ENTREPRENEURSHIP

CHAPTER 1 MODIFIED T/F

ECONOMIC DEVELOPMENT a scheme aimed at improving the living standards of the nations citizenry.

2. To organize production by buying and combining inputs like materials and labor 3. To decide on the rate of output, in the light of his expectation about demand 4. To bear the risk inherent to the venture INNOVATION the introduction of a new

Elements to achieve Economic Development: 1. Human resources 2. Natural resources 3. Capital formation 4. Technology ECONOMIC efficient elements. ENTREPRENEURSHIP economic activity of a person who starts, manages and assumes the risk of a business enterprise. Entrepreneurs concern: 1. Identifying an economic need 2. Assembling resources required 3. Assuming risk Entrepreneurs task is to provide the ff: 1. Products and services for customers and producers 2. Employment 3. Taxes 4. Demand for suppliers products and services 5. Training facilities for future entrepreneurs Entrepreneurs specific functions: 1. To supply the necessary capital GROWTH of the effective and

method, procedure, custom, device, among others. Four stages of a business: 1. Prestart-up stage happens when the entrepreneur starts to question the

feasibility of an idea, product or service.

2. Start-up stage feasibility must be established and verified. 3. Early growth stage follows after establishing feasibility. 4. Late growth stage the skilled manager begins to take over. Example of Innovations: 1. Offering business services during

utilization

various

resource

Sundays and holidays 2. Manufacture and sale of new products 3. Selling on a deferred payment scheme

CHAPTER 2 IDENTIFICATION SMALL BUSINESS may be defined by using any of the two approaches: market share or total assets. MARKET SHARE APPROACH small business may be defined as one which is independently owned and operated and which is not dominant in its field of operation.

INDEPENDENTLY OWNED means ownership is by a private individual, a partnership, or a corporation. NOT DOMINANT indicates that a small business does not control a sizable share of its market. Market share approach: MICROENTERPRISES less than 50,000 COTTAGE BUSINESS 50,000-500,000 SMALL BUSINESS 500,000-5M MEDIUM BUSINESS 5M-20M LARGE BUSINESS 20M and above Total assets approach: MICROENTERPRISE 1.5M and below SMALL BUSINESS 1.5M-5M Types of Small Business: 1. Manufacturing 2. Service 3. Wholesaling 4. Retailing 5. General construction firms Characteristics of Small Business: 1. Independent management 2. Small Capital 3. Mostly local operation Economic importance of Small Business: 1. Providers of economic opportunities for entrepreneurs 2. Providers of products and services to consumers 3. Suppliers of products and services to other businesses

4. Distributors of products and services of other businesses 5. Supporters of government 6. Providers of employment Options to improve economic lot: 1. Be an employee 2. Be a professional 3. Be a SBO Advantages of SB: 1. The opportunity to gain control over his own destiny 2. The 3. The opportunity opportunity to to reach reap his full potential unlimited profits 4. The opportunity to make a contribution to society and receive recognition for his efforts Disadvantages of operating SB: 1. Uncertainty of income 2. Risk of losing your entire capital investment 3. Lower quality of life until the business gets established 4. Complete responsibility 5. Having to serve undesirable customers 6. Paperwork and other chores 7. Long hours and demanding work condition

CHAPTER 3 FILL IN THE BLANKS ETHICS wrong. the study of moral obligation

involving the distinction between right and

BUSINESS ETHICS the rules about how entrepreneurs ought to behave. Factors influencing ethical behavior: 1. Situation 2. Reward system 3. Individual differences Ways of encouraging ethical behavior among employees: 1. Adaption of code of ethics 2. Institution of rewards and punishments concerning ethical behavior 3. Adaption of internal programs for resolving conflicts 4. Creation of ethics review committees 5. Provision employees 6. Top management support CODE OF ETHICS the a formal document adapted of training in ethics for

Entrepreneurs responsibility to employees: 1. Workplace safety 2. Quality of life issues 3. Avoiding discrimination 4. Preventing sexual harassment

CHAPTER 4 MATCHING TYPE Factors that determine success or failure in an entrepreneurship: 1. The environment 2. The personality of the entrepreneur ENVIRONMENT FACTOR - entrepreneurships will survive and grow only in economic environments of free enterprise. Classification of economic environment: 1. Full supportive of entrepreneurships (easy) 2. Moderately supportive of entrepreneurships (less easy)

indicating

entrepreneurships

principles of appropriate behavior. PUNISHMENT dismissal, reprimand. REWARDS may be given in the form of cash gifts, promotion, or citation. ETHICS REVIEW COMMITTEE this committee provides advice to the entrepreneur and his staff concerning sensitive ethical issues. Consumer rights: 1. The right to be safe 2. The right to be informed 3. The right to choose 4. The right to be heard could take the form of and

3. Not supportive of entrepreneurships (hard) PERSONALITY pattern of characteristics that distinguishes one person from another: it includes the persons traits, values, motives, genetic blueprints, attitudes, emotional reactivity, abilities, self-image, intelligence and visible behavior patterns. Six personality types: 1. Realistic prefers activities involving aggressive behavior and physical exertion requiring skill, strength and coordination. Ex: farming and mining

demotion,

suspension

2. Investigative methodical,

and

analytical, precise.

curious, Ex: crime What motivates people to become entrepreneurs: 1. The desire to be ones own boss 2. The desire for financial rewards 3. The desire to create ones own job with and security 4. The desire to improve ones quality of life. Desire to be ones own boss Ex:

investigator and arson investigator 3. Artistic expressive, nonconforming, original 4. Social and enjoys introspective. working songwriter and novelist helping others and purposefully avoids systematic activities involving tools and machinery. Ex: social worker 5. Enterprising enjoys verbal activities to influence others and to attain power and status. Ex: manager and entrepreneur 6. Conventional enjoys the systematic manipulation of data, filing of records or reproducing materials. Ex: accounting and finance Characteristics of entrepreneurs: 1. Drive this to trait pursue pushes his the entrepreneur chosen

course without relenting even in the face of adversity. 2. Thinking ability solving problems and making decisions 3. Human relations ability ability to relate to the customer, employee and the third party with interest in the firm 4. Ability to communicate - ability to understand and be understood 5. Technical knowledge 6. Reasonable risk taker 7. Self-confident believes in his ability 8. Goal setter 9. Accountable 10. Innovative