Entrepreneurial Analysis

Prepared by: Engr. Alexis John M. Rubio

 Factory Site Selection Criterion
 Proper selection of site for factory location is often critical to
success of the venture. There are a host of factors that are
required to be considered before taking a final decision on
location. The following are the most important factors to
consider:
1. Proximity to Raw Material Source/Markets
2. Infrastructure
3. Government Policy
4. Availability of Skilled Man Power
5. Local laws and Regulations
6. Ecological & Environment Factors
7. Competition
Factory Site Selection Criterion
 Proximity to Raw Material Source/Markets – This decision will
depend on nature of product. In case of high cost products
where transport cost is a fraction of total cost, this factor loses
most of its relevance. But for products like cement, where
freight cost is a major component in the total cost, this factor
assumes mighty significance since freight cost is often directly
proportional to the distance. Low weight/volume product,
proximity. At times trade off is required between raw material
source and markets. Unless the product is highly perishable,
preference is given to proximity to raw material source, since
volume of raw materials is mostly more than finished product.
Factory Site Selection Criterion
 Infrastructure – Good infrastructure brings down the capital as well
as operating cost and therefore play a vital role in the location
selection for an industry. The facilities includes transport and
communication, power, water, banking etc.
 Government Policy – Many state governments offer various
incentives in the form of tax shelters/deferment, concessional land
and amenities, in order to promote industrial development of state or a
particularly backward region of the state.
Factory Site Selection Criterion
 Availability of Skilled Man Power – Certain kind of artisans
are in abundance in certain geographical areas only. They are
hard to find elsewhere.
 Local laws and Regulations – Local laws might prohibit
setting up of certain kind of industries in particular areas for
various reasons.
 Ecological & Environment Factors
 Competition – In case of some enterprises, like retail stores,
where the revenue of a particular site depends on the degree
of competition from the other competitors in the locality, it
plays a crucial role in selecting the location of the stores.
The Manager and The Entrepreneur:
A Comparison
 An Entrepreneur and a Manager make an interest
comparison. To succeed as an entrepreneur, one is
required to possess great managerial skills and more.
Therefore, there are a lot of commonalities between the
two in terms of planning, organizing, directing and
controlling abilities which are essential qualities of a
manager. However, there are great deal of differences as
well. The differences primarily lie in approach to various
issues.
The Manager and The Entrepreneur:
A Comparison
Business Dimensions Managers Entrepreneurs
Promotion and other Independence, opportunity
traditional corporate to create and financial
Primary Motives
rewards, such as office stability.
staff and power.
Short term - meeting quotas Survival and achieving 5 to
Time Orientation and budgets, weekly, 10 year growth of business
monthly and quarterly
Delegates and supervises Direct involvement
Functional Style more than direct
involvement
Low – Careful approach to Moderate risk taker. Follows
decision making dreams with decisions.
Risk Appetite
Deals with
mistakes and failures
The Manager and The Entrepreneur:
A Comparison
Business Dimensions Managers Entrepreneurs
Conservative, hierarchical, No concern about status
Attitude
status conscious attitude symbol
Takes the safest path. Tries Independent in decision
to push decision making to making. Takes bold
others to be able to avoid decisions with calculated
Decision Making Style
blame in case of failure. risk in favor of higher profit
Follows the wishes of higher potential.
management
The Gender of an Entrepreneur: A
Comparison
 While essential qualities remain the same irrespective of
the gender of entrepreneur, female entrepreneurs exhibit
certain subtle distinctions due to their psychological make
up as well as social and family obligations.
Factors Male Female
Desire to control own Need for achievement.
Motivation destiny. Desire for better Support family income.
life style.
Disagreement with bosses or Frustration at not being
dissatisfaction with working allowed to grow in previous
Impetus
conditions, lay off, situation
unemployment.
The Gender of an Entrepreneur: A
Comparison
Factors Male Female
Personal asset and savings, bank Personal assets & savings,
Sources of funds financing, investors, loan from personal loans
friends & family
Experience in the line of work as Middle management or
recognized specialist or one who administrative level experience
has gained a high level of in the field
Occupational Background
achievement in the field,
competent in a variety of
business function.
High level of self confidence, Medium level of self
low in flexibility and tolerance. confidence, More flexible and
Better at dealing with economic tolerant. Low level of comfort
Personality Characteristics
environment but less adept at in dealing with economic
dealing with social environment environment but adept at
handling social environment.
The Gender of an Entrepreneur: A
Comparison
Factors Male Female
Age when starting venture - 25 Age when starting venture - 35
to 35. Degree in business or to 45. Degree in liberal arts.
Background
technical field, usually
Engineering
Professionals like lawyers, Spouse is first, close friends
accountants being first, second and followed by others.
Support Groups thereafter spouse and followed Support of women professional
by friends and others. Little groups and trade associations
reliance on trade associations actively sought.
Manufacturing, construction, Service related – educational
Nature of Venture high technology service, consulting or public
relations
Size of Venture Medium to large Generally small to medium
Assignment

 What are prominent organizations

promoting entrepreneurship in
Philippines? Give a brief account of
activities of each organization.