Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&1ENTREPRENEURSHIPMary Pauline J. MuscaInstructor, Entrepreneurship and Business PlanningAn IntroductionAn IntroductionEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&2ENTREPRENEURSHIPThe word entrepreneur originates from the French word entreprendre which means to undertake or to begin somethingIn business conte!t to start a business.Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&)ENTREPRENEURSHIPIs a process through which indi"idua#s identif$ opportunities% a##ocate resources and create "a#ue&is the practice of starting new businesses or de"e#oping new products or ser"ices&Is the utilization of both material and manpower resources with the end purpose of generating income or profit&Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts ReseredEntrepreneurship is more than a word& It is a mission& 'e must percei"e opportunities inherent in change( we must create a desire for pursuing the opportunities that arise( andwe must create an en"ironment in which success is possible and the conse)uences of fai#ure are to#erab#e& *Professor Robert HisrichEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&$WHAT I !"I#$%!usiness+bu$ing and se##ing of products and ser"ices&Product+e!ists in nature or is made b$ human beings and is tangib#e&er&ice+work that pro"ides time% ski##s% or e!pertise and is intangib#e&Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&*WHAT I A# $#T'$P'$#$"'%$mployees+earn their #i"ing working for someone e#se,s business&$ntrepreneurs+earn their #i"ing starting% owning% and working for their own business&Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&"Entrepreneurs -dd .a#ue to Scarce Resources- scarce /#imited0 resource is something of "a#ue that can be used to make something e#se or fi## a need&Entrepreneurs add "a#ue to scarce resources b$ shiftin( them from areas of lower to hi(her producti&ity.Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&%TH$ $)*#*MI) +"$TI*#What shou#d be produced1When wi## it be produced1How wi## it be produced1Who wi## produce it1Who gets what is produced1-n economy is a countr$,s financia# structure& It is the s$stem that produces and distributes wea#th&Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&+'h$ 2e an Entrepreneur1,ontrol oer ti-eEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&10'h$ 2e an Entrepreneur1Fu#fi##mentEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&11'h$ 2e an Entrepreneur13reation45wnershipEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&12'h$ 2e an Entrepreneur13ontro# o"er compensationEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&1)'h$ 2e an Entrepreneur13ontro# o"er working conditionsEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&1#3osts and 2enefits of Entrepreneurship)*T)*T2usiness fai#ure5bstac#es6one#inessFinancia# insecurit$6ong hours4hard work!$#$,IT!$#$,ITIndependenceSatisfactionFinancia# rewardSe#f7esteemEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&1$)*T-!$#$,IT A#A./I)ost-!enefit Analysis+#isting costs and benefits in order to make decisions that are not emotiona# )osts+mone$ and time in"ested!enefits+mone$ earned and know#edge and e!perience gained*pportunity )ost+cost of the ne!t7best in"estmentFor cost/benefit analysis to be accurate, opportunity cost must be included.Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&1*Entrepreneurship 5ptionsTraditiona# for7profit enterpriseSocia# entrepreneurship inc#uding "enture phi#anthrop$8reen entrepreneurshipEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&1"0 MAJ*' T/P$ *, $#T'$P'$#$"'*)IA. $#T'$P'$#$"'A social entrepreneur is motivated by a desire to help, improve and transform social, environmental, educational and economic condition&Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&1%0 MAJ*' T/P$ *, $#T'$P'$#$"'$'IA. $#T'$P'$#$"'A serial entrepreneur is one who continuously comes up with new ideas and starts new businessesEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&1+0 MAJ*' T/P$ *, $#T'$P'$#$"'.I,$T/.$ $#T'$P'$#$"'A lifestyle entrepreneur places passion before profit when launching a business in order to combine personal interests and talent with the ability to earn living.Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&200 MAJ*' T/P$ *, $#T'$P'$#$"'Trepsyoung lifestyle entrepreneurs! "#!$# years oldEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&219oseph Shumpeter,s Sources of 5pportunit$Use a new technolo(y to produce a new product&Use an e!isting techno#og$ to produce a new product.Use an e!isting techno#og$ to produce an o#d product in a new way.Find a new source of resources to produce more efficient#$&:e"e#op a new mar1et for an e!isting product&Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&22#ot All Ideas Are #ot All Ideas Are *pportunities*pportunities-n opportunit$ is an idea that is based on what customers need or want and are wi##ing to bu$ sufficient#$ often at a high enough price to sustain the business&Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&2)Timmon,s 2usiness 5pportunit$;Idea < = 3haracteristics>& -ttracti"e to customers?& 'i## work in the business en"ironment@& 3an be e!ecuted in an e!isting window of opportunit$=& Resources and ski##s to create the business a"ai#ab#e to the entrepreneurEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&2#Use S'5T to E"a#uate 2usiness IdeastrengthsWeaknesses*pportunitiesThreatsEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&2$'**T *, *PP*'T"#IT/'**T *, *PP*'T"#IT/>& Prob#ems?& 3hanges@& In"entions=& 3ompetitionA& Techno#ogica# ad"ances%here others see problems, entrepreneurs recognize opportunities.Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&2*PATHWA/ T* $#T'$P'$#$"'HIPStart from the beginning2u$ an e!isting businessSecure franchise rights6icense techno#og$/:o not stea# someone e#se,s creati"it$0Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&2"P'*,IT I TH$ I2#A.Profit+amount of mone$ earned after costs are paidProfit signals that an entrepreneur is adding value to scarce resources.Entrepreneurs try to ma&e choices 'trade!offs( that will increase profit.Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&2%'ules for !uildin( a uccessful !usiness>& RecogniBe an opportunit$?& E"a#uate it with critica# thinking /S'5T0@& 2ui#d a team=& 3reate a business p#anA& 8ather resourcesC& Estab#ish ownershipD& 3reate wea#thEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&2+$#T'$P'$#$"'HIPI# TH$ PHI.IPPI#$Entrepreneurs and SEE,s are the backbone of our econom$& Sma## and medium7siBed enterprises /SEE0% inc#uding micro7enterprises% account forF)) percent of all business establishments*# percent of the e+porting firms in the Philippinesemploy about ,, percent of the Philippine labor force $# percent to total domestic sales volume.Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&)0e"er$ >HH chi#dren enro##ed e"er$ $earCC wi## comp#ete e#ementar$ education=? wi## finish high schoo#>= wi## earn a co##ege degree3enter for -sia Pacific StudiesEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&)1on#$ D&DI of graduates get emp#o$edout of >HH chi#dren that goes to schoo#% on#$ one wi## end up getting a JobSmart 3ommunications Stud$Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&)2P'*!.$M *, ,I.IPI#* P'*!.$M *, ,I.IPI#* $#T'$P'$#$"'3$#T'$P'$#$"'3inade-uate access to technologyfinancing capitalmar&eting advicelogistical problemsEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&))SOCIO-ECONOMIC BENEFITS OF ENTREPRENEURSHIPPromotes se#f7emp#o$mentEobi#iBes capita#Pro"ides ta!es to the econom$Empowers indi"idua#sEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&)#SOCIO-ECONOMIC BENEFITS OF ENTREPRENEURSHIPEnhance nationa# identit$ and prideEnhance competiti"e consciousnessImpro"es )ua#it$ of #ifeEnhances e)uitab#e distribution of income and wea#thEntrepreneurship, 2nd EditionMariotti and Glackin with NFTE 2010 Pearson Education, Upper Saddle Rier, N! 0"#$%&'ll Ri(hts Resered&)$Thank $ou or 6istening&E!pect a KuiB Ne!t week&&