ENTREP

RECOGNIZE A
POTENTIAL
MARKET
Entrepreneurship
OBJECTIVES
Learn and understand the sources of opportunities for business.
Determine the essentials in the entrepreneur’s opportunity seeking.
Identify market problems and propose potential products or services
that will meet the market needs.
Know the problem in which a business opportunity arises from.
Identify, screen and propose solutions to meet the problem.
Select the best product or service that will meet the market’s need
with a consideration of generating profit.
ENTREPRENEURIAL IDEAS
The creation of an entrepreneurial idea leads to the
identification of entrepreneurial opportunities, which
in turn results in the opening of an entrepreneurial
venture.
Creation of Identification of Opening of

Creation of entrepreneurial Creation of entrepreneurial Creation of entrepreneurial
entrepreneurial
Ideas entrepreneurial
Ideas entrepreneurial
Ideas
Ideas Opportunities Venture
The Entrepreneurial Process of Creating New Venture

ESSENTIALS IN ENTREPRENEUR’S OPPORTUNITY – SEEKING
These are the basic foundation that the entrepreneur must have in seeking opportunities:
ENTREPRENEURIAL MIND FRAME

This allows the entrepreneur to see things in a very positive and optimistic way in the
midst of difficult situation. Being a risk - taker, an entrepreneur can find solutions when
problems arise.
ENTREPRENEURIAL HEART FLAME
Entrepreneurs are driven by passion; they are attracted to discover satisfaction in the act
and process of discovery. Passion is the great desire of an entrepreneur to achieve his/her
goals.
ENTREPRENEURIAL GUT GAME
This refers to the ability of the entrepreneur of being intuitive. This also known as
intuition. The gut game also means confidence in one’s self and the firm belief that
everything you aspire can be reached.
SOURCES OF OPPORTUNITIES
1. Changes in the environment
Entrepreneurial ideas arise when changes happen in the external environment.
A person with an entrepreneurial drive views these changes positively. External environment refers to
the physical environment, societal environment, and industry environment where the business operates.
1.1 The Physical environment includes
a. Climate – the weather conditions.
b. Natural resources – such as minerals, forests, water, and fertile land that occur in nature and can be
used for economic gain.
c. Wildlife – includes all mammals, birds, reptiles, fish, etc., that live in the wild.
1.2 The Societal environment includes the various forces like

a. Political forces – includes all the laws, rules, and regulations that govern business practices
as well as the permits, approvals, and licenses necessary to operate the business.
b. Economic forces – such as income level and employment rate.
c. Sociocultural forces – customs, lifestyles and values that characterize a society
d. Technological environment – new inventions and technology innovations.
1.3 The Industry environment of the business includes:
a. Competitors
b. Customers
c. Creditors
d. Employees
e. Government
f. Suppliers
For example, one factor in the physical environment that can easily change is the climate. The
temperature is very high during summer but very low during the rainy season. An individual with
entrepreneurial drive can be extremely imaginative and inventive in identifying opportunities. He/she
can venture on a business that responds to the needs of the people during summer and rainy season.
2. Technological discovery and advancement A person with entrepreneurial interest sees po
A person with entrepreneurial interest sees possibility of business opportunities in any new discovery
or because of the use of latest technology.
For example, an individual with knowledge in repair and installation of a machine engine discovers
additional engine parts that considerably reduce fuel consumption.
3. Government’s thrust, programs, and policies
The priorities, projects, programs, and policies of the government are also good sources of ideas.
For example, the use of firecrackers to celebrate New Year’s Eve is strictly prohibited. People without
entrepreneurial interest will view the ordinance as a plain restriction. However, for an entrepreneur, it
is a business opportunity to come up with a new product that will serve as a substitute for firecrackers.
4. People’s interest
The interest, hobbies, and preferences of people are rich sources of entrepreneurial ideas, like the
increasing number of Internet Cafés at present could lead to the strong attachment of young people to
computers.
5. Past experiences
The expertise and skills developed by a person who has worked in a particular field may lead to the
opening of a related business enterprise.
For example, an accountant who has learned the appropriate accounting and management skills and
techniques in a prominent accounting firm can start his/her business venture by opening his/her own
accounting firm.
FORCES OF COMPETITION MODEL
It is also known as the “five forces of competition”. An industry environment is a
competitive environment. Regardless of what product or services you have,
competition is always present.
Competition – it is the act or process of trying to get or win something.
For example, the prices are lower when there is a competition among the stores.
These are the five forces competing within the industry:
Buyers
Potential new entrants
Rivalry among existing firms
Substitute products
Supplier
1. Buyers
The buyers are the ones that pay cash in exchange for your goods and
services. One example is the influence of the price or in the bargaining
strategy. The buyer has a strong and magnified bargaining power. The threat
of its bargaining power will be less if the following factors are noticed:
a. There are several suppliers available in the market.

b. The buyer has the potential for backward integration.
c. The cost of switching the supplier cost is minimal.
d. The product represents a high percentage of the buyer’s cost.
e. The buyer purchases large portions of the seller’s product or services.
2. Potential New Entrants
A new entrant is defined as companies or businesses that have the ability to
penetrate or enter into a particular industry. For example, in the level of
capital requirements, if the business requires huge capital, new entrants
should decline to join the business. This gives a threat to the business. This
can be noticed if there is the presence of the following factors:
a. Substantial capital requirement

b. Strict government policy
c. Difficulty in accessing distribution channels
d. Economies of scale
e. High cost of product differentiation
f. High switching cost
3. Rivalry among Existing Firms
A Rivalry is a state or situation wherein business organizations are competing
with each other in a particular market. For example, it depends on the
marketing strategy of your competitor, like giving freebies and special offers.
The intensity of rivalry among existing firms is characterized to the following
factors:
a. Diversity of rivals
b. Number of competing firms
c. Characteristics of the products or services
d. Increased capacity
e. Amount of fixed costs
f. Rate of industry growth
5. Suppliers
The Suppliers are the one that provide something that is needed in business
operations such as office supplies and equipment. In an example where
supplies and services being offered is unstable the intensity of the threat is
strong in this kind of the competitive force in the industry. This can be
noticed if there is the presence of the following factors:
a. The supplier has the ability for forward integration

b. Suppliers in the industry are few, but the sales volume is high
c. Substitute products are not readily available in the market
d. The switching cost is very high
e. The product or service is unique
THANK YOU
Presented By : HAREN MADRIGAL
ALYSSA BARDELOSA
KYLA IKAWA
RACHEL LABOG
IRISH LARA
NATHALIE LADAO
MARY ROSE LARGO
STHEPHANIE LUHA

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RECOGNIZE A

Creation of Identification of Opening of

Ideas Opportunities Venture

The Entrepreneurial Process of Creating New Venture

ENTREPRENEURIAL MIND FRAME

1.2 The Societal environment includes the various forces like

2. Technological discovery and advancement A person with entrepreneurial interest sees po

a. There are several suppliers available in the market.

a. Substantial capital requirement

a. The supplier has the ability for forward integration

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