entrepreneurial process

1. ENTREPRENEURIAL
PROCESS
INVOLVES SEVERAL STAGES FROM THE AWARENESS OF AN
OPPORTUNITY TO THE REALIZATION OF BUSINESS.

2. The entrepreneurial process involve several stages from the
awareness of an opportunity to the realization of a business idea.
The steps include the following:
a) discovery- refers to the recognition of a business
idea or the detection of opportunities that could
make money for the entrepreneur.
Megaentrepreneurs draw ideas from the current
inventions. Microentrepreneur typically get their
business ideas limitation of existing product.
b)Development of business concept- gives more
details on how the general business idea can be
realized.
c) Organizing resources- describe the process of

3. c) Implementation- the process of carrying out
the business plan. It covers a number of
activities, including the management of
human, physical, technological, and financial
resources of the business.
d) Reaping the returns- pertains to strategies
related to the expansion of the business firm.
It also covers mechanism for addressing
condition in the business environment that
may affect the future of the firm.

4. CHARACTERISTICS OF ENTREPRENEUR
A. Entrepreneurial Traits and Creation of Value-added
- The level of education, employment status wealth, and
risk appetite of entrepreneur differ depending on the
amount of value added or profit created by their
enterprises.
1. Level of education. Entrepreneurs need some formal
education to be able to seize the opportunities presented
by inevention, and other technological developments.

5. 2. Employment status- individuals who become
entrepreneurs in developed countries are usually
former employees of companies in the formal
sector
3. Entrepreneurs wealth- the wealth of the
entrepreneur is also important factor.
4. Risk appetite- risk are associated with
uncertainties in business operation. These
uncertainties can threaten the survival and stability
of a business enterprise.

6. B. Entrepreneurial Traits and Entrepreneurial
Intentions
Which are planned actions formulated in the mind of
individuals which are geared toward the objective of
stablishing a business venture from potential business
opportunities. There are two broad factors internal and
external

7. Performance Task #1
Surf the internet and find examples of
Filipino entrepreneur whose lives have
been featured in a news paper , a
magazine, a web blog. Based on
published data, reconstruct the
process by which they set up their
business? Use entrepreneurial process
as a guide

8. Entrepreneurial Decision-Making
Critical thinking refers to the systematic
and rational way of providing an answer to
a question.
Creative thinking- refers to thought
processes that bring about discovery of
new ideas.
Strategic thinking- involves thought
process that assess current situation that
can be useful in the formulation of plans in
the future.

9. RISK, COGNITIVE ADAPTIBILITY AND
ENTREPRENEURIAL PROCESS DECISIONS
Risk can be described as uncertain situations
and development that increase the probability
of loss or business failure.
Cognitive adaptability refers to the ability of
individuals to be involved in the process of
producing several ways of decision making
based on identification and management of
changes in their environment

10. Activity 1
1.Would you describe yourself primarily as a critical
thinker, a creative thinker or strategic thinker? Give
specific examples that will support your answer.
Which of these thought processes , d you think is
the most effective in formulating entrepreneurial
decisions?
2.What is your understanding of cognitive
adaptability? Have there been instances in the past
that you have exhibited this in making decision?
3.Being cognitively adaptable might lead an
entrepreneur to constantly change his mind about
how to run his/her business. Would ypo consider
this good or bad for the business?

11. Sources of ideas for Entrepreneurial Ventures
A number of sources, from which we can
find business ideas. These can be
categorized into four major sources:
a)From the product
b)From the process
c)From the person
d)From relationship

12. METHODS FOR GENERATING OR TESTING NEW IDEAS
2 classification logical thinking and creative thinking.
Generating Business Ideas through Logical Thinking
Logical Thinking refers to the systematic and rational
way of providing an answer to a question.
Statistical Analysis refers to a systematic analysis of
data generated from a survey of individuals.
Market Analysis – which is undertaken to know the
various factors that affect the demand for a particular
product or service.
Delphi Technique – is the systematic way of
generating ideas from a select group of individuals

13. Generating Ideas through Creative Thinking
• Brainstorming- refers to an unstructured discussion of a
group to elicit ideas.
• Problem Inventory Analysis- is similar to brainstorming. It
uses the group discussion method to elicit ideas from
participants. it is directed to all possible problem with
specific product and gives solution.
• Free association method is another technique used in
discovering business ideas. It is a method that has been
used in psychology to elicit the unconscious thoughts of
individual by expressing their thoughts associated with
words and ideas given by the therapist

14. CREATIVITY: A NEW WAY OF LOOKING AT THINGS
Creativity can be described as the capacity of
individuals to originate new ideas from ideas the
individual has been previously exposed. The birth
of new idea is done by connecting an idea with
other ideas and transforming these connections.

15. FACTORS THAT INFLUENCE CREATIVITY
a.Problem solving factor – ability to solve problems in
turn, is influenced by the knowledge of the individual
, the extent of his experience, and his level of
education.
b.Motivational factor- a creative individual is usually a
highly motivated person. Motivated individual is
willing to do something to address dissatisfactions.
c.Organizational factors- include among others,
management support, risk taking incentives, flexible
rules, degrees of freedom, and positive evaluation.

16. The Business Plan
A business plan is a document that describes the
various external and internal elements involved in
starting a business or in expanding an existing
venture, amidst a dynamic business environment.

17. WHY WRITE A BUSINESS PLAN? WHO READ IT?
Business plan are important because of the ff.
reasons
a.It helps to determine whether a proposed or
existing business venture is viable given its
target market.
b.It guides the entrepreneur in mobilizing the
resources needed by the business
c.It serves as a tool in helping get financing
for business

18. Value of Business plan to selected Users
Entrepreneur
• Serve as road map for managing the business
• Identifies the resources needed to operate and
grow the business
• Allows the entrepreneur to anticipate potential
business risk
Lender
• Allows the lender to asses whether the
entrepreneur will be able to meet debt and
interest payments
• Provides information about collateral or tangible

19. Investor
• Allows the investor to gauge whether
projected returns are acceptable
• Provides information about the character
of the entrepreneur and about the
capability of the venture’s management
team.

20. Typical Content of Major Sections of the Business
Plan
 Introductory Page – brief summary of the
business plan content.
 Executive summary- prepared after the total plan
has been written, must stimulate the interest of
its reader, specially if he or she is a potential
investor.
- what is the basic idea for the new product or
service?
what makes it unique
- is the potential market big enough to make
the business
viable

21. Environmental and Analysis
General environment within which the entrepreneurial
venture will operate.
o Sociocultural Conditions- a description of shifts in the
characteristics of the population, including the rise of the
Filipino middle class and growing elderly population, Lifestyle
o Technological condition- include an assessment of the major
developments in science and technology that might have their
a beneficial or detrimental impact on the business or on the
entire industry.
o Economic condition- this must include a description of the
growth of both the national and local economies, as measured
by gross domestic product

22. o Supply and Demand. For the entrepreneur, it is
important to know whether his proposed business
venture belongs to an industry that is rapidly
growing (sunrise industry), steadily growing,
plateauing, or rapidly declining (sunset industry).
o Competition Some entrepreneurs might be led to
believe that a good product or service is enough to
sustain a profitable business.

23. Description of the Business Worth
including in this section is the venture's
mission statement, which could serve as
a guide in decision-making.
Production Plan If the new venture is a
manufacturing concern, the
entrepreneur must prepare a production
plan that describes the complete
manufacturing process

24. Marketing Plan This section describes the target
market for the new product or service. Who will want
to buy and use the product or avail or avail of the
service? Why would do so? Once the target market is
defined, then the entrepreneur must describe how
the product or service will be priced. promoted, and
distributed to its target customers.
Organizational Plan In the section it is not enough
for this section to provide a documentation of the
venture's form of ownership-that is proprietorship,
partnership, or corporation, nor is it sufficient to
have a nice organizational chart that indicates the

25.  Financial Plan This section determines the
investment that must be poured into the
business, and indicates whether the business is
an economically viable undertaking,
 Assessment of Risk Effective business plans
must contain a section that discusses the risks
that might prevent the business from achieving
its objectives

26. Timetable/Milestones for both the entrepreneur
and the potential investors knowing when major
activities will happen and when milestones will be
reached serves a useful purpose.
Appendices To ensure that the main body of the
business plan is concise enough to include only the
most essential information, several items could
instead be! appended to the document.