Entrepreneurship and Leadership

  Advertisement   Advertising is a form of communication that is sponsored and has a message promoting or selling or trying to sell a product or service or an idea. It is classified as a form of marketing communication.   Types of advertising   Online Advertising:  Online advertising or digital advertising as a form in which the message is conveyed via the internet. For every website ads are a major source of revenue. Advertising online has become very popular in the last decade and has surpassed the expectations of most of the advertising experts. 60% revenue of  Google  is generated from ads and the same goes for  Facebook . Online advertising has become so effective that a particular ad can be targeted to a specific person of specific age of a specific location on a specific time. In terms of pricing advertising online is very cheap compared to all other forms of advertising. The major disadvantage of online advertising...

  Microeconomics and Macroeconomics   Microeconomics and macroeconomics are two of the largest subdivisions of the study of economics wherein micro- refers to the observation of small economic units like the effects of government regulations on individual markets and consumer decision making and macro- refers to the "big picture" version of economics like how interest rates are determines and why some countries' economies grow faster than others'.   Microeconomics: Individual Markets    Those who have studied Latin know that the prefix “micro- “means “small,” so it shouldn’t be surprising that microeconomics is the study of small economic units. The field of microeconomics is concerned with things like:   consumer decision making and utility maximization firm production and profit maximization individual market equilibrium effects of government regulation on individual markets externalities and other market side effects   Microecono...

  Special Requirements for an Entrepreneurship   The touristic activities and those businesses related to the production of food, require the fulfillment of requirements that the legislation of Ecuador has established as an obligation. One of them is the sanitary permit.   Sanitary Permit   A sanitary permit is issued by the local health authority for an establishment to operate, be it food or not food establishment. This permit is subject to control and health observation to make sure all the products that will be offered to the public are not harmful.   How to obtain an Operating Permit? According to regulation, to obtain an operating permit you need to go to the ARCSA which in Spanish means “Agencia Nacional de Regulación, Control y Vigilancia Sanitaria”. The permit is valid for one year. The following documents are needed to obtain an operating permit:   a)       STR or RUC in spanish b)      Identity card c)...

  Marketing Mix   Understanding How to Position Your Market Offering The 4Ps of marketing is a model for enhancing the components of your "marketing mix" – the way in which you take a new product or service to market. It helps you to define your marketing options in terms of price, product, promotion, and place so that your offering meets a specific customer need or demand. What is marketing? The definition that many marketers learn as they start out in the industry is: putting the right product in the right place, at the right price, at the right time. It's simple! You just need to create a product that a particular group of people want, put it on sale some place that those same people visit regularly, and price it at a level which matches the value they feel they get out of it; and do all that at a time they want to buy. Then you've got it made! There's a lot of truth in this idea. However, a lot of hard work needs to go into finding out what customers want, and...

  Employment in the market The employment level of the country is a piece of information the entrepreneur should be aware of. When in the economy of a country the level of unemployment goes up, the income of the people as a result go down and the capacity to buy go down as well. This affects directly or indirectly to the sales of businesses.  When in a country, there is a high number of people who have a safe and stable job, it is an indicator of a healthy situation of the local economy.    Prices Another aspect to be considered by the entrepreneur is to know about the general prices of goods and services. These have an established price, which changes all the time. For example: the price of cars go down, the price of properties go up, the price of food can go up or down. The price can determine the quantity of goods or services a person can acquire depending on their income. The price also indicates the profit the entrepreneur can receive from the sale of goods and ...

  ESTR – Ecuadorian Simplified Tax Regime (RISE – Régimen Impositivo Simplificado Ecuatoriano)   According to the IRS, the ESTR is a new regime of volunteered incorporation, it replaces the value added tax and income tax through monthly payments and it is in favor of improving the tax culture in the country.    What is it used for? The ESTR has two objectives, for the contributor it helps with the process of paying the taxes on time, and for the tax administration it helps to build a tax culture. This helps the population to be aware that the payment of taxes helps to distribute the wealth across the country.   Among the main benefits of having the ESTR, according to the IRS, are the following:   -         There is no need for declarations, no cost of forms and the hire of third parties to fill them out -         Avoid taxes retaining -         Allows to...

  Communication Plan. Aspects for market segmentation   Market segmentation is a key strategy that the entrepreneur must carry on before defining the communication strategy. The moment that is defined and described - with the information from the market study - to the group of potential buyers of the good or service object of the entrepreneurship project, is in a position to establish a communication plan that helps to make known, effectively, to the target market the advantages and other characteristics of the product that is being produced and commercialized. This entrepreneurial concern is vital to be able to ensure that the effort made in the production of a good or service ends its cycle at the time it is demanded, with a high level of acceptance, by consumers present in the market.    Every business decision must be taken from the database and information related to the internal and external scope of the business. In the case of an entrepreneurial project, it i...

  Economy applied to Entrepreneurships The knowledge about the behavior of variables that explain the environment in which a productive activity takes place is key for the entrepreneur at the moment of choosing and defining the strategy that will allow them to take advantage of opportunities and defend against threats.    Economy of the Market All people that have needs such as, clothing, education, eating and recreational can be solved through the acquisition of goods and services.   Goods and Services A GOOD is an object people want that they can touch or hold. A SERVICE is an action that a person does for someone else. Examples: Goods are items you buy, such as food, clothing, toys, furniture, and toothpaste. Services are actions such as haircuts, medical check-ups, mail delivery, car repair, and teaching. Goods are tangible objects that satisfy people's wants. Services are actions, such as haircuts and car repair, which also satisfy ...

  Legal and Social Responsibility of the Entrepreneur STR Single Taxpayer Registration (RUC) At the moment of meeting the requirements established by the Ecuadorian legislation, the entrepreneur must obtain a Single Taxpayer Registration (STR) (in Spanish RUC – Registro Único de Contribuyente) as a means of formal recognition of your business. It is like an identification to carry out productive activities, acts to comply the tributary obligations and it is the means used by the tax control authority.   According to the Internal Revenue Service (IRS) (in Spanish SRI – Servicio de Rentas Internas), the STR it is a number identification for all the people and societies that make an economic activity in Ecuador. It contains 13 numbers according to the type of taxpayer its composition varies, the STR is usually the citizenship identification number followed by 001.   What is it used for? The Ecuadorian tax administration establishes that the STR has as main function the regis...