Perspective On Entrepreneurship Flashcards
Came from the French word entreprende which means to undertake.
Entrepreneurship
Entrepreneurship came from the French word blank which means to undertake
Entreprendre
aims to bring about the cohesive integration of social, economic, institutional, and cultural environment, both at the individual level and the group level
Entrepreneurship
A professor who defined entrepreneurship is the process of creating something new with value by devoting the necessary time and effort assuming the accompanying financial psychic and social risks and receiving the resulting rewards of monetary and personal satisfaction and independence
Robert Hisrich Ph.D.
4 DEFINITION OF ENTREPRENEURSHIP
- Entrepreneurship involves the process of creation
- Entrepreneurship requires time and effort
- Entrepreneurship is a challenging task
- Being an entrepreneur is a fulfilling endeavor because of its rewards and personal satisfaction
-It is the capacity of an individual to utilize resources to create something unique or new or improve something that already exists and make them available in the market.
Entrepreneurship involves the process of creation
- An entrepreneur must devote his/her time to establish his/her business. He must exude passion, commitment and dedication in making his/her crafts.
Entrepreneurship requires time and effort
- Risk are inevitable in making a business. Entrepreneur may face multiple risk such as financial risk, competitive risk, environment risk, strategic risk and many more.
Entrepreneurship is a challenging task
- Aside from the profit that he/she gets the feeling of starting up your own business and making it successful is different.
Being an entrepreneur is a fulfilling endeavor because of its rewards and personal satisfaction
Definition of entrepreneur
is a person who is action oriented highly motivated takes Risks to achieve goals
Is a person who establishes his own business with the intention of making profits
Entrepreneur is a person who only provide capital without taking active part in the leading role in an enterprise
Entrepreneur is a one who innovates raise money assemble input choose manager and set the organization growing.
FAMOUS ENTREPRENEURS IN THE WORLD
- Jeff Bezos
- William Henry Gates(popularly known as Bill Gates)
- Mark Elliot Zuckerberg
- is the founder of Amazon which is the largest ecommerce marketplace and is used by millions of customers worldwide.
Jeff Bezos
- Is an American business magnate investor author and philanthropist. He is the founder of Microsoft which he launched along with Paul Allen in 1975
William Henry Gates(popularly known as Bill Gates)
Who is the partner of Bill gate to launch the Microsoft -
Paul Allen in 1975
- is an American technology entrepreneur and his the founder of the widely popular social media platforms Facebook.
Mark Elliot Zuckerberg
is undoubtedly the number 1 social media platforms used by everyone from students to marketers to leader from all over the world.
Entrepreneur is a
(PERSON)
ENTREPRENEURSHIP
Is a
(PROCESS)
ENTREPRENEUR (PERSON)+ENTREPRENEURSHIP (PROCESS)
=ENTERPRISE (OUTCOME)
is the dynamic process of creating incremental wealth and innovating things of value that have a bearing on the welfare of an entrepreneur as an individual and the growth of the economy as a whole.
Entrepreneurship
Importance of entrepreneurship in the Macro Perspective
- Generates Job Opportunities
- Enhances economic growth
- Improves the Community
- entrepreneurship is not only important for entrepreneurs and business itself but it also opens job opportunitied for other people.
Generates Job Opportunities
- when an entrepreneur establishes his business e produces goods and services.
- Enhances economic growth
- entrepreneurs are not just the big and rich ones. There are also many small and medium enterprises especially in the rural community
Improves the Community
Importance of entrepreneurship in the Micro Perspective
- Develops the character of the individual
- Improves the economic status of the individual
- Acquires a sense of fulfillment
- Enhances many skills of the individual
- When an individual engages in the practice of entrepreneurship he /she undergoes many circumstances that would improve his character and personality.
Develops the character of the individual
- the main objective of many entrepreneur is to make a living and earn a profit.
Improves the economic status of the individual
- many individuals prefer to have their own business than to become employees of other companies. They want to become a leader and bosses of their own businesses.
Acquires a sense of fulfillment
- entrepreneurship enhances many skills such as critical thinking problem solving decision making organizing and creating.
Enhances many skills of the individual
Entrepreneur has to perform the following task and function
- Risk taking and uncertainty Bearing
- Taking business decisions
- Managerial functions
- Innovation
- Maintain Good Relations
- Planning and organizational function
- An entrepreneur must be prepared for all the risks and advertisities. He/ she has to face these circumstances. Example the business might suffer from loss and bankruptcy.
Risk taking and uncertainty Bearing
- an entrepreneur must able to formulate an action plan for all the decision that he/she has to make.
Taking business decisions
- He she must know how to manage the different operations in the business like financial and supply management
Managerial functions
- this is the most important functions of an entrepreneur. He initiates to introduce and crafts ne products. He thinks of many ways in how to improve the quality of these products and develop the business.
Innovation
- Entrepreneur must be able to establish a good relationship with his employees and most especially with his clients and customers.
Maintain Good Relations
- these are the first things that an entrepreneur must do when starting up his own business.
Planning and organizational function
- is deciding in advance what is to be done which is to be done and how it is to be done .
Planning
Main differences in task between an entrepreneur and a manager. What is task of entrepreneur?
- An entrepreneur is involved with the start up process
- An entrepreneur assumes financial, material and psychological risk.
- An entrepreneur is driven by perception of opportunity
- An entrepreneur initiate change
-5. An entrepreneur is his own boss - An entrepreneur gets uncertain rewards
Main differences in task between an entrepreneur and a manager. What is task of Manager
- A manager is with a running business over a long period of time
- A manager does not have bear risks
- A manager by the resources he currently possess
- A manager follows rules and procedure
- A manager is a hired employee
- A manager gets fixed rewards and salary
- is the specific tool of entrepreneurs the means by which they exploit change as an opportunity for a different service.
Innovation
Innovation came from the Latin word which means to make new.
Innovare
4 Main types of Innovation
- Product innovation
- Process innovation
- Organizational innovation
- Marketing innovation
- these are innovation of goods and services. This is a creation or improvements of new products.
Product innovation
- this refers to the creation or improvements of processess and methods. An entrepreneur must be able to innovate ways to conduct his operations in production and delivery.
Process innovation
- defined as doing this differently in the organization. It is the implementation of a new organizational method in a firm’s business practice workplace or external relations.
Organizational innovation
- refers to the implementation of marketing strategies to promote the products
Marketing innovation
- the process of starting a new venture is embodied in the entrepreneurial process which involves more than just problem solving in a typical management position.
Entrepreneural process
4 phase of entrepreneurial process
- Identify and evaluate the opportunity
- Develop the Business Plan
- Resources Required
- Manage the Enterprise
-this is the first and most difficult part in the process. To be able to establish a business enterprise an entrepreneur must be open to opportunities. An entrepreneur must be able to weight or calculate whether an opportunity gives more risks or rewards. This is what you called opportunity analysis or opportunity assessment.
Identify and evaluate the opportunity
- include the description of the products or business and specifications of all activities and operations.
Opportunity assessment
- if opportunities have been evaluated already the next step is to make a good business plan. This is a document that serve as a guide or a roadmap.
Develop the Business Plan
- to operate a business enterprise resources are necessary. An entrepreneur must be able to determine the resources needed.
Resources Required
Types of Resources Required
*Human resources
*Financial resources
*Physical resources
-are the people or the employees.
Human resources
- without money the business is dead.
Financial resources
- include the land or location and the different equipment needed this are also called FACTORS OF PRODUCTION
Physical resources
- how the business is managed depends on the second and third part of the process. This is the part where the entrepreneur must focus because mismanagement of enterprise could just put all the planning.
Manage the Enterprise
The rewards for a successful entrepreneurship that entrepreneur enjoy can be in the form of
Financial and non- financial
Types of financial
*Profit
*Dividends
*Capital growth
- is a financial gain obtained from an investment.
Profit
- on the other hand, is the amount money paid by a company to its stakeholders out of profit.
Dividends
- is the increase in the value of an asset or investment.
Capital growth
Types of Non- financial
*Satisfaction
*Contribution
*Character development
- is the process of innovating new venture that entails risks and rewards.
Entrepreneurship
