Learning Module: Surigao State College of Technology Entrepreneurship Topic 1: Introduction To Entrepreneurship

LEARNING MODULE SURIGAO STATE COLLEGE OF TECHNOLOGY
Module
ENTREPRENEURSHIP
Topic 1: Introduction to Entrepreneurship

1.1 A Brief about Entrepreneurship in Civil Engineering
1.2 Final Words for Future Entrepreneurs:
1.3 The mindset of the Entrepreneur Leader
1.4 Entrepreneurial Opportunity
1.5 Qualities of an Entrepreneur
Time Frame: 6 hrs
Introduction:
Entrepreneurship is the capacity of business visionaries to evaluate the dangers

and build up development and structural designing organizations which are
dangerous and yet suits consummately to the changing situations of the
economy. Lately, cultivating business has become a subject of the greatest need
in open strategy all through most modern nations
Entrepreneurship will acquaint future entrepreneurs with the ideas and standards
of business. The course will present the job business visionaries play in the
nearby business climate and the effect of business on the public economy. This
course will investigate a large number of the ideas that future business
visionaries should dominate before they start their business. It's anything but a
course that blends hypothesis in with training. Students will be tested to apply
the standards, ideas and system to genuine circumstances.
Objectives:
Upon completion of this course, future entrepreneurs should be able to:
1. Recognize the entrepreneurial potential within yourself.

2. Describe the role of entrepreneurship within society.
3. Explain the impact of entrepreneurship on the individual, the family and the
local community.
4. Explain the process and nature of entrepreneurship.
5. Identify ways in which entrepreneurship manifests itself in society, including
start‐ ups and within the corporate environment, public sector and non‐profit
sector.
6. Identify and assess potential business opportunities.
ES 115 – ENTREPRENEURSHIP FOR ENGINEERS ENGR. VIRNE P. PORTUGUES 1

7. Explore how business opportunities can be turned into sustainable business

opportunities.
8. Explore a typical business model for an entrepreneurship enterprise.

9. Explain the business planning process and its outputs.
10. Explain how the start‐up process works
Learning Activities
Let‘s do this! Students will be assigned to a breakout room (either for Google meet or
zoom) and allow them to discuss the following questions. Right after the discussion, a
representative from every group will be assigned to report their output thru a concept
map.
PRE-TEST
Questions:
1. What Motivates an Entrepreneur?

2. What entrepreneur mindset do you think is the most important that a business
man must possess.?
3. In your own opinion, how does trends affects the evolution of the new
businesses?
4. How to Start a Business?
1. A Brief about Entrepreneurship in Civil Engineering
Basically, Entrepreneurship is the capability and willingness to form, arrange and

conduct a business activity along with any of its suspicions in order to craft earnings.
The most outstanding paradigm of entrepreneurship is the opening of fresh businesses.
Hence, it is defined as someone who has the knack and yearning to set up, oversee,
and thrive in a start-up enterprise along with risk having with it, to make benefits. In
Civil Engineering, entrepreneurship associated with land, workers at various level,
natural assets and capital that can make a benefit in terms of revenue. Some job roles
as an entrepreneur in this branch of engineering are given below: Myths about
Entrepreneurship
 Building Planner: There is a huge demand of a building planner before
construction of any residential, public or organisational concern. So in this

regard requirement of license building planner is noticeable. Those who

completed the Bachelor Degree in Civil Engineering can get this license by
applying for the same to the local Municipality.
 Civil Contractor and Sub-contractor: Civil contractor are referred as

person or organization appoints by clients for carry out and completion of
works on scheduled time period. Seeing the majority and importance of
work contractor can hire a noteworthy number of subcontractors
implicated with different job roles.
 Consultant: Consultants may be from any specialization of this core

branch. They are self-governing and proficient engineers who can present
their thoughts in making a well detailed service as per client‘s requirement
and financial capability.
 Quantity Surveyor: They are mainly responsible for controlling cost of a

civil project. They also accountable for estimation and valuation of the
project in terms of monetary and volume of material required in the
project.
 Material Supplier: Material is an indispensable part of any business

enterprise related to civil construction. Material supplier is a person or
organisation who supplies material to the sites as per the requirement of
the design.
 Labour Contractor: This is a person or enterprise that supplies workers

to the employer for a specific time period in the construction site and for
this work they charge a fee from the employer.
 Real Estate Marketing Agent: They give direction and assist merchants
and customers for advertising and acquiring any property at a precise
worth under the finest provisions. By comparing current market status
they can also estimate the value of the property and give suggestion by
overseeing the financial capability of the client.
 Surveyor: Need of private surveyor is crucial for determining the site

boundaries and its quantity. For a new under constructed site, they work
incessantly to find out the earthwork excavation and location and volume
of cutting and filling. Required Pre-Qualifiers for Entrepreneurship Making

of decision to get started in this field of entrepreneurship it pushes an

employee to play some sort of roles during their path of journey. Besides
of educational status of a person, some pre-qualifiers also help them to
move forward along with their field.
 Pre-Qualifier: Generally, to start a career as an apprentice in this field it

is required to get at least a high school graduate degree but it is not so
essential for all the time beings. Besides of that, some of the following
skills should be present to get success in this field.
 Strong Common Sense: Behavioural skills frequently fall under the

general heading of good spirit, sociability, maturity, or common sense.
These are skills that must be cultured and practiced in order to enhance
career viewpoint.
 Positive Attitude: Being optimistic and gracious to others helps in

delighting job more. A strong positive attitude should be present to
compete with widespread marketplace.
 Vision: The qualities of a good entrepreneur include a well vision setting,

captivating others, liability, and developing situations where they can
utilize their strengths and reveal creativity.
 Honesty and Dedication: This explains assurance to the associates

including client as well as owners, subcontractors, vendors and the
community. Entrepreneurs must be dedicated to work, respecting
everyone‘s console and maintaining a general agenda for treading with
achievement of the work.
 Professional Ethics: In the entrepreneurship, ethics has to extend at

both professional and organisational height. Professionals such planner,
engineers and surveyors have moral codes to support as behoves their
profession, as do organisations. Ethical behaviour is often considered by
the scale of reliability and integrity with which companies carry out
business.
 Management Skills and Teamwork: Entrepreneurship as a teamwork

requires contribution towards accomplishing the project, but there may
also have contradictory priorities during the teamwork. Aligning these

priorities, implementation a project on time and fund management needs

suitable management skills and collaboration from all participants.
 Courage to face Challenge: Entrepreneurship requires leadership and

determination of facing challenges during complicated times. Challenges
include completion of work on time, work as a unit to reach towards
achieving goal.
1. SOURCES OF OPPORTUNITY
The following are his 7 sources of innovative opportunity.
The Unexpected
The market place is the number one area to look for opportunities. A good manager
should be constantly studying the market. Is a particular product or service in greater
or lesser demand than anticipated? Why? Is there a way we can exploit this unexpected
success? What has to happen if we want to convert this success into an opportunity?
The Incongruity
There is a discrepancy between what is and what should be. This is a key to developing
wildly successful businesses but it‘s tricky. Facebook is a company that nailed it. Prior to
the social network‘s prolific rise Myspace was the dominant player, but it had its
downfalls.Facebook wisely noted what Myspace was vs. what should be and built that
platform. The end result? A company that just had an IPO versus. one that has fallen
off considerably.One of the best places to look for incongruity is in your own customers.
Their complaints and unmet wants are all the hints you need.
Process Need
Process need involves identifying your company‘s process weak spots and correcting or
redesigning them. This is a task oriented solution meaning that the source of innovation
comes from within your existing capabilities and ways of doing business – not the
market. An example might be a restaurant that identifies that people wait too long for
their entrees and so decides to hire another chef to speed up creation times. Essentially
your company will want to look for all weak links and eliminate them.
Industry and Market Structure Change
Your industry and the market are in continual flux. Regulations change and some
product lines expand while others shrink. Firms should continually be on the watch for

this. One example is deregulation. When a previously regulated industry becomes open
there is historical precedence for companies that enter early to be very successful.
Other things to watch out for are the convergence of multiple technologies and
structural problems that occur from time to time (often immediately following an
industry boom).
Demographics
We constantly see changes occur in populations, income levels, human capital

(education) and age ranges. Smart firms are constantly paying attention to this. When
it comes to the baby boomers businesses have been following them constantly as they
got older. At present they are one of the largest as well as the most affluent
demographic groups with high levels of disposable income. Combining demographic
data with segmentation and targeting is a powerful method of accurately meeting a
target market‘s desires.
Changes in Perception, Meaning, and Mood
Over time populations and people change. The way they view life changes, where they
take their meaning from, and how they feel about things also is modified over time and
smart companies must pay attention to this in order to capitalize (and avoid becoming
forgotten, a relic of ages past). Here are two really good examples. First is a principle
called ―downaging‖ which refers to people who look at 50 as being 40. Industries have
responded to this, most notably in the cosmetic and personal care industry which
provides plenty of solutions to help these people look younger. Full industries are
creeping up that make people feel younger. Have you spotted any lately?
New Knowledge
As the speed of technological revolution increases there will be an ever increasing

number of opportunities that open up. The internet has been the most notable one in
the last couple decades but there have been a plethora of other industries and
opportunities pop up as a result of this technological revolution. New knowledge is
about more than just technology though, it‘s about finding better ways of doing things
and improving processes. Your company should look to this new knowledge for ways it
can improve incrementally.
2. Final Words for Future Entrepreneurs:
Starting a career as an entrepreneur needs a lot of tough work, but it is undeniably not

impossible. The proper amount of drive, attentiveness, and start-up capital will permit
to fabricate a successful business in civil engineering from the primary phase. It is going
to take four principles to turn into a great entrepreneur.
1. Have a Strong Business Plan: Before its implementation, a business plan is a

practice by which an entrepreneur can figure out the viability of the plan along
with the possible major obstacles and also its probable overcome techniques.
2. Equipment and Licenses: To initiate a personal business, construction
equipments and tools are one of the parts of it. Even a small time contractor has
to require a lot of money to acquire tools, licenses, IT equipment, and vehicles to
get to job sites. License issued by local Municipal Corporation is very essential to
get any contract in this field.
3. Insurance: General liability insurance will look after the worksite injuries,
accidents, and other unexpected occurrences. Entrepreneur can also look into
property insurance concerning for something gets stolen or broken. It is better to
have at least some economic assist in the moment of a stolen computer or
forklift repair.
4. Marketing: Advertising requirements are as straightforward as signage for the
job sites. Radio, TV, and online marketing, like a websites and blogs are the
appropriate medium for marketing. It is also required to generate a logo to set
up brand. Other suggested promotional items contain business cards, brochures,
and, ultimately, a business portfolio.
3. THE MINDSET OF ENTREPRENEUR LEADER
Positive Attitude: A positive attitude and outlook is a must for successful

entrepreneurs. The mindset of the head of the company sets the tone for the rest of
the company and influences corporate culture. Negative thoughts undermine forward
motion and the progress of the company, not to mention the management‘s ability to
lead staff and motivate employees. Part of what gives entrepreneurs the fortitude to
weather the business downturns is positivity. Never has the adage ―Creativity is the
mother of invention‖ been truer than in the world of entrepreneurship. Think of Steve
Jobs and the iPhone. Edison and the light bulb. The Wright Brothers and the airplane.
Each of these ground-breaking inventions would not have come to fruition were it not
for healthy doses of creative gumption.
Creative Mindset: Even if you‘re not in a ―creative‖ industry, creativity is needed for
entrepreneurial success. The mind of an entrepreneur is always looking for novel ideas

and innovations. The basic life cycle of any entrepreneurial product stems from the
conception of an idea followed by turning that idea into a viable product or service.
Persuasive Communication Ability: The best entrepreneurs are persuasive

individuals. The power of persuasion can help you negotiate, close a sale, or score a
lower price on your inventory. Not to mention, persuasive people tend to be inspiring
leaders, ergo they tend to be stellar bosses.
Intrinsic Motivation and Drive: One of the top entrepreneurial characteristics is

intrinsic motivation, meaning you are self-motivated as opposed to looking to others to
push you to do things or hold you accountable. Broadly speaking, those who own their
own businesses are incredibly motivated to succeed. They‘ve poured blood, sweat, and
tears into their company, and may have literally mortgaged their future to first open
their businesses‘ doors. Having a lot at stake personally fuels the motivational drive.
Tenacity and an ability to learn from failure: When you‘re starting a business, you
hope that your business will be a wild success. It‘s true that success is wonderful, but
failure is where growth and change happen. The key to learning from failure is to
actually learn and embrace your mistakes so they make your better, not break you.
4. ENTREPRENEURIAL OPPORTUNITY
Aspiring entrepreneurs can come up with ideas all day long, but not every idea is
necessarily a good idea. For an idea to be worth pursuing, we must first determine
whether the idea translates into an entrepreneurial opportunity. Entrepreneurial
opportunity is the point at which identifiable consumer demand meets the feasibility
of satisfying the requested product or service. In the field of entrepreneurship, specific
criteria need to be met to move from an idea into an opportunity. It begins with
developing the right mindset—a mindset where the aspiring entrepreneur sharpens his
or her senses to consumer needs and wants, and conducts research to determine
whether the idea can become a successful new venture.
In some cases, opportunities are found through a deliberate search, especially when
developing new technologies. In other instances, opportunities emerge serendipitously,
through chance. But in most cases, an entrepreneurial opportunity comes about from
recognizing a problem and making a deliberate attempt to solve that problem. The
problem may be difficult and complex, such as landing a person on Mars, or it may be a
much less complicated problem such as making a more comfortable pillow, as
entrepreneur Mike Lindell did by inventing My Pillow.

Theories of Opportunity
In the twentieth century, economist Joseph Schumpeter, as shown in Figure 5.2, stated
that entrepreneurs create value ―by exploiting a new invention or, more generally, an
untried technological possibility for producing a new commodity or producing an old one
in a new way, by opening up a new source of supply of materials or a new outlet for
products, by reorganizing an industry‖ or similar means.
According to Schumpeter, entrepreneurial innovation is the disruptive force that creates

and sustains economic growth, though in the process, it can also destroy established
companies, reshape industries, and disrupt employment. He termed this force creative
destruction. Schumpeter described business processes, including the concept of
downsizing, as designed to increase company efficiency. The dynamics of businesses
advances the economy and improves our lifestyle, but the changes (sometimes through
technology) can make other industries or products obsolete. For instance, Schumpeter
provided the example of the railroad changing the way companies could ship
agricultural products quickly across the country by rail and using ice ―cold cars,‖ while
at the same time, destroying the old way of life for many ranchers who wrangled cattle
from one location to their intended commercial destination.
Today, we might think of the displacement of taxi drivers by ride-sharing services such
as Uber and Lyft as a modern-day example of this concept. To own and operate a New
York City cab, for instance, one must buy what is called a taxi medallion, which is
basically the right to own and operate a cab. Drivers take out loans to buy these
medallions, which cost hundreds of thousands of dollars. But now, ride-sharing services
have eaten in to the taxi industry, all but destroying the value of the medallions, and
the ability of taxi drivers to make the same money they were before the popular
services existed. This change has left many taxi drivers in financial ruin. 3 Schumpeter
argued that this cyclic destruction and creation was natural in a capitalist system, and
that the entrepreneur was a prime mover of economic growth. To him, the goal was to
progress, and progression starts with finding new ideas. He identified these methods for
finding new business opportunities:
1. Develop a new market for an existing product.

2. Find a new supply of resources that would enable the entrepreneur to produce
the product for less money.
3. Use existing technology to produce an old product in a new way.
4. Use an existing technology to produce a new product.

5. Finally, use new technology to produce a new product.
We can understand theories of opportunity as related to supply or demand, or as

approaches to innovations in the use of technology. The first situation is a demand
opportunity, whereas the remaining situations are supply situations. The final three
incorporate technological innovations. Supply and demand are economic terms relating
to the production of goods.
Supply is the amount of a product or service produced. Demand is the consumer or

user desire for the outputs, the products, or services produced. We can use the ideas
from Schumpeter to identify new opportunities. Our focus is on identifying where the
current or future supply and the current or future demand are not being met or are not
aligned, or where technological innovation can solve a problem.
5. Qualities of an Entrepreneur
In order to organize and run a business successfully, an entrepreneur must

possess certain traits important for driving success. Some of them are:
 Self-confidence: Others will trust you only when you trust yourself. This is the
most important trait of an entrepreneur, who should have the confidence to take
one‘s own decisions.
 Risk-taking ability: Business is all about taking risks and experimenting.
Entrepreneurs need to have a risk-taking ability.
 Decision-making ability: Entrepreneurs should have the willingness and
capability to take decisions in favor of the organization all the time.
 Competitive: Entrepreneurs should always be ready to give and face
competition.
 Intelligent: Entrepreneurs always need to keep their mind active and increase
their IQ and knowledge.
 Visualization: Entrepreneurs should have the ability to see things from different
point of views.
 Patience: This is another virtue which is very important for entrepreneurship as
the path to success is often very challenging and it requires a lot of patience for
sustenance.
 Emotional tolerance: The ability to balance professional and personal life and
not mixing the two is another important trait of an entrepreneur.
 Leadership quality: Entrepreneurs should be able to lead, control and motivate

the mass.
 Technical skill: To be in stride with the recent times, entrepreneurs should at
least have a basic knowledge about the technologies that are to be used.
 Managerial skill: Entrepreneurs should have the required skill to manage
different people such as clients, employees, co-workers, competitors, etc.
 Conflict resolution skill: Entrepreneurs should be able to resolve any type of
dispute.
 Organizing skill: They should be highly organized and should be able to
maintain everything in a format and style.
 High motivation: Entrepreneurs should have high level of motivation. They
should be able to encourage everyone to give their level best.
 Creative: They should be innovative and invite new creative ideas from others
as well.
 Reality-oriented: They should be practical and have rational thinking.
Self-Evaluation (Copy and paste this part in a new document)

Answer the following questions comprehensively:
1. Aside from the mindset mentioned in the module, what do you think are the skills
that an entrepreneur should have?
2. Cite common examples of entrepreneurial oppurtunities and why?
Review of Concepts:
The term opportunity implies a good chance or a favourable situation to do something

offered by circumstances. In the same vein, business opportunity means a good or
favourable change available to run a specific business in a given environment at a given
point of time
Entrepreneurial opportunity is the point at which identifiable consumer demand meets

the feasibility of satisfying the requested product or service. In the field of
entrepreneurship, specific criteria need to be met to move from an idea into an
opportunity

POST TEST
Identify wheter the statement is true or false. Write T if true, and F if it

is a false.
1. Entrepreneurs should have high level of motivation. They should be able to

encourage everyone to give their level best.
2. The Expert Myth: ―Most successful entrepreneurs have strong track records and
years of experience in their industries.‖
3. Raw creativity and an affinity for lateral thinking may be innate, but creative people
must refine these skills in order to become masters in their respective fields.
4. Preparation involves investigating a chosen field of interest, opening your mind, and
becoming immersed in materials, mindset, and meaning.
5. Evaluation is the purposeful examination of works. You will want to compare your
insights with the products and ideas you encountered during preparation.
6. The first stage in the creative process is elaboration, that is, actual production.
Elaboration can involve the release of a minimum viable product (MVP).
7. Before its implementation, a business plan is a practice by which an entrepreneur can

figure out the viability of the plan along with the possible major obstacles and also its
probable overcome techniques.
8. Feasibility analysis is the process of confirming that a strategy, plan or design is

possible and makes sense
9. The best entrepreneurs are persuasive individuals. The power of persuasion can help
you negotiate, close a sale, or score a lower price on your inventory.
10. The ability to balance professional and personal life and not mixing the two is
another important trait of an entrepreneur.
References:
[Online]:https://simplicable.com/new/feasibility-analysis
[Online]:https://adamasuniversity.ac.in/civil-engineering-is-an-avenue-for-
entrepreneurship/
[Online]:https://openstax.org/books/entrepreneurship/pages/2-2-the-process-of-

becoming-an-entrepreneur
Entrepreneurship Tutorial in PDF - Tutorialspoint
PRE-TEST ANSWERS
1. T
2. T
3. T
4. T
5. F
6. F
7. T
8. T
9. T
10. T

Module
ENTREPRENEURSHIP
Topic 2: Idea and Opportunity Generation

1.1 Attributes and Myths of Entrepreneurs
1.2 Sources of Opportunity
1.3 Creativity
1.4 The Origin and Evolution of New Business
1.5 The mindset of the Entrepreneur Leader
1.6 Entrepreneurial Opportunity
1.7 Feasibility Analysis.
Time Frame: 6 hrs
Introduction:
In general sense, the term opportunity implies a good chance or a favourable

situation to do something offered by circumstances. In the same vein, business
opportunity means a good or favourable change available to run a specific
business in a given environment at a given point of time. The term ‗opportunity‘
also covers a product or project. Hence, the identification of an opportunity or a
product or project is identical and, therefore, all these three terms are used as
synonyms. The Government of India‘s ―Look East Policy‖ through North East is
an example of ‗opportunity‘ to do business in items like tea, handicrafts, herbals,
turmeric, etc.
Opportunity identification and selection are like comer stones of business
enterprise. Better the former, better is the latter. In a sense, identification and
selection of a suitable business opportunity serves as the trite saying ‗well begun
is half done.‘ But, it is like better said than done. Why? Because if we ask any
intending entrepreneur what project or product he/she will select and start as an
enterprise, the obvious answer he/she would give is one that having a good
market and is profitable. But the question is how without knowing the product
could one know its market? Whose market will one find out without
actually having the product? Whose profitability will one find out without actually
selling the product? There are other problems, besides. While trying to identify
the suitable product or project, the intending entrepreneur passes through
certain processes.
The processes at times create a situation, or say, dilemma resembling ‗Hen or
Egg‘ controversy. That is, at one point, the intending entrepreneur may find one

product or project as an opportunity and may enchant and like it, but at the
other moment may dislike and turn down it and may think for and find other
product or project as an opportunity for him/her. This process of dilemma goes
on for some intending entrepreneurs rendering them into the problem of what
product or project to start. Then, how to overcome this problem of product
identification and selection?
One way to overcome this dilemmatic situation is to know how the existing
Entrepreneurs identified the opportunity and set up their enterprises. An
investigation into the historical experiences of Indian small enterprises in this
regard reveals some interesting factors.
Objectives:
Explain idea and opportunity generation

Determine the Attributes and Myths of Entrepreneurs. Sources of Opportunity.
Creativity. The Origin and Evolution of New Business. The mindset of the Entrepreneur
Leader. Entrepreneurial Opportunity and Feasibility Analysis.
Learning Activities
map.
PRE-TEST
Questions:
1. Explain why is it important to identify the sources of opportunities?

2. What entrepreneur mindset do you think is the most important that a business
man must possess.?
3. In your own opinion, how does trends affects the evolution of the new
businesses?

1. ATTRIBUTES AND MYTHS OF ENTREPRENEURSHIP

6 Attributes of a great Entrepreneur
1. Great entrepreneurs blend vision with execution.

2. They have an ability to find backdoors.
3. They‘re willing to work the long hours.
4. They can either sell or build.
5. They can reduce complicated data into something manageable and
actionable.
6. They are very effective with people
Myths about Entrepreneurship
There are lots of very wrong myths out there about entrepreneurs that may be
worthwhile for you to examine as you think about whether starting a business is right
for you.
1. The Risk-Taking Myth: ―Most successful entrepreneurs take wild, uncalculated
risks in starting their companies.‖ Risk is an intrinsic part of any business
venture. Starting a company of any type places tremendous strain on the
founders‘ personal lives. The cost of the uncertainty that comes with a new
venture can be staggering in terms of stress on family relationships, selfimage,
and personal bank accounts.
2. The High-Tech Invention Myth: ―Most successful entrepreneurs start their
companies with a break-through invention – usually technological in nature.‖
Going by mainstream media coverage, it would be easy to imagine that most
successful EGCs are built around some sort of invention or breakthrough –
probably technological in nature. But that is not the case. ―Revolutionary
ventures‖ are relatively rare among successful growth companies, according to
Bhidé. He cites Federal Express, which was started in the 1970s on the then-
unheard of idea of creating a worldwide system of transportation dedicated to
providing overnight delivery of packages, as the exception that proves the rule.
Far more common are EGCs like Jiffy Lube, which brought moderate change and
certainly marketable distinctions — but not ―revolution‖ — to the way we change
our oil
3. The Expert Myth: ―Most successful entrepreneurs have strong track records
and years of experience in their industries.‖
4. The Strategic Vision Myth: ―Most successful entrepreneurs have a well-
considered business plan and have researched and developed their ideas before
taking action.‖ While it might be easy to assume that most successful

entrepreneurs start out with a well-considered plan of action, strategic planning

and research are in fact hallmarks of the later stages of development, rather
than a necessary initial ingredient
5. The Venture Capital Myth: ―Most successful entrepreneurs start their
companies with millions in venture capital to develop their idea, buy supplies,
and hire employees.‖ Of all the myths and misunderstandings surrounding
entrepreneurship, the role of venture capital is perhaps the most exaggerated.
The venture capital phenomenon has received so much attention that it often
appears to those looking in from the outside that most decent business ideas
would receive venture backing. The media lavishes coverage on venture-backed
startups, and has highlighted the massive growth in business ―incubators‖
around the country.
2. SOURCES OF OPPORTUNITY
The following are his 7 sources of innovative opportunity.
The Unexpected
The market place is the number one area to look for opportunities. A good manager
should be constantly studying the market. Is a particular product or service in greater
or lesser demand than anticipated? Why? Is there a way we can exploit this unexpected
success? What has to happen if we want to convert this success into an opportunity?
The Incongruity
There is a discrepancy between what is and what should be. This is a key to developing
wildly successful businesses but it‘s tricky. Facebook is a company that nailed it. Prior to
the social network‘s prolific rise Myspace was the dominant player, but it had its
downfalls.Facebook wisely noted what Myspace was vs. what should be and built that
platform. The end result? A company that just had an IPO versus. one that has fallen
off considerably.One of the best places to look for incongruity is in your own customers.
Their complaints and unmet wants are all the hints you need.
Process Need
Process need involves identifying your company‘s process weak spots and correcting or
redesigning them. This is a task oriented solution meaning that the source of innovation
comes from within your existing capabilities and ways of doing business – not the
market. An example might be a restaurant that identifies that people wait too long for
their entrees and so decides to hire another chef to speed up creation times. Essentially
your company will want to look for all weak links and eliminate them.

Industry and Market Structure Change
Your industry and the market are in continual flux. Regulations change and some
product lines expand while others shrink. Firms should continually be on the watch for
this. One example is deregulation. When a previously regulated industry becomes open
there is historical precedence for companies that enter early to be very successful.
Other things to watch out for are the convergence of multiple technologies and
structural problems that occur from time to time (often immediately following an
industry boom).
Demographics
We constantly see changes occur in populations, income levels, human capital

(education) and age ranges. Smart firms are constantly paying attention to this. When
it comes to the baby boomers businesses have been following them constantly as they
got older. At present they are one of the largest as well as the most affluent
demographic groups with high levels of disposable income. Combining demographic
data with segmentation and targeting is a powerful method of accurately meeting a
target market‘s desires.
Changes in Perception, Meaning, and Mood
Over time populations and people change. The way they view life changes, where they
take their meaning from, and how they feel about things also is modified over time and
smart companies must pay attention to this in order to capitalize (and avoid becoming
forgotten, a relic of ages past). Here are two really good examples. First is a principle
called ―downaging‖ which refers to people who look at 50 as being 40. Industries have
responded to this, most notably in the cosmetic and personal care industry which
provides plenty of solutions to help these people look younger. Full industries are
creeping up that make people feel younger. Have you spotted any lately?
New Knowledge
As the speed of technological revolution increases there will be an ever increasing

number of opportunities that open up. The internet has been the most notable one in
the last couple decades but there have been a plethora of other industries and
opportunities pop up as a result of this technological revolution. New knowledge is
about more than just technology though, it‘s about finding better ways of doing things
and improving processes. Your company should look to this new knowledge for ways it
can improve incrementally.

3. THE CREATIVE PROCESS: THE FIVE STAGES OF CREATIVITY

Raw creativity and an affinity for lateral thinking may be innate, but creative people
must refine these skills in order to become masters in their respective fields. They
practice in order to apply their skills readily and consistently, and to integrate them with
other thought processes and emotions. Anyone can improve in creative efforts with
practice. For our purposes, practice is a model for applied creativity that is derived from
an entrepreneurial approach (Figure 4.11).35 It requires:
1. Preparation
2. Incubation
3. Insight
4. Evaluation
5. Elaboration
Preparation
Preparation involves investigating a chosen field of interest, opening your mind, and
becoming immersed in materials, mindset, and meaning. If you have ever tried to
produce something creative without first absorbing relevant information and observing
skilled practitioners at work, then you understand how difficult it is.
Incubation
Incubation refers to giving yourself, and your subconscious mind in particular, time to
incorporate what you learned and practiced in the preparation stage. Incubation
involves the absence of practice. It may look to an outsider as though you are at rest,
but your mind is at work. A change of environment is key to incubating ideas.
Insight
Insight or ―illumination‖ is a term for the ―aha!‖ moment—when the solution to a

creative problem suddenly becomes readily accessible to your conscious mind. The
―aha!‖ moment has been observed in literature, in history, and in cognitive studies of

creativity.40 Insights may come all at once or in increments.
Evaluation
Evaluation is the purposeful examination of ideas. You will want to compare your
insights with the products and ideas you encountered during preparation. You also will
want to compare your ideas and product prototypes to the goals you set out for
yourself during the preparation phase.
Elaboration
The last stage in the creative process is elaboration, that is, actual production.
Elaboration can involve the release of a minimum viable product (MVP). This
version of your invention may not be polished or complete, but it should function well
enough that you can begin to market it while still elaborating on it in an iterative
development process.
4. THE ORIGIN AND EVOLUTION OF NEW BUSINESS

20th century
In the 20th century, entrepreneurship was studied by Joseph Schumpeter in the 1930s
and by other Austrian economists such as Carl Menger (1840-1921), Ludwig von
Mises (1881-1973) and Friedrich von Hayek (1899-1992). While the loan from French of
the English-language word "entrepreneur" dates to 1762,[38] the word
"entrepreneurism" dates from 1902[39] and the term "entrepreneurship" also first
appeared in 1902.[40] According to Schumpeter, an entrepreneur is willing and able to
convert a new idea or invention into a successful innovation.[41] Entrepreneurship
employs what Schumpeter called the "gale of creative destruction"[42] to replace in
whole or in part inferior offerings across markets and industries, simultaneously
creating new products and new business models,[citation needed] thus creative destruction is
largely[quantify] responsible for long-term economic growth. The idea that
entrepreneurship leads to economic growth is an interpretation of the residual
in endogenous growth theory[clarification needed] and as such continues to be debated in
academic economics. An alternative description by Israel Kirzner (1930- ) suggests that
the majority of innovations may be incremental improvements - such as the
replacement of paper with plastic in the construction of a drinking straw - that require
no special qualities.
For Schumpeter, entrepreneurship resulted in new industries and in new combinations

of currently existing inputs. Schumpeter's initial example of this was the combination of
a steam engine and then current wagon-making technologies to produce the horseless
carriage. In this case, the innovation (i.e. the car) was transformational but did not
require the development of dramatic new technology. It did not immediately replace the
horse-drawn carriage, but in time incremental improvements reduced the cost and
improved the technology, leading to the modern auto industry. Despite Schumpeter's
early 20th-century contributions, traditional microeconomic theory did not formally
consider the entrepreneur in its theoretical frameworks (instead of assuming that
resources would find each other through a price system). In this treatment, the
entrepreneur was an implied but unspecified actor, consistent with the concept of the
entrepreneur being the agent of x-efficiency.
For Schumpeter, the entrepreneur did not bear risk: the capitalist did. Schumpeter
believed that the equilibrium was imperfect. Schumpeter (1934) demonstrated that the
changing environment continuously provides new information about the optimum
allocation of resources to enhance profitability. Some individuals acquire the new
information before others and recombine the resources to gain an
entrepreneurial profit. Schumpeter was of the opinion that entrepreneurs shift
the production-possibility curve to a higher level using innovations.[43]
Initially, economists made the first attempt[when?] to study the entrepreneurship concept
in depth.[44] Alfred Marshall viewed the entrepreneur as a multi-tasking capitalist and
observed that in the equilibrium of a completely competitive market there was no spot
for "entrepreneurs" as economic-activity creators.[45]
Changes in politics and society in Russia and China the late-20th century saw a
flowering of entrepreneurial activity, producing Russian oligarchs[46] and Chinese
millionaires.[47]
21st century
In 2012, Ambassador-at-Large for Global Women's Issues Melanne Verveer greets
participants in an African Women's Entrepreneurship Program at the State
Department in Washington, D.C.
In the 2000s, entrepreneurship was extended from its origins in for-profit businesses to
include social entrepreneurship, in which business goals are sought alongside social,
environmental or humanitarian goals and even the concept of the political
entrepreneur.[according to whom?] Entrepreneurship within an existing firm or large
organization has been referred to as intrapreneurship and may include corporate

ventures where large entities "spin-off" subsidiary organizations.[48]

Entrepreneurs are leaders willing to take risk and exercise initiative, taking advantage of
market opportunities by planning, organizing and deploying resources,[49] often by
innovating to create new or improving existing products or services. [50] In the 2000s,
the term "entrepreneurship" has been extended to include a specific mindset resulting
in entrepreneurial initiatives, e.g. in the form of social entrepreneurship, political
entrepreneurship or knowledge entrepreneurship.
According to Paul Reynolds, founder of the Global Entrepreneurship Monitor, "by the
time they reach their retirement years, half of all working men in the United States
probably have a period of self-employment of one or more years; one in four may have
engaged in self-employment for six or more years. Participating in a new business
creation is a common activity among U.S. workers over the course of their
careers".[51] In recent years, entrepreneurship has been claimed as a major driver
of economic growth in both the United States and Western Europe.
Entrepreneurial activities differ substantially depending on the type of organization and
creativity involved. Entrepreneurship ranges in scale from solo, part-time projects to
large-scale undertakings that involve a team and which may create many jobs. Many
"high value" entrepreneurial ventures seek venture capital or angel funding (seed
money) to raise capital for building and expanding the business.[52] Many organizations
exist to support would-be entrepreneurs, including specialized government
agencies, business incubators (which may be for-profit, non-profit, or operated by a
college or university), startup studios, science parks and non-governmental
organizations, which include a range of organizations including not-for-profits, charities,
foundations and business advocacy groups (e.g. Chambers of commerce). Beginning in
2008, an annual "Global Entrepreneurship Week" event aimed at "exposing people to
the benefits of entrepreneurship" and getting them to "participate in entrepreneurial-
related activities" was launched
5. THE MINDSET OF ENTREPRENEUR LEADER
Positive Attitude: A positive attitude and outlook is a must for successful

entrepreneurs. The mindset of the head of the company sets the tone for the rest of
the company and influences corporate culture. Negative thoughts undermine forward
motion and the progress of the company, not to mention the management‘s ability to
lead staff and motivate employees. Part of what gives entrepreneurs the fortitude to
weather the business downturns is positivity. Never has the adage ―Creativity is the
mother of invention‖ been truer than in the world of entrepreneurship. Think of Steve
Jobs and the iPhone. Edison and the light bulb. The Wright Brothers and the airplane.

Each of these ground-breaking inventions would not have come to fruition were it not
for healthy doses of creative gumption.
Creative Mindset: Even if you‘re not in a ―creative‖ industry, creativity is needed for
entrepreneurial success. The mind of an entrepreneur is always looking for novel ideas
and innovations. The basic life cycle of any entrepreneurial product stems from the
conception of an idea followed by turning that idea into a viable product or service.
Persuasive Communication Ability: The best entrepreneurs are persuasive

individuals. The power of persuasion can help you negotiate, close a sale, or score a
lower price on your inventory. Not to mention, persuasive people tend to be inspiring
leaders, ergo they tend to be stellar bosses.
Intrinsic Motivation and Drive: One of the top entrepreneurial characteristics is

intrinsic motivation, meaning you are self-motivated as opposed to looking to others to
push you to do things or hold you accountable. Broadly speaking, those who own their
own businesses are incredibly motivated to succeed. They‘ve poured blood, sweat, and
tears into their company, and may have literally mortgaged their future to first open
their businesses‘ doors. Having a lot at stake personally fuels the motivational drive.
Tenacity and an ability to learn from failure: When you‘re starting a business, you
hope that your business will be a wild success. It‘s true that success is wonderful, but
failure is where growth and change happen. The key to learning from failure is to
actually learn and embrace your mistakes so they make your better, not break you.
6. ENTREPRENEURIAL OPPORTUNITY
Aspiring entrepreneurs can come up with ideas all day long, but not every idea is
necessarily a good idea. For an idea to be worth pursuing, we must first determine
whether the idea translates into an entrepreneurial opportunity. Entrepreneurial
opportunity is the point at which identifiable consumer demand meets the feasibility
of satisfying the requested product or service. In the field of entrepreneurship, specific
criteria need to be met to move from an idea into an opportunity. It begins with
developing the right mindset—a mindset where the aspiring entrepreneur sharpens his
or her senses to consumer needs and wants, and conducts research to determine
whether the idea can become a successful new venture.
In some cases, opportunities are found through a deliberate search, especially when
developing new technologies. In other instances, opportunities emerge serendipitously,
through chance. But in most cases, an entrepreneurial opportunity comes about from
recognizing a problem and making a deliberate attempt to solve that problem. The

problem may be difficult and complex, such as landing a person on Mars, or it may be a
much less complicated problem such as making a more comfortable pillow, as
entrepreneur Mike Lindell did by inventing My Pillow.
Theories of Opportunity
In the twentieth century, economist Joseph Schumpeter, as shown in Figure 5.2, stated
that entrepreneurs create value ―by exploiting a new invention or, more generally, an
untried technological possibility for producing a new commodity or producing an old one
in a new way, by opening up a new source of supply of materials or a new outlet for
products, by reorganizing an industry‖ or similar means.
According to Schumpeter, entrepreneurial innovation is the disruptive force that creates

and sustains economic growth, though in the process, it can also destroy established
companies, reshape industries, and disrupt employment. He termed this force creative
destruction. Schumpeter described business processes, including the concept of
downsizing, as designed to increase company efficiency. The dynamics of businesses
advances the economy and improves our lifestyle, but the changes (sometimes through
technology) can make other industries or products obsolete. For instance, Schumpeter
provided the example of the railroad changing the way companies could ship
agricultural products quickly across the country by rail and using ice ―cold cars,‖ while
at the same time, destroying the old way of life for many ranchers who wrangled cattle
from one location to their intended commercial destination.
Today, we might think of the displacement of taxi drivers by ride-sharing services such
as Uber and Lyft as a modern-day example of this concept. To own and operate a New
York City cab, for instance, one must buy what is called a taxi medallion, which is
basically the right to own and operate a cab. Drivers take out loans to buy these
medallions, which cost hundreds of thousands of dollars. But now, ride-sharing services
have eaten in to the taxi industry, all but destroying the value of the medallions, and
the ability of taxi drivers to make the same money they were before the popular
services existed. This change has left many taxi drivers in financial ruin. 3 Schumpeter
argued that this cyclic destruction and creation was natural in a capitalist system, and
that the entrepreneur was a prime mover of economic growth. To him, the goal was to
progress, and progression starts with finding new ideas. He identified these methods for
finding new business opportunities:
1. Develop a new market for an existing product.

2. Find a new supply of resources that would enable the entrepreneur to produce
the product for less money.
3. Use existing technology to produce an old product in a new way.
4. Use an existing technology to produce a new product.
5. Finally, use new technology to produce a new product.
We can understand theories of opportunity as related to supply or demand, or as

approaches to innovations in the use of technology. The first situation is a demand
opportunity, whereas the remaining situations are supply situations. The final three
incorporate technological innovations. Supply and demand are economic terms relating
to the production of goods.
Supply is the amount of a product or service produced. Demand is the consumer or

user desire for the outputs, the products, or services produced. We can use the ideas
from Schumpeter to identify new opportunities. Our focus is on identifying where the
current or future supply and the current or future demand are not being met or are not
aligned, or where technological innovation can solve a problem.
7. FEASIBILITY ANALYSIS
Feasibility analysis is the process of confirming that a strategy, plan or design is
possible and makes sense. This can be used to validate assumptions, constraints,
decisions, approaches and business cases. The folowing are the common types of
feasibility analysis
Financial
Validating that a goal is possible within your financial constraints. For example, a
construction project that uses reference class forecasting as a sanity check for project
budget.
Schedule
Validating that a goal is possible with time constraints. For example, a fashion label
discovers a trendy new fashion accessory at a fashion week. They do a feasibility check
to see if they can produce and distribute the item in time for the Spring/Summer
season.
Technical
Validating that a given technology can support requirements or that a goal is technically
possible. For example, an ecommerce project confirms that a partner's API can support

a list of requirements for an integration project.
Market
Research to estimate the probability that a product, service or customer experience

strategy will succeed in the market. This may include factors such as customer needs,
perceptions, demand, positioning and competition.
Regulations & Standards
Confirming that a strategy complies with laws, regulations and standards.
Organizational
Looking at the people side of change such as a strategy that requires a significant
change to organizational culture.
Operations
The feasibility of deploying and operating a project. For example, the costs and
technical challenges associated with operating and maintaining a deep water offshore
wind farm

1. Aside from the mindset mentioned in the module, what do you think are the skills
that an entrepreneur should have?
2. Cite common examples of entrepreneurial oppurtunities and why?
Review of Concepts:

point of time


opportunity
POST TEST

is a false.
1. The Risk-Taking Myth: ―Most successful entrepreneurs take wild, calculated risks in
starting their companies.‖
2. The Expert Myth: ―Most successful entrepreneurs have strong track records and
years of experience in their industries.‖
3. Raw creativity and an affinity for lateral thinking may be innate, but creative people
must refine these skills in order to become masters in their respective fields.
4. Preparation involves investigating a chosen field of interest, opening your mind, and
becoming immersed in materials, mindset, and meaning.
5. Evaluation is the purposeful examination of works. You will want to compare your
insights with the products and ideas you encountered during preparation.
6. The first stage in the creative process is elaboration, that is, actual production.
Elaboration can involve the release of a minimum viable product (MVP).
7. We don‘t constantly see changes occur in populations, income levels, human capital
(education) and age ranges. Smart firms are constantly paying attention to this.
8. Feasibility analysis is the process of confirming that a strategy, plan or design is

possible and makes sense
9. The best entrepreneurs are persuasive individuals. The power of persuasion can help
you negotiate, close a sale, or score a lower price on your inventory.
10. Demand is the amount of a product or service produced. Supply is the consumer or
user desire for the outputs, the products, or services produced.
References:
[Online]:https://simplicable.com/new/feasibility-analysis
[Online]:https://openstax.org/books/entrepreneurship/pages/2-2-the-process-of-
becoming-an-entrepreneur

PRE-TEST ANSWERS
1. F
2. T
3. T
4. T
5. F
6. F
7. F
8. T
9. T
10. F

Module
ENTREPRENEURSHIP
Topic 3: Business Planning and the Value Proposition

1.8 Company Research
1.9 Entrepreneurial Market Research
1.10 Business Plans
1.11 Value Proposition Presentation
1.12 Company Formation
1.13 Financials, Balance Sheets, Cash flow Analysis, Income Statement, Pro-Formats
Time Frame: 6 hrs
Introduction:
Engineering is the creative application of science, mathematical methods, and empirical
evidence to the innovation, design, construction, operation, and maintenance of structures,
machines, materials, devices systems, processes, and organization for the benefit of humanity.
In essence, engineering has played a significant role in the existence of human beings from
time immemorial, the roles that engineering is playing in making life comfortable for all and
sundry can never be underestimated.
Entrepreneurship is the method of designing, launching and running a new business. It
is the capacity and willingness to develop, organize, and manage a business venture along with
the risks in order to recognize the commercial potential of the invention and organize the
capital, talent, and other resources that will turn an invention into a commercially viable
innovation. Entrepreneurship cuts across every sector of human life including the field of
engineering, engineering entrepreneurship is the process of harnessing the business
opportunities in engineering and turning it into profitable commercially viable innovation.

There are numerous innovations and business ideas in engineering that can create
wealth. An engineering entrepreneur is required to have the capacity and willingness to
harness, develop, organize, and manage the business venture conceived with an engineering
idea and manage the risk involved painstakingly in order to make a profit. It is imperative for
engineering entrepreneur to have the creative mindset and skills needed for problem-solving
that the field of engineering is known for; it involves the acquisition of tools, methods,
knowledge of processes, and the organizational and managerial understanding of innovation
and entrepreneurship that will stand him to out.
Objectives:
-Explain and understand the idea on how Business Planning and the Value
Proposition work as a process to a successful entrepreneur.
-Understand the expectations and motivations of the topic being presented in this
module.
Learning Activities
map.
PRE-TEST
Questions:
4. Explain Business Planning and the Value Proposition?

5. Discuss briefly your knowledge on Business Planning?

8. COMPANY RESEARCH
This guide is designed to give someone searching for company information a place
to start with a few ideas and strategies for finding company information. The content
of this guide is not intended to include all sources of company information, in all places,
or published by all publishers—there are too many sources than could be included in a
single guide. While the bulk of this guide is focused on more common sources that may
be of use for those looking for information on companies that are in the U.S. and active,
and for those looking for current information - there is a section for international
companies and many of the sources can also be used for historical research.
When doing company research there are many sources to use. Depending on the
company—its size, industry, or location—some sources will be good while others will
not. Small and private companies tend to be harder to research; researching them
tends to be a more creative exercise. Those companies in industries that are dominated
by private companies or those in areas that are more suspicious of their competitors,
also tend to keep their information more closely held and also can require creative
searching. While you will find a lot of information available on the Internet, it may not
be reliable, and you may not find what you are looking for if you rely solely on free
Internet sources.
Company research aids in the identification of both opportunities and risks. It aids in
the identification of issues, allowing for informed decisions to be made on how to best

address the problem. It aids in a better understanding of customers and, as a result,
can be beneficial in improving communication with customers or stakeholders.
Entrepreneurial Market Research, on the other hand, can greatly aid your marketing
plan.
9. ENTREPRENEURIAL MARKET RESEARCH

Entrepreneurial market research, Conducting Market Research is absolutely
necessary to understand whether or not your business is likely to be successful. This
assignment was designed to help you get started on the Market Research portion of
your final Business Plan. For this assignment you should endeavor to do market
research on the topic/business you chose for your Business Plan. It will help you
understand the process you would follow in a real business environment and at the
same time you will be doing the groundwork for your Business Plan.
New business ideas tend to be the result of the recognition of an opportunity by the
entrepreneur, but there are many ways to come up with an idea for a business. The
best place to start is to share ideas with family and friends. Sharing ideas and
observations will lead you into hypotheses of what the value proposition of your start
up should be. We expect for you to come to the first day of class with a hypothesis of a
problem you think you can solve for a customer. The Business Ideation Tool was
designed to help you learn how to develop business ideas that work for you and are

relevant. This tool is available for you on Blackboard and will help you choose an idea
through a brainstorming exercise. If you already have an idea this exercise can help you
test your idea.
Every business venture needs a solid plan that will evaluate the commercial viability
of the business idea. With a business plan, detailed market research, and the required
customers‘ feedback will be evaluated.
10. BUSINESS PLAN

A Business Plan aids in the direction of your company's activities and, if relevant,
provides investors and lenders with the information they require to decide whether or
not to support your business. A business plan enables you to share your vision with
others and encourage them to assist you in achieving your objectives. Furthermore, a
winning value proposition is required to deliver a successful sales presentation. A strong
value proposition will attract customers.
11. VALUE PROPOSITION PRESENTATION

A strong value proposition should meet three qualities: valuable to customers,
differentiated from alternatives, and substantiated as reliable. Canvas the customer
value that your product or feature provides to maximize product potential. The inherent
merit of your brand, product, or feature is indispensable, but can only carry you so far.
Having a crafty and artful way to persuade the customer why they need you can do
wonders. Without a key value proposition, the marketing may not be persuasive enough

to shine a light on what your product can bring to the table. Even worse, the end-user
may not even understand what you‘re selling or why they need it.
Meanwhile, the right value proposition can make an average product feel
irreplaceable. With a strong value prop, your next innovation can communicate and
deliver concrete usefulness to the customer base and succeed where so many others
fail.
12. COMPANY FORMATION (FINANCIAL, BALANCE SHEET, CASH

FLOW ANALYSIS, INCOME STATEMENT, PRO-FORMATS)
One of the most crucial aspects in the start-up of a new business is deciding on the
best business form. This phase is sometimes disregarded, and its significance
minimized, but it should not be because the business form chosen will have an impact
on taxation, administration, and liability issues. Finance is, without a doubt, one of the
most critical components of a company. With large sums of money, a constant flow of
cash, and ongoing transactions, controlling and monitoring all of the aforementioned is
essential. In fact, financial management has a significant impact on decision-making.
Investors use the balance sheet, together with the income and cash flow statements,
to acquire insight into a company's activities. A balance sheet's aim is to show what the
business owns and owes, as well as to provide interested parties a sense of the
company's financial status. The cash flow analysis report crucial since it tells the
reader about the financial situation of the company. It requires funds to cover bills,

repay bank debts, pay taxes, and acquire new assets. A cash flow report assesses
whether or not a company has adequate cash to do so. The income statement is
crucial because it shows whether or not a company is profitable. On the income
statement, a company's total revenues and expenses are listed. The overall profit for
the specified accounting period, usually a year or a quarter of a year, is calculated by
subtracting expenses from revenues. Finally, Pro formats income statements are
significant in terms of the information they may provide to a business. If it's getting
ready to produce new items, for example, the financial accounts can help anticipate if
the new goods would cause expenses to rise.

1. What do you think are the skills that an entrepreneur should have?
2. How important is to have a Busines Plann as an Entrepreniur and why?
Review of Concepts:
The term opportunity implies a good chance or a favorable situation to do something

favorable change available to run a specific business in a given environment at a given
point of time
Entrepreneurship is the method of designing, launching and running a new business. It

is the capacity and willingness to develop, organize, and manage a business venture
along with the risks in order to recognize the commercial potential of the invention and
organize the capital, talent, and other resources that will turn an invention into a
commercially viable innovation.

POST TEST

is a false.
1. Entrepreneurship is the method of designing, launching and running a new business.

2. When doing company research there are many sources to use. Depending on the
company—its size, industry, or location—some sources will be good while others will
not.
3. Entrepreneurial market research, Conducting Market Research is absolutely

necessary to understand whether or not your business is likely to be successful.
4. Business Plan aids in the direction of your company's activities and, if relevant,
provides investors and lenders with the information they require to decide whether or
not to support your business.
5. A business plan enables you to share your vision with others and encourage them to
assist you in achieving your objectives.
6. A strong value proposition should meet three qualities: valuable to customers,
differentiated from alternatives, and substantiated as reliable.
7. financial management has a significant impact on decision-making.
8. The income statement is crucial because it shows whether or not a company is

profitable.
9. Pro formats income statements are significant in terms of the information they may
provide to a business.
10. Company research aids in the identification of both opportunities and risks. It aids
in the identification of issues, allowing for informed decisions to be made on how to
best address the problem.
References:
[Online]: www.thebalancesmb.com › business-planning
[Online]: https://www.entrepreneurship.org/articles/2007/03/value-proposition

PRE-TEST ANSWERS
11. T
12. T
13. T
14. T
15. T
16. T
17. T
18. T
19. T
20. T

Module
ENTREPRENEURSHIP
Topic 4: Building a Winning management Team.

1.14 Trust and Communication
1.15 Five Key Elements to Managing Teams
1.16 6 Ways to Build a Winning Team
Time Frame: 6 hrs
Introduction:
Building a successful team is about more than finding a group of people with the
right mix of professional skills. A winning team is different from a good team or a
strong team. A winning team is the agile one, who can stretch objectives and
can accomplish their targets, with a blend of profit and permanence for a better
future. Team building brings people together by encouraging collaboration and
teamwork. One of the most important reasons for team building is to get results.
Through a series of planned team bonding events that are fun and motivational,
teams build skills like communication, planning, problem-solving and conflict
resolution. The key elements to successful teamwork are trust, communication
and effective leadership; a focus on common goals with a collective responsibility
for success (or failure). However, without trust and communication the team will
have difficulty functioning effectively.
Objectives:
Explain idea and opportunity generation

Discuss the tips on how to build a winning team.
Learning Activities
map.

PRE-TEST
Briefly answer each question.
Questions:
6. Explain why is it important to have a winning team?

7. What makes a team win?
Trust and Communication

Today, with business competition, customer expectations, new technology, and
many other developments, it is more critical than ever to build teamwork in your
organization. The many challenges that your organization faces, the more critical
it becomes that teamwork is effective. The key elements to successful teamwork
are trust, communication and effective leadership; a focus on common goals with
a collective responsibility for success (or failure). However, without trust and
communication the team will have difficulty functioning effectively. The whole
process of organizational teamwork must begin with a company leadership team
that creates a business strategy and a focus on the critical goals of the
enterprise. Next there is the process of communicating the vision, values and
mission of the organization to a team, or teams that will be responsible for
planning and executing the mission and building trust in the teams and within
the teams to carry out their assigned responsibilities. Marketing plans, as well as
other operational plans, will succeed only with team-based planning and
execution.
Five Key Elements to Managing Teams
1. Trust among team members. Building trust takes time. If trust is lacking it
must be the responsibility of the team leader to focus first on building trust, i.e.
getting team members to open up (among the team) and expose their
weaknesses and fears to each other. In some cases, a team building exercise
can be utilized. In certain business cases, due to time pressures, the leader may
have to take responsibility for building trust or change the team to achieve the
necessary level of trust for team success. Until everyone is willing to trust the
other members of the team, progress towards team success will be limited.
2. Prepare to engage in debate around ideas. Disagreements can lead to
conflict, but conflict can be good. If ideas are not presented and debated, the
team will miss opportunities to find the best solutions to problems. Respect for

the thoughts and ideas of the other team members will be developed through
healthy debate.
3. Learn to commit to decisions and plans of action. Team results will only
come about as a result of team commitment to team decisions, this includes
agreeing on the specifics of action plans. If some team members are not
consistent with their commitments, the team will not succeed.
4. Hold one another accountable against their plans. Team members must
be prepared to check among themselves to assure progress and overcome
obstacles to progress. Ad hoc meetings may be necessary to coordinate actions
between departments or groups to assure progress.
5. Focus on achieving collective results. The vision and/or mission of the team
must be accepted by all the team members and critical goals viewed as the
collective responsibility of the team. If a return to profitability is a critical goal of
an executive team, priorities and time commitments must be pulled from
elsewhere. Focusing on results that in any way does not support the critical
goal(s) of the team will lead to team failure.
Working effectively and proficiently requires a team to come together for a common
goal. They should also have a clear understanding of how the company and fellow team
members work. Building an effective team is one of the most important responsibilities
of a leader. It's not something you can instantly achieve.
6 Ways to Build a Winning Team
1. Focus on strong leadership. Poor leadership will usually result in poor teams.
The first key to a winning team is leadership. A strong leader demonstrates
integrity and competence and is someone that people trust with the
communication skills to get other people to buy into his or her vision. Strong
leaders inspire ownership in the teams they build. Work on developing trust with
your employees, which starts by listening to them, and prove that your decisions
are based on what you believe is best for the team, and that those decisions
include input from all of those affected by that decision.
2. Set common goals. Winning teams work together towards a shared goal. You
need to answer the question, ―Where are we going?‖ for your team. A winning
team will have a clear goal and plan of action to achieve it. Great goals are
SMART – Specific, Measurable, Achievable, Results-orientated, and with a Time-
frame. SMART goals are however not enough to get teams focused unless
they‘re common to the team. The necessary buy-in ensures improvements in
performance and team spirit.
3. Explain the rules. Imagine trying to win a game of chess if you don‘t
understand the rules. It seems simple that you need to understand the role of

each piece and how they work together to build a good chess strategy, yet so
often business owners don‘t explain the rules to their teams. This leaves
employees frustrated, confused or apathetic because the expectations are
unclear. Do your employees know your company core values? Have you invested
time in defining core values and communicating the company culture to every
team member? You can‘t shoot for a common goal if you haven‘t defined the
playing field. Of course, nobody likes rules, but if you put them in context, they
generally make sense. You need to explain the function of the rules. They are
not there to control and smother, but to clearly define the structure and means
to winning.
4. Develop an action plan. Great ideas, an inspiring vision, and even happy
employees don‘t automatically produce results. Results come from taking action.
Your action plan has three simple components – WHO does WHAT by WHEN.
Organise your plan into logical steps, and delegate each step to the right team
member. Assign accountability and deadlines, and you are ready to go. End
every meeting with an action plan – talk without action is non-productive.
5. Support risk-taking. As long as you have defined the rules of the game, the
team should be encouraged to innovate within those defined boundaries.
Progress is achieved by trying new things, even if it means failing along the way.
As Thomas Edison said, ―I have not failed. I‘ve just found 10000 ways that won‘t
work.‖ If Edison hadn‘t kept trying, despite his failures, we might still be in the
dark. For people to maximize their potential, they need to be allowed to try new
things and make mistakes. Winning teams are willing to stretch their limits. Fear
of mistakes and failure must go. You need to learn to welcome multiple solutions
to challenges and encourage lateral thinking. When you and your team start to
embrace risk, you‘ll be rewarded with synergy in your team and your business.
Of course, risk-taking only works once you‘ve got strong leadership, shared
goals, and rules in place.
6. Involve and include all the people on your team. Winning teams are
created when each person knows they are accepted by the team, and each
member chooses to participate 100%. You need to take the lead here, and
require complete commitment from your team members. Some may need to
change radically or leave. While that may sound tough, it‘s in the best interests
of the team and your business, and probably (if a team member can‘t commit
100%) for the person leaving too.
Leaders owe their teams an answer to the same question that young children often ask
their parents before setting out on a long drive: ―Where are we going and how are we
going to get there?‖ In other words, what is the goal and how are we going to measure
progress along the way? And that may sound simple, but it is often one of the greatest
challenges that teams, divisions and companies face. What does success look like? If
you were to set up a scoreboard to track success over time, what would it measure?

And that may sound simple, but it is often one of the greatest challenges that teams,
divisions and companies face. What does success look like? If you were to set up a
scoreboard to track success over time, what would it measure?
Another benefit of having a simple plan is that it creates a shared goal that will
offset the tendency of people to identify themselves as part of smaller groups. Think of
a football team, for example. There are many ―tribes‖ within a team – offense and
defense, linemen and receivers, running backs and defensive backs. But because the
goal of the team is clear, and there‘s an external scoreboard to track progress, there is
a greater sense of ―us‖ on the team than the ―us and them‖ dynamic that can often
divide colleagues in companies.
Self-Evaluation
(Copy and paste this part in a new document)
1. As an entrepreneur and a leader, how will you keep your team motivated despite
conflicts and obstacles?
2. What does a succesfull team looks like?
Review of Concepts:

point of time

opportunity

POST TEST
Identification:
1. The leader may have to take responsibility for building trust or change the team to
achieve the necessary level of trust for team success.
2. The vision and/or mission of the team must be accepted by all the team members
and critical goals viewed as the collective responsibility of the team.
3. A strong leader demonstrates integrity and competence and is someone that people
trust with the communication skills to get other people to buy into his or her vision.
4. Team members must be prepared to check among themselves to assure progress

and overcome obstacles to progress.
5. As Thomas Edison said, ―I have not failed. I‘ve just found 10000 ways that won‘t
work.‖ If Edison hadn‘t kept trying, despite his failures, we might still be in the dark.
6. Great ideas, an inspiring vision, and even happy employees don‘t automatically
produce results.
7. A winning team will have a clear goal and plan of action to achieve it.
8. Winning teams are created when each person knows they are accepted by the team,
and each member chooses to participate 100%.
9. If ideas are not presented and debated, the team will miss opportunities to find the
best solutions to problems.
10. If some team members are not consistent with their commitments, the team will
not succeed.

References:
[Online]: https://www.bluesteps.com/blog/5-key-factors-managing-successful-teams
[Online]: https://www.actioncoach.com/blog/6-ways-build-winning-team-2/
POST-TEST ANSWERS
21. Trust among team members

22. Focus on achieving collective results
23. Focus on strong leadership
24. Hold one another accountable against their plans
25. Support risk-taking
26. Develop an action plan
27. Set common goals
28. Involve and include all the people on your team
29. Prepare to engage in debate around ideas
30. Learn to commit to decisions and plans of action

Learning Module: Surigao State College of Technology Entrepreneurship Topic 1: Introduction To Entrepreneurship

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Learning Module: Surigao State College of Technology Entrepreneurship Topic 1: Introduction To Entrepreneurship

Uploaded by

Copyright:

Available Formats

LEARNING MODULE SURIGAO STATE COLLEGE OF TECHNOLOGY

Topic 1: Introduction to Entrepreneurship

Time Frame: 6 hrs

Entrepreneurship is the capacity of business visionaries to evaluate the dangers

Upon completion of this course, future entrepreneurs should be able to:

1. Recognize the entrepreneurial potential within yourself.

ES 115 – ENTREPRENEURSHIP FOR ENGINEERS ENGR. VIRNE P. PORTUGUES 1

7. Explore how business opportunities can be turned into sustainable business

8. Explore a typical business model for an entrepreneurship enterprise.

1. What Motivates an Entrepreneur?

1. A Brief about Entrepreneurship in Civil Engineering

Basically, Entrepreneurship is the capability and willingness to form, arrange and

ES 115 – ENTREPRENEURSHIP FOR ENGINEERS ENGR. VIRNE P. PORTUGUES 2

regard requirement of license building planner is noticeable. Those who

 Civil Contractor and Sub-contractor: Civil contractor are referred as

 Consultant: Consultants may be from any specialization of this core

 Quantity Surveyor: They are mainly responsible for controlling cost of a

 Material Supplier: Material is an indispensable part of any business

 Labour Contractor: This is a person or enterprise that supplies workers

 Surveyor: Need of private surveyor is crucial for determining the site

ES 115 – ENTREPRENEURSHIP FOR ENGINEERS ENGR. VIRNE P. PORTUGUES 3

of decision to get started in this field of entrepreneurship it pushes an

 Pre-Qualifier: Generally, to start a career as an apprentice in this field it

 Strong Common Sense: Behavioural skills frequently fall under the

 Positive Attitude: Being optimistic and gracious to others helps in

 Vision: The qualities of a good entrepreneur include a well vision setting,

 Honesty and Dedication: This explains assurance to the associates

 Professional Ethics: In the entrepreneurship, ethics has to extend at

 Management Skills and Teamwork: Entrepreneurship as a teamwork

ES 115 – ENTREPRENEURSHIP FOR ENGINEERS ENGR. VIRNE P. PORTUGUES 4

priorities, implementation a project on time and fund management needs

 Courage to face Challenge: Entrepreneurship requires leadership and

Industry and Market Structure Change

ES 115 – ENTREPRENEURSHIP FOR ENGINEERS ENGR. VIRNE P. PORTUGUES 5

We constantly see changes occur in populations, income levels, human capital

Changes in Perception, Meaning, and Mood

As the speed of technological revolution increases there will be an ever increasing

2. Final Words for Future Entrepreneurs:

ES 115 – ENTREPRENEURSHIP FOR ENGINEERS ENGR. VIRNE P. PORTUGUES 6

1. Have a Strong Business Plan: Before its implementation, a business plan is a

3. THE MINDSET OF ENTREPRENEUR LEADER

Positive Attitude: A positive attitude and outlook is a must for successful

ES 115 – ENTREPRENEURSHIP FOR ENGINEERS ENGR. VIRNE P. PORTUGUES 7

Persuasive Communication Ability: The best entrepreneurs are persuasive

Intrinsic Motivation and Drive: One of the top entrepreneurial characteristics is

ES 115 – ENTREPRENEURSHIP FOR ENGINEERS ENGR. VIRNE P. PORTUGUES 8

According to Schumpeter, entrepreneurial innovation is the disruptive force that creates

1. Develop a new market for an existing product.

ES 115 – ENTREPRENEURSHIP FOR ENGINEERS ENGR. VIRNE P. PORTUGUES 9

5. Finally, use new technology to produce a new product.

We can understand theories of opportunity as related to supply or demand, or as

Supply is the amount of a product or service produced. Demand is the consumer or

In order to organize and run a business successfully, an entrepreneur must

ES 115 – ENTREPRENEURSHIP FOR ENGINEERS ENGR. VIRNE P. PORTUGUES 10

Self-Evaluation (Copy and paste this part in a new document)

The term opportunity implies a good chance or a favourable situation to do something

Entrepreneurial opportunity is the point at which identifiable consumer demand meets

ES 115 – ENTREPRENEURSHIP FOR ENGINEERS ENGR. VIRNE P. PORTUGUES 11

Identify wheter the statement is true or false. Write T if true, and F if it

1. Entrepreneurs should have high level of motivation. They should be able to

7. Before its implementation, a business plan is a practice by which an entrepreneur can

8. Feasibility analysis is the process of confirming that a strategy, plan or design is

ES 115 – ENTREPRENEURSHIP FOR ENGINEERS ENGR. VIRNE P. PORTUGUES 12