TECHNOPRENEURSHIP base, with the hope that the creation

of appropriate strategies and

WEEK 1 innovations that could

Difference between Cyberpreneurship and Traits and Characteristics of

Technopreneurship Technopreneur

• Traits and Characteristics of First things first, an entrepreneur is different

Technopreneur from a technopreneur. An entrepreneur is
someone who waits for an opportunity, so he
•Importance of Technopreneurship can turn that chance into a product or
something that can be sold; as for a
• Successful Global and local technopreneur, he is someone who starts
Technopreneurs from scratch with nothing in his mind but
only his concepts to establish something
Challenges in Technopreneurship where he can earn. Typically,
technopreneurs make use of the technology
Cyberpreneurship and Technopreneurship so they can formulate innovations to help
the society.
Entrepreneur
- is the person who dared to take a step If you are planning to start a business from
to enter a particular activity or to zero, but you have a creative mind, start by
welcome a new challenge in being a technopreneur. Every enterprise
entrepreneurship, there are three comes from ideas beginning at the back of
things most important are: creativity, your mind. Below is a list of common traits
innovation, opportunity-creation, and of some successful technopreneurs.
Calculated risk- taking.
Traits and Characteristics of
Cyberpreneurship Technopreneur
- is a business activity and business by
using improved computer Effective Leadership Skills
technology, especially the Internet, in - Everything will start with you. You
this business and businesses that are are your own master. If you have a
promoted using electronic brochures, team, have the initiative to start the
known as the homepage on the concept by being creative. Be the
Internet. good boss that everyone adores;
make sure that you are also
Technopreneurship considering the thoughts of your
- is a process in the formation of new team members. From each idea, you
businesses that view technology as a can patch the ideas together and
 formulate a bigger and more feasible - You'll never know, someday, your
one. ideas might turn into million dollars.
Entering the business world with
Good Follower nothing, the best way to ensure your
future is to get business owners
- Aside from being an effective leader, policy that can cover your business.
you should also be a good follower.
Do not boss around because your Importance of Technopreneurship
venture is still small. Listen to the
ideas that your team is pitching. - Technopreneurship has not been a
widely tackled topic in business
Adapted to Changes forums and entrepreneurial seminars.

- You should prepare backup plans in - Apparently, technopreneurship is

case things do not work out in the recognized as a prolific idea in
way you're planning them. Of today's digital era because of four
course, not everything will be reasons: limitless opportunities,
favorable to you. You should be market expansion, reduced costs, and
flexible and adapt well to changes access to information.
that might occur. Failure is a type of
change, and you should not be afraid Limitless Opportunities
to face it. Learn from it.
- The 21st-century is the age of
Focused and Determined information. Hence, if you have an
idea, you could easily obtain
- Keep your eye on your goal. Since information about available
you're starting up from nothing but opportunities to turn it into a
your concepts in mind, you should business with just one click. Plus,
have a clear target on your future. Do technological advancement has been
not give up if you fail once because in this generation's DNA that it
it will serve as an experience. comes as an anticipated reality rather
than a shocking revelation. People
Skilled in Planning expect new technologies to emerge
every day. They aspire to get things
- When it comes to planning, keep in done fast and easy. Technopreneurs
mind that your plans should be only need to tap into this resource,
attainable. Have an established think creatively, and turn the idea
objective on what you want to do in into a successful business venture.
starting your business.
Market Expansion
 in e-commerce, remote work, or
- One of the major contributions of networking. Because of
technopreneurship is the growth of technopreneurship, the market has
the internet. Today, the internet is a expanded. As a result, businesses are
primary channel for businesses, be it able to reach more customers,
in e-commerce, remote work, or acquire and choose from the best
networking. Because of suppliers, and build better
technopreneurship, the market has relationships with their target
expanded. As a result, businesses are market.
able to reach more customers,
acquire and choose from the best Reduced Costs
suppliers, and build better
relationships with their target - Consistent with the rapid market
market. expansion as brought about by
technopreneurship, businesses are
Limitless Opportunities more likely to cut on costs. This is
because more opportunities are
- The 21st-century is the age of available, which means that there are
information. Hence, if you have an more options to choose the least
idea, you could easily obtain expensive option. In effect, it will
information about available bring positive results to the
opportunities to turn it into a businesses. Likewise, technopreneurs
business with just one click. Plus, could tap onto this opportunity since
technological advancement has been IT products and services might just
in this generation's DNA that it require lower costs but produce
comes as an anticipated reality rather higher returns.
than a shocking revelation. People
expect new technologies to emerge Access to Information
every day. They aspire to get things
done fast and easy. Technopreneurs - This is perhaps a no-brainer because
only need to tap into this resource, we all know that technology is the
think creatively, and turn the idea reason why we are living in the
into a successful business venture. information age where loads of data
are at our fingertips. Through
Market Expansion technopreneurship, businesses find it
more efficient to store information,
- One of the major contributions of thereby, retrieving information also
technopreneurship is the growth of becomes more efficient.
the internet. Today, the internet is a
primary channel for businesses, be it
 - Technopreneurship could be the
source of sustainability for 3. Mark Zuckerberg
business-minded individuals and for
organizations looking to improve Mark Zuckerberg developed the most
their project. It could take time, yes, popular social networking application
but maybe you only need to take the Facebook. He a great technical programmer
first step. An idea, once polished and who started doing technical things from
thoughtfully crafted, could turn into school days. Zuckerberg created Facebook
a Eureka moment. Technology is when he was at Harvard University along
becoming more and more alive as if with his friends. is
telling us to grab the opportunity.
Initially, he created Facebook for university
Successful Global Technopreneurs fellows' internal communication, which
lately has become the strongest and popular
1. Jeff Bezos social media network worldwide.

Jeff Bezos is the CEO of an online empire Zuckerberg became the world's youngest
Amazon. He built milestones in the billionaire and technopreneur at the age of
e-commerce world. He started by selling 23. He also faced criticism. So, he started
books online in the 1990s and led the basis working on what users want and providing
of online stores globally. Jeff's name comes them more privacy. He learned that what
on the list of the world's wealthiest really matters was user experience. He
technopreneurs. In the beginning, he worked entered the world's wealthiest people list and
in different fields at the walled street and is the youngest entrepreneur in the top 20
completed his graduation from Princeton billionaire list.
University.
4. Bill Gates
2. Elon Musk
Bill Gates is known for creating software
Elon Musk invented Tesla Motors, which called Microsoft. He created software and
are fully electric sports cars. The most sold it to the first personal computer
famous technopreneur of present times. He company, and he became very successful.
was the one who made a fortune as an After this, he left the university and started
entrepreneur in the technology world. Musk working in Microsoft software along with
founded PayPal, the popular online payment his mate. Later, Gates was named as the
network. He invested $70 million in Tesla CEO of Microsoft.
and $80 million in SpaceX and doesn't have
that much money. He went through many Bill Gates is a very well-known
financial crises and took loans. Today he is technopreneur and the world's richest
the CEO of SpaceX and Tesla motors. person. He is an intelligent, self-made
individual who runs a business that has Joey has co-founded several other software
become the focus for everyone. including start-ups such as SPRING.ph. Joey served as
TV, press, and media. Entrepreneurs are role the Asia Pacific Regional Director for
models for many struggling individuals. He Microsoft Business Solutions, before he left
got the title of the world's richest person to form his own Gurango Software. He is
from 1995 to 2017. And presently, he is on currently the CEO of Gurango Software,
number second after Jeff Bezos. global provider of Human Capital
Management solutions. It is hailed as the
Successful Local Technopreneurs most successful Microsoft Dynamics partner
in the Philippines.
1. Diosdado "Dado" Banatao, Monstron
3. Orlando Vea
Dado Banatao is a popular name in Filipino
success stories and technopreneurs forum. Orlando was raised by civil servant (his
He was born in Cagayan Valley Province, a father) and retired school teacher (his
place where landscapes of farm is visible. mother). He graduated from the University
His father is a rice farmer and housekeeper. of the Philippines in 1970 with a degree in
A.B. Economics, cum laude.
He then went to Ateneo de Tuguegarao and
at an early age of 15 pursued college Orlando B. Vea was appointed Chief
education at Mapua Institute of Technology Wireless Advisor of SMART. Until his
where he graduated cum laude with an appointment, he was head of the PLDT
Electrical Engineering degree. Group's media and content businesses as
President and CEO of MediaQuest
After accomplishing a degree at Mapua Holdings, Inc, a wholly- owned subsidiary
Institute of Technology, Dado went to of the PLDT Beneficial Trust Fund,
United States and worked while enrolling in responsible for the Group's thrust into
a graduate study program at the University Mobile TV, Direct to Home TV and its
of Washington. He also pursued a Master of initiatives toward other major mass media
Science in Electrical Engineering and and new media platforms.
Computing Science at Stanford University.
Mr. Vea is not new to SMART. He founded
Dado was also fortunate for spending time the company in 1991 and was President and
with engineers and professors at Homebrew CEO until 2000. He led the company during
Computer Club, including the legendary that period from start-up to a leadership
Steve Jobs and Steve Wozniak. position in the mobile telecommunications
industry.
2. Joey Gurango
4. Winston Damarillo
Winston was born in a small town in Bohol. the morning and the last to leave at night.
In an interview of GMA News, Winston Business hours are set at the convenience of
shared his family experience back then. He customers, not the desire of the owner.
came from well-off family and all of a
sudden loss everything. At age 19 and (d)Time involvement: Starting a small
schooling for De La Salle University, he business takes a lot of hard work. In fact, it
began to sell bulldozer parts. may consume most of your day in the first
few years.
Before his major entrepreneurial endeavors,
Winston went to the States to pursue his WEEK 2
dream of working for Microsoft, IBM or
Intel. He was among the highest performing Creativity
venture capital professionals at Intel.
Winston Damarillo is the chief executive Creativity
officer and co-founder of Morphlabs.
Winston is a proven serial entrepreneur with Creativity Process
a track record of building successful
technology start-ups. Creativity Techniques

Challenges in Technopreneurship -Brainstorming

A techno- entrepreneur should be ready to -Forced Analogy

face the following challenges:
-Do it
(a)Possible loss of invested capital: One risk
of -Mind Mapping

technopreneurship is the possibility of losing -Nominal Group

your invested capital. A risk is always a risk.
However, you stand the best chance of Characteristics of a Creative Individual
success if you take calculated risks.
Creativity
(b)Uncertain income: Unlike the salaries of
employed workers, profits usually vary from - is one of those traits that people
one month to another. seem to have an intrinsic
understanding of, but if you actually
(c)Long business hours: Many ask them to define it, they get tripped
technopreneurs work fourteen or more hours up. It's easy to come up with a list of
a day, six or seven days a week. The owner creative people (Frida Kahlo, Steve
is often the first to arrive at the business in Jobs and Steve Wozniak, Einstein),
 and the outcomes of creativity (a Stage 3: Illumination
novel, an invention, a new way of
looking at the world), but it's Next comes the elusive aha moment. After a
difficult to wrap your head around period of incubation, insights arise from the
the actual concept of creativity. The deeper layers of the mind and break through
more I researched this article, the to conscious awareness, often in a dramatic
more I realized creativity is an way. It's the sudden Eureka! that comes
incredibly nuanced phenomenon. when you're in the shower, taking a walk, or
occupied with something completely
unrelated. Seemingly out of nowhere, the
Understanding the four stages of the solution presents itself.
creativity process
Stage 4: Verification
Stage 1: Preparation
Following the aha moment, the words get
The creative process begins with written down, the vision is committed to
preparation: gathering information and paint or clay, the business plan is developed.
materials, identifying sources of inspiration, Whatever ideas and insights arose in stage 3
and acquiring knowledge about the project are fleshed out and developed. The artist
or problem at hand. This is often an internal uses critical thinking and aesthetic judgment
process (thinking deeply to generate and skills to hone and refine the work and then
engage with ideas) as well as an external one communicate its value to others.
(going out into the world to gather the
necessary data, resources, materials, and Creativity Techniques
expertise).
Brainstorming
Stage 2: Incubation - is a group creativity technique by
which efforts are made to find a
Next, the ideas and information gathered in conclusion for a specific problem by
stage 1 marinate in the mind. As ideas gathering a list of ideas
slowly simmer, the work deepens and new spontaneously contributed by its
connections are formed. During this period members
of germination, the artist takes their focus
off the problem and allows the mind to rest. Forced Analogy
While the conscious mind wanders, the - is a creativity technique that helps to
unconscious engages in what Einstein called break out of accustomed patterns of
"combinatory play": taking diverse ideas thought. It uses the recognition that
and influences and finding new ways to we grasp our environment by
bring them together. assigning things that are similar to
each other to the same category.
 Example: An airplane resembles a Risky environments force them to challenge
helicopter. themselves to seek multiple solutions.

- The pattern of the DO IT process They have the dare to fail attitude
emphasizes the need to Define problems,
Open yourself to many possible solutions, Failure for them is a learning curve. They
Identify the best solution and then learn from all the mistakes made and all
Transform it into action effectively. those mistakes actually stimulate a higher
sense of curiosity in them. They have an
Mind mapping open-mind view of things that there are
- was developed as an effective many other doors that would lead them
method for generating ideas by towards a solution they are looking for in
association. In order to create a mind facing current challenges. Elon Musk,
map, you usually start in the middle known for having to revolutionise every
of the page with the central theme/ industry he has touched (Paypal in electronic
main idea and from that point you cash, Tesla in automotive and SpaceX in
work outward in all directions to rocket technology) invested over $100
create a growing diagram composed million of his own money into SpaceX and
of keywords, phrases, concepts, facts experienced a series of rocket launch failure.
and figures. He kept pushing despite all the failures in
order to explore the possibilities of building
The nominal group technique human settlements in Mars by 2060.
- is a variation of brainstorming where
individuals come up with ideas on They are willing to be different
their own rather than as a group.
Once different ideas are established, In fact, they like to be different from the
they are evaluated, ranked, and masses. Remember how Mark Zuckerberg
agreed upon collectively. The has always been noticed wearing the almost
top-ranked ideas are selected as the identical round neck t-shirt nearly every
output of this process. day? And Steve Jobs with his turtlenecks?
Zuckerberg was reported having to explain
Characteristics of a Creative Individual that clothing is a 'silly' decision that he
doesn't want to spend too long making as he
They are risk takers wants to dedicate his energy on how best to
grow his business and help to serve the
Creative thinkers are risk takers. They just community. What people think of them is
love taking risk. In fact they would be very not really a matter of concern as they have a
eager and excited to take up a project with very clear objective in life.
high risk potential rather than going through
routine tasks they considered as mundane. They choose to become a divergent
They will do things that may challenge the The Importance of Innovation in Business
boundary of normal thinking and
perspective. They think outside the box (and Innovation, as a concept, refers to the
they really, really do think outside the box) process that an individual or organization
where they see opportunities and solutions undertakes to conceptualize brand new
from all sorts of angles that remained products, processes, and ideas, or to
unnoticed to many others. They are also approach existing products, processes, and
highly curious and inquisitive. Founder of ideas in new ways.
amazon.com, Jeff Bezos is one great
example of a divergent. They see the world In the world of business, there are many
as a laboratory and they continually seek to different types of innovation that a company
answer the 'what-if' questions as they search might pursue.
for new solutions. This often leads to the
birth of many innovators. These are often tied directly to individual
products, internal processes or workflows,
They are impulsive, fickle and change or business models. Some companies even
their mind quite often embrace all three in an effort to spearhead
growth while adapting to the ever- changing
Too often creative thinkers are being market.
exposed to new experiences, leading their
minds in constant mode of thinking. They Types of Innovation
gauge huge amount of thoughts and opinions
towards a problem they try to solve. This Incremental Innovation
then resulted into them revising their
understanding of a matter in an amazingly Incremental Innovation is the most common
fast cycle and often decisions too. They tend form of innovation. It utilizes your existing
to be fickle in many aspects of life as they technology and increases value to the
are deeply engaged in the creative thinking customer (features, design changes, etc.)
process. Adding to the result, they tend to within your existing market. Almost all
make impulsive decisions in accordance to companies engage in incremental innovation
their own ways of thinking, which is then in one form or another.
misunderstood by many and interpreted as
'not having a stand'. Disruptive Innovation

WEEK 3 known as stealth Know innovation, involves

applying new technology or processes to
Innovation your company's current market. It is stealthy
in nature since newer tech will often be
What is Innovation inferior to existing market technology.
 The Content Management System (CMS)
Architectural Innovation - is a software which stores all the data
such as text, photos, music,
Architectural innovation is simply taking the documents, etc. and is made
lessons, skills and overall technology and available on your website. It helps in
applying them within a different market. editing, publishing and modifying
This innovation is amazing at increasing the content of the website.
new customers as long as the new market is
receptive - WordPress was initially released on
27th May, 2003 by Matt Mullenweg
Radical innovation and Mike Little. WordPress was
announced as open source in October
Radical innovation is what we think of 2009.
mostly when considering innovation.
Features
Principles of an Innovative Individual
User Management: It allows managing the
Be an Action Oriented user information such as changing the role
Start Small of the users to (subscriber, contributor,
Aim High author, editor or administrator), create or
The rule of try,test and revise delete the user, change the password and
Learn from failures user information. The main role of the user
Reward heroic activity manager is Authentication.
Work work and work
Media Management: It is the tool for
WordPress managing the media files and folder, in
which you can easily upload, organize and
WordPress manage the media files on your website.
- is an open source Content
Manag0ement System (CMS), which -Theme System: It allows modifying the
allows the users to build dynamic site view and functionality. It includes
websites and blogs. Wordpress is the images, stylesheet, template files and
most popular blogging system on the custom pages.
web and allows updating,
customizing and managing the -Extend with Plugins: Several plugins are
website from its back-end CMS and available which provides custom functions
components. and features according to the users need.

Content Management System (CMS)

Search Engine Optimization: It provides -It allows creating different roles for users
several search engine optimization (SEO) for website such as admin, author, editor and
tools which makes on-site SEO simple. contributor.

Multilingual: It allows translating the entire Disadvantage

content into the language preferred by the
user. -Using several plugins co th Website heavy
to load and run. PHP knowledge is required
Importers: It allows importing data in the to make modifications or changes in the
form of posts. It imports custom files, WordPress website..
comments, post pages and tags.
Sometimes software needs to be updated to
Advantages keep the WordPress up-to-date with the
current browsers and mobile devices.
-It is an open source platform and available Updating WordPress version leads to loss of
for free. data, so it a backup copy of the website is
required.
CSS files can be modified according to the
design as per users need. Modifying and formatting the graphic
images and tables is difficult.
-There are many plugins and templates
available for free. Users can customize the System Requirements for WordPress
various plugins as per their need.
Database: Mysql 5.0+
It is very easy to edit the content as it uses Web Server:
WYSIWYG editor (What You See Is What °Wamp (Windows)
You Get is a user interface that allows the °Lamp( Linux)
user to directly manipulate the layout of ° Xamp ( Multi-platform)
document without having a layout ° Mamp ( Macintosh)
command). Operating System: Cross-platform
Browser Support: IE, Firefox, Google
-Media files can be uploaded easily and Chrome, Safari, Opera
quickly. PHP Compatibility: Php 5.2+

-It offers several SEO tools which makes Download WordPress

on-site SEO simple.
When you open the link
-Customization is easy according to the
user's needs. https://wordpress.org/download/, you will
get to see a screen as the following snapshot:
 creating and explores new ideas Creative
MIDTERM: entrepreneur creates new products for
existing services and product
Topic 1
Thinking of novel ways to develop your
Importance of Creativity and Innovation product and improve the business

Creativity boosts Business reputation - There is always an opportunity for

improvement in the deliverables of an
- In competitive market nowadays, enterprise. Creativity and innovation helps
entrepreneurs with same feature of product develop new ways of improving an existing
selling need to find the different and product or service to optimize the business.
appealing to attract customers The product
and services for certain business should be Finding Similar patterns in different
able to distinguish Creative entrepreneurs areas
must be able to: value add the speciality in
their product and services. -Creative people would sometime able to
connect dissimilar and unrelated subject and
Creativity source of Business survival make successful entrepreneurial ideas.
Interesting ideas could come from colliding
- Competitive market nowadays requires different fields.
entrepreneur to be creative for them to be
not left behind It is essential for business Creativity is Problem Solving
environment to compete in an increasingly
challenging world at the moment. -In developing new strategies to keep the
business running competitively, creative
Creativity spurs to Entrepreneurial problem solving provides a competitive
quality advantage that every business wants to
achieve.
- The advantage by taking creativity as
priority leads the entrepreneurial towards Strategies to encourage creativity and
better quality Creativity required one's to innovation
solve the problem. occur and need to come
with relevant and reliable solution Encourage Individuality

Creating new ideas for competitive -Let your employees know that you value
advantages their thoughts. It sounds simple, but
employees get used to feeling like part of the
- The whole process of entrepreneurship pack and can sometimes think it's better to
itself rooted in creation and exploration of
just keep up with their workload, blend in, ->Managerial Encouragement
and not become a squeaky wheel. -Support for Teamwork:

Organizational Motivation and Topic 2

Encouragement of Innovation
Intelectual property (IP) refers to creations
-Organizational Encouragement: This is a of the mand such a eventions, therary and
culture that encourages creativity through arbelic works designs, and symbule names
the fair, constructive judgment of ideas, and Images used in commence
reward and recognition for creative work,
mechanisms for developing new ideas, and 5 Types of Intellectual Property
an active flow of ideas and a shared vision. 1. Patent
2. Copyright
-Lack of Organizational Impediments: A 3. Trademark
culture of innovation doesn't impede 4. Trade Secrets
creativity through internal political 5. Right of Publicity
problems, harsh criticism of new ideas,
destructive internal competition, avoidance Intellectual Property Creates and
of risk, or an overemphasis on the status quo Supports High-Paying Jobs

Resources to Support an Innovative -> IP-intensive industries employ over 55

Culture million Americans, and hundreds of millions
of people worldwide.
-Sufficient Resources: Innovation doesn't
happen in a silo, so employees need access -> Jobs in IP-intensive industries are
to appropriate resources, including funds, expected to grow faster over the next decade
materials, facilities, and . Information. than the national average.

-Realistic Workload Pressures: Extreme time -> The average worker in an IP-intensive
pressures, unrealistic expectations for industry earned about 30% more than his
productivity, and distractions from creative counterpart in a non-IP industry
work are counterproductive when creating a
culture of Innovation. -> The average salary in IP-intensive
industries pay $50,576 per worker compared
Management Practices That Support to the national average of $38,768
Creating a Culture of Innovation
-> America's IP is worth $5.8 trillion, more
-Freedom: than the nominal GDP of any other country
->Challenging in the world.
->Work
-> IP-intensive industries account for over Innovative agricultural companies are
1/3-or 38% of total U.S. GDP creating new products to help farmers
produce more and better products for the
->These industries also have 72.5% higher world’s hungry while reducing the
output per worker than the national average, environmental impact of agriculture.
valued at $136,556 per worker.
IP accounts for 74% of all US exports- IPdriven discoveries in alternative energy
which amounts to nearly $1 trillion and green technologies will help improve
energy security and address climate
-> The direct and indirect economic impacts change.
of innovation are overwhelming, accounting
for more than 40% ous economic growth Intellectual Property Rights
and employment. Encourage Innovation and
Reward Entrepreneurs
Strong and Enforced Intellectual
Property Rights Protect Consumers and
Families Risk and occasional failure are the
lifeblood of the innovation
Strong IP nights help consumers make an economy. IP rights incentivize
educated choice about the safety, reliability, entrepreneurs to keep pushing for
and effectiveness of their purchases. new advances in the face of
adversity.
Enforced IP rights ensure products are
authentic, and of the high-quality that IP rights facilitate the free flow of
consumers recognize and expect. information by sharing the protected
know-how critical to the original,
IP rights foster the confidence and ease of patented invention. In turn, this
mind that consumers demand and markets process leads to new innovations
rely on and improvements on existing ones

Intellectual Property Helps Generate

Breakthrough Solutions to Global WEEK 2: PLANNING AND
ORGANIZING
Nearly all of the 300 products on the World A BUSINESS
Health Organization’s Essential Drug List,
which are critical to saving or improving THE PRINCIPLES AND CONCEPT OF
BUSINESS OWNERSHIP
people’s lives around the globe, came from
the R&D-intensive pharmaceutical industry PRINCIPLES
that depends on patent protections.
● The principle is an activity of buying
and selling stuff to get profit.
 ● A service that been provided to get
profit is also one of the principles. a. Sole Proprietorship
Concept ● A sole proprietorship, also known as
● This exist because the desire of a sole trader or simply a
human is unlimited and different proprietorship
while their ability is limited. ● Is a type of business entity that is
owned and run by one individual and
FACTORS THAT INFLUENCE THE in which there is no legal distinction
CHOICE OF ENTERPRENEURIAL between the owner and the business.
OWNERSHIP ● The owner receives all profits
(subject to taxation specific to the
a. Capital business) and has unlimited
● In the financial sense, is the money responsibility for all losses and debts
that gives the business the power to b. Partnership
buy goods to be used in the ● Partnerships are detined by the
production of other goods or the Partnership Act of 1890: "The
offering of a service. (The capital has relationship which subsists between
two types resources Equity and persons carrying on a business in
Debt) common with a view of profit". A
b. Personal Assets partnership is neither incorporated
● Is an important part of managing nor registered as a company;
one's overall financial situation. generally partnerships consist of
● Personal assets can be a liability or a ordinary partners who are legally
genuine asset, depending on how liable for the business.
they are handled and taken care of, ● By starting this type of business you
and developing an asset allocation are able to raise capital more freely.
strategy is very important. The business is not reliant upon one
c. Span of control persons skills. The business can use
● Span of control is a term originating different persons strong points to
in military organization theory, but their advantage.
now used more commonly in c. Companies
business management, particularly ● There are four main types of
human resource management. Span companies which are as follows:
of control refers to the number of ● Private Company Limited by
subordinates a supervisor has. share- members liability is
d. Sharing information only limited by the amount
● information sharing referred to unpaid on shares they hold.
one-to-one exchanges of data This includes community
between a sender and receiver interest companies (CICs)
● Type of sharing information is which are private companies
one-to-one, one-to-many, limited by shares.
many-to-many, and many-to-one ● Private company limited by
guarantee- members' liability
TYPES AND CHARACTERISTICS OF is limited by the amount they
BUSINESS have agreed to contribute to
OWNERSHIP the company's assets if it is
 wound up. This includes all ● In general the financial
RTM (Right to Manage resources of a single
companies, common hold proprietorship are not enough
associations and those to transform the business into
community interest a large scale enterprise.
companies which are Considering its small assets,
companies limited by banks are reluctant to grant
guarantee. big loans.
● Private unlimited company- ● Benefits of specialization in
there is no limit to members' business management are not
liability. present in small scale
● Public limited companies proprietorship.
(PLC) - the company's shares There is only one manager. In
may be offered for sale to the not a few cases, the owner is
general public and the the only employee.
members liability is on only ● The owner has unlimited
limited to the amount unpaid liability. This means that the
on shares held by them. This owner of the business risks
also includes community not only the assets of his
interest public limited small enterprise, but also his
companies other personal assets like his
piece of land, bank deposits,
DISTINGUISH THE ADVANTAGES and other personal properties
AND DISADVANTAGES OF EACH which are not part of his
ENTERPRENEURAL OWNERSHIP business. In case of loss, such
assets are subject to financial
a. Sole Proprietorship claims by creditors.
a. Advantages of Single or Sole b. Partnership
Proprietorship a. Advantages of Partnership
● It is easy to organize. ● It is also easy to organize
Financial capital is small, and like single proprietorship.
registration requirements are Legal red tape in connection
not difficult to comply with. with its registration is not
● The single proprietor is the much.
boss. He makes the decisions ● Better management because
and enjoys substantial of the presence or more
freedom of action. participants in the operations
Possibilities of conflicts or of the business.
quarrels are minimized. ● Possibility of bigger
● The owner acquires all the resources than in the single
profits from his business. proprietorship exists.
This gives him more Financial institutions may
incentives to make his extend bigger loans to such
business grow. business organization
b. Disadvantages of Single or Sole considering the combined
Proprietorship resources of the partners.
 b. Disadvantages of Partnership ● It is capable of getting the
● Conflicts or quarrels most efficient management
between or among the considering its huge
partners regarding the resources and large
management or policies of scale-corporations.
the business. b. Disadvantages of a company
● It lacks stability. The death or ● It is not easy to organize a
withdrawal of one partner corporation, there is much
dissolves the partnership. To paperwork involved in
continue its operation, a securing a charter. A charter
complete reorganization is is a written document which
needed. contains the objectives and
● Like the single proprietor, activities of the corporation,
the partners are also subject among other things. It takes a
to unlimited liability. longer time to secure the
c. Company approval.
a. Advantages of a company ● Abuses of corporation
● In case the corporation officials are likely to emerge
becomes bankrupt, only the in situations where many
capital contributions of the stockholders do not
members are affected. The participate actively in the
other personal properties of affairs of their corporation.
the stockholders of a Not a few stockholders do
corporation are excluded not exercise their voting
from financial claims of rights during important
creditors of the corporation. meetings. Either, they are
● It has the most effective absent or they let others cast
means of raising money their votes (proxy voting).
capital for its operations, by Examples of abuses of
selling stocks. Stocks are corporate officials are large
certificates of ownership. salaries and fat allowances
● It has permanent existence. for them.
The death withdrawal of ● Some corporations are
some officers and members engaged in questionable
does not affect the existence activities. For instance, they
of the corporation. The pollute the environment or
corporation can easily get sell substandard goods. In
officers or managers from short, they do not comply
inside or outside the with their social
organization. Transfer of responsibility.
corporate ownership may ● There is a very impersonal or
take place any time through a formal relationship between
sale of stocks, but this does the officers and employees of
not disrupt the continuity of a a corporation. In the case of
corporation. single proprietorship and
partnership, constant and
 close contact between owners work. If you want to spend more time on
and employees create a very nonwork activities or with your family, you
personal and friendly don't have to ask for the time off. If it's
atmosphere. Everybody important that you bewith your family all
knows everybody. In a giant day, you might decide to run your business
corporation, it is not possible from your home, Given today's technology.
for the president or the board It's relatively easy to do. Moreover, it
chairman to meet personally eliminates commuting time.
all his employees in a year.
Gather information in the procedure of Financial rewards. In spite of high
registration of business ownership financial risk, running your own business
gives you a chance to make more money
- Come up with a good than if you were employed by someone else.
business idea You benefit from your own hard work.
- bWrite a business
plan Learning opportunities. As a business
- Choose a winning owner, you'll be involved in all aspects of
name for your your business. This situation creates
business numerous opportunities to gain a thorough
- Choose a form of understanding of the various business
business ownership functions
- Register your
business name Creative freedom and personal
- Find small business satisfaction. As a business owner, you'll be
financing able to work in a field that you really enjoy.
- Get a business You'll be able to put your skills and
license. knowledge to use, and you'll gain personal
satisfaction from implementing your ideas,
Midterm-Week 3: working directly with customers, and
watching your business succeed
Advantages and Disadvantages of Business
Ownership Disadvantages of Small Business
Ownership
Advantages of Small Business Ownership
As the little boy said when he got off his
Independence. As a business owner, you're first roller-coaster ride, "I like the ups but
your own boss. You can't get fired. More not the downs! Here are some of the risks
important, you have the freedom to make the you run if you want to start a small business:
decisions that are crucial to your own
business success. Financial risk. The financial resources
needed to start and grow a business can be
Lifestyle. Owning a small business gives extensive. You may need to commit most of
you certain lifestyle advantages. Because your savings or even go into debt to get
you're in charge, you decide when and started. If things don't go well, you may face
where you want to substantial financial loss. In addition, there's
no guaranteed income. There might be
times, especially in the first few years, when conducted by the Wall Street Journal and
the business isn't generating enough cash for Cicco and Associates indicates that small
you to live on business owners and top-level corporate
executives agree overwhelmingly that small
Stress. As a business owner, you are the business owners have a more satisfying
business. There's a bewildering array of business experience, Interestingly, the
things to worry about-competition, researchers had fully expected to find that
employees, bills equipment breakdowns, small business owners were happy with their
customer problems. As the owner, you're choices; they were, however, surprised at the
also responsible for the well-being of your number of corporate executives who
employees. believed that the grass was greener in the
world of small business ownership.
Time commitment. People often start
businesses so that they'll have more time to KEY TAKEAWAYS
spend with their families. Unfortunately,
running a business is extremely There are several advantages that, generally
time-consuming. In theory, you have the speaking, come with success when you start
freedom to take time off, but in reality, you in business ownership:
may not be able to get away, in fact, you'll
probably have less free time than you'd have Independence. As a business owner, you're
working for someone else. For many your own boss.
entrepreneurs and small business owners, a
forty-hour workweek is a myth; see Figure Lifestyle. Because you're in charge, you
1. "The Entrepreneur's Workweek." decide when and where you want to work.
Vacations will be difficult to take and will
often be interrupted. In recent years, the Financial rewards. In spite of high
difficulty of getting away from the job has financial risk, running your own business
been compounded by cell phones, iPhones, gives you a chance. to make more money
Internet-connected laptops and iPads, and than if you were employed by someone else.
many small business owners have come to
regret that they're always reachable. Learning opportunities. As a business
owner, you'll be involved in all aspects of
Undesirable duties. When you start up, your business.
you'll undoubtedly be responsible for either
doing or overseeing just about everything Creative freedom and personal
that needs to be done. You can get bogged satisfaction. As a business owner, you'll be
down in detail work that you don't enjoy. As able to work in a field that you really enjoy,
a business owner, you'll probably have to and you'll gain personal satisfaction from
perform some unpleasant tasks, like firing watching your business succeed.
people.

Insight There are also a number of potential

disadvantages to consider in deciding
In spite of these and other disadvantages, whether to start a small business:
most small business owners are pleased with
their decision to start a business. A survey
Financial risk. The financial resources
needed to start and grow a business can be The personal factors of an individual also
extensive, and if things don't go well, you influence his spirit of becoming an
may face substantial financial loss. In
entrepreneur or not
addition, you'll have no guaranteed income.

Stress. You'll have a bewildering array of The entrepreneur having qualities of

things to worry about-competition, immense imaginations, malurity, optimism,
employees, bills, equipment breakdowns, foresightedness, ability to bear risks,
customer problems. efficiency, self-coincidence, materuhip
ability, dynamic thinking, hard work,
Time commitment. Running a business is
honesty, etc. is sure to achieve success.
extremely time-consuming. In fact, you'll
probably have less free time than you'd have
working for someone else.. 3. Family Circumstances

Undesirable duties. You'll be responsible Every person has different family

for either doing or overseeing just about circumstances.
everything that needs to be done, and you'll
probably have to perform some unpleasant
It is often observed that due to family
tasks, like firing people.
non-cooperation enterprises get frustrated,
PREFINALS whereas a person becomes a successful
entrepreneur with a family Corporation,
Week I- Pre Finals
4. Government Policies, Facilities, and
ENTREPRENEURIAL VENTURE Incentives

The factors that influence entrepreneurial Various government policies like the
venture. Economic policy, Taxation Policy,
Import-Export Policy, and Licensing Policy,
1. Aspiration and Attitude etc.

Every person acts and behaves according to Effect the development of entrepreneurship
his aspirations and attitude. or entrepreneurial

A person with high ambitions helps himself If the government provides basic
to become a big entrepreneur, Similarly, a infrastructural facilities, like electricity,
person has the attitude to work as an transport, banking, insurance,
entrepreneur, only then he can achieve communication, water, raw materials, and
success warehousing facilities, etc.

2. Personal Factors
It certainly results in the development of The government may create the conditions
entrepreneurship or entrepreneurial. of healthy competition by its policies and
various laws.
5. Social and Cultural Factors
8. Economic and Business Environment
Social organizations, traditions, level of
education, personal behavior, situational The economic and business environment of
circumstances, caste or class system, family the country also affects or entrepreneurial.
training and another ethical level of the development of entrepreneurship
society are such social and cultural
elements, which affect the devwaunant of Availability of basic infrastructural facilities,
antrepreneurship or entrepreneurial. industrial areas and estates, raw material,
labour, transport, communication, Insurance
In addition, the political environment of the and financial facilities, price level, trade
country also affects the development of cycles, economic stability, and investment
entrepreneurship or entrepreneurial. position in the country are such motivating
elements that influence the development of
6. Progeny and Traditions entrepreneurship or entrepreneurial

Traditions of society and family have a 9. Support System

substantial impact on the working style of an
individual. Availability of support system, like specific
Financial Institutions, advisory services, and
Even today, in our society, various sections expenditure on research and investigations,
of the Vaishya community better understand etc.
the intricacies of business and are more
suited to business. have also ther le in the development of
entrepreneurship or entrepreneurial class.
7. Business Competition
10. Attitude of Big Entrepreneurs
If healthy competitive conditions prevail in
society, the development of entrepreneurship Big entrepreneurs inary motivate and inspire
or entrepreneurial is sure, whereas the small entrepreneurs with success and
unhealthy competition blocks the prospenty
development of entrepreneurship or
entrepreneurial Besides, the positive attitude of big
entrepreneurs is also trupining for small
Various ancillary small indusbles can be entrepreneurs,
developed, along with big Industries..
Big entrepreneurs may boost up the morale entrepreneurship which otherwise is not
of small entrepreneurs by providing them easily possible.
knowledge about law, buliding, raw
materials, techniques, and marketing, etc. Alternatives of starting a new
entrepreneurial venture
11. Entrepreneurship Oriented Education
and Training Introduction

Education and training as an important role The dream of being an entrepreneur appeal
development of entrepreneurship to many people, but starting your own
business from the bottom up can be
The entrepreneurs are not born but daunting. Some arbimatives deliver many
developed as auch, by way of proper benefits of being a business paner while
education, training and counseling. avoiding some of the drawbacks to starting
a business.
In India also the prospective are educated
and trained through entrepreneur by By exploring alternatives, you may be able
entrepreneurship development program to find one that will give you the experience
various technical and management you are looking for while minimizing the
Institutions difficulties of entrepreneurship, if none of
them scratch that itch, maybe it is time to
These institutions provide details training roll up your sleeves and build a business
about feasibility reports, industrial project from the ground up.
reports, etc
Alternatives to Starting Your Own
12. Role of Banks and Financial Institutions Business

Banks and Financial Institutions also played Invest in Other People's Startups
an important role in the development of
entrepreneurship or entrepreneurial Although it may not carry the same
attraction, investing in startups and
If these institutions quickly approve the established businesses can be as profitable
projects submitted by the entrepreneurs as running them. Publicly traded venture
Business and Industrial Enterprise provides capital funds scout and invest in startups,
encouragement for the establishment of creating a portfolio of businesses that might
make it big. With a single investment, you
It also simplifies the policies and procedures can get access to a wide portfolio of
for providing loans and credit, and also businesses that have passed the venture
provides facilities for l restigation which capital firm's tests.
results in the development of
Buy an Existing Business franchise office imposes as far as creative
control. That said, franchises have a stronger
Buying a business that is already in support network and generally have a better
operation and profitable is another shortcut success rate compared with the vast majority
There are some obvious benefits, like less of start-ups
time spent in the planning and creation
stage, infrastructure such as supplies already Part 2
in place, and existing customers who
recognize the brand. Advantages and Disadvantages of
Alternatives
The major downside is that the cost of
acquiring a profitable business is usually Advantages Of Investing in Other People's
much higher than the start-up costs of The Startups
same type of business. This cost reflects the
efforts of the person who started it, plus an 1. Agility
additional premium charged for the business
having proven its viability. Startups are smaller and less structured.
They are also innovative and keep
If you choose this route, it is important to improving their business models, processes
performs due diligence, such as confirming and portfolio. These allow them to adapt to
all the revenue figures and finding out why disruptive technologies and changes in
ownership is selling a seemingly successful market conditions. Established competitors
Business lace vested interests, a historic path, and a
strong leum culture. This makes them
Buy a Franchise resistant to change.

A business in a box is one way to avoid 2. Efficiency (Lean and Mean)

many of the hassles involved with starting
from scratch. Essentially, a franchise owner Established companies have high
is following a script proven to be successful administrative overheads. Startups offer
in other locations. Benefits of a franchise their services in a more efficient
include a recognized brand, resources to cost-effective and competitive manner. They
draw from, and economies of scale the are likely to be aware of their limitations and
franchise network creates, tend to focus on their core strengths. This
causes them to partner with other small
The drawback to franchise ownership is organizations. Customers often benefit with
primarily the cost of the initial purchase and a superior value proposition.
the royalles, which can be expensive. People
who want a true entrepreneur experience 3. Team Culture
will also have issues with the Imitations the
Employees of large corporations get are more likely to work at the hours, the
attracted by prestige and big salaries. They place and in the manner that suits you
easily lose sight of the company's vision,
mission and values and the success of its 7. Fun
customers. Startup employees form a
close-knil community that shares passion, Last but not least, working with a startup
bellefs, and values. They must work together could be a lot more fun. A startup doesn't
for the good of the company, its customers have to please everyone and may decide to
and the world at large. select clients that are fun to work with.
Spontaneous fun activities after work are a
4. Personalization lot easier to organize in a startup. Your
colleagues could become your best friends
Startups deliver their products and services
with a personal touch. This creates a Disadvantages Of Investing in Other
uniquely personal experience for their People's Startups
customers. Startups also take time to study
and understand their customers' business 1. Risk
requirements. This allows them to build
lasting relationships with specific offerings Most startups fail within their first year of
arid responsive solution operations, so the risk of failure is high.
Working under such high risk can. biur a
5. Versatility startup's strategic vision. So they either fail
to seize market opportunities or
Startup employees multitask and the overestimate their sales projections. High
salesperson could double up as the risk also hinders a startup s ability to attract
relationship manager. This adds continuity experienced and competent statt.
to customer relationships and eriables
startups to respond to emergencies. Most 2 Compensation
startups support learning and have higher
tolerance for mistakes. Both factors enhance It takes blood, sweat, and tears to build a
the versatility of startup employees company, and long working hours are the
norm for startups. The rewards might be low
6. Flexibility since it takes time to generate reverive and
make profits. Some startups give up since
Your organization could have rather unique it's demotivating to work without proper
needs and demands for products and compensation.
services. These might not be met by
established service providers operating in a 3. Market Access
rigid manner. Startups are very flexible and
Many customers prefer a business that they non-core business processas in external
have worked with over a now startup. service providers. But the high associated
Besides it is more expensive to acquire new costs could form a barrier
customers than to retain old ones. Without a
customer base, understanding market needs 7. Stress
also becomes a real struggle. All these
factors combined increase the cost of We did mention that working for a startup is
business development for startups. fun, but it could also become very stressful.
Low compensation many responsibilities
4. Team Composition and long working hours are more or less
expected, Add legal prosecution, imminent
Some startups are born out of desperation business failure, and screaming customers
since the founder could not find or hold on and work becomes unbearable.
to a job. Such founders flen struggle to huid
a team that the business needs to succeed. A Advantages of buying a business
successful startup requires
founders/co-directors with complementary Buying a business is generally considered
personalities and competencies. Even then less risky than starting your own business,
disagreements can creep in when the going especially if you can buy a well-managed,
gets tough. profitable business for the right price.
Consider these advantages:
5. Resources
The difficult start-up work has already been
Growth hacking, cinut computing, and done. The business should have plans and
venture capitalism allow startups to gain procedures in place
market entry. Most startups operate on a
shoestring budget, against competitors that Buying an established business means
are well-resumed. It gives the competitors immediate cash flow.
an edge in product development, sales, and
marketing. They use that edge to push The business will have a financial history,
startups out of the market when they become which gives you an idea of what to expect
a threat. and can make it easier to secure leans and
attract investors You will acquire existing
6. Processes customers, contacts, goodwill suppliers staff
plant, equipment and stock
Startups are flat organizations that lack
defined business processes and openational A market for your product or service is
procedures. This exposes them so poor already established.
customer service, legal kabilly, and financial
losses. Startups might this opt to outsource
Existing employees and managers will have Franchises offer the independence of small
experience they can share business ownership supported by the
benefits of a big business network.

Disadvantages of buying a business You don't necessanly need business

experience to run a franchise. Franchisors
Keep in mind that not every business on the usually provide the training you need to
market is a good prospect. Marry owners operate their business model.
will be selling unprofitable or
under-performing businesses. While this can Franchises have a higher rate of success than
be a chance to buy and develop a cheap start-up businesses.
business, it can also be a risky investment.
Consider these disadvantages. You may find it easier to secure finance for a
franchise it may cost less to buy a franchise
The business might need maior than start your own business of the same
improvements to old plant and equipment type

You often need to invest a large amount up Franchises often have an established
front, and will also have to budget for reputation and image, proven management
professional fees for solicitors and and work practices, access to national
accountants, advertising and ongoing support.

The business may be poorly located or badly Disadvantages of buying a franchise.

managed, with low staff morale
Buying a franchise means entering into a
External factors, such as increasing formal agreement with your franchisor.
competition or a declining industry, can Franchise agreements dictate how you run
affect future growth. the business, so there may be little room for
creativity. There are usually restrictions on
Under-performing businesses can require a where you operate, the products you sell and
lot of investment to make them profitable. the suppliers you use.

The seller's personality and their established Bad performances by other franchisees may
relationships may be a major factor for the affect your franchise's reputation.
success of the business
Buying a franchise means ongoing sharing
Advantages of buying a franchise of profit 1 with the franchisor Franchisors
do not have to renew an agreement at the
end of the franchise term
Franchising is seen by many as a simple way
to go into business for the first time. But Importance of Financial Plan
franchising is no guarantee of success and
the same principles of good Financial planning is a step-by-step
management-such as informed approach to meet one's life goals. A
decision-making, hard work, time financial plan acts as a guide as you go
management, having enough money and through life's journey. Essentially, it helps
serving your customers well-still apply. you be in control of your income, expenses
and Investments such that you can manage
Be cautious when buying into a franchise if your money and achieve your goals.
you have to develop the market and the
brand in your designated area. Make sure Objectives of Financial Statements
your investment generates healthy returns
and a capital gain when you sell. To meet information needs of service
recipients and resource providers for
FINALS acocuntability and decision making

Business Development Plan Users need information about:

Review your Strategic plan. -The performance of the entity eg, meeting
service delivery and other operating and
Financial planning should start with your financial objectives
company's strategic plan. You should think
about what you want to accomplish at the -Managing ressources it is responsible for
start of a new year and ask yourself a Series
of questions -Complying with ingislative & other
authority
Do I need to expand?
-Liquidity and salvancy
Do I need more equipment?
-Sustainability of service delivery and other
Do I need to hire more staff? Da i need other operations
new resources
-Capacity to adapt to changing
How will my plan affect my cash flow? Will circumstances
I need financing? If yes, how much?
Required Financial Statements
Then, determine the financial Impact in the
next 12 months, including spending on A complete set of financial statements
major projects. includes:
 market size and potential growth? Does the
Statement of financial position plan identify the key characteristics of the
market relevant to the competitive
Stalement of financial performance positioning and how this opportunity will be
exploited? Does the plan effectively analyze
Statement of changes in net assets/equity the nature of competition within the market?
Does the plan identify the target customer
Cash flow statement. group?

Comparison of budget and actual amounts 4. Marketing/Sales

Notes Does the plan indicate how the

product/service will be distributed and the
Comparative information in respect of the product/services revenue and pricing model?
preceding period Does the plan include an appropriate
promotional strategy that is realistic when
Critical Elements of the Business Plan: compared to the assigned marketing budget?

1. Executive Summary 5. Team & Operations

• is the summary an effective synopsis of the • Does the plan effectively highlight the
overall business plan? Does the summary expertise of the individual(s) within the
pique the interest of the reader? Does the business and identify any human resource
summary provide an engaging vision of the 'gaps' and appropriate measures to resolve
company? these issues? Does the plan include a plan
for the production/delivery of the product or
2. Product or Service to be offered service? Does the plan address the issues of
operational complexity, resource
Does the plan effectively communicate the requirements and operational risks
features and benefits of the product or appropriately?
service brought to the market? Does the plan
effectively communicate the USP of the 6. Financials & Risks and Sensitivities
product/service and how this competitive
advantage will be maintained? • Does the plan explain key assumptions and
features of the financial model? Does the
3. Market Opportunity plan. include detailed income and
expenditure and cash flow forecasts! Does
Does the plan effectively describe the the plan detail the level of working capital
market in which the business intends to required to run the business? Does the plan
compete?. Does the plan identify the current
identify the nature of potential returns? Are
the financial forecasts realistic!

7. Clarity

• Is the plan written in a well-structured,

clear and concise manner? Is the plan free
from grammatical and spelling mistakes?

8. Likelihood of obtaining
SMART:feasibility funding Is the SMART
Section completed? Is the proposal
technically innovative?

9. Likelihood of company formation within

12 months

•How likely is it that a company will be

formed within the next 12 months? - What
are key factors that suggest a company can
be formed in 12 months? What are the
barriers that will prevent company formation
within 12 months?