Universidad Juárez Autónoma de Tabasco

División Académica de Ciencias Económico Administrativas

Entrepreneurship

Professor. Margarita Vasquez Lara

Student. Martha Gabriela Gónzalez De La Cruz

 Introduction

The economic crisis that our economy has experienced has repercussions on the
lack of sources of work, so the professional market not only demands knowledge
but also efficiency, competitiveness, passion, creativity, capacity for innovation,
commitment, values, among other skills.

For Jeffrey A. Timmons (1989)2 "Entrepreneurship means taking action human,

creative to build something of value from practically Nothing. It's the persistent
pursuit of opportunity regardless of available resources or the lack thereof. It
requires a vision and passion and commitment to lead others in the pursuit of that
vision.

It also requires a willingness to take calculated risks.

For all of the above, it emphasizes the need to know the steps of the business
process for the generation of ideas, sources of business opportunities, business
concepts, descriptions and sources, types of businesses and ventures, risks that
evaluate the benefits associated with each form of venture, the resources needed
for a venture, determination and evaluation of a venture, implementation of a
venture, management and harvesting of a venture.

It is important to mention that to venture into being an entrepreneur requires

determination and an entrepreneurial spirit that allows you to generate creative,
outstanding and innovative ideas and that above all contribute to the improvement
of your quality of life and that of others.
 Indice

The business process steps for generating ideas...........................5

Sources of business opportunities..................................................13

Business concepts: Descriptions and fonts...................................15

Risks that evaluate the benefits associated with each form of

enterprise...........................................................................................16

The resources needed for a venture................................................18

Determination and evaluation of a Venture.....................................19

Implementation of a venture.............................................................21

Management and harvesting of a Venture......................................23

Conclusion.........................................................................................24

References.........................................................................................25
The business process steps for generating ideas

In general terms, the entrepreneur is a person who identifies a business

opportunity and organizes the resources needed to get it off the ground, but for all
this to happen there are important steps that must be taken in the entrepreneurial
process.

The stages of the entrepreneurial process that will be employed are from the
University of Pretoria, and are presented below:

1. Generation of ideas

The entrepreneur begins to wonder why there is no product or service available,

why not improve certain things, how to generate income to cover their expenses,
etc. Thousands of questions can arise, so they will help identify opportunities to
meet market needs. "Ideas are non-formalised perceptions that link problems
and/or desires with a value proposition to solve and/or satisfy them" (Climent and
Muñoz, 2014, p.11). Every change or advance was brought about by an idea, the
fruit of hours of study and work.

2. Decision-making and business planning

A critical point in the business process is deciding to start the project. Staying
active and motivated are the main factors for the entrepreneur to start landing his
idea. Asking what resources are needed and where you will get them is vital to
generating at least one path for the entrepreneur. The development of the business
plan will provide only a guide that can be used as a reference.
3. Creation of the project
The project is carried out when the entrepreneur decides to seek and obtain
resources. Obtaining funding is difficult and may be one of the main obstacles to
starting a business. When the entrepreneur starts to invest the resources and
begins to operate, it is a point of relief, since the entrepreneur will see the first
steps of his company. Figueroa (2005) states:
The methodology to be used will be related to the type of diagnosis to be made.

In general methodological terms

it is recommended:

 Conducting participatory diagnostics

 A receptive and objective attitude
towards phenomena.
 Flexibility:

- In our theoretical framework

- In the methodology

- In the measuring instruments we design

 The diagnosis will allow to delimit in a qualitative and quantitative way the
situation and the tendencies that must be taken into account in the project,
so it will be used later as an argument of the justification.
 A receptive and objective attitude towards the phenomena
A receptive attitude is one that invites us to receive and assume the
conditions that will have an impact on the creation of the project, but with
objectivity, that is, assuming any event, whether positive or negative, without
abandoning the aspirations and goals that we wish to achieve.
Entrepreneur (2020) states:
The entrepreneur's attitude is his way of acting towards things, which is a
natural consequence of his mentality and his way of thinking. The 17 main
ones will define how you will react to the circumstances around you:

1. The risk

2. The initiative

3. Be progressive

4. Permanent updating

5. The decisión

6. Tenacity

7. Enthusiasm

8. Creativity
 9. Recovery from failure

10. Be positive

11. Dynamism

12. Self-confidence

13. The non-conformity

14. Perseverance

15. The flexibility

16. Independence

17. Be proactive

 Flexibility:

- In our theoretical framework

- In the methodology

- In the measuring instruments we design

It is very important to have flexibility in the elaboration of these points, with the
purpose of aligning all the diverse interests, to contemplate present and future
restrictions, and of course the adaptation to the circumstances looking for the most
feasible ideas for the construction of this project.
4. Management and control

After the first few months of operation, the company will see whether it decreases,
maintains or increases sales. The entrepreneur should strive to maintain revenue
growth before worrying about having a good office. Running a business is not
easy, but the experience entrepreneurs gain over time will surely make it easier to
manage all the resources. Perhaps you could say that the business process ends
here, but I think you are no longer an entrepreneur, and you become a
businessman.

The official definition of management and control provided by the Project

Management Institute (PMI, 2016) states

Project management is the application of knowledge, skills, tools and

techniques to project activities in order to meet project requirements. It is
achieved through the proper application and integration of a series of grouped
processes, which make up the five groups of processes. These groups of
processes are:

 Home
 Planning
 Execution
 Monitoring and Control
 Close

The University of Pretoria, in search of the structure of the business process, built
its own model based on definitions from different authors, which stands out for the
definition of stages and events throughout the process. It is shown below:
It is mentioned that within all this creation of the entrepreneurial process a series of
events are generated that are presented below:

1. Innovation

This is the moment when the entrepreneur generates the innovative idea, identifies
the market opportunity and seeks information. In addition, he begins to see the
viability of the ideas, the capacity to obtain value from them and how to generate
the development of the product or service.

Innovations are a constant in the development of the human being, for that reason
the innovative projects are the actions in which knowledge, abilities and techniques
are applied.

Later, characteristics of an innovative project are mentioned:

 It has a well established and relevant research strategy and practice with
respect to the proposed objectives.
 It seeks to respond to or achieve greater goals than the innovative projects
that precede it.
 It is managed by experts in the area of study and with the ability to work
independently.
 The work environment is based on the trust and capacity of all those
involved in the project.
 Theory is the starting point for developing the ideas raised in the project.
 Innovation is a means for the constant challenge of development and
entrepreneurship, it is not an end in itself.
 The strategy of the innovative project is well defined to determine the
objectives to be achieved.

2. Triggering event

This event is the gestation time of the project. The entrepreneur begins to be
motivated to start a business and decide to continue. The business plan is created,
as well as the identification of the resources required, the risk of the project, the
source of the funds and how they would be used. Solleiro (1989) states:

The gestation of a project refers to the whole process that goes from the detection
of needs and opportunities, until the project is formally initiated, once the allocation
of resources has been approved.
3. Implementation

This event includes the incorporation of resources and setting up the project to
launch your new business on the market. The strategy and business plan begin to
develop day by day, and the use of resources is invested in favor of building a
successful company.

4. Growth

The ideal event for any entrepreneur is to see how their company is constantly
growing. The activities of the previous event, ideally take the business to a stage of
maturity to maximize profitability and obtain better benefits. Growth is the stage of
the entrepreneurial process in which the time and effort invested by the
entrepreneur is reflected. At this point, to keep up with the growth of the business,
the entrepreneur must maintain his personal development to continue his internal
growth as well. This growth is eventually collaborative if there is an improvement of
the entrepreneurial ecosystem that also helps the mutual work.
 Sources of business opportunities

One of the situations with more uncertainty that entrepreneurs present is the
search, selection and business definition of opportunities that in the future will be
companies.

Richard Buskirk of the University of Southern California (1985), set out to design a
framework of analysis to evaluate the strengths and weaknesses of any idea to
assess its potential as a business opportunity. To this end, Buskirk defined a set of
attributes or characteristics of what he called the "ideal business" or "model
business"; based on this approach and with some adjustments to it, we can
conclude that the ideal business should have the following characteristics:

1) It does not require investment.

2) It has an established market.

3) The need and the product required are clearly identified.

4) It has a reliable source of supply of inputs (main raw material).

5) It does not have adverse government regulations.

6) It does not require a large number of workers.

7) 100% gross profit.

8) Demand is frequent and continuous.

9) Tax conditions are favorable.

10) There is a solid and reliable distribution and/or marketing system.

11) Customers pay in advance.

12) It is easy to make a big impact through simple advertising.

13) It is exempt from any civil responsibility (it does not affect the users).

14) There is no risk of obsolescence. Fashion does not impact.

15) Environmental conditions (temperature, rainfall, etc.) do not affect.

16) Some intellectual property rights can be owned.

17) There are no competitors to displace me in the short term.

18) You can set a price that customers would pay.

19) It does not require sophisticated technology.

(20) You know precisely where the customers are and how many there are.
 Business concepts: Descriptions and fonts

"Great ideas are those that we are only surprised that we haven't thought of
before."

Noel Clarasó Writer, film and TV scriptwriter (1899 - 1985)

The best way to get ideas is to go to where they are already, collect some of their
essence and then transform them. There are no pure sources since we can get the
same business ideas by going to different sources.

- The sources of ideas are not independent from each other, as there is a synergy
effect between them and the more sources we consult, the more ideas we get.

- By combining the sources, we will always get more and better ideas than if we
limit ourselves to analyzing each source separately.

Sources of ideas:

1. They appear by chance (the obvious, luck and fortune)

2. Common prescribers (teachers, friends, family, idea banks, readings, studies,

experts, customers, competitors, distributors)

3. Observation of the immediate environment (changes in the specific sector or in

the market, demographic changes, changes in social perception, new scientific
knowledge, etc.)
4. Research and documentation (readings, countries or areas, inventions or
patents, fairs and congresses, trips, lists of franchises, industry or final consumer
needs, study of shortages, know-how, analysis of a market segment, new
regulations and their application).

Risks that evaluate the benefits associated with

each form of enterprise

1. Stop receiving a fixed salary. Before you venture into this world, you must say
goodbye to your current job and in some cases to your career. Some people have
a support plan, an option to be able to resume their career in case their idea
doesn't work out. But for most, the decision is risky. There is no guarantee that you
will receive money, especially in the first few months and years, and you may be
too busy to have an alternative income line.

2. Sacrifice personal capital. Some people are able to start their adventures relying
solely on outside funding. That means a collection of contributions from angel
investors, government loans and grants, and crowdfunding campaigns. But many
entrepreneurs must also draw money from their own account to get started. You
may not need to completely liquidate your mattress, but you will need to put some
of your money in.

3. Trust the money flow. Even if you have a line of credit, making sure you have
cash flow is difficult and stressful. You can predict that it will be a profitable year
but you will struggle with the daily needs if your income does not match or the
costs are higher. Bills can add up quickly and if you don't have enough income to
replace what goes out, you may run out of money to pay a salary.

4. Estimate the popular interest. No matter how much research you do and how
many tests you complete, you will never be able to really know the public's interest
in your business accurately. People are unpredictable, which can create a black
hole in your plans. Even when the data seems to be in your favor, there is a
chance that they will not prefer your business and if you are wrong about this, your
financial model can be ruined.

the key employees. When you start your business, you won't have a whole team
working for you. Maybe you'll have a small one to make things work and get
ahead. You will have to put your trust in them, especially if they have special skills
that are hard to find, plus you must see that they are willing to work for little pay at
first.

6. Bet on a deadline. Startups are by nature forced to meet deadlines for products
and goals. Their finances are fragile and their investors want to start seeing the
wheels turn. As a result, many entrepreneurs are forced to meet their goals within
a certain time frame and those dates are very stressful and important. Be prepared
to spend all night worrying about meeting those deadlines and having a plan B.

7. Donate personal time (and health). You can spend a lot of time working on
something to make your business successful and the remaining hours worrying
about what you've done and what you haven't done. You will forget to sleep, have
no personal time and be more stressed than usual.

Risks shouldn't keep you from realizing your dreams, they are necessary
obstacles to something bigger. There is no way to avoid these risks, but if
you recognize them, you will overcome them.
 The resources needed for a venture

- Human resources

A business is made up of people, even when it is a small project. People who

occupy jobs defined by skills and tasks. Professionals who have passed a
selection process to access the position.

- Economic resources

Economic investment is inherent in the very process of implementing a business

idea even when it is an economic proposal. The search for funding is essential to
have a specific plan to achieve this challenge.

- Knowledge

The complexity of managing a business is so evident that one who assumes this
responsibility in the first person must have knowledge resources that may have
been acquired through previous training in order to provide a timely response to
the various difficulties that may arise in the process. You can also receive advice
from experts and be updated on the latest developments in your sector by reading
the daily press.

- Material resources

What kind of machinery does your business proposal need to ensure compliance
with the daily work? To make this purchase it is also indispensable to have the
economic resources described above.
 Determination and evaluation of a Venture

Determination is an essential component of effective and viable entrepreneurship,

since any entrepreneur who does not possess the talent of determination will make
his work vulnerable and practically sentence it to failure.

Determination is that motivation that allows us to move forward without giving up in

the face of difficulties, that allows us to break the paradigms and understand that
social evolution is possible thanks to reckless, determined and confident subjects,
who took more than one step forward with their ventures, not because they had
faith, but because they had logical certainties.

The evaluation of a project is the process of identifying, quantifying and assessing

the costs and benefits generated by it, in a certain period of time. Its objective is to
determine whether the execution of the project is convenient for the person
carrying it out. Of this process, the identification of benefits is the most important
step, since, from this one, the analysis is based to decide the convenience of
carrying out a project. Quantification and valuation are relatively simple steps,
since the first is done by assigning a physical measure to the identified costs and
benefits, while the second determines a price for these physical measures.

Evaluation of a project can be done in two ways: private and social. Its use will
depend on who incurs the costs and benefits of implementing a project.

Below is the definition for each type of evaluation, emphasizing the most relevant
concepts of each, as well as the differences between them.

Private project evaluation

It consists of determining the convenience of executing a project for its owner,
considering only those effects that affect the owner and not society. To value the
effects, market prices and a discount rate are used, which depends on the
expectations of the project owner, in addition to considering concepts such as
depreciation, taxes, subsidies, surrender value and type of financing. This type of
evaluation can be economic or financial, depending on where the resources to
carry out the project come from.

The economic evaluation considers that purchases and sales of the project are
made in strict cash and that all the capital used is owned by the project owner. In
contrast, the financial evaluation considers the financial flows generated by the
borrowed capital.

Social evaluation

This type of evaluation considers all the effects that the project has on society.
When the project involves undistorted markets, social and economic evaluation
have the same results. However, when there are distortions such as taxes, tariffs,
subsidies, poorly defined property rights or markets where there is not perfect
competition such as monopolies and oligopolies, the evaluation must be carried out
with social prices to assess the effects of the project. This is because when any of
the situations described occur, market prices do not reflect the marginal social
costs or benefits. Social prices consider these market distortions or anomalies,
allowing a correct evaluation of the project's effects.
 Implementation of a venture

1. Generate certainty in business entrepreneurship

If you have a plan, a strategy and/or the right formula, you will be able to establish
results with a high level of certainty. You should be as specific as possible when
setting the objectives of the strategy; the clearer the idea, the more progress you
will make on the road to success. An efficient activity plan should include the series
of steps to be taken to reach the goal.

In other words, each employee must know the role and activities they will have to
perform, and they can set the times and status of each task, all in order to be able
to follow up and increase the chances of success.

2. Develop a sales machine

Strategies will need to be put in place to increase the number of transactions and
sales amounts. The strategy you choose will have an impact on profits,
determining whether the company's income will increase or decrease. The right
strategy will be able to attract new and potential customers; as well as help keep
the ones you currently have. To achieve this, all marketing tools and skills must be
known and used to improve the amount of sales in a business venture.

Simultaneously, it will increase the transaction value; this by offering and selling a
greater quantity of products and services to the current clients; prioritizing the
quality of each sale will significantly increase the value of each transaction; which
will be reflected in the increase of income.
3. Activate profits

Discipline is the key to ensuring a balance between strength, technique, tactics and
proportion of work. Once you have the procedures defined it will be just as It is
important to comply within the agreed time frame for a business venture.

Avoiding delays and deviations leads to greater control and handling of errors
and/or failures that may arise in the process. It also helps to have a better
visualization of all the jobs to be done; therefore, the distribution can be as optimal
as possible, since the jobs will be assigned to the most qualified employees for that
task.

4. Develop a winning talent

It should focus on the performance of the members of the company. Nowadays, it

is essential to be up to date with the latest technological tools. For this reason,
members must acquire new skills and/or improve the professional capabilities they
already possess.

Having a group of competent and trained employees is not everything; each

member or group of employees must be assigned the tasks they can perform in a
professional and effective manner. This will provide a competitive advantage that
will make a business venture stand out from the competition.

5. Integrating Entrepreneurial Habits

It makes the most successful entrepreneurs increase the capital and value of their
businesses. Positive reinforcement, rewarding or giving credit to good employee
performance helps motivation and commitment to the business.

If members feel that the work they do is recognized, productivity will increase.
Otherwise, when they feel ignored or undervalued, effectiveness can be negatively
affected.

In business entrepreneurship, business strategies are used because they make a

difference to success. Achieve the objectives, follow the steps on time, train the
team, know the market.
Everything that increases profits in defined times will improve the efficiency of the
employees and the position of the company; this thanks to the efforts and changes
proposed in the winning strategy.

Management and harvesting of a Venture

When running a business it is worth mentioning that we should maintain the

traditional approach of negotiating good prices with suppliers and not spending on
things that are not necessary for the business.

1. Keep your numbers in order

The company's accounting is not only for tax purposes. It is the most important tool
to know the performance of the business and for decision making, both operational
and financial.

2. Manage your time well

Many business owners become enslaved by the operation and stop enjoying life,
their children, their homes, and the things they like to do because they have to
keep an eye on the business. It is true what the saying goes: "He who has a store,
let him take care of it" but we should not misinterpret this point as "you can never
have free time again".

3. Train yourself

The current business environment is very complicated and entrepreneurs must

have a broad vision complemented by multidisciplinary knowledge that allows them
to decide on a better basis the direction that the business should take.

4. Focus on growth

The entrepreneur must constantly look for options to grow the business as a way to
avoid stagnation and obsolescence. This forces him to reinvest part of his profits
in the same business to finance growth, so there is a need to be disciplined in
economic management and avoid at all costs "squeezing" the business. It is
convenient that the entrepreneur has an assigned salary, and limit himself to this
amount in order not to damage his business.

Conclusion

Entrepreneurs are an important part in the activities of the productive dynamics

since it allows to generate sustainable development and the creation of wealth.
Among the motivations for being an entrepreneur, the most important are personal
fulfillment, improvement of income, putting into practice the knowledge acquired,
family ties and contribution to society.

We cannot continue working with the same schemes of thought of the past if we
want social and economic development in a more encouraging scenario and with
greater participation of those who will set the tone for the changes of the future. We
must look at these problems, review them, turn them into challenges, see the
opportunities and turn them into hope instead of being the constant concern.
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