M1 2entrep FC

LESSON 1
Relevance of Entrepreneurship to an Organization

1. Development of Managerial capabilities - this means that one of the benefits an entrepreneur gets is to develop his
managerial skills.
2. Creation of Organizations - which means that because of entrepreneurships many organizations will exist.
3. Improving standard of living - this means that entrepreneurship can lift up the economic status of an individual.
4. Means of economic development - this means that not only the life of the entrepreneur is improved but also the society
where the business is located
The word “entrepreneur” was derived from the French verb enterprendre, which means “to undertake”
Factors Affecting Entrepreneurship

1. Personality Factors which includes:
a. Initiative - which means doing things even before being told.
b. Proactive -which means he can classify opportunities and seize it.
c. Problem Solver - which means he can retain good relations with other people
d. Perseverance - meaning he will pursue things to get done regardless of challenges.
e. Persuasion - means that he can entice people to buy even if they don’t.
f. A Planner - meaning he makes plan before doing things and do not fail to monitor it.
g. Risk-taker - which means that he is willing to gamble but he will calculate it first.
2. Environmental Factors - include political, climate, legal system, economic and social conditions and market situation
Common Competencies in Entrepreneurship

1. Decisive - an entrepreneur must be firm in making decisions.
2. Communicator - an entrepreneur must have a convincing power.
3. Leader - an entrepreneur must have the charisma to be obeyed by his employees.
4. Opportunity seeker - an entrepreneur must have the ability to be the first to see business chances.
5. Proactive - controlling a situation by making things to happen or by preparing for possible future problems.
6. Risk Taker - they have the courage to pursue their business ideas.
7. Innovative - the entrepreneurs have big business ideas and they do not stop improving and thinking of new
worthwhile ideas for their business
Core Competencies in Entrepreneurship

1. Economic and dynamic activity - Entrepreneurship is an economic activity because it involves the creation and operation
of an enterprise with a view to creating value or wealth by ensuring optimum utilization of limited resources.
2. Innovative - Entrepreneurs constantly look for new ideas, thus he needs to be creative.
3. Profit Potential - The entrepreneur can be compensated by his profit coming from the operation.
4. Risk bearing – The entrepreneur needs to gamble but wise enough to offset the risk.
Types of entrepreneurs
1. Innovative entrepreneur- they are those who always make new things by thinking of new ideas.
2. Imitating entrepreneurs- they are those who don’t create new things but only follow the ideas of other entrepreneurs.
3. Fabian entrepreneurs- they are those skeptical. They don’t initiate but follow only after they are satisfied.
4. Drone entrepreneur- they are those who lives on the labor of others. They are die-hard conservatives even ready to
suffer the loss of business.
5. Social entrepreneurs-they are those who initiate changes in the various fields such as education, health, human rights,
environment and enterprise development.
Career Opportunities of Entrepreneurship
1. Business Consultant - with the expertise of in the field of entrepreneurship, he can be a very good source of advices to
other entrepreneurs and would be business man.
2. Teacher - a graduate of an entrepreneurship can use his knowledge in teaching.
3. Researcher - the entrepreneur can be employed as researcher by an enterprise.
4. Sales - the entrepreneurship graduate can apply as salesman.
5. Business Reporter - the entrepreneur being expert in the field, he can be employed as business reporter
LESSON 2
Essentials in Entrepreneur’s Opportunity Seeking
1. Entrepreneurial mind frame. This allows the entrepreneur to see things in a very positive and optimistic way in the midst
of difficult situation. Being a risk - taker, an entrepreneur can find solution when problems arise.
2. Entrepreneurial heart flame. Entrepreneur's driven passion, they are attracted to discover satisfaction in the act and
process of discovery. Passion is the great desire of an entrepreneur to achieve his/her goals
3. Entrepreneurial gut game. This refers to the ability of the entrepreneur of being intuitive. This also known as intuition.
The gut game also means confidence in one’s self and the firm believes that everything you aspire can be reached.
Sources of Opportunities
1. Changes in the environment
Entrepreneurial ideas arise when changes happen in the external environment. A person with an entrepreneurial drive
views these changes positively.
External environment refers to the physical, societal, and industry environment where the business operates.
1.1 The physical environment includes- Climate- the weather conditions; Natural resources- such as minerals, forests,
water, and fertile land that occur in nature and can be used for economic gain. c. Wildlife- includes all mammals, birds,
reptiles, fish, etc., that live in the wild.
1.2 The Societal environment includes the various forces like
a. Political forces- includes all the laws, rules, and regulations that govern business practices as well as the permits,
approvals, and licenses necessary to operate the business.
b. Economic forces- such as income level and employment rate.
c. Sociocultural forces- customs, lifestyles and values that characterize a society.
d. Technological environment- New inventions and technology innovations.
1.3 The industry environment of the business includes:
a. Competitors
b. Customers
c. Creditors
d. Employees
e. Government f. Suppliers
2. Technological discovery and advancement - A person with entrepreneurial interest sees possibility of business
opportunities in any new discovery or because of the use of latest technology
3. Government’s thrust, programs, and policies - The priorities, projects, programs, and policies of the government are
also good sources of idea
4. People’s interest - the interest, hobbies, and preferences of people are rich source of entrepreneurial ideas
5. Past experiences - The expertise and skills developed by a person who has worked in a particular field may lead to the
opening of related business enterprise.
Forces of Competition Model It is also known as the “five forces of competition,” An industry environment is a competitive
environment. Regardless of what product or services you have, competition is always present
Competition – it is the act or process of trying to get or win something
5 forces competing within the industry
1. buyers are the one that pays cash in exchange to your goods and services
2. Potential New Entrants - defined as the one who enters something. For example, the level of capital requirements, if the
business requires huge capital, new entrants should decline to join the business. This gives a threat to the business
3. Rivalry among Existing Firms - Rivalry is a state or situation in which people or groups are competing with each other
4. Substitute Products - means anything that takes the place or function of another
5. Suppliers - are the one that provide something that is needed or wanted
YOUR NOTES….

M1 2entrep FC

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LESSON 1

Relevance of Entrepreneurship to an Organization

Factors Affecting Entrepreneurship

Common Competencies in Entrepreneurship

Core Competencies in Entrepreneurship

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