ENTREPRENEURSHIP

Entrepreneurship - the ability and readiness to develop, organize, and run a business enterprise, along
with any of its uncertainties in order to make a profit.

Economic development - main issue under modern economic and mainly focuses on improving the lives
of people (qualitative)

Features: 4 elements:

• Access to good quality health care. • Human resources

• People shift from agriculture to industry. • Capital information
• Literacy rate. • Natural resources
• Infrastructure. • Technology
• Academic level
• Access to good quality houses

Economic growth - main issue under traditional economic and focus on growing the number produced
(quantitative)

Entrepreneur - they identify economic need, offers business solutions, assembles resources required,
supply the required capital, organized production, decide on the rate of output, bear the risk, and have
freedom for competition

Entrepreneur task: Entrepreneurial degree:

▪ Provide product and services. • Middle level manager

▪ Provides employment. • Sales
▪ Pay taxes. • Research and development
▪ Provide training facilities for potential entrepreneur • Teacher
• Recruiter
• Business reporter
• Business consultant

Innovation - pertains to practical implementation, new product, and substitution of cheaper material in an
unaltered product.

Stages of transition for is successful venture:

1. Pre-start up stage
2. Start up stage
3. Early growth stage
4. Late growth stage

Market Analysis - Qualitative and quantitative assessment of a market. With examines the market size,
various market segment, customer buying patterns, the competition, in the economic environment.
Competitors Market share Costumer mix

Spending group Market segment Market size

Competitors influence Market age/ Maturity

Market segmentation - dividing the total market into smaller group

Market potential - total amount or possible sales in the market

Market place – place where buying and selling activities takes place

Needs - consumers desire for a products or services specific benefits whenever that be functional and
emotional

Maslow’s hierarchy of needs:

• Self-actualization - desire to become the most that one can be

• Esteem – respect, status, recognition, strength, and freedom
• Love and belonging – friendship, intimacy, family, sense of connection
• Safety needs – personal security, employment, resources, health property
• Physiological needs – air, water, food, shelter, sleep, clothing, and reproduction

4 ways to bring your idea to target market:

1. Make your own product

- Allows us unlimited creativity
- We have precise control over our designs, our brand and quality of appeals we produce

Pros : Cons:

• Low start-up cost. • Very time-consuming

• complete control. • Scalability

2. Manufacture
- It requires a front financial investment
- good idea if already tested products in the market and no for sure that it will sell.

Pros: Cons:

• lowest cost per unit. • time complicated and time consuming process

• reasonable control over quality, • minimum order quantity

brand and prices

3. Wholesale
- Buying from a wholesaler simply means that you buy your products and whistle them at
higher price

Pros: Cons:
• brands and products already have a market. • brands rules about price control

• easy to get started. • inventory (counting stocks and product)

4. Dropship
- Dropping model is similar to wholesale with one crucial difference
- Dropshippertics care of the shipping, delivery and inventory management for you
- Just need a website and the way to accept payments

Planning the business - takes place when they stakeholders in a business sit down and flush out of the
goals, strategies and action that they envision taking to ensure the business survival, prosperity and growth.

Why planning is important?

-planning helps entrepreneurs focus on the specific steps necessary for them to make business ideas
succeed, but it also helps them to achieve short term and long term objectives

Manufacturing business selling:

• Product -total cost to the customer. How long the product meets costumers need. How long it takes
for the product to make and to be marketed
• Process – technologies, procedures, systems
• Facility location (criteria planning) - proximity or appropriate distance to target customer,
business climate in the market environment, and total costing
• Facility layout - involves the placement of departments, working station, machines and inventory
storage within the factory
• Job designs- specify word assignment or job description of each employee and group in an
organization. Develops job structures that meet the requirements of organization. Organizational
chart

Sound business idea - the economic opportunity which is within the reach of the entrepreneur and which
will provide with a desirable value. It can save time, effort and money in pursuing business goals. Any
successful business venture today started within the adoption of he sound business idea.

Screening generated ideas through employment of:

1. Market feasibility- projects ultimate marketibility

2. Technical feasibility - assist the details of how you intend to delivery product or service to
customer
3. Financial feasibility - financial possibly
4. Financing feasibility - find your sources for the business

The marketing mix : product, price, place, promotion people, process, physical evidence

1. Product
2. Price mix
3. Place (distribution)
4. Promotion
5. People - talking about human resources
6. Process - the method which your product or service is presented to clients
7. Physical evidence - the environment in which the service is delivered. The environment
where you provide your product or service (either physical or online)