Entrepreneurship
Dyck and Neubert (2012)
Conceiving an opportunity to offer new or improved goods and services, showing the initiative to pursue that opportunity, making plans, mobilizing the resources, necessary to convert the opportunity into reality
Gartner (1985)
Creation of new organizations
CUSTOMER PREFERENCES, PIQUES, PERCEPTIONS
Customer Preferences - tastes of particular groups of people Customer dislikes - things that irritate customers
Knights (1921)
Having profits from bearing uncertainty and risk
Opportunity Seeking
Mind Frame Heart Flame Gut Game
Compitencies according to Man and Chan
Opportunity Relationship Conceptual Organizing Strategic Commitment
INDUSTRY
Participants in an Industry: Rivals or Competitors Suppliers Consumer market segments Substitute product or services
OPPORTUNITY SCREENING
Personal Screen Risk Return grid 12 r's of opportunity Seeking Pre-Feasibility Study Feasibility Study
Cole (1959)
Purposely activity to initiate and develop a profit oriented business
Hisrish & Brush (1989)
Pursuit of opportunity without regard to resources currently controlled
ENTREPRENEURIAL DECISION-MAKING AS A CORE COMPETENCY
Rational/scientific method in decision-making Use of Intuition in Decision Making Affect Infusion Attribution Style Counterfactual Thinking Over-confidence Knowing Style Creative Style
McClelland (1961)
Taking moderate risk
Entrepreneurial Competencies
According to Camuffo, Gerli, and Gubitta (2012), the entrepreneur's competencies can be divided into the following: 1. Functional competencies 2. Emotional competencies 3. Cross-functional competencies
MARKET
Actual demand and supply Potential demand and supply Prevalence of product substitutes Market traits, characteristics, and behavior are identified
OPPORTUNITY SEIZING
At this stage, the entrepreneur must be able to determine the critical success factors that enable other players in the same industry to succeed while, at the same time, be vigilant about those factors that cause other businesses to fail.
Not yet ready to start one's own business
Business consultant Sales Research and Development Not-for-profit fundraiser Teacher Talent recruiter Business reporter
Common elements
Innovation Opportunity seeking and exploitation Resource mobilizing Encountering risks and uncertainties Economic and personal rewards
Students who pursue graduate studies in entrepreneurship
Innovation Direction Innovation Architecture R&D Business Development Innovation Management Consulting Policy Advice Financial Analysis Management in innovation centers, technology centers, creativity centers, clean-tech and sustainable energy Marketing & Sales
Those with entrepreneurial aspirations
New venture creation Career in existing entrepreneurial ventures
MICROMARKET
Refers to the specific target market segment of a particular enterprises
FEASIBILITY STUDY
1. a more in-dept study of market potential to ensure that the business proposal will reach the forecasted sales figures 2. Proof that the product or service being offered has the right design, attributes, specifications, and preferred features 3. Proof that the entrepreneur and his or her team have the necessary experience, skills, and capabilities to maximize the venture's chances of success 4. Legal visibility 5. More detailed costing on the different assets and more justification for the production and operating expenses 6. More thorough analysis of the technology and its sustainability
PRE-FEASIBILITY STUDY
a. Market potential and prospects b. Availability and appropriateness of technology c. Project investment and detailed cost estimates d. Financial forecast and determination of financial feasibility
Entrepreneurial mind frame
allows the entrepreneur to see things in a very positive and optimistic light in the midst of crisis or difficult situations
Conceptual Competencies
competencies related to different conceptual abilities , which are reflected in the behaviors of the entrepreneur
Relationship Competencies
competencies related to person to person or individual to group based interactions
Opportunity Competencies
competencies related to recognizing and developing market opportunities through various means
Strategic Competencies
competencies related to setting, evaluating, and implementing the strategies of the firm
Organizing Competencies
competencies related to the organization of different internal and external human, physical, financial, and technological resources
Commitment Competencies
competencies that drive the entrepreneur to move ahead with the business
Entrepreneurial heart flame
driven by passion, they are drawn to find fulfilment in the act and process of discovery
Creative Style
entrepreneurs who use this style tend to be creative and enjoy experimentation before making decisions
Rational/scientific method in decision-making
involves the use of the standard six step process to arrive at a decision
Concept
is an idealized abstraction of the product or service to be offered to the preferred market of the entrepreneur
Entrepreneurial gut game
refers to the ability of the entrepreneur to sense without using five senses.
Customer Preferences
tastes of particular groups of people
Customer dislikes
things that irritate customers
Knowing Style
this is the combination of analytical and conceptual thinking
Counterfactual thinking
this is understood as an afterthought in decision making
Use of intuition in decision making
this pertains to the use of gut feel to arrive at a decision
Attribution style
this refers to entrepreneurs' self-serving bias
Over-confidence
this refers to the tendency of the entrepreneurs to think that they really know when they make the decision
Affect infusion
this suggests that entrepreneurs' current moods influence judgements or decisions
OTHER SOURCES OF OPPORTUNITIES
Unexpected Success or Failures Entrepreneur's own set of skills, expertise, or hobby New knowledge Customer preferences change over time People's taste in clothes, music, shoes, entertainment, dance, sports, hobbies, even careers have evolved over the years What piques customers is a great source of opportunities Before the customer is won over, there is first a battle for the mind. Next, there is a battle for the heart. Finally, there is a battle for the wallet. The longer the customer wants to use the product, the greater the chances of creating lasting loyalty Opportunities abound in shaping customer perceptions or occupying spaces in their minds or places in their hearts that have not yet been filled. New inventions, new systems and work processes, new insights about the human psyche, new applications for old knowledge, new revelations about how the physical world works, new interpretations, new combinations based on the convergence of previous technologies, new outlooks about how life should be led, and a host of other new things Determining personal preferences and competencies Unexpected occurrences in both the external and internal environment of the enterprise
IMPLEMENTING, ORGANIZING, AND FRANCHISING
a good planner and programmer must make several important choices to achieve the desired end result 1. Choose the correct technology 2. Choose the right people 3. To design the operating workflow 4. To specify the systems and procedures 5. To design organizational architecture
DESIGNING, PROTOTYPING, AND TESTING THE PRODUCT
the entrepreneur must be able to perfect the product or service as it goes through the process while the product or service is continuously subjected to testing and improvement
Entrepreneurship
- refers to the economic activity of a person who starts, manages, and assumes the risk of a business enterprise. - Derived from the French word entreprendre, meaning, "to undertake"
Characteristics attributed to Entrepreneurs
1. Calculated risk-taking - is doing everything possible to get the odds in their favour, and they often avoid taking unnecessary risks 2. Commitment - is the unwavering dedication to work for the common good of the society through one's business 3. Feedback-seeking - is the taking of steps to know how well they are doing and how they might improve their performance 4. Perseverance - is the determination to succeed by overcoming obstacles and setbacks 5. Drive to achieve - is the internal desire to pursue and attain challenging goals. Entrepreneurs examine the situation, plan how to achieve their goal given the conditions, and then push ahead. 6. Self-confidence - is the belief that together with other people, things can be done in business 7. Opportunity orientation - is the constant awareness of opportunities that exist in everyday life 8. Innovativeness - is the ability to come up with something different or unique every time 9. Responsibility - is their willingness to put themselves in situations where they are personally responsible for the success or failure of the business operation 10. Tolerance for failure - serious setbacks and disappointments become an integral part of the learning process.
Role of Entrepreneurship and Entrepreneurs in Economic Development and Society
1. Creates employment 2. Develops new market 3. Introduces innovation 4. Generates new sources of materials 5. Stimulates investment interest in the new ventures being created 6. Improves the quality of life 7. Serves as role models 8. Brings social benefits to the people 9. Utilizes and mobilizes indigenous resources 10. Provides more alternatives for consumers
PERSONAL SCREEN
1. Do I have the drive to pursue this business opportunity to the end? 2. Will I spend all my time, effort, and money to make the business opportunity work? 3. Will I sacrifice my existing lifestyle, endure emotional hardship, and forego my usual comforts to succeed in this business opportunity?
Sources of Opportunities
1. Macro environment 2. Industry 3. Market 4. Micromarket 5. Customer preferences, piques, and perceptions
12 R's OF OPPORTUNITY SCREENING
1. Relevance - to vision, mission, and objectives of the entrepreneur 2. Resonance - to values 3. Reinforcement of Entrepreneurial interests - how does the opportunity resonate with the entrepreneur's personal interests, talents, and skills 4. Revenues - determine the sales potential of the products and services 5. Responsiveness - to customer needs and wants 6. Reach - expansion through branches, distributorship, dealership, and franchise 7. Range - opportunity can potentially led to a wide range variety of products and services 8. Revolutionary impact - opportunity will most likely be the next big thing 9. Returns - low costs of production and operations but are sold at higher prices 10. Relative ease of implementation - easy to implement or there will be a lot of obstacles 11. Resources required - 12. Risks
MACRO ENVIRONMENT
A. Socio-Cultural Environment B. Political Environment C. Economic Environment D. Ecological Environment E. Technological Environment