ENTREPRENEURSHIP

CHAPTER 1

Innopreneurship:
Entrepreneurship +
Innovation
• Who is an Entrepreneur?
 Components of the Entrepreneur
• Owner- Invest resources- E.g SM, Jollibee
• Brings idea to life- Idea, comes from the
entrepreneur, because , you are the first person
afraid to fail the business.
• Setting directions- Once you set the direction,
first step must be YOU.
• Making things happen- You make a plan- You have
to have the result. Have to achieve the goal
• Adding value- Improve.
•Who is an Innovator?
• Introduce new product,
services, business model,
process.
Innovator
VS.
Inventor
Relevance of Studying
Entrepreneurship and
Innovation
Why be an Entrepreneur?
• It is a powerful choice
• Personal Freedom
Business Plan + Personal Plan
A firm needs to have a business plan
That fits in 1 direction and focus
Motivation starting a business
Wealth Conversion Principle

Cash

Receivables Inventories
 Potato Corner
Started in 1992- 36,000
4 Founding partners
Jorge Wieneke- flavored french fries
Danny Bermejo- full time manager of branches
 Requisites to Prosperity
Speed

Receivables Cash

Spread Squad
Inventories
 Squad
• Business Partner
• Think of what resources or asset is lacking in
your current set that is needed to complete
the enterprise.
• How can that person add a value
 Spread
• Need to sure that the product sold, and price
is higher than the cost
• Think how proposition can be relevant to
solve the pain points.
 Speed
• Create a system to manage receivables, to
collect.
• Profit is important, but the real thing is CASH.
Receivables could be a bad debts
Key Factors of Successful
Entrepreneurship

KFC Commitment

Coordination

Competency
 The 4-gate Model of Prosperity

HOUSE OF
PROSPERITY
Self
Leadership
Execution
Marketing
Preparation
 Gate 1:Preparation
• Money- components of cycle of wealth conversion
cycle.
– CAR MAGIC
– Butch Salvador
– He had 10Php left.
– Enough for photocopy of 10 leaflets to use for leaflets.
– He used parking lot on SM for prospecting and left leaflets
to the windshield of 10 cars with dents.
– Repair in the comfort of the owners house.
– One customer came from the 10 leaflets
– One customer saw repairing car dents outside the car.
– Car Magic was born.
• Model- Big picture Plan- Business Model
– Waters Philippines ,water purifier
– 1980’s they sold retail stores in the appliance
store.
– Waters Phil. Is premium price with premium
features
– It required more than to explain to customers the
product value through its features and benefits
– Something that cannot be done at the retail level.
– So they shift to direct selling
– Sales and profit is much higher than before.
• Mentors- Experience advisers
• Feasibility
• Understand the customer decision journey
• Obstacles to be encountered
 Gate 2: Marketing
• Mindset- belief to have USP –E.g Fresh Baker
• Market- channel where the target market can
find what is being offered. –
-E.g AHEAD TUTORIAL- Target marker-
Smart more than not smart.
• Message- Brand positioning message
E.g CDO foodsphere launch- San Marino
• Communicating rich taste of corned beef with
health benefits of tuna.
 Gate 3: Execution
• Machinery- Org structure that can deliver value
planned.
– E.g- Center for Agricultural Rural Development ( CARD)-
Aris Alip
– Started 1986- lending money to the poor
– 3 years later he had to stop lending to men
– Much better collecting rate from woman
– Because lending money to woman translate to better
future to the family
-But not for men who tend to show off and have vices.
-Small loans- 5,000- approved by account officers
50,000 below-approved by unit managers
• Method- Systems ad processes that allow the
entrepreneur information and control. E.g
CASH FLOW, REPEAT PURCHASE RATE, NET
PROFIT, SALES RATE, EXPENSE RATE
-Dragon Den and Shark Tank
- TV shows, reveals the investors respect
entrepreneurs who mastered Basic Financial
Informations.
• Management skills- ability to carry out the
plan through people, rewards and leadership
– JG summit- holing conglomerate of John
Gokongwei’s group of companies
 Gate 4: Self Leadership
– In order to stand up each time failure.
• Moving forward- courage to continue the
business despite obstacles.
– E.g Fly ace Corporation
– Rice Traders 1972
– Migrated to import products like pringles, del monte
and hersheys due to control price of products
– Eventually this brands set up their own operations and
they lost their distributors
– Making them launched their own brands such as Jolly
, Dona Elena, Good Life and Jolly Cow
• Mission-Purpose of the reason why the
business exists beyond making profit.
– University of Mindanao
– Hundreds of scholarships given annually to
persons with disability, to indigenous peoples and
the marginalized
– while ensuring the school’s tuition remains low
– In order to be the most affordable private Univ in
DAVAO
 Mastery- building capabilities of the business.

• Knowing the self, environment as well as the

operations.
• Mansmith and Fielders Inc.
 Entrepreneur needs four different
types of commitment
• Money- to maximize return on investment.
• Mindset- to have an innovation mindset
• Machinery- to create an effective organization.
• Moving forward- to keep literating toward
objectives and goals.
 Entrepreneur needs four different
tasks of coordination
• Model- business model
• Market- penetration of the target market
• Methods- process needed to routinize
operations.
• Mission- establishment and fulfillment of a
company’s mission
 Entrepreneur needs 4 groups of
competencies
1. Mentor-
2. Message
3. Management skills
4. Mastery
 4 Cluster Capacity Requirement
1. IQ Intelligence Quotient- preparation,
capacity to think and reason
2. CQ- Creativity Quotient- marketing or the
capacity to innovate
3. EQ- Emotional Quotient- For execution,
capacity to sense and empathize
4. AQ Adversity Quotient- for self leadership-
capacity to recover and make progress.
 Adversity Quotient
• Is needed when problems and obstacles are
experience because of the nature of
entrepreneurship.
• Just think of a situation where the
entrepreneur encounters a discrepancy in
his/her business resulting to low sales,
oversupply, low collection , high debts, or
worst, stoppage of supply of operation.
 Jack Ma-
• Founder of Alibaba shared his adversity story when he
was young.
• He failed a Key Primary School test Twice
• Middle of school-failed 3 times
• Applied to study at harvard and rejected 10 times
• He applied for a job and failed 30 times
• Or the time 25 people applied in KFC, and they
accepted 24 except him.
• 5 people applied for a police job, and they accepted 4
except him.
• BUT HE PERSISTED, NOT GIVING UP ON HIMSELF
 7 Competencies of Entrepreneurs
1. Risk-appetite- sees rewards for taking on
opportunities that have potentials positive or
negative consequences.
Am I not afraid to fail?
Am I comfortable with ambiguity and
uncertainty?
Do I have the courage to try new approaches or
things or challenge the status quo?
 Hustle Cafe
-Is a specialty coffee social enterprise where part of the proceeds goes
to the training of out of school youth to be baristas
-They have been getting a lot of attention on social media because of
their instagrammable al fresco area.
-They decided to emphasize this aspect by having large colorful murals
painted on the different walls
-And mixed with many kinds of plants for a garden vibe, which became
an oasis in the middle of Cubao.
-Even their food and fine the plate.
The risk?
The café is built inside a shipping container located along a side street
of cubao.
And yet an area that does not have cafes ofering quality specialty
coffee.
 2. Sense Making
• Scanning the environment to detect and interpret
what is happening today
• in order to connect and take actions on potential
future outcomes.
• Do I know who to tap and how to connect the
dots in finding opportunities and defining issues
and threats?
• Do I have critical skills to generate alternatives
• Do I have numbers proficiency and understanding
to create value for all stakeholders?
 Solar Philippines
• Lean Leviste- decided to tap the commercial
projects ahead of the residential projects