Introduction To Entrepreneruship

ENTRE
PRENE
URSHIP
An Introduction
An Introduction
Mary Pauline J. Musca

Instructor, Entrepreneurship and Business Planning
Entrepreneurship, 2nd Edition
Mariotti and Glackin with NFTE
2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.
ENTREPRENEURSHIP
The
word entrepreneur originates from the

French word entreprendre which means
to undertake or to begin something
In
business context

to start a business.

ENTREPRENEURSHIP
Is
a process through which individuals identify
opportunities, allocate resources and create

value.
is the practice of starting new businesses or
developing new products or services.
the utilization of both material and
manpower resources with the end purpose of
generating income or profit.
Is


Entrepreneurship
is more than a word. It is
a mission. We must perceive
opportunities inherent in change; we

must create a desire for pursuing the
opportunities that arise; and we must
create an environment in which
success is possible and the
consequences of failure are tolerable.
Professor Robert Hisrich

WHAT IS BUSINESS?
Businessbuying
and selling of products
and services.
Productexists
in nature or is made by
human beings and is tangible.
Servicework
that provides time, skills, or

expertise and is intangible.


WHAT IS AN ENTREPRENEUR?
Employees
earn their
living working
for someone
elses business.

Entrepreneurs
earn their living

starting, owning,
and working for
their own
business.
6

Entrepreneurs Add Value

to Scarce Resources
A
scarce (limited) resource is something of

value that can be used to make something
else or fill a need.
Entrepreneurs add value to scarce resources
by shifting them from areas of lower to
higher productivity.

THE ECONOMIC QUESTIONS
What should be produced?

When will it be produced?
How will it be produced?
Who will produce it?
Who gets what is produced?
An economy is a countrys financial structure. It is the system that produces and

distributes wealth.


Why Be an Entrepreneur?
Control

over time

Fulfillment

10

Creation/Ownership

11

Control

over compensation
12

Control

over working conditions
13

Costs and Benefits

of Entrepreneurship
COSTS
Business
BENEFITS
failure
Independence
Obstacles
Satisfaction
Loneliness
Financial
Financial
Long
insecurity
hours/hard work

reward
Self-esteem
14

COST/BENEFIT ANALYSIS
Cost/Benefit
Analysislisting costs and benefits in

order to make decisions that are not emotional
Costsmoney and time invested
Benefitsmoney earned and knowledge and
experience gained
Opportunity
Costcost of the next-best investment
For cost/benefit analysis to be accurate, opportunity

cost must be included.

15

Entrepreneurship Options
Traditional
for-profit enterprise
Social entrepreneurship including
venture philanthropy
Green entrepreneurship

16

3 MAJOR TYPES OF ENTREPRENEUR

SOCIAL
ENTREPRENEUR
A
social entrepreneur is
motivated by a desire to
help, improve and
transform social,
environmental,
educational and
economic condition.

17


SERIAL
ENTREPRENEUR
A
serial entrepreneur is
one who continuously
comes up with new
ideas and starts new
businesses

18


LIFESTYLE
ENTREPRENEUR
A
lifestyle entrepreneur
places passion before
profit when launching a
business in order to
combine personal interests
and talent with the ability
to earn living.

19

Treps
young lifestyle entrepreneurs
- 20-30 years old

20

Joseph Shumpeters
Sources of Opportunity
Use a new
Use an existing technology to produce a new product.

Use an existing technology to produce an old product in a
technology
to produce a new product.
new way.
Find a new source of resources to produce more
efficiently.
Develop a new
market
for an existing product.
21

Not All Ideas Are

Opportunities
An opportunity is an idea that is based
on what customers need or want and
are willing to buy sufficiently often at
a high enough price to sustain the
business.

22

Timmons Business Opportunity=

Idea + 4 Characteristics
1.
2.
3.
4.
Attractive to customers
Will work in the business environment
Can be executed in an existing
window of opportunity
Resources and skills to create the
business available to the entrepreneur

23

Use SWOT to Evaluate Business Ideas
Strengths
Weaknesses
Opportunities
Threats
24

ROOTS OF OPPORTUNITY
1.
2.
3.
4.
5.
Problems
Changes
Inventions
Competition
Technological advances
Where others see problems,
entrepreneurs recognize opportunities.

25

PATHWAYS TO
ENTREPRENEURSHIP
Start
from the beginning

Buy an existing business
Secure franchise rights
License technology
(Do not steal someone elses
creativity)

26

PROFIT IS THE SIGNAL

Profitamount
costs are paid
of money earned after
Profit
signals that an entrepreneur is

adding value to scarce resources.
Entrepreneurs try to make choices
(trade-offs) that will increase profit.

27

Rules for Building

a Successful Business
1.
Recognize an opportunity
2.
Evaluate it with critical thinking (SWOT)
3.
Build a team
4.
Create a business plan
5.
Gather resources
6.
Establish ownership
7.
Create wealth
28

ENTREPRENEURSHIP
IN THE PHILIPPINES
Entrepreneurs
and SMEs are the backbone of our

economy. Small and medium-sized enterprises
(SME), including micro-enterprises, account for:
99
60
percent of all business establishments
percent of the exporting firms in the Philippines
employ
30
about 55 percent of the Philippine labor force
percent to total domestic sales volume.

29

every 100 children enrolled every

year
66 will complete elementary
education
42 will finish high school
Center for
Asia Pacific
Studies
14 will earn a college degree
30

only 7.7% of graduates

get employed
Smart
Communications
Study
out of 100 children that

goes to school, only one
will end up getting a job
31

PROBLEMS OF FILIPINO
ENTREPRENEURS:
inadequate
access to
technology
financing capital
marketing advice
logistical problems
32

SOCIO-ECONOMIC BENEFITS OF
ENTREPRENEURSHIP
Promotes
self-employment
Mobilizes capital
Provides taxes to the economy
Empowers individuals
33

SOCIO-ECONOMIC BENEFITS OF
ENTREPRENEURSHIP
Enhance
national identity and pride

Enhance competitive consciousness
Improves quality of life
Enhances equitable distribution of income
and wealth
34


Thank you or Listening.
Expect a Quiz Next week..

35


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ENTRE

Mary Pauline J. Musca

2010 Pearson Education, Upper Saddle River, NJ 07458.

word entrepreneur originates from the

Entrepreneurship, 2nd Edition

2010 Pearson Education, Upper Saddle River, NJ 07458.

a process through which individuals identify

opportunities, allocate resources and create

Entrepreneurship, 2nd Edition

2010 Pearson Education, Upper Saddle River, NJ 07458.

is more than a word. It is

a mission. We must perceive

opportunities inherent in change; we

2010 Pearson Education, Upper Saddle River, NJ 07458.

and selling of products

that provides time, skills, or

Entrepreneurship, 2nd Edition

2010 Pearson Education, Upper Saddle River, NJ 07458.

Entrepreneurship, 2nd Edition

earn their living

2010 Pearson Education, Upper Saddle River, NJ 07458.

Entrepreneurs Add Value

scarce (limited) resource is something of

2010 Pearson Education, Upper Saddle River, NJ 07458.

THE ECONOMIC QUESTIONS

What should be produced?

An economy is a countrys financial structure. It is the system that produces and

Entrepreneurship, 2nd Edition

2010 Pearson Education, Upper Saddle River, NJ 07458.

Entrepreneurship, 2nd Edition

2010 Pearson Education, Upper Saddle River, NJ 07458.

Entrepreneurship, 2nd Edition

2010 Pearson Education, Upper Saddle River, NJ 07458.

Entrepreneurship, 2nd Edition

2010 Pearson Education, Upper Saddle River, NJ 07458.

Entrepreneurship, 2nd Edition

2010 Pearson Education, Upper Saddle River, NJ 07458.

Entrepreneurship, 2nd Edition

over working conditions

2010 Pearson Education, Upper Saddle River, NJ 07458.

Costs and Benefits

Entrepreneurship, 2nd Edition

2010 Pearson Education, Upper Saddle River, NJ 07458.

Analysislisting costs and benefits in

Costcost of the next-best investment

For cost/benefit analysis to be accurate, opportunity

Entrepreneurship, 2nd Edition

2010 Pearson Education, Upper Saddle River, NJ 07458.

Entrepreneurship, 2nd Edition

2010 Pearson Education, Upper Saddle River, NJ 07458.

3 MAJOR TYPES OF ENTREPRENEUR

Entrepreneurship, 2nd Edition

2010 Pearson Education, Upper Saddle River, NJ 07458.

3 MAJOR TYPES OF ENTREPRENEUR

Entrepreneurship, 2nd Edition

2010 Pearson Education, Upper Saddle River, NJ 07458.

3 MAJOR TYPES OF ENTREPRENEUR

Entrepreneurship, 2nd Edition

2010 Pearson Education, Upper Saddle River, NJ 07458.

3 MAJOR TYPES OF ENTREPRENEUR

young lifestyle entrepreneurs

- 20-30 years old

Entrepreneurship, 2nd Edition