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A Perspective on Entrepreneurship

A Perspective on Entrepreneurship. Chapter 1. ENTREPRENEURSHIP . an important component of a capitalist economy thrives in economic systems that support innovation and hard work Entrepreneurs = success = nation. Entrepreneurship and Economic Development. Entrepreneurship.

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A Perspective on Entrepreneurship

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  1. A Perspective on Entrepreneurship Chapter 1

  2. ENTREPRENEURSHIP • an important component of a capitalist economy • thrives in economic systems that support innovation and hard work • Entrepreneurs = success = nation

  3. Entrepreneurship and Economic Development

  4. Entrepreneurship • It refers to the economic activity of a person who starts, manages, and assumes the risk of a business enterprise • Entrepreneur – is the person who undertakes entrepreneurial activities

  5. Entrepreneur

  6. Entrepreneur’s Task • Products and services for customer’s and producers; • Employment; • Taxes • Demand and supplies’ products and services; and • Training facilities for future entrepreneurs

  7. Entrepreneurship and Innovation • Innovation – introduction of a new method, procedure, custom, device, among others. • Innovation • INVENTION – discovery or devising of new products and processes; • DEVELOPMENT – which refers to the process by which the ideas and principles generated from the stage of invention , modified into a new product; • INNOVATION – an introduction of new product

  8. ACTIVITY: INNOVATION • PRODUCT • NAME • DESCRIPTION OF THE PRODUCT • TAGLINE • SHORT COMMERCIAL • LOGO

  9. Common Pitfalls for New Enterprises • Improper pricing • Lack of knowledge about product costing • Inability or unwillingness to plan • Poor communication among the management team • Domestic pressures distracting the owner/ manager • Poor retail location • Lack of discipline • Dishonesty

  10. New Ventures and Long – Term Enterprises • Four Stages A. Venture Idea (prestart-up stage) • happens when the entrepreneur starts to question the feasibility of an idea, product, or service. • “What will the business make or sell?” • May be derived from a recognition of opportunities

  11. 1. An old type of business can be given a new twist or professionalized. • Example: In the food business, entrepreneurs have reinforced the practice of having chef cook in front of customers to attract people who like to smell and see what is cooking

  12. Product with a twist

  13. 2. A standard product or service can be customized. Computer technology has been used to create products ranging from bathing suits tailored to fit the individual to birthday records containing the recipient's name.

  14. 3. New technology can be adapted to manufacture an old product Entrepreneurs have created a number of businesses that use desktop publishing and laser printers to turn out printed materials much cheaper.

  15. 4. Imported products can be replaced by domestic production

  16. 5. Business operations can be internationalized

  17. SEATWORK (1/4) : Think of a product or services that can spring up from the following: • Scientific Invention: ________________________ • New Government Program: ____________________ • Hobbies and personal interests: ______________ • A love for food: _____________________________ • Running a household: ________________________

  18. Venture ideas through the following: • Market Research • It is an organized way of finding objective answers to the questions every business must answer to improve its chances of success. • Information • Demographics

  19. New Ventures and Long – Term Enterprises (continuation – FOUR STAGES) B. Start – Up Stage – • Formation of the business; • Generation of necessary capital; • Purchase of facilities and equipment; • Constructing prototypes • Testing the market • Consider our first customer, first sales, build for survival

  20. 1. Marketing Strategy – overall plan what product to offer and to sell • Product • Customer • Pricing • Advertising and Promotion • Distribution and sales management

  21. People Skills • Location Strategy • Financing Strategy • Internal Management Essentials

  22. New Ventures and Long – Term Enterprises C. Early growth stage – establishing feasibility; selling to limited markets with limited resources • Development • Building of human resources • Gradual build- up of valuable assets • Management control system

  23. New Ventures and Long – Term Enterprises D. Late Growth Stage – management is structured; long term financing is established, and facilities planning are undertaken • Expansion • Exporting • Franchising

  24. Rewards for Successful Entrepreneurship

  25. The Entrepreneur’s Predicament(embarrassing situation)

  26. Entrepreneurship and Business Size

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