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Chapter 1: Entrepreneurship

Questions/Main Notes/Examples/Definitions/Answers/Sentences
Ideas/Vocabulary

What is Entrepreneurship? What is Entrepreneurship?

Entrepreneurship – Comes from the French word “Entreprendre” meaning to

undertake/to manage; Pursue opportunities to cater to needs, launching and running a
business; The main goal of entrepreneurship is to gain profit; Process of designing,
launching, and running a new business, which typically begins as a small business,
such as a startup company, offering a product, process or service for sale or hire

What is an Entrepreneur? Entrepreneur – Person who organizes and manages an enterprise, especially a
business, usually with considerable initiative and risk

What is the Importance of Importance of the Course

the Entrepreneurship  Development of Managerial Capabilities
Course?  Creation of Organizations
 Improving Standard of Living – Entrepreneurship can lift up the economic
status of an individual
 Means of Economic Development (Higher Tax) – Change global economic
What is the Importance of landscape; Strengthen the domestic economy by developing new industries and
Entrepreneurship in generate local employment for people
Education?
Importance of Entrepreneurship in Education
 Important to our economy as a key-driver – Learning never ends
 It is an individual lifelong learning process
 Energize school management – Profit of the canteen goes is invested for
academic equipment
 Transform learners to become innovators – Learn how to inventory (to know if
What are the Competencies you are gaining profit or not)
of Entrepreneurship?
Competencies of Entrepreneurship
 Locus of Control – Know how to decide (weigh pros and cons); Know how to
determine the state to which a person agreed and how their actions can directly
affect a situation, or control a result
 Specific Goal Setting – Easier to achieve; Motivated to set goals; Business
growth objectives have been found to increase firm growth resulted in the firm
performance and innovation
 Self-Efficacy – Believing in your ability; Persevere even in the event of a
setback; Take negative feedback more positively and use it to improve their
performance
 Aim/Need for Achievement – Outcomes; Grow business; High need for
achievement; Take responsibility for outcomes
What are the Different  Ambition – Key-driver for higher initiative; Entrepreneurs must be motivated,
Entrepreneurial Career Job persistent, and persevere even in the face of situational challenges
Opportunities  Willingness to Learn – Be open minded; Pursue opportunities to acquire new
skills and competencies
 Strong Initiative – Drive yourself to work hard; High initiative and often driven
to work hard
 Adaptability and Flexibility – Adjust; Often deal very well with a unique ability
to choose actions even without all necessary information
 Willingness to Take Risks – One of the best competencies; Know the
consequences of being a risk-taker; Willing to take consequences; Identify and
calculate risks
 Interpersonal Skills – Skills of working well with people from different
backgrounds

Entrepreneurial Career Job Opportunities

 1. Business Consultant – Provide advice about business issues
2. Management Analyst – Evaluate a business’ systems, procedures, and
operations; Review a business’ financial matters
3. Teacher – A graduate of entrepreneurship can use his knowledge in teaching
4. Sales – Need to know how businesses run; Represent a company, manage
accounts, and follow up on leads
5. Researcher – Understand business concepts, procedures, and practices
6. Business Reporter
7. Non-for-profit Fundraiser – Raise funds; Require understanding of business
and networking relationships
8. Intrapreneur – Inside entrepreneur; Entrepreneur within a large firm; Uses
entrepreneurial skills without incurring the risks associated with those activities

Summary

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Chapter 2: Parts of a Business Plan

Questions/Main Notes/Examples/Definitions/Answers/Sentences
Ideas/Vocabulary

What is a Business Plan? What is a Business Plan?

Business Plan – Written description of your business’s future; Tells what you plan to do
and how you plan to do it; Spells out various activities from production to distribution of
the product or service
 Helps determine whether a proposed or existing business venture is viable
given its target market
 Guides the entrepreneur in mobilizing the resources needed by the business
 Tool in helping get financing for the business

Parts of a Business Plan

What are the Parts of a 1. Cover Page – Name and address of the company with the logo; Name of the
Business Plan? entrepreneur and his contact information (telephone number, email address and
personal website, if available)
2. Executive Summary – Only accomplish when all other parts of the business
plan are already complete; Business logo, history, vision-mission, SWOT
analysis; Must stimulate the interest of its reader; Summarized everything;
Provides “information package” including the feasibility of the venture and the
distinctive business idea
3. Management/Operation Aspect – Type of organization (partnership will be
utilized in the subject); Operation period; Include organizational chart (members,
job description, qualification)
4. Marketing Aspect – Target market, product, supplier, strategy, pricing, location,
promotion, difference of the product to other products
5. Technical Aspect – General business condition, process chart (products,
services, materials/resources), service process
6. Financial Aspect – Source of finance, project cost, inventory
7. Socio-Economic – Benefits to the economy, to the government, to the
consumers, to the community, to the employees, and to the partners
8. Appendices – Product costing, curriculum vitae

Information Needs for Major Sectors of the Business Plan

What are the Information  Market Information Needs – General environmental trends; Specific industry
Needs for Major Sectors of trends; Local market conditions; Market potential; Demographic and/or
the Business Plan? psychographic profile of target market
 Operational Information Needs – Location, manufacturing or service
operations, equipment and/or furniture required; Space requirements; Labor
requirements; Raw materials needed and potential suppliers; Utilities
 Financial Information Needs – Rental rates; Cost of equipment; Cost of
 utilities; Personnel costs; Distribution costs; Cost of insurance; Registration and
license fees

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Chapter 3: Recognizing a Potential Market

Questions/Main Notes/Examples/Definitions/Answers/Sentences
Ideas/Vocabulary

How Can One Recognize a How Can One Recognize a Potential Market?
Potential Market?
Entrepreneurial Opportunities – Situations where products and services can be sold
at a price greater than the cost of their production; Situation where entrepreneurs can
take action to make a profit; Profit-making situations obviously exist; Exploiting market
imperfections
What Should be Considered  Analyze the need of the market
in Recognizing a Potential  Think of the potential set of products or services
Market?  Assess the feasibility of the solution
 Select the best product or services that will address the need

What is the Entrepreneurial The Entrepreneurial Process

Process?  Discovery – Entrepreneur generates ideas, recognizer opportunities, and
studies the market
 Concept Development – Stage in which the business idea is then transformed
into a business concept—the business plan
 Resourcing – Identify and acquire the financial, human and capital resources
needed for the conduct of business
 Actualization – Operate business and utilize resources to achieve its
goals/objectives
 Harvesting – Decide on business’s future growth/development, or demise

SWOT Analysis – Entrepreneurial tool in determining the profitability of the business

operation
 Internal Factors – Internal business environment includes factors within the
 organization that impact the approach and success of your operations
What is a SWOT Analysis? (Strengths and Weaknesses)
 External Factors – External environment consists of a variety of factors outside
your company doors that you typically don’t have much control over
(Opportunities and Threats)

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Chapter 4: Management and Operation Aspect

Questions/Main Notes/Examples/Definitions/Answers/Sentences
Ideas/Vocabulary

What is the Management What is the Management and Operation Aspect?

and Operation Aspect?
Management and Operation Aspect – Discuss how the business will be managed and
explain its operations; Includes type of organization, operation period, organizational
chart, and job descriptions and specifications

What are the Parts of the Parts of the Management and Operation Aspect
Management and Operation  Type of Organization – Sole proprietorship, partnership, cooperative,
Aspect? corporation
 Operation Period – How many hours and days the business will operate
 Organizational Chart – Background of the management team; Roles and
responsibilities of management team (job description and qualification)

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Chapter 5: Marketing Aspect

Questions/Main Notes/Examples/Definitions/Answers/Sentences
Ideas/Vocabulary

What is the Marketing What is the Marketing Aspect?

Aspect?
Marketing Aspect – Addresses the 4Ps (product, price, promotion, place); Addresses
how you will get people to buy your product or service in sufficient quantities to make
your business profitable; Competence and specifications that the business has as it is
introduced in the market; Discusses the target market, how the business will be
promoted, the business location, prices of the products, the products and its difference
to other products, the pricing strategy that will be employed, the demand, and the supply
analysis
 Product – What is the good or service that your business will offer? How is that
product better than the competition? Why will people buy it?
 Price – How much can you charge? How do you balance sales volume and
price to maximize income?
 Promotion – How will your product or service be positioned in the marketplace?
Will your product carry a premium image with a price to match? Will it be an
inexpensive, no-frills alternative to similar offerings from other businesses?
What type of advertising will you use? When will ads be run? Which channel will
let you economically reach your target audience?

What are the Parts of the Parts of the Marketing Aspect

Marketing Aspect?  Marketing Aspect – Who are your potential customers? Group of potential
customers to whom a business or company wants to sell its products and
services
 Promotion – How will you promote your business (Ex. social media, website,
flyers/tarpaulin, direct inviting, radio)
  Location – Where will your target market reach you or your products/services?
The right location will increase the chance of a business succeeding; Affects the
demand and the capacity of the supplies to reach the business; The right
location gives a company access to transport, labor, customers, and raw
materials
 Pricing – How much can you charge? How do you balance sales volume and
price to maximize income?
 Product/Service – What is the product or service that your business will offer?
 Direct Competitors – Who are your possible competitors along that
product/service? Competition exists in the market in terms of price, quality,
features, and offerings, etc. It is due to the presence of rivals that the price of
products in a particular industry fluctuates
 Difference of the Product from Other Products – How is that product better
than your competitors?
 Pricing Strategy
 Demand Analysis – Important consideration for a variety of business decisions
like determining sales forecasting, pricing products/services, marketing and
advertisement spending, manufacturing decisions, expansion planning etc.
Covers both future and retrospective analysis so that they can analyze the
demand better and understand the product/service’s past success and failure
too
 Supply – Where will you acquire the materials, ingredients, or equipment your
business needs?
 Target Market

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Chapter 6: Technical Aspect

Questions/Main Notes/Examples/Definitions/Answers/Sentences
Ideas/Vocabulary

What is the Technical What is the Technical Aspect?

Aspect?
Technical Aspect -- This component deals with how the product is made or the service
completed; when it is made or completed; type and number of materials and equipment
and number of people needed to make the product or complete the service; type and
amount of electricity, power and water to use; arrangement and location of machines,
work stations, storage and other areas; physical space and facilities; quality control
system; waste disposal system; and many more.
 General Business Conditions – Rules and conditions that shall be utilized in
the business (e.g., contracts, delivery, values, dos and don’ts, proper hygiene,
etc.)
 Plan Layout – It refers to the site of the business, and arrangement of facilities
and workstations.
 Process Chart – This is a step-by-step description of how the product is made
or the how service is completed.
 Service Process – How you will operate the service
 Materials and Equipment – These refers to the materials and equipment
necessary to make the product or complete the service.

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Chapter 7: Financial Aspect

Questions/Main Notes/Examples/Definitions/Answers/Sentences
Ideas/Vocabulary

What is the Financial What is the Financial Aspect?

Aspect?
Financial Aspect – This section is critical to any business plan. This component will let
you know how much you will need to put up the business, where you will get the money
to finance it, and keep it going.
 Source of Funding – It includes your sources of funds. The money may come
from your own pocket and from fellow owners of the business or equity
contributions, if any. It may also come from relatives, friends, banks or financial
institutions. External sources of funds are referred to as creditors.
 Project Cost – It is composed of items relating to the total fixed assets, the
working capital, and the pre-operating expenses.
o Fixed Assets – Land, building, vehicle and equipment.
o Working Capital – Refers to funds you need to pay for expenses
related to production, marketing, and organization within a short period
or until the revenues start coming and the business will be able to
finance its own operation.
o Pre-Operating Expenses – Consist of the fees you incur when you
register with the government and consultancy fees you pay to a
consultant or researcher who prepared the feasibility study.

Summary