+ A Perspective on Entrepreneurship Chapter 1. + ENTREPRENEURSHIP an important component of a...
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Transcript of + A Perspective on Entrepreneurship Chapter 1. + ENTREPRENEURSHIP an important component of a...
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A Perspective on EntrepreneurshipChapter 1
+ENTREPRENEURSHIP
an important component of a capitalist economy
thrives in economic systems that support innovation and hard work
Entrepreneurs = success = nation
+Entrepreneurship and Economic Development
Human Resources Natural Resources
Capital Formation Technology
Economic Developme
nt
+Entrepreneurship
It refers to the economic activity of a person who starts, manages, and assumes the risk of a business enterprise
Entrepreneur – is the person who undertakes entrepreneurial activities
+Entrepreneur
Economic Needs
Business Solution
Resources
Takes the Risk
+Entrepreneur’s Concern
Problem at Hand Entrepreneur’s Action
1. Identifying an economic need
2. Assembling resources
3. Assuming risk
High income families are not satisfied with the services provided by high schools in the area
Resources must be made available
Venture must be made
Establish a high standard school for high school students
Acquire funds, hire people, construct buildings and the like.
Prepare project study, advertise, maintain good relationship with employees and customers, among others.
+Entrepreneur’s Task
Products and services for customer’s and producers;
Employment;
Taxes
Demand and supplies’ products and services; and
Training facilities for future entrepreneurs
+ Entrepreneur
LAND LABOR
Entrepreneur
Production Process
Finished Goods and Services
CAPITAL
+Entrepreneurship and Innovation
Innovation – introduction of a new method, procedure, custom, device, among others.
Innovation INVENTION – discovery or devising of new products
and processes; DEVELOPMENT – which refers to the process by which
the ideas and principles generated from the stage of invention , modified into a new product;
INNOVATION – an introduction of new product
+ACTIVITY: INNOVATION
PRODUCT NAME DESCRIPTION OF THE PRODUCT TAGLINE SHORT COMMERCIAL LOGO
+Common Pitfalls for New Enterprises Improper pricing
Lack of knowledge about product costing
Inability or unwillingness to plan
Poor communication among the management team
Domestic pressures distracting the owner/ manager
Poor retail location
Lack of discipline
Dishonesty
+New Ventures and Long – Term Enterprises
Four Stages A. Venture Idea (prestart-up stage)
happens when the entrepreneur starts to question the feasibility of an idea, product, or service.
“What will the business make or sell?” May be derived from a recognition of
opportunities
+1. An old type of business can be given a new twist or professionalized.Example: In the food business,
entrepreneurs have reinforced the practice of having chef cook in front of customers to attract people who like to smell and see what is cooking
+Product with a twist
+
2. A standard product or service can be customized.
Computer technology has been used to create products ranging from bathing suits tailored to fit the individual to birthday records containing the recipient's name.
+
3. New technology can be adapted to manufacture an old product
Entrepreneurs have created a number of businesses that use desktop publishing and laser printers to turn out printed materials much cheaper.
+
4. Imported products can be replaced by domestic production
+
5. Business operations can be internationalized
+SEATWORK (1/4) : Think of a product or services that can spring up from the following:
1 Scientific Invention: ________________________
2 New Government Program: ____________________
3 Hobbies and personal interests: ______________
4 A love for food: _____________________________
5 Running a household: ________________________
+Venture ideas through the following:
Market Research It is an organized way of finding objective
answers to the questions every business must answer to improve its chances of success.
Information
Demographics
+New Ventures and Long – Term Enterprises (continuation – FOUR STAGES)
B. Start – Up Stage – Formation of the business; Generation of necessary capital; Purchase of facilities and equipment; Constructing prototypes Testing the market Consider our first customer, first sales,
build for survival
+1. Marketing Strategy – overall plan what product to offer and to sellProduct
Customer
Pricing
Advertising and Promotion
Distribution and sales management
+
2. People Skills
3. Location Strategy
4. Financing Strategy
5. Internal Management Essentials
+New Ventures and Long – Term Enterprises
C. Early growth stage – establishing feasibility; selling to limited markets with limited resources
DevelopmentBuilding of human resourcesGradual build- up of valuable assetsManagement control system
+New Ventures and Long – Term Enterprises
D. Late Growth Stage – management is structured; long term financing is established, and facilities planning are undertakenExpansionExportingFranchising
+Rewards for Successful Entrepreneurship
Factors of Production
Economic Reward Limiting Factor for Rewards Received
Land
Capital
Labor
Entrepreneur
Rent
Interest
Wages/ salary
profits
Supply and demand
Industry rates/ government mandated rates
Supply and demand legislation
Skill of entrepreneur
+The Entrepreneur’s Predicament(embarrassing situation)
+Entrepreneurship and Business Size