ENTREPRENEURSHIP AN INTRODUCTORY LESSON JHIZEL CEREZO Entrepreneurship, Finance and Marketing AGRIBUSINESS FRANCHISE MODEL ENTREPRENEURSHIP • A French loan word • The art and science of converting ideas into marketable goods and services that helps improve the quality of man’s life. • It involves the systematic utilization of four (4) essential elements: man, money, materials and machines. (now, 12 M’s of BPOM, see annex A) • As a science, it involves coordinated, arranged and systematized knowledge and as an art, it uses a great deal of knowledge of the elements and principles of design. ENTREPRENEURSHIP • the process of identifying and starting a new business venture; sourcing and organizing resources and taking the risks and rewards associated with it. • ELEMENTS OF ENTREPRENEURSHIP • NEW VENTURE /innovated product, service, new idea • RESOURCES –sourced and organized (man, money, machine, method, materials, etc see 12 M’s BPOM) • TAKE RISKS AND REWARDS ROLE OF ENTREPRENEURHSIP 1. CREATES EMPLOYMENT ROLE OF ENTREPRENEURHSIP 2.CONTRIBUTES TO A MORE EQUITABLE DISTRIBUTION OF INCOME ROLE OF ENTREPRENEURHSIP 3. CREATES SOCIAL BENEFITS ROLE OF ENTREPRENEURHSIP 4. UTILIZES AND MOBILIZES RESOURCES ROLE OF ENTREPRENEURHSIP 5. REDISTRIBUTES INDUSTRIAL ACTIVITIES IN THE COUNTRYSIDE ROLE OF ENTREPRENEURHSIP 6.GENERATES FOREIGN EXCHANGE ROLE OF ENTREPRENEURHSIP 7. NURTURES TALENTS ROLE OF ENTREPRENEURHSIP 8. ESTABLISHES INDUSTRIAL LINKAGES ROLE OF ENTREPRENEURHSIP 9. ENCOURAGES HEALTHY COMPETITION ROLE OF ENTREPRENEURHSIP 10.PROMOTES THE USE OF MODERN TECHNOLOGY ROLE OF ENTREPRENEURHSIP 11. ENCOURAGES RESEARCHES AND STUDIES and INVENTIONS OF EQUIPMENT AND MACHINES IN A NUTSHELL “There are business opportunities everywhere. It is the enterprising people among us who are able to think of setting up a business no matter how small.” “These business enterprises contribute to the country’s economic growth as well as to one’s own personal growth.” ANONYMOUS THANK YOU! Vision is the art of seeing the invisible…. ANNEX A: 12 M’S OF BPOM BPOM stands for Business Planning, Operations and Management 12 M’s 1. Macro and micro trend analysis 2. Market study 3. Method 4. Man 5. Machineries and equipment 6. Materials 7. Moment 8. Media 9. Money 10. Material evidences 11. Material environment 12. Move plan (Move out or move up) BRIEF EXPLANATION OF 12 M’S 1. Macro-micro trends analysis. This is a situationer report pertaining to the demographic, natural or geographic, social, technological, economic and politico-legal aspects of the industry where the enterprise is operating. ( (it is also called industry and competitive analysis). Includes: 5 force and SWOT analyses 2. Market aspects. Include the 4 Ps (now 7Ps of marketing mix): product, price/pricing, place and promotion, (other 3, people, process and physical evidence), customer behavior, 9 IMC’s (integrated marketing communication channels: advertising, personal selling, direct marketing, sales promotions, public relations, guerilla marketing, viral, digital marketing and relationship marketing) BRIEF EXPLANATION OF 12 M’S 3. Methods. This includes operational strategies and programs, stages or process flow of operation, includes the Manual of Operations, physical set up. 4. Man. Includes the organizational chart, managerial and staff employee functions, duties and responsibilities, skills and competencies, HR policy manual. 5. Machineries and equipment. Models and output/productive capacity, ICT device/computer version and features, specifications and operating capacity of machines and equipment (POS terminals). BRIEF EXPLANATION OF 12 M’S 6. Materials. Include raw materials sources, suppliers, origins, distribution channels, supply chain management, logistics, inventory management and systems. 7. Moment. This section includes discussion about operation or production schedule, project implementation/Gantt chart, activity flow with highlights (period of completion), PERT-CPM analysis. 8. Media. This section includes communication channels involving social media (FB, instagram, twitter, blogs and forums and website content) and corporate communication processes: upward, downward and horizontal communication within the organization. BRIEF EXPLANATION OF 12 M’S 9. Money. Includes financing and financial management such as sourcing of funds (savings, credit and stock financing), budgeting (sales, operations and expense budget preparation), forecasting or projections (sales and profits planning), ratio analysis, financial statements (BS, IS, cash flows), break even analysis, payback and NPV analysis. 10. Material Evidences. This contains documents supporting the business plan. It includes: owner’s /proponents’ curriculum vitae, organizational chart, legal documents like business permits and BIR tax forms, bylaws and articles of partnership or corporation (if partnership or corporation), research studies, survey results, bibliographical references for journal and book researches. This also includes record keeping and database management BRIEF EXPLANATION OF 12 M’S 11. Material environment. Includes disposal management systems, sustainability concerns and studies, bio-diversity, green marketing, ecological balance issues, corporate governance issues affecting the geographical/natural environmental aspect of business operations. 12. Move plans. This involves move out (exit strategy) or move up (innovation strategy) or both, that is spin off operations and reengineering operations leading to modernization. This aspect includes risk/loss concerns and contingency measures. 4 TYPES OF BUSINESS ENTRY 1. 2. 3. 4. INHERIT A BUSINESS BUY AN EXISTING BUSINESS ADOPT A FRANCHISE START A BUSINESS. This needs: a. FEASIBILITY STUDY (new entrepreneurial venture) b. BUSINESS PLAN Five Types of Business, Enterprises and Industries 1. Extractive industry – open sea fishing, mining, logging 2. Genetic industry – hog raising, agribusiness, aquaculture, cattle raising, plantations, 3. Manufacturing – production, finishing, 4. Merchandising – wholesale and retail selling of merchandise 5. Service industry – personal, entertainment, healthcare, travel, hotel THANK YOU