ENTREPRENEUR REVIEWER Have a sharp eye for opportunities

Entrepreneurs have a talent for recognizing an opportunity

ENTREPRENEURSHIP even by using the macro level data only. They know how to
entrepreneur originates from the French word, entre which assess the net cause and effect of an opportunity and decide
means “between” and prendre, which means “to undertake.” intelligently if a venture should be considered or not.
In a business context, it means to start a business.
ACADEMIC DEFINITION (Stevenson & Jarillo) Sociable
Entrepreneurship is the process by which individuals pursue Soft skills are one of the most important competencies of
opportunities without regard to resources they currently entrepreneurs as these establish the relationship with the
control most important assets of the company – its people and its
VENTURE CAPITALIST (Fred Wilson) customers.
Entrepreneurship is the art of turning an idea into a
business. Networkers
 Proactive process of developing a business venture A network knows the key people to connect with. Successful
to make a profit. entrepreneurs gain trust of their valuable network and
 It involves seeking opportunities for a market, maintain a long-lasting relationship with them.\
establishing, and operating a business out of the
opportunity, and assessing its risks and rewards Decisive
through close monitoring of the operations.
Entrepreneurs always have a decision about their business.
THE SOCIETAL AND ECONIMIC BENEFITS OF They do not settle for gray areas or unclear solutions. They
ENTREPRENEURSHIPS make sure that all aspects of their business have clear
1. produces more jobs that equate to an increase in objectives and strategies. They also base their decisions on
national income. scientific calculations backed up by their experience and
2. amplifies economic activities of different sectors of technical knowledge.
society.
3. introduces new and innovative products and Balanced
services. The minds of entrepreneurs should have a balance between
4. improve people’s living standards. the analytical and the creative side. Entrepreneurs always
5. disperses the economic power and creates equality. have “Eureka!” moments and enjoy them.
6. controls the local wealth and balances regional
development. Innovative
7. reduces social conflicts and political unrest.
The minds of Entrepreneurs are rich with big ideas that can
8. elicits economic independence and capital formation
add value to their existing business or could become a game
The three primary reasons that people become charger in the industry or business where they belong.
 entrepreneurs and start their own business
1. Desire to be their own boss Leaders
2. Desire to pursue their own ideas
Successful entrepreneurs always have the heart of a leader.
3. Financial rewards
To be successful leaders, they must be a source of inspiration
Common and Core Competencies in for their employees.
Entrepreneurship
 To be considered a successful entrepreneur, he or Communicator
she must posses' common entrepreneurial
Entrepreneurs know how to use all forms of communication to
competencies that are needed all throughout the
effectively share ideas and address certain concerns with their
entrepreneurship career and core competencies that
customers or employees.
are needed for business sustainability and
management.
Specialists
Here are the common traits that entrepreneurs Entrepreneurs know how to use all forms of communication to
should always have: effectively share ideas and address certain concerns with their
customers or employees.
Proactive
Entrepreneurs are reactive rather than passive. They ensure Problem Solver
that proper research is done, the risk factors are assessed, Entrepreneurs possess critical thinking skills and look at
and plans are executed on a timely and most efficient. problems as challenges or puzzles that they need to solve.

Agents of Change Entrepreneurship and Employment

Entrepreneurs are innovation champions. They are always two different career paths that a person can choose
enthused to improved and develop new products and services depending on his or her personal aspirations and work
and introduce them to the market. characteristics. It is up to the person at the end of the day on
what career trail he or she will follow, considering all
Risk Taker compelling career factors that are important to him or her.
By taking risks, entrepreneurs do not just grab opportunities
left and right but by taking into consideration potential various
threats they may encounter. If they think that there is a big
chance of succeeding, they push through with the venture and
don’t let the opportunity pass.
 What are the Pros and Cons of Entrepreneurship  Has a flexible schedule and can take unlimited
and Employment number of vacation days
EMPLOYEE
 Has a limited number of vacation days imposed by
Income
the employer
ENTREPRENEUR
 Income generated passively even when the
TYPES OF BUSINESS
entrepreneur is resting.
Identifies how you take part in the business field that you
 Opportunity income unlimited, depending on the
choose. Your personal characteristics and your available
success of the business.
networks often guide you into a suitable type of business
 Income only earned when the business is successful.
EMPLOYEE There are three types of business according to activities:
 Income generated actively (no work no pay, working
Services
per/hr. rate)
Service providers are people whose businesses sell a
 Income usually fixed/month and increases every
particular service, such as transportation, tours, hairdressing,
year depending on the employer and employee’s
banking, deliveries, construction, repairs, cleaning, painting,
performance • Income earned whether the business
nursing, etc.
is successful or unsuccessful

Hiring and Firing, Organizational Setup, and Major Manufacturing

Manufacturers are business that use new raw materials, such
Key Result Areas
as leather, waste material, wood, cloth, or metal and make
ENTREPRENEUR new or different products out of those materials.
 Provides jobs; owner usually have all the right to
conduct the selection
Merchandising
 Fully responsible for serving customers, employees
Merchandising is a business that sells tangible products. This
and sustaining the business profitability
type buys finished goods or almost finished goods from their
 Has the power to disengage nonperforming
suppliers and resell the same to customers.
employees
 Can venture into expansion of business
There are two types of merchandising business:
EMPLOYEE
wholesaling
 Seek for a job and follow series of process before
Wholesalers are businesses that buy large quantities of
hiring
certain goods from manufacturers and resell those goods to
 Has the goal of satisfying the immediate supervisor
retail outlets, who then resell them to individual consumers.
 Fully dependent on employer’s performance
 Can only work for the current employer exclusively
Retailing
Daily Task
Retailers purchase ready-made goods from wholesalers or
ENTREPRENEUR suppliers for resale at a profit.
 Performs all necessary variable to establish and
manage a startup business; give all his time in the
ENTREPRENEURIAL PROCESS
business and sometimes gets no sleep.
A step-by-step procedure in establishing any kind of business
 Prepares policies, procedures, and memoranda for
that an entrepreneur has to undergo.
the business.
EMPLOYEE
Opportunity spotting and assessment
 Has routine tasks and works on regular or normal
 beginning of the process and the most difficult
hours
 take note of interesting trends
 Follows policies, procedures, and memoranda from
 find sources of opportunity information
the employer
Taxation
Developing a business plan.
ENTREPRENEUR A business plan is a comprehensive paper that details the
 Taxed on the net income; can claim taxable income marketing, operational, human resource, financial strategic
deductions for allowable expenses incurred by the direction, and tactics in business.
business
EMPLOYEE Determining the capital needed.
 Taxed on the gross income; cannot use expenses It is mandatory in the entrepreneurial process to calculate the
incurred related to job such as food and resources needed to establish the business and compare this
transportation expenses to claim for deductions from process against the entrepreneur’s current resources.
taxable income
Comfort Level of Work Running the business.
ENTREPRENEUR The business plan should already have been implemented.
 Is comfortable in doing multiple and challenging
tasks and takes accountability with the risks and Scanning the Marketing Environment
profits of the business starting point of any new venture that involves understanding
EMPLOYEE and knowing the intricacies of the macroenvironment and
 May be comfortable with routines and minimal risks microenvironment.
Leisure Time and Vacations
ENTREPRENEUR
FIND THE OPPORTUNITY FIRST BEFORE COMING UP The entrepreneur should say NO to an opportunity
WITH A NEW PRODUCT OR SERVICE, NOT THE OTHER if it does not contain any of these business
WAY AROUND.
opportunity elements:
3’s of Opportunity Spotting and Assessment  Has superior value to customers.
 Solves a compelling problem, issue, a need, or a
want
A framework that most of the promising entrepreneurs use to
 Is a potential cash cow
finally come up with the ultimate product or service suited for
 Matches with the entrepreneur’s skills, resources,
a specific opportunity.
and risk appetite.

S1: SEEKING THE OPPORTUNITY S3: SEIZING THE OPPORTUNITY

The first step and is the most difficult process of all due to the
Opportunity Seizing is the last step in opportunity spotting and
number of options that the entrepreneur will have to choose
assessment. This is the “pushing through” with the chosen
from. It involves the development of ideas from various
opportunity. The entrepreneur’s idea can be any type of
sources as follows:
innovations listed here.

MACROENVIRONMENTAL Innovation
1. STEEPLED
is the process of positively improving an existing product or
2. Industry
service. It is a key driver for economic growth.
3. New discovery or knowledge
4. Futuristic opportunities
There are three types of innovations according to the
MICROMARKET degree of distinctiveness.
1. Consumer preferences, interests, and perception
Breakthrough innovation
2. Competitors
These inventions occur infrequently as these establish the
3. Unexpected opportunities from customers
platform on which future innovations in an area are developed.
4. Talents, hobbies, skills, and expertise
These innovations must be protected by a patent, a trade
5. Irritants in the marketplace such as deterrents,
secret, or a copyright.
problems, complaints, and delays.
6. Location Technological innovation
These innovations occur more frequently than breakthrough
STEEPLED Analysis
innovations. These innovations are technological
Socio-cultural Factors advancements of an existing product or service.
represent a general view of a locality’s traditions, customs,
Ordinary innovation
beliefs, norms, and perceptions.
These innovations occur ordinarily as the name implies. They
are commonly originating from market analysis and
Technological Factors technology pull instead of a technology push.
composed of innovations of an existing technology or an
 Technology push
invention of a new one mostly on applied science and
- is when research and development in new
engineering research areas.
technology drives the development of new products.
It tends to start with a company developing an
Economic Factors innovative technology and applying it to a product.
has a direct effect on any business venture.
 Technology pull
- refers to the need/requirement for a new product or
Environmental or Ecological Factors a solution to a problem, which comes from the
will help the entrepreneur determine if the business he or she marketplace. A product or a range of products are
is entering into will comply with the environmental standards developed, to solve the original need.
or will just hazard to people, animals, and nature.
The last process, called the seizing process, involves
Political Factors refining and developing this opportunity. The refining process
induced by the government policies and administrations. is called product or service planning and development
process.
Legal Factors
Government laws and regulations that can restrict or allow It has four key stages.
business activities. 1. Idea stage – Identify the feasible products and/or
services that will perfectly suit the opportunity.
Ethical Factors 2. Concept stage – The developed idea will undergo a
factors that will serve as entrepreneur’s guides on how to be consumer acceptance test. This test includes getting
ethical in running the business. the initial reactions of the primary target market and
the distribution channel. Both favorable and
Demographic Factors unfavorable results will be considered to devise an
these are the characteristics of the people in the target market. acceptable product or service.
3. Product development stage – The entrepreneur
S2: SCREENING THE OPPORTUNITY will conduct a consumer panel where the actual
Opportunity Screening is the process of cautiously selecting product or service samples will be given to potential
the best opportunity. customers for criticism purposes. They are also
given samples of competitors’ products or services
for comparative purposes.
 4. Test marketing stage – This stage validates the is the size of the arena where the entrepreneur’s business will
work done from the first three stages to measure play. It is the approximation of the number of buyers and
success in the commercialization of the product or sellers in a particular market
service. MARKET SEGMENTATION
VALUE PROPOSITION is the process of dividing a market of potential customers into
simply states why a customer should buy a certain product or groups, or segments, based on different characteristics.
service. It is the major driver in customer purchase or service
availment. THE MARKETING MIX
The set of actions, or tactics, that a company uses to promote
Tagline its brand or product in the market. The combination of
 brief phrase used to relay a brand’s value. marketing components that will maximize customer
 It creates a lasting impression on consumers. satisfaction and ensure PROFITS.
Slogan
 attention-grabbing statement used to advertise. THE 7PS OF MARKETING
 These phrases share the business reason for USES OF THE 7Ps MODEL
existing  Conduct a situation analysis
 often use a combination of persuasion and  Set objectives
description  Conduct a strength, weakness, opportunity, and
threat (SWOT)
CUSTOMER REQUIREMENT  Come up with marketing strategies and tactics
 are specific features and characteristics that the
customers need from a product or service. PRODUCT
 vary from person to person! The Entrepreneur must - Any physical good, service, or idea that is created by an
group them together, calculate their size, and come entrepreneur or an innovator in serving the needs of the
up with products and services that suit their customers and addressing their existing problems
customers. Customers
 are said to be the lifeblood of the business.
PLACE
 is the voice of every business that every
- it refers to a location or the medium of transaction. It also
Entrepreneur should listen to.
covers the product distribution and the whole business
logistics.
TARGET MARKET - To make the product conveniently available to the target
 A specific group of consumers at which a company market consistent with their purchasing pattern.
aims its products and services.
 It is a group of people considered likely to buy a
PRICE
product or service.
- It is the peso value that the entrepreneur assigns to a certain
product or service after considering its costs, objectives,
Primary Target Market positioning, and target market.
 a specific group of consumers you want to attract to - It is the only P in the 7Ps that generates revenues for the
your product or service. business.
 This market accounts for the highest volume of sales
Price Strategies
and are most likely to buy now!
1. Bundling – This refers to two or more products or services
 This market shares common characteristics and
in one reduced price.
behaviors.
2. Penetration Pricing – This refers to setting low prices to
Secondary Target Market increase market prices, but the entrepreneur will eventually
 The secondary target market includes future primary increase the price once the desired market share is achieved.
buyers, which are those buying at a higher rate within 3. Skimming – This is the opposite of penetration pricing
a small market segment and are those who influence where prices are initially high and then they are lowered to
primary buyers. offer the product or service to a wider market.
 Their characteristics and buying behaviors usually 4. Competitive Pricing – This refers to the benchmarking
differ from those of the primary target market. prices with the competitors.
KNOW YOUR CUSTOMERS 5. Product Line Pricing – This refers to pricing different
products or services within a parallel product array using
Marketing Research varying price points.
a comprehensive process of understanding the customers’ 6. Psychological Pricing – This considers the psychology
intricacies and the industry they revolve in. - It aims to and positioning of price in the market.
scrutinize the target market, their specific requirements, and 7. Premium Pricing – This refers to setting a very high price
the market size where the business operates. to reflect elitism and superiority
8. Optional Pricing – This refers to adding an extra product
“MARKETING IS THE PROCESS OF CONTINUOUSLY AND or service on top of the original to generate more revenue
PROFITABLY SATISFYING THE TARGET CUSTOMER’S NEEDS, 9. Cost-Based Pricing – The basis of markup is the cost of
WANTS AND EXPECTATIONS SUPERIOR TO THE sales.
COMPETITION.” 10. Cost Plus Pricing – The markup is based on a certain
percentage of cost.
MARKET SIZE
2 CLASSIFICATIONS OF COSTS
 Variable Costs or Controllable Costs FUNDAMENTALS OF BRAND MANAGEMENT
these costs are directly proportional to the number of products  A brand refers to the identity of a company, of a
manufactured or to the number of services performed. (Raw product, of a service, or of an entrepreneur himself
materials used) or herself.
 A brand is a symbol of promise or assurance from
Fixed Costs or Uncontrollable Costs the entrepreneur that what it purports to the
These costs are not directly proportional to the manufacturing customers will happen.
of a product or to the performance of the service. (Cost of  Brand management is the supervision of the tangible
equipment, rental cost, and utilities) and intangible elements of a brand.

PROMOTIONS Branding is the process of integrating the strategies formed

It involves presenting the products or services to the public from the marketing mix to give an identity to the product or
and how these can address the public’s needs, wants, service.
problems, or desires. The primary target market will become
the main audience.  Establishing to target customers that the business is
reliable and trustworthy, and that the product or
service is the superior solution to their current
Promotional Tools problem.
1. Advertising - This a type of communication that  Differentiating with competitors
influences the behavior of a customer to choose the  Driving customer loyalty and retention
product or service of the entrepreneur over the
competitors. - Informing, educating, and familiarizing
A brand name must possess the following
the public with the product and service offerings -
Building a trustworthy image - Increasing the sales characteristics:
 Unique
FORMS OF ADVERTISING
 Easy to remember
 Television – regular channels,  Can be converted to other dialects or languages in
cable TV case the entrepreneur expands to other territories
 Radio – AM and FM radio  Positive and inspiring
 Internet – e-mails, websites,  Extendable
blogs, social media  Can describe the benefits of the product or service
 Mobile phones – test messages,  Can describe a product strategy
mobile applications  Can describe concrete qualities
 Print – newspapers, magazines,
flyers, directories, signages,
posters
2. Selling – this is the act of trading a product or service
for a price or a fee.
3. Sales Promotions – These are the short-term
promotional gimmicks wherein practical incentives
and appealing activities are incorporated to entice
the customers to buy the product or avail of the
service.
4. Public Relations – These are the image-building
initiatives of the entrepreneur to make the name of
the business reputable to stakeholders, such as
target customers, government agencies, business
partners, media, and the public.

PEOPLE
It is one of the additional Ps in the marketing mix. It is not just
about the quality of products, but how employees serve
customers.

PACKAGING
It is how the product or service is presented to customers. It is
the overall identification (look and feel) of the product or
service.

PROCESS
- It is the last addition in the marketing mix as marketers began
to realize the importance of the internal and external
operations of the business to serve customers better.

- It is defined as a step-by-step procedure or activity workflow

that the entrepreneur or employees follow to serve customers
effectively and efficiently.