Lessons on Applied Entrepreneurship His business gives him a living He gives life to his business

Week 1&2 Traditional Innovative and revolutionary

Entrepreneurship - is an integrated concept that permeates an individual’s Worried; Stay safe Excited; Risk taker
business in an innovative manner. Profit oriented People oriented
-A dynamic process of vision, change, and creation. Hire people to increase business Hire people to give them productivity
- The process of discovering new ways of combining resources. productivity
- The capacity and willingness to develop, organize and manage a business A market player A market leader
venture along with any of its risks in order to make a profit. The most obvious Has not yet achieved financial Has achieved financial freedom
example of entrepreneurship is the starting of a new business. freedom
Entrepreneur -is derived from the French entreprendre, meaning “to Only gives importance to a part of the Gives importance to the business
undertake.” business world (atomistic) world as a whole (holistic)
Entrepreneurship
This is an act of creating a business or businesses while building and Three Levels of Entrepreneurial Competencies
scaling it to generate a profit. It is an important driver of economic growth and 1. Personal competencies: creativity, determination, integrity, tenacity,
innovation. emotional balance and self-criticism.
Derived from the French word “entreprendre”, which means to 2. Interpersonal competencies: communication, engagement/charisma,
undertake. The enterprise is created by an entrepreneur and the process is delegation, respect.
called entrepreneurship. 3. Business competencies: business vision, resource management,
 What people do to take their career and dreams into their hands and networking, negotiating skills.
lead it in the direction of their own choice. It is about building a life on your Business Plan
own terms. No bosses! No restricting schedules! And no one holds you back! Business plans are written prior to setting up an enterprise, which are like a
(Batalla 2011). prefeasibility study and a feasibility study.
An entrepreneur is a person who sets up a business with the aim of making a Why Write a Business Plan?
profit and creating a new business, bearing most of the risks and enjoying most a. A business plan helps to evaluate the feasibility of a new business idea in
of the rewards. An innovator, a source of new ideas, goods, services, and an objective, critical, and unemotional way.
b. It provides an operating plan to assist in running the business and
business/or procedures. Playing a key role in any economy, using the skills and
improves probability of success.
initiative necessary to anticipate needs and bring good new ideas to market. Example: Identify opportunities and avoid mistakes; Develop production,
administrative, and marketing plans; and Create budgets and projections to
Businessman Entrepreneur show financial outcomes
A businessman is someone who sets An entrepreneur is a person who c. It communicates idea to others, serves as a “selling tool,” and provides
up a business with an existing idea starts an enterprise with a new idea the basis for your financing proposal.
offering products and services to the or concept, undertaking commercial Example: Determine the amount and type of financing needed; forecasts
customers. activities. profitability and investor return on investment; and forecasts cash flow, show
Starts a business from an existing Starts a business from his own liquidity and ability to repay debt.
idea or concept unique idea or concept Importance of Entrepreneurship
Has many business rivals His business rival is himself Entrepreneurship is very important to every nation for the following reasons:
Focuses on competition Focuses on cooperation 1. It generates/provides employment.
Is always busy on his business Is only busy in preparing his new 2. It helps in the economic growth of the country.
enterprise 3. It eradicates poverty.
Don’t have enough time for his family Have a lot of time for his family and 4. It improves our social image across the country.
and personal life personal life 5. Entrepreneurship generates new wealth in an economy.

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 6. Entrepreneurship decreases poverty.
7. It creates opportunities, ensures social justice, instills confidence and
stimulates the economy. Importance of Entrepreneurship
8. Entrepreneurship improves productivity. 1. Entrepreneurship generates new wealth in an
9. Entrepreneurs create jobs. economy.
10. Entrepreneurs innovate. 2. Entrepreneurship decreases poverty.
11. Entrepreneurs create innovation and social change. 3. It creates opportunities, ensures social justice, instills confidence and
12. Entrepreneurs give to society. stimulates the economy.
Factors Affecting Entrepreneurship 4. Entrepreneurship improves productivity.
1. Personality Factors 5. Entrepreneurs create jobs.
a. Initiative 6. Entrepreneurs innovate.
b. Proactive 7. Entrepreneurs create innovation and social change
c. Problem Solver 8. Entrepreneurs give to society.
d. Perseverance Lesson 1: The Potential Market and the Market Need
This module is written for you to accomplish at home. It is carefully designed so that
e. Persuasion you can work at your own pace and allow self-discovery of the concepts through
f. A Planner activities that you will perform. Activities are also selected to allow independent
g. Risk-Taker learning which aims to develop your reading comprehension skills through
understanding written texts. You may start your journey in learning about the
2. Environmental Factors potential market and the market need.
Common Competencies in Entrepreneurship The Potential Market
1. Decisive 1. Potential market is the part of the total population that has shown some level of interest in
2. Communicator buying a particular product or service. Potential market is also called Total Addressable Market
(TAM) (MBA Skool Team, 2018).
3. Leader 2. A potential market is the part of the market you can capture in the future. It includes the
4. Opportunity Seeker demographic groups that are not currently your customers but could become customers in the
5. Proactive future (Lake, L, 2019).
6. Risk Taker
3. Market potential is the total demand for a product in a given business environment (Bhasin,
7. Innovative
H., 2018).
Types of Entrepreneurs
1. Innovative Entrepreneurs. They are those who always make new The Importance of Potential Markets (Lake, L., 2019)
things by thinking of new ideas. Potential markets are an important part of a business's future growth. Ensure the
2. Imitating Entrepreneurs. They are those who don’t create new things future of your business by identifying new customers. Think proactively about ways for your
business to grow and change. Show the potential of your business to investors or
but only follow the ideas of other entrepreneurs. collaborators. Increase your revenue. Create a plan B that will weather changes in the
3. Fabian Entrepreneurs. They are sceptical about changes to be made in economy or market.
the organization. They don’t initiate but follow only after they are
How to Identify Your Potential Markets (Lake, L., 2019)
satisfied. Consider every target demographic that you currently sell to, as well as those you
4. Drone Entrepreneurs. They are those who lives on the labor of others. have not yet targeted. Identify what they have in common with each other, new milestones
They are die-hard conservatives even ready to suffer the loss of that they will encounter in their lives that will impact their buying patterns, and where they
overlap or diverge from your current customers.
business.
5. Social Entrepreneurs. They initiate changes and drive social For example, a business that makes face masks and PPEs could identify potential markets
innovation and transformation in the various fields such as education, such as:
health, human rights, environment and enterprise development.

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 • Hospitals and other health related industries whose employees are prone to COVID - 1. Need
19 virus and other viruses. This refers to the motivating force that compels action for its satisfaction. Needs
range from basic survival needs (common to all human beings) satisfied by necessities, to
• Business industries and other organizations who want to ensure the health condition cultural, intellectual, and social needs (varying from place to place and age group to age
of their employees. group) satisfied by necessaries (www.businessdictionary.com).
• Employees and workers who need to report to work to earn income.
• Households who needs to go out for their necessities. The need is a driver of human action which marketers try to identify, emphasize, and satisfy,
and around which promotional efforts are organized (www.businessdictionary.com).
Note: Depending on the size and age of your company, as well as your industry, you may have
a clear picture of the potential markets that are available. 2. Market
A market is a place where two parties can gather to facilitate the exchange of goods
and services. The parties involved are usually buyers and sellers. The market may be physical
Reaching Your Potential Market (Lake, L., 2019) like a retail outlet, where people meet face-to-face, or virtual like an online market, where
Once you've identified and chosen a potential market to begin targeting, you will there is no direct physical contact between buyers and sellers (Kenton, W. & Boyle, M., 2020).
need new marketing strategies in place to communicate with them. Use this profile to identify:
A market does not refer to a particular place but it refers to a market for a commodity
• The demographic information that people in a group have in common. or commodities. It refers to an arrangement whereby buyers and sellers come in close
• The best forms of media to reach them. contact with each other directly or indirectly to sell and buy goods (Shaikh, S., retrieved 2020).
• How they prefer to shop and make purchases.
A market is any place where sellers of particular goods or services can meet with
• The concerns, struggles, or problems that you can help them overcome. buyers of those goods and services. It creates the potential for a transaction to take place.
• What values matter to them, both in everyday life and when shopping. The buyers must have something they can offer in exchange for the product to create a
• The language that resonates with them. successful transaction (Moffatt, M., 2019) Your market consists of (Stull, C., Myers, P.& Scott
Available Market D.M. (2008) as cited in: https://learn.marsdd.com/):
These are prospects who are willing and capable (have sufficient resources) buyers
and have access to a particular market or service (www.businessdictionary.com). It is defined Existing customers: People who have already purchased your product.
as the number of people who are both willing and capable of buying a particular product or
service in a particular market (MBA Skool Team, 2020). Prospects: People who have not yet purchased your product but are considering it.

Target market users: People in your target market who are not currently looking for a
Target Market
solution.
This refers to a group of potential customers to whom a company wants to sell its
products and services. Target markets are generally categorized by age, location, income,
and lifestyle. Defining a specific target market allows a company to home in on specific market
Define the Market Need for Your New Business
factors to reach and connect with customers through sales and marketing efforts. (Kenton, W.,
2019). The market now demands that your business align to their needs. In order to
properly align your marketing efforts and your content, in particular to what buyers need, you
Penetrated Market have to have a clear understanding of the many intricacies, pains and pressures within your
This is a set of customers or clients who are already using a particular product or market. To achieve such alignment, you need the ability to define market patterns, needs,
service. A penetrated market means that the potential users of a product or service are interests, preferences, etc. for a comprehensive view of the buying process is critical.
aware of it, and in many cases are active consumers of it (www.businessdictionary.com). Below are ways to define your market (Lancaster SCORE (2010):
The size of a potential market helps a company understand the level of investment it  Consider whether the business offers a new solution to an old problem or
should make further in the market, while taking into consideration other factors. If the potential complements an emerging trend.
market is very small, it means there is a very small fraction of the total population showing  Have a clear picture of your target market.
any interest in the product or category. This means that it is better that the company doesn’t  Determine the benefits that your product or service offers.
invest further in the product or category because people won’t buy it. If the size of the  Examine industry data that can confirm whether there is a sustained, growing
potential market is large, it means that there is a huge fraction of the total population which is demand for your product or service.
showing interest in the product, so further investment can be made on the product  Identify the percentage of market share that it is realistic for you to capture.
development or modification, marketing, promotions etc. The size of the potential market
gives an estimate of what all a company should do and how much it should invest (MBA Skool Prepared by:
Team, 2018).
GUIA C. SISON, MBA
The Market Need

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Subject Teacher

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