MY WONDERFULL EXPERIENCE WITH BLOG




Hi everyone! Hope you are enjoying yourselves? As for me, my experience using BLOGGER was very interesting got the opportunity to share and enlighten people around the world on some basic information’s of entrepreneurship. I learned a lot managing information on the World Wide Web mostly from you people. I encourage people to study more on ENTREPRENEURSHIP because you get to know more about the term and will become more creative and innovative.

      Thank God, we have come to the end of this BLOG session for the year 2012, thank you all for viewing and visiting my BLOGGER farewell, remain blessed until we meet again in the year 2013.

     Technology is one of the key to success because it makes work easier. since entrepreneurs need to achieve and are always dealing with people problems, technology can help to reduce the work load for them and also make it faster and easier. Thank you once again. Love you all         

 

The Pathways to New Ventures for Entrepreneurs

Every prospective entrepreneur wants to know the best methods for entering business. In other words, what are the ideal pathways to starting a venture for oneself? In this chapter, we examine the three most common methods: creating a new venture, acquiring an existing venture, or obtaining a franchise. Each pathway has its own particular advantages and dis- advantages. In addition, each method has a variety of issues that need to be understood by the entrepreneur. It is always unwise for an entrepreneur to rush into a decision for a venture without the proper understanding of the particular form of entry. This chapter is devoted to outlining some of the particular issues related to each form.

Franchising

Any arrangement in which the owner of a trademark, trade name, or copyright has licensed others to use it in selling goods or services.

Franchisee

A purchaser of a franchise

Franchisor

The seller of the franchiseHow a Franchise Works
Business franchise systems for goods and services generally work the same way. The franchi- see, an independent businessperson, contracts for a complete business package. This usually requires the individual to do one or more of the following:
1. Make a financial investment in the operation 2. Obtain and maintain a standardized inventory and/or equipment package usually pur-
chased from the franchisor 3. Maintain a specified quality of performance 4. Follow a franchise fee as well as a percentage of the gross revenues 5. Engage in a continuing business relationship
In turn, the franchisor provides the following types of benefits and assistance:
1. The company name. For example, if someone bought a Burger King franchise, this would provide the business with drawing power. A well-known name, such as Burger King, ensures higher sales than an unknown name, such as Ralph’s Big Burgers.
2. Identifying symbols, logos, designs, and facilities. For example, all McDonald’s units have the same identifying golden arches on the premises. Likewise, the facilities are similar inside.
3. Professional management training for each independent unit’s staff.
4. Sale of specific merchandise necessary for the unit’s operation at wholesale prices. Usually provided is all of the equipment to run the operation and the food or materi- als needed for the final product.
5. Financial assistance, if needed, to help the unit in any way possible.
 6. Continuing aid and guidance to ensure that everything is done in accordance.

Advantages of Franchising
A number of advantages are associated with franchising. In the following section, we describe four of the most well-known advantages: training and guidance, brand-name appeal, a proven track record, and financial assistance.
TRAINING AND GUIDANCE
Perhaps the greatest advantage of buying a franchise, as compared to starting a new business or buying an existing one, is that the franchisor usually will provide both training and guid- ance to the franchisee. As a result, the likelihood of success is much greater for national
BRAND-NAME APPEAL

An individual who buys a well-known national franchise, especially a big-name one, has a good chance to succeed. The franchisor’s name is a drawing card for the establishment. People are often more aware of the product or service offered by a national franchise and prefer it to those offered by lesser-known outlets.

A PROVEN TRACK RECORD

Another benefit of buying a franchise is that the franchisor has already proved that the operation can be successful. Of course, if someone is the first individual to buy a franchise, this is not the case. However, if the organization has been around for five to ten years and has 50 or more units, it should not be difficult to see how successful the operations have been. If all of the units are still in operation and the owners report they are doing well finan- cially, one can be certain the franchisor has proved that the layout and location of the store, the pricing policy, the quality of the goods or service, and the overall management system are successful.

FINANCIAL ASSISTANCE

Another reason a franchise can be a good investment is that the franchisor may be able to help the new owner secure the financial assistance needed to run the operation. In fact, some franchisors have personally helped the franchisee get started by lending money and not requiring any repayment until the operation is running smoothly. In short, buying a franchise is often an ideal way to ensure assistance from the financial community.
advantages of Franchising

The prospective franchisee must weigh the advantages of franchising against the accompany- ing disadvantages. Some of the most important drawbacks are franchise fees, the control exercised by the franchisor, and unfulfilled promises by some franchisors. The following sec- tions examine each of these disadvantages.

Copyright 2009 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.

Franchising: The Hybrid 149

FRANCHISE FEES

In business, no one gets something for nothing. The larger and more successful the franchi- sor, the greater the franchise fee. For a franchise from a national chain, it is not uncommon for a buyer to be faced with a fee of $5,000 to $100,000. Smaller franchisors or those who have not had great success charge less. Nevertheless, entrepreneurs deciding whether or not to take the franchise route into small business should weigh the fee against the return they could get putting the money into another type of business. Also, remember that this fee cov- ers only the benefits discussed in the previous section. The prospective franchisee also must pay to build the unit and stock it, although the franchisor may provide assistance in securing a bank loan. Additionally, a fee is usually tied to gross sales. The franchise buyer typically pays an initial franchise fee, spends his or her own money to build a store, buys the equip- ment and inventory, and then pays a continuing royalty based on sales (usually between 5 and 12 percent). Most franchisors require buyers to have 25 to 50 percent of the initial costs in cash. The rest can be borrowed—in some cases, from the franchising organization itself.10 Table 6.4 presents a list of the costs involved in buying a franchise.

 

Disadvantages of Franchising

The prospective franchisee must weigh the advantages of franchising against the accompany- ing disadvantages. Some of the most important drawbacks are franchise fees, the control exercised by the franchisor, and unfulfilled promises by some franchisors. The following sec- tions examine each of these disadvantages.


FRANCHISE FEES

In business, no one gets something for nothing. The larger and more successful the franchi- sor, the greater the franchise fee. For a franchise from a national chain, it is not uncommon for a buyer to be faced with a fee of $5,000 to $100,000. Smaller franchisors or those who have not had great success charge less. Nevertheless, entrepreneurs deciding whether or not to take the franchise route into small business should weigh the fee against the return they could get putting the money into another type of business. Also, remember that this fee cov- ers only the benefits discussed in the previous section. The prospective franchisee also must pay to build the unit and stock it, although the franchisor may provide assistance in securing a bank loan. Additionally, a fee is usually tied to gross sales. The franchise buyer typically pays an initial franchise fee, spends his or her own money to build a store, buys the equip- ment and inventory, and then pays a continuing royalty based on sales (usually between 5 and 12 percent). Most franchisors require buyers to have 25 to 50 percent of the initial costs in cash. The rest can be borrowed—in some cases, from the franchising organization itself.10 Table 6.4 presents a list of the costs involved in buying a franchise.

FRANCHISOR CONTROL

In a large corporation, the company controls the employee’s activities. If an individual has a personal business, he or she controls his or her own activities.

 EXAMPLES OF FRANCHISE
 
. 7-Eleven Inc.
 2. Subway
3. Dunkin’ Donuts
 4. Pizza Hut
 5. McDonald’s
6. Sonic Drive-In Restaurants
7. KFC Corp.
8. InterContinental Hotels
9. Domino’s Pizza LLC
10. RE/MAX

 RE/MAX
PIZZA HUT
KFC
MC DONALDS
 SUB WAY
DUNKIN DONUTS
7-ELEVEN INC



   

 

     CREATIVITY AND INNOVATION:The Search for New Ideas

Opportunity identification is central to the domain of entrepreneurship. As one researcher stated, “At its core entrepreneurship revolves around the questions of why, when, and how opportunities for the creation of goods and services in the future arise in an economy. Thus, opportunity recognition is the progenitor of both personal and societal wealth.”1 It has been argued that understanding the opportunity identification process is one of the primary chal- lenges within the domain of entrepreneurship research.2 To give a better perspective of this entrepreneurial search, this chapter is devoted to examining the creative pursuit of ideas and the innovation process. These two major topics are keys to understanding opportunity and its development for entrepreneurs.

The first step for any entrepreneur is the identification of a “good idea.” However, the search for good ideas is never easy. Thus, we examine the sources that can be used in this search and how an entrepreneur can work toward the discovery of a good idea. The most important areas to be aware of are within the grasp of our own knowledge. Let us examine some of the key sources of innovative ideas.

Sources of Innovative Ideas

Potential entrepreneurs must always be alert to the opportunities that lie in the external and internal environments in which they live. This alertness will allow an entrepreneur to create an idea from what others simply cannot recognize. The following are some of the most effec- tive sources of entrepreneurial opportunities.

TRENDS

Trends signal shifts in the current paradigm (or thinking) of the major population. Observing trends closely will grant an entrepreneur the ability to recognize a potential opportunity. Trends need to be observed in society, technology, economy, and government. Following are some examples of such trends:

Societal Trends: aging demographics, health and fitness growth, senior living Technology Trends: mobile (cell phone) technology, e-commerce, Internet advances

Economic Trends: higher disposable income, dual wage-earner families, performance pressures

Government Trends: increased regulations, petroleum prices, terrorism UNEXPECTED OCCURRENCES

These are successes or failures that, because they were unanticipated or unplanned, often prove to be a major innovative surprise to everyone. The infamous 9/11 terrorist attack on the United States is a good example of an unexpected occurrence; it produced an influx of innovative solutions to the newly created challenge of homeland security.

INCONGRUITIES

Incongruities occur when a gap or difference exists between expectations and reality. For example, when Fred Smith proposed overnight mail delivery, he was told, “If it were that profitable, the U.S. Post Office would be doing it.” It turned out Smith was right. An incon- gruity existed between what Smith felt was needed and the way business was currently conducted; thus, he created FedEx.

PROCESS NEEDS

These occur when an answer to a particular need is required. Venture capitalists often refer to these needs as “pain” that exists in the marketplace—the entrepreneur must recognize an innovative solution, or “painkiller.” Examples include the creation of new medical devices, health foods, pharmaceuticals, and time-saving innovations.

INDUSTRY AND MARKET CHANGES

Continual shifts in the marketplace are caused by developments such as consumer attitudes, advancements in technology, and industry growth. Industries and markets always undergo changes in structure, design, or definition. An example can be found in the health care industry—hospital care has undergone radical changes, and home health care and preventive medicine have replaced hospitalization and surgery as primary focus areas. The entrepreneur needs to be aware of and seize these emerging opportunities.

DEMOGRAPHIC CHANGES

These arise from trend changes in population, age, education, occupations, geographic loca- tions, and similar factors. Demographic shifts are important and often provide new entre- preneurial opportunities. For example, as the average population age in Florida and Arizona has increased (due largely to the influx of retirees), land development, recreational, and health care industries all have profited.

PERCEPTUAL CHANGES

These are changes that occur in people’s interpretation of facts and concepts. Perceptual changes are intangible but meaningful. Perception can cause major shifts in ideas to take place. The current fitness craze, caused by the perceived need to be healthy and physically fit, has created a demand for both health foods and health facilities throughout the country. Another example is people’s desire to better use their personal time. As a result, the travel industry has capitalized on consumers’ current need to “see the world” while they are young and healthy, and time-share condominiums and travel clubs have increased.

KNOWLEDGE-BASED CONCEPTS

These are the basis for the creation or development of something brand new. Inventions are knowledge based; they are the product of new thinking, new methods, and new knowledge. Such innovations often require the longest time period between initiation and market imple- mentation because of the need for testing and modification. For example, today’s cell phone technology has advanced to include not just phone service but cameras, Internet access, and music. This has revolutionized the way we use different technologies today. These concepts were not thought possible just five years ago.

SOURCES AND EXAMPLE:

• Unexpected occurrences example:Apple computer.

• Incongruities Process needs example: over night packcage delivery.

• Industry and market changes: sugar free product, cofee.

•  Demographic changes: retiement communities for older people.

•  Perceptual changes: exercise and growing concern fitness.

•  Knowledge-based concepts: mobile cell phone, tecnology, robotic.

DEFINATION OF CREATIVITY:  Is the generation of ideas that result in the improved efficiency oe effectiveness of a system.
DEFINATION OF INNOVATION: Is the process by which entrepreneurs convert oppptunities into merketable ideas.






THE INNOVATION PROCESS.

A-Invention

B-Extension

C-Duplication

D-Synthesis

Totally new product, service, or process

New use or different application of an already existing product, service, or process

Creative replication of an existing concept

Combination of existing concepts and factors into a new formulation or use

Examples:

Wright brothers—airplane Thomas Edison—light bulb Alexander Graham Bell—telephone

Ray Kroc—McDonald’s Mark Zuckerberg, Facebook Barry Sternlicht, Starwood Hotels & Resorts

Wal-Mart—department stores Gateway—personal computers Pizza Hut—pizza parlor

Fred Smith—FedEx Howard Schultz, Starbucks.



{END OF CHAPTER 5}

SOCAIL ENTRPRENEURSHIP is a new form of entrepreneurship that exhibits characteristics of nonprofits, governments, and businesses. It applies traditional private-sector entrepreneur- ship’s focus on innovation, risk taking, and large-scale transformation to social problem solving. The social entrepreneurship process begins with a perceived social opportunity that is translated into an enterprise concept; resources are then ascertained and acquired to exe- cute the enterprise’s goals. This new movement has garnered attention in a number of ways in recent years.
                          

 social entrepreneur is an entrepreneur who works to increase social capital often by founding humanitarian organizations.
    let us see some great social entrepreneurs and were they are located, and what they found for their own benefit and  society.

Dr Willie Smits (Borneo, Indonesia) - Founder of the Borneo Orangutan Survival Foundation, Founder and Chairperson of the Masarang Foundation

• Thinlas Chorol (India) - Founder of the Ladadakhi Women's Travel Company, which despite social norms work to bring women into, the otherwise male-dominated Ladakhi tourism industry.

• Nand Kishore Chaudhary (India) - Founder of Jaipur rugs, which promotes rural development through capacity building of rural people in carpet weaving.

• Harish Hande (India) - Founder of Selco India, a solar electric light company in 1995, which over the years has lit up over 120,000 households, to emerge as India's leading solar technology firm. Magsaysay Award 2011.

• Yashveer Singh (India) – Founder of National Social Entrepreneurship Forum, supporting youth-driven social entrepreneurship.

Hello friend, mid term exam was graded. student  saw thier grade and it  was good. We hope we will try more better in finall exams.
thank you.

Definition of 'Intrapreneurship' Acting like an entrepreneur within a larger organization. The term is derived from a combination of "intra" or internal, and "entrepreneurship." Intraprenuers are usually highly self-motivated, proactive and action-oriented people who are comfortable with taking the initiative, even within the boundaries of an organization, in pursuit of an innovative product or service.

                                EXAMPLE OF INTRAPRENURSHIPMany companies are famous for setting up internal organizations whose purpose is to promote innovation within their ranks. One of the most well-known is the "Skunk Works" group at Lockheed Martin. The group was originally named after a reference in a cartoon, and was first brought together in 1943 to build the P-80 fighter jet. Because the project was to eventually become a part of the war effort, the project was internally protected and secretive. Kelly Johnson, later famous for Kelly's 14 rules of intrapreneurship, was the director of this group.
Another example could be 3M, who encourage many projects within the company. They give certain freedom to employees to create their own projects, and they even give them funds to use for these projects. (In the days of its founders, HP used to have similar policies and just such an innovation-friendly atmosphere and intrapreneurial reputation.) Besides 3M, Intel also has a tradition of implementing intrapreneurship. Google is also known to be intrapreneur friendly, allowing their employees to spend up to 20% of their time to pursue projects of their choice.

                                                                     

Hello friends of entrepreneur be awere of exams, we are going to start our midterm examination by next coming month, so my advise to every one is that pls we should read hard so that we will pass with plyaing colours or with A gerade.
                                                                  THANK YOU.