Braga, Kiara Lei Karon, Amirah April 10, 2019

Helicame, Angel Joy Painagan, Merr Fe Wealth Creation

Chapter Summary

The following 5 concepts are explicated based on the first chapter:

Entrepreneurship, as a process of innovating and launching a new

business, is basically about building a life in your own works and ways. It
does not follow a particular rule, no bosses to attend to, and it has no
constraining schedules. Furthermore, it requires great ideas and strategic
skills since generally, entrepreneurship is an ongoing execution of ideas of
the so-called entrepreneur who runs and sets up the business.
Entrepreneurship is not limited to a particular social background, social
status, gender, country, or education. The experience of Grameen Bank, in
offering traditional bank loans to unfortunate villagers who want to start their
own business, proves that everyone can become entrepreneurs if given the
opportunity to become one. However, not all entrepreneurs would have the
same destiny and result in running his or her business. In fact, a lot of
misconceptions can be drawn out in an entrepreneurship discussion. An
example of this is the fallacy of entrepreneurship being reserved for
startups. Unlike a startup founder, who is in an early-stage venture and is
more focused on top-end revenues, the goal of an entrepreneur is to
become unique and different. Therefore, entrepreneurs could be
everywhere from corporations to franchises and alike.

Franchise is a type of license purchased by the entrepreneur known as

the franchisee from a business already established known as the franchisor
that allows the entrepreneur to transact under the name of the business.
Franchise benefits the entrepreneur as it can be a head start for them to
have their own business without spending too much for the marketing and
Braga, Kiara Lei Karon, Amirah April 10, 2019
Helicame, Angel Joy Painagan, Merr Fe Wealth Creation

branding. A franchise is also called as a turnkey operation in which the

franchisee turns the key and handles a business. In addition, the franchisee
pays the franchisor to buy the franchise through lump sum. He also pays
royalties every month which are a share of the proceeds based on sales
revenue. The pros of owning a franchise is the entreprenuers already have
a ready-made business system operation right away. The franchisor also
offers formal trainings after signing the contract.On the contrary, in
franchise, the franchisee needs to depend on the franchisor in which he
needs to pay for royalties every month and contribute to the marketing
expenses of the franchisor. Furthermore, the franchisee needs to adhere to
the rules set by the franchisor and other franchisee are considered as
competitors.

Social Entrepreneurship is a process of sourcing innovative solutions

to social and environmental problems. This has become a global
movements having thousands of initiatives being launched every year for
the improvement of social problems areas like water shortages, poverty and
global warming. Benefit corporation or B-Corp, a subcategory of social
entrepreneurship, is a form of organization by nonprofit B Lab that ensures
that strict standards of social and environmental performance,
accountability and transparency are met. To be certified as a B-corp, a
certain organization is rated based on how its employees are treated, its
impact on environment and how the community benefits in which it
operates. This B-corp certification ensures that the for-profit company fulfills
its social mission, and it protects the company from lawsuits from
stakeholders that may claim that the company is allotting more time and
resources on social issues rather than maximizing profit.
Braga, Kiara Lei Karon, Amirah April 10, 2019
Helicame, Angel Joy Painagan, Merr Fe Wealth Creation

A family enterprise is a type of business wherein the owners are

related by blood, typically involving more than one generation. The current
managing generation of the enterprise caters to the trends of the status quo,
therefore creating an edge and opportunity to push the business to fresh
ideas that consequently grows into creative and innovative products.
Moreover, they are generally considered to be more stable, and in turn,
sparks commitment and loyalty from employees and customers, too. What
makes it survive in the arena of businesses lies in the perpetual growth of
their lineage. The latest descendants do not just conform to the established
standards way back from their ancestor’s time. They are tasked to evolve
according to the signs of the times, therefore, reforming the business to
adapt to the constant change of business cycles. However, there is a
prominent problem in this transitioning process, for each family holds a
legacy or long-term view, and may tend to stick to their old concept rather
than remodeling their strategy and structure to thrive. As the business is
passed onto the next line of successors, the percentage of failure increases.
The term “serial entrepreneur” isn’t very common in business circles.
They are also known as “habitual entrepreneurs” who launch several
businesses either concurrently or in succession. A serial entrepreneur is an
entrepreneur who continuously comes up with novel ideas, and puts it into
actuality by starting new businesses. Unlike a typical entrepreneur who
prefers to stick to a single idea, and plan it all throughout thoroughly, a
serial entrepreneur just can’t settle to only one business venture. This type
of entrepreneurial set up could be advantageous if the person has a lot of
unique ideas that will surely capture the interest of big masses of target
customers. The down side is when the individual cannot keep up, and
Braga, Kiara Lei Karon, Amirah April 10, 2019
Helicame, Angel Joy Painagan, Merr Fe Wealth Creation

devote his time to businesses that he needs to tend to, while moving
forward to another concept that may or may not succeed in the end.