Entrepreneurship 9
Entrepreneurship
Entrepreneurship refers to the concept of
developing and managing a business
venture to gain profit by taking several
risks in the corporate world.
Why entrepreneurship is important?
1. Entrepreneurship creates employment
2. Entrepreneurship improves the quality of life
3. Entrepreneurship contributes to a more equitable
distribution of income and therefore eases social unrest.
4. Entrepreneurship utilizes resources for national
productivity.
5. Entrepreneurship brings social benefits through
Who are entrepreneurs?
The word entrepreneur is borrowed from the French
language. It is derived from ‘entreprendre’ meaning to
‘undertake’.
One who organizes and manages any enterprise, especially
one involving considerable risk.
A person who sets up a business or businesses, taking on
financial risks in the hope of profit.
Characteristics and Qualities of a
Successful Entrepreneurs
• Integrity - someone once said, “Right is
right even if no one is doing it, and wrong
is wrong even if everyone is doing it”.
Successful entrepreneurs are rated “being
honest with everyone” the number one
factor of their success
Characteristics and Qualities of a
Successful Entrepreneurs
• Self –discipline – to become a successful
entrepreneur you have to be highly disciplined. You
have to develop the ability to get things done, even
when you don’t feel like it. Luckily, you learn selfdiscipline with the right information and conscious
effort.
Characteristics and Qualities of a
Successful Entrepreneurs
People skills - another critical factor among
successful entrepreneurs is having good
people skills. You should make an effort to
genuinely like, respect, and appreciate other
people. The ability to win people over will
carry you far in all walks of life, especially your
own business
Characteristics and Qualities of a
Successful Entrepreneurs
Strong work ethics – there’s no substitute for
hard work when it comes to becoming a
successful entrepreneur. Most people want
to do the fastest and easiest solution when it
comes to work. To be successful, dedicate
yourself to persistent, productive, and old
fashioned hard work
Characteristics and Qualities of a
Successful Entrepreneurs
Passion – you need to be passionate
about your business. Loving your
business will also make it easier to get
through the start-up phase, and other
future obstacles.
Characteristics and Qualities of a
Successful Entrepreneurs
Strong leadership qualities – being able to
communicate effectively, motivate others, sell
your ideas, and be decisive, are just a few
qualities of a good leader. In order to become
a successful entrepreneur you must dedicate
yourself of improving your leadership and
abilities.
Characteristics and Qualities of a
Successful Entrepreneurs
• Competitiveness – competition is
everywhere. In business, it is the
survival of the fittest. Play to win, but
never sacrifice your integrity for the
sake of a few bucks.
Characteristics and Qualities of a
Successful Entrepreneurs
Well-organized – One of the main
reason why small businesses fail is
lack of organization. Everyone can
learn organization skills with enough
hard work, practice and persistence.
Characteristics and Qualities of a
Successful Entrepreneurs
Sales ability- The ability to convince others to
make a conscious decision is a key of
becoming a successful entrepreneur “People
don’t buy for logical reasons. They buy for
emotional reasons”. Being able to appeal to
other people emotions is the key to selling
your ideas, products or services.
Personal Entrepreneurial
Characteristics (PECs)
Clusters and Behavioral
Indicators
Personal Entrepreneurial Characteristics
Clusters and Behavioral Indicators
I. Achievement Cluster
II. Planning Cluster
III. Power Cluster
I. Achievement Cluster
1. Opportunity-Seeking. An entrepreneur is said to
be a good opportunity seeker if he sees and acts
on new business opportunities and seizes unusual
opportunities to acquire financing, equipment,
land and workspace or assistance
I. Achievement Cluster
Persistence. A persistent individual is one who:
a. takes different actions to overcome an obstacle
b. makes personal sacrifice or spends
extraordinary efforts to complete a job
c. sticks to his judgments in the face of opposition
or early lack of success
I. Achievement Cluster
Commitment to the Work Contract. The true-blue
entrepreneur is committed to the work that he
has agreed to do. He exerts extra effort to satisfy
the costumer. In the end, if he fails he would take
full measure of the blame. But if he succeeds, he
expects to get full credit.
I. Achievement Cluster
Risk Taking. A successful entrepreneur takes
calculated, moderate, or reasonable risks where
he perceives the chances for winning to be good.
I. Achievement Cluster
Demand for Quality and Efficiency. A true
entrepreneur is not satisfied with mediocre work.
He sets a high standard of performance. He strives
to do things better, faster, or cheaper
II. Planning Cluster
6. Goal-Setting. An entrepreneur always thinks not
only of what he wants to accomplish day-to-day
but also in one, two, or five years from now. In
other words, he sets clear and specific short-andlong term objectives.
II. Planning Cluster
7. Information-Seeking. As a careful planner, the
successful entrepreneur always makes it a point to
seek information that is relevant and useful to his
present or future business.
II. Planning Cluster
8. Systematic Planning and Monitoring. The
successful entrepreneur does systematically plans
and monitors his activities and performance. He
develops and uses alternatives and monitors his
progress. He is ready to switch to alternative
strategies when necessary to achieve his goals.
III. Power Cluster
9. Persuasion and networking. A persuasive person who
readily establishes a network or personal business
contracts around him usually makes a good
entrepreneur. In order to persuade others, the
entrepreneur uses deliberate strategies. In order to
accomplish his business objectives he uses his network
of useful friends and acquaintances
III. Power Cluster
10.Self-Confidence. The entrepreneur exudes selfconfidence. He strongly believes in himself and his
own abilities. No challenge is too difficult nor is a
task too big that the entrepreneur would indulge
in self-doubt. When he enters a business, it is
because he is confident that the business would
be successful and profitable.
MANAGEMENT
FUNCTIONS OF
ENTREPRENEURS
MANAGEMENT FUNCTIONS OF
ENTREPRENEURS (POSDiCon)
Planning
Organizing
Staffing
Directing
Controlling
MANAGEMENT FUNCTIONS OF
ENTREPRENEURS
PLANNING • Planning is the most basic
management function that tells you where to go
and how to get there. It is like preparing a
blueprint of what is to be done, when, how, and
by whom it should be done.
Classification of Plans:
1. Standing plans. These plans are used repeatedly and
cover policies, procedures, and rules.
2. Single-used or single-purpose plans. These plans are
essentially one-shot or non repetitious. This is used
within a relatively short period of time, they comprise
programs, projects, and budgets.
Types of Planning:
1. Tactical Plan (Long-range) prepared by top-level
management.
2. Strategic Plan (intermediate range) prepared by
middle-level management.
3. Operational Plan (short-range) prepared by lowerlevel management.
MANAGEMENT FUNCTIONS OF
ENTREPRENEURS
ORGANIZING • Organizing involves identifying
the specific activities necessary to achieve the
enterprise goals, clustering the activities into
departments or job positions, and designating
the personnel to head and compose each
department.
MANAGEMENT FUNCTIONS OF
ENTREPRENEURS
ORGANIZING • Organizing involves identifying
the specific activities necessary to achieve the
enterprise goals, clustering the activities into
departments or job positions, and designating
the personnel to head and compose each
department.
Types Of Organization Structure
A. LINE ORGANIZATION
B. LINE AND STAFF ORGANIZATION
C. FUNCTIONAL STAFF ORGANIZATION
D. COMMITTEE
A. LINE ORGANIZATION
B. LINE AND STAFF ORGANIZATION
C. FUNCTIONAL STAFF ORGANIZATION
D. COMMITTEE
Another common organizational form used in
situations
where group participation and
decision are required. These are created to
undertake special activities rather than routinary
activities.
ORGANIZATIONAL CHART
is a diagram or drawing that shows the
organizational relationships of the positions
and their corresponding authority,
responsibility, and accountability. It is a
diagrammatical form which shows the
important aspects of an organizational
structure.
Staffing
✓It is the process of recruiting, selecting and
training of men. It means putting the right men
on the right job.
✓This process involves proper and effective
selection, appraisal and development of
personnel to do the jobs and fulfill the roles in
the structure.
Recruitment
is the process of encouraging,
inducing or influencing
applicants to apply for a certain
vacant positions.
Selection
is the process of getting the
most qualified applicant from
among different job seekers
Training
is the systematic development
of the attitude, knowledge,
behavior patterns for the
adequate performance of a
given job or task.
How to do staffing?
✓Asses your workload
✓ Study jobs in the company
✓Examine your present personnel.
✓Design an improvement plan
DIRECTING
Directing involves putting your plans
into effect. How to influence your
subordinates who have distinct needs
and a unique personality, to contribute
to the attainment of the firm’s
objectives is the principal concern of
directing.
Directing includes the following:
➢Motivation
➢Leadership
➢Communication
CONTROLLING
The function of controlling is to
make sure that what is done in
the enterprise conforms to
what has been planned.
Controls can be classified as:
➢Organizational controls are those that
measure the over all performance of the
organization.
➢Operational controls evaluate day to day
activities and spot areas where you may
need to take corrective actions
Legal Forms of Business
Legal Forms of Business
Sole Proprietorship
Partnership
Corporation
Cooperative
Sole Proprietorship
A sole proprietorship is a business unit owned and
managed by only one person. It is the simplest and
most common form. Most small businesses start as sole
proprietorships. Here, you and the business are
essentially one. You, as the sole proprietor owns all the
assets. As such, you will exclusively enjoy the benefits to
be derived from the business. If you decide to become a
sole proprietor, you do not need to consult anyone on
matters related to setting or running the business.
Partnership
Under this business form, two or more
persons are owners of the business. The
owners define their rights and duties as
partners in the business through a
partnership agreement.
Corporation
This business form is initiated
by individuals called
incorporators, numbering
from a minimum of five to a
maximum of fifteen.
Cooperative
A cooperative is owned by twenty-five or
more individuals who, like in a corporation
buy shares in the business. However, unlike a
corporation, each member of the cooperative
is entitled to only one vote on matters
regarding the business regardless of the
number of shares he or she has bought. In
case of losses, responsibility for paying
liabilities is also borne equally by the
members.
Cooperative
ADVANTAGES
DISADVANTAGES
Lower Cost
Equal voting rights
Equal voting rights
Shared responsibility
Limited liability