Professional Documents
Culture Documents
MODULE 3
ENTREPRENEURIAL PROCESS
Prepared by:
MHANDY T. ASIADO
Instructor
Module 3: ENTREPRENEURIAL PROCESS
Entrepreneurial Careers
Steps in the Entrepreneurial Process
● Discovery
● Concept Development
● Resourcing
● Actualization
● Harvesting
2. Concept Development: Develop a business plan: a detailed proposal describing the business
idea.
● Code of ethics
● Mission Statement
● Executive summary
Concept Development
3. Resourcing: The stage in which the entrepreneur identifies and acquires the financial, human,
and capital resources needed for the venture startup, etc.
4. Actualization: The stage in which the entrepreneur operates the business and utilizes
resources to achieve its goals/objectives.
● $$ Grand Opening $$
● Day-to-Day Operations
5. Harvesting: The stage in which the entrepreneur decides on venture’s future growth,
development, or demise
The Important role that entrepreneurship plays in the economy development of an economy can
now be put in more systematic and orderly manner as follows:
1. Entrepreneurship promotes capital formation by mobilizing the idle saving of the public.
2. It provides immediate large-scale employment. Thus, it helps reduce the unemployment
problem in the country, i.e., the root of all socio-economic problems.
3. It promotes balanced regional development.
4. It helps reduce the concentration of economic power.
5. It stimulates the equitable redistribution of wealth, income and even political power in the
interest of the country.
6. It encourages effective resource mobilization of capital and skill which might otherwise
remain unutilized and idle.
7. It also induces backward and forward linkages which stimulate the process of economic
development in the country.
8. Last but not means the least; it also promotes the country's export trade i.e., an
important ingredient to economic development.
Thus, it is clear that entrepreneurship serves as a catalyst of economic development. On the whole, the
role of entrepreneurship in economic development of a country can best be put as “an economy is the
effect for which entrepreneurship is the cause”
Entrepreneurs promote capital formation by mobilizing the idle savings of the public.
They employ their own as well as borrowed resources for setting up their enterprises.
Such type of entrepreneurial activities leads to value addition and creation of wealth, which is
very essential for the industrial and economic development of the country
The growth of industries and business in these areas lead to a large number of public benefits like
road transport, health, education, entertainment, etc. Setting up of more industries leads to more
development of backward regions and thereby promotes balanced regional development.
Industrial developments normally lead to concentration of economic power in the hands of a few
individuals which results in the growth of monopolies.
In order to redress this problem a large number of entrepreneurs need to be developed, which will
help reduce the concentration of economic power amongst the population.
It stimulates equitable redistribution of wealth and income in the interest of the country to more
people and geographic areas, thus giving benefit to larger sections of the society.
Entrepreneurial activities also generate more activities and give a multiplier effect in the
economy.
Entrepreneurs are always on the lookout for opportunities. They explore and exploit
opportunities, encourage effective resource mobilization of capital and skill, bring in new products and
services and develop markets for growth of the economy.
In this way, they help increase gross national product as well as per capita income of the people
in a country. Increase in gross national product and per capita income of the people in a country, is a sign
of economic growth.
Increase in the standard of living of the people is a characteristic feature of economic development
of the country.
Entrepreneurs play a key role in increasing the standard of living of the people by adopting latest
innovations in the production of wide variety of goods and services in large scale that too at a lower cost.
This enables the people to avail better quality goods at lower prices which results in the improvement of
their standard of living.
● TRADE
● EXPORT
● Export trade - Goods or any articles of commerce sold and shipped to other countries
Entrepreneurs act as catalytic agent for change which results in chain reaction. Once an enterprise
is established, the process of industrialization is set in motion. This unit will generate demand for various
types of units required by it and there will be so many other units which require the output of this unit.
This leads to overall development of an area due to increase in demand and setting up of more and more
units. In this way, the entrepreneurs multiply their entrepreneurial activities, thus creating an environment
of enthusiasm and conveying an impetus for overall development of the area.
WHAT IS ENTREPRENEUR??
Entrepreneur is a person who takes initiative or one who comes up with an idea that helps to
create new jobs, encourage society and disperse wealth because of new products or services that are
introduced into the market. This gives great impact to each and every individual as some ways or the
other, we all get correlated. For example, with the introduction of Uber rides it gave great impacts on an
auto rickshaw and local buses whereas millions of people got job car drivers to make that Uber ride
possible.
ECONOMIC DEVELOPMENT
Economic Development is a process in which all efforts are made to increase national income,
national output, per capita income, per capita output and standards of living of people by exploiting all
the available resources of the country.
By establishing the business entity, entrepreneurs invest their own resources and attract capital (in
the form of debt, equity, etc.) from investors, lenders and the public. This mobilizes public wealth and
allows people to benefit from the success of entrepreneurs and growing businesses. This kind of pooled
capital that results in wealth creation and distribution is one of the basic imperatives and goals of
economic development.
2. CREATE JOBS
Any business start-up requires human resources that could fulfill the demand of the company
thereby making earning for themself. Thus it’s very much important for an entrepreneur to seek a
maximum number of employees to work that could help each other in a vice –versa manner.
Hence it’s proven that with each new startup by entrepreneurs more and more people will get
employed.
Entrepreneurs setting up new businesses and industrial units help with regional development by
locating in less developed and backward areas. The growth of industries and business in these areas leads
to infrastructure improvements like better roads and rail links, airports, stable electricity and water
supply, schools, hospitals, shopping malls and other public and private services that would not otherwise
be available.
India’s MSME sector, comprising 36 million units that provide employment for more than 80
million people, now accounts for over 37% of the country’s GDP. Each new addition to these
36 million units makes use of even more resources like land, labor and capital to develop products and
services that add to the national income, national product and per capita income of the country. This
growth in GDP and per capita income is again one of the essential goals of economic development.
5. STANDARD OF LIVING
Entrepreneurs raise the standards of living of people by providing them with a new, better and
improved product. They supply goods having additional features at reasonable prices. They also remove
scarcity of essential commodities and introduce new products which lead to variety in consumption.
6. EXPORTS
Any growing business will eventually want to get started with exports to expand their business to
foreign markets. This is an important ingredient of economic development since it provides access to
bigger markets, and leads to currency inflows and access to the latest cutting-edge technologies and
processes being used in more developed foreign markets. Another key benefit is that this expansion leads
to more stable business revenue during economic downturns in the local economy.
7. COMMUNITY DEVELOPMENT
Economic development doesn’t always translate into community development. Community
development requires infrastructure for education and training, healthcare, and other public services. For
example, you need highly educated and skilled workers in a community to attract new businesses. If there
are educational institutions, technical training schools and internship opportunities, that will help build the
pool of educated and skilled workers. A good example of how this kind of community development can
be promoted is Azim Hashim Premji, Chairman of Wipro Limited, who donated Rs. 27,514 crores for
promoting education through the Azim Premji Foundation. This foundation works with more than
350,000 schools in eight states across India.
ETHICS IN WORKPLACE
Work Ethics
Ethics is a collection of values and behaviors which people feel are moral.
In other words, ―”ethics” is the name we give to our values or good behavior.
Positive work ethic is the collection of all the values and actions that people feel are appropriate in
the workplace.
STANDARDS to be successful in a career you must possess both strong occupational skills and
good work ethics.
The following are ten areas of work ethic traits and performance standards you will be presented
and expected to exhibit in the workplace:
1. ATTENDANCE
● Attend 90% or more of the required class time
● Be tardy for class no more than eight times during a six weeks
● Notify instructor before planned absences or tardiness
● Be prepared for work by reading assignments and completing job
● Participate in activities by contributing to work discussion, completing assignments, and being
involved in any activities
● Begin and end work as expected
● Use work time appropriately
ATTENDANCE
2. CHARACTER
● Display a high level of effort and commitment to performing and completing work
● Be honest in all situations
● Demonstrate trustworthiness and responsible behavior
● Displays loyalty, dependability, reliability, initiative, and self-discipline
LOYALTY
HONESTY
● Honesty is valuable
● Employees account for 30% of all ―”shortages
● Being honest is more than just not taking ―”things”
● In an 8 hour day --- how much time should be spent on a task?
● Using the company telephone for personal calls, checking email, or
texting is actually stealing from the company!!!
Never lie on you’re:
● Application
● Time sheet
● Expense statements
Never cheat a:
● Customer
● Associate
● Employer
TRUSTWORTHINESS
INITIATIVE
When employees have initiative, they are willing to see that work gets done. People with initiative
are:
● Motivated
● Enthusiastic
● Industrious
● Hard working
People with initiative see a job that needs to be done and do it! Beyond the ―”call of duty”.
4. APPEARANCE
Appearance deals with every aspect of how we perceive an individual. In an instant, we form
opinions about a person based on:
Appearance,
● Smell,
● Cleanliness,
● Mannerisms.
5. ATTITUDE
6. PRODUCTIVITY
7. ORGANIZATIONAL SKILLS
8. COMMUNICATION
The worst assumption a sender of a message can make is that the message will be received as
intended Language itself can be a barrier
● Unclear wording
● Slang
● Jargon
● Tone
● Another barrier is body language
9. COOPERATION
MODULE 3 ACTIVITY
1. What are the key steps involved in the entrepreneurial process from idea generation to business
launch, and why is each step important?
2. How can college students identify potential entrepreneurial opportunities within their campus or
local community?
3. What are the main challenges that college students may face when starting their own businesses,
and how can they overcome these challenges?
4. How important is market research in the entrepreneurial process, and what methods can college
students use to conduct effective market research for their business ideas?
5. What role does innovation play in the entrepreneurial process, and how can college students foster a
culture of innovation within their ventures?
6. Discuss the significance of creating a solid business plan in the entrepreneurial process and outline
the key components that should be included in a college student's business plan.
7. How can college students effectively manage resources such as time, finances, and human capital
during the early stages of their entrepreneurial journey?
8. Explain the concept of validation in the entrepreneurial process and discuss strategies that college
students can use to validate their business ideas before investing significant time and resources.
9. What are some common mistakes that college student entrepreneurs make, and how can they avoid
or mitigate these mistakes?
10. Reflecting on successful entrepreneurial ventures launched by college students, what lessons can be
learned and applied to one's own entrepreneurial endeavors?