Entreprene Urship: Welcome

WELCOME
Entreprene
urship
CONTENTS
 Introduction to Entrepreneurship
 Characteristics of Successful Entrepreneurs
 Personal Characteristics of Successful Entrepreneurs
 Skills Needed by Successful Entrepreneurs
 Entrepreneurship and the Entrepreneurial Process
 Starting a Business
 Entrepreneurship Challenges
Introduction to
Entrepreneurship
Entrepreneurship has become increasingly important for businesses of all sizes
around the world.
It opens new opportunities and possibilities for the businesses to create values for
themselves and for the society at large.
Despite its popularity, studies suggest that the scope of entrepreneurship remains
unknown, and therefore the prospects of entrepreneurial activities remains not fully
realised.
This chapter highlights some aspects concerning the concept of entrepreneur,

entrepreneurship, entrepreneurial process and finally the entrepreneurship
opportunities and challenges.
Entrepreneurs have always been present, however their behavioural patterns were
different in different periods of time.
The word entrepreneur was derived from the French word “entreprendre”, which
means “to undertake” (Kuratko, 2016).
The usage of the term entrepreneur can be traced from 1755, wherein an
entrepreneur was described to “buy the country produce from those who bring it
or to order it to be brought on their account. They pay a certain price to resell
wholesale or retail at an uncertain price” (Cantillon, 1931, p.51; Hamilton &
Harper, 1994)
Entrepreneur from the very beginning, was principally an independent

speculator of the commodity (Hamilton & Harper, 1994)
In the modern day markets, the term entrepreneur has been closely linked with
economic development.
An economic development can emerge due to several reasons, which includes:
(a) the launch of new source of procurement for raw materials or materials
(b) the introduction of a new production mechanism
(c) the introduction of a new quality of product, or a novel product
(d) the opening of new market
(e) the re-organisation of a business.
The management of all these aspects are carried by an enterprise, and the people
whose functions are to carry out these activities are called entrepreneurs (Bull &
Willard, 1993)
Take risks
Innovators or Transform the
In contemporary Create value whilst seeking
developers who opportunities
markets, through multiple rewards for their
identify and into
entrepreneur act stakeholders and ventures and
capture merchandisable
as: resources efforts (kuratko,
opportunities concepts
2016)
Characteristics of Successful
Entrepreneurs
The main characteristics of the entrepreneur are due to their sociological and psychological factors.
Some of those characteristics are mentioned below:
Entrepreneurs are vision-oriented people
Entrepreneurs have a high need in achievement
Entrepreneurs do not rely on fate or luck, however they try to control their own lives
Entrepreneurs undertake moderate risks, which is why they look for high earning on their investments
Entrepreneurs have the abilities to deal with several ambiguous situations in their ventures. They face
these ambiguous situations and circumstances regularly because they do certain jobs and tasks which are
entirely new by nature.
Entrepreneurs have the tendency to be productive and efficient with in a given period of time. However,
at times, they might be seen as inflexible individuals in team-work.
Personal Characteristics of Successful
Entrepreneurs
• Persistent • Goal-oriented
• Creative • Independent
• Responsible • Self-confident
• Inquisitive • Risk taker
Skills Needed by Successful
Entrepreneurs
• Communication skills
• Human relations skills
• Math skills
• Problem-solving & Decision-making skills
• Technical skills
• Basic Business skills
Entrepreneurship and the
Entrepreneurial Process
Entrepreneurship vs. Entrepreneurs
● Entrepreneurship ● Entrepreneur
● The process of starting and ● An entrepreneur is an individual

running one’s own business who undertakes the risk
● This involves a considerable associated with creating,
amount of risk. organizing, and owning a
business.
5 Steps of the
Entrepreneurial Process
1. Discovery
2. Concept Development
3. Resourcing
4. Actualization
5. Harvesting
5
Step 1: Discovery
The stage in which the entrepreneur generates ideas,

recognizes opportunities, and studies the market.
Entrepreneurs consider the following:

Hobbies or Skills
Consumer Needs and Wants
Conduct Surveys and Questionnaires
Study Demographics
Step 2: Concept Development
Entrepreneurs prepare the following in this step:
Develop a Business Plan
A detailed proposal describing the business idea
Choose Location for the Business

Is the business online or does it have a physical location for customers to visit
to purchase products, services or combinations.
Decide if the idea will need a Patent or Trademark

Patent
Trademark
Step 3: Resourcing
The stage in which the entrepreneur identifies and

acquires the financial, human, and capital resources
needed for the venture startup, etc.
Entrepreneurs contemplate the following:
Identify Potential Investors

Apply for loans, grants and financial assistance
Hire employees
Step 4: Actualization
The stage in which the entrepreneur operates the business

and utilizes resources to achieve its goals / objectives
Entrepreneurs prepare for the following:
Grand Opening of the Business

Day to Day Operations of the Business
Step 5: Harvesting
The stage in which the entrepreneur decides on venture’s

future growth, development, or demise.
Entrepreneurs consider the following:
Future Plans for the Business:

Expansion to additional locations
Company to change structure
Starting a Business
Starting a Business
● 1. Develop a Business Plan

● 2. Acquire Finances
● 3. Meet Legal Requirements
Develop a Business Plan
A Business Plan is a detailed proposal that describes

a new business.
Business Plans are:

Presented to potential investors and lenders
Most business plans are 30+ pages
Purposes of a Business Plan
● Business Plans are used to:

○ Obtain Financing
■ Banks and Potential Lenders require a business plan
○ Helps organize and analyze data critical to new business.
○ Provides a start-up proposal

■ Provides and outline to follow when starting the business.
4
Components of a Business Plan
Executive Summary:
Brief one to two page description of the key points of each section of the business plan
Product/Service Plan:
Presents Product or Service being offered
Unique features of the Product or Service
Management Team Plan:
Qualifications of the Entrepreneur
Qualifications of any Partners who may be involved in the business venture
● Industry/Market Analysis:
○ Analyzes the: Customers / Competition / Industry / Demographic /
Geographic and Economic data
● Operational Plan:
○ Includes all processes involved in producing and/or delivering the
product or service to the customer
● Organizational Plan:
○ Management philosophy of the business
○ Key management personnel
○ Key employment policies
● Marketing Plan:
○ Describes how the business will make its customers aware of its
products/ services.
○ The Market being served / Marketing Strategies / Promotional Plan /
Marketing Budget
Growth Plan:
○ Presents plan for future expansion of the business
● Financial Plan:
○ Includes financial statements that will help forecast the future
financial health of the business.
Finance the Business
Identify Potential Investors

Examples:
Family and Friends
Other Businesses
Employees
Contact Financial Agencies for loans, grants and financial assistance:

Small Business Administration
Banks / Credit Unions
Insurance Companies
The Legal Environment
Additional Legal Requirements for some businesses:
● Permits, Certifications or Licenses:

○ an official document giving someone authorization to run their business under the
extension of the direction of the Local, State and Federal Laws.
● Contracts:
○ a written or spoken agreement, especially one concerning employment, sales, or
tenancy, that is intended to be enforceable by law.
● Zoning Laws:
○ specify the areas in which residential, industrial, recreational or commercial
activities may take place.
● Taxes:
○ a enforced contribution of funds to state revenue, levied by the government on
workers' income and business profits or added to the cost of some goods, services,
and transactions.
Entrepreneurship Challenges
Although entrepreneurship activities are beneficial, however they come with
certain challenges. Some of those challenges are mentioned herewith:
Knowledge gap between the developed,
emerging, frontier and under developed
markets for conducting business
Difference in accounting systems in
several countries
Variable rates of return
Non-convertibility of the currencies
Communication gaps
Language barriers
Source: Adapted from Ramachandran & Gokila (2012).
In addition, to the previously mentioned challenges, there are also some other challenges commonly
found in entrepreneurship
Political unrest and legal
concerns
Cultural differences
Discrepancies in the use of
technology
Complexity in the markets
Supply chain concerns

Lack of specific infrastructure in
some countries or regions
Financial markets and their
volatility
Source: Adapted from Ramachandran & Gokila (2012).
Thank You!
REFERENCES
 Kuratko, D. F. (2016). Entrepreneurship: Theory, process, and practice. Tenth Edition,
Boston, USA: Cengage Learning.
 Cantillon, R. (1775). The circulation and exchange of goods and merchandise. Chapter
13 of Higgs, H. (Ed), Essai sur la Nature du Commerce en Général, Macmillan, London.
 Hamilton, R. T., & Harper, D. A. (1994). The entrepreneur in theory and
practice. Journal of economic Studies, 21(6), 3-18.
 Bull, I., & Willard, G. E. (1993). Towards a theory of entrepreneurship. Journal of
business venturing, 8(3), 183-195.
 https://www.uspto.gov/trademarks/basics/trade_defin.jsp
 https://www.gcsnc.com/site/handlers/filedownload.ashx?moduleinstanceid=75403&datai
d=48676&FileName=Module%203%20-%20Entrepreneurship.pptx
Group 5
Members:
 Pales, Geneva S.
 Pamor, Joy
 Pijana, Kathy P.
 Quimat, Angelica P.
 Quinamot, Re Ann k
 Quintao, Desiree Joy C.
 Quisquis, Carmille Q.

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WELCOME

This chapter highlights some aspects concerning the concept of entrepreneur,

Entrepreneur from the very beginning, was principally an independent

● The process of starting and ● An entrepreneur is an individual

The stage in which the entrepreneur generates ideas,

Entrepreneurs consider the following:

Choose Location for the Business

Decide if the idea will need a Patent or Trademark

The stage in which the entrepreneur identifies and

Entrepreneurs contemplate the following:

Identify Potential Investors

The stage in which the entrepreneur operates the business

Entrepreneurs prepare for the following:

Grand Opening of the Business

The stage in which the entrepreneur decides on venture’s

Entrepreneurs consider the following:

Future Plans for the Business:

● 1. Develop a Business Plan

A Business Plan is a detailed proposal that describes

Business Plans are:

● Business Plans are used to:

○ Helps organize and analyze data critical to new business.

○ Provides a start-up proposal

Components of a Business Plan

Identify Potential Investors

Contact Financial Agencies for loans, grants and financial assistance:

● Permits, Certifications or Licenses:

Variable rates of return

Non-convertibility of the currencies

Complexity in the markets

Supply chain concerns

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