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ENTREPRENEURSHIP

By: IST

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  • Entrepreneur – gain profit and gives opportunities
  • CHARACTERISTICS OF AN ENTREPRENEUR:
  • Adaptive
  • Analytical
  • Committed
  • Creative
  • Innovative
  • Inquisitive
  • Leadership
  • Persistent
  • Self discipline

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  • Concepts of Filipino Entrepreneur
    1. Self-reliant
    2. Risk-taker
    3. Creative
    4. Industrious
    5. Humble
    6. Helpful
    7. Happy

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  • PRODUCTION – creation of goods and services

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RESOURCES IN PRODUCTION

Financial Resources

funds for various purposes that would benefit the business

Human Resources

The people who plan and implement business activities

Informational Resources

Reliable information is essential in making plans, decisions and implementation which are all contributory to the success of an enterprise

Material Resources

Tangible, physical resources which are used for production.

FACTORS OF PRODUCTION

Capital

Physical resources such as machines and equipment which are used for starting a business

Entrepreneurial Ability

The ability to coordinate all the factors of production.

Labor

Physical and mental efforts exerted by workers.

Land

Refers to natural resources, such as forests, mountains, and bodies of water like rivers, lakes, and seas.

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  • Costs of Production – represents the payments for the factors of production

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FOUR PHASES OF PRODUCTION

Operation

Raw materials are turned into something useful

Assembly

Producers put all parts together to form the final product

Finishing

Producers do the final render to the product

Inspection

Producers make sure that the product is of high quality and correct quantity according to specified standards.

PRODUCT LIFE CYCLE

Introductory Stage

A new product is released in the market

Growth Stage

The market has accepted the product and sales begin to increase

Maturity Stage

Sales will reach its peak

Decline Stage

Sales will begin to decline as the product reaches saturation point.

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GLOBAL STANDARDS

ISO

The International Organization for Standardization is known to be the largest developer of standards in the world having a network of 155 countries which meet and establish world standard

HACCP

Hazard Analysis Critical Control Point is an internationally accepted technique for preventing microbiological, chemical, and physical contamination of food particular during the processing of food products.

HALAL

This refers to food that is permissible for consumption under the Islamic Law.

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  • Scheduling
    • process of ensuring the delivery of materials at the right place and at the right time
  • Quality Control
    • process of ensuring that goods and services are produced in accordance to the specifications and requirement
  • Productivity
    • efficient creation of goods and services

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  • MARKETING PROCESS
    • Asset of human activities directed at facilitating and consummating exchange
    • It is an integration of various functions
    • Selling is only a part of marketing

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Three Elements

1. Two or more persons who are potentially interested in exchange

2. Each person having things of value to offer to the others

3. Each of them is capable of communication and delivery

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  • Marketing Plan – an outline of actions designed to achieve a specific set of goals
    • The external environment consists of namely:
      • Political forces
      • Economic forces
      • Societal forces and
      • Technological forces

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  • Marketing Strategies – tools of achieving the goals of the enterprise
    1. Product strategy starts from introduction to growth and maturity and finally to decline.
    2. Promotion strategy consists of advertising and personal selling
    3. Pricing strategy help in the conversion of product and services into money in business, the apparent objective of pricing is to maximize profit. (monopoly or oligopoly)
      • Penetration pricing strategy – very low price for a new product is offered
    4. Place strategy is delivery of goods to the customers

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  • Marketing Functions – process of buying and selling
    1. Exchange – buying, selling, pricing
    2. Physical – assembling, handling, processing and packaging, storage
    3. Facilitating – financing, market information, demand and supply, market research

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  • Forms of Selling
  • Retailing is selling in small quantities.
    • Classification of Retailing
      1. General store, permanent institution in the economic life of the country. It carried a wide variety of items
      2. Single line store specialize in one single item.
      3. Convenient store includes coffee shop, bakery shops candy stores magazine and newspaper stands located in business districts
      4. Specialty shop specializes in certain items which the busy department store cannot offer
      5. Itinerant store or rolling store
      6. Large scale retailing like variety store, mail order house, supermarket department store

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  • Business plan – blueprint guide, detailed roadmap
  • Research study – an systematic assessment
  • Feasibility study – well documented

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  • Outline of Feasibility Study

1. Evaluate your personal resources and interest, and the resources of the community

2. Analyze the market

3. Business location

4. Financial Plan

5. Production plan

6. Organizational Plan

7. Management plan

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  • CLASSIFICATION OF BUSINESS ORGANIZATION

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Sole Proprietorship

Is owned and operated by one individual. The owner is called the proprietor.

Partnership

A legal arrangement of two or more owners who call themselves “partners” .They have shared responsibility when it comes to contributing funds, property for the enterprise. Likewise, they divide profit among themselves.

  • Articles of Co-Partnership – a formal business agreement that partners create and sign.

Corporation

The corporation is bounded by the law as a single entity. It is an organization composed of more than five individuals who own shares.

  • Share – A portion of money or property that signifies ownership of the company.
  • Dividend – A portion of earning made the company given to its shareholder

Cooperative

An enterprise that is owned and operated by group of individuals for their own benefits.

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  • TWO TYPES OF MANAGING

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    • Managing Business

a. Keeping clear records�b. Verifying profit and loss�c. Managing cash flow

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    • Managing Enterprise
      • Distribution channel

a. Cooperatives�b. Independent, locally based private enterprise�c. Marketing boards and other state enterprises�d. Transnational companies

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BLESSING NOTES

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  • first and foremost for entrepreneurs – Being a good follower first
    • base the type of business, Availability of resources and time for business
    • distributed among the stock holders, Dividend
    • step-by-step procedure – Project proposal
    • how the business will be managed – Market study

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  • key ingredient to entrepreneurship is placed on – Innovation
    • can identify a good business through, The availability of supply, interest, capacity and skills
  • Attracting buyers depends on, Consumers likes and dislikes
  • Risk taker – Acceptance of challenges and changes
  • working together – Coordinating
  • Entrepreneurship refers to any lawful activity

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  • first step to put up her own business, Application of mayor’s permit to operate
  • records the financial operations – Bookkeeping
    • true about debit and credit, Debit increase asset and decrease liabilities
  • Entrepreneur, A person who is able to look at the environment and identify opportunities
  • Objective – aim of business organizations

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  • Magna Carta for Small Enterprises – RA 6977
  • agreement in a corporation – article of incorporation
  • agreement in a partnership – Articles of Co-Partnership
  • Machinery and/or equipment, Capital assets
  • buying and selling of goods and services through internet, Electronic commerce

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  • factor should be considered a priority in finding a location, labor supply
  • Marketing – point of production to the point of consumption
  • Profit is an indicator – Business
  • ability to create new things, invest in new enterprises and expand business – Entrepreneurship
  • factors must he possess that will not rely on services of employees – Knowledge / Skills

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  • match the needs of the society, must be based on felt needs
  • SWOT analyze business opportunities
  • Communicates with people through interviews, observations and advertisement – Marketing study
  • communicate the product to customers, Promotion
  • most important in choosing the best location, access to supplies and raw materials

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  • market refers to people, institutions or organizations for whom the business is designed
  • how to increase profits – not included in planning a business
  • benefit of business planning, eliminate business risk
  • planning – thinking ahead of objectives
  • environment includes technological, social and ethical/political factors – Macro environment

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  • purchased a right to operate an already established business – Franchise
  • Entrepreneur – principal actor of the production
  • tangible used in the production – Material resources
  • start-up – establishing a business from scratch
  • market describes the buyers and users of the product and the area of dispersion – market study

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  • superior delegates authority to a subordinate – line type
  • disadvantage of a functional type of organization, Morale is likely to be low when discipline is weak
  • Private label brand – type of product, as designed, produced and marketed by the seller
  • NOT needed by an entrepreneur – Working skills

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  • Entrepreneur, seeks to create value for local communities, people or customer by starting new ventures which exploit new products, processes or markets
  • INAPPROPRIATE in starting a business, Cope with failures of the business
  • NOT a source of fund, Seek assistance from Central Bank of the Philippines
  • INAPPROPRIATE – Relaxed

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  • UNDESIRABLE – Impassive
  • primary cause of failure in small business – Poor location
  • turning daydream into reality – Enthusiasm
  • Enthusiasm – gives the energy to pursue his endeavors
  • able to withstand the troubles – Perseverance
  • physical meeting point – Exchange functions

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  • actual flow of commodities through space and time – Physical functions
  • marketing objective is NOT true, Maintain instability of supply and demand for marketed goods
  • Place – vehicle for informing target market
  • price cutting or relaunching the product – Maturity
  • NOT appropriate in running a small-scale business – Distribution channel

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  • Shareholders, Independent, locally based private enterprise
  • defeat and exit the market – Decline
  • tangible and intangible aspects – Product
  • SWOT analysis – assess entrepreneurial projects
  • PEST analysis – opportunities and threats
  • SWOT, Strengths-Weaknesses-Opportunities-Threats

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  • final stage in the marketing planning – Control
  • target market, is attractive to the business and matches its supply capabilities
  • well documented – Feasibility study
  • Blueprint – Business plan
    • successful entrepreneurial activity – Careful planning

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  • Coffee and Cake apply – Marketing concept
  • Assess entrepreneurial projects – Competitor analysis
  • Do things faster – efficiency
  • Blending of variables – Variable research
  • Help community and government – Salary and Taxes
  • Person who is enterprising, has high level of technical knowledge

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  • Monthly load payment – Principal + Interest
  • Where are we now? – first stage in the marketing planning
  • Irritated – NOT a characteristic of an entrepreneur

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