ENTREPRENEURSHIP & INNOVATION

GROUP 5
Ong, Kenneth Ivan
Ortega,
D.Aili D.
Penalosa, Floreen
Ramboyong, BM Abratigue
Rashinkar, Namita
Rivera, Adrian Regel

AR189 / A52
4Q 22-23
INTRODUCTION TO ENTREPRENEURSHIP AND
INNOVATIONS
ENTREPRENEURSHIP
Entrepreneurship is the act of pursuing an idea after having it, typically with the goal of upending the
market with a novel good or service. Although entrepreneurship typically begins as a tiny firm, the
long-term goal is far more ambitious: to seek out huge profits and seize market share with a cutting-
edge new concept.

INNOVATION
Innovation is the creation of a brand-new, practical product, service, business model, or strategy. A
company's customer service may be improved, or features could be added to an existing product;
innovations don't always include significant advances in technology or novel business structures.
INTRODUCTION TO ENTREPRENEURSHIP AND
INNOVATIONS
9 Role of Entrepreneurship in Economic Development
1. Raises Standard of Living
2. Economic Independence
3. Benefits of New Firms and Businesses
4. Creation of Jobs
5. Encourages Capital Formation
6. Elimination of Poverty
7. Community Development
8. Optimal Use of Resources
9. Increases Gross National Product and Per Capita Income
INTRODUCTION TO ENTREPRENEURSHIP AND
INNOVATIONS
Importance of Innovation in Entrepreneurship

1. It allows adaptability
A company's ability to adapt and face the difficulties of change frequently depends on innovation.
2. It fosters growth
Your firm may suffer a great deal from stagnation. Staying afloat in today's fiercely competitive world
requires achieving organizational and economic development via innovation.
3. It separates businesses from their competition
The majority of sectors are saturated with several rivals providing comparable goods or services. Your
company may stand out from competitors by using innovation.
INTRODUCTION TO ENTREPRENEURSHIP AND
INNOVATIONS

Role of Entrepreneurship and Innovation in Architecture

Architects and designers now have a far wider range of career options. As the first stages in developing
a self-sustaining model, it is possible to consider not depending solely on client fees for the firm's
operations and producing alternate sources of income. Some alternate methods include setting up online
mentoring programs, classes, self-publishing, developing software and applications, outsourcing plan sets,
and building an online repository of BIM components. In addition to giving architects the option to select
projects, revenue diversification will also help them persevere in lean times. In the modern day, architects
are no longer limited to merely building design.
CHARACTERISTICS OF SUCCESSFUL
ENTREPRENEURS & INNOVATORS

Introduction:

• Entrepreneurship and innovation go hand in

hand in driving business success.
• Successful entrepreneurs and innovators
possess unique qualities and traits.
• Understanding these characteristics can
inspire and guide aspiring entrepreneurs in
the architectural field.
CHARACTERISTICS OF SUCCESSFUL
ENTREPRENEURS & INNOVATORS
Key traits and qualities of successful of entrepreneurs and innovators:

• Passion and Vision:

• Entrepreneurs and innovators are driven by a deep passion for their ideas.
• They possess a clear vision of what they want to achieve through their ventures.
• Passion and vision fuel motivation, persistence, and the ability to inspire others.

2. Self-Motivation and Initiative:

• Successful entrepreneurs and innovators are self-driven and proactive.
• They possess a strong internal motivation to turn their ideas into reality.
• Taking initiative and seizing opportunities are key to their success.
CHARACTERISTICS OF SUCCESSFUL
ENTREPRENEURS & INNOVATORS
Key traits and qualities of successful of entrepreneurs and innovators:
3. Creativity and Problem-Solving:
• Entrepreneurs and innovators think creatively to identify opportunities and solutions.
• They challenge conventional thinking and bring fresh perspectives to the table.
• Effective problem-solving skills enable them to overcome obstacles and drive
innovation.
4. Adaptability and Resilience:
• Entrepreneurs and innovators embrace change and adapt to evolving environment.
• They are resilient in the face of failures and setbacks, learning from them.
• Adapting to new technologies, market trends, and customer needs is crucial for
success.
CHARACTERISTICS OF SUCCESSFUL
ENTREPRENEURS & INNOVATORS
Key traits and qualities of successful of entrepreneurs and innovators:
5. Risk-Taking and Fear of Failure:
• Successful entrepreneurs and innovators are comfortable with taking
calculated risks.
• They understand that failure is a stepping stone to growth and learning.
• Embracing a healthy relationship with failure enables them to take bold
actions.
6. Collaboration and Networking:
• Entrepreneurs and innovators value collaboration and build strong networks.
• They seek out diverse perspectives and leverage the expertise of others.
• Building strong relationships fosters creativity, resource sharing, and support.
CHARACTERISTICS OF SUCCESSFUL
ENTREPRENEURS & INNOVATORS
Applying Characteristics in Architecture and Innovation
• Embracing Design Thinking:
• Applying an entrepreneurial and innovative mindset to architectural
design.
• Thinking beyond traditional boundaries to create unique and user-
centric spaces.
2. Leveraging Technological Advancements:
• Embracing emerging technologies to enhance design, visualization, and
construction processes.
• Integrating Building Information Modeling (BIM), virtual reality, and
automation for efficiency.
CHARACTERISTICS OF SUCCESSFUL
ENTREPRENEURS & INNOVATORS
Applying Characteristics in Architecture and Innovation
3. Fostering a Culture of Innovation:
• Encouraging a work environment that promotes creativity and idea
generation.
• Providing resources and support for employees to experiment and
explore new solutions.
4. Collaboration with Industry Partners:
• Building strategic partnerships with contractors, suppliers, and
technology providers.
• Leveraging external expertise and resources to drive innovation and
business growth.
BUSINESS PLANNING AND EXECUTION
A business plan for entrepreneurs is a document that lists the objectives and goals of the business. It
includes information on how the business will specifically achieve its goals, including sales, marketing and
product development. It may outline each individual goal for the business, including where funds will come
from, how employees will contribute to the goals and how the business can profit.

Importance of Business Planning

1. Objectives of the Company
Setting and measuring objectives will ensure that employees and managers are clear on their duties.
2. Goals as an Entrepreneur
Setting clear goals is also helpful for you as an entrepreneur. You can use a business plan to list
specific goals that you want to achieve, along with target dates.
3. Evaluate Competitions and Find Audience
By identifying competitors and where they are not currently reaching customers, you can better
predict how you will reach them. It can also help you choose your target audience.
BUSINESS PLANNING AND EXECUTION
IMPORTANCE OF BUSINESS PLANNING
4. Manage Cash Flow
You may use profits to take a salary, reinvest in the business or find new products or services to sell.
Listing your cash flow plans in your business plan can make this decision easier.
5. To Determine Company Funding
You may decide to take out a business loan or invite investors to be a part of your business. New
businesses often require funds and a business plan can help you present your ideas to potential
investors.
6. Assistance for Importance Business Decisions
With a clear business plan in place, you can determine the specific times or goals you must meet to
make these important decisions.
BUSINESS PLANNING AND EXECUTION
KEY COMPONENTS OF COMPREHENSIVE BUSINESS PLAN
1. Executive Summary
This is a concise overview of the entire business plan, summarizing the key points and providing a
snapshot of the business idea, objectives, target market, and financial projections.

2. Company Description
This section provides a detailed description of the business, including its legal structure, mission
statement, values, history, location, and any unique features or competitive advantages.

3. Market Analysis
This includes identifying the target market segment, assessing customer needs and preferences,
studying the competition, and conducting a thorough analysis of the industry's opportunities and
challenges.
BUSINESS PLANNING AND EXECUTION
KEY COMPONENTS OF COMPREHENSIVE BUSINESS PLAN
4. Organization and Management
Describe the organizational structure of the company, including the management team and key
personnel. Include their qualifications, responsibilities, and relevant experience.

5. Marketing and Sales Strategy

Outline your marketing and sales approach, including your target market, pricing strategy, distribution
channels, promotional activities, and sales projections.

6. Risk Analysis
Identify potential risks and challenges that could impact the success of the business. Discuss
strategies to mitigate those risks, such as contingency plans or insurance coverage.
BUSINESS PLANNING AND EXECUTION
BUSINESS IMPLEMENTATION STRATEGIES
1. Get Staff and Management Involved
It is not necessary to take input from every individual, but you can get departmental managers
involved in the process from the beginning, especially concerning how any major changes will affect
their departments.
2. Invest in Training
To implement any new business idea effectively, invest in training at every phase of the process. For
instance, at least 60 days prior to implementing a new business idea, training should focus on alerting
your staff to the pending change then introduce how such changes will benefit the company.
3. Open Communication
Implementing change is easier if you allow free and open communication within your organization.
Encourage employees to give their input about your proposed changes, and maintain an open
communication policy throughout the implementation process.
 Opportunity Identification and Ideation
Every company begins with an idea. A product or service concept that addresses an issue or
fills a need. Opportunity identification and ideation refer to the process of identifying and
developing these ideas.

There are numerous methods for identifying opportunities. Some entrepreneurs look for issues
that they can resolve, whereas others look for unmet needs. They may also seek for market
trends or changes that indicate a new business opportunity.

• Check if the solution is really required by the target

• The unmet need has the potential is a feasible business
consumers
 Opportunity Identification and Ideation
CAUSES OF NEW OPPORTUNITIES

1. Modern Technology
2. Innovation
3. Changes in Economic Conditions
4. Changes in Demographic Conditions
5. Changes in Government Regulations
6. Opportunities that are triggered by fashion or new thinking
 Opportunity Identification and Ideation
SUCCESSFUL IDEAS FOR BUSINESS MUST HAVE
Technical
• Refers to the ability to create and implement a business idea using current
Feasibility
technology. This includes elements including material, equipment, and skilled
labor availability.
Economic Feasibility
2. Refers to a company idea's potential profitability. This includes things like
production costs, product or service prices, and the size of the target market.

Market Feasibility
3. Refers to the desire for a business concept. This covers elements such as target
market size, amount of competition, and consumer willingness to invest in the
product or service.
 Opportunity Identification and Ideation
TIPS FOR CONDUCTING A FEASIBLE STUDY:
Do Research
• It is essential that there is enough information about the industry, target market,
and competition. This would lead to a better understanding towards the potential
and challenges that would hinder growth.
Talk to Experts
2. Asking or gathering more data from people who are expert and familiar with an
industry can offer valuable insights and knowledge.

Create a Business Plan

3. A business plan is a road map for a company. It should contain its objectives,
strategies, and financial projections. As a firm grows, this will help it stay on track
and make educated decisions.
Funding Options for Architectural Firms

Personal Savings
• no external problems such as repayments or interests, make sure you're confident it will work

Bank Loans
• banks have lower interest rates than other types of loans = more affordable option

Government Grants
• for awarded businesses that will help and benefit the community; new technologies

Crowdfunding
• obtaining the needed amount of money from a large audience or people
Funding Options for Architectural Firms

Angel Investors
• individuals that are providing funding for businesses that most of them are passionate about

Family and Friends

• willing to invest in your business if they believe in your business idea

Business Credit Cards

• dedicated to offering unique benefits for businesses, such as higher credit limits, greater
rewards
 SCALING AND GROWTH STRATEGIES
APPROACHES FOR SCALING AN ENTREPRENEURIAL VENTURE IN ARCHITECTURE

Diversify Services
One way to scale is by offering a broader range of services. For example, an architectural firm could
expand its offerings to include interior design, landscape architecture, urban planning, or construction
management. By diversifying services, the firm can attract a larger client base and generate additional
revenue streams.

Geographic Expansion
Scaling can involve expanding operations beyond the current market or geographic area. This could
mean opening branch offices in different cities or even expanding internationally. By tapping into new
markets, an architecture firm can access a larger client pool and capitalize on opportunities in
different regions.
 SCALING AND GROWTH STRATEGIES
Technology Adoption
Embracing technological advancements can enhance scalability. Implementing Building Information
Modeling (BIM) software, virtual reality tools, or other innovative technologies can streamline design
processes, improve efficiency, and allow for the handling of more projects simultaneously.
Technology adoption can also lead to better visualization, communication, and collaboration with
clients and stakeholders.
Strategic Partnerships and Collaborations
Collaborating with other firms, professionals, or organizations can be an effective way to scale. By
forming strategic partnerships, architecture ventures can combine resources, expertise, and networks
to take on larger and more complex projects. These collaborations can also help in accessing new
markets or leveraging each other's strengths.
 SCALING AND GROWTH STRATEGIES
Streamline Operations
To scale effectively, it's important to optimize internal operations and improve productivity. This may
involve implementing project management systems, standardizing workflows, and automating
repetitive tasks. By eliminating bottlenecks and enhancing efficiency, the venture can handle more
projects without sacrificing quality.

Branding and Marketing

A strong brand presence and effective marketing strategies are crucial for scaling an entrepreneurial
venture in architecture. Developing a unique brand identity, showcasing past successful projects, and
actively promoting the firm's expertise can attract new clients and create brand recognition. Utilizing
digital marketing techniques, such as social media, website optimization, and content creation, can
help reach a wider audience and generate leads.
 SCALING AND GROWTH STRATEGIES
CHALLENGES AND CONSIDERATIONS WHEN GROWING AN
ARCHITECTURE BUSINESS
Market Competition
The architecture industry can be highly competitive, with numerous established firms and
professionals vying for clients and projects. As the business grows, it may face increased
competition, both from local and global players. Standing out from competitors and offering a unique
value proposition becomes crucial. Identifying a niche market or specializing in a specific architectural
style or service can help differentiate the business.
Financial Resources
Scaling a business often requires significant financial resources. Expanding operations, hiring
additional staff, investing in technology and infrastructure, marketing efforts, and other growth-related
expenses can strain the financial stability of the firm. It's essential to carefully plan and secure
adequate funding sources, such as loans, partnerships, or investment capital, to support the growth
 SCALING AND GROWTH STRATEGIES
Managing Project Compexities
Scaling an architecture business often involves taking on larger and more complex projects.
Managing multiple projects simultaneously while ensuring quality, timeliness, and client satisfaction
can be demanding. Effective project management systems, streamlined workflows, and clear
communication channels are essential for handling increased project complexity. It may also be
necessary to invest in project management software and tools to support efficient operations.
Client Diversification
Relying heavily on a few key clients can pose risks to the business. Client diversification is important
for stability and reducing dependency on a single source of revenue. It may be necessary to target
new markets, pursue diverse project types, and cultivate a broad client base to mitigate the risks
associated with relying on a limited number of clients.
 SCALING AND GROWTH STRATEGIES
Adapting to Industry Trends and Technological Advancements
The architecture industry is continually evolving, driven by technological advancements, changing
design trends, and sustainability considerations. Staying abreast of industry trends and embracing
new technologies can be challenging but necessary to remain competitive. Investing in ongoing
professional development, adopting emerging design tools and software, and incorporating
sustainable design practices are essential considerations when growing an architecture business.
Legal and Regulatory Considerations
Growing an architecture business may involve navigating complex legal and regulatory frameworks.
Compliance with building codes, zoning regulations, environmental requirements, and licensing
obligations becomes increasingly important. It is crucial to stay updated on the evolving legal
landscape, maintain proper licenses and certifications, and ensure adherence to all relevant
regulations.
 REFERENCES
Balasubramanian A. (2023). Opportunity Identification and Ideation. Retrieved June 9, 2023 from
https://startuptn.in/opportunity-identification-and-ideation/

Helm Rinder Knecht. (n.d.). Architecture & Design Business Start-Up Funding Options. Helm Rinder
Knecht. https://www.helmrinderknecht.com/architecture-design-business-start-up-funding-options.html

FasterCapital. (2023). SME Funding What are the best options for entrepreneurs. FasterCapital.
https://fastercapital.com/content/SME-Funding--What-are-the-best-options-for-entrepreneurs.html

Royal Architectural Institute of Canada. (n.d.) Financial Management. Part 3 : Management of the
Architectural Practice. https://chop.raic.ca/chapter-3.4#b5-2