BTVTED 3- ENTREPRENEURSHIP

ELEMENTS OF
ENTREPRENEURSHIP
Prepared by: Steven Paul O. Tuquero
ELEMENTS OF
ENTREPRENEURSHIP
 INNOVATION
It is considered as the key factor in the concept of entrepreneurship. An
entrepreneur adds to the economy in terms of innovation and discrepancy and the
degree of these assures a positive outcome. The entrepreneurs carry out imaginative
and unique thoughts on the available situations and strive to foster something new.
It can be in terms of a new product, production technique, technology, marketing
strategy, and so on.
 ORGANIZATION
The organization is another key element of successful entrepreneurship. Without
organization, everything will become disorganized and unmanageable which further
will cause losses, decrease business goodwill, unsatisfied customers, and mental
stress to the staff due to which the workers may leave the organization Hence it is
insignificant to maintain a decent organizational structure within the company,
which defines who will perform a specific task and the way that task would be
performed.
 RISK
All businesses involve risks and in entrepreneurship, it is the sole responsibility of
the entrepreneur only as it is a “one-man-show”. Without taking risks, a business
cannot flourish but on the other hand, indulgence in excessive risk-taking may lead
to severe losses. Risk-taking is another word for exploiting opportunities and
gaining a competitive edge over others performing in the same market. This way,
the business and the economy both are facilitated.
 DECISION-MAKING
It is the art of making a series of choices, some of which may be wrong, but one
that can lead to success. Entrepreneurial decision-making constitutes other crucial
elements of entrepreneurship or any entrepreneurial journey. These decisions
determine whether the business will succeed or fail. Entrepreneurship is about
making decisions, and this is especially true for those who are in the early stages of
their business ventures. A good entrepreneur knows how to make better decisions
than other people, but the key is to make the right ones at the right time to succeed
as an entrepreneur.
 VISION
An entrepreneur must have a strong vision if he wants to succeed in the business.
The foresight of the entrepreneur determines how the business and other business
policies will run. The way the entrepreneur visualizes his business in the coming
years is how the business moves forward and the profitability is earned. Keeping
the vision in the head, the tasks are identified, and performed, risks are taken and
organizational culture is brought forth. It is important to set long-term and short-
term goals for a business so that the organizational objectives are learned.
 OPPORTUNITY
RECOGNITION
Entrepreneurs discover opportunities when they search for them in existing
markets. This means they observe technological, economic or social trends.
Recognizing opportunities is a cognitive process. It relies on the ability of people to
recognize patterns and connect the dots. Entrepreneurs identify and capitalize on
opportunities in the market. This involves recognizing unmet needs, gaps in the
market, or areas where improvements can be made.
 MARKETING &
SALES
Marketing and sales are critical components of entrepreneurship and play a key role
in the success of a business. Marketing and sales further revolve around major
aspects, including product or service promotion, customer acquisition, building
customer relationships, and the sales process.
 FINANCIAL
MANAGEMENT
“Financial management is a critical characteristic of entrepreneurship”, as it helps
ensure a business’s financial stability and success. Financial management involves
several key aspects, including fundraising, budgeting, cash flow management, and
financial planning and analysis. Entrepreneurs must have a basic understanding of
financial management, budgeting, and accounting. This knowledge is essential for
making informed business decisions.
 LEADERSHIP
Leadership is an essential aspect of entrepreneurship, as it involves building and
leading a team, making decisions, communicating effectively, and setting a vision
and goals. This involves creating a positive work environment, setting clear
expectations, and providing ongoing support and feedback. Effective leadership is
essential for the success and growth of a business.