Entrepreneurship and Leadership

  Accounting process: double-entry The accounting of financial transactions of a business is a process that seeks, as a final product, to generate information for decision making and financial control that the entrepreneur requires to keep the business going.   Accounting process The accounting process of the financial transactions of a business are divided in the following stages: -         Compilation of written documents that support the financial transaction  -         Transaction log according to time -         Classification of the transaction according to the accounts involved  -         Reporting information in the form of statements Every financial transaction makes an impact in one or more accounts that make part of the financial statements that show the development of the business. Among the main groups of accounts tha...

  Requirements for an entrepreneurship   In the process of describing an entrepreneurship, its necessary to realize in which type of entrepreneurial activity the business is placed. For this, it should be taken as classifying reference to macro-economic activities that tend to be carried out in the country – agriculture, industry and services – each one has its characteristics that the entrepreneur must know about. Each economic activity has its own specifications, so the entrepreneur must be aware of the characteristics that tend to govern, like basic and strategic requirements.    Basic Requirements  -         Design of the productive process according to the economic activity (step by step process) -         Consideration of the resources that the entrepreneurship needs for its operation (list of resources) -         Productive planning adjusted to the ope...

Accounting basic principles  To compare two or more companies that are engaged in the same commercial activity, it has been determined that the accounting processes of the financial accounts of a business are performed in a standard way, that means, that the financial reports show the same analysis criteria. This is helpful for when the entrepreneur needs to present financial information to government entities.  Accounting formats The development of the accounting process of the financial accounts of a business revolves around an accounting principal universally accepted. This is called a double-entry.     Debit: Increases in an account (received money) Credit: Decreases in an account (paid money)   Debit and credit of a financial account When we talk about a financial account, it refers to a place with a specific name where we keep records of financial transactions that can increase or decrease in value. For example, in a restaurant the sales of the day will go...

  Geographical Zone    The geographical delimitation of the entrepreneurship is important to know the economic, political, social and cultural characteristics of the territory where the new business will work. These characteristics will help the entrepreneur to define the general strategy and business marketing.   Geographical Delimitations To have knowledge about the geographical zone where the entrepreneur will establish the new business leads to understanding the characteristics of the business environment. These are external conditions of change, driven by technological, economic, social, natural, institutional and political forces. If these forces are studied well, they will provide key information at the moment of decision making.   Territorial Economic Variables:  Whether the market is in the national or international territory, the entrepreneur must be aware of what happens. Some variables are: -         The income...

Gathering of Research Data  Main role of an entrepreneur -         The entrepreneur must prepare a plan that will help to collect the data to prove that the objectives of the research were accomplished. -         The entrepreneur must have good team working skills for the gathering of research data because it is most likely that the entrepreneur must work in a team. -         For an entrepreneurship project, that usually has low budget, the best idea is to have friends or family be part of the research team. Information Gathering Priority should be given to capturing data related to qualitative and quantitative research. -         Qualitative research : To provide knowledge and understanding about the problem being the object of the research. The quality of the information. -         Quantitative research : To...

Customers or Beneficiaries To have clients or beneficiaries identified and characterized according to the product. That’s why the entrepreneur must keep in mind the information collected from the consumer profile. From this point, there’s an obligation to make a consumer profile matrix that will show the entrepreneur’s strategy.   Consumer Profile Matrix The entrepreneur must be familiar with characteristics with the people that, when the business starts, will spend their income on the good or services offered by the entrepreneur. To help understand and systematize the relationship of the consumer profile, their unsatisfied needs and the product as the solution, it is recommended to elaborate a descriptive matrix. In the matrix there must be arguments that will support the strategy knowledge that must be present in all the decisions taken by the entrepreneur.   Descriptive Characteristics of the Customer Descriptive Elements of the Unsatisfied Need Characteristics of the Good ...

  ·        Why is accounting important? o     It’s important that the entrepreneur knows about the financial aspect of the entrepreneurship. The accounting process starts with the documentary support that must be present at the moment of generating a determined financial transaction. This ends with the generation of periodic reports or summaries called balance sheets or financial statements. ·        Running an entrepreneurship o     There needs to be an owner or manager that in the process of decision making and business control, they use the capture, processing, reporting and analysis of data transformed into information. This will allow them to identify signs related to what is happening inside and out of the entrepreneurship. o     Accounting is an administrative tool oriented towards the generation of useful information to know about the evolution of the inner financial sta...

Source of information -         Primary Resources: Gathering of information made by a researcher -         Secondary Resources: Information and data available to the entrepreneur Techniques to gather information -         Survey:  It is the most used, a series of questions given to a group of people to be filled out individually. It can be done in person, by email, by phone and over the internet. They are usually multiple-choice questions. -         Interview:  It implies having a dialogue with a person, making questions to discover the motivation, beliefs, attitudes and the feelings towards a product and a business. For this technique to work, you must establish a good relationship with the interviewee. -         Focus Groups:  Usually between 6-10 people, considered as potential buyers of a product...