ENTREP MIDTERM NOTES

Lesson 9: Levels of Entrepreneurial Development

Entrepreneurial Character, Traits, Skills, and Competencies
Lesson 9: Levels of Entrepreneurial Development
 
At the course of this lesson, you are expected to:
1. Identify the common traits of an
entrepreneur.
2. Discuss the levels of
entrepreneurial development.
3. Enumerate the entrepreneur's field
or expertise.

5 Levels of Entrepreneurial Development

 
When you hear the term “entrepreneur” most people think
about a business owner. Did you know there are 5 levels
of entrepreneurship, and becoming a true entrepreneur is
a process? It is, and here are the levels or steps to
becoming a true entrepreneur.
 
Entrepreneurs create wealth. But it takes time to get there.
We all start in the same place, as students. We learn as
children growing into adults we learn and build our
knowledge base from elementary school through college.
However, this isn’t actually one of the levels of
entrepreneurship, because it costs money. Whether paid
by society or yourself through tuition, education costs and
doesn’t generate wealth.
 Level One: The Self-Employed Mindset
The emotional driving force behind the self-employed person is
not security but a desire for greater control over his or her life,
career, and destiny. Relinquishing that control to a boss every day
from nine to five is not their idea of happiness, and they believe
that they could do their job just as well without an employer – and
perhaps without the need for other employees. They want more
autonomy. They want to do things their own way. And they
usually begin by creating a situation where they do the same type
of work they did while an employee, but they figure out how to do
it by themselves and for themselves.
Level Two: The Managerial Perspective
Those with a managerial outlook are often in a great position to
succeed as entrepreneurs, managers who become leaders
succeed because they accept the challenge and responsibility of
ensuring that others under their wings also succeed and flourish.
By getting the most out of employees, managers themselves are
able to delegate aspects of their business to others and set higher
goals. Those who say they can’t find good employees usually
mean they lack what it takes to attract or create good employees
– and as a consequence they also lack what it takes to succeed
as an entrepreneur. But those who not only manage but also lead
can rise to the next level and become owner/leaders – one step
closer to the real definition of an entrepreneur.
Level Three: The Leader
The entrepreneur who attains the level of an owner/leader enjoys
remarkable benefits by knowing how to step aside and let the
business – and those employees working in it – operate as a
profit center not reliant upon the owner’s constant hands-on
participation. This kind of entrepreneur has created an
organization that is more self-sufficient and self-sustaining, and by
doing so has created more wealth, personal freedom, and free
time.
Rather than being the only person who could get the job done the
best, this leader has passed that torch of responsibility and
expertise along to others who now enjoy for themselves a greater
level of career achievement. The owner/leader can therefore
focus not so much on sales and revenues, but on net profits.
While the business continues to run smoothly – and generate
more transactions – the owner/leader concentrates on fine tuning
it for increased profitability while letting others handle the day-to-
day operational details.
Level Four: The Entrepreneurial Investor
With a business that generates profits, the entrepreneur who has
succeeded this far can begin to accept another exciting challenge,
that of managing money so that it works to produce more money.
Investing for maximum returns involves smart leverage of assets,
and the entrepreneurial investor will often leverage the success of
the first business to create a second or third company based on
the same model or system.
By franchising the original venture or buying other healthy
businesses, the investor can get into the career of not just selling
basic products and services, but of selling entire businesses. The
goal, of course, is still to turn a profit. So rather than remaining at
the helm of these companies the investor will buy them, ensure
that they have valuable equity or attractive allure and potential,
and then sell them to other entrepreneurs or would-be
entrepreneurs. The focus becomes finding, buying (and perhaps
refurbishing) businesses, in the same way that a real estate
investor locates homes, rehabs them, and then flips them for a
profit.
This all becomes possible because the entrepreneur has not just
created a business but has also designed excellent systems for
keeping it going. Rather than dealing on the level of isolated
actions and reactionary tactics, in other words, the entrepreneurial
investor has risen to the level of broad and comprehensive
strategies that work across all sorts of products, services, and
economic cycles. Working smart replaces working hard, and the
rewards – both financial and personal – are abundant.
Level Five: The True Entrepreneur
Having learned new things every step of the way and evolved
through various stages of entrepreneurial accomplishment and
insight, it is possible to reach the ultimate goal and realize one’s
dreams in a really life-changing way. The true entrepreneur
experiences a paradigm shift that involves a four-step process of
changed thinking:

The true entrepreneur is a dreamer whose dreams come

true, and an income earner whose income is passive.

Lesson 10: Types of Entrepreneurs

Entrepreneurial Character, Traits, Skills,

and Competencies
Lesson 10: Types of Entrepreneurs
 
The world of entrepreneurship these days has already evolved,
and new terms are coined to suit an entrepreneur's field or
expertise.
[1] Technopreneur - is an entrepreneur who puts technology at
the core of his or her business model. A technopreneur starts out
with nothing but an 'idea'. He defies existing practices and
systems and thinks of doing things differently. He creates a
product or solution that uses the heft and capability of technology
to change the way something was traditionally done.
 
[2] Social entrepreneur - is one who takes advantage of the
country's social problems and turn them to profitable institutions
with the intention of helping the disadvantaged community rather
than making a profit. The social entrepreneur, however, neither
anticipates nor organizes to create substantial financial profit for
his or her investors – philanthropic and government
organizations for the most part – or for himself or herself. Instead,
the social entrepreneur aims for value in the form of large-scale,
transformational benefit that accrues either to a significant
segment of society or to society at large.
 
Unlike the entrepreneurial value proposition that assumes a
market that can pay for the innovation, and may even provide
substantial upside for investors, the social entrepreneur’s value
proposition targets an underserved, neglected, or highly
disadvantaged population that lacks the financial means or
political clout to achieve the transformative benefit on its own. 
 
[3] Intrapreneur - is an entrepreneur in a large company or
corporation who is tasked to think, establish, and run a new big
idea or project. Intrapreneurs are usually the product managers or
the business development managers of a company. Intrapreneurs
are unlike normal employees who simply function in a role,
intrapreneurs contribute to the bigger picture and they are
business minded. Intrapreneurs are responsible for introducing
ideas, inspiring creativity, leading and motivating those around
them. They take proactive steps to improve business operations
and they ensure the business meets targets to produce great
results.
 
[4] Extrapreneur - is an entrepreneur who hops from one
company to another or act as the innovation champion, providing
creative and efficient solutions. Because the extrapreneur’s
venture starts with a reasonably sound foundation already in
place, the risk of failure is much lower compared with a regular
start-up. The business might grow or shrink but at least one client
is likely to be there for the long run. For companies, the big
advantage is not having to employ someone but still guaranteeing
delivery of specific services or products. The extrapreneur is an
external partner who has good reason to treat the relationship
with the mother organisation as core business.
 

Price-wise, these services or products represent normally a lower

average price than in the free market, whilst on the other side of
the equation the costs of the trade provider are a bit higher than
when delivered in-house. The employer and extrapreneur split the
difference in exchange for mutual guarantees and security, and
both sides have the advantage of being much more flexible.

Lesson 11: Common Traits of Entrepreneurs

Entrepreneurial Character, Traits, Skills,
and Competencies
Lesson 11: Common Traits of
Entrepreneurs

COMMON COMPETENCIES IN ENTREPRENEURSHIP

        Entrepreneurship is a career that requires a plethora of
common and core competencies. Therefore, to be considered a
successful entrepreneur, he or she must possess common
entrepreneurial competencies that are needed all throughout the
entrepreneurship career. At the same time, he or she should also
possess core competencies that are needed for business
sustainability and management.
        Here are the common traits that entrepreneurs should
always have:
 
(1)    Proactive.
Entrepreneurs are reactive rather than passive. They address
issues, problems, and challenges before they come rather than
when they already happened. They ensure that proper research is
done, the risk factors are assessed, and plans are executed on a
timely and most efficient way.
 
(2)     Agents of Change.
Entrepreneurs are innovation champions. They see opportunities
in hopeless and complex situations. They are always enthused to
improve and develop new products and services and introduce
them to the market. They don't settle for mediocrity and the
status quo.
 
(3)     Risk takers.
Entrepreneurs will not be successful if they do not take risks. By
taking risks, entrepreneurs do not just grab opportunities left and
right; they have to take into consideration the potential various
threats they may encounter. Entrepreneurs calculate risks; if they
think that there is a big chance of succeeding, they push through
with the venture and don't let opportunity pass.
 
(4)     Have a sharp eye for opportunities.
Entrepreneurs have a talent for recognizing an opportunity even
by using the macrolevel data only. They know how to assess the
net cause and effect of an opportunity and decide intelligently if a
venture should be considered or not.
 
(5)     Sociable.
Soft skills are one of the most important competencies of
entrepreneurs as these establish the relationship with the most
important assets of the company — its people and its customers.
Relationship management is the key for employee and customer
retention, which can be achieved by a sociable entrepreneur.
 
(6)     Networkers.
A networker knows the key people to connect with. Networking
can be a very intimidating task, for it takes a lot of guts to pull it
off. Successful entrepreneurs gain trust of their valuable network
and maintain a long-lasting relationship with them.
 
(7)     Decisive.
Entrepreneurs always have a decision about their business. They
do not settle for gray areas or unclear solutions. They do not
leave an issue unsolved without a disposition. They make sure
that all aspects of their business have clear objectives and
strategies. Last, they base their decisions on scientific calculations
backed up by their experience and technical knowledge.
 
(8)     Balanced.
The minds of entrepreneurs should have a balance between the
analytical and the creative side. Their brains are always playing
with "unique ideas" that no one has ever thought of yet.
Entrepreneurs always have "Eureka!" moments and enjoy them.
 
(9)     Innovative.
The minds of entrepreneurs are rich with big ideas that can add
value to their existing business or could become a game changer
in the industry or business where they belong. They do not stop
improving and thinking of new and worthwhile ideas for their
business.
Lesson 12: Core Traits of Entrepreneurs

Entrepreneurial Character, Traits, Skills,

and Competencies
Lesson 12: Core Traits of Entrepreneurs
 CORE TRAITS OF ENTREPRENEURS
 
        Entrepreneurial leaders are made. The set of unique
characteristic traits which they acquire through the environment,
by work, study define the qualities of an
entrepreneur. Entrepreneurial spirit—it’s a phrase you might see
in some job ads. Granted, your track record might not look like
Mark Zuckerberg’s, Lori Greiner’s, or Richard Branson’s, but that
doesn’t mean you can’t emulate successful entrepreneurs at
work. Put simply, awesome employees and successful
entrepreneurs have more than a few traits in common—and
employers are eager to hire such people. Being a self-starter can
make you very desirable.
        Here are the core traits that entrepreneurs should develop
in managing and running the business:
 
[1] LEADERS
 
Successful entrepreneurs always have the heart of a leader. To
be successful leaders, they must be a source of inspiration for
their employees. They must be very humble, approachable,
friendly, and also know how to listen to people's concerns.
Leaders act on their responsibilities that were given to them.
 
They use their strengths and limitations to make the best of a
situation. They must also be decisive and know how to own up to
their decisions. They know how to unite the team and bring out
the best in every employee.
 
[2] COMMUNICATORS
 
Entrepreneurs know how to use all forms of communication to
effectively share ideas and address certain concerns with their
customers or employees. Effective communication not only
provides people with a clear view of what the business offers,
they also help prevent mishaps in an organization.
 
Communication channels between entrepreneurs and their
employees or customers should always be open to ensure the
smooth flow of operations in their business.
 
[3] SPECIALISTS
 
Entrepreneurs are experts in their chosen business. They are
tactical and are very keen with details. When asked about the
specifics of their product or service, they can easily answer
without heavily relying on their people. They understand the
totality and specificity of their business. As a result, they can
easily think of innovating and improving the product or service
offerings because they know their intricacies. They enjoy being in
action instead of being behind the scenes.
 
[4] PROBLEM SOLVERS
 
Entrepreneurs possess critical thinking skills and look at problems
as challenges or puzzles that they need to solve. They know how
to handles issues in any area of the business, be it finance,
operations, or marketing. They listen to the plight of their
employees on certain problems involving their units, and come up
with strategic solutions.
 
Entrepreneurs are able to solve problems by immersing
themselves in day-to-day activities, knowing what is happening in
and out of their business. Entrepreneurs should also be aware of
their employees' personalities; they must know how and when to
use them to help solve problems. Entrepreneurs have faith that
every problem has a solution no matter how hard it is. They must
also be courageous and know how to face the consequences of
their decisions.

Lesson 13: Entrepreneurial Skills: Cognitive Skill

Entrepreneurial Character, Traits, Skills,

and Competencies
Lesson 13: Cognitive Skill

The character traits among successful entrepreneurs are

distinguishing attributes that differentiate the entrepreneur from
the owners of ordinary small businesses. They compose the
image of a successful entrepreneur in the business community.
Successful entrepreneurs have already provided and laid out the
clear blueprints for you to follow. It should be your prime goal to
internalize those entrepreneurial characteristics.
      However, possessing these character traits is not enough to
finish the entrepreneurial journey. It is only the initial step.
Remember that the field of entrepreneurship, as this book clearly
defines and emphasizes, is a practice and not a theory. In other
 words, you have to practice entrepreneurship correctly. To do so,
you need the required skills to help you deliver and carry out with
great ease the principles of entrepreneurship.
 
ENTREPENEURIAL SKILLS
      Without the required skills, a person can hardly succeed in a
particular business endeavor, perform the assigned specialized
tasks, or even truly become a successful entrepreneur. Hence,
skills play a significant role in the practice of entrepreneurship.
       Skills are considered as the personal abilities to do things
well. They come from the totality of
the knowledge, practice or experience, and aptitude of a person.
Skills are acquired and developed by a person
through constant and correct practice. They connote dexterity,
excellence, and expertise in the performance of particular tasks.
They are clear manifestations of the abilities of a person to carry
out complex tasks.
 

COGNITIVE SKILLS
Cognitive skills refer to the mental ability of the entrepreneur to
learn new things, generate new ideas, and express knowledge in
both oral and written forms. The human brain is responsible for
the development of cognitive skills, which are essential in making
systematic and effective plans and monitoring them.
               The cognitive skills of an entrepreneur include the
following:

1. ability to understand written materials;

2. ability to learn and apply new information;
3. ability to solve problems systematically;
4. ability to create new ideas;
5. ability to innovate new products and procedures or methods.
Not all types of cognitive skills of an entrepreneur, except for that
of problem solving skills, are discussed in this lesson. These
problem-solving skills can help the entrepreneur in making
decisions quickly, which is essential in the competitive world of
business.
How to improve cognitive skills?
Strengthening your cognitive skills can help you perform better in
almost every aspect of your job. Improving your attention skills
can not only help you stay on task, but it can also help you be a
more active listener, which can improve your relationships.
Building your logic and reasoning skills can also help you
generate creative solutions to difficult challenges. Here are a few
ways you can improve your cognitive skills:

1. Reduce stress
2. Care for your body
3. Practice focusing
4. Exercise your brain
Like any other muscle, you can find activities that target and
exercise certain areas of the brain, improving the associated
cognitive skills. Consider these activities to strengthen your
cognitive abilities:
 Read a book during your break or before you go to bed. 
 Find puzzles that you enjoy, like a crossword or Sudoku.
 Play chess or another game that engages your mind. 
 Write a story, or memorize your favorite song.
 Challenging mental activities can help you improve your memory,
focus, reasoning and processing skills. 

Lesson 14: Entrepreneurial Skills: Problem-solving Skill

Entrepreneurial Character, Traits, Skills,

and Competencies
Lesson 14: Problem-solving Skill

PROBLEM-SOLVING SKILL
            Problems are common in the life of an entrepreneur as
he/she manages the day-by-day operations of the business
venture. These problems can be big or small, ordinary or unusual,
and repetitive or non-repetitive.
         Whatever the nature, the type, or size of the business
problem, the entrepreneur must face it, solve it, and make a
decision. In making a business decision, the entrepreneur adopts
the scientific approach instead of making an intuitive decision.
            The scientific approach in solving business problems
involves:

1.       defining the real problem,

2.       gathering information about the problem,
3.       formulating alternative solutions,
4.       evaluating alternative solutions,
5.       selecting and implementing the optimal solution,
6.       evaluating the decision.
 
How to Enhance Your Problem Solving Skills?
 Most people believe that you have to be very intelligent in order
to be a good problem solver, but that’s not true. You don’t have
to be super smart to be a problem solver, you just need practice.
When you understand the different steps to solve a problem,
you’ll be able to come up with great solutions.
    Focus on the Solution, Not the Problem
    Adapt 5 Whys to Clearly Define the Problem
    Simplify Things
    List out as Many Solutions as Possible
    Think Laterally
    Use Language That Creates Possibility
Try not to view problems as ‘scary’ things! If you think about
what a problem really is, it’s really just feedback on your current
situation. Every problem is telling you that something is not
currently working and that you need to find a new way around
it. So try to approach problems neutrally – without any judgment.
Practice focusing on defining a problem, keep calm and not to
make things too complicated.

Lesson 15: Entrepreneurial Skills: Technical Skill

Entrepreneurial Character, Traits, Skills,

and Competencies
Lesson 15: Technical Skill

TECHNICAL SKILL
      In this age of advanced computer and information
technology, entrepreneurs must be fully equipped with the right
technical skills. The result or final output of cognitive skills may
not be very effective unless put into reality through the
application of technical skills. Technical skills are not only
significant in entrepreneurship but also in other fields.
 
    For entrepreneurs, these skills relate to their knowledge and
proficiency in a specialized field like computer technology,
accounting, marketing, or other related technical fields.
In the absence of the technical skills, the output of the cognitive
skills may not carry any significant value. Without the technical
skills, an idea will remain to be an idea and a business
opportunity will remain to be a business opportunity.
      The technical skills of an entrepreneur include proficiency and
ability, among others, in the following areas:

1.      Information technology
2.      Feasibility study and business plan
preparation
3.      Technical writing skills
4.      Marketing
5.      Management and finance
       In a similar manner, entrepreneurs must develop their
technical writing skills to be able to:

1.      respond immediately to the problems of

customers,
2.      negotiate easily with suppliers,
3.      make the necessary financial
arrangement with creditors,
4.      attract prospective consumers without
difficulty.
  
Lesson 16: Entrepreneurial Skills: Interpersonal Skill

Entrepreneurial Character, Traits, Skills,

and Competencies
INTERPERSONAL SKILL
      Interpersonal skills are basically about the relationship and
interaction of the entrepreneur with the workers, suppliers,
creditors, prospective consumers, and other members of the
business community.
         Interpersonal skills are the skills we use every day when we
communicate and interact with other people, both individually
and in groups. They include a wide range of skills, but particularly
communication skills such as listening and effective speaking.
They also include the ability to control and manage your
emotions.

       It is no exaggeration to say that interpersonal skills are the

foundation for success in life. People with strong interpersonal
skills tend to be able to work well with other people, including in
teams or groups, formally and informally. They communicate
effectively with others, whether family, friends, colleagues,
customers or clients. They also have better relationships at home
and at work.
       You can improve your interpersonal skills by developing your
awareness of how you interact with others and practicing your
skills.
        The interpersonal skills of an entrepreneur may include,
among others, the following:

1.    Skills in verbal communication

2.    Skill in non-verbal communication
3.    Skills in listening
4.    Skills in leading
5.    Skills in negotiating
        They must be developed and enhanced to equip the
entrepreneur in:
 saying what he/she wants to say and how he/she says it;
 working with his/her workers and employees;
 relating, negotiating, and dealing with his/her customers,
suppliers, and creditors;
 communicating his/her ideas, beliefs, values, and opinions
to the people he/she works with.
         To become a successful entrepreneur, it is vital for you to
acquire, develop, and enhance your entrepreneurial skills
involving the cognitive, problem-solving, technical, and
interpersonal skills.