Final entrep ppt.

ENTREPRENEURIAL AND

BUSINESS MANAGEMENTDARPO BULACAN AND PFCCO-CLRL

JUNE 3-6, 2014

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DEFINITIONS OF AN ENTREPRENEUR

• Joseph Schumpeter :

“ Individuals who introduce something NEW in the market or economy”

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ENTREPRENEURSHIP…Joseph Alois Schumpeter (1934)

Entrepreneurship is seen as new combinations including the doing of new things or the doing of things that are already being done in a new way.

New combinations include 1) introduction of new good, 2) new method of production3) opening of a new market4) new source of supplies5) new organizations.

Austrian-Hungarian-American economist

and political scientist.

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Entrepreneurship research seeks to understand how opportunities to bring into existence future goods and services are discovered, created, and exploited, by whom, and with what consequences.

Venkataraman,Ramaswa (1997)

an Indian-born American and British structural biologist, who shared the 2009 Nobel Prize in

Chemistry with Thomas A.86

ENTREPRENEURSHIP…is more than a word. It is a mission.

capacity for innovation.

investment and expansion of new markets products and techniques

invest resources to make something unique.

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Ang "ENTREPRENEURSHIP" ay

isang siyensya at pag-aaral ng pangangalakal ng

mga bagay bagay at paglilingkod sa maaaring

makapagpaunlad ng kabuhayan ng isang tao.

“QUALITY OF LIFE”


• Derived from French word Entreprendre

• Peter F Drucker: “One who considers the

changes that take place in market as an opportunity to do business”

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• New encyclopaedia: “An individual who bears the risk of operating business in the face of uncertainty about the future conditions”

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ENTREPRENEURSHIP IS ABOUT

• Opportunity identification

• Ideas generation

• Risk taking (Calculated risk)

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• Wealth creation• MONEY : Cash flow

and Profitability

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• Discipline • Growth and sustainability• Falling and rising

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ENTREPRENEURS ARE BORN NOT MADE ?

YES OR

NO

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Steve Welch is a Pennsylvania businessman who ran as a Republican for the United States Senate in the 2012 election, losing to Tom Smith in the primary.[1]

Welch was endorsed by Governor Corbett, State Republican Party, Philadelphia Inquirer[2] and Pittsburgh Post Gazette.[3]

Welch was raised in Chester County, Pennsylvania, where he still resides in the borough of Malvern.[4] Welch, a former Democrat, graduated from Unionville High School and earned an engineering degree from Penn State University.[5]

In 2001, he founded a pharmaceutical company, Mitos, that made flu vaccines more efficient.[5][6] Welch sold Mitos to Parker Hannifin in July 2007.

He later founded two other companies, DreamIt Ventures, which helps new businesses get started, and KinderTown, an educational technology business.[5]

In 2013 Welch sold KinderTown to Demme Learning.Forbes ranked DreamIt Ventures the number 3 accelerator in the world.[7]

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http://en.wikipedia.org/wiki/Republican_Party_(United_States)

http://en.wikipedia.org/wiki/United_States_Senate_election_in_Pennsylvania,_2012

http://en.wikipedia.org/wiki/Tom_Smith_(Pennsylvania)

http://en.wikipedia.org/wiki/Steve_Welch

http://articles.philly.com/2012-04-08/news/31308556_1_senate-aide-car-washes-government-spending


http://www.post-gazette.com/stories/opinion/editorials/welch-for-the-gop-the-endorsed-senate-candidate-is-best-of-the-bunch-631684/


http://en.wikipedia.org/wiki/Chester_County,_Pennsylvania

http://en.wikipedia.org/wiki/Malvern,_Pennsylvania


http://en.wikipedia.org/wiki/Democratic_Party_(United_States)

http://en.wikipedia.org/wiki/Unionville_High_School_(Kennett_Square,_Pennsylvania)

http://en.wikipedia.org/wiki/Penn_State_University


http://en.wikipedia.org/wiki/Influenza

http://en.wikipedia.org/wiki/Vaccine



http://techcrunch.com/2013/08/15/educational-app-store-for-parents-kindertown-acquired-by-demme-learning/


ENTREPRENEURS ARE BORN OR MADE ?

• There is an entrepreneur side of every human being

• On a daily basis we are consciously or unconsciously doing either, some or all of these;

Conceptualizing Selling Buying Negotiating.

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.

• Conceptualizing, selling, buying and negotiating are all rudiments of business

therefore if we do any of these every now and

then, we may not be wrong to simply say that by nature every man or woman has business basics in him or her.

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IT IS IN YOU

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IT IS IN YOU

• Entrepreneurship is in everybody• In some people the entrepreneur side or what

may be referred to as an entrepreneurial spirit or nature must be carefully unlocked or positively energized to manifest entrepreneurship.

• One of the objectives of this seminar is to unlock and energize the entrepreneurial nature of everyone in attendance today.

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IT IS IN YOU

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ENTREPRENEURSHIP

• The key driver of job creation and economic growth.

• It provides many people with career oppoprtunities that better fit their preferences than waged employment.

• It is a response by the significant numbers of people to job losses in the current global financial crisis.

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Economic Development

1. Human resources (labor supply, education, discipline, motivation)2. Natural resources (land, fuel, climate)3. Capital formation (machines, factories, roads)4. Technology (science, engineering, management, entrepreneurship)

ELEMENTS:

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Economic Development

• The improving economy has a lot to do with the Small Medium Enterprise’s impressive performance.

• In the last five years, the MSME sector accounted for about 99.6% of the registered businesses in the country by which 63% of the labor force earn a living.

• Around 35.7% of the total sales and value added in the manufacturing come from MSMEs as well.

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What is an entrepreneur?Entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.

The entrepreneur leads the firm or organization and also demonstrates leadership qualities by selecting managerial staff.

Management skill and strong team building abilities are essential leadership attributes for successful entrepreneurs.

Entrepreneurs emerge from the population on demand, and become leaders because they perceive opportunities available and are well-positioned to take advantage of them. An entrepreneur may perceive that they are among the few to recognize or be able to solve a problem.

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What is an entrepreneurship?

Entrepreneurship defined as:

"one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods".

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Exercise 1

• Self-Assessment

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WORKSHOP

If you have been able to answer “yes” to 18 of the above questions then you have the potential to successfully start your own business.

If you answered less than 18 questions “yes” then look for supplemental help in the areas you answered “no” to by improving your own skills, hiring help or finding a business partner that is skilled in that area.

It takes a variety of different skills to successfully run a business, so look at each question to which you answered “no” as an opportunity for improvement.

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Types of Entrepreneur

Social entrepreneur – motivated by desire to help, improve and transform social, environmental, educational and economic conditions

Serial entrepreneur – comes up with new ideas and starts new business

Lifestyle entrepreneur – places passion before profit when launching a business in order to combine personal interest and talent with ability to earn a living. 109

Forms of Entrepreneurship

1. Social Entrepreneurship (Panlipunan)

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2. Business Entrepreneurship (Pangkabuhayan)

3. Techno Entrepreneurship (Teknolohiya)

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Driving Economic Growth and Prosperity

1. Social Business Mix

NGO(non-profit)

NGO(for-profit)

SocialEnterprise

Social Business

BusinessEnterprise

CSR

Profit Maximization

Business (PMB)

Business Enterprise

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Non-Government/al Organization

Social Entrepreneurship

• “Any creative and innovative solution applied to solve social problems” (Mohammad Yunus, 2007)– It involves social mission– Profit and/or entrepreneurial processes

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Banker to the poorMohammad Yunus,

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• “Search for approaches to move poor people out of poverty beyond welfare-based safety nets.”

Social Entrepreneurship

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social entrepreneurs are driven not by money but by content, risk‐

taking, implementing innovative ideas,

fulfilling social missions.

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Painters, actors, musicians, writers and all other cultural professionals always look beyond the usual, they create and take actions, use their imagination to make something new.

It is important to outline that entrepreneurs are those who not only invent and implement an innovative idea, but bring it to an economically successful end, considering the marketviability and the positive financial impact on community members.

• Mother Teresa did what no other person has done before – to take care of the poor, destitute and lepers

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• Sir Edmund Hillary was first to conquer Mt.

Everest

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• Sir Edmund Hillary came back to Nepal and helped the Sherpas improve their

living conditions.

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Why are they entrepreneurs?

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Social entrepreneurship overcomes the gap between the business and the public sectors, as it is connected to the “non‐profit” or the “third” sector, as well as to the concept of the“social economy”, with emphasis onobjectives to serve communities and society rather than generating a company’s profit.

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Derived from theFrench entreprendre, " to undertake".Someone who is willingand eager to create a newventure in order to present aconcept to the marketplace.

Entrepreneur –

COOPERATIVE ?

Is it a Social Entrepreneurship?

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2. Business Entrepreneurship

• It’s about the study of systems, structure, and staffing to make a large corporation stay competitive, innovative, and profitable on a sustainable basis.

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Start

Growth Decline

Survival /

Failure

ENTREPRENEURIAL MANAGERIAL

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The business cycle according to Larry Farrel – int’l expert on

entrepreneurship

No longer excellent!...

• In 1983, there was the book In Search of Excellence by Tom Peters and Waterman. It sold 6 million copies. Then...

• Something went wrong...

Oooopppsss!!!

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• 33% of the “Excellent” Companies vanished• Too big to fail companies• Where are they now?:

Washington MutualCAP educational planPacific BankBanco Filipino

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Vanishing giants

Dinosaurs of the corporate world

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ENTREPRENEURIAL COMPANIES

• Keeping the Sense of Mission alive as you grow

• Re-instilling customer/product vision in every employee

• Fostering high-speed innovation• Making self-inspired behavior

the organization standard

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BUSINESS

ENTREPRENEURSHIP

Entrepreneur (Self)

TIMEIDEA REALITY

Resources Opportunity

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Three Competencies of the Complete Entrepreneur

ORIGINATOR

innov

ator inspirer

OPERATOR ORGANIZERimplementor

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(nagbigay simula)

(nagbibigay sigla)

(tagapagpatupad)(namamahala/Nagpapalakad)

(nagtatag)

Nagsimula ng pagbabago)

Growth (Pag-unlad)

Differentiation

(Pagkakaiba)Strategic direction

matalinong pagplaplano

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Complete Entrepreneur

Compelling ReasonsWhy We Need Entrepreneurs

• 90% of the world’s jobs are created by entrepreneurs

• Source of new products and innovation• In the third-world countries, the entrepreneurs

keep the sagging economies alive• It’s the entrepreneurs – not the central bank –

that keep the economy moving• Finally...

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...in the PhilippinesENTREPRENEURS BRING

ECONOMIC GROWTH

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ENTREPRENEURS IN THE PHILIPPINES

ENTREPRENEURSHIP: is a LIFESTYLE CHOICE

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Millions have done it . . . millions are dreaming of doing it! Why not become your own boss? Individuals are increasingly choosing to go into business, start their own company, work for themselves and create their own job as an alternative means of taking the future into their own hands.

Entrepreneurship in the Philippines: Issues from a Global Perspective

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Other trivia:• Battle of the sexes:

– 51% of all businesses are started by women

– 55% of all businesses are run by men

– Of the nascent(growing) businesses, 60% are run by women

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honesty ( katapatan)

(KALIDAD)

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QUALITIES of ENTREPRENEURS

courage ( lakas ng loob) integrity (integridad/ dangal)

punctuality ( maagap) self-discipline humility

CHARACTERISTICS OF ENTREPRENEURS pag-uugali

Reasonable risk –taker. enjoy challenges. But they are careful and calculating.

( makatuwiran pakikipagsapalaran)

Self –confident - have a strong faith in their abilities. Strong belief, affirmative thinking or optimistic.

They always think SUCCESS!!! Nothing is Impossible.

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Hardworking - Successful people always attribute their success to hardwork.

Like Thomas A. Edison, said that success is 99 percent of perspiration

and 1 percent inspiration.

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Innovative (Malikhain)- Entrepreneurs are creative. They do things in new and different ways.

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Leadership - Entrepreneurs are leaders by the nature of their function.

Essential qualities of a Leader: Selfless dedication (lubusang paglilingkod)

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Purpose and vision (magandang layunin at adhikain)Courage (tibay at lakas ng loob)Conviction (matuwid na pagpapasya)Enthusiasm (sigla at interes sa ginagawa)Integrity (dangal)Tact (maayos na pakikitungo)Hardwork (masipag)

Optimistic- Entrepreneurs are positive thinkers. They think of success and bright sides.

Success begets success. Dr. Charles Flory, an american physiologist, said that wealth does not always come to the most intelligent or to the most ambitious individuals, but those individuals who think MONEY…..

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But being an entrepreneur you always think SUCCESS.

Decision-makers -

Entrepreneurs make decisions. They cannot avoid this. Being creative and innovative, they always make decision on how to improve their products how to create new markets, how to increase consumers satisfaction or how to maximize profits.

The success of their business depends on their ability to make the right decisions.

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6 distinct phases in DECISION - MAKING

1.identifying the problem2.gathering the data about the problem3.analyzing the data 4.formulating alternative solutions5.selecting the best solutions and 6.implementing the solution/ decision.

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DETERMINANTS OF Successful entrepreneurship

The Entrepreneur must possess the following managerial skills:

1. Ability to conceptualize and plan. The entrepreneur must view all the aspect of the business , such as product, price, cost, inventory.

He must be able to plan for the total operation of the business.

He has the ability to foresee future problems of his business is an excellent asset.

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2.Ability to manage others..

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Management is getting things done by others.

as business grows, more people are needed. The entrepreneur must be able to organize work properly so that his employees can perform their jobs efficiently and effectively.

Good human relations and communications are very important for the entrepreneur.

By letting others achieve the objectives of the enterprise

The entrepreneur is a generalist. When a business is still small, The owner

does everything: Clerk, salesman and manager.

he should be an expert on time management.

he should acquire basic training in small business management and specialized courses in accounting, finance, marketing and personnel relations.

3. Ability to manage time and to learn.

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A real entrepreneur does not actually stop learning.

He can do this my reading, attending seminars, or enrolling in college

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4. Ability to adapt to change.

Not a few individuals resist change. They stick to traditional or established practices. This is the culture of many Filipinos, particularly the unschooled.

A businessman who refuses to adapt his operations to changing needs and tastes of consumers is most likely to fail.

Entrepreneurs, being innovative or creative, quickly respond to changes for comparative advantage.

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ENTREPRENUER

BUSINESSMAN

WHICH ONE ARE YOU?

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Successful EntrepreneursDemonstrate:• a great deal of INDEPENDENCE

and SELF-DISCIPLINE;• a good measure of

SELF-CONFIDENCE;• an above-average aptitude for

DECISION MAKING andPROBLEM SOLVING;

• a propensity for RISK TAKING;• FLEXIBILITY and

ORGANIZATIONALSKILLS;

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a great deal of PERSEVERANCE, unflagging TENACITY;

• a great CAPACITY FOR WORK

and boundless ENERGY;

• a great deal of SELF-CONTROL and TOLERANCE;

• OPTIMISM and ENTHUSIASM;

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• LEADERSHIP skills and aDYNAMIC personality;

a facility for COMMUNICATION,

PUBLIC RELATIONS and SALES

OPEN-MINDEDNESS and FREE SPIRITEDNESS.

BUSINESSMAN

ENTREPRENUER one who organizes, manages, and assumes the risks of a business or

enterprise

a man who transacts business

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Some Insights “I can buy you everything you want but I cannot buy you knowledge. The best I can do is to give you everything you need to acquire that knowledge. And that, I have given you. The rest is up to you.”“The rest is up to me” … those words hit me like a ton of bricks. “

“Belief … passion … and knowledge—a few important values that I was to bring back to the Philippines.”

“Be humble. Don’t look at the money, but rather, look at what you really want to do and the amount of learning and growth you would get.

Vivienne Tan – Daughter of Lucio Tan155

Portrait of an Entrepreneur

Exercise 2

Identify the part of your body manifest the portrait of an

entrepreneur . Why ?

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TOP 3 BODY PART/S WHY

1 Brain For generating Ideas

2 EAR /EYES For listening to the advice of those w/ knowledge & experience. For seeing opportunities

3 Heart For the passion, commitment & perseverance

EXERCISE 2

Identify the part of your body manifest the portrait of an entrepreneur. Why?

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Body Parts:Sharp eyes- for seeking out opportunities Wise eyes- for establishing a vision and setting goalsWrinkles- for smiling during the fun times Brain- for generating creative, innovative ideasEar- for listening to the advice of those with knowledge and experienceGlands- for adrenaline: for the rush / for sweat: during hard workNeck- for sticking out and taking calculated risksArms- for hugging members of the team that will determine your successFingers-for counting the positive learning opportunities from any mistakes, failures

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Body Parts: Heart- for the passion, commitment and perseverance to stick with it Knee- for bending and praying Strong foot- for kicking butt when neededFleet feet- for moving ahead, keeping ahead and walking paths of adventure Strong legs- for leaping over the many barriers and obstacles you will encounter Deep pockets- to cover the unexpected Hands- for shifting gears when necessary Backbone- for the confidence to believe in one's self and to move aheadMouth- for effective communication and being able to sell an ideaNose- for smelling signs of trouble and forseeing possible problemsGood ear- for keeping to the ground and sensing change and opportunity 159

Characteristics

Exercise 3

What are the characteristics you possess in relation to your

identified body part in helping you become entrepreneur ?

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TOP 3 BODY PART/S WHY123

EXERCISE 2

Identify the part of your body manifest the portrait of an entrepreneur. Why?

EXERCISE 3

What are the characteristics you possess in relation to your identified body part in helping you become entrepreneur?

And describe your characteristics?

TOP 3 Characteristics Description123

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EXERCISE 3

• What are the characteristics you possess in relation to your identified body part in helping you become entrepreneur? And describe your characteristics?

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TOP 10 CHARACTERISTICS OF SUCCESSFULENTREPRENEURS

1. Creativity — have the ability to look at problems and needs

from different angles and “think outside the box”

2. Goal-orientated — constantly set goals for themselves that challenge their creativity and strengths

3. Hard-working — willing to work long hours to complete tasks, go the extra mile

4. Commitment — remain focused on an idea or task

5. Willing to take the initiative — always want to be first, do not sit back and wait for others to take the initiative 163

TOP 10 CHARACTERISTICS OF SUCCESSFULENTREPRENEURS

6. Spirit of adventure — willing to try something new and different, pioneer

7. Positive attitude — do not let minor setbacks hinder their progress toward their overall goal

8. Self-confident — believe in themselves and their idea

9. Persistence — keep working at a problem until they solve it or find an alternative

10. Need to achieve — strong desire to accomplish something in life and leave a legacy

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Characteristics Strong need to achieve and seek personal accomplishment Accept personal responsibility for successes and failures Believes in ability to achieve goalsSelf confidence and self reliance High drive and energy levels Strong sense of commitment Willing to take calculated risks Innovative, creative and versatile Hard working and energetic Tolerates uncertainty Spirit of adventure Independent

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AN ENTREPRENEUR’S CREED1. Do what gives you energy—have fun.

2. Figure out how to make it work.

3. Anything is possible if you believe you can do it.

4. If you don’t know it can’t be done, then you’ll go ahead and do it.

5. Be dissatisfied with the way things are—and look for ways to improve them.

6. Do things differently.

7. Businesses can fail. Successful entrepreneurs learn from failure—but keep the tuition low.

8. It’s easier to beg for forgiveness than to ask for permission in the first place.

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AN ENTREPRENEUR’S CREED

9. Make opportunity and results your obsession—not money.

10. Making money is even more fun than spending it.

11. Take pride in your accomplishments—it’s contagious.

12. Sweat the details that are critical to success.

13. Make the pie bigger—don’t waste time trying to cut smaller pieces.

14. Play for the long haul. It’s rarely possible to get rich quickly.

15. Remember: Only the lead dog gets a change in scenery.

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Characteristics

Responsible Goal oriented PersistentPositive attitude Takes initiative

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Roles

The essence of entrepreneurship is the creation and building of business to exploit a market opportunity. To carry out their directive successfully, the entrepreneur has to take on the following roles: the inventor, who comes up with new products or processes, often combining previously

To ensure their success, all businesses, big or small, perform numerous tasks. Because of limited financial and human resources, sometimes very limited, it is often the owner of a small business or self-employed worker who is in charge of both managing and carrying out all business activities. At one point, the owner will be acting as the director of finance, and later accountant or bookkeeper. At another time the role will be one of director of sales and marketing and then sales person and buying. Being a self-starter and taking initiative, the entrepreneur will have to take on many roles to ensure their success.

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RolesThese roles are as follows:

• Organizer• Inventor• Innovator• Banker• Analyst • Producer• Promoter• Manager• Administrator• Secretary• Designer• Janitor• Mother and Father

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Skills

Exercise 4

• What are the skills that you already have or needs to

improve or needs to acquire to fulfill your dream to become an

entrepreneur ?171

TOP 3 BODY PART/S WHY

1

2

3

EXERCISE 2Identify the part of your body manifest the portrait of an entrepreneur. Why?

EXERCISE 3What are the characteristics you possess in relation to your identified body part in helping you

become entrepreneur? And describe your characteristics.

TOP 3 Characteristics Description

1

2

3

EXERCISE 4

What are the skills that you already have or needs to improve or needs to acquire to fulfill your dream to become an entrepreneur?

TOP 3 SKILLS

Already Have Needs to Improve Needs to Acquire

1

2

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Skills

The challenge for entrepreneurs is to think fast, move quickly and be innovative.

Being Entrepreneurial is learning to challenge andTo reinvent yourself. An entrepreneur requires numerous skills (alone or in combination with one or more members of the team).

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Skills

These skills must be developed and usedoptimally in order to ensure the sound management and success of a business. However, no two entrepreneurs have the same abilities, but in order to start and grow their ventures, research has shown that successful entrepreneurs must acquire thefollowing skills:

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Skills

JOB EXPERIENCE

Every job you have had should have contributed to the development of some business skills. For example,working as an accountant might teach you:

1. How to prepare financial statements2. How to make financial projections and manage money3. How to determine the business’s cash requirements, among other things

Working as a sales clerk might teach you:

1. How to sell2. How to deal with the public3. How to operate a cash register

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SkillsThese skills are as follows:

• Opportunity Identification • Creative Thinking• Researching• Networking• Evaluation and Assessment• Goal Setting• Communication• Innovation• Planning• Organizing• Decision Making• Team Building• Problem Solving• Leadership • Stress Management

• Record Keeping• Financial Management• Financial Planning• Negotiation• Market Analysis• Marketing

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BREAKDOWN OF ENTREPRENEURIAL BUSINESS SKILLS

1. Managing MONEY2. Managing PEOPLE3. Directing Business Operations4. Directing Sales and Marketing

Operations5. Setting up a Business

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1. Managing moneya. Borrowing money and arranging financingb. Keeping financial recordsc. Managing cash flowd. Handling credite. Buying insurancef. Reporting and paying taxesg. Budgeting

2. Managing peoplea. Hiring employeesb. Supervising employeesc. Training employeesd. Evaluating employeese. Motivating peoplef. Scheduling workers

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3. Directing business operationsa. Purchasing supplies and raw materialsb. Purchasing machinery and equipmentc. Managing inventoryd. Filling orderse. Managing facilities

4. Directing sales and marketing operationsa. Identifying different customer needsb. Developing new product and service ideasc. Deciding appropriate pricesd. Developing promotional strategiese. Contacting customers and making salesf. Developing promotional material andmedia programs 179


5. Setting up a businessa. Choosing a locationb. Obtaining licenses and permitsc. Choosing a form of organization and type of ownershipd. Arranging initial financinge. Determining initial inventory requirements

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MANAGERIAL SKILLS INVENTORY

Exercise 5

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Rich Dad Poor Dad

ROBERT KIYOSAKI

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Rich Dad Poor Dad

Rich Dad Poor Dad is a book by: Robert Kiyosaki

It advocates financial independence and building wealth through investing, real estate investing, starting and owning businesses, as well as increasing one's financial intelligence.

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Rich Dad Poor Dad

Rich Dad Poor Dad is a book by: Robert Kiyosaki

Rich Dad Poor Dad is written in the style of a set of parables, ostensibly based on Kiyosaki's life.

Kiyosaki stresses the ownership of high value of assets that produces cash flow, rather than being an employee.

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Rich Dad Poor Dad

• The book is largely based on Kiyosaki's upbringing and education in Hawaii.

• It highlights the different attitudes to money, work and life of two men (i.e. his titular "rich dad" and "poor dad"), and how they in turn influenced key decisions in Kiyosaki's life.

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Rich Dad Poor DadAmong some of the book's topics are:

a) Robert Kiyosaki's personal story b) The difference between assets and

liabilities c) What the rich teach their kids about money

that the poor and middle class do not d) The idea that your primary residence is not

an asset, but a liability e) The value of financial intelligence and

financial literacyselves from frivolous lawsuits, but the poor and middle class don't usually do not know how

f) The importance of investing and entrepreneurship

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Rich Dad Poor Dad

Kiyosaki advocated his former mentor and American futurist, Dr. Buckminster Fuller’s views on wealth, that

- wealth is measured by the number of days the income from your assets can sustain you, and

- financial independence is achieved when your monthly income from assets exceeds your monthly expenses.

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Rich Dad Poor Dad

2 OBJECTIVES

1. How to get out of the Rat Race

2. Pursue your Dream

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Rich Dad Poor Dad

RAT RACE

TRAP

Cycle of Rat Race:

1. FEAR

2. GREED

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Rich Dad Poor Dad

3 TYPES OF INCOME

1. EARNED INCOME

2. PORTFOLIO INCOME

3. PASSIVE INCOME

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Rich Dad Poor Dad

3 TYPES OF INCOME

1. EARNED INCOME

Active Income derived from employment or regular income that you get monthly.

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Rich Dad Poor Dad

3 TYPES OF INCOME

2. PORTFOLIO INCOME

Income derived from investments such as Stocks, Bonds, Treasury Bills and other paper assets.

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Rich Dad Poor Dad

3 TYPES OF INCOME

2. PASSIVE INCOME

Income derived from business aside from your earned income, rentals, royalties, intellectual properties, etc.

Ex. Michael Jackson

You don’t have to work for it 193

Rich Dad Poor DadLessons Learned:

One dad had a habit of saying, “ I can’t afford it”, and the other one says, how can I afford it.”

One dad thought that rich should pay more in taxes to take care of these less fortunate, the other dad says, “taxes punish those who produce and reward those who don’t produce”͘G

One dad recommend, “study hard so you could have a good company to work for”, the other dad says, study hard, so you can find a good company to bu ”yG

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One dad says, “The reason I am not rich is because I have you kids”, the other one says, I reason I must be rich is because I have you kids”

One said, “when it comes to money play it safe, don’t take ris The other one said, “Learn to manage riskkG ”͘G

One believed, “our home is our greatest asset and achievement”, the other one believed, my home is a liability, and if your house is the largest investment, you’re in big trouble”

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Both dad paid their bills, the first one paid his bills first, and the other paid his bills last.

One believed on pay raises, medical benefits, retirement plans, sick leave, vacation days, Tenure system in the university, other believed in total financial self reliance.

One dad struggles to save money, the other simply created investment.

One dad taught me how to write an impressive resume, so I could find a good job. The other one taught me how to write a strong financial and business plans, so I could create jobs. 196


My poor dad said, I’ll never be rich, and the prophecy became realit My rich dad always says, I’m rich, he has yGbecome broke after a major financial setback, he continue sly referred himself as a rich man.

There is a difference between being poor and being broke. Broke is temporary, poor is eternal.

One dad says, acquire the highest position in the ladder. The other one says, why not own the ladder?”.

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“Money is a form of power. But what is more powerful is financial education. Money comes and goes. If you have an education how money works, You gain power over it and begin building wealt ”hG

Robert Kiyosaki

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ARE YOU READY FOR AN ENTREPRENEURIAL CAREER?

What follows is a discussion of a few of the most relevant issues you should consider concerning your degree of readiness and preparedness for

such a career.NEED FOR TOTAL COMMITMENT

MANAGEMENT OF STRESS

ECONOMIC AND PERSONAL VALUES

DEALING WITH THE ETHICAL CHALLENGE

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DEALING WITH THE ETHICAL CHALLENGECODE OF ETHICS

1. We will serve our clients, candidates and employees faithfully, with integrity and professionally.2. We will observe the highest principles of honesty and fair practice in dealing with clients, candidates, employees and all regulatory authorities, and will respect the confidentiality of records in accordance with law and good business practices.3. We will provide leadership in the adherence to both the spirit and letter of all applicable human rights, employment laws and regulations.We will treat all candidates and employees without prejudice and will not accept an order from any client that is discriminatory in any way.4. We will take all reasonable steps to provide clients with accurate information on each candidate’s employment qualifications and experience, and will only present those candidates who have given us authorization to represent their application for employment.5. We will supply candidates and employees with complete and accurate information as provided by the client, regarding terms of employment, job descriptions and workplace conditions. 200

DEALING WITH THE ETHICAL CHALLENGECODE OF ETHICS

6. We will not recruit, encourage or entice a candidate whom we have previously placed to leave the employ of clients, nor will we encourage or coerce an individual to leave any assignment before completion.7. We will not restrict the right of a candidate or employee to accept employment of their choice.8. We will maintain the highest standards of integrity in all forms of advertising, communications and solicitations, and will conduct our business in a manner designed to enhance the operation, image and reputation of the employment, recruitment and staffing services industry.9. We will recognize and respect the rights and privileges of competitors in the true fashion of individual initiative and free enterprise and refrain from engaging in acts of unfair competition.10. We will continually work toward strengthening our business relationships and continually improve our services.

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LO2

Develop Business and Entrepreneurial Activities for

Members.

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FORMS OF SMALL BUSINESS OWNERSHIP, REGISTERING AND ORGANIZING

A. SOLE PROPRIETORSHIPB. GENERAL AND LIMITED PARTNERSHIPC. CORPORATIOND. SSS BUSINESS REGISTRATIONE. PHILHEALTH REGISTRATIONF. PAG-IBIG FUND

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MICRO, SMALL AND MEDIUM ENTERPRISE

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Micro, small, and medium enterprises (MSMEs) are defined as any business activity/enterprise engaged in industry, agri-business/services, whether single proprietorship, cooperative, partnership, or corporation whose total assets, inclusive ofthose arising from loans but exclusive of the land on which the particular business entity's office, plant and equipment are situated, must have value falling under the Following categories:

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BY ASSET SIZE:

category Asset sizeMicro Up to 3MSmall > 3M – 15MMedium >15M – 100MLarge >100M

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BY NUMBER OF EMPLOYEES:

category # of EmployeesMicro 1 – 9Small 10 – 99Medium 100 – 199Large 200 and above

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ROLES OF MICRO, SMALL AND MEDIUM ENTERPRISE

MSMEs play a major role in the country's economic development through their contribution in the following:

Rural industrialization; rural development and decentralization of industries; creation of employment opportunities and more equitable income distribution; use of indigenous resources; earning of foreign exchange (forex) resources; creation of backward and forward linkages with existing industries; and entrepreneurial development.

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They are vital in dispersing new industries to the countryside and stimulating gainful employment. A country like the Philippines where labor is abundant has much to gain from entrepreneurial activities. MSMEs are more likely to be labor-intensive. Thus, they generate jobs in the locality where they are situated. In this sense, they bring about a more balanced economic growth and equity in income distribution.

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They MSMEs are quick in assimilating new design trends, developing contemporary products, and bringing them to the marketplace ahead of the competition. MSMEs tend to be far more innovative in developing indigenous or appropriate technology, which may be grown later intopioneering technological breakthroughs.

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They are able to effectively increase the local content or the value added in final goods that are processed and marketed by large manufacturing firms.

MSMEs are notably skilful in maximizing The use of scarce capital resources and are able to partner with large firms by supplying locally available raw materials in unprocessed or semi- processed forms.

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Also, MSMEs can act as the seedbed for the development of entrepreneurial skills And innovation. They play an important part in the provision of services in the community. They can make an important contribution to regional development programs.

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TYPES OF MICRO, SMALL AND MEDIUM ENTERPRISE

• Appraisal Services• Automotive trouble shooting• Balut/Penoy Pedling• Banana, camote and turon stand• Barbeque stand• Buco salad stand• Burger stand • Butong pakwan, mani stand• Brokerage• Carwash• Cellphone accessories• Cellphone repair• Fishball cart• Fruits and Vegetable stand• Sago, Gulaman• House painting service• Kakanin stand• T.V. Electric fan repair• Vulcanizing shop• Sari-sari store

• Business Plan Feasibility Study Preparation Services

• Duplicating stand• Lugawan• Newspaper stand• Notarial services• Pizza stand• Plumbing services• Tinapa, tuyo, daing stand• Rags production• Re-packing (paminta, vetsin)• Scrap buy & sell• Shoe shine and repairs• Siomai in cart• Sorbetes vendor• Taho production• Turu-turo• Tutorial services• Upholstery• Watch repair

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MANUFACTURING:• Food processing• Bags & Accessory Mfg.• Footwear Mfg.• Furniture Factory• Garment Factory• Handicraft Industries• Jewellery Mfg.• Purified water station• Sash and Decor works• Soap Making• Toy Mfg.

SERVICES BUSINESS:• Accounting Firm• Janitorial Services• Security Services• Collection Agency• Printing Press• Cargo Forwarding• trade Promotions• Merchandising Business

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SERVICES PERSONAL:• Tutorial • Massage Parlor• Spa• Voice Lesson• School Bus• Skin Clinic• Dental Clinic

SERVICES PERSONAL:• Medical Services• Funeral Parlor• Flower Arrangement

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SERVICES REPAIRS:• Auto Repair• Watch Repair• Plumbing Services• Aircon repair

ENTERTAINMENT & RECREATION• Movie houses• Arcade games• Internet Cafe• Resorts• Billiard• Talent Recruitment Agency

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SERVICES HOSPITALITY:• Hotels• Motels• Event Planning• Catering• Travel & Tour

SERVICES EDUCATION:• Pre-School• Grade School• High School• Colleges

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TRADING BUSINESS:• Auto Supply• Boutique• Fish Dealership• Cellphone Dealership• Electrical Store• Grocery Store• Hardware Store• Furniture Store• Gasoline Station• Gravel & Sand• LPG Dealership• Magazine Store• Meat & Poultry Dealership• Medical Supply• Real Estate• Pharmacy• Rice Dealership

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RENTALS • Apartment• Billiard center• Computer Rental• Warehousing

AGRI & AQUA BUSINESS• Broiler Production• Cattle Fattening• Dog Breeding• Poultry Raising• Hog Raising• Honey Bee Production• Quail Raising• Tilapia Raising• Raising Livestock• Graowing Agri plants &

crops• Agri & Aqua Culture

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SEARCH FOR A SOUND BUSINESS IDEAS

A.BEFORE SEARCHING THE BUSINESS IDEA:

i. Assessing the Educational backgroundii. Financial Strengthiii. Commitmentiv. Expertise & Interestv. Personal Qualitiesvi. Prior Experiencesvii. External Contacts & Resources

B.FINDING THE BUSINESS IDEAS

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SEARCH FOR A SOUND BUSINESS IDEAS

C. ASSESSING BUSINESS IDEAS

1) Discuss products/services with prospective customers

2) Assess the market using desk & field research3) Analyze your competition4) Consider possible sart-up strategies5) Set ball-park targets & prepare first –cut financial

projections6) Prepare a simple action plan7) Critically examine ideas from all angles

D. FROM BUSINESS IDEA TO BUSINESS PLAN221

ENTREPRENEURIAL OPTION:

START-UP, BUY OUT OR FRANCHISING

A. STARTING A NEW BUSINESSAdvantages and Disadvantages

B. BUYING AN EXISTING BUSINESS1)Advantages and disadvantages2)How to value a business3)Steps in buying a business

C. FRANCHISING4)Concepts of Franchising5)Types of Franchising6)What does Franchising provide7)Advantages and Disadvantages

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MARKET ANALYSIS AND MARKET RESEARCH

A. ELEMENTS OF OF MARKET RESEARCH

1) Market Information2) Market Segmentation3) Market trends4) Market Size5) Market growth rate6) Market opportunity7) Market profitability

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BUSINESS PLAN (CREATING A BLUEPRINT FOR YOUR BUSINESS)

A. WHAT IS A BUSINESS PLAN?

A business plan is a document that helps the small business owner determine what resources are needed to achieve the objectives of the firm, and provides against to evaluate the results.The business plan is sort of a blue print and it keeps the entrepreneur on the right track. It gives a sense of purpose to the business.

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BUSINESS PLAN (CREATING A BLUEPRINT FOR YOUR BUSINESS)

B. BUSINESS PLAN FORMAT

1) Title page2) Vision Statement3) Mission Statement4) Executive Summary5) Marketing Plan6) Production Plan7) Organizational & Management Plan8) Financial Plan

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WORKSHOP BUSINESS PLAN

BUSINESS PLAN GUIDE QUESTIONS

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9 RULES FOR BUSINESS SUCCESS(JOHN GOKONGWEI)

1. Change is inevitable and flexibility is the key.2. Personal stakes in the company encourage everyone

to work hard.3. Mistakes and disappointments are inevitable.4. Good brand building equals reputation.5. Family support is crucial6. Never lose sleep thinking of business risks.7. Pausing to recharge brings new vigor.8. Reading and travelling enriches one’s mind.9. Philantrophy is a personal satisfaction.

John Gokongwei, Jr. Is 80 years old yet he continues to make his mark in the country. His life is a shining testimony to the great benefits of an entrepreneurial life.

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ACTION PLANActivities Target

dateMilestone

(KRA)

1. Identification of project (business ideas)2. Business Plan Preparation3. Business Implementation

June ___, 2014 Submitted to ______ thru

email

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THANK YOU

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Final entrep ppt.

Business

Transcript of Final entrep ppt.