Creating an Enterprise

The Entrepreneurial Mind​

Ms. Pry

At the end of the lesson, the students can:

          A. Identify and explain what is an ‘enterprise’ or a ‘start-up’.

          B. Enumerate the sources of product ideas.

          C. Share the implication of ‘innovation’ in a product idea.

          D. Present an innovative product/business idea.

An enterprise is defined as a legal entity possessing the right to conduct business on its own, for example to enter into contracts, own property, incur liabilities and establish bank accounts.

An example of an enterprise business is an international airline. This type of business typically requires a large staff, multiple locations, and a significant investment in technology, equipment, and other resources.

While, the term startup refers to a company in the first stages of operations. Startups are founded by one or more entrepreneurs who want to develop a product or service for which they believe there is demand.

Sources of Product Ideas:

1. While strolling in the park, you saw an old couple who, after a long walk, were looking for a vacant bench to sit down on. Unfortunately, all benches were occupied. Thus, you come upon the idea of producing a cane that could open into a small chair.

CHANCE HAPPENNING

2. Hobbies like tinkering with machines could develop into a machine repair shop business combined with a barber shop so that one can have his hair trimmed while waiting for the repair of his car to be finished.

PERSONAL INTEREST/HOBBY

Sources of Product Ideas:

3. A family of five girls who are conscious of how they look and meticulous about the products they use could start a beauty salon business with their own brand of beauty products.

FRIENDS & RELATIVES

4. The eldest son of a couple operating a hotel or resort, for example, could establish a liquor store in one corner of the hotel lobby.

FAMILY BUSINESS

Sources of Product Ideas:

5. Short courses like tour guiding, international cooking, landscaping and others are offered by entrepreneurial individuals because they realize that there are people who are not financially capable of going to college but need to have a means of earning a living.

EDUCATION/COURSES

6. Working in a bank, you realize that very small business owners or market vendors cannot avail of the lending services of the bank because of the absence of collateral. A lending business can therefore be put up with very easy terms like no collateral and paying daily or weekly as soon as sales is effected.

PRIOR WORK EXPERIENCE

Sources of Product Ideas:

7. With the use of a questionnaire, customers are requested to say what they want about a product or service. Through interviews or informal discussions, middlemen or distributors may give some suggestions about a product or service based on their contact with customers.

RESEARCH & DEVELOPMENT

CREATIVE PROBLEM SOLVING

8. Is a method for obtaining new ideas focusing on certain parameters. Creativity can be unlocked and creative ideas and innovation can be generated by using creative problem solving techniques. The most common creative problem solving technique is brainstorming.

Sources of Product Ideas:

FOCUS GROUP DISCUSSIONS

PROBLEM INVENTORY ANALYSIS

9. A group of individuals provide information in a structured format. A group of individuals meet and they stimulate each other through freewheeling discussions. This is an unstructured process of generating all possible ideas about a problem within a limited timeframe through the spontaneous contributions of participants.

10. The consumers are given a list of problems with a general product category with particular problems. A new product idea may come out from this approach.

11. New product ideas could also came from other means like NEED.

Improvements on Existing Products

Improving an existing product or service renders it new. For example, instead of producing only a hair brush, you put a small mirror on the handle of the hair brush. Thus, the product gives dual function.

Changing the presentation of the product also makes it new. Pharmaceutical products, for instance, may originally be produced in liquid form. But because it can be messy or inconvenient to take outside the home, those products are now made into tablet and capsule forms.

Changing the package is another way of introducing a new product. Products in bottles made of glass could be presented in plastic bottles or perhaps the same bottle but different shape.

Activity:

Directions: Present a product/business concept and describe its nature and from what factor it was anchored. Discuss the product/business’ touch of innovation and its implication towards the target market.

Assignment:

1.  From the video, share to the class your realization in connection to the topic ‘Creating an Enterprise’.

   https://youtu.be/P6KPqHz5cN0

2. Add to the product/business presentation the form of business you have for your concept and briefly provide an overview of the chosen business form.