Subject: Entrepreneurship

Governor Pack Road, Baguio City, Philippines 2600

Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786; Grade Level/Section: HE 12 A and B
442-2564; 442-8219; 442-8256; Fax No.: 442-6268
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 2: Developing a Business Plan

Subject Teacher: TVL-HE Teachers
(Recognize a Potential Market)

Information Sheet LO 1.2

RECOGNIZING THE POTENTIAL MARKET

As the saying goes, the most difficult part of every task is where and how you start. The same is true with
entrepreneurship. You may have all resources needed to operate a new venture, but it will never be easy to start one.

This module will discuss the proper and efficient ways to starting a business. You will be introduced to the entrepreneurial
process, which starts with identifying and evaluating the opportunity. The heart of this module is the scanning of the
marketing environment where you can formulate a product or service solution applying the techniques of seeking,
screening, and seizing opportunities. As a result, you will deal with analyzing the need of the market, think of the potential
set of products or services that will meet the need, assess the feasibility of the solution, and select the best product or
service that will address the need.

CONTENT

THE ENTREPRENEURIAL PROCESS

The entrepreneurial process is a step-by-step procedure in establishing any kind of business that an entrepreneur must
undergo. It is composed of four aspects.

1. Opportunity Spotting and Assessment.

This is the beginning of the process and is considered the most difficult. Entrepreneurs at this point take note of
interesting trends in their environment. Consumers are reliable sources of opportunity information because market
needs originate from them. Other major sources of opportunity are the glaring problems in the environment,
problems encountered by coentrepreneurs, new trends, processes, and developments in the environment. Other
minor sources are feedback from distribution or business partners such as retailers, wholesalers, manufacturers,
and technical people that the entrepreneur is working with. The entrepreneur’s toughest job is to carefully assess
the opportunity through estimation of opportunity length, capitalization required, threats, profitability, and
calculation of real and perceived value. Entrepreneurs should also assess if the opportunity is aligned with their
personal goals and attributes. Last, entrepreneurs should already 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.

Entrepreneurs should formulate a business plan when they have already spotted and assessed the opportunities for
a market. A business plan is a comprehensive paper that details the marketing, operational, human resource,
financial, strategic direction, and tactics of the business. The business plan will be the core guide and direction of
the entrepreneur in calculating the resources needed, assessing how to obtain these resources efficiently, and
running the business sustainably.

3. Determining the Capital Needs.

A big idea can never be translated into reality if the entrepreneur’s resources are limited. Therefore, it is
mandatory in the entrepreneurial process to calculate the resources needed to establish the business and compare
this against the entrepreneur’s current resources. Caution must be applied in computing the complete set of
resources needed and include only those items that are considered as the real needs in venture creation. Allowance
must be considered as well because there will be times that resources will be inadequate or unsuitable.

4. Running the Business.

This is the part where the entrepreneur should use the resources allocated for the new venture. The business plan
prepared in step 2 should already have been implemented. All aspects of the business plan should be critically

1 Entrepreneurship
 Subject: Entrepreneurship

Governor Pack Road, Baguio City, Philippines 2600

Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786; Grade Level/Section: HE 12 A and B
442-2564; 442-8219; 442-8256; Fax No.: 442-6268
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 2: Developing a Business Plan

Subject Teacher: TVL-HE Teachers
(Recognize a Potential Market)
observed from operations, marketing and sales, human resources, finance, and strategy implementation. The
entrepreneur should have a control and monitoring system to serve as a check and balance of the formulated
plans.

To summarize the components and steps in the entrepreneurial process, let’s see the following table (Hisrich, 2010).

Determining the
Opportunity Spotting and Developing a Business
Capital Needed Running the Business
Assessment Plan

Evaluate the identified Come up with a business Calculate the intrinsic Practice leadership as a way
opportunity description and extrinsic capital needed of life
and analysis

Conceptualize and measure Perform industry analysis Calculate the existing Recognize critical success
the capital factors
opportunity

Identify the perceived value Come up with the marketing Calculate the difference Identify existing and
of the plan between the needed capital foreseeable problems and
opportunity to the company and the existing capital. issues
and the Choose the most cost-
customers efficient suppliers or service
providers.

Do cost-benefit analysis Prepare the operations plan Develop contact and Employ risk-mitigating
of the opportunity including the organizational relationship with suppliers controls and monitoring
including plan and service providers systems
risk analysis

Match the opportunity with Come up with the financial Identify strategies and Devise an
the entrepreneur’s plan tactics expansion/sustainability
skills and objectives strategy

Scan the strengths and Identify strategies and Perform monitoring and
weaknesses of tactics control
competitors

Perform monitoring
and control

OPPORTUNITY SEEKING, OPPORTUNITY SCREENING, OPPORTUNITY SEIZING

The 3S of opportunity spotting and assessment is the framework that most of the promising entrepreneurs use to
finally come up with the ultimate product or service suited for a specific opportunity. An opportunity is an entrepreneur’s
business idea that can potentially become a commercial product or service in the future. The entrepreneur serves as the
catalyst of creating a value for the customers through the new or innovated product or service. As a reward, the
entrepreneur earns profits when the customers are satisfied and delighted.

2 Entrepreneurship
 Subject: Entrepreneurship

Governor Pack Road, Baguio City, Philippines 2600

Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786; Grade Level/Section: HE 12 A and B
442-2564; 442-8219; 442-8256; Fax No.: 442-6268
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 2: Developing a Business Plan

Subject Teacher: TVL-HE Teachers
(Recognize a Potential Market)
Entrepreneurs are innovative opportunity seekers. They have endless curiosity to discover or different ideas and see
whether these ideas will work in the marketplace. This is what separates entrepreneurs from the ordinary businessman
whose main objective is simply to earn profits from producing, buying, and selling goods.

Entrepreneurs create value by introducing new products or services or finding better ways of making them. These may
include innovation in terms of product design or addition of new product features to existing ones. They may also tinker
on improving their operational capability by employing new technologies that will bring them greater efficiency, better
economies, and even enable them to reach unparalleled superiority. They may also consider expanding their reach by
creating new markets or maximizing existing market reach. At the highest level, entrepreneurs may totally change the
prevailing business paradigm by rendering it obsolete through the introduction of disruptive technologies, processes, and
systems.

The Many Sources of Opportunities

The Opportunity Seeking is the first step and is the most difficult process of all due to the number of options that
the entrepreneur will have to choose from. It involves development of new ideas from various sources as follows:

1. Macro Environmental Sources of Opportunities

The macro environment refers to the “big or macro forces” that affect the area, the industry, and the market,
which the enterprise belongs to. They influence how business should be conducted, how consumers will behave,
how supply and demand will move, how different competitors would position themselves, and how the cost of
doing business will proceed.

The macro environment forces can be divided into five categories composed of the Social, Political, Economic,
Ecological, and Technological dimensions or SPEET. The macro environmental forces create their own
opportunities for the enterprise to exploit, and their own threats for the enterprise to counteract.

➢ Socio-Cultural Environment
The socio-cultural environment includes he demographics and cultural dimensions that govern the relevant
entrepreneurial endeavor. Taking this aspect into consideration helps the entrepreneur assess the trends and
dynamics of the bigger consumer population, their beliefs, tastes, customs, and traditions. It looks at social
structure and shifts in social status and behavior.

➢ Political Environment
The political environment defines the governance system of the country or the local area of business. It
includes all the laws, rules, and regulations that govern business practices as well as the permits, approvals,
and licenses necessary to operate the business. Specifically, it regulates the use of natural resources; the
disposal of wastes; the taxation of income; the importation of goods and services; the accounting and
reporting of business financial statements; public and private education; health programs; use of public
funds; and other such concerns. It includes the establishment of vital infrastructures, logistical access, and
interventions that affect the cost of doing business. These factors are important influencers in evaluating the
attractiveness of any political domain where the entrepreneur intends to locate and do business in.

➢ Economic Environment
Supply and demand forces mainly drive the macro economic environment. They are the same factors that
drive the interest and foreign exchange rates that fluctuate with the movement of the market forces. In any
country, the income levels and the purchasing power of its people as well as the competitiveness (or
uncompetitiveness) of its industries and enterprises are sources of opportunities. However, in any
opportunity, there is always a threat that lurks behind it. In this case, the entrepreneur must be able to think
critically through each and every single economic event that impacts his or her enterprise. For example, a
very fast-growing demand for housing may lead to the overbuilding of houses. This threat is what house
financing institutions are afraid of.

3 Entrepreneurship
 Subject: Entrepreneurship

Governor Pack Road, Baguio City, Philippines 2600

Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786; Grade Level/Section: HE 12 A and B
442-2564; 442-8219; 442-8256; Fax No.: 442-6268
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 2: Developing a Business Plan

Subject Teacher: TVL-HE Teachers
(Recognize a Potential Market)
➢ Ecological Environment
The ecological environment includes all natural resources and the ecosystem, habitat of men, animals,
plants, and minerals. There is a growing awareness in the world today that will make this factor more and
more important for countries, industries, and businesses.

The threats of ecological degradation have generated countless opportunities such as smoke and spill
detectors, filters and screens, pollution counters, and energy-saving devices. Opportunities abound for
greener, cleaner, and healthier products, whose objective are to save the planet and prolong lives.

➢ Technological Environment
New scientific and technological discoveries, which often lead to launch and commercialization of new
products with superior attributes or to rendering the old ones obsolete, are the entrepreneur’s nightmares. In
such cases, the entrepreneur is left with no choice but to invest in new technologies in order to keep up with
competition. Technology does not only come in the form of advanced machinery or equipment, but it can
also be in the form of new systems, new processes, or new products.

Table 2.1 shows examples of opportunities and threats that are present within the macro environment of a
fast-growing fast food chain offering chicken meals and other Filipino favorites.

Table 2.1. Examples of Relevant Opportunities and Threats to a Fast-Food Chain

Opportunities to the
Factors Enterprise Threats to the Enterprise

1. Social
• Increasing double income • Increased customer base for
earners in the family (i.e., the fast-food
mother and father are both chain
working)
• Trend toward healthier food
choices • Healthier product offerings
are
demanded by customers

2. Political
• Tax exemption for 13th month • Increased purchasing power of
pay and other bonuses up to the consumers leading to
Ᵽ70,000.00 passed by Congress higher retail sales

3. Economic Smaller
• ASEAN Integration in 2015 • Opportunity for the enterprise • suppliers’
difficulty
(countries that belong to ASEAN to expand to other ASEAN coping with
trading at zero tariff) markets greater competition
posed by foreign rivals; might
reliable
lose small but

4. Ecological •
• Increased usage of eco bags and • Opportunity to start an Additional costs incurred by
environmentfriendly containers advocacy toward a new packaging may decrease
‘greener’ operation profitability
(not limited to usage of eco-
friendly
containers/packaging)

4 Entrepreneurship
 Subject: Entrepreneurship

Governor Pack Road, Baguio City, Philippines 2600

Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786; Grade Level/Section: HE 12 A and B
442-2564; 442-8219; 442-8256; Fax No.: 442-6268
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 2: Developing a Business Plan

Subject Teacher: TVL-HE Teachers
(Recognize a Potential Market)
5. Technological
• Increased usage of smartphone • Greater usage of apps •
to disseminate important to place delivery orders Potential for online
information (e.g., news, weather, via smartphones, which customer
traffic updates) may help increase disappointments and
market reach netizen bashing due to
poor product/ service
delivery brought about
by intermittent technical
glitches

2. Industry Sources of Opportunities

After the macro environment, the next biggest sources of opportunities are the industry and the market. One of
the most difficult aspects about industry analysis is defining what constitutes an industry in the first place. The
proper classification of what industry the enterprise is competing in is important if the entrepreneur’s intention is
to define who are the relevant customers, who are the direct and indirect competitors, and what are the critical
characteristics of the market as to the quality of products or services to be delivered.

Participants in an industry include:

➢ Rivals or competitors in a particular type of business (e.g., Jollibee vs. McDonald’s, CocaCola vs. Pepsi,
Samsung Galaxy vs. Apple’s iPhone, etc.). True rivals or competitors are those competing for the same or
similar markets.

➢ Suppliers of input (e.g., fuel, electricity, raw, materials) to rivals as well as suppliers of machinery and
equipment, suppliers of manpower and expertise, and supplies of merchandise.

➢ Consumer market segments being served by rivals or competitors.

➢ Substitute products or services, which customers shift or turn to.

➢ All other support and enabling industries.

After identifying the participants, it would help the entrepreneur to determine the logic of the industry. How do
these participants in the industry make or lose money? What critical factors drive the industry’s success? What
critical lead to failures?

A thorough analysis of industry structure and dynamics yields opportunities for the clever entrepreneur. Situating
his or her enterprise within the realm of an industry provides may profitable opportunities for the entrepreneur.

There are several ways defining an industry. The most common way of defining an industry is according to
product types according to the functions of the product or service. Classic examples of these industries include
the computer industry (Microsoft vs. Apple), beer industry (San Miguel Beer vs. Beer na Beer), fast food
industry (McDonald’s vs. Jollibee), and cola industry (Coca-Cola vs. Pepsi Cola).

Another way of defining an industry is by tracing the industry from its most basic raw material down to its
various consumer applications, otherwise known as product or value-added chain.
The difference between the product and value-added chain is the focus of the analysis. Product chain focuses on
the volume produced or converted at each ink of the chain.
5 Entrepreneurship
 Subject: Entrepreneurship

Governor Pack Road, Baguio City, Philippines 2600

Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786; Grade Level/Section: HE 12 A and B
442-2564; 442-8219; 442-8256; Fax No.: 442-6268
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 2: Developing a Business Plan

Subject Teacher: TVL-HE Teachers
(Recognize a Potential Market)

To illustrate the tracing of a product chain, a good example would be the coconut industry. The coconut tree,
regarded as the ‘tree of lie,’ is useful for different purposes. Its trunk, shell, meat, husk, and leaves find their way
to all types of products such as oils, soap, handicraft, oleo chemicals, furniture, wallboards, coir, etc. Looking at
this value chain alone presents many potential opportunities for the entrepreneur.

However, defining an industry with a narrow scope presents a threat because of its limiting effect. For example,
to simply classify all those using coconuts in their production process as being in the coconut industry per se
might not be too useful. The reason is that most of the coconuts harvested are processed into coconut oil, which is
just one of the many substitutes in the fats and vegetable oil industry traded worldwide.

The value-added chain follows the product chain but concentrates on the ‘value’ added from one stage of the
product to the other-a value that is given by the market price differential between stages of production. The
differential would include the additional costs of processing the product form one stage to the next and the profit
margins added on each stage by the processor (or distributor). A good example of the value-added chain would
be a cup of designer coffee. At farm gate prices, one would get a few pesos out of a bag of freshly picked coffee
beans. The coffee beans will then get processed and packaged by the coffee manufacturer. Cost and profit
margins are added before selling the product by the coffee manufacturer. Cost and profit margins are added
before selling the products to distributors. Once it gets in the hands of the distributors, the latter will have to
market and sell the finished product to coffee shops for a few more pesos added to cover for the logistical and
transportation costs incurred. The coffee shops will then proceed to concoct their own versions of designer
coffees. The fancier the coffee gets, the more expensive a cup of designer coffee becomes.

The entrepreneur may discover weak links in the chain that need strengthening or gaps and weaknesses but
in assailing the strongest links where there may be a concentration of bargaining power. In this case, the
entrepreneur should determine which players produce the most volume of goods, which ones control the flow of
those goods, which ones make the most profits, and which ones to push the most volume through the market
channels all the way to the final customers. These processes may uncover strategic opportunities for industry
intervention.

The entrepreneur should always be alert in detecting windows of opportunities emanating from shifts in the
industry power equation or changes in the industry rules of the game.

3. Market Sources of Opportunities

The entrepreneur must also be able to measure the actual demand and supply as well as the potential demand and
supply of the industry that the enterprise belongs to. Equally important is the monitoring of the prevalence of
product substitutes and their market impact on the existing players in the industry. Lastly, market traits,
characteristics, and behavior are identified to match these customer traits with the product offerings of the
enterprise.

Market sources of opportunities can be discovered from increased or decreased demand as well as higher or
lower supply. An Example of this is the battle of the value/Combo meals, otherwise known as “more-for-less”
strategy in the fast-food restaurant industry.

The demand for more affordable but filling meal is continuously growing particularly for the working population.
This, in turn, creates an increased demand in the items that come with the value/combo meal such as rice,
chicken, pasta, sidings and beverage drink. Although smaller in portions, the volume served is more, particularly
during peak hours (lunch and dinner). It also opens the opportunity of offering breakfast items and strengthening
this time-of-the-day segment.

6 Entrepreneurship
 Subject: Entrepreneurship

Governor Pack Road, Baguio City, Philippines 2600

Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786; Grade Level/Section: HE 12 A and B
442-2564; 442-8219; 442-8256; Fax No.: 442-6268
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 2: Developing a Business Plan

Subject Teacher: TVL-HE Teachers
(Recognize a Potential Market)
More and more consumers are resorting to having their breakfast near their workplaces or along the way to work
to avoid getting stuck in the rush hour traffic. However, the threat of price war remains strong such that the
industry players are compelled to strengthen their supply chain for better leverage.

4. Micro Market

Micro market refers to the specific target market segment of a particular enterprise. These are the target
customers that represent the immediate customers of an enterprise, meaning those who are currently buying the
goods or services offered by the enterprise and its direct competitors. It likewise pertains to a clearly defined
location or specific customer group that an enterprise wishes to serve.

The need for segmentation would be crucial in micro market analysis because the definition of value for money
differs from group to group. If they do not differ, then the entrepreneur of value for money differs from group to
group. If they do not differ, then the entrepreneur is better off by aggrupation rather than segmenting. For
example, the Makati office crown would indicate several choices where to eat. Observing the behavior of
customers during lunch would indicate what groups of customers prefer fast food establishments, would group
brings their own pack lunches, and what group goes for casual dining. Several opportunities can be spotted by the
entrepreneur, such as opening a new food outlet of offering food delivery services to a particular office crowd.

a. Consumer Preferences, Interests, and Perception

These are the current needs and wants of potential customers that should be discovered right away by a
budding entrepreneur. This way, he or she will be able to take a chance of the opportunity. A need is
recognized when a customer believes that there is a difference between his or her current situation versus his
or her desired condition. A want, on the other hand, is recognized when a customer believes that there is a
specific product or service that can perfectly suit the need.

b. Competitors
Recognizing and understanding potential competitors will aid the entrepreneur to develop a product or
service that is unique and will surely stand out from the competition. The 4Ps of marketing (product, place,
price, and promotion) will be competitively positioned if the entrepreneur is familiar with his or her
competitors.

c. Unexpected Opportunities from Customers

Oftentimes, the most brilliant ventures come from the most unexpected opportunities. It may happen in
unlikely situations, unlikely places, and with unlikely people. Existing problems and bottlenecks often give
rise to an unexpected opportunity. What entrepreneurs usually do is be on top of the situation and change the
market’s perception of a product or service or build a new market. In the Philippines, there are several
budding social entrepreneurs who turned unnoticed products into superstar products that also carry the value
of social responsibility.

d. Talents, Hobbies, Skills, and Expertise

Business opportunities do not just come from outside forces, but also from within the entrepreneur. The
entrepreneur’s talents, hobbies, skills, or expertise can be a source of business opportunity. For example, if
the entrepreneur is an artist, why not sell his or her paintings? If he or she is a musician, why not put-up a bar
and perform there? If he or she is an expert in home interior design, why not make it a business?

e. Irritants in the Marketplace such as Deterrents, Problems, Complaints, and Delays

Generally, entrepreneurs see opportunities in situations where there is a recurring problem or sometimes
when there is no more hope in solving problem. When customers are already sick and tired of the same old
issue or problem, that is when the opportunistic entrepreneur should come in and make a difference.

7 Entrepreneurship
 Subject: Entrepreneurship

Governor Pack Road, Baguio City, Philippines 2600

Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786; Grade Level/Section: HE 12 A and B
442-2564; 442-8219; 442-8256; Fax No.: 442-6268
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 2: Developing a Business Plan

Subject Teacher: TVL-HE Teachers
(Recognize a Potential Market)
f. Location
Often, entrepreneurs just must look at their ecosystem and they will be able to spot a business opportunity
right away. For example, if the entrepreneur’s location has many schools, then a restaurant, an eatery, or
probably a computer shop might be a good business to establish. If the entrepreneur is in an island with an
awesome beachfront, why not put up a hotel?

5. Other Sources of Opportunities

As an opportunity seeker, the entrepreneur will surely discover other sources of opportunities. Unexpected
successes (or failures) can lead to good opportunities.

Another potential source of opportunity is the entrepreneur’s own set of skills or expertise, or hobby. New
knowledge as well as new technology can be source of highly innovative opportunities.

1. Customer preferences change over time.

Example:
The prevalence of sugar-free products is now becoming the new normal, particularly to products that used
to be sugar-full like soft drinks and desserts. Cola manufacturers have long introduced their respective
sugar-free cola drinks as healthier alternatives to their regular cola drinks. This caters to the health-
conscious consumers who have shifted due to fear of obesity and diabetes.

2. People’s tastes in clothes, music, shoes, entertainment, dance, sports, hobbies, and even careers have
evolved over the years.

Example:
The 1980s could be best described as the era gave birth to music television or MTV. This era was all about
image that went with popular artists at that time such as Michael Jackson and Madonna. These artists had
become iconic because of their talent, fashion styles, and persona, which defines the 80s decade. Hip hop,
new wave, and hair metal were the musical genre that emerged.

3. What piques customers is a great source of opportunities.

Example:
Government-related services are now made more available to the public because they have opened up
satellite offices in major malls. Before, people had no choice but to go to the main office, line up for hours,
to apply or renew their licenses, clearances, passports, etc. Now, with these satellite services closer to the
public, more people are encouraged to transact with these government agencies because it has become more
convenient.

4. Before the customer is won over, there is first battle for the mind. Next, there is a battle for the heart.
Finally, there is a battle for the wallet.

Example:
When the new smartphones came out, customers were being convinced by the different competitors on what
was the nest choice to make. This is the battle for my mind. When customers got attracted to the features and
brand image of one competitor, it had won the battle of the heart. Finally, when customers lined up to buy
their preferred smartphone, the competitor had won the battle for the wallet.

5. The longer the customer wants to use the product, the greater the chances of creating lasting loyalty.

8 Entrepreneurship
 Subject: Entrepreneurship

Governor Pack Road, Baguio City, Philippines 2600

Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786; Grade Level/Section: HE 12 A and B
442-2564; 442-8219; 442-8256; Fax No.: 442-6268
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 2: Developing a Business Plan

Subject Teacher: TVL-HE Teachers
(Recognize a Potential Market)
Example:
Among Filipinos, there is the old adage of “nakasanayan na” (got used to it) Especially when it comes to
loyalty to certain products. This is true in the case of Jollibee, which has captured the hearts of the Filipinos.
Jollibee has been so successful due to the “Filipino taste” of their products such as its spaghetti, which is a
little sweeter than many of its Italian counterpart. Kids gout used to the taste of Jollibee spaghetti and
became repeat customers over and over again.

6. Opportunities abound in shaping consumer perceptions or occupying spaces in their minds or places
in their hearts that have not yet been filled.

Example:
A television commercial of a supplementary drink for diabetics instills ‘fear of death’ in the minds and
hearts of its potential consumers. The product is meant to aid in controlling the blood sugar level of
diabetics, together with the proper diet and healthy lifestyle. The commercial ad instills feat that shapes the
consumer’s perception about what is good or bad to drink.

7. New inventions, new systems and work processes, new insights about the human psyche, new
applications for old knowledge, new revelations about how the physical world works, new
interpretations, new combinations based on the convergence of previous technologies, new outlooks
about new life should be led, and a host of other new things are tremendous sources of opportunities.

Example:
Due to the advancement of technology applied to the medical field, open surgery has become a thing of the
past when removing smaller cysts or tumors. This was made possible by the invention of laparoscopy, one of
the technological breakthroughs in medicine. Laparoscopy is a type of surgical procedure that allows
surgeons to access the inside of the abdomen and pelvis without having to make large incisions on the skin.
This is a go-to procedure for people who want to avoid the surgeon’s knife.

8. Determining personal preferences and competencies lay the foundation for a new business venture.

Example:
The mushrooming of culinary schools indicates the booming interest of students in pursuing their love for
cooking and/or baking. One of the career tracks offered by these culinary schools is enabling the student to
put up his or her own restaurant or pastry shop. Several weekend markets and food bazaars have also
opened up to showcase the talents of these young culinary students.

9. Unexpected occurrences in both the external and internal environment of the enterprise indicate that
significant changes are happening, and opportunities are sprouting.

Example:
Who would have thought that videos taken by closed-circuit televisions(CCTV) would make waves in the
news headlines as one of the best evidences in a crime? Installed practically everywhere, the use of CCTV’s
has created a tremendous opportunity for entrepreneurs, particularly those already engaged in the safety
and security industry. In fact, there are cities and municipalities that have already issued ordinances
requiring the installation of CCTVs before renewing or issuing business permits.

REFERENCES:

9 Entrepreneurship
 Subject: Entrepreneurship

Governor Pack Road, Baguio City, Philippines 2600

Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786; Grade Level/Section: HE 12 A and B
442-2564; 442-8219; 442-8256; Fax No.: 442-6268
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph

MODULE 2: Developing a Business Plan

Subject Teacher: TVL-HE Teachers
(Recognize a Potential Market)
DIWA Senior High School. Entrepreneurship 2016. DIWA Learning Systems Inc.

REX BOOKSTORE. Entrepreneurship 2016.

Entrepreneur and Entrepreneurship Definition (investopedia.com)

Entrepreneurship Aptitudes Test (psychtests.com)

Introduction to Entrepreneurship | Boundless Business (lumenlearning.com)

Chapter 1 – Introduction to Entrepreneurship – Entrepreneurship and Innovation Toolkit (usask.ca)

Introduction: Entrepreneurship | Encyclopedia.com

10 Entrepreneurship