneurial activity.
Social Environment
what macro environmental factor is this?
technological
discoveries that lead to commercialization and
industrialization
Technological Environment
what macro environmental factor is this?
it includes the habitat of man, animals, plants and minerals
Ecological Environment
The sixth section of the business plan that should contain the description,
VI. Product / Service Offering
(T/F)Products must be described by highlighting the features and attributes that would most appeal to the target customers.
True
Seventh section that maps the competitive landscape of the enterprise.
VII. Enterprise Delivery System and Strategy
Tenth section of the business plan
Discusses who are the investors, the financers and the partners
X. Capital Structure and Financial Offering
Ninth part of the business plan
More closely related to a company’s CSR
IX. Environmental and Regulatory Compliance
Eight section of the business plan
Calculates the return on sales, expected return on assets or investments and expected return on
stockholders’ equity
Evaluate both the BUSINESS RISK and
FINANCIAL RISKS involved
VIII. Financial Forecast
the transformation process where input is converted into output is called?
throughput
