Routes to Entrepreneurship

Topics: Franchising, Entrepreneurship, Franchise Pages: 9 (977 words) Published: March 10, 2013
Routes to Entrepreneurship

Objectives:

Reasons why people engaged into business:
1.

2.

3. Control - They want to be their own boss and make their own decisions about their future.

4. Earning Potential – They want to be paid for extra effort they give to their work.

Current & Thriving Business

* Retailing

* Sari-sari Store
* Clothing Store
* Drugstore
* Fashion Boutique
* Bookstore

* Food & Recreation

* Fast food Franchise
* Bar/Cocktail Lounge
* Campgrounds
* Motels/Hotels
* Restaurant

* Services

* Transportation and Public Utilities
* Water Transportation
* Air Transportation
* Health Care
* Beauty Care
* Fitness Center
* Telecommunications

Other Commercial Fields

* Industrial
* Wholesaling
* Delivery Services
* Manufacturing
* Distributorship

C. Sources of Entrepreneurial Inspiration

Specific Sources

* Trade Journals
* Trade Associations
* Conventions
* Exhibits and Trade Shows
* Directories
* Old Advertisement
* Trends and Fashion
PIX

* Social Encounters
* Deliberate Searches
* Product Encounters from Travels
* Imports/Exports Bulletin
* Club/Society Meeting Functions
* Current Events/Announcement
* Product Catalogs

Optional Sources

* Personal Interest/Hobbies
* Limitations in Existing Products
* A Wish List
* Technological Advances
* Currently Established Business

D. Routes to Entrepreneurship

1. Family Business
* Includes two or more members of the family with financial control over the enterprise.

Advantages of a Family Business

* Strength of the family relationships.

* Willingness of family members to make sacrifices for the good of the firm.

* Demonstration of high levels of concern for employees (family orientation).

* Ability to plan for the long terms.

* Emphasis on quality and values.

Model of Succession of Family Business

Stage I – Pre-Business
* The children become aware of some facets of the firm and industry. Stage II– Introductory
* The children are exposed to “business jardon”, employees in the business and the business environment. Stage III – Introductory Functional
* Children start to work as part-time employees.

Entry of Succession
Stage IV – Functional
* Potential successor begins as full-time employees whose function includes all non-managerial functions. Stage V – Advance Functional
* Potential successor assumes managerial positions which include all management positions prior to becoming president/general manager of the business enterprise. Transfer of Leadership
Stage VI – Early Succession
* Successor assumes presidency/general manager position: This already includes the period in which successor becomes “de jure” head of the company. Stage VII – Mature Succession
* The successor becomes “de facto” head of the company.

2. Franchising
* A marketing system revolving around a two-party legal agreement whereby the franchisee conducts business according to terms specified by the franchiser.

Advantages of Running a Franchise Business
* Expertise of the franchiser

* Training

* Technical, Management and Research Development

* Proven whole system

* Advertising efforts

* Buying

* Brand name recognition

* An investment business

Disadvantages

* The elements of risk

* Working within the system

* Working within the franchise

* False expectations

* Managing your business

People Involved in Franchising

Franchisee

* An entrepreneur whose power is limited by contractual relationship woth a franchising organization.

Franchiser

* The party in the franchise contract who specifies the methods to be followed and the terms that...
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