Lecture for Magsaysay

8/18/2019 Lecture for Magsaysay

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USWAG MAGSAYSAY

Business Administration Department

College of Business Administration


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Entrepreneurship

Introduction

to

Business Administration Department

College of Business Administration


3/24

What is an Entrepreneur?

Entrepreneur: A person ho organizes andmanages an enterprise! especiall" a#usiness! usuall" ith considera#le

initiative and risk $ – Initiative: %eadiness and a#ilit" in

initiating action$

–

Risk: &he ha'ard or chance of loss$

Source: Webster’s College Dictionary (Random House/McGraw

Hill)


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What is an Entrepreneur?

(An entrepreneur is someone hopercei)es an opportunit" and creates

an organi'ation to pursue it$(

Source: The Portable MBA in Entrepreneurship, 2nd Ed.; William D. Bygrave,

Editor. ohn Wiley and !ons Publishers, "##$.


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Who is an Entrepreneur?

In the U$S$! appro*imatel" +, of the adultpopulation is acti)el" in)ol)ed in startinga #usiness at an" gi)en time$

-ne out of e)er" to adults has tried tostart a #usiness at some time in his or

her life$

Source: ntre!reneurs"i! #rd d$% &ambing and 'ue"l rentice Hall g *+


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What Does it &a.e to Be Successful?

(In entrepreneurship! luck ishere preparation and

opportunity meet$/




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(&he idea is not hat is important$ Inentrepreneurship0 ideas are a dime a do'en$

De)eloping the idea! implementing it! and#uilding a successful #usiness are theimportant things$/



What Does It &a.e to Be Successful?


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(Would1#e entrepreneurs ho are una#le toname customers are not read" to start a

#usiness$ &he" ha)e onl" found an ideaand ha)e not "et identified a market need $/




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Someho! someda"2 "ou are going to ha)e to earn3-SI&I4E CAS5 67-W$

You need more than a re)enue model 8#ut "ou doneed that9$ You need a 4A7UE model$


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Mar.et share is great! #ut "oucan:t pa" #ills ith it$

You can do some financiall"stupid things to #uild

mar.et share$


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Where Do You Start?

&hin. a#out W5- is going to ant "our product;ser)ice!

hat the" ill 3AY for it! hat "ou ill


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&he Importance of 4alue Creation

A successful #usiness is

one that delivers value to its customers and

creates value for itsoners$


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4alue is deli)ered to "our customers hen "ou dosomething for them

• Better

• Cheaper

• 6aster

• Cooler

• Different

5oe)er! it is li.el" that none of these ill or.for long! so continuous impro)ement andinno)ation are essential$



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4alue is created for the oners hen>

– You do more ith their mone" than the" could do ith itthemsel)es

– You in)est in producti)e acti)ities that earn rates ofreturn greater than their ris.1adusted costs of capital$

– &he present )alue of future cash flos e*ceeds thestartup costs$



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4alue is created #">

– E*ploiting proprietar" ph"sical resources

–

3ossessing proprietar" .noledge or e*pertise – Creating a ne or impro)ed product! process! or ser)ice

– Sta"ing ahead of the competition through constantimpro)ement and inno)ation



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%e)enue comes from> – Selling or licensing a product

– Selling or licensing a ser)ice

– Creating a transaction pipeline

– &rading products or ser)ices

– Selling ad)ertising

– In)esting

%e)enue Models


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3lanning for Success

Don:t plan a #usiness for toda" @ 3lan it for atleast a "ear from no$

– Moore:s 7a> Computing poer ill roughl" dou#lee)er" months$

– Bandidth ill continue to increase for most usersalmost ad infinitum$

– 3eople ill li)e longer and maintain acti)e lifest"lesfar after retirement$

– Energ" sources and consumption patterns illchange drasticall"$

– &he orld ill continue to #e a )er" dangerous place$


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3lanning for Success

&hin. a#out the ne*t paradigm shift thatill change #usiness and life> – 6ire

– Agriculture

– 5orsepoer – Writing

– Masonr"

– Sailpoer

– Metallurg"

– Waterpoer

– Steam

– 2$$

–


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5o &o


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A 7ifest"le 4enture

• 1"ear re)enue proections under million

• Started #" people ith life1st"lemoti)es 8li)e "our ho##"9

• F, of all startups

• ero interest to )enture capitalists


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6unding Your 4enture

• &he hardest funding to raise is the firstfunding$ You are pro#a#l" on "our on$

• 7ater funding gets progressi)el" easierdepending on the results "ou can sho toin)estors and hat "ou need to fund$

• BA


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Closing &houghts

(I find that theharder I or.!

the more luc. Iseem to ha)e$/Thomas

efferson


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Closing &houghts

(Whether "outhin. "ou can! or

that "ou can:t!"ou are usuall"right$/ !enry

"ord

http://www.netstate.com/states/peop/people/images/mi_hf.jpg


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Closing &houghts

(I ha)e not failed$ Iha)e ust found

F!FFF a"s thaton:t or.$/Thomas Edison
http://www.edisys.com/About/Thomas_Edison/edison.gif

Documents

Lecture for Magsaysay