BM2211

Name: Mateo P. Penit Jr. Section: BSCS 2.1A Date: 09/21/2023

ACTIVITY

Instructions: In 800 words, answer the questions below using a narrative or essay format. (20 points)

 In your opinion, how does value creation affect entrepreneurship?

 Will you aspire to have a business that creates value for society or a company that makes
value for the shareholders? Why?
 In your opinion, how does value creation affect entrepreneurship?

Entrepreneurship is all about creating value. It serves as both the driving force and ultimate objective of
entrepreneurial ventures. The process of creating value profoundly influences these ventures, determining
their essence and degree of success. The relationship between entrepreneurship and value creation
manifests in various crucial ways.

Firstly, entrepreneurship involves recognizing unmet market needs or inefficiencies and crafting innovative
solutions to address them. Innovation is intrinsically linked to value creation. Entrepreneurs who can
envision products, services, or processes that provide better utility, convenience, cost-efficiency, or customer
satisfaction are better positioned for success. By creating value through improved experiences or outcomes,
entrepreneurs can attract customers, generate revenue, and gain a competitive advantage.

Moreover, the ability to create value plays a pivotal role in attracting investors and forging partnerships for
entrepreneurial endeavors. Investors are driven by the prospect of securing a return on their investments, so
they are more inclined to support ventures that demonstrate the potential to generate value. The
commitment to value creation not only facilitates the acquisition of necessary funding but also cultivates
collaborative ventures with businesses or individuals who can complement the entrepreneurial initiative,
thus enhancing its overall prospects for success.

Sustainability and growth within entrepreneurial ventures rely on their consistent ability to create value.
Businesses that consistently deliver value to their customers build trust and loyalty, fostering repeat business
and positive word-of-mouth referrals. This virtuous cycle drives organic growth, reduces customer
acquisition costs, and empowers entrepreneurs to reinvest in their enterprises, facilitating expansion and
increased outreach.

Furthermore, the concept of value creation serves as a potent motivator and source of inspiration for
founders and their teams. The anticipation of making a meaningful impact on the lives of customers or the
industries they serve can be an immensely motivating force. Entrepreneurial undertakings that align with a
profound sense of purpose and a commitment to societal betterment frequently attract passionate
individuals who are willing to dedicate themselves wholeheartedly to realizing their vision.

In addition to its financial dimensions, value creation transcends monetary gains. It encompasses the
creation of employment opportunities, the advancement of technology, and the enrichment of the overall
quality of life in society. Entrepreneurs who prioritize value creation not only contribute to economic
expansion but also participate in the progression of social well-being.

In summary, entrepreneurship and value creation are inseparable. The success of any entrepreneurial venture
rests on the ability to discern and deliver value that corresponds to market demands, appeals to stakeholders,
fosters growth, and aligns with broader societal aspirations. Entrepreneurship can be a positive catalyst for
change, driving innovation, fostering economic development, and enhancing the quality of life for individuals and
communities.

 Will you aspire to have a business that creates value for society or a company that makes value
for the shareholders? Why?
The debate over whether to prioritize the creation of value for society or shareholders is a multifaceted issue
that requires careful consideration. At its core, this dilemma represents a fundamental choice that
individuals and organizations must make regarding their purpose and priorities. While each approach has its
own merits, the decision should be guided by personal values, long-term goals, and ethical principles.

Focusing on social value creation means committing to making a positive impact on society beyond financial
gains. This approach involves addressing pressing social issues, promoting community and environmental
well-being, and actively contributing to improving people's lives. By embracing corporate sustainability as a
core value, trust among stakeholders can be established, brand reputation can be enhanced, and socially
conscious consumers can be attracted. These factors can contribute to long-term prosperity and sustainable
growth.

Moreover, prioritizing social value creation requires active engagement with a wide range of stakeholders.
This includes not only shareholders but also clients, employees, suppliers, and local communities. By
recognizing the importance of addressing the needs and concerns of all these groups, a sense of
responsibility and interconnectedness can be fostered that goes beyond profit margins. Through
collaborative efforts with these stakeholders, companies can create a more inclusive and resilient business
ecosystem that contributes to the overall well-being of society.

On the other hand, a focus on profit maximization may lead to short-term gains, but it can neglect the
interests of other stakeholders, such as employees, customers, and the environment. This single-minded
pursuit of profit can erode trust, damage reputation, and even lead to legal and ethical challenges.

It is crucial to recognize that there are trade-offs between these two approaches. Prioritizing social value
creation may require sacrificing some short-term financial gains for the sake of long-term sustainability and
societal benefit. Conversely, a strict focus on profit maximization may lead to negative externalities and a
lack of resilience when facing societal challenges.

Ultimately, the decision between prioritizing society or shareholders should align with an organization's core
values and long-term objectives. A balance that reflects values and principles can be struck, allowing
organizations to navigate this complex terrain and contribute positively to both society and shareholders. By
doing so, a path toward sustainable and responsible growth can be charted, benefiting everyone involved.

Rubric for grading:

CRITERIA PERFORMANCE INDICATORS POINTS
Content Provided pieces of evidence, supporting
15
details, and factual scenarios
Organization Expressed the points in a clear and
of ideas logical arrangement of ideas in the 5
paragraph
TOTAL 20

02 Activity 2 *Property of STI

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