ENTREPRENEURSHIP
Confidence- must have
ENTREPRENEURSHIP- pioneering
work of Joseph Schumpeter
eventually resulted of concept of
creative destruction.
- Ability to know what
products and services are
needed by people.
- According to Dr. Ralph
Sorensen it is an art of
creating, launching and
growing new venture
business.
ENTREPRENEUR-reference to
individuals who initiated the
establishment of business
enterprise.
If you owns a business -business
woman. Manage a business -
professional manager. Bought a
franchise- franchisee.
ENTREPRENEURS PERSONALITY
CHARACTERISTICS AND TRAITS
1. Passion for the business –
refers to eagerness to
involved in commercial
activities.
2.
trait. Belief in themselves
and capabilities to see
things.
3. Self determination – one’s
fate lies really on one’s self
his beliefs and efforts.
4. Management of Risk-
entrepreneurs how to take
risks but these risks are
calculated.
5. Initiative and need for
achievement – great need
to achieve things.
6. Creativity- they are not
satisfied with just copying
or doing the same routine.
7. Seeing the big picture-
asses how particular
decisions about operations
can affect business. Affects
as a whole.
THREE BASIC SOURCES OF
BUSINESS RISK
1. Demand risk – risk that the
product will not be
accepted by market.
2. Competitive risk-
competitors may able to
 replicate the business
model and capture market.
3. Capability Risk – capability
of the firm, possibility that
the products or services of
firm would fail to deliver
what customer paying for.
TOP 5 REASONS WHY FILIPINOS
DON’T GO INTO BUSINESS
1. Money- I don’t have
enough money
2. Time- I’m so busy with a lot
of things.
3. Skills -I’m afraid to fail.
4. Opportunity – That
business is not for me.
5. Connection – I don’t know
a lot of people.
Business plan – learning
experience and force the
entrepreneur to organize her
thoughts.
REASONS FOR CREATING A PLAN
1. Vision
2. Opportunity Assessment
3. Financing
4. Market Assessment
5. Implementing the plan
6. Outside failure
BUSINESS FAILURES
1. Poor cash flow control
2. Lack of managerial
experience.
3. Undercapitalization
4. Inventory control problems
5. Trade area competition.
6. Poor site location
7. Unidentified target market
8. Pricing strategy
9. Inadequate long-term plan
10. Inadequate financial
control.
ELEMENTS TO DETERMINE
MARKET POTENTIAL
1. Market size – first and
important factor. Total
markets sales potential of
all.
2. Market growth rate –
between product line
extensions and a
completely new concept in
market for example
Samsung in Samsung
Galaxy.
3. Profitability – understand
market potential, low
 profitability volume needs
to be high calculation
To determine market
potential u can use three
main elements
- ROI- Return on investment
- ROS- return on sales
- RONA- return on net assets
- ROCE- return on capital
employed
4. Competition- if industry
has high competition the
entry barriers are going to
be high and establishing
yourself will require deep
pockets.
5. Product and consumer
type – is your product a
repeat buying product or
one time sale ony?