Entrep

ONE WILL ONLY EXPECT RETURNS ONCE

EXERTED VALUE OUT OF AN
OPPORTUNITY
ENTREPRENEURSHIP LEADERSHIP IS CORE
A proactive process of developing a INNOVATES, EXECUTES IDEAS, AND
business venture to make a profit. RARELY PROCRASTINATES
Either micro, small, or medium
enterprises.
LEVEL OF ENTREPRENEURIAL
GOALS OF ENTREPRENEURSHIP DEVELOPMENT
1. Seeks Opportunities – create jobs 1. The Self-Employed – person not
in the community, extra income, comfortable with the routines of a
and increase of tourism in the desk job. Do not want to conform
community to a fixed working schedule. Want
2. Establish and Operating Business to do things on their own way.
3. Assessing the Risk and Rewards Become too self-reliant leading to
exhaustion. Once they realize that
a business should work for them,
ECONOMIC BENEFITS OF not the other way around, they
ENTREPRENEURSHIP move to the next level
2. The Manager – they feel the need
1. Produce more jobs that equate to to step up and ask some help
an increase national income from the people around them.
2. Amplifies economic activities of They delegate and hire potential
different sectors of society employees to do the work.
3. Introduces new and innovative 3. The Leader – they enjoy seeing
products and services their people flourish, stepping up
4. Improves people’s living and producing great results with
standards minimal supervision. Focus on
5. Disperses the economic power strategic direction of the business
and creates equality than generating sales and
6. Controls the local wealth and operating the business
balances regional development 4. The Investor – they look for more
7. Reduces social conflicts and opportunities for their business to
political unrest grow.
8. Elicists economic independence 5. The True Entrepreneur – they now
and capital formation aim for quality and excellence in
their work based on their
Entrepreneur – from entre means experience. Income multiplies
“between” and prendre means “to even they do not put much effort
take”. Individual who has the ability A. Process of Thinking
and dedication to establish and a. Idealization – dream
manage a business, acknowledging and desire to make
all the risks and reaping its rewards. the dream a reality
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• Risk Takers – they do not grab
opportunities; they consider
potential threats they may
a. Visualization – start
encounter
to create plans to
• Have a Sharp Eye for Opportunities
make the dream a
– recognizes opportunity even by
reality
using macrolevel data only
b. Verbalization - share
• Sociable – a soft skill. Establishes
their ideas with other
relationship with people and its
people, knowing
costumers
their vision is already
• Networkers – knows the key people
occurring
to connect with
c. Materialization –
• Decisive – always have a decision
when vision
about their business
becomes a reality
• Balanced – balances their
analytical and creative side
Technopreneur - put technology at
• Innovative – rick with big ideas
the core of business model
than can add value to their
Social Entrepreneur – recognizes the
existing business
country’s social problems and turn
the to profitable institutions with the
TRAITS THAT SHOULD DEVELOP IN
intention of helping the
MANAGING AND RUUNING A BUSINESS
disadvantaged community rather
than making a profit
• Leaders – they must be a source of
Intrapreneur – entrepreneur in a
inspiration for their employees
large company who is tasked to
• Communicators – help prevent
think, establish, and run a new big
mishaps in an organization.
idea. Product managers or business
• Specialists – experts in their
development managers
chosen business
Extrapreneur – hops from one
• Problem Solvers – possess critical
company to another to act as the
thinking skills and look at problems
innovation champion, providing
as challenger or puzzle that they
creative and efficient solutions
need to solve
COMPETENCIES IN ENTREPRENEURSHIP
ENTREPRENEURSHIP OR EMPLOYMENT?
– these are important for business
Depends on one’s personal
sustainability and management
aspirations and work characteristics.
• Proactive – reactive rather than
passive
• Agents of change – see
opportunities in hopeless and
complex situations
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4. Printing Business – situated near
schools and officers. Cater
printing demands such as
PROS AND CONS OF
wedding, funeral, and graduation
ENTREPRENEURSHIP VS EMPLOYMENT
5. Buy-and-Sell Business – done
over the internet. Everyone can
technically be a seller even
without an actual business
6. Street Food Business – majority
are grilled food.
7. Feal Market Business / Tiangge –
set up a small space and sell any
type of goods in a palengke that is
normally in an open space
8. Online Selling Business – adding
internet as marketing and
transaction channel for selling
9. Cellphone Loading Business
10. Laundry and Dry Cleaning
Business – located at areas with
condominiums, townhouses, and
dormitories
11. Hair Styling and Makeup Business
12. Spa, Gym, and Nail Care Business
– way for Filipinos to cope up with
stress
13. Video and Photography Business
– capturing moments of
celebrators in events
14. Tutorial Business – caters
students who are not able to
catch up with their lessons
15. Baking Business
16. Web Site Development and
Design / Blogging
17. Direct Selling Business – face-to-
CAREERS IN ENTREPRENEURSHIP
face selling by sales agent
18. Car Wash and Car Care Business
1. Sari-Sari Store – provide
19. Bar, Café, and Restaurant
affordable basic retail products to
20.Water Station and LPG Station
nearby communities
2. Rice Retailing
BUSINESS STARTS WITH IDEA, NO
3. Food Cart Business – located
SUCCESSFUL BUSINESS STARTED HUGE
inside or outside public and
RIGHT AWAY
crowded places.
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3. Determining the Capital Needed –
big ideas can never translate into
reality if resources are limited.
FRANCHISE BUSINESS OPTIONS IN PH
Therefore, must calculate the
resources needed to establish the
business and compare this
against the current resources.
Must apply caution and only
include items that are considered
as the real needs in venture
creation. Allowance must be
considered because there will be
times that resources will be
inadequate
4. Running the Business –
RECOGNIZING THE entrepreneur should use the
POTENTIAL MARKET resources allocated for the new
venture
THE ENTREPRENEURIAL PROCESS
COMPONENTS AND STEPS IN THE
1. Opportunity Spotting and ENTREPRENEURIAL PROCESS
Assessment – most difficult
process. Entrepreneur take notes
of interesting trends. Toughest job
is to carefully assess the
opportunity through estimation of
opportunity length, capitalization
required, threats, profitability, and
calculation of real and perceived
valued. Think in advance how they
will position the product or service
in the market and showcase its
unique selling proposition.
2. Developing a Business
Plan – formulate a business plan.
A business plan is a
comprehensive paper that details
the marketing, operational,
human resource, financial,
strategic direction, and tactics of
the business. It will guide the
entrepreneur in calculating the
resources needed, assessing how
to obtain these resources
efficiently, and running the
business sustainably.
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D. Futuristic Opportunities –
projected new opportunities that
can possibly affect the new
Scanning the Market Environment –
business while it is running
starting point of any new venture.
Entrepreneur recognizes various
2. Micromarket
opportunities and understand the
A. Consumer Preferences,
area where the business will operate.
Interests, and Perception –
current needs and wants of
Opportunity – business idea that can
potential customers that
potentially become a commercial
should be discovered right
product or service in the future.
away
B. Competitors - 4Ps of
S1 – Seeking the Opportunity
marketing (Product, Place,
• Opportunity Seeking – first
Price, and Promotion) will be
step and most difficult due
competitively positioned if
to the number of options
the entrepreneur is familiar
with his or her competitors
1. Macroenvironmental Sources
C. Unexpected Opportunities –
A. STEEPLED (Sociocultural,
turning unnoticed products
Technological, Economic,
into superstar products that
Environmental, Political,
carry also the value of
Legal, Ethical, and
social responsibility
Demographic) – a
D. Talents, Hobbies, Skills, and
mnemonic representing the
Expertise – these can be a
general environment where
source of business
the entrepreneur can
opportunity
identify business
E. Irritants in the Marketplace
opportunities from and
such as Deterrents,
where the future business is
Problems, Complaints, and
about to operate.
Delays
B. Industry – source of current
F. Location – look at the
trend on what is happening
ecosystem and they
in the industry where the
entrepreneurs will be able to
future business will belong
spot a business opportunity
to
right away
C. New Discovery or
Knowledge – new trends
METHODS OF GENERATING IDEAS
that can be the core
business model of a new
1. Focus Group Discussion (FGD) – a
venture
very open, free-flowing, and in-
depth discussion
2. Brainstorming – allows
participants to share creative
ideas using the following rule;
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Time – one of the most critical
resources
3. Brainwriting or Internet
MOST IMPORTANT ELEMENTS PRESENT
Brainstorming – same as
IN A COMPELLING OPPORTUNITY
brainstorming but is not face-to-
face.
1. Has superior value to customers
4. Problem Inventory Analysis –
2. Solves a compelling problem,
participants are already given an
issue, a need, or a want
inventory of product or service
3. Is a potential cash cow
problems
4. Matches with the entrepreneur’s
skills, resources, and risk appetite
STEEPLED Analysis
Opportunity Attractiveness Test –
1. Sociocultural Factors – presents
aims to assist entrepreneurs in
general view of a locality’s
ensuring that the opportunity that
traditions, norms, and
they will venture into is an attractive
perceptions.
and feasible prospect
2. Technological Factors –
composed of innovations of an
S3 - Seizing the Opportunity
existing technology or an
• Opportunity Seizing –
invention of a new one
“pushing through” with the
3. Economic Factors – important
chosen opportunity
because it directly affect any
• Innovation – process of
business venture
positively improving an
4. Environmental or Ecological
existing product or service
Factors – entrepreneur will know if
the business will be suited with the
TYPES OF INNOVATIONS ACCORDING
weather conditions in his or her
TO THE DEGREE OF DISTINCTIVENESS
locality
5. Political Factors – induced by
1. Breakthrough Innovation – must
government policies and
be protected by a patent, a trade
administrations
secret, or a copyright
6. Legal Factors – government laws
2. Technological Innovation occur
and regulations that can restrict a
more frequently than
business activities
breakthrough innovations.
7. Ethical Factors –
Innovations of an existing
8. Demographic Factors
technological product or service
3. Ordinary Innovations – commonly
S2 – Screening the Opportunity
originating from market analysis.
• Opportunity Screening –
cautiously selecting the
best opportunity.
• Risk Appetite – tolerance of
business risks
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3. Highlight the value of your
product or service
4. Adapt to the language of your
PRODUCT OR SERVICE PLANNING AND
market
DEVELOPMENT PROCESS
5. Add credibility-enhancing
elements such as actual
1. Idea Stage – determines what are
testimonials from customers
the feasible products or services
6. Differentiate your VP with you
that will perfectly suit the
competitors
opportunity
2. Concept Stage – the developed
idea will undergo a consumer
Unique Selling Proposition (USP) –
acceptance test like initial
states how you will sell the product or
reactions
service
3. Product Development Stage –
actual service samples will be
VP AND USP SHOULD BE CLEARLY
given or rendered to the panel of
COMMUNICATED TO THE TARGET
potential customers
CYTOMERS IN THE CATCHIEST WAY
4. Test Marketing Stage – validates
POSSIBLE. THEY ARE CENTERED ON THE
the work done to measure
NEEDS OF CUSTOMERS.
success in the commercialization
of the product or service
Marketing Research –
5. Commercialization Stage –
comprehensive process of
“launch Stage”. Product now
understanding the customer’s
begun to be distributed and sold,
intricacies and the industry they
but on a limited basis
revolve in
Market Size – size of the arena where
THE MARKETING PLAN the entrepreneur’s business will play
• First Step – estimate the
Marketing Process – knowing the potential market. “market
customer, identifying their needs, space” or “ market universe”
and study what they want for you to • Second Step – eliminate the
build a meaningful value proposition customers who probably
unlikely to buy the product or
Value Proposition (VP) – states why a avail the service
customer should buy a certain • Third Step – estimate the
product or service market share

TIPS ON CREATING EFFECTIVE VP TO Market share illustration: There are

TARGET CUSTOMERS 500 families with an average of 5
members per family. An
1. Prepare a situation analysis that entrepreneur did a survey and found
details the problems of the out that 475 families eat rice. Thus,
customers has a bigger chance of capturing the
2. Make your VP straight to the point market share
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a. Loyalty – results of maintain
satisfied customers
b. Usage of products or
Customer Requirement – customers
Availment of Service – how
are lifeblood of the business. There
often a product is being
are specific features and
used or service is being
characteristics that the customers
availed
need from a product or service. For
example, some will prefer cheaper
Interview – most reliable and
prices or a bundled menu
credible way of getting relevant
information from target customers
Market Intelligence – includes
a. Unstructured Interview –
customer profiling, which drives
informal type of interview
entrepreneurs on what correct
and does not follow specific
strategies and tactics to employ
set of questions
b. Structured Interview –
Market Segmentation – grouping
employs specific questions
similar or homogenous customers
and produces quantitative
according to demographic,
data
psychographic, geographic, and
behavior.
CHALLENGES IN INTERVIEW
1. Demographic Segmentation /
• Setting an appointment with an
socioeconomic segmentation –
interviewee
process of grouping customers
• Respondent's indifference to how
according to relevant
they share their opinions
socioeconomic variables.
• Getting unbiased answers from
a. Occupation – determine the
the respondents
customer’s income
b. Gender and Age Group –
data that must be mined THE ENTREPRENEURIAL
c. Religion and Ethnicity PROCESS
2. Psychographic Segmentation –
grouping according to Value Proposition – states why
perceptions-process wherein an customer should buy a certain
individual receives external stimuli product or service.
using the five senses. Involves
customer’s preferences Unique Selling Proposition – how will
3. Geographic Segmentation – the product or service be sold to the
grouping according to their customers.
location
4. Behavioral Segmentation –
grouping according to their
actions
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1. Opportunity Spotting and
Assessment - Entrepreneurs take
note of the interesting trends in
HOW TO CREATE AN EFFECTIVE VALUE
their environment.
PROPOSITION TO YOUR CUSTOMERS?
2. Developing a Business Plan -
entrepreneurs should formulate a
business plan when they have
already spotted and assessed the
opportunities for a market.
3. Determining the Capital Needed -
calculating the resources needed
to establish the business.
4. Running the Business -
entrepreneur using the resources
HOW TO CREATE AN EFFECTIVE UNIQUE
allocated for the new venture
SELLING PROPOSITION TO YOUR
CUSTOMERS?
OPPORTUNITY SPOTTING AND
ASSESSMENT - most difficult part of
every task is to determine when and
how to start. Hence, this stage is
considered as the most difficult and
the most time consuming.
THE VALUE AND UNIQUE SELLING
3S of Opportunity Spotting
PROPOSITION OF A PRODUCT ARE
• Seeking the Opportunity - an
CENTERED ON THE NEEDS OF
entrepreneur must scan and
CUSTOMERS. THE VALUE AND UNIQUE
understand the firm’s
SELLING PROPOSITION OF AN OFFERING
environment
SHOULD STAND OUT AMIDST
• Screening the Opportunity -
COMPETITION.
Opportunity screening is the
process of cautiously
Market Size - Simply the size of the
selecting the best
arena where the entrepreneur’s
opportunity.
business will play.
• Seizing the Opportunity - The
Market Universe and Market Space -
“pushing through” with the
The approximate number of
chosen opportunity.
customers that will buy the product
or avail the service.
Environments
Market Share - The remaining portion
for the new venture.
1. Physical / Natural Environment -
houses the natural elements are
Entrepreneurial Process - step-by
inherent to Earth: Climate, Physical
step procedure in establishing any
resources and wildlife
kind of business that an entrepreneur
has to undergo.
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2. Weaknesses - Poor attributes or
deficiencies that give
disadvantages to the business
2. Societal Environment - Changes
3. Opportunities - Business
in the resource availability and
situations in the form of product
costs
or services that must be exploited
3. Industry Environment - external
because of their potential in terms
environment layer where the
of profit and growth
trends and changes are easily
4. Threats - Possible external events
and immediately felt by the
in the environment that may
businesses.
provide harm to the business
Pestel Analysis

1. Political Forces - Instability of the

Philippine government
2. Economic Forces - Highest
interest rates given by
commercial banks
3. Sociocultural Forces - Low level of
education among public school
graduates
4. Technological forces - Readily
FORCES COMPETITION MODEL
available internet and social
(PORTER’S FIVE) - model that
media
identifies and analyzes five
5. Ecological Forces - Abundant raw
competitive forces that shape every
materials
industry and helps determine an
6. Legal Forces - Frequently
industry's weaknesses and strengths.
changed tax laws
named after Harvard Business
School professor, Michael E. Porter.
PEST analysis to which disregards the
ecological and legal forces
1. Potential New Entrants – what will
STEEPLE Analysis to which ethics is an
be the challenges and threats if
additional factor.
you establish your business?
STEEPLED analysis is similar to S
2. Bargaining Powers of Buyers –
TEEPLE but with the addition of
what can you do to attract more
demographic factors.
customers?
3. Threat of Substitute Products -
Industry Analysis Scanning Tool
What can you do to make your
product stand out even there are
1. Strength - Strong attributes or
other similar product.
capabilities of the business that
4. Bargaining Powers of Suppliers –
provide great advantage in
how can you choose suppliers
exploiting the business
effectively?
opportunity
5. Rivalry Among Existing Firms
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GUIDELINES TO REMEMBER IN MAKING A
BUSINESS PLAN
After identifying the competitive
forces of the business venture, these
are plotted into the competitive
forces matrix, by which the
entrepreneur can view the total
perspective of the competition within
the industry where the business
operates.

COMPONENTS OF A BUSINESS PLAN

DEVELOPING A BUSINESS PLAN -

Business Plan is a comprehensive
paper that details the marketing,
operational, human resources,
financial, strategic direction, and
tactics of the business. The business
Many business owners avoid pre
plan will be the core guide and
paring a business plan because the
direction of the entrepreneur in
task seems too onerous or time
calculating the resources needed,
consuming. This is a mistake and one
assessing how to obtain these
of the most common cause s of
resources efficiently, and running the
business failure is poor planning.
business sustainably
There is no evidence that preparing a
plan for your business is going to be
IMPORTANT REASONS FOR HAVING A
an entirely painless activity, but it is a
PLAN
vital one in terms of maximizing your
chances for success.
1. The plan is your roadmap
2. The plan is necessary for investors
DETERMINING THE CAPITAL NEEDED -
/ lenders
Calculate the resources needed to
3. The plan can help you track
establish the business and compare
progress
this against the entrepreneur’s
4. The plan tests the feasibility of
current resources.
your business idea
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Executive Summary – highlights of
the business plan summarized in two
or three pages. Must stimulate the
Caution must be applied in
interest of its reader, especially if he
computing the complete set of
or she is a potential investor
resources needed and include only
those items that are considered as
Company Name / Brand Name –
the real needs in the venture
creation. Allowance must be
considered as well because there will
be times that re sources will be
inadequate or unsuitable

RUNNING THE BUSINESS - part where

the entrepreneur should use the
BRAND NAME VS LOGO – brand name
resources allocated for the new
will stay but logos do often change.
venture. The business plan prepared
Even when you change the logo,
in step 2 should already have been
people will be able to identify your
implemented. All aspects of the
business by its name. Having a good
business plan should be critically
brand name allows your business to
observed from operations, marketing
grow its roots in your business. Also,
and sales, human resources, finance,
both the company’s brand name
and strategy implementation. The
and reputation go together
entrepreneur should have a control
and monitoring system to serve as a
Mission Statement – written
check and balance of the formulated
declaration of an organization’s
plans
purpose and focus. In Alfred Marcus’
Management Strategy, he briefly
INTRODUCTION AND defines the mission statement as
THE EXECUTIVE SUMMARY statement of the basic purpose and
scope of the organization’s
Introductory Page – cover page operations
provides a brief summary of the • Statement of Purpose –
business plan’s content motivation why something is
done or why something
CONTENT OF INTRODUCTORY PAGE exists. It is the reason you
exist
• Statement of Focus – what
the center of interest or
attention is. This may be a
service or a product or goals
and objectives
• Statement of Transparency
– revolves around clarity,
sheerness. Obviousness, and
truth
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Vision is something that we set our
sights to. It is what we want to
achieve. Often, the vision statement
Openly declared so as not to
is worded to inspire the reader to go
cause ambiguity or confusion
for the gold. They are time-bound. It
for members of your
is always linked to the mission
organization and people
statement. Sometimes called as
outside
mission-vision statement
• Statement of Direction - by
knowing who you are now,
GOAL STATEMENT – goal is a general
you can set your mark and
statement of what you want to
plan for a future. This is
achieve. Goal is a milestone in the
where you begin and from
process of implementing a strategy
here you will know where
• Examples:
and how to move forward

Mission statement answers these

questions:

GOALS ARE FOCUSED ON THE

IMPORTANT ASPECTS OF
IMPLEMENTING THE STRATEGY. BE
CAREFUL NOT TO SET TOO MANY
GOALS OR YOU MAY RUN THE RISK OF
LOSING FOCUS. ALSO, DESIGN YOUR
GOALS SO THAT THEY DON’T
CONTRADICT AND INTERFERE WITH
EACH OTHER
A GREAT MISSION STATEMENT SHOULD
CONTAIN 4 KEY ELEMENTS: VALUE,
INSPIRATION, PLAUSIBILITY, AND
SPECIFICITY. THESE ARE MUST-HAVES
FOR BUSINESS TO COME UP WITH
MISSION STATEMENTS THAT SERVER A
REAL PURPOSE
MOST COMPANIES NAGBABAGO ANG
Vision Statement –In Alfred Marcus’
GOAL EVERY 5 YEARS BECAUSE
Management Strategy, vision as the
DEMAND AND TREND IS NOT STAGNANT
direction where the company would
like to go and what it would like to be
good in the future
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• Examples:

LEGAL STRUCTURE OF THE BUSINESS

Sole Proprietorship – single

Trading – business engaged in the
proprietorship, is a business owned
buying and selling of products. Its
by one person. Business registration
revenues are primarily derived from
for sole proprietorship starts with the
the profit it adds to the cost of goods
business name registration with the
it sells to the consumers
Department of Trade and Industry
• Examples:
(DTI).
Partnership – contract between two
or more people who bind themselves
together to contribute money,
Manufacturing – engaged in
property, and industry (expertise
designing products, aggregating
tulad ng pagiging engr mo, etc.) to a
components and assembling
common fund, with the intention of
finished products
dividing profit among themselves
• Examples:
(Article 1756 of the Civil Code of the
Philippines)

PAG NAMATAY ANG OWNER/S SA SOLE

Financial – business is involved in
PROPRIETORSHIP AT PARTNERSHIP
receiving deposits, lending and
(KAHIT ISA LANG), DISSOLVE NA AGAD
investing money
ANG BUSINESS
• Examples:
Corporation – an artificial being
created by the operation of law,
having the rights of succession and
Insurance – business is involved in
the power’s attributes and properties
pooling premiums of many clients to
expressly authorized by law or
meet and pay the claims of a few
incident to its existence (Batas
• Examples:
Pambansa 68 or the Corporation
Code of the Philippines). Pag may
namatay, hindi mabubuwag ang
business
Infrastructure – engaged in buying
and operating assets, selling
NATURE OF BUSINESS
occupancy in combination with
services
1. Servicing – primary product of this
• Examples:
business is service. This business
renders services to clients by
selling people’s time in exchange
for a fee
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