THE CONCEPTS OF ENTREPRENEURSHIP ENTREPRENEURSHIP “Entrepreneurship is the pursuit of opportunity beyond resources controlled.” -- Howard Stevenson Resource management is the process by which businesses manage their various resources effectively. ... It involves planning so that the right resources are assigned to the right tasks. Managing resources involves schedules and budgets for people, projects, equipment, and supplies . ENTREPRENEURSHIP The process of designing, launching and running a new business, which is often initially a small business, or as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit." ENTREPRENEURSHIP Economists have never had a consistent definition of "entrepreneur" or "entrepreneurship" (the word "entrepreneur" comes from the French verb entreprendre, meaning "to undertake"). Though the concept of an entrepreneur existed and was known for centuries, the theorists left entrepreneurs out of their formal models: They assumed that perfect information would be known to fully rational actors, leaving no room for risk-taking or discovery. RISK AND REWARDS FINANCIAL RISK An entrepreneur will need funds to launch a business either in the form of loans from investors, their own savings, or funds from family. The founder will have to put their own "skin in the game." Any new business should have a financial plan within the overall business plan showing income projections, how much cash will be required to break-even, and the expected return for investors in the first five-year timeframe. Failure to accurately plan could mean that the entrepreneur risks bankruptcy, and investors get nothing. financial risk is the possibility of losing money on an investment or business venture. Financial risk is a type of danger that can result in the loss of capital to interested parties. STRATEGIC RISK An impressive business plan will appeal to investors. However, we live in a dynamic and fast-paced world where strategies can become outdated quickly. Changes in the market or the business environment can mean that a chosen strategy is the wrong one, and a company might struggle to reach its benchmarks and key performance indicators (KPIs). TECHNOLOGY RISK New technologies are constantly emerging, particularly in the era of the Fourth Industrial Revolution. Some of these changes are characterized as "paradigm shifts" or "disruptive" technologies. To be competitive, a new company may have to invest heavily in new systems and processes, which could drastically affect the bottom line. MARKET RISK Many factors can affect the market for a product or service. The ups and downs of the economy and new market trends pose a risk to new businesses, and a certain product might be popular one year but not the next. For example, if the economy slumps, people are less inclined to buy luxury products or nonessentials. If a competitor launches a similar product at a lower price, the competitor might steal market share. Entrepreneurs should perform a market analysis that assesses market factors, the demand for a product or service, and customer behavior. COMPETITIVE RISK An entrepreneur should always be aware of its competitors. If there are no competitors at all, this could indicate that there is no demand for a product. If there are a few larger competitors, the market might be saturated, or, the company might struggle to compete. Additionally, entrepreneurs with new ideas and innovations should protect intellectual property by seeking patents to protect themselves from competitors. REPUTATIONAL RISK A business's reputation is everything, and this can be particularly so when a new business is launched and customers have preconceived expectations. If a new company disappoints consumers in the initial stages, it may never gain traction. Social media plays a huge role in business reputation and word-ofmouth marketing. One tweet or negative posting from a disgruntled customer can mean huge losses in revenue. Reputational risk can be managed with a strategy that communicates product information and builds relationships with consumers and other stakeholders. ENVIRONMENTAL, POLITICAL, AND ECONOMIC RISK Some things cannot be controlled by a good business plan or the right insurance. Earthquakes, tornadoes, hurricanes, wars, and recessions are all risks that companies and new entrepreneurs may face. There may be a strong market for a product in an under-developed country, but these countries can be unstable and unsafe, or logistics, tax rates, or tariffs might make trade difficult depending on the political climate at any point in time. Also, some business sectors have historically high failure rates, and entrepreneurs in these sectors may find it difficult to find investors. These sectors include food service, retail, and consulting. THE REWARDS OF ENTREPRENEURSHIP https://smallbusiness.chron.com/threebiggest-rewards-having-own-business22768.html JOB SATISFACTION Many entrepreneurs start businesses because they have a passion for it. ... Striving for success means prolonging the life of the business and staying in touch with your passion long term. This sense of personal satisfaction is what drives many entrepreneurs HIGHER WAGES Although a third of all business fail in the first two years, according to the Small Business Administration, business owners who are still in business are financially better off than employees. According to a 2004 Gallup survey, only 52 percent of small business owners say they earn more by hour than they would if they were employed by a company in their industry. However, 70 percent said they were doing better financially as their own bosses than working for someone else. GREATER CONTROL Being your own boss or not having a boss is probably the greatest advantage of having your own business. It provides you with more control over your life. The profits you generate from your work benefit you, not someone else. You don't have to ask for time off, you decide when to have a vacation, how many hours to work and you can choose to do work you enjoy and find fulfilling. Being you own boss is also exciting; although it has special challenges, no day is the same and you have more flexibility and you will never stop learning TYPES OF ENTREPRENEURSHIP https://www.indeed.com/careeradvice/career-development/types-ofentrepreneurship SMALL BUSINESS ENTREPRENEURSHIP -Small business entrepreneurship is often when a person owns and runs their own business. They typically hire local employees and family members. Local grocery stores, hairdressers, small boutiques, consultants and plumbers are a part of this category of entrepreneurship. LARGE COMPANY ENTREPRENEURSHIP Large company entrepreneurship is when a company has a finite amount of life cycles. This type of entrepreneurship is for an advanced professional who knows how to sustain innovation. Companies such as Microsoft, Google and Disney are examples of this kind of entrepreneurship. SCALABLE STARTUP ENTREPRENEURSHIP This kind of entrepreneurship is when entrepreneurs believe that their company can change the world. They often receive funding from venture capitalists and hire specialized employees. Scalable startups look for things that are missing in the market and create solutions for them. Many of these types of businesses start in Silicon Valley and are technology-focused. They seek rapid expansion and big profit returns. Examples of scalable startups are Facebook, Instagram and Uber. SOCIAL ENTREPRENEURSHIP An entrepreneur who wants to solve social problems with their products and services is in this category of entrepreneurship. Their main goal is to make the world a better place. They don't work to make big profits or wealth. Instead, these kinds of entrepreneurs tend to start nonprofits or companies that dedicate themselves to working toward social good. INNOVATIVE ENTREPRENEURSHIP Innovative entrepreneurs are people who are constantly coming up with new ideas and inventions. They take these ideas and turn them into business ventures. They often aim to change the way people live for the better. Innovators tend to be very motivated and passionate people. They look for ways to make their products and services stand out from other things on the market. People like Steve Jobs and Bill Gates are examples of innovative entrepreneurs. • lego has been changing the materials of its famous bricks to biodegradable oil-based plastics. • The first electric vehicles introduced in the car's market were also an innovation, and new batteries with longer ranges that keep coming out are also an example of innovation. HUSTLER ENTREPRENEURSHIP People who are willing to work hard and put in constant effort are considered hustler entrepreneurs. They often start small and work toward growing a bigger business with hard work rather than capital. Their aspirations are what motivates them, and they are willing to do what it takes to achieve their goals. They do not give up easily and are willing to experience challenges to get what they want. For example, someone who is a hustler is willing to cold call many people in order to make one sale. Hustling means working hard and doing your best to achieve success. When you hustle, you are busy and work with a lot of energy all the time. possess the ability to create their own path recognize the value of networking and use it to create their own opportunities rather than waiting for the right circumstances to fall in their lap. IMITATOR ENTREPRENEURSHIP Imitators are entrepreneurs who use others' business ideas as inspiration but work to improve them. They look to make certain products and services better and more profitable. An imitator is a combination between an innovator and a hustler. They are willing to think of new ideas and work hard, yet they start by copying others. People who are imitators have a lot of self-confidence and determination. They can learn from others' mistakes when making their own business. RESEARCHER ENTREPRENEURSHIP Researchers take their time when starting their own business. They want to do as much research as possible before offering a product or service. They believe that with the right preparation and information, they have a higher chance of being successful. A researcher makes sure they understand every aspect of their business and have an in-depth understanding of what they are doing. They tend to rely on facts, data and logic rather than their intuition. Detailed business plans are important to them and minimize their chances of failure. BUYER ENTREPRENEURSHIP A buyer is a type of entrepreneur who uses their wealth to fuel their business ventures. Their specialty is to use their fortunes to buy businesses that they think will be successful. They identify promising businesses and look to acquire them. Then, they make any management or structural changes they feel are necessary. Their goal is to grow the businesses they acquire and expand their profits. This kind of entrepreneurship is less risky because they are purchasing already well-established companies. PHILIPPINE BUSINESS LANDSCAPE https://www.dti.gov.ph/resources/msmestatistics/ NUMBER OF ESTABLISHMENTS The 2018 List of Establishments of the Philippine Statistics Authority (PSA) recorded a total of 1,003,111 business enterprises operating in the country. Of these, 998,342 (99.52%) are MSMEs and 4,769 (0.48%) are large enterprises. Micro enterprises constitute 88.45% (887,272) of total MSME establishments, followed by small enterprises at 10.58% (106,175) and medium enterprises at 0.49% (4,895). SECTORAL DISTRIBUTION The top five (5) industry sectors according to the number of MSMEs in 2018 were: (1) Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (461,765); (2) Accommodation and Food Service Activities (144,535); (3) Manufacturing (116,335); (4) Other Service Activities (66,162); and (5) Financial and Insurance Activities (46,033). These industries accounted for about 83.62% of the total number of MSME establishments. THE PHILIPPINES AND TECHNOLOGY SMALL and medium enterprises (SMEs) serve as the driving force of a country’s economic growth. This is mainly because they make up a large part of the business landscape in certain countries, especially in Asia. In the Philippines, there are 4,769 large enterprises, 106,175 small enterprises, 4,895 medium enterprises and a whopping 887,272 units of micro business establishments. SMEs alone have managed to create over 2.5 million jobs in the country, further signifying the vitality of these establishments to the country’s development. Due to the fact that they greatly influence the country’s income rate and development, they must be able to constantly meet the global industrial demands, evolve alongside the new globalization standards and catch up with the digital world. The wave of digital disruption has hit the Philippines’ SMEs, so business leaders must respond proactively by embracing technology solutions and be more digitally-enabled. As the country gains new digital capabilities and advances its technology development, it is imperative that SMEs go digital. New and emerging technologies can be a threat to businesses that fail to innovate and keep up with the latest advancements. Capabilities like digital payment systems are core to SMEs as they are increasingly sought after and help stay relevant in an everevolving marketplace. The transformation is necessary not only to secure greater revenues, but also to increase operational efficiency, boost data-reliance, improve marketing, and enhance research and development. https://techwireasia.com/2020/01/amiddigital-disruption-smes-in-the-philippines-arepushed-to-transform/ TECHNOPRENEURSHIP TECHNOPRENEURSHIP As it is hinted by the term, it is a blend of two words such as “technology” and “Entrepreneurship”. Thoroughly, it is a kind of entrepreneurship in the field of technology. The process of technopreneurship is a combination of technological advancements and entrepreneurial skills. In the products and services transformation, an integral part of technopreneur is technology. TECHNOPRENEURSHIP This is a new breed in the field of entrepreneurship. These types of entrepreneurship are suitable for a person who is intelligent, innovative, tech-savvy, appetite, and passionate in the calculation of risk. Technopreneurship gets to the next level of success through teamwork. https://101entrepreneurship.org/technopren eurship/ IMPORTANCE OF TECHNOPRENEURSHIP IMPORTANCE OF TECHNOPRENEURSHIP Needless to say, technopreneurship has played an influential role in the use of technology for fulfilling various purposes. First off, it makes easy for people to stay in touch with each other and comes up with some unpredictable products as well as solutions that are beneficial for the nation. Apart from this, it has also provided some other benefits to society and the nation that contributes to economic and human development. Here, we are going to discuss the significance of Technopreneurship for a nation and the world too. CREATING EMPLOYMENT OPPORTUNITIES When startup businesses, then there is an increase in the pool of job opportunities as they need manpower to run all business operations. In the same way, technopreneurship creates jobs and helps the nation to combat the problem of unemployment. It increases the employment rate of an economy. LOCAL RESOURCES Various natural and productive resources are available that every entrepreneur can utilize for business success. The usage of local resources increases its value and reduces the rate of resource wastage. BUSINESS DIVERSIFICATION AND DECENTRALIZATION An Entrepreneur can find out the business opportunities and locate them in areas that are suitable including remote areas. TECHNOLOGICAL ADVANCEMENT By being a creative and innovative technopreneur, they play an important role in the field of utilization as well as the development of technology. CAPITAL FORMATION Investment is an integral part of a business and an Entrepreneur requires funds to start up and take their business to the new heights. They take financial assistance from the investors and financiers and utilize the public savings that lead to economic development. CYBERPRENEURSHIP https://www.entrepreneur.com/article/3289 64 CYBERPRENEURSHIP Cyberpreneurship is a phenomenon unique to the digital age, having originated from the fusion of cyber—a prefix that symbolizes digitization of established systems; and entrepreneurship, the commercial backbone shaping modern economies. Following this logic, cyberpreneurs are essentially professionals who digitize access to their products and services by leveraging information technology, especially the Internet. Digital enterprises are thus able to conduct entire transactions, from delivery of products or services to generation of revenue, everything takes place on the digital domain. CYBERPRENEURSHIP Virtual businesses have several virtues, such as stronger likelihood of more efficient customer engagement and hassle-free service delivery, flexible operations, and so on. Due to this, cyberpreneruship has boomed since the past half decade, the ripples of which are only getting louder as we speak, reaching out to cover virtually every avenue existing on the Internet today. These include infonomics (capitalizing on information dispersal through articles, videos, etc.), e-commerce (selling and buying of products and services online), over-the-top (OTT) entertainment platforms, cybersecurity solutions, and so on. CYBERPRENEURSHIP However, despite these developments (and also because of them), the cyber space, like the offline space, is not perfect. While the rapidly-evolving digital ecosystem has enabled more entrepreneurs and service providers to grow on the Internet, on the flipside, cybercriminals too have leveraged the digital medium to exploit the vulnerabilities in a growing online business ecosystem. AREAS OF CYBERPRENEURSHIP https://cyberpreneursinstitute.com/what-isa-cyberpreneur/ SELLING DIGITAL INFORMATION PRODUCTS Selling digital information is the lowest entry barrier for any cyberpreneurs. Because of that also, it is highly competitive. It is all about producing content that can solve people’s problem and package it in a way that enables people to pay you back for that information that was provided. The package that encapsulates the digital information can be in the form of blogs, vlogs, e-books, digital training course, videos and podcast. Cyberpreneurs can leverage other existing platforms for the distribution of their digital products or create their platform. For example, if you designed a digital training course, you can choose to host it on your website or host it on an existing platform such as Udemy. SELLING PHYSICAL PRODUCTS Cyberpreneurs can also sell physical products similar to traditional brick-and-mortar entrepreneurs. However, the advantage of being a cyberpreneur is that your target market can range from local to the global demand. You can be located in southeast Asia but having customers in Europe or united states and vice versa. The best thing also, you can choose many different options for selling physical products. If you do not want to do the manual labour work of shipping your product, you can choose to either dropship or use fulfilment centres. SELLING SPONSORSHIP Another advantage that a good cyberpreneur can create and sustain a thriving online community around your personal or business brand. This can in the form of social media influencer, Facebook page or YouTube channel that has a considerable following. By having these large followers, Cyberpreneurs can receive sponsorship from companies that want to promote their brand, products or services to the Cyberpreneurs large followings. SELLING CONSULTANCY AND SERVICES Entrepreneurs who have specific skills and knowledge and offers it to customers via online can also be defined as Cyberpreneurs. With the advent of the freelance platform with existing market, Cyberpreneurs nowadays do not need to open their platform to market their skills. They can immediately find freelance jobs in the existing platform such as Fiverr, Upwork and Guru. Here they can offer their services to a vast online community who will be needing their services. Example of services that can be offer range to many areas such as graphic design, website building to data entry. The better you become at offering at services, the more potential revenue you can earn. The better you become one trade of skill, the more premium you can charge as you have that specialised skill which you can offer as a consultancy to people as your customers. SELLING BRANDS Being an online entrepreneur, you will have the ability to build brands and promote them across various digital platforms and social media. With the emerging digital business nowadays, Cyberpreneurs will also have the option of exiting their digital business by selling the brand that they built over time. There are many platforms nowadays which offer to buy and sell websites such as Empire Flippers and Flippa. Cyberpreneurs who develop their business via a website also build their business branding over time. Once a cyberpreneur have developed loyal followers of their brand, that brand itself will have a value in which other businessman or corporate body may want to utilise and tap into. This is where the building and selling website has flourished. HIGH TECHNOLOGY INDUSTRY HIGH TECHNOLOGY INDUSTRY The definition of high technology industry is based on five factors: (1) intensity of science,engineering, and technician occupations, (2) research and development (R&D) employment, (3) production of high-technology products, (4) use of high-technology production methods, and (5) the relationship between hightechnology industries and productivity growth. HIGH TECHNOLOGY INDUSTRY From Longman Business Dictionary ˈhigh-tech ˌindustry (also hi-tech industry) [countable] an industry using or involving advanced methods and the most modern equipmentsuch important high-tech industries as chemicals, drugs and aircraft.