English Oriented to IT Scenario 1: Entrepreneurship-Theme 1: Business Opportunities Essential Question: 1. What type of enterprise would you like to have in the future? 2. How would you bring great business opportunities together? ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ Functions: 1. Describing the characteristics and importance of the entrepreneurship. 2. Distinguishing types of business model. 1. The characteristics and importance of the entrepreneurship: A. Concept of Entrepreneurship Entrepreneurship is the ability and readiness to develop, organize and run a business enterprise in order to make a profit. The entrepreneur is defined as someone who has the ability and desire to establish, administer and succeed in a startup venture along with risk entitled to it, to make profits. The entrepreneurs are often known as a source of new ideas or innovators, and bring new ideas in the market by replacing old with a new invention. It can be classified into small or home business to multinational companies. Exercise: How would you define entrepreneurship with your own words? B. 12 essential characteristics of entrepreneurship: Vision Risk tolerance Innovation Discipline Self-reliance Adaptability Leadership Creativity Attention to detail Curiosity Passion Motivation Exercise: Can you add more? _____________________________________________________________. C. 1. 2. 3. 4. 5. 5 tips for being a successful entrepreneur: Understand your target market Develop a strong brand Build relationships with customers and clients Make a budget and stick to it Set goals Exercise: Can you add more? __________________________________________________________. D. What are the 4 Types of Entrepreneurship? 1. Small Business EntrepreneurshipThese businesses are a hairdresser, grocery store, travel agent, consultant, carpenter, plumber, electrician, etc. These people run or own their own business and hire family members or local employee. For them, the profit would be able to feed their family and not making 100 million business or taking over an industry. They fund their business by taking small business loans or loans from friends and family. 2. Scalable Startup EntrepreneurshipThis start-up entrepreneur starts a business knowing that their vision can change the world. They attract investors who think and encourage people who think out of the box. The research focuses on a scalable business and experimental models, so, they hire the best and the brightest employees. They require more venture capital to fuel and back their project or business. 3. Large Company Entrepreneurship- These huge companies have defined life-cycle. Most of these companies grow and sustain by offering new and innovative products that revolve around their main products. The change in technology, customer preferences, new competition, etc., build pressure for large companies to create an innovative product and sell it to the new set of customers in the new market. To cope with the rapid technological changes, the existing organizations either buy innovation enterprises or attempt to construct the product internally. 4. Social EntrepreneurshipThis type of entrepreneurship focuses on producing product and services that resolve social needs and problems. Their only motto and goal is to work for society and not make any profits. Exercise: Mention the name of one enterprise in your community for each type. 1. 2. 3. 4. Small business: _____________________________ Scalable startup: ____________________________ Large company: _____________________________ Social: _____________________________________ E. Characteristics of Entrepreneurship: Ability to take a risk- Starting any new venture involves a considerable amount of failure risk. Therefore, an entrepreneur needs to be courageous and able to evaluate and take risks, which is an essential part of being an entrepreneur. Innovation- It should be highly innovative to generate new ideas, start a company and earn profits out of it. Change can be the launching of a new product that is new to the market or a process that does the same thing but in a more efficient and economical way. Visionary and Leadership quality- To be successful, the entrepreneur should have a clear vision of his new venture. However, to turn the idea into reality, a lot of resources and employees are required. Here, leadership quality is paramount because leaders impart and guide their employees towards the right path of success. Open-Minded- In a business, every circumstance can be an opportunity and used for the benefit of a company. For example, Paytm recognized the gravity of demonetization and acknowledged the need for online transactions would be more, so it utilized the situation and expanded massively during this time. Flexible- An entrepreneur should be flexible and open to change according to the situation. To be on the top, a businessperson should be equipped to embrace change in a product and service, as and when needed. Know your Product- A company owner should know the product offerings and also be aware of the latest trend in the market. It is essential to know if the available product or service meets the demands of the current market, or whether it is time to tweak it a little. Being able to be accountable and then alter as needed is a vital part of entrepreneurship. Creation of Employment- Entrepreneurship generates employment. It provides an entry-level job, required for gaining experience and training for unskilled workers. Innovation- It is the hub of innovation that provides new product ventures, market, technology and quality of goods, etc., and increase the standard of living of people. Impact on Society and Community Development- A society becomes greater if the employment base is large and diversified. It brings about changes in society and promotes facilities like higher expenditure on education, better sanitation, fewer slums, a higher level of homeownership. Therefore, entrepreneurship assists the organization towards a more stable and high quality of community life. Increase Standard of Living- Entrepreneurship helps to improve the standard of living of a person by increasing the income. The standard of living means, increase in the consumption of various goods and services by a household for a particular period. Supports research and development- New products and services need to be researched and tested before launching in the market. Therefore, an entrepreneur also dispenses finance for research and development with research institutions and universities. This promotes research, general construction, and development in the economy. 2. Distinguishing types of business model: A. What is a business model? A business model is an outline for how your company plans to make money. A business model defines how a company will create, deliver, and capture value. In general, a business model explains four things: What product or service a company will sell. How it intends to market that product or service. What kind of expenses the company will face. How the company expects to turn a profit. Exercise: How would you define the term business model? _____________________________________. B. Most common types of business models and examples 1. Retailer model A retailer is the last link in the supply chain. These businesses purchase goods from manufacturers or distributors and then sell them to customers for a price that will both cover expenses and turn a profit. Retailers may specialize in a particular niche or carry a range of products. Examples: From grocery stores to pharmacies to florists. Exercise: Mention the name of an enterprise in your community for this type. ______________________ 2. Manufacturer model A manufacturer converts raw materials into products. Then, they sell those products to distributors, retailers or directly to consumers. Example: Manufacturing businesses build everything from furniture to pharmaceuticals. They can be companies of any size and in almost any industry. Exercise: Mention the name of an enterprise in your community for this type. ______________________ 3. Fee-for-service model A fee-for-service is just what it sounds like: A business charges a set fee for a specific service. A business set up on this model can increase its earnings by doing work for additional clients or by raising its rates. Depending on what type of work the business does, it might charge an hourly rate, monthly retainer or commission. It may also create a fee schedule with a set rate for different types of services. Example: Hairstylists, accountants and real estate agents all charge fees for their specialized services. They may work independently or be affiliated with a salon, office or brokerage that provides resources in exchange for a percentage of their earnings. Exercise: Mention the name of an enterprise in your community for this type. ______________________ 4. Subscription model A subscription business model can be applied to both traditional brick-and-mortar stores and ecommerce businesses alike. Essentially, the customer makes a recurring payment for ongoing access to a service or product. A company may directly ship its product in the mail, or you may pay a fee to use its services. Example: Many local farms offer farm shares or community-supported agriculture subscriptions, where clients get access to fresh produce on an ongoing basis while crops are in season. Exercise: Mention the name of an enterprise in your community for this type. ______________________ 5. Bundling model The bundling business model involves companies selling two or more products together as a single unit, often for a lower price than they would charge selling the products separately. This type of business model allows companies to generate a greater volume of sales and perhaps market products or services that are more difficult to sell. However, profit margins often shrink since businesses sell the products for less. Example: Many class-based fitness centers and gyms use a type of bundling model, where clients pay fees for a certain number of classes per month. The more classes a client buys, the cheaper each individual class becomes, even though their total spend increases. Exercise: Mention the name of an enterprise in your community for this type. ______________________ 6. Product-as-a-service model Product-as-a-service businesses charge customers to use physical products. They may charge a subscription fee, a per-use or per-mile fee, or a combination of both. Example: Bike rental companies offer products as a service. Customers might pay an annual membership fee plus a per-mile fee each time they ride, or they might have the option to rent a bike for the day. Exercise: Mention the name of an enterprise in your community for this type. ______________________ 7. Leasing model Under a leasing business model, a company buys a product from a seller. That company then allows another company to use the product they purchased for a recurring fee. Leasing agreements are usually most efficient with big-ticket items like manufacturing and medical equipment, but some companies lease smaller items too. Leasing is similar to the product-as-a-service business model, but leases usually have longer terms — days or weeks compared to minutes or hours. Leasing companies are unlikely to charge a subscription or membership fee for access to their products. Example: A business that rents machinery like backhoes, augers and dozers to individuals for their home construction projects is using a leasing business model. Exercise: Mention the name of an enterprise in your community for this type. ______________________ 8. Franchise model A franchise is an established business blueprint that a franchisee purchases and reproduces. The franchiser, or original owner, works with the franchisee to help them with financing, marketing and other business operations to ensure the business functions as it should. In return, the franchisee pays the franchiser a percentage of the profits. Example: Domino’s, Anytime Fitness and Ace Hardware are all examples of the franchise model. Exercise: Mention the name of an enterprise in your community for this type. ______________________ 9. Distribution model A company operating as a distributor is responsible for taking manufactured goods to the market. To make a profit, distributors buy the product in bulk and sell it to retailers at a higher price. Example: A chain of beauty salons that buys supplies in bulk and sells some of them to other salons is using a distribution business model, though they may have other revenue streams too. Exercise: Mention the name of an enterprise in your community for this type. ______________________ 10. Freemium model In a freemium model, customers can use parts of a product or service for free but must pay for access to more advanced features. This model is common in the software-as-a-service space — Spotify, for instance, has a free ad-supported tier, but subscribers get to listen ad-free. Example: Some news and internet publishing companies use a freemium model, where some or all content is free but premium content or special features are paywalled. Exercise: Mention the name of an enterprise in your community for this type. ______________________ 11. Advertising or affiliate marketing model The advertising and affiliate marketing business models leverage a business’s audience as an asset. With advertising, a business sell its audience’s attention. Advertisers pay for space — whether it’s in the pages of a magazine or on the side of a vehicle — with rates usually determined by the size of the business's audience. Example: A fashion blogger who sells ads on their podcast or website is using an advertising model. If they post outfit-of-the-day photos with links that viewers can click to “get the look,” they might also earn an affiliate marketing commission on those purchases. Exercise: Mention the name of an enterprise in your community for this type. ______________________ 12. Razor blades model To understand the razor blades model, you can simply look to your local drugstore. You’ll notice that replacement razor blades may cost more than razors themselves. Companies offer a cheaper razor with the understanding that you’ll continue to purchase more expensive accessories — in this case, razor blades — in the future. In addition to the traditional razor blades model, you'll also see companies use the reverse razor blades model, in which they offer customers a high-margin product and then promote the sales of lower-margin products that accompany that initial product. Examples: This business model is most common among companies that sell physical products. Printers that require a specific type of ink or water pitchers that require a specific type of filter are examples of the razor blades model. Exercise: Mention the name of an enterprise in your community for this type. ______________________ References: https://online.hbs.edu/blog/post/characteristics-of-successful-entrepreneurs?c1=GAW_CM_NW&source=INTL_GEN_PMAX&cr2=content____international__-__gen__-__pmax&kw=general&cr5=&cr6=&cr7=c&utm_campaign=content__-__international__-__gen____pmax&utm_term=general&gad_source=1&gclid=Cj0KCQiAw6yuBhDrARIsACf94RVzyu7GA2uqdTwjUlHE1cF7IPzHHZuj_YULOzbt_cAQwKilF1aHaBEaArQ 4EALw_wcB https://byjus.com/commerce/what-is-entrepreneurship/ https://www.shopify.com/blog/characteristics-of-entrepreneurship https://online.hbs.edu/blog/post/characteristics-of-successful-entrepreneurs https://www.nerdwallet.com/article/small-business/what-is-a-business-model https://www.investopedia.com/terms/b/businessmodel.asp Career Paths. Business.
