Académique Documents
Professionnel Documents
Culture Documents
WEEK 1
2. Number of employees
Micro:1 -- 9 employees.
Small:10 99 employees.
8. Inappropriate location
9. Management Incompetence.
10. Poor Market access
11. Lack of Infrastructure
12. Bureaucratic procedures
13. Severe global competition
WEEK 2
Attributes of Entrepreneur
Attributes of an entrepreneur
1. Entrepreneurship comes form entrepedre to innovate.
2. Intrapreneur Internal corporate entrepreneur
3.Home based entrepreneur reduce expense on home based business
Key terms associated in entrepreneur.
1. Ideas and ability to make it happen in real life.
2. Business skills
3. Assumes risk
4. Desires for profit.
Characteristic of the average Filipino entrepreneur
1. First born or eldest in the family
2.Married individuals
3.Men still out numbers women
4. Entrepreneur starts on their thirties early for men and late for women
5. Creativity, Independence and ability to handle uncertainty emerges on teenage years.
6.Bachelors degree or college degree
7.Need for independence
8.Strong relationship to their parents
9.Need for luck
10.Entrepreneur and Venture capitalist are always on conflict.
11.Professional management throught external
12. Take prides on being DOERS.
13.Calculated Risks
14. Fit in the crowd
15. Falls in love with new ideas, new employees and new financial plans.
16. Rarely concentrates on one business venture.
5 characteristic of successful entrepreneurs.
1.Drive most important attribute.
2.Thinking ability encompasses creativity, criticial thinking, analytical and originality.
3.Aptitude for human relations Personality and ability to motivate other role players.
4. Communication Skills ability to make yourself understood.
5.Technical skills Strategic management Skills
Roles of an entrepreneur
- Perceives Opportunities
- Take Risks
- Mobilizes capital
- Introduces Innovation
- Organizes labor and production
- Makes decision
- Plans ahead
- Sell products for profit
Types of Entrepreneurs
1. Type A Idea person
2. Type B Crusader / Change the world
3. Type C Independent / Business according to his lifestyle
4. Type D Looks out for Ideas, waves and opportunites for financial reward
Basic skills of an entrepreneur
1. Ideation Ability to generate ideas
2. Creativity Ability to produce something new from imagination
3. Innovation doing something new or different
Factors of Success
1. Entrepreneur Dimension ( ED ) Refers to the entrepreneurs qualities and
technical skills
Personal Quality
Self confident
Achievement oriented
Hardworking
Prefers moderate risks
Technical skills
Visioning / Goal - setting
Organizing
Implementation
Evaluation
- Strategic planning
- Business plan
- Drive and desire
- Business experience
- Good education.
WEEK 3
ENTRY OPTIONS
3. Buy out Buying of existing business for sale and appliying innovations and
improvements.
4. Start Up business Started from scratch
Types of Start up business
1. Distributorship Agreement to distribute a product without tradename participation
2.Rack Jobber Agreement to a parent company to market its good to various stores.
3. Wholesaler Directly buys from a producer and sells in bulk
4. Subcontracting Agreement or contract to have a responsibility on particular
aspects of operation.
Stage of companys development / Life cycle.
1. Birth stage seed capital is needed at this stage.
Establishing firms
Getting Customers
Finding the money
2. Breakthrough stage/ Early Growth Stage Early financing is need at this tage and
its coping for growth and take off.
Working on finances
Becoming profitable
Growth
3. Expansion stage/ Maturity stage Funds for expansion into new market or product
line are needed at this stage. Venture capital are also helpful for finances. This stage is
for investing wisely and staying flexible
Refining Strategy
Continuing Growth
Managing for success
Causes of business failure
- undercapitalization
- Poor business location
- Negligence of public policy
- Unprepared to risk
Capital Requirements.
1. Fixed Capital Money needed to purchase fixed assets or capital goods ( machinery
, buildings, office equipments and others )
2. Working Capital Funding of day to day operations and short term like payroll ,
utilities, etc.
3. Growth Capital Funding expansion and diversity changes.
Sources of Capital
Formal Sources Borrowing funds form instituions.
Informal Sources Not mandated by law examples are relatives. Outside the financial
system.
Republic Act 6977 MAGNA CARTA for small entreprises. Only for small and medium
enterprises. This funds could be availed by single prorprietorship, partnership,
cooperatives or corporations
a. Micro-enterprises Less than P50,000.00 b.Cottage Industries P50,001500,000
c. Small Enterprises P500,001 P 5,000,000 d. Medium enterprises P5 M P 20 M
Republic Act no. 6810 is establishing MAGNA CARTA for barangay and countryside
enterprise with exemptions from any and all government rule.
Long term Borrowing ( banks, mortgage houses )
1. Mortgage Collateral borrowing.
2. Bonds Government promise for interest with fixed amount.
3. Long term commercial papers Guaranteed returns regardless of operation
outcome.
Short term Creditors 1. Commercial Banks Duty bound to provide both short term and long term financing.
2. Merchandise Suppliers Credit terms with your supply.
3. Credit Card companies Most convenient and most expensive loan terms.
4. Capital equipment supplier Desires to sell equipment and give favorable terms
because the equipment secures the loan.
5. Leasing Companies Arrange procurement of capital items
6. Receivable factors Selling of receivables
7. Deferral of payables Lagging behind in payment on payables.
8. Venture Capital Companies Private and for profit organizations that provide funds.
b. Wholesalers
c.Agents