ENTREP

Preparation Toward an Entrepreneurial Journey (Lesson2)

Introduction

This chapter provides you with an overview of entrepreneurship and the nuances of entrepreneurship. The learning of
various challenges associated with becoming an entrepreneur and embarking on an entrepreneurial activity are
explored, as an overview of how entrepreneurship can be done from idea creation to iteration.

Converting Ideas to Reality

As a stimulus of economic growth, entrepreneurship is a profitable way of converting ideas into reality. It is also about
looking at potential business ideas by keenly and insightfully observing current market conditions and seizing
opportunities as it is reflected.

It may also be possible to get ideas from businesses that have folded up and learn from their mistakes. The
cause of their failures may lead to new business ideas or a business turnaround. Profitable businesses can be studied as
well to derive potential entrepreneurial direction. Ideas that need realization, or responses to existing gaps in the areas
of capitalization, competition, technology, man-made capital, land area or seasonality of demand are also sources of
business start-up.

Creativity in Entrepreneurship

Creativity is not all about coming up with ideas as much as having the ability to adapt to changing circumstances
and conditions of the environment. Every enterprise is bound to evolve for reasons that are oftentimes beyond the
entrepreneurs' control. The reasons behind the need to evolve may be as obvious as changes in technology and systems
to a more volatile global trend or shift in consumer tastes and preferences.

Brands may no longer communicate the right message across the market, funding may not be enough for new
product development or sales is no longer growing as much are some of the reasons when the creative juices of an
entrepreneur will come in handy. An enterprise that is not able to adapt to the requirements of the environment will see
an untimely and natural death.

Innovation in Entrepreneurship

According to the Oslo Manual (OECD, 2018), there are five types of innovation.

Organizational innovation refers to changes in organizational strategies that will cause a change in company culture and
general practices.

Process innovation involves change in the way that products or services get produced, created, and delivered to the
final consumers.

Product innovation means introducing new or enhanced products or service features that will induce new product or
service experience and satisfaction, and not necessarily involving an increase in sales.

Marketing innovation involves having creative ideas and executing the same in the area of price, packaging, design or
promotion.

Eco innovation is synonymous to innovation borne out of a business's direction toward its sustainability agenda.
Passion Follow-through in Entrepreneurship

Entrepreneurial competencies have long since underscored the skills and attitudes that are required of an
entrepreneur. In addition to this is the more recent construct of entrepreneurial passion, a sustaining force to get ideas
into concretization.

Entrepreneurial passion is critical for the success of any venture, whether start-up or in expansion. It is required to
convince people to on-board in an endeavor as it is necessary when one tries to fund an idea or enlarge the consumer
base. Passion can therefore be a deciding factor between the success and the failure for an entrepreneur.

Entrepreneurial passion is a motivational paradigm that is characterized by positive emotional and internal drive. It is
also about the engagement with personally significant work that is prominent to the self-value of the businessperson.

The Three O’s

Opportunity Seeking is the ongoing process of considering, evaluating, and pursuing market-based activities that are
believed to be advantageous for the enterprise. A prior business experience is an advantage when observing for
opportunities, in as much as this process calls for continuous reconsideration and adaptive learning.

Opportunity Screening is the process by which entrepreneurs evaluate innovative product ideas, strategies, and
marketing trends. The capacity of the entrepreneur and the resources available at his disposal can serve as filters when
screening business opportunities.

Opportunity Seizing is all about taking the opportunity in a business activity as it presents itself and while it is stil
available.

Personal Entrepreneurial Competencies

The United Nations Conference on Trade and Development (UNCTAD) has offered 10 entrepreneurial
competencies, summarizing the key qualities necessary to launch an entrepreneurial start-up. They are enumerated and
explained in Table

Entrepreneurial Competencies (UNCTAD)

Interpersonal Competencies

Interpersonal skills are qualities, behaviors, and soft skills that are exhibited when interacting and communicating with
others. For an entrepreneur, interpersonal skills are major factors determining organizational cohesion, a way to
effectively communicate with co-workers in resolving concerns and enhance general workplace mood.

The following are the important interpersonal skills that are worth giving attention:

Verbal communication Nonverbal communication

Listening skills Negotiation

Problem-solving Decision-making

Assertiveness Teamwork

Time Management Empathy

Business Competencies

While the attraction of turning ideas to profitable entrepreneurial activities is strong, it should be noted that
having a strong business competency is a more critical ingredient to success. Facts, trends, and challenges about a
product or service have to be identified and understood in order to navigate the intricacies of entrepreneurial pursuit.

The crests and troughs of business characterized by slumps and rise in demand are matters of importance. An
awareness of the changing consumer tastes and preferences is also a key business competency. Business' planning,
managerial know-how, appropriate business location, prudent and wise fund management and control, a good
knowledge of risk management, and a wide familiarity of government regulations constitute what is valuable and critical
business competency.

Protection of Creative Ideas

Patents - This pertains to the restricted right granted for an invention, including the materials and processes that is
attributed to it, through an approval of a patent application.

Trademarks - This pertains to the identifiable sign, word or symbol that indicates the identity of a product or service, and
is protected through a legal or non-legal process.

Copyright - This pertains to the right over an intellectual property that is protected through a legal process, in case of
copy issues.
Entrep Lesson 3
Tourism and Hospitality Business Environment

Introduction
Entrepreneurship in tourism and hospitality refers to the activities of the major group of stakeholders
of this service sector primarily designed for the effective and profitable interaction of demand for and supply
of tourism and hospitality products, while at the same time ensuring critical and healthy competition resulting
to an improved economy.
Enterprise creation in this sector presupposes the embarking on legal and sustainable activities in support of
growing the travel and accommodation livelihood.

The Tourism and Hospitality Business Environment

The tourism and hospitality industry was seen as a major force that will drive economies to a better
state before the pandemic happened. As a result of the health crisis brought about by COVID-19, a lot of
countries had closed their borders causing significant effects to economies worldwide.
Even countries considered to be the most advanced nations were forced to impose quarantine measures in
their communities. Worldwide lockdowns hindered many nations from engaging in business. Major services
have closed and travel bans are enforced in many areas.
Among the greatly affected industries are the tourism and hospitality industry. The major sector of this
industry is forced to either significantly downgrade their operations or close the business.

Tourism and Hospitality Industry System

The tourism and hospitality industry is expected to be a catalyst in spurring socio-economic growth,
generate employment, and contribute to the conservation of the environment and advance private-public
collaboration. Businesses in this industry are expected to be guided by these factors as they conduct their
business.
The private and public partnership is included because each are expected to play a role in the development of
the industry. The government or the public sector lay the guidelines and requirements for all stakeholders to
observe.
It also initiates development by building the necessary infrastructure, pioneering the business ventures and
encourage customer traffic in different destinations.
The Department of Tourism, in fulfillment of its mandate, will be supported by department offices,
service units, regional offices, and foreign offices. Further, DOT will have attached agencies and government
corporations under its supervision namely, Tourism Promotions Board (TPB), Tourism Infrastructure and
Enterprise Zone Authority (TIEZA), Intramuros Administration, National Parks Development Committee
(NPDC), Nayong Filipino Foundation, Philippine Retirement Authority (PRA), Philippine Commission on Sports
Scuba Diving.
Under the Republic Act 9593 otherwise known as the Tourism Act of 2009 prescribes that every province, city,
or municipality shall have tourism officers responsible for the development and promotion of tourism in their
area.

Tourism and Hospitality Industry Value Chain

The tourism industry is composed of several sectors contributing to the creation of products. A single
tourism product might involve the contribution of several sectors. The following are the major sectors in the
tourism industry:
 Travel intermediaries or the travel trade composed of the travel agency and tour operators.
 The transportation sector provides the means of reaching the target destination or attraction.
 The accommodation sector refer to the facilities and establishment that provide a bed for sleep and a
roof to rest for a visitor.
 The food and beverage service sector is composed of restaurants or any food establishment that
provide nourishment to guests.
 Destination or attraction is the main reason why people travel.
 The government sector is the one that overseas and regulates the industry.

Entrepreneurship and Entrepreneurs in Tourism and Hospitality

The tourism industry is composed of a very diverse collection of establishments that are engaged in
business under the tourism industry. As diverse as the types are, so are the size of businesses.
Businesses in the tourism and hospitality industry may belong to the smallest form of businesses, from micro-
businesses to big and elaborate as international hotel chains or as high as international airlines. There is a lot
of independent micro and small enterprises that support the tourism industry.
Features of Tourism and Hospitality-Related Business
According to the UNWTO definition, a tourism product is a combination of tangible and intangible elements,
such as natural, cultural, and man-made resources, attractions, facilities, services, and activities. A tourism
product is priced and sold through distribution channels and it has a life cycle.
Among many industries, the tourism industry may be the most vocal and active in promoting the welfare of
the people among businesses. UNWTO encourages its member countries to implement the Global Code of
Ethics in Tourism which maximizes the contribution of tourism while minimizing the possible negative impacts.
In a few years after the pandemic, the tourism industry is foreseen to recover and will grow at the same rate
as before the pandemic. This trend is an opportunity since it will create more investments and job
opportunities. The anticipated growth would require investments that will cater to tourists' needs and
qualified tourism and hospitality professionals.
Trends in Travel and Gastro Markets
 Work from Home to Work from Hotel (holiday).
 Rise of the Mobile Wallets.
 Tourists, especially those who are accompanied by kids or senior citizens, will be very conscious of the
hygiene and safety procedures of the different establishments.
 The marketing and promotion efforts of companies will now be centered on how to effectively
communicate to customers that their establishment is safe.
 Search for online information will increase. Vloggers and influencers will become popular more than
ever.
 Private tours and private areas will be more in demand.

Innovations in the Tourism and Hospitality Business Environment

1. Industry 4.0
This concept basically means that the digitalization and traditional process were linked together in a network.
This results in an intelligent value chain and product life cycle.
2. Business Models in the Tourism and Hospitality Industry
An emerging business model that is very popular before the pandemic is the sharing or collaborative economy.
This model has a significant impact on the hospitality and tourism industry. The concept of the sharing
economy is utilizing unused personal resources such as spare bedrooms and car seats more efficiently.
3. Different Types of Innovation
Advance software technology and innovative digital devices are being used to cater to guests' needs that have
predictable transaction needs. The objective is to streamline the administrative procedures being attended to
by managers of the hotel.