THE ENTREPRENEURIAL MIND
INTRODUCTION TO ENTREPRENEURSHIP
Learning Outcomes:
•
•
•
•
•
Understand
the
concepts
in
entrepreneurship.
Explain the roles of entrepreneurship in
the society.
Discuss
the
characteristics
an
entrepreneur in order to be successful.
Describe
the
functions
of
entrepreneurs.
Discuss ethics in business.
WHAT IS ENTREPRENEURSHIP?
Entrepreneurship refers to the economic
activity of a person who starts, manages
and assumers the risk of a business
enterprise. The person who undertakes
entrepreneurial activities is called an
entrepreneur.
Starting with practically nothing, an
entrepreneur is one who organizes a new
venture, manages it, and assumes the
associated risk. The term entrepreneur is
broadly defined to include business
owners, innovators, and executives in
need of capital to start a new project,
introducing a new product, or expanding
a promising line of business. We include
technology transfer experts, technologists
at leading universities, and consultants
and advisors assisting in all aspects of
venturing.
An entrepreneur’s principal objectives are
profit and growth, and they will employ
formal strategic management practices to
achieve them.
Joseph Alois Schumpeter, an AustrianAmerican economist, wrote in The Theory
of Economic Development, he believed
that
innovation
and
creativeness
distinguished entrepreneurs from other
businesspeople.
He
observed
that
innovation and entrepreneurship are
closely interwoven.
Schumpeter introduced the phrase
“creative destruction,” stating that the
entrepreneur does not just invent things,
but also exploits in novel ways what has
already been invented.
He identified five types of entrepreneurial
activity:
1. new product innovation or the
introduction of a new service
2. new process innovation or new
methods of production
3. market innovation or the opening of
new markets
4. input or resources innovation. input or
resources innovation.
5. organizational innovation, which is the
complete restructuring of an entire
industry or the breaking up of a
monopoly.
ENTREPRENEUR’S TASK
▪
Decision-Making
The primary task of an entrepreneur is
to decide the policy of production. An
entrepreneur is to determine what to
produce, how much to produce, how to
produce, where to produce, how to sell
and’ so forth. Moreover, he is to decide the
scale of production and the proportion in
which he combines the different factors he
employs. In brief, he is to make vital
business decisions relating to the purchase
of productive factors and to the sale of the
finished goods or services.
▪
Management Control
Management and control of the
business
are
conducted
by
the
entrepreneur himself. So, the latter must
possess a high degree of management
ability to select the right type of persons to
work with him. But, the importance of this
function has declined, as business
nowadays is managed more and more by
paid managers.
▪
Division of Income
The next major function of the
entrepreneur is to make necessary
arrangement for the division of total
income among the different factors of
production employed by him. Even if there
is a loss in the business, he is to pay rent,
interest, wages and other contractual
incomes out of the realized sale proceeds.
▪
Risk-Taking and Uncertainty-Bearing
Risk-taking is perhaps the most
important function of an entrepreneur.
Modern production is very risky as an
entrepreneur is required to produce goods
or services in anticipation of their future
demand.
Broadly, there are two kinds of risk
which he has to face. Firstly, there are
some risks, such as risks of fire, loss of goods
in transit, theft, etc., which can be insured
against. These are known as measurable
and insurable risks. Secondly, some risks,
however, cannot be insured against
because their probability cannot be
calculated accurately. These constitute
what
is
called
uncertainty
(e.g.,
competitive risk, technical risk, etc.). The
entrepreneur undertakes both these risks in
production.
▪
Innovation
Another distinguishing function of the
entrepreneur, is to make frequent
inventions — invention of new products,
new techniques and discovering new
markets — to improve his competitive
position, and to increase earnings.
QUALIFICATIONS OF ENTREPRENEURS
Being an entrepreneur requires specific
skills. While some abilities might be naturally
present, others can be learned or
developed through careful practice.
Understanding the qualities needed by
entrepreneurs can help you grow to
become a better business leader.
Entrepreneur characteristics are qualities
that help entrepreneurs achieve their
goals. An entrepreneur is someone who
creates, organizes and runs their own
business.
Examples of Entrepreneurs include:
▪
Online
Business
Owners:
Online
entrepreneurs include bloggers, ecommerce or any business owner who
performs commercial activities mostly
online.
▪
Home-Based Business Owners: Homebased entrepreneurs run their business
from their home as opposed to offices.
▪
Inventors: Inventors are entrepreneurs
who build their idea and sell it on the
market.
15 ENTREPRENEUR CHARACTERISTICS TO
DEVELOP
1. Creativity
Becoming an entrepreneur starts
with an idea. You need to see
opportunities, find innovative ways to do
things and bring solutions to the public.
To improve your creativity, develop
habits that support the creative system.
Think about what makes you feel creative,
such as music, meeting people, reading or
some other activity. Dedicate a specific
part of your day to find inspiration for new
solutions. During this part of the day, start
by doing what inspires you, then let your
mind flow. You can make a list of ideas and
select some to pursue.
2. Passion
Passion is what drives entrepreneurs.
They usually love what they do, and this
helps them invest their time in their
projects.
To become a more passionate
entrepreneur, focus on the meaning of
your work. Remember that you contribute
to finding solutions that will help many
people. Knowing that your commitment
makes an impact may give you the drive
you need to continue when doubt settles
in or when the business gets difficult.
Passion is what keeps you focused on your
objective.
3. Motivation
Motivation is the will to accomplish
certain things. Entrepreneurs are driven to
make their business a success and push
themselves.
To increase motivation, you can start
by setting small goals. Small goals can help
you reach larger ones and encourage you
to aim higher. Recognize the work already
accomplished and celebrate your results,
even minor ones. Also, keep a positive
mindset. Turn your mind away from
negativity and daily obstacles to focus on
what you want to achieve and the positive
aspects of your life.
4. Product or Service Knowledge
Entrepreneurs know what they have to
offer and to whom they can sell it. Clearly
define the category of products or services
you sell and how they provide value to
consumers. Also, study your target clients
to make sure you answer their needs. This
will allow you to improve your offer
continuously so you can stay on top of
industry trends. To increase the positive
impact of this knowledge, you should
continually learn about your market,
understand what people need and know
the features that differentiate you from
competitors. Talk with your clients and use
their feedback. With this information, you
can adjust your position when necessary.
5. Ability to Network
The ability to connect with people and
to recognize opportunities for partnership is
crucial to successful entrepreneurship.
Meeting new people might facilitate
access to resources or knowledge that
your business needs. It allows you to learn
from the success of others, promote your
services or goods and meet new clients.
To improve your networking skills, you
must try to build genuine relationships. You
likely have a business goal in mind, but
approach people with the objective of a
human connection, just like making new
friends. If you meet someone who could
benefit another person in your network,
connect them. Not only will you help
someone,
but
they
will
probably
remember you and want to return the
favor.
6. Self-confidence
Entrepreneurs
believe
they
can
achieve their goals. They may have doubt,
but they persevere through it. They are
ready to invest the necessary work
because they are confident they can
create something better than what
already exists.
Self-confidence is essential because it
allows you to feel better and makes it
easier to overcome challenges, take risks
and be persistent. Therefore, it contributes
to your success overall.
To improve your self-confidence, you
can use the technique of visualization.
Visualize yourself as the person you want to
be and visualize your business at a stage
you would be proud of. You can also
practice affirmation by saying uplifting
statements about your accomplishments.
These techniques can help to change the
way you see yourself positively.
7. Optimism
Entrepreneurs are dreamers with a plan
in place: They see the positive side of the
situation and always move forward.
Optimism supports creativity, so it helps
business leaders finding new ideas for their
products or services and increases their
chances of success. To develop your
optimism, you can consider challenges as
opportunities to grow instead of problems
that could stop you. Keep the end goal in
mind, and don’t dwell on past issues.
8. Vision
Entrepreneurs have vision. They see a
big picture they wish to accomplish, which
fuels their efforts and pushes them to do
more. Moreover, vision is what defines the
culture and identity of an organization. Not
only does it keep entrepreneurs energized,
but it allows them to motivate others and
keep
them
working
towards
the
company’s success.
To improve your entrepreneurship
vision, you can implement a daily action
plan. Prioritizing your tasks can keep you
from feeling overwhelmed and help you
stick to your vision. Also, listen to or read
uplifting content to fortify your mind and
stay focused on your purpose.
9. Goal Mindset
12. Decision-making
Entrepreneurs are goal oriented. They
know what they want to achieve, set a
goal and work toward that objective.
Determination is vital to overcome possible
challenges, and it also inspires trust from
the people who work with you.
Entrepreneurs need to make quick
decisions and take action for the success
of their business.
To become more goal-oriented, you
can start by identifying what you want to
accomplish and clarifying your vision of the
future. Then, set a goal with a timeline to
guide your actions. This will allow you to
witness your progression and help keep
you committed to your goal.
10. Risk-taking
Entrepreneurs are ready to take risks.
They plan for the unknown so they can
make calculated decisions that are
profitable for them and their business. To
increase your risk-taking abilities, you can
start considering your journey as a learning
process, including the possible failures. You
must keep your goal in mind and commit
to persevering.
It is essential to take some risks to
differentiate from your competition and
allow your business to succeed. Once you
know how you can manage risk and grow
from disappointments, you may become
more comfortable with challenging
yourself.
11. Persuasiveness
Entrepreneurs know their business and
how to talk about it to people. They need
to persuade others to believe in their idea.
To improve your persuasion skills, learn
about your listeners and adapt to their
personality. You can share a story to reach
them on an emotional level and show your
passion. If people can relate to your story,
it creates a connection that can grow into
loyalty, which is essential for your business
success. Another tip is to share your
accomplishments and rely on facts to
support your arguments and convince
people.
To improve your decision-making skills,
you can inform yourself to understand
better the problems you try to solve. Assess
the impact of the decision you need to
make, and allow a corresponding amount
of time to decide. You can also narrow
your options to ease the process of making
a decision.
13. Tenacity
Entrepreneurs overcome challenges.
They persevere through difficulties and
hold on to their goals and dreams.
To improve your tenacity, you can write
down your goals and read them every
day. You can choose role models and
remember great figures of history who had
to persevere through failure before they
achieved success.
14. Money Management
Entrepreneurs need to understand the
financial situation of their business. Even if
they hire a specialist like an accountant,
they are the decision-maker and must
know their situation to run the business
successfully.
You can improve your basic money
management skills by preparing a budget
and committing to it and investing
available funds rather than spending
them. You can also acquire more financial
knowledge by taking classes or training
programs.
15. Adaptability
When
they
start
a
business,
entrepreneurs often need to multitask.
Flexibility in your schedule, as well as in your
thinking, is crucial to continue growing in
challenging situations.
To increase your adaptability, you can
approach all activities with an open mind
and stay ready to change your ways if
necessary. Try new methods and welcome
new trends to foster your ability to adapt.
ETHICS AND SOCIAL RESPONSIBILITY OF AN
ENTREPRENEUR
manipulates, then they are sending wrong
signals to employees.
An entrepreneur should be aware
of ethics and social responsibility in
business and should follow them in order to
maintain the ecological balance in the
society. The study and examination of
moral and social responsibility in relation to
business practice and decision making in
business is known as “Business Ethics”.
•
Business is commonly referred to the
commercial activities achieved at making
profit, but gradually there is a substantial
change in the way in which people
viewed the business. In the past primary
objective of a business was profit
maximization but the present perspectives
on
business
objectives
are
not
maximization. Besides profit maximization
the entrepreneur needs to fulfill the ethics
in the business.
Social Responsibility has been
defined
by
Andrews
“By
social
Responsibility, we mean the intelligent and
objective concern for the welfare of
society that restrains individual and
corporate behavior from ultimately
destructive activities, no matter how
immediately profitable, and leads in the
direction of positive contributions to
human betterment.
•
PUBLIC IMAGE
The activities of an entrepreneur towards
the welfare of the society earn goodwill
and reputation for the business. People
prefer to buy products of a company that
engages itself in various social welfare
programs. Again, good public image also
attracts the honest and competent
employees to work with such employers.
•
EMPLOYEE SATISFACTION
Employees are the part of the society. If
you satisfy their needs, then you are doing
social work.
•
ETHICAL LEADERSHIP
It is the belief that what entrepreneur does
has a strong influence on employees. If
manager
cheats,
lies,
steals
or
SOCIAL ENTREPRENEUR
Is an individual or organization who seeks
out opportunities to improve society by
using practical, innovative and substantial
approaches.
•
ENVIRONMENT MANAGEMENT
Managers and Organizations can do
many things to protect and preserve the
natural environment which includes plastic
less business by giving paper bag, creating
eco-friendly product, by eliminating
production.
•
CONSUMER AWARENESS
Consumers have become very conscious
about their rights. If you are giving high
quality products at cheap rate, that is kind
of social responsibility.
Doing business ethically means
holding right things right and wrong things
wrong in business. Frederick and Lawrence
define business ethics as “application of
general ethical ideas in business”.
Business
ethics
are
centrally
concentrated with the business conduct.
A value is something that has worth or
importance to an individual, it contains a
judgment elemental in that it carries
individual, ideas as to what is right, good or
desirable.
Corporate Social Responsibility is
the continuing commitment by the
business to behave ethically and
contribute to economic development
while improving the quality of life of the
workforce and their families as well as the
local community and society at large.
THE ENTREPRENEURIAL MIND
IMPORTANCE IN ECONOMIC DEVELOPMENT
Learning Outcomes:
•
•
•
Explain
the
importance
of
entrepreneurship in the economic
development.
Determine
the
roles
of
the
entrepreneurs to the society and
humanity
and
their
tasks
as
entrepreneurs.
Describe the moral values of Filipinos
that hinder entrepreneurship.
IMPORTANCE
DEVELOPMENT
IN
ECONOMIC
Entrepreneurship is a very important
component of a capitalist economy like
the Philippines. When entrepreneurs
become successful, the nation is
immensely benefited.
Economic development is a scheme at
improving the living standard of the
nation’s citizenry. To achieve economic
development goals, proper management
of the following elements is necessary:
1. human resources (labor, supply,
education, discipline, motivation);
2. natural resources (land, minerals, fuel,
climate);
3. capital formation (machines, factories,
roads); and
4. technology (science, engineering,
management, entrepreneurship)
The effective and efficient utilization
of the various resource elements
contribute to the economic growth. There
is a need for entrepreneurs to perform the
function of harnessing the potentials of any
or all the various elements, determining the
right quantity of resources needed, and
applying the elements at the right time.
The
performance
of
the
entrepreneur, however, will depend much
on the support provided by the
government. Apart from other obstacles,
government
restrictions
limit
the
effectiveness of entrepreneurs.
7 ROLES OF ENTREPRENEURS IN
ECONOMIC DEVELOPMENT COUNTRY
•
THE
WEALTH CREATION AND SHARING
By establishing the business entity,
entrepreneurs invest their own resources
and attract capital (in the form of debt,
equity, etc.) from investors, lenders and the
public. This mobilizes public wealth and
allows people to benefit from the success
of entrepreneurs and growing businesses.
•
CREATE JOBS
Entrepreneurs are by nature and definition
job creators, as opposed to job seekers.
The simple translation is that when you
become an entrepreneur, there is one less
job seeker in the economy, and then you
provide employment for multiple other job
seekers.
•
BALANCED REGIONAL DEVELOPMENT
The growth of industries and business in less
developed and backward areas leads to
infrastructure improvements like better
roads and rail links, airports, stable
electricity and water supply, schools,
hospitals, shopping malls and other public
and private services that would not
otherwise be available.
The combined spending by all the new
employees of the new businesses and the
supporting jobs in other businesses adds to
the local and regional economic output.
•
GDP AND PER CAPITA INCOME
GDP per capita measures the economic
output of a nation per person. It seeks to
determine the prosperity of a nation by
economic growth per person in that
nation. Per capita income measures the
amount of money earned per person in a
nation.
•
STANDARD OF LIVING
Entrepreneurs again play a key role in
increasing the standard of living in a
community. They are ablet to develop and
adopt
innovations
that
lead
to
improvements in the quality of life of their
employees,
customers,
and
other
stakeholders in the community.
•
EXPORTS
Any growing business will eventually want
to get started with exports to expand their
business to foreign markets. This is an
important
ingredient
of
economic
development since it provides access to
bigger markets, and leads to currency
inflows and access to the latest cutting
edge technologies and processes being
used in more developed foreign markets.
•
COMMUNITY DEVELOPMENT
By establishing the business entity,
entrepreneurs invest their own resources
and attract capital (in the form of debt,
equity, etc.) from investors, lenders and the
public. This mobilizes public wealth and
allows people to benefit from the success
of entrepreneurs and growing businesses.
So, there is a very important role for
entrepreneurs
to
spark
economic
development by starting new businesses,
creating jobs, and contributing to
improvement in various key goals such as
GDP, exports, standard of living, skills
development
and
community
development.
FILIPINO
VALUES
ENTREPRENEURSHIP
THAT
HINDER
1. Laziness And Indulgent. Takes Things
Lightly. (Shades of Juan Image)
2. Avoid Risks. (Segurista, Loob)
3. Go Along with The Group’s Wishes.
(Sobrang Makisama)
4. Over Sensitive to Criticisms and Would
Likely Be Discouraged (Balat-Sibuyas)
5. Lack Of Perseverance, Filipinos Tend to
Lose Interest After Initial Burst of
Enthusiasm. (Ningas- Kugon)
6. Fatalistic. (Bahala Na Attitude)
7. Crab Mentality
8. Lack Of Originality and Creativity and
Tend to Imitate Others.
THE ENTREPRENEURIAL MIND
Unlocking Difficulty
1. Design thinking: A discipline that uses
the designer's sensibility and methods
to match people's needs with what is
technologically feasible and what can
convert into customer value and
market opportunity.
2. React: A quick and instant action
towards a stimulus without much
thought or evaluation.
3. Respond: A thoughtful and considered
action or reply after evaluating the
stimulus and its impact.
4. Synergy: Synergy refers to the
combined effect or cooperation of two
or more elements, entities, or individuals
that produces a result greater than the
sum of their separate effects. It
represents the idea that working
together and combining efforts can
lead to enhanced outcomes and
productivity.
5. Resilience: Resilience is the ability to
recover quickly
from difficulties,
setbacks, or adversity. It is the capacity
to bounce back, adapt, and thrive in
the face of challenges, stress, or
trauma. Resilience involves mental,
emotional, and physical strength to
maintain well-being and overcome
obstacles.
DESIGN THINKING
•
•
•
He started of by selling worn military
combat boots to American soldiers.
Best known for SM malls.
According to Tim Brown, the Chief
Executive Officer of IDEO, design
thinking is "a discipline that uses the
designer's sensibility and methods to
match people's needs with what is
technologically feasible and what a
viable business strategy can convert
into customer value and market
opportunity".
•
•
Design thinking is a constant process or
trying to find innovative solutions to
problems through deep understanding
and empathy of the target user.
Design thinking offers a means of
digging that bit deeper to disclose
ways of improving user experiences.
THE DESIGN THINKING PROCESS
The Hasso Plattner Institute of Design at
Stanford provides a five-step process in
design thinking.
THE FIVE PHASES OF DESIGN THINKING
➢ EMPHATIZE:
Needs
Research
About
User's
The first step in the design thinking process
allows to obtain understanding of the
people who experience a problem
designing a solution to serve them.
Here are some key empathy-building
methods to gain a deeper understanding
of the users' pulse:
1
Empathy interviews - The objective of
the interview is to find out as much
insight as possible using an open
conversation.
2
Immersion and Observation - Users
should be observed in their natural
environment or immersed in a certain
situation while they are in action.
3
Extreme Users - Extreme users are the
ones sought to re-structure the problem
and discover fresh insights. Compared
to
average
users,
they
find
workarounds to existing problems.
4
Ask what, how, and why in curiosity The what, how, and why of users'
behavior must always be considered.
This line of questioning can lead the
observation into more abstract user
motivations.
One method that can be used to record
efficiently the information from the
interview is the empathy map.
Empathy Map - helps gather and organize
the data from the interview that could
lead to surprising insights. There are four
main components of the empathy map
namely:
1. Say - This quadrant covers what the
user says loudly in an interview or some
other usability study that contains
precise and direct quotes from
research.
Example: "I am loyal to Jollibee because I
never have a bad experience."
2. Think - This quadrant captures what the
user is thinking throughout the
experience.
Example: The user's thought could be
expressed as "This is really frustrating."
3. Do - This quadrant encompasses the
actions the user undergoes. Example:
The user "Shops around to compare
prices".
4. Feel - This quadrant contains user's
emotional state such as his worries,
excitement
about
a
certain
experience. This is often represented by
an adjective.
Example: "confused
contradictory prices".
➢ DEFINE: State
Problems
of
Users'
too
many
2. Eliminate the Bad - With design
thinking, all the bad components
witnessed in the problem are taken
out.
3. Search the opposite - Using design
thinking, the problem needs to be
transformed into opportunity.
4. Inquiry of the Assumptions - This step-in
design thinking consists of enquiring
about the assumption at hand.
5. Pinpoint the Unanticipated Resources Having design Winking, some other
resources not stated by the customer
can be sought on how they can be
controlled.
6. Form an Analogy - Design thinking also
includes the manner of creating
relationships between the problem at
hand and unconnected images.
7. Breakdown the Problem into Pieces –
This is where again analysis comes into
picture for a short while before the
problem definition can be synthesized.
➢ IDEATE: Challenge Assumptions and
Construct Ideas
In this stage, designers are prepared to
start generating ideas. The concrete
background of knowledge from the first
two stages means anyone can begin to
"think outside the box".
Here are some
techniques:
Needs
and
The first step towards defining a problem is
to find who the user is, what is his needs
and then develop insights from the
answers. Then the actionable design
problem statement is defined in a humancentered manner to club all the answers
together in the Empathize Stage.
Here are some guidelines in generating the
question under the design thinking
process:
1. Strengthen the Good - In design
thinking, all the positive aspects of the
customers' needs are intensified.
numerous
ideation
1. Brainstorm - relaxed and informal way
of solving a problem using imaginative
thinking.
2. Brainwrite - a serial process of asking
participants to write down their ideas
about a specific question or problem
on sheets of paper.
3. Worst Possible Idea - a technique
where members of the team look for
the worst solutions in ideation periods.
4. SCAMPER - This method is a concept
that aims to look for solutions, to
problems. It is more engrossed on the
process of discovering unfamiliar and
innovative solutions to problems.
SCAMPER stands for an acronym and
each letter stands for one thinking
technique:
▪
▪
▪
▪
▪
▪
▪
Substitute - A designer may look for
something to replace that will result in
improvements of concept, product,
service or progress.
Combine - Sometimes, the solutions are
already at hand and not really
something new. An idea might not
work alone, but a combination of some
ideas, processes or products could
work best.
Adapt - Often, there is already the right
solution to a problem, but still unknown
yet. Sometimes, an idea could solve
one or more problems.
Modify - At times, exaggerating a
situation or problem could offer a new
insight or added value. This could help
isolate which among the part of
process or concept is vital.
Put to another use - This is making the
idea or concept works into a different
use compared to what is originally
planned.
Eliminate - In the same process like the
Lean Six Sigma, this concerns
eliminating waste due to inefficient
processes.
Removing
ineffective
procedures could reform them.
Reverse - This is doing things that are
completely
against
the
original
purpose in order to see something from
a different angle.
Here are some of the benefits about
prototyping:
1. Timely
feedback
Collecting
feedback is an important feature of
the
product
building
process.
Feedback could reveal what works for
the market or what could not.
2. Prompt changes save time and cost At the end, changes could be in the
form
of
drastic
restructuring,
assumption and revision.
3. Validation prior to development repetitive process ensure easier what in
reality is needed.
4. User research and user testing – It is vital
to identify potential user and gather
ideas to serve them best. This can only
be attained using prototyping.
There are numerous types to prototyping. It
is always essential to choose the right type
to a product which suits into some
constraints such as time and resource.
1. Low Fidelity - This consists of paper
prototypes that are used in the early
stages that are constantly improved
during the process.
2. Medium Fidelity - This prototype
concerns the product, that is made
with practical functionalities based on
storyboard and user situations.
3. High fidelity - These prototypes are
mistaken for the final product,
because they look closely like the
would-be actual end product.
➢ PROTOTYPE: Start to Form Solutions
➢ TEST: Try Solutions Out
A prototype is a low-cost, scaled-down
quick working sample of entrepreneurial
ideas for new products or particular
features found in these products. A
prototype is a low-cost, scaled-down quick
working sample of entrepreneurial ideas
for new products or particular features
found in these products.
The complete product is tested in real life
environment using the best solutions in the
previous step. The results that are
produced out of the test are normally use
to redefine one or identify further
problems.
This stage is an experimental one to
validate ideas and to develop reaction to
form more and more prototypes for
interaction. The purpose is identifying the
best likely solution for each of the
problems. identified from the first three
stages. The solutions are applied within the
prototypes.
Testing is the opportunity for users to try out
the prototype. It is the chance for the
designer to observe on purpose and
gather finale process data.
INFLUENCE
What is a Response?
In order to be more competitive, a business
must take into account the elements that
influence
the
immediate
business
landscape. Every business should overlay
demographic profiles, competitor density,
overheads, transport availability and the
potential workforce that is immediately
available in order to decide on long term
strategies.
A response is preceded by
concrete thinking and a thorough
evaluation of the stimulus and the impact
of the action.
FACTORS:
1. Demography – Where you base your
business is dictated by the type of
people who will be your nearest
potential customers.
2. Competitors – Basing your business
near competitors can work both ways;
on the one hand there is the danger
that you’ll lose customers to your rivals,
especially if they undercut you on
price or have other benefits.
3. Overheads – Overheads vary widely,
depending on location. Beyond the
price of buying or paying commercial
rents for facilities and premises, you
need to take into account business
rates set by local authorities and factor
in variations in running costs, such as
commercial
cleaning
or
alarm
monitoring.
4. Transport availability – Transport
accessibility virtually affects any
business. Manufacturers need to
consider the ease of accessing major
roads,
railways
or
airports
for
distributing goods.
5. Workforce – It is good to be based
where suitable staff can easily get to
work. Assessing this can range from
crude categorization (younger staff for
local bars) to more sophisticated
categories,
such
as
academic
background and subject expertise
among a skilled workforce.
REACT vs RESPONSE
What is a Reaction?
A reaction is a quick and instant
action towards a stimulus. In some
situations, a reaction is accepted but in
others it can have a negative outcome.
Difference Between React and Response
If you just REACT:
•
•
•
•
•
•
Your goals will be short-sighted
There will be passive aggressive
behavior
Responses will be emotional
There will be no or very poor
communication
There will be overreaction
A lot of assumptions will be there and
people
will
directly
jump
into
conclusions
If you RESPOND:
•
•
•
•
•
•
Goals will be visionary
Values will drive the situation
The responses will come from a place
of knowledge
Communication
will
be
highly
connected
Instead of overreacting, you will focus
on facts
Your anticipation will help the response
to be pre-thought out
Reacting vs Responding Examples
Example 1: Waiters at a restaurant make
mistakes by delivering orders to the wrong
table.
Reaction: The manager scolds them
immediately, which ends up frightening
and humiliating the waiters.
Response: Calmly devising a system for
assigning numbers to each table for a
more organize delivery.
If the situation is dealt with a response, the
waiters will easily get the orders to the
correct table. Rather than frightening the
humiliating the waiters with anger and
causing confusion in their mind.
Example 2: During an argument between
the employee and a customer, the
customer begins yelling at the employee.
Reaction: The employee also begins
yelling which makes the argument heated.
Response: The employee refrains from
yelling, talks calmly and waits for the
customer to cool down and then states
their opinion and proceeds to understand
the root of the problem in order to avoid
such incident in the future.
If both the people begin yelling at each
other, it will lead to a bitter end and might
even damage the relationship between
the business and customer. On the other
hand, the response helps initiate a
conversation and may even end with a
solution to the reason for the argument.
One of the
responding is
response.
main requirements of
being mindful of the
This mindfulness can be practiced through
the P.L.A.C.E. skill.
•
•
•
•
•
P-ause - Take a step back and
evaluate the trigger or situation.
L-abel the Emotion - Understand the
emotion you are feeling as a result of
the trigger. It may be anger,
annoyance,
frustration,
irritability,
anxiety or disappointment.
A-sk Why - Ask yourself why you are
feeling triggered. Why is the situation or
person making you feel that specific
emotion? This step helps us become
self-aware.
C-hoose a Mindful Response - Think of
how you want to respond to it. Weigh
the pros and cons of the response that
you want to choose. If it affects you or
anyone else negatively, try coming up
with another response. Or, if it brings a
positive response, execute it.
E-mpower Yourself - Now that you have
learnt the process of being mindful,
make an effort to implement it each
time there is a react vs respond
situation.
“Between stimulus and response, there is
space. In that space is our power to
choose our response. In our response lies
our growth and our freedom”
- Viktor E. Frank
LOCUS OF CONTROL
✓ It refers to how much control a person
feels they have in their own behavior.
✓ A person can either have an internal
locus of control or an external locus of
control (Rotter, 1954).
✓ It refers to an idea connected with
anticipations about the future.
✓ It is how much individuals perceive that
they themselves have control over their
own actions as opposed to events in
life occurring instead because of
external forces. It is measured along a
dimension of 'high internal' to 'high
external'.
TWO TYPES OF LOCUS OF CONTROL
1. Internal Locus – a conviction that one
can handle one's own life.
2. External Locus – a conviction that life is
constrained by outside factors which
the individual can't impact, or that
possibility or destiny controls their lives.
A person with an
internal locus of
control will think
that the promotion
was
entirely
deserved strictly for
their hard work
with the company.
However, if they
are
denied
a
promotion,
they
will
blame
themselves
and
may take the news
harder than others
around
them
would have.
A
person
with
external locus of
control
will
consider
the
promotion to them
based on factors
such as the right
timing,
perhaps
others higher in the
company
like
them,
divine
intervention, or just
luck
or
fate.
However, if they
are denied the
promotion, it will
usually
not
be
taken as hard as
other people. They
will brush it off,
blaming another
reason outside of
themselves for the
perceived failure,
assuming that it is
outside of their
control.
“When stuff happens in life, stop and ask
yourself where your locus of control resides.
An external locus leads to reactivity. An
internal locus opens a choice.”
- Power of TED
What is Vision?
VISION: THE POWER TO CHOOSE
✓ Vision is defined as the "act or power of
imagination" and the "mode of seeing
or
conceiving"
with
unusual
discernment
or
foresight.
(MerriamWebster)
✓ Vision is the vital energy that drives the
entrepreneur,
the
founder,
the
cofounder and his immediate team.
✓ Vision is the energy that provides an
entrepreneur and its organization with
the ability to perform and succeed.
✓ Vision is what creates and establishes
the culture, which is the key
component that gets softly shared
between
people
creating
and
establishing norms, expectations and
duties that defines organization acts.
✓ Vision is the mental picture of the future
you desire. More than just a goal, a
vision is the embodiment of our hopes
and dreams in a particular area; the
picture of what has not yet happened,
but what the future may hold.
What does it mean to have a vision?
Having a vision is important because none
of what we've learned will mean much if
we don't have a destination in mind, a
goal with meaning, a vision that we own
and strive to achieve.
Entrepreneurs are empowered by the
combination of a vision and the willingness
to act. We are more willing to focus our
efforts on things that will improve our lives
and bring us closer to our goals once we
have established them.
Reasons why having a Vision is crucial:
•
•
•
It is unifying – When a clear vision is
defined within a company, it provides
a gathering point, or common interest,
making everyone feel as though they
are a part of a greater whole.
It is Inspiring – Defining a powerful vision
is inspiring. It has a clear motivational
effect on everyone within the
organization.
It provides a focal point for goal-setting
and business planning – Your vision will
help you define your short and longterm goals, and guide the decisions
you make along the way.
MINDSET DEFINED
As a mindset, Design Thinking is
characterized by several key principles: a
combination of divergent and convergent
thinking, a strong orientation to both
obvious and hidden needs of customers
and users, and prototyping. As a process,
Design Thinking is seen as a combination of
a micro- and a macro-process.
Design thinking focuses on achieving
practical results and solutions that are:
•
•
•
Having a vision means we have a clear
sense of purpose. It means we have a
much larger picture of our business, or our
life, than simply setting and reaching short
term goals and tackling problems as they
come along. Visions are driven by passion
and dreams, and they are reflected
through real efforts to create real results.
Technically feasible: They can be
developed into functional products or
processes;
Economically viable: The business can
afford to implement them;
Desirable for the user: They meet a real
human need.
THE ENTREPRENEURIAL MIND
Unlocking Difficulty
1. Lucrative: This refers to something that is
highly
profitable
or
financially
rewarding. It describes an endeavor or
opportunity that has the potential to
generate significant profits or financial
gains.
2. Inefficiency: This refers to the state or
quality of not achieving the desired or
optimal result in terms of productivity,
effectiveness, or resource utilization. It
implies that there is wastage or a lack
of effectiveness in a process or system.
3. Venture capital: A type of private
investment capital provided to earlystage, high-potential startups or small
businesses with significant growth
potential Venture capitalists typically
invest in exchange for equity or
ownership stakes in the company and
provide financial and strategic support
to help the business grow.
4. Scalability: The ability of a business or
business model to handle an increasing
amount of work, sales, or growth
without compromising its performance
or efficiency. A scalable business can
grow its operations and revenue
without proportionally increasing its
resources or costs.
Opportunity: In Search of Opportunity
An entrepreneurial opportunity
(hereafter opportunity) is a potentially
lucrative idea that is discovered or
created by an entrepreneurial entity
(Short, Ketchen, Shook and Ireland, 2010)
and can refer to new processes, products,
services. or markets, through the formation
of new means, ends, or means-ends
relationships (Eckhardt and Shane, 2003,
Gaglio, 2004).
Sources of Opportunity
➢ INTERNAL
• Innovation
• Creativity
➢ EXTERNAL
• Macromarket
• Micromarket
• Analysis
• Imitants in the markerplace
✓ To become an opportunity, an idea
needs to be evaluated and acted
upon.
✓ To become a business opportunity,
your idea needs to have a potential
economic value:
1. It needs to be able to create profit.
There have to be customers willing to
pay for the product
2. It should also be new and innovative
3. It also needs to be attractive and
desirable for people who mart buy it
There are two (2) ways to recognize
opportunities
1. You can discover them-Entrepreneurs
discover opportunities when they
search for them in existing markets
2. You can create them yourself and with
others-Erepreneurs
create
opportunities when they engage with
others in bouncing ideas back and
forth, and each time it becomes more
spectic what the user needs are and
how they are going to be solved
IMPORTANCE OF OPPORTUNITY RECOGNITION
1. Opportunity recognition is an essential
skill for an entrepreneur to have
2. Opportunity recognition is a process
through which entrepreneurs and
businesses identify potential methods
of growing their ideas or beginning new
ventures.
3. For entrepreneurs to make profits and
remain relevant, they must possess the
skills
to
recognize
possible
opportunities. Opportunity recognition
is an essential skill for an entrepreneur to
have.
4. Entrepreneurs with high opportunity
recognition skills can create new
products that satisfy the existing
market.
PROBLEMS are OPPORTUNITIES
Every single
opportunity.
social
problem
is
OPPORTUNITY ADAPTATION
an
MAJOR PROBLEM OF ENTREPRENEURS
1. Hiring Employees is another of the
major
issues
laced
by
the
entrepreneurs. It is one of the most
time-consuming activities and is
therefore often sidelined by the
entrepreneurs
SOLUTION: Look for candidates with prior
work experience and relevant soils which
reduces the work.
2. Time Management one of the most
highlighted issues and for modem
entrepreneurs, it is a difficult phase as
they need to perform multiple roles.
SOLUTION: Entrepreneurs can manage
time effectively by charting out an action
plan which sets goals of the business into
weekly, monthly, quarterly and yearly
objectives.
3. Choosing the product to sell most
difficult part for an entrepreneur
sometimes is deciding the kind of
product or service they want to sell
SOLUTION: This challenge can be
overcome by seeking counselling from
experts in the business and also by
performing a SWOT analysis.
Opportunistic adaptation has primarily
been regarded as an entrepreneurial
strategy focusing on rapid learning and
change in order to adapt to market
changes.
Opportunities
often
entrepreneurs are:
•
•
•
•
pursued
by
Small and uncertain
Do not require new technology
Barely visible
Unlikely to attract investment
Once in motion
•
•
Discover a larger opportunity
Otherwise, invisible
Can occur in the early
entrepreneurial endeavor
•
•
•
•
stages
of
Encounter unexpected opportunity
Can occur over a long period of
time
Business slowly evolves
Entrepreneur's abilities grow larger
opportunities grow
Opportunistic Adaptation requires:
•
•
Constant
Experimentation/Persistence
Open-mindedness/Agility
An IDEA is a GOOD OPPORTUNITY IF....
•
•
SIMPLE SOLUTIONS
5 Tips for Recognizing a Meaningful
Business Opportunity:
•
1. You've found a noteworthy market
inefficiency
2. Identify successful business models in
similar markets
3. A new approach to a tried-and-true
idea
4. It's something people are asking for
5. There is an opportunity to act quickly
•
•
It fills customers' needs.
You have the skills and resources to
start a business.
You can sell the product or service
at a reasonable price and still profit.
You can get your product or service
to customers before the window of
opportunity closes.
You can keep the business going.
OPPORTUNITY VIEWPOINTS
1.
2.
Product-pushing approach. (Not
recommended)
Demand-pull
approach.
(Recommended)
Listen to customers and study their
behavior to answer five fundamental
questions:
•
•
•
•
•
What do they want?
When do they want it?
Where do they want it?
How do they want it served or
provided?
How much are they willing to pay
for it?
Once you have answers, compare them
with your own abilities.
•
•
•
•
•
•
Do I have it, or can I get it?
When they want it?
Where they want it?
The way they want it?
For less than they're willing to pay?
If all five answers are yes, you have
a real business opportunity.
Example Opportunity by Steven Jobs:
•
•
•
•
•
•
•
•
•
•
Apple I (1976)-Jobs and Steve
Wozniak
Apple II (1979)-Apple II improved
and updated
The Macintosh (1984) the Mac
NeXT (1985) After fired from his own
firm
Pixar (1986) (26 Academy Awards)
sold for $7.6 billion
The Cube (2000) A major innovation
- absence of a cooling fan.
The iPod (2001)
The MacBook (2006)
The iPhone (2007)
The iPad Tablet (2010)
OPPORTUNISTIC ADAPTATION
•
•
•
•
Steven Jobs-Not a techie,
entrepreneur
Look for opportunity
And moved!
Improved on his improvements
an
PRIOR WORK EXPERIENCE
Prior experience or knowledge of
the entrepreneur is a heavily studied
characteristic in entrepreneurial behavior.
Startups
frequently
emerge
from
entrepreneurs with lots of acquired
knowledge or experience within the
subject field.
Prior work experience improves:
1. Interpersonal skills
2. Critical and creative thinking skills
3. Leadership skills
ENTHUSIASTIC
INEXPERIENCE
AND
SOMEWHAT
Enthusiasm: Having a positive attitude in
the workplace can help with potential
promotions.
INVENTOR AS ENTREPRENEUR
An inventor is someone who is focused
almost solely on creating and building a
product, process, or service that can solve
the problems that someone might have.
Characteristics of an Inventor
1. Visionaries
2. Focused
3. Tunnel-visioned
4. Passionate
5. Courageous
6. Passionate
7. Hard-working
8. Forward-thinking
9. Love collaboration
10. Leader
ENTREPRENEUR
Creates a firm to realize their idea, known
as entrepreneurship, which aggregates
capital and labor in order to produce
goods or services for profit
Entrepreneur and Inventor – COMPARISON
INVENTOR
Possesses a high
degree of technical
expertise
Laser focus in
providing a solution
Works in an
autonomous
environment
Normally visionary,
but can be singlefocused
The inventor creates
ENTREPRENEURS
The entrepreneur is
adaptive and
versatile
Flexible & nimble,
responding to
changing priorities
Thrive on
collaboration
Coachable,
humble, actively
solicits input from
past
The entrepreneur
leads
Does cutting-edge
research
Establishes proof of
concept
Identifies & builds
economically
viable networks
Establishes teams,
channels, and
markets
MARKET AND COSTUMER
•
•
•
•
Market - a place where parties can
gather to facilitate the exchange of
goods and services.
Customer - are individual or business
that purchases another company's
goods or services.
Market Understanding - Collecting
data and turning it into insights for
businesses to gain a competitive
advantage
Market Research - It is the process by
which companies collect data about
customers and markets to help them
construct a better marketing strategy
UNDERSTANDING MARKETS AND CUSTOMERS:
THE BENEFITS OF MARKET RESEARCH
As a marketer, collecting helpful
information and good data is essential.
Good research can:
•
•
•
•
•
•
Help
companies
make
better
marketing decisions.
Reduce risks.
Help companies identify their target
market and customers.
Help companies understand their
customers' wants and needs.
Help companies beat competitors to
their target market and customers.
Help companies sustain a competitive
advantage.
TYPES OF CUSTOMERS
6 Common Types of Customers
1. New Customers are those who have
just joined your customer base for the
first time
2. Potential Customers also known as
"lockers" or "prospects" aren't actually
customers yet They're gathering
information and exploring their options
before making a buying decision.
3. Impulse Customers - make buying
decisions in a snap.
4. Discount Customers are the polar
opposite of impulse buyers.
5. Angry Customers they may be difficult
to handle, unhappy customers are a
valuable source of feedback.
6. Loyal Customers are the gold standard
for any business. They love your
company and your product They make
repeat purchases year after year.
CUSTOMER PERSONAS and JOURNEY MAP
To be an entrepreneur is to think differently.
While
most
people
seek
refuge,
entrepreneurs take risks.
They don't want a job; they want to create
jobs. Their goal isn't to think outside the box
as much as it is to own the box.
Entrepreneurs don't follow the market, they
define the market.
This bold and seemingly backward way of
thinking I refer to as the Entrepreneur Mind.