Overview of Entrepreneurship

Overview of
Entrepreneurshi
p
Prof. Charlou A. Bautista, CFMP, MBA
Entrepreneurship - The word
entrepreneurship originates from
the French word, “entreprendre”,
which means "to undertake”.
Opportunity – there must be opportunities to respond to;
Resource use – resources are required to respond to
opportunities, though entrepreneurs have the capacity to do
much more than what their resources would suggest possible;
Creation of something new – entrepreneurs always strive to
create something new, in order to capitalise on their
opportunities;
The presence of risk – there will always be risk involved with
entrepreneurship, though smart entrepreneurs manage it.
The desire to create value – entrepreneurs always strive to
create genuine value for their customers.
Key Concepts
“Entrepreneurship is the
pursuit of opportunity without
regards to resources currently
controlled”
- Howard Stevenson -
Definition of
Entrepreneurship
• Entrepreneur - An entrepreneur is someone who identifies
and acts on an idea or problem that no one else has identified or
acted on.
• Peter F. Drucker defined entrepreneur as one who always
searches for an opportunity.
Definition of
Entrepreneur
What is a Business Opportunity?
Business opportunity can be described as an
economic idea which can be implemented to create
a business enterprise and earn profits. Before
selecting an opportunity, the entrepreneur has to
ensure two things-
• There is a good market for the product he is going to
produce
• The rate of return on the investment is attractive to
be accepted by him
Entrepreneurial Opportunities
A business opportunity has five elements
which are as follows:
• Assured market scope
• An attractive and acceptable rate of return on
investment
• Practicability of the idea
• Competence of the entrepreneur to encash it
• Potential of future growth
Elements of a Business Opportunity

Successful entrepreneurial efforts require the
mobilization of a wide array of resources quickly
and efficiently. All entrepreneurial ventures have to
have resources such as capital, talent and know-
how (e.g., accounting and finance, operations,
management, legal, and regulatory), equipment,
and facilities.
Entrepreneurial Resources
All the previously stated resources in the entrepreneurial
process are important, but the single most important factor is
the individual entrepreneur—that is, their ability to identify
a market opportunity and develop a creative response to that
opportunity with market potential, to get a product or service
out, to sell to customers, to organize an organizational team,
and to garner the confidence of potential investors.
Entrepreneurs must have passion, drive, excitement,
and unique capabilities to do what they do.
Entrepreneurial Resources
The entrepreneurs perceive opportunities, synthesize the
available information and analyse emerging patterns that
escape the attention of other people.
Perceiving and Sensing Opportunities

To sense an entrepreneurial
opportunity, an entrepreneur
employs his/her sharpened skills of
observation, analysis and synthesis
to identify an opening.
Factors Involved in Sensing

Opportunities
1. Ability to perceive and preserve basic ideas
• Problems: When a problem exists, an idea leads to a solution to
resolve that problem, it emerges as a business opportunity.
• Change: A change in social, legal, technological aspects etc. leads to
new opportunities to start a business.
• Inventions: New products or services leads to new business
opportunities.
• Competition: Competition often results in emergence of new and
better ideas that result in new business opportunities.
• Innovation: Creating new things of value as well as new and creative
processes that add value to the existing products or services. For
example, computers to tablets.
Factors Involved in
Sensing Opportunities
2. Ability to harness different sources of information
3. Vision and creativity

They constantly
• overcome adversity
• exercise control over the business
• make a significant difference.
Factors Involved in
Sensing Opportunities
It means identification of new trends.
This will help the entrepreneur to
understand the market and produce
goods or provide services in sync with
the market trends. But how do we spot
trends?
Trend Spotting
1)Read Trends
2)Talk Trends
3)Watch Trends
4)Think Trends
Ways in which an
entrepreneur spots trends
A. Understand the benefits customers receive
B. Connect benefits to the value
C. Target your audience
D. Differentiate the Product and Service
E. Put everything into a clear and easy to read
sentence
F. Place it everywhere
G. Test its effectiveness
HOW TO DEVELOP A VALUE

PROPOSITION?
A value proposition refers to the value a company
promises to deliver to customers should they choose
to buy their product. A value proposition is part of a
company's overall marketing strategy.
The value proposition provides a declaration of
intent or a statement that introduces a company's
brand to consumers by telling them what the company
stands for, how it operates, and why it deserves their
business.
Understanding
Value Proposition
1. Geoff Moore's Value Positioning Statement
Template
For ____________ (target customer)
who ____________ (statement of the need or opportunity)
our (product/service name) is ____________ (product category)
that (statement of benefit) ____________ .
Sample(s)
For non-technical marketers who struggle to find return on
investment in social media our product is a web-based analytics
software that translates engagement metrics into actionable
revenue metrics.
TEMPLATES FOR WRITING

A VALUE PROPOSITION THAT WORK
2. Steve Blank's XYZ
Template
“We help X do Y doing Z”.
Sample(s)
We help non-technical marketers discover return on
investment in social media by turning engagement metrics
into revenue metrics.

3. Vlaskovits & Cooper's CPS
Template
Customer: ____________ (who your customer is).
Problem: ____________(what problem you're solving for the customer).
Solution: ____________ (what is your solution for the problem).
Sample(s)
Customer: I believe my best customers are small and medium-sized
business (SMB) markets.
Problem: Who cannot easily measure campaign ROI because
existing solutions are too expensive, complicated to deploy, display a
dizzying array of non-actionable charts.
Solution: Low cost, easy to deploy analytics system designed for
non-technical marketers who need actionable metrics.

4. Dave McClure's Elevator Ride
Template
Short, simple, memorable; what, how, why.
3 keywords or phrases
KISS (no expert jargon)
Sample(s)
"Mint.com is the free, easy way to manage your
money online."

WHAT TO SELL: HOW TO SELECT THE RIGHT
PRODUCT FOR YOUR BUSINESS
Key question often asked by start-up entrepreneurs is
what to sell in the business. What products or services
could you sell that will make you money?
The selection of the right product or service is critical.
In fact, the choice of a product or service for your business
can make or break your business.
Idea and Opportunity

Assessment
• What are your primary considerations for
choosing a particular product?
• Can you meet the needs of the customer
and solve a specific problem?
• How capable are you to produce the
product?
• What is the size of your potential
reachable market?
How do you choose the right

product to sell?
• Would you need to comply with government rules
and regulations?
• If a similar product exists, can your product be
superior in its functionality, presentation or
marketing?
• What barriers must be overcome for a potential new
product entry?
• What are the potential sales, growth, profits, and
time for payback?
How do you choose the right

product to sell?
• Product Identification
• Level of Operation
• Cost
• Level of Competition
• Technical Complexity
• Profit Margin
Assessing Business
Ideas
1) Demand
The demand assessment will be based on the size of market being
targeted, i.e., local markets, market at state level or
national/international market. It will also involve a study of the target
groups of consumers, their preferences, tastes and other related
variables.
2) Cost and price of product
Cost variable of competitors in terms of transportation delays,
wastage, storage etc., have to be studied to spot cost advantage.
3) Project innovation and change
Technological advancements in the field have to be analysed because
they may change the quality and influence the cost and price
ultimately.
Market Assessment
• One or both of your parents were entrepreneurs.
• Personal interests and values, the prospects of
financial rewards, or lifestyle preferences.
• The ability to pursue a passion or interest that is
exciting and one feels deeply about.
• A desire to be independent, to be your own boss, to
make your own decisions, and to make your own
schedule
Why Do Entrepreneurs Do It?

While entrepreneurship is normally
thought of as starting a new business, it
applies to applying innovation to existing
organizations. Often, this type of
entrepreneurial activity is distinguished as
intrapreneurship (meaning
entrepreneurship from within).
Intrapreneurship
Being a successful entrepreneur is not easy and
there is no guarantee of success. It requires broad
competence across a range of functional areas—
including finance, accounting, strategy, marketing,
management and operations, and strong
interpersonal skills. There are also significant risks
and significant likelihood of failure. Part of being an
entrepreneur is assessing and managing risk.
Entrepreneurial Risk and the Importance

of Resilience and Persistence
• Wealth Creation
• Risk Involved
• Innovation Involved
Small Business VS
Entrepreneurship
In a broader sense, what people consider
an entrepreneur can vary. Some scholars strictly
differentiate between entrepreneurs and small
business owners. Others acknowledge that a small
business owner may also be an entrepreneur—they
are not mutually exclusive. Someone may start a
venture that is not a completely new idea, but that
introduces a product or service to a new region or
market.
Small Business Owners

vs. Entrepreneurs
An entrepreneurial venture is the
creation of any business, organization,
project, or operation of interest that
includes a level of risk in acting on an
opportunity that has not previously
been established.
Entrepreneurial Venture
Type of Entrepreneur Approach to Venture
Innovators Find new approaches, methods, or products that
add value through solving a problem in a unique
manner
Creators Make something new or see a problem that other
people have not noticed
Market Makers Innovate or reinvent their market from a future

perspective by asking what the market could
evolve into
Expanders and Scalers Seek out opportunities to expand upon previously
created methods, processes, or products
Types of Entrepreneurs
Identifying the problem—and testing the potential,
novelty, and feasibility of your solution—is an important
part of resolving the problem. Often, when we start to
explore the problem, we find that it has multiple causes.
Among them are:
• The need for something to be better, faster, or easier
• The effects of changes in world on your industry, product,
or service
• Market trends based on geography, demographics, or the
psychology of the customers
The Entrepreneur as a
Problem Solver

Overview of Entrepreneurship

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Overview of Entrepreneurship

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Overview of

Elements of a Business Opportunity

Perceiving and Sensing Opportunities

Factors Involved in Sensing

3. Vision and creativity

HOW TO DEVELOP A VALUE

TEMPLATES FOR WRITING

TEMPLATES FOR WRITING

TEMPLATES FOR WRITING

TEMPLATES FOR WRITING

Idea and Opportunity

How do you choose the right

How do you choose the right

Why Do Entrepreneurs Do It?

Entrepreneurial Risk and the Importance

Small Business Owners

Market Makers Innovate or reinvent their market from a future

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