Subject: Entrepreneurship

CHAPTER 1 Banking
INTRODUCTION TO ENTREPRENEURSHIP Selling

LESSON 1 • Innovative -
RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION The entrepreneur constantly looks for new ideas, thus he needs to be
• Development of Managerial Capabilities creative.
• Creation of Organizations • Profit Potential -
• Improving Standard of Living The entrepreneur can be compensated by his profit coming from the
• Means of Economic Development operation.
• Risk bearing -
CONCEPT OF ENTREPRENEURSHIP The entrepreneur needs to gamble but wise enough to offset the risk.
The word "entrepreneur" was derived from the French verb
enterprendre, which means "to undertake".
COMMON COMPETENCIES IN ENTREPRENEURSHIP
This is pinpointing to those who "undertake" the risk of enterprise. The • Decisive - an entrepreneur must be firm in making decisions.
enterprise is created by an entrepreneur and the process is called • Communicator - an entrepreneur must have a convincing power.
"Entrepreneurship." • Leader - an entrepreneur must have the charisma to be obeyed by
his employees.
Entrepreneurs are innovators. They are willing to take the risks and • Opportunity seeker - an entrepreneur must have the ability to be the
generate unique ideas that can provide profitable solutions to the needs of first to see business chances.
the market and the society. • Proactive - an entrepreneur can control a situation by making things
happen or by preparing for possible future problems.
ENTREPRENEUR: PERSON • Risk Taker - an entrepreneur has the courage to pursue business
ENTREPRENEURSHIP: PROCESS idea
ENTERPRISE: OBJECT • Innovative - the entrepreneur has big business ideas and he does not
stop improving and thinking of new worthwhile ideas for his
CORE COMPETENCIES IN ENTREPRENEURSHIP business.
• Economic and Dynamic Activity -
Entrepreneurship is an economic activity because it involves the creation FACTORS AFFECTING ENTREPRENEURSHIP
and operation of an enterprise with a view to creating value or wealth 1. PERSONALITY FACTORS
by ensuring optimum utilization of limited resources. • Initiative
doing things even before being told
Economic Activities: • Proactive
Transportation which means he can classify opportunities and seize it
Agriculture • Problem Solver
Production which means he can retain good relations with other people
Education
Research and Development • Perseverance
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Subject: Entrepreneurship

meaning he will pursue things to get done regardless of challenges Entrepreneurs make crucial(critical) decisions for an
• Persuasion organization, including:
means that he can entice people to buy even if they don't want to  formulating aims and objectives,
• A Planner  developing strategies for profitability,
he makes plans before doing things and does not fail to monitor it  distributing work,
• Risk Taker  managing financial resources, and
which means that he is willing to gamble but he will calculate it first.  making decisions about production and distribution of products.
2. ENVIRONMENTAL FACTORS PROMOTIONAL FUNCTIONS
 Political (DTAS) / (IDAF)
 Legal System
 Climate 1. DISCOVERING A UNIQUE BUSINESS IDEA AS AN
 Economic Condition ENTREPRENEUR
 Market Situations /Investigation of idea

Entrepreneurs investigate market needs and wants to find

Lesson 2. innovative business ideas. These individuals often uncover not just
FUNCTIONS OF AN ENTREPRENEUR one, but several unique concepts to pursue.
(EPMC)
2. THOROUGH EXAMINATION
ENTREPRENEURIAL FUNCTIONS /Detailed investigation
(RID)
Entrepreneurs meticulously(show great attention to detail) analyze
1. RISK-TAKING each business idea they come across, carefully assessing their future
Risk is an inherent(permanent essential) aspect of decision-making and potential for growth. After completing a comprehensive
entrepreneurs bear risk as a fundamental(central importance) (inclusive/covering much) investigation, they choose the most
function, striving to minimize it to achieve success. viable(capable of working successfully) option.
Greater risk can lead to substantial(considerable importance)
profits. 3. ASSEMBLING RESOURCES

2. INNOVATION The Next Step in Implementing Your Idea. After selecting your
Entrepreneurs innovate products and upgrade their organisations by business idea, the next crucial step is to gather all the necessary resources.
introducing new production methods, seeking new raw materials, Entrepreneurs must arrange everything from the:
and exploring new products and markets. They keep up with technology  location of their facilities
and trends to stay ahead of the competition.  installation of machinery and
 hiring of staff.
3. DECISION-MAKING

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Subject: Entrepreneurship

4. SECURING THE PROPOSAL'S FINANCING Entrepreneurs are responsible for a range(scope) of staffing
/Financing the proposition duties, such as:
 manpower planning
Entrepreneurs must guarantee(assurance) that the organization  recruitment
has enough short-term(3 months in few years) and long-  selection
term(completed in 3-5 years) financing available. This entails:  training
 establishing the company's capital structure, and  promotion
 identifying the sources from which funds will be collected and  transfer
spent.  rewards, and
 appraisal(assessment)
MANAGERIAL FUNCTIONS
(PODSC)
5. CONTROLLING
1. PLANNING
COMMERCIAL FUNCTIONS
(PMAFP)
In terms of management, the entrepreneur is responsible for
establishing the company's objectives. To achieve these objectives,
1. PRODUCTION
they establish both short and long-term plans.
Entrepreneurs are responsible for:
2. ORGANIZING
 producing goods and services
The next step in the process is organizing resources to put the  utilizing various factors of production
formulated plan into action. This includes:  Scale, which is determined by the type and size of the business, is a
 manpower critical factor to consider.
 funds
 physical facilities
2. MARKETING
 Effective coordination of all factors of production is key.
Creating a Unique Product Image. Entrepreneurs strive to establish a
3. DIRECTING distinct identity for their products. Employing several methods and
tactics, they set their merchandise apart from the competitors in the
An entrepreneur leads their enterprise(business) and communicates market.
their vision, mission, and objectives with their team. They also
 assign responsibilities, and 3. ACCOUNTING
 reporting relationships to ensure everyone is on the same page.
Tracking financial records is critical for entrepreneurs as they
4. STAFFING strive to stay informed about their company's financial standing. As a
result, they keep a record of all transactions.
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Subject: Entrepreneurship

 healthcare
4. FINANCE  poverty alleviation(improves quality of life)

Financial management is crucial for entrepreneurs and includes tasks such 3. SERIAL ENTREPRENEURS
as:
 designing capital structure Serial entrepreneurs are individuals who start multiple businesses
 arranging financing, and over their lifetime. They are often experienced entrepreneurs who have
 determining financial resources. a track record of success and are constantly(continuously) looking for
new opportunities.
5. PERSONNEL
4. LIFESTYLE ENTREPRENEURS
In addition to overseeing various aspects of their organization.
Entrepreneurs must also manage the essential resource of Lifestyle entrepreneurs are individuals who start businesses to
human capital. support a particular lifestyle. They may be motivated by a desire to:
Human resource management includes:  work from home
 providing suitable working conditions  have more flexibility in their schedule or
 ensuring employee job satisfaction, and  pursue a particular passion.
 offering fair monetary compensation(salary)
5. INNOVATORS

TYPES OF ENTREPRENEUR Innovators are entrepreneurs who create new products or

(SSSLI) services that disrupt(disturbance) existing markets. They are often
driven by a:
1. SMALL BUSINESS ENTREPRENEURS  desire to change the world and
 willing to take risks to achieve their goals.
These are individuals who start and run small businesses. They are often
seen as the backbone of the economy as they create jobs and CAREER OPPORTUNITIES OF ENTREPRENEURSHIP
contribute to the growth of their local communities. (BTRSB)

2. SOCIAL ENTREPRENEURS • Business Consultant - with the expertise(professionalism) of in the

field of entrepreneurship, he can be a very good source of advices to
Social entrepreneurs are individuals who start businesses with the other entrepreneurs and would be business men.
goal of solving social problems.
• Teacher - a graduate of an entrepreneurship can use his knowledge
They are driven by a desire to make a positive impact on society and often in teaching.
work in areas such as:
 education
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Subject: Entrepreneurship

• Researcher - the entrepreneur can be employed as a researcher by

an enterprise.(business)

• Salesman - the entrepreneurship graduate can apply as a

salesman.

• Business Reporter - the entrepreneur being expert in the field, can be

employed as a business reporter.

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