ENTREP MIND MIDTERM REVIEWER

Types of Entrepreneurs

 Founder or “Pure Entrepreneurs” – the founders and the one who started the company.
 Second Generation of Family-Owned Businesses – those who inherited the company
from their parents or relatives.
 Franchise – A franchisee licenses and brings the business name in exchange for
payments.
 Owner-Manager – a person who invests his time, skill, and resources on the firm.


Entrepreneurs and Managers

Entrepreneurs

- Is involved in the start-up process.

- Assumes financial, mental, and psychological risks.
- Is driven by the perception of opportunity.
- Initiate change.
- Is his own boss.
- Gets unlimited rewards.

Managers

- Helps run the business for a long period of time.

- Minimum risks involved.
- Currently possesses the resources provided.
- Improvements by executing and following rules and procedures.
- Is a hired employee.
- Fixed rewards and salary.
Entrepreneurial Input

ECONOMICAL

- Capital: one of the most significant requirements of starting a business

- Labor/Laborers: Preferably the quality of the labor rather than the quantity is being
prioritized.
- Raw Materials: The materials and tools needed to construct a product or service.
- Market: Competition when there are multiple buyers and sellers and no monopolizing is
involved, yet.
- Structure: The existing of the product or service can help you advertise and market, it
can also help you pave the way for your road map to success.

SOCIAL

- Background: The financial situation of a family or individual and their financial power.
- Educational attainment: specific educational backgrounds and professions have different
tools and resources that they use.
- Attitude of Society: Can be divided into 3 parts of age.
Senior Citizens, Middle Aged, Young Aged. They all have different views and needs
on a specific product or service.
- Cultural Views: Different views for different cultures determine on how we handle and
approach this kind of values.
- Motives: Money, Fame, and Power comes along way for an entrepreneur and investors.

Innovation and Entrepreneurship (Chapter 4 Discussion)

Innovation provides:

 An edge or advantage for entrepreneurs

 A key for change and improvement
Creativeness and Innovativeness can vary from other entrepreneurs, that is why entrepreneurs have different
approach from other entrepreneurs; some factors may include:

 Skills of an Entrepreneur
 Educational Background
 Critical Thinking or the mindset

Entrepreneur as an Innovator and Change-maker

Creativity is a vital part of innovation, which serves as the starting point of the innovation process.

Components of Creativity as a Change Maker:

 Knowledge – All the understanding an individual brings to bear on a creative effort. The entrepreneur
needs to gather knowledge for him/her to focus on a market and focus on the product/service or
method they are going to market.
 Creative Thinking – Relates to how people approach problems and depends on personality and
thinking.
 Motivation – Is one of the keys to creative production, the most important motivators are passion and
interest in the work itself. Though some other factors like emotional and mental capacity may include
but the main purpose is how to stay motivated to work.

Concept of Innovation
- Innovation is defined as doing something different, either the introduction of something new or
improving an existing product or method.

Example of innovation and an innovator:

Thomas Edison invented the first carbon-filament incandescent light bulb. It made significant impact on
people’s lives, literally brightening up their future and he revolutionized the way we see light sources.

He was an innovator who knew what he was doing and provided a lot of contribution to society.

Before we release our product or service to the world, we have some factors to consider as innovators. These
are:
 - Is it new or original?
- Can it be monetized?
- Is it Sustainable?
- Can it create a competitive advantage?

Innovations vs Invention

Innovation

- Introduction of a new product, service, or process into the market

- Can result into commercialization.
- Economic motive
- Usually induced.
- Spread across the organization.
- Brings organizational change.
- Succeeds invention.

Invention

- Creation of a new product, service, or process.

- May not be commercialized.
- It can be autonomous or induced.
- Can be for economic or noneconomic motive.
- Usually Restricted to R&D.
- May bring few changes in the organization.
- Precedes innovation.

Characteristics of Innovation:
 There is an object or target which is being changed.
 It can be a product, process, strategy, or society culture.
 Past Data is being used.
 Closely related to problem-solving
 An impact of change, the effects and significance.

Sources of Innovation

 Present and Potential Customer

 Existing companies
 Raw material provider
  Distributors and retailers
 Research and development
 Existing employees

So why innovate?

 Turbulent and rapidly changing economy

 Organization prepares themselves on innovate on a continuing basis
 Their survival chances are seriously threatened

Goals of Innovation

 Improving quality
 Creation of new markets
 Extension of product range
 Reducing Labor Cost
 Improving production process
 Conformance to regulations

Challenges and Myths in Innovation

Innovation is increasingly becoming the most important factor in a company’s success and expansion.
As a result, supporting innovation in your organization should be on of your top priorities.

 Employees aren’t empowered to innovate – Managers are worried that innovation may take
employees’ attention away from their daily tasks.
 Employees aren’t motivated to innovate – Once employees are empowered, they must be encouraged
to innovate.
 You’re missing an innovation strategy – Developing a simple innovation plan is crucial.
 Lack of collaboration – Collaboration is an essential part in innovation.
  Lack of diversity – Hiring for innovation and then forming diverse teams can bring a plethora of ideas
developed from many viewpoints.
 Missed connections with customers – Strong client awareness is necessary for detecting changes in
demand and staying ahead of future trends; it also provides a roadmap for the company’s next
challenges.
 You’re measuring innovation incorrectly – Evaluating and measuring innovation is critical to its ongoing
success.
Innovation is key initiative for creating success in your firm for the long-term and we need to plan for
these issues.

Innovation myths

Myth 1: It is about what we do behind closed doors

 It is about opening doors and listening

 Conversations are key drivers of innovation

Myth 2: Innovation just happens

 You make innovation happen

 Satisfy unmet needs

Myth 3: We need to reward innovation

 More importantly, we need to reward good failures

 Innovation paradox/conflict

Myth 4: It is all about working harder

 Also, work smarter

Myth 5: Innovation is about big ideas

 Real innovation captures both the limits and the creative potential of change.

Myth 6: We need our best and brightest

 We need people that think differently