Final entrep ppt.


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Final entrep ppt.

  2. 2. 83
  3. 3. DEFINITIONS OF AN ENTREPRENEUR • Joseph Schumpeter : “ Individuals who introduce something NEW in the market or economy” 84
  4. 4. Joseph Alois Schumpeter (1934) Entrepreneurship is seen as new combinations including the doing of new things or the doing of things that are already being done in a new way. New combinations include 1) introduction of new good, 2) new method of production 3) opening of a new market 4) new source of supplies 5) new organizations. Austrian-Hungarian- American economist and political scientist. 85
  5. 5. Entrepreneurship research seeks to understand how opportunities to bring into existence future goods and services are discovered, created, and exploited, by whom, and with what consequences. an Indian-born American and British structural biologist, who shared the 2009 Nobel Prize in Chemistry with Thomas A. 86
  6. 6. is more than a word. It is a mission. capacity for innovation. investment and expansion of new markets products and techniques invest resources to make something unique. 87
  7. 7. 88 Ang "ENTREPRENEURSHIP" ay isang siyensya at pag- aaral ng pangangalakal ng mga bagay bagay at paglilingkod sa maaaring makapagpaunlad ng kabuhayan ng isang tao. “QUALITY OF LIFE”
  8. 8. DEFINITIONS OF AN ENTREPRENEUR • Derived from French word Entreprendre • Peter F Drucker: “One who considers the changes that take place in market as an opportunity to do business” 89
  9. 9. DEFINITIONS OF AN ENTREPRENEUR • New encyclopaedia: “An individual who bears the risk of operating business in the face of uncertainty about the future conditions” 90
  10. 10. ENTREPRENEURSHIP IS ABOUT • Opportunity identification • Ideas generation • Risk taking (Calculated risk) 91
  11. 11. ENTREPRENEURSHIP IS ABOUT • Wealth creation • MONEY : Cash flow and Profitability 92
  12. 12. ENTREPRENEURSHIP IS ABOUT • Discipline • Growth and sustainability • Falling and rising 93
  14. 14. 95
  15. 15. Steve Welch is a Pennsylvania businessman who ran as a Republican for the United States Senate in the 2012 election, losing to Tom Smith in the primary.[1] Welch was endorsed by Governor Corbett, State Republican Party, Philadelphia Inquirer[2] and Pittsburgh Post Gazette.[3] Welch was raised in Chester County, Pennsylvania, where he still resides in the borough of Malvern.[4] Welch, a former Democrat, graduated from Unionville High School and earned an engineering degree from Penn State University.[5] In 2001, he founded a pharmaceutical company, Mitos, that made flu vaccines more efficient.[5][6] Welch sold Mitos to Parker Hannifin in July 2007. He later founded two other companies, DreamIt Ventures, which helps new businesses get started, and KinderTown, an educational technology business.[5] In 2013 Welch sold KinderTown to Demme Learning. Forbes ranked DreamIt Ventures the number 3 accelerator in the world.[7] 96
  16. 16. ENTREPRENEURS ARE BORN OR MADE ? • There is an entrepreneur side of every human being • On a daily basis we are consciously or unconsciously doing either, some or all of these;  Conceptualizing  Selling  Buying  Negotiating. 97
  17. 17. . • Conceptualizing, selling, buying and negotiating are all rudiments of business therefore if we do any of these every now and then, we may not be wrong to simply say that by nature every man or woman has business basics in him or her. 98
  18. 18. IT IS IN YOU 99
  19. 19. IT IS IN YOU • Entrepreneurship is in everybody • In some people the entrepreneur side or what may be referred to as an entrepreneurial spirit or nature must be carefully unlocked or positively energized to manifest entrepreneurship. • One of the objectives of this seminar is to unlock and energize the entrepreneurial nature of everyone in attendance today. 100
  20. 20. IT IS IN YOU 101
  21. 21. ENTREPRENEURSHIP • The key driver of job creation and economic growth. • It provides many people with career oppoprtunities that better fit their preferences than waged employment. • It is a response by the significant numbers of people to job losses in the current global financial crisis. 102
  22. 22. Economic Development 1. Human resources (labor supply, education, discipline, motivation) 2. Natural resources (land, fuel, climate) 3. Capital formation (machines, factories, roads) 4. Technology (science, engineering, management, entrepreneurship) ELEMENTS: 103
  23. 23. Economic Development • The improving economy has a lot to do with the Small Medium Enterprise’s impressive performance. • In the last five years, the MSME sector accounted for about 99.6% of the registered businesses in the country by which 63% of the labor force earn a living. • Around 35.7% of the total sales and value added in the manufacturing come from MSMEs as well. 104
  24. 24. What is an entrepreneur? Entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative. The entrepreneur leads the firm or organization and also demonstrates leadership qualities by selecting managerial staff. Management skill and strong team building abilities are essential leadership attributes for successful entrepreneurs. Entrepreneurs emerge from the population on demand, and become leaders because they perceive opportunities available and are well-positioned to take advantage of them. An entrepreneur may perceive that they are among the few to recognize or be able to solve a problem. 105
  25. 25. What is an entrepreneurship? Entrepreneurship defined as: "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". 106
  26. 26. Exercise 1 • Self-Assessment 107
  27. 27. WORKSHOP If you have been able to answer “yes” to 18 of the above questions then you have the potential to successfully start your own business. If you answered less than 18 questions “yes” then look for supplemental help in the areas you answered “no” to by improving your own skills, hiring help or finding a business partner that is skilled in that area. It takes a variety of different skills to successfully run a business, so look at each question to which you answered “no” as an opportunity for improvement. 108
  28. 28. Types of Entrepreneur Social entrepreneur – motivated by desire to help, improve and transform social, environmental, educational and economic conditions Serial entrepreneur – comes up with new ideas and starts new business Lifestyle entrepreneur – places passion before profit when launching a business in order to combine personal interest and talent with ability to earn a living. 109
  29. 29. 1. Social Entrepreneurship (Panlipunan) 110 2. Business Entrepreneurship (Pangkabuhayan) 3. Techno Entrepreneurship (Teknolohiya)
  30. 30. 111 Driving Economic Growth and Prosperity
  31. 31. NGO (non- profit) NGO (for-profit) Social Enterprise Social Business Business Enterprise CSR Profit Maximization Business (PMB) Business Enterprise 112 Non-Government/al Organization
  32. 32. • “Any creative and innovative solution applied to solve social problems” (Mohammad Yunus, 2007) – It involves social mission – Profit and/or entrepreneurial processes 113
  33. 33. 114
  34. 34. • “Search for approaches to move poor people out of poverty beyond welfare-based safety nets.” 115 social entrepreneurs are driven not by money but by content, risk‐taking, implementing innovative ideas, fulfilling social missions.
  35. 35. 116 Painters, actors, musicians, writers and all other cultural professionals always look beyond the usual, they create and take actions, use their imagination to make something new. It is important to outline that entrepreneurs are those who not only invent and implement an innovative idea, but bring it to an economically successful end, considering the market viability and the positive financial impact on community members.
  36. 36. • Mother Teresa did what no other person has done before – to take care of the poor, destitute and lepers 117
  37. 37. 118
  38. 38. 119
  39. 39. 120 Social entrepreneurship overcomes the gap between the business and the public sectors, as it is connected to the “non‐profit” or the “third” sector, as well as to the concept of the “social economy”, with emphasis on objectives to serve communities and society rather than generating a company’s profit.
  40. 40. 121 Derived from the French entreprendre, " to undertake". Someone who is willing and eager to create a new venture in order to present a concept to the marketplace. Entrepreneur –
  41. 41. COOPERATIVE ? Is it a Social Entrepreneurship? 122
  42. 42. • It’s about the study of systems, structure, and staffing to make a large corporation stay competitive, innovative, and profitable on a sustainable basis. 123
  43. 43. Start Growth Decline Survival / Failure 124
  44. 44. No longer excellent!... • In 1983, there was the book In Search of Excellence by Tom Peters and Waterman. It sold 6 million copies. Then... • Something went wrong... 125
  45. 45. • 33% of the “Excellent” Companies vanished • Too big to fail companies • Where are they now?: Washington Mutual CAP educational plan Pacific Bank Banco Filipino 126
  46. 46. Vanishing giants Dinosaurs of the corporate world 127
  47. 47. • Keeping the Sense of Mission alive as you grow • Re-instilling customer/product vision in every employee • Fostering high-speed innovation • Making self-inspired behavior the organization standard 128
  48. 48. Entrepreneur (Self) IDEA REALITY Resources Opportunity 129
  49. 49. ORIGINATOR OPERATOR ORGANIZERimplementor 130 (nagbigay simula) (nagbibigay sigla) (tagapagpatupad) (namamahala/ Nagpapalakad) (nagtatag) Nagsimula ng pagbabago)
  50. 50. Growth (Pag-unlad) Differentiation (Pagkakaiba) Strategic direction matalinong pagplaplano 131
  51. 51. • 90% of the world’s jobs are created by entrepreneurs • Source of new products and innovation • In the third-world countries, the entrepreneurs keep the sagging economies alive • It’s the entrepreneurs – not the central bank – that keep the economy moving • Finally... 132
  52. 52. ECONOMIC GROWTH 133
  53. 53. 134 Millions have done it . . . millions are dreaming of doing it! Why not become your own boss? Individuals are increasingly choosing to go into business, start their own company, work for themselves and create their own job as an alternative means of taking the future into their own hands.
  54. 54. 135
  55. 55. Other trivia: • Battle of the sexes: – 51% of all businesses are started by women – 55% of all businesses are run by men – Of the nascent(growing) businesses, 60% are run by women 136
  56. 56.  honesty ( katapatan) 137  courage ( lakas ng loob)  integrity (integridad/ dangal)  punctuality ( maagap)  self-discipline  humility
  57. 57.  Reasonable risk –taker. enjoy challenges. But they are careful and calculating. ( makatuwiran pakikipagsapalaran)  Self –confident - have a strong faith in their abilities. Strong belief, affirmative thinking or optimistic. They always think SUCCESS!!! Nothing is Impossible. 138
  58. 58.  Hardworking - Successful people always attribute their success to hardwork. Like Thomas A. Edison, said that success is 99 percent of perspiration and 1 percent inspiration. 139
  59. 59.  Innovative (Malikhain)- Entrepreneurs are creative. They do things in new and different ways. 140
  60. 60. Essential qualities of a Leader:  Selfless dedication (lubusang paglilingkod) 141  Purpose and vision (magandang layunin at adhikain) Courage (tibay at lakas ng loob) Conviction (matuwid na pagpapasya) Enthusiasm (sigla at interes sa ginagawa) Integrity (dangal) Tact (maayos na pakikitungo) Hardwork (masipag)
  61. 61. Entrepreneurs are positive thinkers. They think of success and bright sides. Success begets success. Dr. Charles Flory, an american physiologist, said that wealth does not always come to the most intelligent or to the most ambitious individuals, but those individuals who think MONEY….. 142 But being an entrepreneur you always think SUCCESS.
  62. 62.  - Entrepreneurs make decisions. They cannot avoid this. Being creative and innovative, they always make decision on how to improve their products how to create new markets, how to increase consumers satisfaction or how to maximize profits.  The success of their business depends on their ability to make the right decisions. 143
  63. 63. 1.identifying the problem 2.gathering the data about the problem 3.analyzing the data 4.formulating alternative solutions 5.selecting the best solutions and 6.implementing the solution/ decision. 144
  64. 64. The Entrepreneur must possess the following managerial skills: 1. Ability to conceptualize and plan. The entrepreneur must view all the aspect of the business , such as product, price, cost, inventory. He must be able to plan for the total operation of the business. He has the ability to foresee future problems of his business is an excellent asset. 145
  65. 65. 2.Ability to manage others.. 146  Management is getting things done by others. as business grows, more people are needed. The entrepreneur must be able to organize work properly so that his employees can perform their jobs efficiently and effectively.  Good human relations and communications are very important for the entrepreneur.  By letting others achieve the objectives of the enterprise
  66. 66. The entrepreneur is a generalist. When a business is still small, The owner does everything: Clerk, salesman and manager. he should be an expert on time management. he should acquire basic training in small business management and specialized courses in accounting, finance, marketing and personnel relations. 3. Ability to manage time and to learn. 147
  67. 67.  A real entrepreneur does not actually stop learning.  He can do this my reading, attending seminars, or enrolling in college 148
  68. 68. 149
  70. 70. 151 • a great deal of INDEPENDENCE and SELF-DISCIPLINE; • a good measure of SELF-CONFIDENCE; • an above-average aptitude for DECISION MAKING and PROBLEM SOLVING; • a propensity for RISK TAKING; • FLEXIBILITY and ORGANIZATIONAL SKILLS;
  71. 71. 152 a great deal of PERSEVERANCE, unflagging TENACITY; • a great CAPACITY FOR WORK and boundless ENERGY; • a great deal of SELF- CONTROL and TOLERANCE; • OPTIMISM and ENTHUSIASM;
  72. 72. 153 • LEADERSHIP skills and a DYNAMIC personality;  a facility for COMMUNICATION, PUBLIC RELATIONS and SALES  OPEN-MINDEDNESS and FREE SPIRITEDNESS.
  73. 73. BUSINESSMAN ENTREPRENUER one who organizes, manages, and assumes the risks of a business or enterprise a man who transacts business 154
  74. 74. Some Insights “I can buy you everything you want but I cannot buy you knowledge. The best I can do is to give you everything you need to acquire that knowledge. And that, I have given you. The rest is up to you.” “The rest is up to me” … those words hit me like a ton of bricks. “ “Belief … passion … and knowledge—a few important values that I was to bring back to the Philippines.” “Be humble. Don’t look at the money, but rather, look at what you really want to do and the amount of learning and growth you would get. Vivienne Tan – Daughter of Lucio Tan155
  75. 75. Portrait of an Entrepreneur Exercise 2 Identify the part of your body manifest the portrait of an entrepreneur . Why ? 156
  76. 76. TOP 3 BODY PART/S WHY 1 Brain For generating Ideas 2 EAR /EYES For listening to the advice of those w/ knowledge & experience. For seeing opportunities 3 Heart For the passion, commitment & perseverance EXERCISE 2 Identify the part of your body manifest the portrait of an entrepreneur. Why? 157
  77. 77. Portrait of an Entrepreneur Body Parts: Sharp eyes- for seeking out opportunities Wise eyes- for establishing a vision and setting goals Wrinkles- for smiling during the fun times Brain- for generating creative, innovative ideas Ear- for listening to the advice of those with knowledge and experience Glands- for adrenaline: for the rush / for sweat: during hard work Neck- for sticking out and taking calculated risks Arms- for hugging members of the team that will determine your success Fingers-for counting the positive learning opportunities from any mistakes, failures 158
  78. 78. Portrait of an Entrepreneur Body Parts: Heart- for the passion, commitment and perseverance to stick with it Knee- for bending and praying Strong foot- for kicking butt when needed Fleet feet- for moving ahead, keeping ahead and walking paths of adventure Strong legs- for leaping over the many barriers and obstacles you will encounter Deep pockets- to cover the unexpected Hands- for shifting gears when necessary Backbone- for the confidence to believe in one's self and to move ahead Mouth- for effective communication and being able to sell an idea Nose- for smelling signs of trouble and forseeing possible problems Good ear- for keeping to the ground and sensing change and opportunity 159
  79. 79. Characteristics Exercise 3 What are the characteristics you possess in relation to your identified body part in helping you become entrepreneur ? 160
  80. 80. TOP 3 BODY PART/S WHY 1 2 3 EXERCISE 2 Identify the part of your body manifest the portrait of an entrepreneur. Why? EXERCISE 3 What are the characteristics you possess in relation to your identified body part in helping you become entrepreneur? And describe your characteristics? TOP 3 Characteristics Description 1 2 3 161
  81. 81. EXERCISE 3 • What are the characteristics you possess in relation to your identified body part in helping you become entrepreneur? And describe your characteristics? 162
  82. 82. TOP 10 CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS 1. Creativity — have the ability to look at problems and needs from different angles and “think outside the box” 2. Goal-orientated — constantly set goals for themselves that challenge their creativity and strengths 3. Hard-working — willing to work long hours to complete tasks, go the extra mile 4. Commitment — remain focused on an idea or task 5. Willing to take the initiative — always want to be first, do not sit back and wait for others to take the initiative 163
  83. 83. TOP 10 CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS 6. Spirit of adventure — willing to try something new and different, pioneer 7. Positive attitude — do not let minor setbacks hinder their progress toward their overall goal 8. Self-confident — believe in themselves and their idea 9. Persistence — keep working at a problem until they solve it or find an alternative 10. Need to achieve — strong desire to accomplish something in life and leave a legacy 164
  84. 84. Characteristics Strong need to achieve and seek personal accomplishment Accept personal responsibility for successes and failures Believes in ability to achieve goals Self confidence and self reliance High drive and energy levels Strong sense of commitment Willing to take calculated risks Innovative, creative and versatile Hard working and energetic Tolerates uncertainty Spirit of adventure Independent 165
  85. 85. AN ENTREPRENEUR’S CREED 1. Do what gives you energy—have fun. 2. Figure out how to make it work. 3. Anything is possible if you believe you can do it. 4. If you don’t know it can’t be done, then you’ll go ahead and do it. 5. Be dissatisfied with the way things are—and look for ways to improve them. 6. Do things differently. 7. Businesses can fail. Successful entrepreneurs learn from failure—but keep the tuition low. 8. It’s easier to beg for forgiveness than to ask for permission in the first place. 166
  86. 86. AN ENTREPRENEUR’S CREED 9. Make opportunity and results your obsession—not money. 10. Making money is even more fun than spending it. 11. Take pride in your accomplishments—it’s contagious. 12. Sweat the details that are critical to success. 13. Make the pie bigger—don’t waste time trying to cut smaller pieces. 14. Play for the long haul. It’s rarely possible to get rich quickly. 15. Remember: Only the lead dog gets a change in scenery. 167
  87. 87. Characteristics Responsible Goal oriented Persistent Positive attitude Takes initiative 168
  88. 88. Roles The essence of entrepreneurship is the creation and building of business to exploit a market opportunity. To carry out their directive successfully, the entrepreneur has to take on the following roles: the inventor, who comes up with new products or processes, often combining previously To ensure their success, all businesses, big or small, perform numerous tasks. Because of limited financial and human resources, sometimes very limited, it is often the owner of a small business or self- employed worker who is in charge of both managing and carrying out all business activities. At one point, the owner will be acting as the director of finance, and later accountant or bookkeeper. At another time the role will be one of director of sales and marketing and then sales person and buying. Being a self-starter and taking initiative, the entrepreneur will have to take on many roles to ensure their success. 169
  89. 89. Roles These roles are as follows: •Organizer • Inventor • Innovator • Banker • Analyst • Producer • Promoter • Manager • Administrator • Secretary • Designer • Janitor •Mother and Father 170
  90. 90. Skills Exercise 4 • What are the skills that you already have or needs to improve or needs to acquire to fulfill your dream to become an entrepreneur ? 171
  91. 91. TOP 3 BODY PART/S WHY 1 2 3 EXERCISE 2 Identify the part of your body manifest the portrait of an entrepreneur. Why? EXERCISE 3 What are the characteristics you possess in relation to your identified body part in helping you become entrepreneur? And describe your characteristics. TOP 3 Characteristics Description 1 2 3 EXERCISE 4 What are the skills that you already have or needs to improve or needs to acquire to fulfill your dream to become an entrepreneur? TOP 3 SKILLS Already Have Needs to Improve Needs to Acquire 1 2 3 172
  92. 92. Skills The challenge for entrepreneurs is to think fast, move quickly and be innovative. Being Entrepreneurial is learning to challenge and To reinvent yourself. An entrepreneur requires numerous skills (alone or in combination with one or more members of the team). 173
  93. 93. Skills These skills must be developed and used optimally in order to ensure the sound management and success of a business. However, no two entrepreneurs have the same abilities, but in order to start and grow their ventures, research has shown that successful entrepreneurs must acquire the following skills: 174
  94. 94. Skills JOB EXPERIENCE Every job you have had should have contributed to the development of some business skills. For example, working as an accountant might teach you: 1. How to prepare financial statements 2. How to make financial projections and manage money 3. How to determine the business’s cash requirements, among other things Working as a sales clerk might teach you: 1. How to sell 2. How to deal with the public 3. How to operate a cash register 175
  95. 95. Skills These skills are as follows: • Opportunity Identification • Creative Thinking • Researching • Networking • Evaluation and Assessment • Goal Setting • Communication • Innovation • Planning • Organizing • Decision Making • Team Building • Problem Solving • Leadership • Stress Management • Record Keeping • Financial Management • Financial Planning • Negotiation • Market Analysis • Marketing 176
  96. 96. BREAKDOWN OF ENTREPRENEURIAL BUSINESS SKILLS 1. Managing MONEY 2. Managing PEOPLE 3. Directing Business Operations 4. Directing Sales and Marketing Operations 5. Setting up a Business 177
  97. 97. BREAKDOWN OF ENTREPRENEURIAL BUSINESS SKILLS 1. Managing money a. Borrowing money and arranging financing b. Keeping financial records c. Managing cash flow d. Handling credit e. Buying insurance f. Reporting and paying taxes g. Budgeting 2. Managing people a. Hiring employees b. Supervising employees c. Training employees d. Evaluating employees e. Motivating people f. Scheduling workers 178
  98. 98. BREAKDOWN OF ENTREPRENEURIAL BUSINESS SKILLS 3. Directing business operations a. Purchasing supplies and raw materials b. Purchasing machinery and equipment c. Managing inventory d. Filling orders e. Managing facilities 4. Directing sales and marketing operations a. Identifying different customer needs b. Developing new product and service ideas c. Deciding appropriate prices d. Developing promotional strategies e. Contacting customers and making sales f. Developing promotional material and media programs 179
  99. 99. BREAKDOWN OF ENTREPRENEURIAL BUSINESS SKILLS 5. Setting up a business a. Choosing a location b. Obtaining licenses and permits c. Choosing a form of organization and type of ownership d. Arranging initial financing e. Determining initial inventory requirements 180
  100. 100. MANAGERIAL SKILLS INVENTORY Exercise 5 181
  101. 101. Rich Dad Poor Dad ROBERT KIYOSAKI 182
  102. 102. Rich Dad Poor Dad Rich Dad Poor Dad is a book by: Robert Kiyosaki It advocates financial independence and building wealth through investing, real estate investing, starting and owning businesses, as well as increasing one's financial intelligence. 183
  103. 103. Rich Dad Poor Dad Rich Dad Poor Dad is a book by: Robert Kiyosaki Rich Dad Poor Dad is written in the style of a set of parables, ostensibly based on Kiyosaki's life. Kiyosaki stresses the ownership of high value of assets that produces cash flow, rather than being an employee. 184
  104. 104. Rich Dad Poor Dad • The book is largely based on Kiyosaki's upbringing and education in Hawaii. • It highlights the different attitudes to money, work and life of two men (i.e. his titular "rich dad" and "poor dad"), and how they in turn influenced key decisions in Kiyosaki's life. 185
  105. 105. Rich Dad Poor Dad Among some of the book's topics are: a) Robert Kiyosaki's personal story b) The difference between assets and liabilities c) What the rich teach their kids about money that the poor and middle class do not d) The idea that your primary residence is not an asset, but a liability e) The value of financial intelligence and financial literacyselves from frivolous lawsuits, but the poor and middle class don't usually do not know how f) The importance of investing and entrepreneurship 186
  106. 106. Rich Dad Poor Dad Kiyosaki advocated his former mentor and American futurist, Dr. Buckminster Fuller’s views on wealth, that - wealth is measured by the number of days the income from your assets can sustain you, and - financial independence is achieved when your monthly income from assets exceeds your monthly expenses. 187
  107. 107. Rich Dad Poor Dad 2 OBJECTIVES 1. How to get out of the Rat Race 2. Pursue your Dream 188
  108. 108. Rich Dad Poor Dad RAT RACE TRAP Cycle of Rat Race: 1. FEAR 2. GREED 189
  110. 110. Rich Dad Poor Dad 3 TYPES OF INCOME 1. EARNED INCOME Active Income derived from employment or regular income that you get monthly. 191
  111. 111. Rich Dad Poor Dad 3 TYPES OF INCOME 2. PORTFOLIO INCOME Income derived from investments such as Stocks, Bonds, Treasury Bills and other paper assets. 192
  112. 112. Rich Dad Poor Dad 3 TYPES OF INCOME 2. PASSIVE INCOME Income derived from business aside from your earned income, rentals, royalties, intellectual properties, etc. Ex. Michael Jackson You don’t have to work for it 193
  113. 113. Rich Dad Poor Dad Lessons Learned: One dad had a habit of saying, “ I can’t afford it”, and the other one says, how can I afford it.” One dad thought that rich should pay more in taxes to take care of these less fortunate, the other dad says, “taxes punish those who produce and reward those who don’t produce”͘ One dad recommend, “study hard so you could have a good company to work for”, the other dad says, study hard, so you can find a good company to buy ͘” 194
  114. 114. Rich Dad Poor Dad Lessons Learned: One dad says, “The reason I am not rich is because I have you kids”, the other one says, I reason I must be rich is because I have you kids” One said, “when it comes to money play it safe, don’t take risk ͘The other one said, “Learn to manage risk”͘ One believed, “our home is our greatest asset and achievement”, the other one believed, my home is a liability, and if your house is the largest investment, you’re in big trouble” 195
  115. 115. Rich Dad Poor Dad Lessons Learned: Both dad paid their bills, the first one paid his bills first, and the other paid his bills last. One believed on pay raises, medical benefits, retirement plans, sick leave, vacation days, Tenure system in the university, other believed in total financial self reliance. One dad struggles to save money, the other simply created investment. One dad taught me how to write an impressive resume, so I could find a good job. The other one taught me how to write a strong financial and business plans, so I could create jobs. 196
  116. 116. Rich Dad Poor Dad Lessons Learned: My poor dad said, I’ll never be rich, and the prophecy became reality ͘My rich dad always says, I’m rich, he has become broke after a major financial setback, he continue sly referred himself as a rich man. There is a difference between being poor and being broke. Broke is temporary, poor is eternal. One dad says, acquire the highest position in the ladder. The other one says, why not own the ladder?”. 197
  117. 117. Rich Dad Poor Dad Lessons Learned: “Money is a form of power. But what is more powerful is financial education. Money comes and goes. If you have an education how money works, You gain power over it and begin building wealth ͘” Robert Kiyosaki 198
  118. 118. ARE YOU READY FOR AN ENTREPRENEURIAL CAREER? What follows is a discussion of a few of the most relevant issues you should consider concerning your degree of readiness and preparedness for such a career. NEED FOR TOTAL COMMITMENT MANAGEMENT OF STRESS ECONOMIC AND PERSONAL VALUES DEALING WITH THE ETHICAL CHALLENGE 199
  119. 119. DEALING WITH THE ETHICAL CHALLENGE CODE OF ETHICS 1. We will serve our clients, candidates and employees faithfully, with integrity and professionally. 2. We will observe the highest principles of honesty and fair practice in dealing with clients, candidates, employees and all regulatory authorities, and will respect the confidentiality of records in accordance with law and good business practices. 3. We will provide leadership in the adherence to both the spirit and letter of all applicable human rights, employment laws and regulations.We will treat all candidates and employees without prejudice and will not accept an order from any client that is discriminatory in any way. 4. We will take all reasonable steps to provide clients with accurate information on each candidate’s employment qualifications and experience, and will only present those candidates who have given us authorization to represent their application for employment. 5. We will supply candidates and employees with complete and accurate information as provided by the client, regarding terms of employment, job descriptions and workplace conditions. 200
  120. 120. DEALING WITH THE ETHICAL CHALLENGE CODE OF ETHICS 6. We will not recruit, encourage or entice a candidate whom we have previously placed to leave the employ of clients, nor will we encourage or coerce an individual to leave any assignment before completion. 7. We will not restrict the right of a candidate or employee to accept employment of their choice. 8. We will maintain the highest standards of integrity in all forms of advertising, communications and solicitations, and will conduct our business in a manner designed to enhance the operation, image and reputation of the employment, recruitment and staffing services industry. 9. We will recognize and respect the rights and privileges of competitors in the true fashion of individual initiative and free enterprise and refrain from engaging in acts of unfair competition. 10. We will continually work toward strengthening our business relationships and continually improve our services. 201
  121. 121. LO2 Develop Business and Entrepreneurial Activities for Members. 202
  124. 124. MICRO, SMALL AND MEDIUM ENTERPRISE Micro, small, and medium enterprises (MSMEs) are defined as any business activity/enterprise engaged in industry, agri- business/services, whether single proprietorship, cooperative, partnership, or corporation whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity's office, plant and equipment are situated, must have value falling under the Following categories: 205
  125. 125. MICRO, SMALL AND MEDIUM ENTERPRISE BY ASSET SIZE: category Asset size Micro Up to 3M Small > 3M – 15M Medium >15M – 100M Large >100M 206
  126. 126. MICRO, SMALL AND MEDIUM ENTERPRISE BY NUMBER OF EMPLOYEES: category # of Employees Micro 1 – 9 Small 10 – 99 Medium 100 – 199 Large 200 and above 207
  127. 127. ROLES OF MICRO, SMALL AND MEDIUM ENTERPRISE MSMEs play a major role in the country's economic development through their contribution in the following: Rural industrialization; rural development and decentralization of industries; creation of employment opportunities and more equitable income distribution; use of indigenous resources; earning of foreign exchange (forex) resources; creation of backward and forward linkages with existing industries; and entrepreneurial development. 208
  128. 128. ROLES OF MICRO, SMALL AND MEDIUM ENTERPRISE They are vital in dispersing new industries to the countryside and stimulating gainful employment. A country like the Philippines where labor is abundant has much to gain from entrepreneurial activities. MSMEs are more likely to be labor-intensive. Thus, they generate jobs in the locality where they are situated. In this sense, they bring about a more balanced economic growth and equity in income distribution. 209
  129. 129. ROLES OF MICRO, SMALL AND MEDIUM ENTERPRISE They MSMEs are quick in assimilating new design trends, developing contemporary products, and bringing them to the marketplace ahead of the competition. MSMEs tend to be far more innovative in developing indigenous or appropriate technology, which may be grown later into pioneering technological breakthroughs. 210
  130. 130. ROLES OF MICRO, SMALL AND MEDIUM ENTERPRISE They are able to effectively increase the local content or the value added in final goods that are processed and marketed by large manufacturing firms. MSMEs are notably skilful in maximizing The use of scarce capital resources and are able to partner with large firms by supplying locally available raw materials in unprocessed or semi- processed forms. 211
  131. 131. ROLES OF MICRO, SMALL AND MEDIUM ENTERPRISE Also, MSMEs can act as the seedbed for the development of entrepreneurial skills And innovation. They play an important part in the provision of services in the community. They can make an important contribution to regional development programs. 212
  132. 132. TYPES OF MICRO, SMALL AND MEDIUM ENTERPRISE • Appraisal Services • Automotive trouble shooting • Balut/Penoy Pedling • Banana, camote and turon stand • Barbeque stand • Buco salad stand • Burger stand • Butong pakwan, mani stand • Brokerage • Carwash • Cellphone accessories • Cellphone repair • Fishball cart • Fruits and Vegetable stand • Sago, Gulaman • House painting service • Kakanin stand • T.V. Electric fan repair • Vulcanizing shop • Sari-sari store • Business Plan Feasibility Study Preparation Services • Duplicating stand • Lugawan • Newspaper stand • Notarial services • Pizza stand • Plumbing services • Tinapa, tuyo, daing stand • Rags production • Re-packing (paminta, vetsin) • Scrap buy & sell • Shoe shine and repairs • Siomai in cart • Sorbetes vendor • Taho production • Turu-turo • Tutorial services • Upholstery • Watch repair 213
  133. 133. TYPES OF MICRO, SMALL AND MEDIUM ENTERPRISE MANUFACTURING: • Food processing • Bags & Accessory Mfg. • Footwear Mfg. • Furniture Factory • Garment Factory • Handicraft Industries • Jewellery Mfg. • Purified water station • Sash and Decor works • Soap Making • Toy Mfg. SERVICES BUSINESS: • Accounting Firm • Janitorial Services • Security Services • Collection Agency • Printing Press • Cargo Forwarding • trade Promotions • Merchandising Business 214
  134. 134. TYPES OF MICRO, SMALL AND MEDIUM ENTERPRISE SERVICES PERSONAL: • Tutorial • Massage Parlor • Spa • Voice Lesson • School Bus • Skin Clinic • Dental Clinic SERVICES PERSONAL: • Medical Services • Funeral Parlor • Flower Arrangement 215
  135. 135. TYPES OF MICRO, SMALL AND MEDIUM ENTERPRISE SERVICES REPAIRS: • Auto Repair • Watch Repair • Plumbing Services • Aircon repair ENTERTAINMENT & RECREATION • Movie houses • Arcade games • Internet Cafe • Resorts • Billiard • Talent Recruitment Agency 216
  136. 136. TYPES OF MICRO, SMALL AND MEDIUM ENTERPRISE SERVICES HOSPITALITY: • Hotels • Motels • Event Planning • Catering • Travel & Tour SERVICES EDUCATION: • Pre-School • Grade School • High School • Colleges 217
  137. 137. TYPES OF MICRO, SMALL AND MEDIUM ENTERPRISE TRADING BUSINESS: • Auto Supply • Boutique • Fish Dealership • Cellphone Dealership • Electrical Store • Grocery Store • Hardware Store • Furniture Store • Gasoline Station • Gravel & Sand • LPG Dealership • Magazine Store • Meat & Poultry Dealership • Medical Supply • Real Estate • Pharmacy • Rice Dealership 218
  138. 138. TYPES OF MICRO, SMALL AND MEDIUM ENTERPRISE RENTALS • Apartment • Billiard center • Computer Rental • Warehousing AGRI & AQUA BUSINESS • Broiler Production • Cattle Fattening • Dog Breeding • Poultry Raising • Hog Raising • Honey Bee Production • Quail Raising • Tilapia Raising •Raising Livestock • Graowing Agri plants & crops • Agri & Aqua Culture 219
  139. 139. SEARCH FOR A SOUND BUSINESS IDEAS A.BEFORE SEARCHING THE BUSINESS IDEA: i. Assessing the Educational background ii. Financial Strength iii. Commitment iv. Expertise & Interest v. Personal Qualities vi. Prior Experiences vii. External Contacts & Resources B.FINDING THE BUSINESS IDEAS 220
  140. 140. SEARCH FOR A SOUND BUSINESS IDEAS C. ASSESSING BUSINESS IDEAS 1) Discuss products/services with prospective customers 2) Assess the market using desk & field research 3) Analyze your competition 4) Consider possible sart-up strategies 5) Set ball-park targets & prepare first –cut financial projections 6) Prepare a simple action plan 7) Critically examine ideas from all angles D. FROM BUSINESS IDEA TO BUSINESS PLAN 221
  141. 141. ENTREPRENEURIAL OPTION: START-UP, BUY OUT OR FRANCHISING A. STARTING A NEW BUSINESS Advantages and Disadvantages B. BUYING AN EXISTING BUSINESS 1)Advantages and disadvantages 2)How to value a business 3)Steps in buying a business C. FRANCHISING 1)Concepts of Franchising 2)Types of Franchising 3)What does Franchising provide 4)Advantages and Disadvantages 222
  142. 142. MARKET ANALYSIS AND MARKET RESEARCH A. ELEMENTS OF OF MARKET RESEARCH 1) Market Information 2) Market Segmentation 3) Market trends 4) Market Size 5) Market growth rate 6) Market opportunity 7) Market profitability 223
  143. 143. BUSINESS PLAN (CREATING A BLUEPRINT FOR YOUR BUSINESS) A. WHAT IS A BUSINESS PLAN? A business plan is a document that helps the small business owner determine what resources are needed to achieve the objectives of the firm, and provides against to evaluate the results.The business plan is sort of a blue print and it keeps the entrepreneur on the right track. It gives a sense of purpose to the business. 224
  144. 144. BUSINESS PLAN (CREATING A BLUEPRINT FOR YOUR BUSINESS) B. BUSINESS PLAN FORMAT 1) Title page 2) Vision Statement 3) Mission Statement 4) Executive Summary 5) Marketing Plan 6) Production Plan 7) Organizational & Management Plan 8) Financial Plan 225
  146. 146. 9 RULES FOR BUSINESS SUCCESS (JOHN GOKONGWEI) 1. Change is inevitable and flexibility is the key. 2. Personal stakes in the company encourage everyone to work hard. 3. Mistakes and disappointments are inevitable. 4. Good brand building equals reputation. 5. Family support is crucial 6. Never lose sleep thinking of business risks. 7. Pausing to recharge brings new vigor. 8. Reading and travelling enriches one’s mind. 9. Philantrophy is a personal satisfaction. John Gokongwei, Jr. Is 80 years old yet he continues to make his mark in the country. His life is a shining testimony to the great benefits of an entrepreneurial life. 227
  147. 147. ACTION PLAN Activities Target date Milestone (KRA) 1. Identification of project (business ideas) 2. Business Plan Preparation 3. Business Implementation June ___, 2014 Submitted to ______ thru email 228
  148. 148. THANK YOU 229