Entrepreneurship vs.

Management

Both the terms are closely related terms in business but there is a considerable difference
between both Entrepreneurship vs. Management processes. An entrepreneur becomes a
businessman in the long run. Management surrounds the large spectrum of organization studies.
In simple management explain each aspect of the organization and it discusses organization and
activity within an organization in order to achieve the desired set of objectives.

An entrepreneur is nothing but the person who starts or develops new enterprises by
taking all other necessary resources together for the production to get started. In the long run,
they also called as a businessman. An entrepreneur is a person who tries to transform an idea
into reality by using available resources. The role of the entrepreneur is very vital, and they have
full power and authority of the business. In short, entrepreneurship is the activity of setting up
business or businesses, taking up financial risk in hope of profit.

Entrepreneur is a person who takes risk and uncertainty of business. Entrepreneur is the
person who leads the organization in the market no matter how many competitors will come later
but their position will remain untouched. Starting a business generally requires business concept,
idea, service new technology, People for support, a process by which service or product will be
delivered, money to run all activities.

Entrepreneurship Activities:

 Creating or planning the new product.

 Entering into new markets and strategizing the next marketing move.
 Finding a new business venture.
 Taking an idea and executing them.

Entrepreneurship is the control and deployment of resources to create and innovative

economic organization for the purpose of profit and growth under the condition of risk and
uncertainty. The successful and sustainable business requires entrepreneurship and innovation.
Entrepreneurship is a mindset an attitude and taking a particular approach to doing things.
Entrepreneurship often requires creativity and innovation while addressing a new opportunity or
concern in a new way.

Some of the Young successful entrepreneurs are as listed below –

1. Ritesh Agarwal – Oravel Stays Pvt. Ltd.

2. Farrhad Acidwalla – Rockstah Media
3. Advait Thakur – Apex Infosys India

Management:
Management is one of the arts of getting things done through and with people in the
formally organized group. So management is an individual person or group of people that accept
responsibilities to run the organization. Management generally brings all the’ (Men and Women,
Money, Machines, Materials, Methods, and Markets) together to run the business and to achieve
the objective organization. Management is responsible to focus on business objectives and see
that the work has been done as per planned.

Some of the key features of Management as listed below

 Getting work done through people.

 Result oriented.
 Leadership skill.
 Time management.
 Its group activity and not an individual activity.
 Separate from ownership.
 Use a professional approach at work.
 Reliability

So management is nothing but the process of running an organization with help of available
resources and achieve goal or objectives which are set by an entrepreneur. So management is
the employee of a company. Some of the primary functions of management are.

 Planning
 Organizing
 Directing
 Coordinating and controlling

The above-listed functions links directly to below mention skills in graphics.

Management Skills
So management is simply directing employees what to do. Management overall is about
an organization and its role is to ensure that a company’s all moving parts working properly
together and to guide the organization towards goal and achievement. So management is a
critical element in the growth of an organization.

Key Differences between Entrepreneurship vs. Management

 Entrepreneurship is a process of creating enterprise by taking a financial risk in order to

get the profit whereas management is an art of getting things done through proper
planning, organizing, directing and controlling.
 An entrepreneur is focused on new business venture whereas the main focus of
management is to manage the ongoing operation.
 Ownership of an organization stays with entrepreneur whereas management is an
employee of the organization.
  The entrepreneur will get profit as rewards whereas management will be getting paid for
their work.
 An entrepreneur is risk taker where management doesn’t take any risk.
 Entrepreneurs hold all the right to enjoy complete financial freedom of the business
whereas Management doesn’t enjoy complete financial freedom of the business.
 An entrepreneur is an innovator whereas management executes the innovative idea.
 Management is a Wide range of organization studies it includes all whereas
Entrepreneurship is One of the parts of management.

Entrepreneurship vs Management Comparison Table

The basis of Comparison Entrepreneurship Management
Between Entrepreneurship
vs. Management
Meaning It is a process of creating It is an overall business
enterprise by taking a activity which is getting done
financial risk in order to get through and with people in a
the profit. formally organized group.
Function Business start-up and venture Look after an ongoing
operation
Status Owner Employee
Rewards Profit for risk bearing Salary as a reward for work
Risk A risk associated with Management does not accept
entrepreneurship any risk
Goal Entrepreneur set the goal Management implies the goal
set by entrepreneur
Decision Making Make a decision on personal Make a decision after
perception and gut feelings collecting detailed information
and reaching an operative
conclusion.
Fraud An entrepreneur is not getting A manager may involve or
involved in fraudulent cheat by not working hard.
behavior
Innovation Is the innovator Is the executor

After analysis of the above points, it is clear that Entrepreneurship vs management are
two different terms of use in business. Management is concerned with the management of current
operation with available resources, Entrepreneur focuses on the new venture and capitalizing
new opportunities. Successful Entrepreneurship requires creativity and innovation in addressing
new opportunities in a new way. Entrepreneurship is something which can’t be taught in the other
hand management can be taught. An entrepreneur is the backbone of the economic development
of countries.
Conceptual issues in Entrepreneurship

1. Insufficient Capital
Lack of capital plagues many startup firms, and many close because of it. In addition to a lack
of capital, insufficient cash flow compounds the problem. In the early days of its life, a startup
company may have no cash flow. When product is available to sell, pricing may be difficult. Set
the price too low and not enough revenue is generated; set it too high and the resulting slow sales
have a negative impact on revenue. The Jumpstart Our Business Startups, or JOBS, Act of 2012
addressed some of the problems of small business finance, opening the door for private investors
through angel financing and crowd funding.

2. Weak Management
The knowledge and skills of a creative entrepreneur do not necessarily equate to being an
effective manager. This dichotomy can surface in several ways. A product that is beautiful to its
inventor may not be viewed that way by others, and if the entrepreneur cannot recognize that, no
amount of management expertise is going to help. Even with a successful product, the founding
entrepreneur may not relinquish the management reins to a person more adept at managing a
startup. A weak manager is likely to hire a weak management team with the result being an
inadequate business plan and poor operational performance.

3. Ineffective Marketing
While a small business startup may have a unique product with potentially significant market
appeal, it must be able to advertise in a cost-effective manner. Without adequate market research,
an entrepreneur has no clue if the timing is right to introduce a new product or if the market is
large enough to support the business. Without a clear understanding of the market, the
entrepreneur may spend too much to acquire new customers. If the cost to acquire them is greater
than the revenue the customer generates, then the firm cannot earn a profit.
4. Dealing with the unknown

How long will your business exist? How profitable will your business be? Will customers like
your product? Will you be able to give yourself a steady paycheck? None of these questions has
a solid, reliable answer, even in startups based on great ideas with all the resources they’d
theoretically need.

That unknown factor means your job stability is going to plummet, and many of your long-term
plans will remain in flux as new developments emerge. Dealing with this volatility is one of the
hardest parts of emerging as a new entrepreneur.
 5. Rule-making

It’s fun to be the boss until you have to enforce something. Sooner or later, you’ll have to
come up with the rules your business follows, from how many vacation days your workers get to
what the proper protocol is when filing a complaint about a coworker. These details aren’t fun to
create, and they aren’t fun to think about, but they are necessary for every business.

6. Decision-making

Believe it or not, this is probably the most stressful challenge on this list. New entrepreneurs
are forced to make hundreds of decisions a day, from big, company-impacting decisions, to tiny,
hour-affecting ones. Decision fatigue is a real phenomenon, and most new entrepreneurs will
experience it if they aren’t prepared for the new level of stress.

If you can work your way past these major obstacles, you’ll be well on your way to establishing
yourself as an entrepreneur. That isn’t to say they won’t continue to nag at you as the years go
on, or that new and varied challenges won’t arise to take their place, but you’ll be prepared to
handle yourself in those most volatile and impactful first few months -- and that puts you far ahead
of the competition.

Conceptual issues in Management

1. Burning issues are addressed too late

By the time an annual survey rolls around, your most talented employee might already be
looking for opportunities elsewhere. Managers are often blindsided when a top performer hands
in their two-week notice and can’t help but wonder why they failed to spot the tell-tale signs the
employee was unhappy.

2. Communication breakdowns with remote workers

Despite technological advances, communicating with someone far away just isn't quite the
same as if they were sitting in the same room. Language barriers, time zones and cultural
misunderstandings can exacerbate the problem and lead to feelings of frustration for all involved.

3. Assumptions are made about employee needs

When you’ve worked at an organization for a long time, it’s easy to forget that less-tenured
employees are not as well versed in the finer details of the business. Sometimes, quite by
accident, institutional knowledge and access to important resources exist in bubbles, cut off from
many team members. This can lead to inefficiencies, poor performance and ultimately,
disengagement.
 4. Team members can't communicate candidly with management

We all have to experience awkward conversations at some point in our careers. These
discussions could be about something small like a missed deadline, or something truly painful like
a problem at home that’s affecting work. Nobody likes to be the instigator of these conversations
and that often means they never take place at all. Before long, there’s an elephant in the room
and talking about it becomes harder and harder.

5. Employees feel they don't have a voice

Offices are not prisons: employees are free to leave at any time and will do so if they feel
exploited or oppressed. In most organizations, management has the best of intentions when it
comes to giving their team a say in decisions that will impact them. But the reality is that
employees often don't speak out against policies they disagree with for fear of repercussions. Or
they might believe their views will be ignored or brushed off as unimportant when aired to
management.
6. Employees don't feel recognized for their achievements

A 2017 study found that 66% of employees say they would quit their job if they felt
unappreciated. Most managers point to salary as the most important aspect of employee
recognition. But salary increases and promotions are spaced months, or even years apart. How
managers recognize hard work in the interim period is crucial to driving motivation and maintaining
morale.

Five Steps in Addressing the Conceptual Issues in Management

1. Welcome Conflict

Conflict at work can be a good thing. It can show you where issues lie within your business.
And, it can help your employees grow and improve as a team. Don’t shy away from conflict. Tackle
it as soon as possible before it escalates. Avoiding conflict can be a bad thing. Tension might
increase and the conflict can become worse.

When you discover a conflict between employees, encourage them to work it out. Offer
yourself as a mediator. Or, simply be in the room with the employees to defuse tension if needed.

2. Open Communication

The only way to resolve conflict is to communicate. Encourage your feuding employees to
set up a time to meet, whether alone or with your supervision. There should be ample time to talk
without distractions.
 Make sure each person has the opportunity to say what they want. They shouldn’t be
interrupted by you or the other employee involved. Also, one employee should not control the
conversation. Both should be offered an equal amount of time to talk.

An employee shouldn’t attack or blame the other during this time. If needed, set some
ground rules. For example, you might ask the employees to focus on the problem at hand, not
personal characteristics.

You can also help direct what the employees say to create a more productive
conversation. For instance, you might ask the employees to phrase their statements as, “When
you did … I felt …” You might also prompt your employees to give specific examples so everyone
better understands the situation.

3. Listen Actively

Having the employees meet to talk is only beneficial if everyone involved actively listens.
Everyone should give their full attention to the person who is talking. You and the other employees
involved should not be checking emails, playing on phones, or doodling on paper.

As mentioned in step two, don’t interrupt the person who is talking. Let them finish saying
everything they want to say.

Listening should be all about understanding the other person’s perspective. Ask follow up
questions to help clarify what an employee is saying. You can also ask them to repeat or reword
what they said.

4. Build Agreement

The discussion will primarily be about the disagreement, but that shouldn’t be the only
thing you talk about. The employees should also search for points of agreement. The agreements
generate positivity, which might help dissolve the conflict. Agreement can give the employees
common ground to build their relationship on.

If the employees can’t find commonalities, you might need to help them. Look for common
things the employees said, even if they are small. Show the employees that they do have things
in common to pull them together.

5. Give guidance

When you help employees work through a conflict, it’s important not to take sides. You
are simply there to help the employees work through their problem.

Guide the conversation and keep it focused. Give your employees advice on what they
should do next. You might give them action items and further things to discuss.
Roles of Entrepreneurs in the Enterprise

 Initiator – Entrepreneur is someone who creates something new, either an

initiative, a business or a company. He or she is the beginning (and sometimes
the end) of a venture, project or activity. The entrepreneur might not be the
ideator, but he or she is definitely the one that decides to make that idea a reality.
 Risk-Taker - Most entrepreneurs are risk-takers by nature. Many entrepreneurs
risk all that they have when they decide to launch a business.
 Resource Allocator – You'll also need to determine where organizational
resources are best applied. This involves allocating funding, as well as assigning
staff and other organizational resources.

Roles of Entrepreneurs in the Economy

 Create Jobs - Entrepreneurs are by nature and definition job creators, as

opposed to job seekers. The simple translation is that when you become an
entrepreneur, there is one less job seeker in the economy, and then you provide
employment for multiple other job seekers. This kind of job creation by new and
existing businesses is again is one of the basic goals of economic development.
 Balanced Regional Development - Entrepreneurs setting up new businesses
and industrial units help with regional development by locating in less developed
and backward areas. The growth of industries and business in these areas leads
to infrastructure improvements
 Standard of Living - Increase in the standard of living of people in a community
is yet another key goal of economic development. Entrepreneurs again play a
key role in increasing the standard of living in a community. They do this not just
by creating jobs, but also by developing and adopting innovations that lead to
improvements in the quality of life of the emloyees, customers, and other
stakeholders in the community.
 Economic Independence - Entrepreneurship is essential for national self-
reliance. Industrialists help to manufacture indigenous substitutes of hitherto
imported products thereby reducing dependence on foreign countries.
 Businessmen also export goods and services on a large scale and thereby earn
the scarce foreign exchange for the country.

 Increasing Gross National Product and Per Capita Income: Entrepreneurs are
always on the look out for opportunities. They explore and exploit opportunities,,
encourage effective resource mobilization of capital and skill, bring in new products
and services and develops markets for growth of the economy. In this way, they
help increasing gross national product as well as per capita income of the people
in a country. Increase in gross national product and per capita income of the people
in a country, is a sign of economic growth.

Functions of Entrepreneurs

 Entrepreneurial Functions - The major entrepreneurial functions include risk bearing,

organizing, and innovation.
 Managerial Function - In the opinion of George Terry (1953), “management is a distinct
process consisting of planning, organizing, actuating, and controlling performance to
determine and accomplish the objectives by the use of people and resources.”

The management functions performed by entrepreneur are classified into the

following five types:

1. Planning - In common parlance, planning is pre-determined course of action to

accomplish the set objectives. In other words, planning is today’s projection for
tomorrow’s activity. Planning pervades in all aspects of business. An entrepreneur
has to make decisions as to what is to be done, how it is to be done, when it is to be
done, where it is to be done, by whom it is to be done and so on.

2. Organizing - The organizing function of an entrepreneur refers to bringing together

the men, material, machine, money, etc. to execute the plans. The entrepreneur
assembles and organizes the above mentioned different organs of an enterprise in
such a way that these combined start functioning as one, i.e., enterprise.

3. Staffing - Staffing involves human resource planning and human resource

management. Thus, staffing function of an entrepreneur includes preparing inventory
 of personnel available, requirement of personnel, sources of manpower recruitment,
their selection, remuneration, training and development and periodic appraisal of
personnel working in the enterprise.

4. Directing - The directing function of entrepreneur actually starts the setting up of

enterprise. Under the directing function, the entrepreneur guides, counsels, teaches,
stimulates and activates his/ her employees to work efficiently to accomplish the set
objectives.

5. Controlling - Controlling is the last management function performed by the

entrepreneur. In simple words, controlling means to see whether the activities have
been performed in conformity with the plans or not. Thus, controlling is comparison
of actual performance with the target or standard performance and identification of
variation between the two, if any, and taking corrective measures so that the target is
accomplished.

 Promotional Functions
1) Identification and Selection of Business Idea - Every intending
entrepreneur wants to start the most profitable and rewarding project. The
selection of the most suitable business project involves a process. The
intending entrepreneur, based on his /her knowledge, experience, and
information gathered from friends and relatives, generates some possible
business ideas which can be examined and pursued as a business enterprise.
2) Preparation of Business Plan or Project Report - the entrepreneur prepares
a statement called ‘business plan’ or ‘project report’ of what he / she proposes
to take up. In other words, business plan is a well evolved course of action
devised by entrepreneur to achieve the specified objectives within a specified
period of time. In this sense, business plan is just like an operating document.
The preparation of business plan is not must, but it is very much useful for the
entrepreneur to establish his / her enterprise in an effective and smooth
manner. But, it is must for those entrepreneurs who intend to apply for financial
assistance from the financial institutions and banks for their enterprises.
 3) Requirement for Finance - the entrepreneur prepares requirement for funds
with its detailed structure. The financial requirement is also classified into short-
term and long-term separately. Then, the sources of supply to acquire the
required fund are also mentioned. How much will be the share capital in terms
of equity and preference shares and how much will be borrowed capital from
different financial institutions and banks are clearly determined.

 Commercial Functions:

1) Production / Manufacturing - Once the enterprise is finally established, it

starts producing goods or offering services, whichever be the case. Production
function includes decisions relating to the selection of factory site, design and
layout, types of products to be produced, research and development, and
design of the product.
2) Marketing - All production is basically meant for marketing. Marketing is the
performance of those business activities that direct the flow of goods and
services from producer to consumer or user. Thus, marketing essentially
begins and ends with the customers. The examples of marketing activities are
market or consumer research, product planning and development,
standardization, packaging, pricing, storage, promotional activities, distribution
channel, etc.
3) Accounting - the main objective of any business enterprise is to earn profits
and create wealth. Whether the business is fulfilling its objective or not is
ascertained through accounting. What is accounting? According to the
American Institute of Certified Public Accountants, “Accounting is the art of
recording, classifying and summarizing in a significant manner and, in terms of
money, transactions and events which are, in part at least, of a financial
character and interpreting the results thereof.
 PART III:
OPPORTUNITY SCOUTING AND IDEA GENERATION: ROLE OF CREATIVITY AND
INNOVATION AND BUSINESS RESEARCH
Sources of Business Ideas

Opportunity Scouting

 Opportunity recognition
- can be considered as an activity that can occur both prior to establishment of a firm,
and also post founding of a firm (throughout the life of the firm and throughout the life
of the entrepreneur)
 an activity that can occur both prior to establishment of a firm and also post founding of a
firm (throughout the life of the firm and throughout the life of the entrepreneur)

“Business is not about the ideas of power, but the power of ideas.”

The starting point of any business organization is a powerful idea. An idea worth thinking
about, an idea worth enhancing and developing, an idea worth converting into a business.

Idea Generation

- the creative process of generating, developing and communicating new ideas.

IDEA GENERATION PROCESS

1. CONSTRUCTING the idea

 gathering and putting different information together
2. INNOVATING the concept
 multiple activities to uncover new ways to do things with creativity
3. DEVELOPING the process
 make something grow and becoming stronger or more advanced
4. ACTUALIZATION
 bringing the concept to reality
CREATIVITY AND INNOVATION

CREATIVITY INNOVATION
 ability to bring something new into  translation of an idea into application.
existence  doing different things
 doing things differently  doing new things
 thinking new things

RESEARCH

 a systematic search for information in order to obtain a clear picture concerning the
underlying problem.
  a process of identifying problem thoroughly, establishing an objective, collecting and
analyzing the relevant data in order to determine the possible factors causing the problem.
BUSINESS RESEARCH

 is the first step that any business owner needs to set up his business, to survive or to excel
in the market.
 the systematic and objective process of generating information for aid in making business
decisions.
 facilitates the managerial decision process for all aspects of a business.
 provides a person with a basic understanding of quantitative techniques used in analyzing
business trends and statistics.

ROLES OF CREATIVITY, INNOVATION & BUSINESS RESEARCH

 Encourage critical thinking

- Problem solving works best when coupled with highly disciplined and focus thinking.
- Entrepreneurs can think in either:
 Divergent thinking mode
-Encourages creativity by enabling business owners to explore possible solutions
for the same problem.
 Convergent thinking mode
-involves in-depth analysis and enables an entrepreneur to find the most feasible
solutions to a managerial or financial problem.

 Transcend boundaries

- Enables entrepreneurs to find some of the path-breaking discoveries.

- As such, it is essential to allow collisions and blur to take place to transcend boundaries
set by disciplines, that way it’s easier for an entrepreneur to get new perspective towards
solving a financial or operational problem.

 Increase productivity

- Creativity allows an entrepreneur to disconnect from the accustomed and move into
uncharted territories with an aim to discern unique and useful solutions.

 Foster innovation and invention

- Entrepreneurs create unique products to not only meet customers’ expectation but exceed
them as well.
- This is the time an entrepreneur begins to realize how innovation and invention deeper.
- You need to be creative and view an idea differently to be innovative. That way, it’s easier
to turn a concept into a reality.

 Helps understand the demand of any product before they produce it.
 To study key rivals in their markets.
  To determine the number of manpower needed and recruit the same.

SOURCES OF BUSINESS IDEAS

 a concept that can be used for financial gain that is usually centered on a product or
service that can be offered for money.

1. INTEREST AND HOBBIES

- feeling of wanting to learn more about something or to be involved in something
- are activities that you enjoy doing during your leisure time

“Just consider what you are good at, and you are ready to go.”
Example:
If you enjoy traveling, playing with computers, music, sports, performing or cooking you
can seamlessly develop it into a business. You can join the tourism, entertainment or hospitality
industry by venturing deeper into your favorite activity.

Corazon D. Ong

- Founder of CDO Foodsphere, Inc.

- It was only a hobby where she could put to good use her creativity and skills in culinary
arts. It was a hobby of Ms. Ong to make processed meat products such as cornedbeef,
hotdog, meatloaf and hamburger patties.
- She was a dietician by profession
- She founded CDO Foodsphere in 1975 where it was recognized as the leading supplier
of meat toppings.

2. CUSTOMER SURVEYS AND RESEARCH

 Conducting market surveys

 The starting point of new business are the clients to:
 identify their needs and wants
 offer suitable products or services
 build relationship with potential customers

3. SKILLS AND TALENTS

 Individual strengths/ innate ability to do something (natural ability – inborn)

 Learnt abilities, whether applied or developed after you put in a lot of time and
hardwork
 Knowing where you are best in
Example:
For instance, if you are talented to play football you might spot an idea in supplying football
kits to customers in the market. Or if you have a particular strength in helping out clients through
consultations, that could form a base to start a business.
Juan Miguel Severo
 • 30-Year-Old Poet and Spoken Word Artist
• He attended the College of Mass Communication
• He received increased attention for his spoken word art when his piece "Ang Huling Tula
na Isusulat Ko para sa’yo" went viral in 2015

4. FRANCHISE
 Based on marketing concept which can be adopted by an organization as a strategy for
business expansion
 A situation where a sole trademark manufacturer or distributor of product gives exclusive
rights to independent retailers for local distribution

Problems with franchising:

Morne Cronje (Head of franchising for FNB Business), according to him these are the
problems of franchising:

• Shrinking disposable income

- this is one of the biggest threats facing the franchising industry.
- as the cost of living increases due to a number of economic factors, consumers are
beginning to spend even less.

• Increasing competition (market share)

- a number of foreign-owned brands such as Starbucks, Burger King and Domino's Pizza
have now been incorporated into the local market. While this has a positive economic
impact and gives consumer more choice, it significantly increases competition and puts
more pressure on the performance of established brands.

5. CURRENT EVENTS and TRENDS

 Important events happening around the world / issues of interest

 Business can also be generated through attending events in which new ideas are
exchanged
 A trend is what's hip or popular at a certain point in time
Problem:

 Uncertainty about the future

- Due to fast changing world, even businesses do not have the assurance of what future
holds, resulting to either keep on track (a positive one) or being outdated (the negative
side) which can result to downfall of the business if not addressed.

Example: Nokia’s downfall

Stephen Elop (Nokia’s CEO) “We didn’t do anything wrong but somehow, we lost.”

Nokia has been a respectable company. They didn’t do anything wrong in their business,
however, the world changed too fast. Their opponents were too powerful.
 They missed out on learning, they missed out on changing, and thus they lost the
opportunity at hand to make it big. Not only did they miss the opportunity to earn big money, they
lost their chance of survival.

“The advantage you have yesterday, will be replaced by the trends of tomorrow.”

6. MERGING EXISTING BUSINESS

 Strategy for combining different companies into a single company in order to enhance the
financial and operational strengths of both organization
 Business people can come-up together to merge their business as a new development
towards achieving or getting more customers or for provision of better services to
customers

Problems:

• Cultural Challenges

- It’s difficult for a merged company to carry the culture of the previous organisations, because
employees seldom replace their underlying values and beliefs in the long run. Generally, when
mergers and acquisitions occur, they bring shifts in management practices and strategies, which
can have negative implications on the people at the organisation. A sudden shift in these
practices, brings disruption and unease to a company.
• Staff retention

- Employees on both sides felt reluctant to work with each other, which resulted in conflicting
orders and goals in different departments. The newly merged company was heading in
opposing directions from the beginning. Daimler imposed a hierarchical approach, on which the
new company should work.

7. INTERNET
“Business in virtually every sector of the economy rely on the Internet in the modern day
business environment to reach customers, promote their product and even widen their customer
base.” -William McCoy, Demand media

Life becomes more convenient due to the advent of digital technologies, even in the aspect
of business. Internet, especially social media had provided individuals a platform into creation of
new business ideas. It had become an avenue for young individuals to create products, identities,
and information that they believe in, and for the public to find out about.Digital entrepreneurs are
starting to create their own market world through the internet which is easier to start.

INTRODUCING e-COMMERCE
E-commerce is a type of business model that focuses on doing commercial transactions
through electronic networks such as the Internet.
 Filipinos are considered wide users of Internet and there is a good reason to be optimistic
about eCommerce growth in the Philippines.

INTERNET USAGE
On average, 64.6 million people in the Philippines use the internet for 216 minutes every day.

PRODUCT CATEGORIES
Total Filipino eCommerce revenue across all product categories is 1.49 billion USD, and is
expected to grow to 2.62 billion USD by 2021. Electronics & Media is currently the leading
product category in the Philippines, accounting for 618.6 million USD market share, followed
by Toys, Hobby & DIY, which generates 336.5 million USD in sales.

WHERE DOES THE PHILIPPINES BUY FROM?

China supplies the Philippines with 29.8 billion USD in imports – ranging from cars to petroleum.
The Philippines other key import partners are Japan ($10.3 billion), the United States ($8.2
billion), South Korea ($7.28 billion) and Singapore ($6.51 billion).

However, the country also faces the one of the main challenges:
the need for further improvement on internet speed. According to OOKLA’s Speedtest Global
Index, the Philippines fixed broadband internet speed is 19.28 Mbps on February 2019. This is a
143.74 percent improvement from July 2016’s 7.91 Mbps and puts the Philippines on the 21st in
Asia Pacific for fixed broadband. Mobile broadband speed also improved by 94.35 percent to
14.46 Mbps in February 2019 from 7.44 Mbps in July 2016. This bumped up the Philippines
ranking to 23rd in Asia Pacific in mobile broadband.

OLX AND SM INVESTMENT CORP.,

David, co-founder of Sulit.com.ph – now known as OLX Philippines – can be considered among
the pioneers in the country of what is now more popularly known as e-commerce.

 “We knew back then that trust would be a big hindrance because Filipinos generally were
still not ready to pay someone online and wait for the products to arrive at their doorsteps.
Sulit worked hard to bridge that gap and figured that pushing meet-ups were a good first
step to train Filipinos to trust online buying and selling,” he said.

Bill Gates once said that: “if your business is not on the web, then your business will be out of
business,”

 “There is a digital change. We just have to see how to improve ourselves to have business
alongside them (e-commerce platforms),” said Teresita Sy-Coson, vice chair of SM
Investments Corp., owner of the country’s biggest chain of retail stores and also the
nation’s largest shopping mall developer. Seeing the need to have an online platform, SM
earlier this year entered into an agreement with Lazada to sell merchandise.
Start Your Own E-Commerce Business in the Philippines

E-commerce presents great opportunities for you to succeed in the retail business in the
Philippines. It offers consumers convenience by shopping from the comforts of their own homes
without having to deal with the horrors of Metro Manila traffic.

1. ONLINE SELLING

In the Philippines, the top selling e-commerce items are ranked in order of sales:

 Electronic Goods
 Special Interest
 Fashion Apparel
 Furniture and Home Appliances
 Food, Cosmetics, and Pharmaceuticals

Major consumers came mostly from the women’s population – beauty products
OTHER:

Register Your Online Business

If your e-commerce business exchanges goods and services for cash, then it will be considered
a source of income. You will be required to issue official receipts. This means you have to register
your online business.

If your type of business is either a proprietorship or partnership, then you should register it with
the Department of Trade and Industry or DTI,Securities and Exchange Commission or SEC,
Local government, Bureau of Internal Revenue (BIR), Pag-IBIG, PhilHealth, and SSS
8.EXPERIENCE.

An idea can also be generated from experience. Experience in itself comes from constant
touch on a particular aspect. For instance, an individual might have an experience in accounting
through his or her occasional involvement with accounting issues.

HOW TO FIND THE RIGHT BUSINESS IDEAS FROM EXPERIENCE:

“Look for ideas within yourself.”

a. Tap into your expertise.

If you’ve been struggling to find a feasible business idea, look no further than your own experience
and skill set.

Your skill or expertise could be your primary asset in setting up your own business. Cooks can
open small restaurants, waiters can launch a catering business, renal nurses can start a dialysis
center, teachers can offer tutorial services, dancers can launch a dancing school, and so on.

Corazon D. Ong, CDO Foodsphere

Corazon was a dietitian by profession. She used her knowledge to create processed meats that
were affordable enough to compete with the popular foreign brands. She developed corned beef,
hamburger patties, meat loaf, and hotdogs, which were sold purely as a home business.

By 1975, Corazon decided to scale her newfound business and established CDO Foodsphere.
The company’s reputation to develop high-quality but low-priced processed meats quickly spread
and made CDO a regular staple in every shopping cart.

As a mother herself Corazon understood the value of having meals that can be prepared easily,
taste good, and fit the family budget.

National Book Store (NBS) currently has 128 branches all over the Philippines.

The person behind the success of NBS is Socorro Cancio-Ramos, a woman who started as a
saleslady in another bookstore. When she got married, her family has put up the NBS in Manila.

However, selling books is not very popular during World War II so she decided to sell something
other than books. Fortunately, all their stocks were sold during the American era and they have
continued to build a small tent to continue their business.

Unfortunately, their small tent was destroyed by a typhoon sooner. But with great perseverance
and effort, NBS has reached its place today as one of the greatest and successful companies
here in the Philippines.
9. MARKET NICHE
What is a Niche Market?

A niche market is a small part of a larger market that has its own specific needs, which are different
from the larger market.

Building a business in a niche market can help you differentiate yourself from other brands and
build your credibility and expertise. Look to social media or your own consumer needs to come
up with a product to sell online.
HOW TO FIND THE RIGHT BUSINESS IDEAS FROM THE MARKET NICHE
“Look for ideas around you.”

Adding Value to existing resources:

 Alternatives for import products like tomato ketchup just like:

The revolutionary technology of making banana catsup was invented by Magdalo V. Francisco in
1938. It was a cheaper alternative than tomato catsup as bananas abound in the Philippines, and
the taste was found favorable by Filipinos.

In 1942, in the midst of World War II, Francisco produced banana catsup in commercial quantities
and named it Mafran, derived from his contracted name (MAgdalo + FRANcisco). Francisco
sought funding from Tirso T. Reyes to expand his business and thus, the Universal Food
Corporation (UFC) was formed in 1960.

Internal conflicts forced Francisco to leave and set up Jufran Food Industries, which
manufactured Jufran Banana Catsup, named after son Magdalo Jr. or Jun, hence
“JUFRAN.”

 Eco-friendly products

Senator Cynthia Villar was among the core of lawmakers who took action and pooled technical
resources to find ways to address the problem of waste management. One of their brightest idea
is the recycling of plastic discards into plastic furniture such as school chairs, desks and benches,
and other types of furniture.One school chair needs 20 kilos of soft plastics such as food wrappers
to produce. A chair has a life span of 20 years.

10. TRAVEL AND TOURISM

 Travelling personal assistant

 Travel blogger
 Photographer
 Selling local souvenir products
 Migrating/ starting a business to other countries for better business opportunities
 REPUBLIC OF THE PHILIPPINES
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
SANTA MARIA, BULACAN CAMPUS

I. Entrepreneur-Entrepreneurship-Enterprise: Conceptual Issues

II. Opportunity scouting and Idea Generation: Role of Creativity & Innovation and
Business Research

GROUP 1
Alexis Babala
Alyssa Grace Vicente
Anna Ysabelle Perez
Charlotte Fajardo
Clariz Andrea Briones
Jennifer Fidelino
Lorenz Rada
Mia Rafaela Cruz
BSA 2-1
REFERENCES:
https://www.philstar.com/business/2017/12/01/1764314/what-makes-e-commerce-click

https://www.export.gov/article?id=Philippines-ecommerce

https://tycoon.ph/start-ecommerce-business-philippines/

: https://filipiknow.net/origins-of-famous-filipino-brand-names/
https://www.ikot.ph/turn-plastic-wastes-into-school-chairs-villar/

Jubair Hossain, MBA Finance & Banking, Jatiya Kabi Kazi Nazrul Islam University (2014)

Small Business» Advertising & Marketing» Business Research» What Are the Functions of Business Research? by
Kimberlee Leonard; Updated October 25, 2018

https://www.alphagamma.eu/entrepreneurship/role-creativity-in-entrepreneurship/

Citation: Nnadi C (2014) The Role of Creativity and Innovation in Business Growth and Sustainability: An Ideal Model.
Int J Econ and Manage Sci 3:171. doi:10.4172/2162-6359.1000171

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https://www.mindtools.com/pages/article/leadership-mistakes.htm

https://www.tinypulse.com/blog/6-management-problems-that-go-away-when-you-use-tinypulse

https://www.educba.com/entrepreneurship-vs-management/