ENTREPRENEURSHIP MANAGEMENT
Beyond the formal definition of a small analysis make use of analytical thinking. For
business, what four points can be used to example SWOT (Strengths, Weaknesses,
describe a small business? Opportunities, and Threat) Analysis
● Owner is usually the manager Creative Thinking - refers to thought
● Business operate in one or very few processes that bring about the discovery of
locations new ideas. Unlike critica thinking, it does not
● Business typically serves a small follow systematic or analytical process since
market it looks at things from different perspectives.
● Business is not in its dominant field Sometimes, creative ideas start from a
dream, an insight, or from mere
How can small businesses compete observation.
successfully with larger businesses?
Strategic thinking - involves thought
● Smaller businesses are able to process that assess current situation that
provide more personalized products can be useful in the formulation of plans. It
and services to their customers is critical thinking since it uses an orderly
● They are able to provide products and logical system in its assessment. But it
and services where smaller orders also resembles creative thinking in its
and projects are required and tend growth and future orientation.
to fill unique customer needs, which
larger companies do not provide. THREE LEVELS OF COMPETENCIES
WHICH ALL ENTREPRENEURS NEED:
COMMON REASONS FOR SMALL
BUSINESS FAILURE 1. Personal competencies - these are
● Not keeping adequate records your abilities to ground yourself so
● Not having enough start-up money that you are secure and self-assured
● Lack of management experience in whatever situation you may find
● Lack of experience with the type of yourself.
business
● Not controlling operating expenses Example: creativity, determination, integrity,
● Poor location for the business self criticism
● Failure to manage credit offered to
customers 2. Interpersonal competencies -
these are your ability to lead,
ENTREPRENEURIAL DECISION MAKING influence, communicate, supervise,
negotiate, and control people at all
Critical Thinking - refers to the systematic levels. It is the ability to get along
and rational way of providing an answer to a with people and motivate people to
question. It also explains what is going on. perform jobs. Entrepreneurs must
In business, critical thinking is useful in effectively manage people.
explaining how a firm can survive and
remain stable. Many tools in business
ENTREPRENEURSHIP MANAGEMENT
Example: communication, engagement, activities, including the management of
delegation human, physical, technological, and
financial business of the business.
3. Business competencies - these
are set abilities and knowledge that DEVELOPING A BUSINESS PLAN
setsa company apart from ● The owners of successful business
itscompetitors it also refers to the develop a and follow a business plan
key characteristics that successful ● The owners of business that fail
entrepreneurs should have to be usually do not have a business plan
successful.
STEPS IN DEVELOPING THE BUSINESS
Example: business vision, financial PLAN
management, networking ● Gather and review information
● Develop the strategic alternatives
ENTREPRENEURIAL PROCESS ● Write the plan and have an export
● Review the plan prior to its
It is im[ortant to formulate a strategy, which completion
should include an articulation of a plan and
how this is going to be implemented. This WHAT IS A BUSINESS PLAN?
entrepreneurial disipline is often referred to A business plan is a written description of
as the entrepreneurial process, which the business data and how it will be carried
involves several stages from the awareness out, including all major business activities.
of an opportunity to the realizatioon of a
business idea. The steps include the Elements of a Business Plan
following:
1. Description of the business
Discovery - refers to the recognition of a ○ The business idea
business idea on the detection of ○ Major products and services
opportunities that could make money for the ○ Ownership structure
entrepreneur. ○ strengths/weaknesses
○ Long- and short- goals
Development of concept - gives more
details on how the general business idea 2. Customer analysis
can be realized. ○ Description of customers
○ Location, number, and
Organizing Resources - Describes the resources of customers
process of identifying, sourcing, and ○ Sales forecasts
financing human, non-human and other
resources needed for the conduct of 3. Operation plan
business. ○ Organization of the company
○ Description of major
Implementation - the process of carrying operations
oiit the business plan. It covers several
ENTREPRENEURSHIP MANAGEMENT
○ Analysis of resources
needed
○ Human resource planning
4. Marketing plan
○ Description of major
marketing activities
○ Description of marketing
activities
○ Schedule of marketing
activities
5. Fiscal plans
○ Start-up costs
○ Short- and long-term
financial needs
○ Source of financing
○ Budgets and financial
statements
