BATANGAS STATE UNIVERSITY

College of Accountancy, Business Economics and International Hospitality Management

GRADUATE SCHOOL

BA 504 MANAGEMENT AND ORGANIZATION THEORY

Reflection
Jeremiah R. Garcia

ENTREPRENEURSHIP AND NEW VENTURE MANAGEMENT

INTRODUCTION
The topics covered are the nature of entrepreneurship, major issued involved in
choosing strategies, structural challenges and determinants of the performance of small
firms.

LEARNING AND INSIGHTS

Entrepreneurship is the process of planning, organizing, operating and assuming
the risk of a business venture. Entrepreneur is someone who engages in entrepreneurship.
He put his own resources on the line and took a personal stake in the success of failure of
the business.
There are various role of entrepreneurship in the society. (1) Job Creation -
Entrepreneurial business success, more than business size, accounts for most new job
creation. (2) Innovation - History has shown that major innovations are as likely to come
from small businesses (or individuals) as from big businesses.
(3) Importance to Big Business - Most of the products made by big manufacturers are
sold to consumers by small businesses. Small businesses provide big businesses with
many of the services, supplies and raw materials they need.
Business Plan is a document that summarizes the business strategy and structure.
In a business plan, the entrepreneur summarizes the business strategy and how that
strategy is to be implemented. The very act of preparing a business plan forces
prospective entrepreneurs to crystallize their thinking about what they must do to launch
their business successfully and obliges them to develop their business on paper before
investing time and money on it.

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 BATANGAS STATE UNIVERSITY
College of Accountancy, Business Economics and International Hospitality Management
GRADUATE SCHOOL

Financial Planning is the most important component of overall business plan.

Financial Plan – is made up of a cash budget, an income statement, a balance sheet and a
breakeven chart. With a strategy in place and a business plan in hand, the entrepreneur
can then proceed to devise a structure that turns the vision of the business plan into a
reality. Financing is needed to start a business and ramp it up to profitability. There are
several sources to consider when looking for start-up financing. But first you need to
consider how much money you need and when you will need it. The financial needs of a
business will vary according to the type and size of the business. For example, processing
businesses are usually capital intensive, requiring large amounts of capital. Retail
businesses usually require less capital.
There are several ways in financing the New Business. (1) Personal Resources are
the owners personal resources, not loans are the most important source of money.
(2) Lenders – getting money from these sources, however requires some extra effort.
Banks and private investors usually want to see formal business plans. Government loans
have strict eligibility guidelines. (3) Venture Capital Companies are groups of small
investors seeking to make profits on companies with rapid growth potential. Most of
these firms do not lend money. They invest it, supplying capital in return for stock. The
venture capital company may also demand a representative on the board of directors.
I think these are the attributes that a successful entrepreneur tends to possess in
abundance. (1) Innovative – entrepreneurs have a passionate desire to do things better and
to improve their product. Entrepreneurs realize that every event or situation is a business
opportunity, and they’re constantly generating new and innovative ideas. They have the
ability to look at everything around them and focus it toward their goals in an effort to
improve their business. (2) Competitive – an entrepreneur is naturally competitive.
Gaining the competitive advantage isn’t easy and chaos is almost guaranteed, but the
upside outweighs the tough times. (3) Motivated and energetic – an entrepreneur is
inspired to do business and takes the responsibility and full energy towards work. (4)
Openness to change – an entrepreneur is up to date. Entrepreneurs realize every event or
situation is a business opportunity, and they’re constantly generating new and innovative
ideas. They have the ability to look at everything around them and focus it toward their
goals in an effort to improve their business. (5) Risk takers – a true entrepreneurs knows

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 BATANGAS STATE UNIVERSITY
College of Accountancy, Business Economics and International Hospitality Management
GRADUATE SCHOOL

that failing to attempt something is a greater failure than trying and not succeeding. A
true entrepreneur doesn’t ask questions about whether or not they’ll succeed – they truly
believe they will. They exude this confidence in all aspects of life, and as a by-product,
they’re never afraid to take risks due to their unbinding faith that ultimately, they will
triumph. (6) Curiosity – entrepreneur is information seeker. Curiosity channels out of the
box thinking, lets you handle failure and fear of failure, fosters productivity and keeps
you passionate about your work. (7) Open Minded – entrepreneur has the ability to accept
criticism. The smartest and most successful people welcome new ideas and diverse
perspectives, allowing them to see more opportunities ahead of them and better solutions
to problems. Open minded entrepreneurs are able to strategize better because they can
listen to varying viewpoints and look at a problem through multiple lenses. They’re able
to see past ideologies and ego in order to conceive more effective plans. (8) Passionate –
entrepreneurs love their work. They genuinely love their job and are willing to put in
those extra hours to make their business grow; they get a genuine sense of pleasure from
their work that goes way beyond just cash.

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