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INTRODUCTION TO ENTREPRENEUR - Coggle Diagram
INTRODUCTION TO ENTREPRENEUR
Entreprende
Originated from the French word
means to undertake
Capacity to take risks
Ability to own and organize
Desire and capability to innovate and
diversify (Stepanek, 1962)
Entrepreneurship
the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychological, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence
Entrepreneurs
are people who develop innovative ideas and bring them to the marketplace, creating prosperity for themselves, spinoff products and services for less innovative business people, and increased economic activity for everybody
Who is an entrepreneur?
Person who sets up business deals/starts and or operates a business in order to make profits
Organizer of an economic venture, one who owns, organizes, manages, and assumes the risks of the business
a person who is creative and innovative. He is a person who starts something new
may be male or female, young or old, professional, college graduate or school dropout, comes from A, B, C, D, or E economic group
an owner-manager and willing to take risks
Instead, he wants others work for him
Usually, also his kind of business is single proprietorship because he does everything from production to selling
Usually he is someone not willing to work for others
Schumpeter’s View of Entrepreneurship
emphasis on innovation,
such as:
new production methods
new markets
new products
new forms of organization
Entrepreneur
a person who is willing and able to convert a new
idea or invention into a successful innovation
Entrepreneurship
employs "the gale of creative destruction“
to replace in whole or in part inferior innovations,
simultaneously creating new products
Economic activity created by entrepreneurs
Entrepreneurs have been around longer than free enterprise or capitalism itself
They create economic activity.
Throughout history, entrepreneurs have been most responsible for:
Creating new products or services
Significantly changing existing products or services through innovation
Creating new markets for existing products or services, or expanding the existing markets
Recombining or creating new uses for existing products or services
Role of Entrepreneurs in the Economy
Entrepreneurs are vital in the economic development of the country
They provide employment that moves the economy forward, as shown in the development cycle:
Employment and Income
Savings and Taxes
Entrepreneurs Investment
Role of Entrepreneurs in the Economy
Tax Payers
Business establishments pay taxes to the government
Thus, more
business would mean more taxes and better government services
Employers
A restaurant owner, for example, will hire cooks and kitchen helpers while he, the owner, does the purchasing and attending to the customers
Usually, entrepreneurs hire people to help them in their business
Service Providers
Business ventures of entrepreneurs could be along the line of service like salons, spas or coffee shops.
Suppliers of Products
Products and services are available through the efforts of the entrepreneurs
Without them, a scarcity of certain products and
services will be felt
Mobilizers of Capital
Entrepreneurs sometimes use their own savings as capital for their business ventures.
However, if they do not have the capital, money
can be borrowed from banks to finance their intended business
Profit
generally comes in the form of money or cash
This is the material income or rewards from
running a business
Profit is what is left after deducting the cost and expenses from the selling price of products and services
Selling Price - Cost and Expenses = PROFIT
Freedom
The entrepreneur has freedom to do what he
feels is fit in his business
The products may be those he bought for sale, those he bought and converted to other products or those services he renders to others
includes what product to sell, there to sell and when to sell. This is what is referred to as being one’s own boss
Psychological Rewards:
Service to Others
The entrepreneur is able to satisfy customer’s needs, to give work or employment to others, to pay taxes to the government and to support the community
Generally, the entrepreneur enjoys what he is doing
To most entrepreneurs, running their business is fun
They feel like they are always socializing with their customers, their employees and their business associates
The third benefit of entrepreneurship is the good feeling of being of service to others
Motivating Factors for Asians
Support or external variables such as availability or capital surplus and cheap labor, high demand for product and accessibility to market
Tired of regular employment
Achievement motive
Having been forced by certain circumstances
Desire to use a skill or competence (either professional or technical)
Social awareness
Profit motive
Advantages
You can meet more interesting people
You can never be fired from you own business
You do something that you really enjoy
you can become wealthy through your own business
You can employ jobless friends, relatives, and other dependents
You develop a high reputation or status in the community
You fulfil many of your dreams
You can sleep late now and wake up late too
Some of your current personal expenses can be tax-deductible
You do not have to wear a daily office uniform anymore
Your time is yours alone
You can plan you daily activities by yourself and chart your future
You are your own boss
Disadvantages
You will no longer enjoy sick leaves, paid vacations, and other perks courtesy of
the company
You risk your health due to long hours of work and stress
You will not get support from corporate resources of your previous employer
You have to file many papers with the government and deal with red tape
You will no longer receive regular paychecks
You become the government’s collector for income and value-added taxes
You will incur more unexpected expenses
You have to contend with your employees and customers
You will spend more time in your business
You will do most of the work by yourself with minimal support from others
Now, you will have several bosses to contend with (your customers)
You risk losing all your money invested in your business
Evaluation of being an Entrepreneur
Delayed gratification
Opportunity recognition
Preparedness and thoroughness
Need for achievement and the ability to work hard
Persistence, adaptability, and the ability to deflect failure
Willingness to take, and ability to calculate, risks
Optimism
Ability to handle ambiguity
Self-confidence
Integrity