TECHNOPRENEURSHIP:

Entrepreneurship

Nature of Entrepreneurship “Entrepreneurship is the ability to create and build a vision from

-It is a socio-economic phenomenon practically nothing. Fundamentally, it is a human, creative act. It is the
-Engine of economic growth application of energy to initiating and building an enterprise or organization,
-Creator of wealth and employment. rather than just watching or analyzing. This vision requires a willingness to
take calculated risks both personal and financial, and then to do everything

What is Entrepreneurship? possible to reduce the chances of failure.

Entrepreneurship also includes the ability to build an entrepreneurial
-It is a creative and innovative human act.
-Ability to create and build a vision from practically nothing. or venture team to complement your (the entrepreneur) own skills and

-Vision requires willingness to take calculated risks. talents. It is the knack for sensing an opportunity where others see chaos,

-It is a discipline, hence it can be learned (-Peter Drucker) contradiction, and confusion. It is possessing the know how to find, marshal
and control resources, often owned by others.”

Definition of an entrepreneur
Who are the entrepreneurs?
-From French word entreprende meaning ‘go between’ or ‘enter to
undertake’ . A person who undertakes to organize, manage and assume 1.Paradigm shifters, innovators and opportunists creative destroyers

risks of business. 2.Key change catalysts and agents

3.Wealth and employment creators
4.Economic engine drivers
How people become entrepreneur?
5.Key actors of the Philippine Economy
-By Necessity and Opportunity, Design and Default
6.Entrepreneurs are made and not born entrepreneurial propensity
•Triggered by ‘Social Disruption or Interruption”
7.You can be the entrepreneur if you have what it takes
•Entrepreneurs are created in good and bad economic times
8.People who like to be their own boss
•Achievements and Financial Rewards for an Entrepreneur
9.People who has experienced a “social disruption”?
•Many begins but few make it
10.Necessity and opportunity entrepreneurs
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Entrepreneurship

Entrepreneurs are made and not born These opportunity types are not mutually exclusive. For example, a new
venture might employ a new business model for an innovative product.
“The entrepreneurial mystique? It’s not magic, it’s not mysterious and it has
Likewise, the list above is not the collectively exhaustive set of opportunities
nothing to do with the genes It is a discipline And like any discipline, it can
available to organizations. Many profit improvement opportunities are not
be learned” -Petern Drucker
novel–and thus are not entrepreneurial–for example, raising a product’s
price or, once a firm has a scalable sales strategy, hiring more reps.
Entrepreneurship: A working definition

“Entrepreneurship is the pursuit of opportunity beyond resources

“Entrepreneur invests, transforms and makes (profit or loss)”
controlled” (Howard Stevenson, Harvard Business School)
-Richard Cantillon, French economist
In other words, goods are bought at a certain price, value is added by
“Pursuit ” implies a singular, relentless focus.
transforming (the least being to repack) the goods, and the goods are then
Entrepreneurs often perceive a short window of opportunity. They need to sold at an uncertain price.
show tangible progress to attract resources, and the mere passage of time
“Beyond resources controlled” implies resource constraints.
consumes limited cash balances. Consequently, entrepreneurs have a
At a new venture’s outset, its founders control only their own human, social,
sense of urgency that is seldom seen in established companies, where Any
and financial capital. Many entrepreneurs bootstrap: they keep expenditures
opportunity is part of a portfolio and resources are more readily available.
to a bare minimum while investing only their own time and, as necessary,
their personal funds. In some cases, this is adequate to bring a new venture
“Opportunity” implies an offering that is novel in one or more of
to the point where it becomes self-sustaining from internally
four
generated cash flow. With most high-potential ventures, however, founders
ways. The opportunity may entail:
must mobilize more resources than they control personally: the venture
1) pioneering a truly innovative product;
eventually will require production facilities, distribution channels, working
2) devising a new business model;
capital, and so forth.
3) creating a better or cheaper version of an existing product; or
4) targeting an existing product to new sets of customers.
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Entrepreneurship – The risks involved •For example, losing something is typically a conventional problem to solve
it, one looks for the lost item until one finds it. But if the thing lost is one's
• Because they are pursuing a novel opportunity while lacking access to
glasses, one cannot see to look for them a Catch 22
required resources, entrepreneurs face considerable risk, which comes in
four main types.
3.Partnering allows entrepreneurs to leverage another organization’s
1.Demand risk relates to prospective customers’ willingness to adopt the
resources and thereby shifts risks to parties better able/more willing to bear
solution envisioned by the entrepreneur.
them In a variation of this tactic, entrepreneurs rent resources to keep costs
2.Technology risk is high when engineering or scientific breakthroughs are
variable and to avoid the big fixed outlays associated with resource
required to bring a solution to fruition.
ownership.
3.Execution risk relates to the entrepreneur’s ability to attract employees
4..“ by entrepreneurs conjuring a vision of a better world that could be
and partners who can implement the venture’s plans.
brought about by their venture can encourage resource owners to downplay
4.Financing risk relates to whether external capital will be available on
risks and in the process commit more resources than they would if they had
reasonable terms. The entrepreneur’s task is to manage this uncertainty,
not been inspired Steve Jobs, for example, was famous for his mesmerizing
while recognizing that certain risks cannot be influenced by their actions.
“reality distortion field,” through which he impelled employees, partners, and
investors to go to extraordinary lengths to help fulfill his dreams.
Entrepreneurs face a Catch 22. On the one hand, it can be difficult to

reduce risk without resources For example, outside capital may be required
Other catch 22 examples
to develop and market a product and thereby demonstrate that technical
and market risks are limited. On the other hand, it can be difficult to 1.You can't get a job without experience, but you can't get experience

persuade resource owners to commit to a venture when risk is still high without a job.

•A "Catch 22 is "a problem for which the only solution is denied by a 2.The office printer is out of toner. You need to fill out a requisition form to

circumstance inherent in the problem or by a rule request more toner. You don't have any toner to print out the requisition
form.
3.If you go back to work after having a baby, you'll have to deal with
prohibitively expensive childcare costs. If you decide to stay home after
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Entrepreneurship
having a baby, you won't have the income to cover other everyday
expenses.
4.You are locked outside your house. The key is on the dresser in your
bedroom. You have to open the front door in order to get the key, but you
need the key to do that.
5.You get into a car accident with a cyclist. The judge asks you if you saw
the cyclist. If you say you did, the judge says you should have avoided them
then, and you're liable for damages. If you say you didn't, the judge says
you were negligent, and you're liable for damages.
6.You want to apply for a loan at the bank. The bank requires a credit
history. You can't have a credit history without first having a loan.
Customers
A customer is an individual who purchases goods or services from the
businesses. The customer is considered as the king of the business. All the
decisions taken by the business are customer centric. Customers are the
prime force that drives revenue into the business. Without the customers,
businesses do not exist.
What is a customer?
A customer is a person or a business that purchases other businesses’
offerings. Every business designs its products or services based on the
needs and wants of the customers When customers purchase the products,
the sales numbers increase for the business. The business thus spends a
lot of advertising dollars in order to attract customers towards their
products/services. You need to make your customers happy and satisfied
throughout the journey to increase the customer life cycle value.
Types of Customers
1.Loyal customers
-are the top priority customer groups and an important segment to appease.
Usually these customers represent 20 of the customer base and also
contribute to the major portion of revenue for the company. Loyal customers
purchase products or services over a longer period of time and are likely to
be brand advocates for the company. The businesses should also obtain
feedback from the customers in order to grow the business to a next level.
2.Impulse customers
-These are the second most attractive segment of customers identified by
the businesses You can effectively up sell or cross sell to these customers.
Impulse customers buy products and services spontaneously triggered by
an impulse. They don’t have a shopping list at hand while purchasing.
Impulse customers respond to the recommendations and offers. You need to
devise strategies to capture these customers in order to make impulse
purchases.
3.Discount customers
Discount customers play a key role in upbringing the company’s inventory.
The discount customers contribute to the cash flow of the company These
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Entrepreneurship

customers look for discounts, seasonal offers and festive offers. Upselling or Characteristics of a customer
cross selling to these customers would be a bit difficult and they are
1.Well informed. Today consumers share and receive information at a
considered to be less loyal towards the company.
much faster pace because of the advancements in technology and
4.Need base customers
communication. They are very well informed about the company, their
Need based customers buy products or services driven by a particular need.
products, the industry types, the rivals and events
They come with a shopping list based on their needs and quickly purchase
2.Looks for solutions. Today when a customer encounters a small
those products from the store It is quite difficult to upsell to these customers
problem, they might end up calling the customer service to get their problem
and they are also less loyal to the business If their need is satisfied better by
solved.
the competitor’s products they will switch to substitute products easily. In
3.Are social beings. Many customers share their opinions, discuss the
order to retain such customers, you need to develop interaction and a
possible outcomes and come up with solutions It is true that almost half the
positive bond with these customer segments. There is a possibility of
percentage of customers trust an online recommendation more than a
converting need based customers to loyal customers by building strong
brand’s messaging.
positive relationships.
4.Stay connected. If you want to reach your customers, you need to curate
5.Wandering customers
your content across different channels and platforms
Wandering customers are those customers that make up the crowd in the
5.Opinionated Customers. Share and receive feedback from others who
mall or a shopping complex They have no specific need/ preference in their
have already interacted with a brand. These feedbacks might be positive or
mind and just wander the stores for some enjoyment or relaxation They in
negative based on the customer experiences.
particular do not contribute to the profitability of the company The customers
Customers are the prime foundation of any business. The business should
might love the ambience of the store and might stay there just randomly
maintain three important phases that includes customer experience,
looking for products. These customer segments do not contribute much to
customer satisfaction and customer support. You need to enhance the
the profit of the business. The business can still provide insightful
experience of the customers throughout their journey and provide them with
information to these customers to stimulate interest, which might potentially
superior customer service and support which will in turn increase their
end up in a purchase.
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Entrepreneurship

satisfaction and build loyalty. Customers are the direct source to boost the
profitability of your business.