ENTREP – Lecture

ENTREPRENEURSHIP- ENTREPRENEUR French verb (Entreprende) to undertake

ENTREPRENEURS- are innovators . They are willing to take the risks and generate unique ideas that can
provide profitable solutions to the needs of the market and the society.

Business - refers to the organized efforts and activities of individuals to produce and sell goods and
services for profit.

Business Plan - is a detailed and integrated written document that describes the various activities
involved in opening and operating a new entrepreneurial venture

/ Entrepreneur – refers to a person who strongly advocates and correctly practices the concepts and
principles of entrepreneurship in operating and managing the self-owned entrepreneurial venture.

Entrepreneurship – is the art of observing correct practices in managing and operating a self-owned,
wealth-creating business enterprise by providing goods and services that are valuable to the customers.
Feasibility – the possibility that can be made, done, or achieved, or is reasonable. Corporation - is a legal
entity created by individuals, stockholders, or shareholders, with the purpose of operating for profit.

FACTORS AFFECTING ENTREPRENEURSHIP

1.PERSONALITY FACTORS

A. Initiative

b. Proactive

C. Problem Solver

D. Perseverance

E. Persuasion

F. A Planner

G. Risk Taker

2. ENVIRONMENTAL FACTORS

A. Political

B. Climate

C. Legal System

D. Economic

RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION:

1. Development of managerial Capabilities

2. Creation of Organization
3. Improving Standard of Living
 4. Means of Economic Development

COMMON COMPETENCIES OF ENTREPRENEURSHIP

1. Decisive
2. Communicator
3. Leader
4. Opportunity Seeker
5. Proactive
6. Risk Taker
7. Innovative
CORE COMPETENCIES IN ENTREPRENEURSHIP
1. Economic and Dynamic Activity
2. Innovative
3. Profit Potential
4. Risk Bearing
TYPES OF ENTREPRENEURSHIP

1. INNOVATIVE Entrepreneurs ( thinking new ideas

2. IMMITATING Entrepreneurs ( follow the ideas of other entrepreneurs)
3. FABIAN Entrepreneurs (skeptical) afraid about changes, only followed after they are
satisfied
4. DRONE entrepreneurs ( die hard conservatives) traditional
5.SOCIAL Entrepreneurs – drive social innovation ( health education, human rights,
enterprise, environment
CARREER OPPORTUNITY OF ENTREPRENEURSHIP
1. Business Consultant
2. Teacher
3. Researcher
4. Sales
5. Business Reporter

A business plan is also a road map that provides directions so a business can plan its future and helps it
avoid bumps in the road. It is the only single written document that must be prepared before opening a
new business or expanding an existing business. It provides a clear direction to any uncertain business
endeavor.

A business plan is a detailed and integrated written document that describes the various activities
involved in opening and operating a new entrepreneurial venture.

10 Reasons Why You Need to Prepare a Business Plan for Small

Business:

1. To help you with critical decisions

2. To iron out the kinks

3. To avoid the big mistakes

4. To prove the viability of the business

5. To set better objectives and benchmarks

6. To communicate objectives and benchmarks

7. To provide a guide for service providers

8. To secure financing

9. To better understand the broader landscape

10.To reduce risk

Two Major Tests to be Conducted every time a New Business Idea is Created:

1. Possibility Test .The test of possibility on the new business should have a positive result, so that
the test of feasibility or viability will be conducted.
2. Feasibility Test. The primary objective of the feasibility study is to determine whether the
proposed business is feasible or not in all areas. If the outcome of the feasibility study is positive,
then the entrepreneur prepares the business plan.
Difference between Business Plan and Feasibility Study
The content and structure of the business plan are almost the same
as those of the feasibility study. The data shown in the feasibility
study are the same set of data presented or used in the business
plan. Nonetheless, the business plan presents a more detailed
discussion of how the business will be undertaken and operated
Although there is no universally accepted structure of the business plan, here are some
major parts that you need to keep in mind when making one:
1. INTRODUCTION
The introduction presents the general perspective of the business. It may consist of one to
two pages. It includes, among others, the following sections:

1. Proposed Name of the Business

2. Address of the Business

3. Name of the Owner or Owners

4. Description of the Business

5. Location of the Business

6. Funding Requirement and Source

In case the consulting team prepares the business plan for prospective owners or
investors, the section Statement of Confidentiality is added as the last section.
2. PROPOSED NAME OF THE BUSINESS
The formulation and drafting of the proposed business name is not as simple as it sounds. It is a
delicate and important entrepreneurial task. Remember that the name of the business may exist in
the market for the many years. Careful and in-depth planning is of prime importance. The proposed
business name must:

1. Reflect the business identify and image

2. Promote the philosophical values and culture that the business values the most

3. Profess the brand identity of the product, and

4.Attract or influence the target costumers

At least three suggested trade names must be submitted to the department of Trade and
Industry for approval and registration.
3. ADDRESS OF THE BUSINESS
It is important that the address of the Business is correctly written because all business
correspondence is mailed to the business address. Raw materials and other manufacturing
supplies are also shipped by the seller to the designated business address.

Nowadays, it is also necessary for the business to have an e-mail address to facilitate
electronic communication between the business and the customers, suppliers, creditors,
and other significant parties.
4. NAME OF THE OWNER
The name of the owner must be properly stated. In a sole proprietorship, there is
only one owner. In case the venture is a partnership, the names of the partners, including
the extent of their liabilities, must be indicated. For example, if a partner’s must be
properly mentioned.

For business ventures that will operate as a corporate entity, the names,
nationalities, and addresses of the incorporators must be given. Incorporators are persons
who originally formed the corporation.
5. DESCRIPTION OF THE BUSINESS
A brief description of the business must include information about the type of product or
service that the business intends to produce or provide. It may include a brief information
about the ultimate mission, vision, and objectives of the business. The other products or
services that the business plans to produce or provide must also be mentioned in the
description of the business.
6. LOCATION OF THE BUSINESS
What is the difference between the sections Address of the Business and Location of the
Business?

The former simply states the exact business address. No additional description is provided
to highlight the exact business address. The latter indicates the reason/s for the selection
of the location. In case the processing plant is not within the vicinity of the business, its
exact location must be described.

The following factors should be considered when deciding on the location of the proposed
business:

1. Proximity to the target customers

2. Distance from the sources of raw materials, labor, and utilities
3. Availability and cost of transportation
4. Peace and order situation
5. Presence of direct competitors
6. The geographic and climatic condition
7. FUNDING REQUIREMENT AND SOURCE
The estimated total initial cost of the business venture must be clearly indicated. It should
include the projected breakdown or allocation of the total cost, e.g., how much will be for
building, fixtures, equipment, supplies, and working capital. This section also presents the
source or sources of funds. The initial cost of the investment may be provided solely by the
owner or owners or partly by the owner and creditors. The estimated period to settle the
funding source provided by the creditors must also be mentioned.