Lesson 1 Flashcards
Entrepreneurship
Entrepreneurship is a proactive process of developing a business venture to make a profit. It involves seeking opportunities for a market, establishing and operating a business out of the opportunity, and assessing its risks and rewards through close monitoring of the operations.
With this definition, being an entrepreneur may seem difficult, but it can be rewarding if the enterprise flourishes.
Creating a sound business plan, along with efficient and effective operation of the business, will not only benefit the entrepreneur but also the entire society and the economy.
Entrepreneur
The word “entrepreneur” 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”.
Entrepreneurs are innovators, willing to take risks and generate new ideas to make it unique and profitable solutions to the present-day problems.
What do you mean by entrepreneur?
An entrepreneur is a unique individual who has the innate ability and extraordinary dedication to establish and manage a business, acknowledging all the risks and reaping its rewards. Like other vocations, being an entrepreneur is also a calling
Concept of Entrepreneurship
2 types of Entrepreneurs according to size
- Megaentrepreneurs
- Microentrepreneurs
Megaentrepreneurs
These individuals are also willing to absorb huge risks of using enormous amounts of capital in their business ventures.
Microentrepreneurs
They also initiate business enterprise, the value-added and profits they make are limited. Their contributions are minimal and attract few competitors and imitators.
Types of Entrepreneurs according character
- Innovative entrepreneur
- Imitating entrepreneurs
- Fabian entrepreneurs
- Drone entrepreneur
- Social entrepreneurs
Innovative entrepreneur
they are those who always make new things by thinking of new ideas.
Imitating entrepreneurs
they are those who don’t create new things but only follow the ideas of other entrepreneurs.
Fabian entrepreneurs
they are those skeptical. They don’t initiate but follow only after they are satisfied.
Drone entrepreneur
they are those who lives on the labor of others. They are die-hard conservatives even ready to suffer the loss of business.
Social entrepreneur
they are those who initiate changes in the various fields such as education, health, human rights, environment and enterprise development.
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 entrepreneurships many organizations will exist.
Relevance of Entrepreneurship to an organization
- 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.
Factors Affecting Entrepreneurship
Personality Factors
- Physical Factors
- Proactive
- Initiative
- Problem solver
- Perseverance
- Persuasion
- Planner
- Risk taker
- Environmental Factors
Initiative
which means doing things even before being told
Proactive
which means he can classify opportunities and seize it.
Problem solver
which means he can retain good relations with other people.
Perseverance
meaning he will pursue things to get done regardless of challenges
Persuasion
means that he can entice people to buy even if they don’t.
Planner
meaning he makes plan before doing things and do not fail to monitor it.
Risk taker
which means that he is willing to gamble but he will calculate it first.
Environmental Factors
which include political, climate, legal system, economic and social conditions and market situations.
Common Competencies in Entrepreneurship
- Decisive
- Communicator
- Leader
- Opportunity seeker
- Proactive
- Risk taker
- Innovative
Decisive
an entrepreneur must be firm in making decisions.
Communicator
an entrepreneur must have a convincing power.
Leader
an entrepreneur 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
controlling a situation by making things to happen or by preparing for possible future problems.
Risk taker
they have the courage to pursue what is their business ideas.
Innovative
the entrepreneurs have big business ideas and they do not stop improving and thinking of new worthwhile ideas for their business.
Core Competencies in Entrepreneurship
- Economic and dynamic activity
- Innovative
- Profit potential
- Risk bearing
Economic and dynamic activity
Entrepreneurship is an economic activity because it involves the creation and operation of an enterprise with a view to creating value or wealth by ensuring optimum utilization of limited resources.
Innovative
Entrepreneurs constantly look for new ideas, thus he needs to be creative.
Profit potential
meaning the entrepreneur can be compensated by his profit coming from the operation.
Risk bearing
meaning the entrepreneur needs to gamble but wise enough to offset the risk
Career Opportunities of Entrepreneurship
- Business consultant
- Teacher
- Researcher
- Sales
- Business reporter
Complete the statement…
“_______________ are people who take the risk, they are innovators and contributors to the development of the _______________.”
Entrepreneurs
Business
