ENTREPRENEURSHIP

Course Description: This course deals with the concepts, underlying principles, processes and
implementation of a business plan. The preliminaries of this course include the following:

1. Discussion on the relevance of the course.

2. Explanation of key concepts of common competencies.

3. Explanation of core competencies relative to the course.

4. Exploration of career opportunities.

Benefits of Entrepreneurship to students:

· Knowledge of business at an early stage.

· Thinking for a better future.

· Entrepreneurial education is relevant to all fields.

· Creation of job opportunities.

· Helps them to identify problems easily.

· They become self-employed.

· Create opportunities using the latest technologies.

· They become creative and innovative.

· Contributes to the economy of the country.

The usefulness of the course to the students:

· Develop skills in starting up a business.

· Demonstrates skills in maintaining a business on a long-term basis.

· Enhances knowledge of business operations and expansions.

· Demonstrate business management.

· Changes to becoming an employer rather than an employee.

· Changes in personal and career attitudes.

 INTRODUCTION TO ENTREPRENEURSHIP

Entrepreneurship

- is an integrated concept that permeates an individual’s business in an innovative manner.

- is also called problem solving.

Entrepreneur

- is derived from the French word entreprendre, meaning to “undertake”.

Societal and Economic Benefits of Entrepreneurship

1. Entrepreneurship produces more jobs that equate to an increase in national income.

2. Entrepreneurship amplifies the economic activities of different sectors of society.

3. Entrepreneurship introduces new and innovative products and services.

4. Entrepreneurship improves people’s living standards.

5. Entrepreneurship disperse the economic power and creates equality.

6. Entrepreneurship controls the local wealth and balances regional development.

7. Entrepreneurship reduces social conflicts and political unrest.

8. Entrepreneurship elicits economic independence and capital formation.

Common Competencies in Entrepreneurship

1. Proactive – they can immediately solve problem before it gets bigger

2. Agents of change

3. Risk takers

4. Have sharp eye for opportunities

5. Decisive – make a quick and right decision

6. Emotional Balance – balance his/her emotion

7. Innovative
Target Market

· Market refers to consumers, customers, and clients.

· Consumer – consume consumable goods

· Customer – avail services to non-professionals

· Clients – avail services to professionals

Revenue

· Total sales

· Retails after the deduction of operating costs and costs of sales

Calendar Period

· January 22 – December 22

Fiscal Year

· Starts with any month except January

· Example: March 22 – February 22

Core Competencies in Entrepreneurship

1. Leader

2. Communicator

3. Specialist

4. Problem solver

5. Management skills

Management skill include:

1. Planning and operations

2. Cash flow management

3. Personnel management

4. Operations and distributions

5. Customer relations
6. Bookkeeping and accounting

7. Promotions and advertising

8. Resource management

9. Financial management

10. Information management

Planning and Operations

· Essential part of management skills

· Serves as the blueprint of a business

· Diary and to do list are example of planning

Cash Flow Management

· Inputs – money, manpower, equipment, machinery, etc.

· Output – product

Personnel Management

· Staffing function of the management

Operations and Distributions

· Particular on a product

Supply Chain Management

· Focus on the flow of the product

· Processing – warehousing – delivering – storing – distribution channels – dealer –

wholesaler – retailer – end user: consumer

Types of Distribution Channels

1. Intensive – available anywhere

2. Exclusive – specific place

3. Selective – particular place

Customer Relations

· Focus: queries or concerns of a customer

· Customer service

Bookkeeping and Accounting

Bookkeeping

· Tracking down a valid transaction

· Report of financial transactions

· Diary of a business

· More on recording, it is only a part of accounting

Accounting

· Complex part of a business

· Accounting cycle: journalizing, posting, unadjusted, adjustment, income

statement

· Analyzing or interpreting financial data

· Financial Data Analysis

· Liquidity Ratio – capacity of a business to pay short term debts

Promotions and Advertising

· Focus: product

Resource Management

· The application of economic concepts

· Economics – allocate or utilize limited resources

Financial Management

· Focus: money

· The application of accounting

Information Management

· Data privacy

· Keeping the information of the client, supplier, business, etc.

Research and Development

·Brain of the Company

·Innovation Champion of the Company

Types of Entrepreneur

1. Technopreneur – focus: technology

2. Social Entrepreneur – focus: social issues

3. Intrapreneur – focus: research and development/brain of the company

4. Extrapreneur – focus: outside of the company/individual/freelancing

Five Levels of Entrepreneurial Development

1. The self-employed - kung papano mo binibigyan ng sweldo yung mga nagtatrabaho, ganun
din gagawin mo sa sarili mo

2. The manager - you need to recruit manpower cause no man is an island

3. The leader - “lead”, someone who is good at leading

4. The investor - a person that puts money into financial plans, property etc.

5. The true entrepreneur - a person who organizes and operates business or businesses,
taking on greater than normal financial risks in order to do so

Stock – means ownership

Stockholder – collective, to the group of shareholders

Shareholder – refers to the individual

Four Steps of Thinking

1. Idealization

• Dito cinoconsider lahat ng possible ideas at possible outcomes, planning

2. Visualization

• Napipicture mona kung paano mangyayari sa idea mo

• Alam mo ang mga target market mo

3. Verbalization

• Nag speak-up ka na about sa idea mo

4. Materialization

• Dito mo na iplaplano yung mga gagastusin mo ganun

Career Opportunities in Entrepreneurship

1. Business Consultant

2. Teacher

3. Researcher

4. Business Reporter

5. Sales

ENTREPRENEURIAL PROCESS

· It is a step-by-step procedure in establishing any kind of business that an entrepreneur has

to undergo.

· The entrepreneurial process of creating a new venture is presented in the diagram below.
(Aduana, 2017)

❖ An Entrepreneur has unending curiosity (hindi sila nauubusan ng questions)

 ENTREPRENEURIAL IDEAS

· Is a feasible, financially sound, technically possible, and socially acceptable idea of a project
or product that may have utility to prospective customers.

METHODS OF GENERATING IDEAS

· Brainstorming – is an activity that allows the participants to share creative ideas using the
following rules:

1. No destructive criticism or judgement is allowed

2. Wilder ideas are accepted

3. More ideas are preferred

4. Improvement of others’ ideas is allowed

· Brainlining – is the modern version of brainstorming. The word Brainlining is combination of

brainstorming and online, same as brainstorming the only difference is the absence of
physical or visual presence.

· Focused Group Discussion (FGD) – is a very open, free-flowing, and in-depth discussion
with a group of people who can provide insightful ideas about a new product or service that
will fill a market need.

· Problem Inventory Analysis – this method is similar to FGD except that the participants
are already given an inventory of product or service, the participants will just identify from
the list given the compelling problem/s of a potential product or service instead of generating
ideas from them.

The 3’s of Opportunity Spotting and Assessment (Entrepreneurial Mindset)

S1: Seeking of the Opportunity

· Opportunity Seeking – involves development of new ideas from various sources.

These are the basic foundation that the entrepreneur must have in seeking opportunities:

1. Entrepreneurial mind frame – this allows the entrepreneur to see things in a very positive
and optimistic way in the midst of difficult situations.

2. Entrepreneurial heart flame – is the great desire of an entrepreneur to achieve his/her

goals.

3. Entrepreneurial gut game – this refers to the ability of the entrepreneur of being intuitive.
Some are the following sources of opportunities:

Macro Environment:

1. The Physical environment includes climate, natural resources, wildlife.

2. The Societal environment includes the various forces like political, economic,
sociocultural, technological environment, legal, and ethical.

3. Technological discovery and advancement

4. Government’s thrust, programs, and policies

5. People’s interest

THE 3’S OF OPPORTUNITY SPOTTING AND ASSESSMENT

S1: Seeking the Opportunity
S2:Screening the Opportunity
S3: Seizing the Opportunity

S1: Seeking the Opportunity

● Opportunity Seeking - involves development of new ideas from various sources.

Some are the following sources of opportunities:

Macro Environment:

1. The Physical environment includes climate, natural resources, wildlife)

2. The Societal environment includes the various forces like:

2.1 Political Factors- include laws and regulations that either force a business to pursue
certain actions or prohibit it from taking certain actions.

Examples: Tax policy, government stability and freedom of the press

2.2 Economic Factors- are the factors that help to determine the competitiveness of the
environment in which the firm operates.

Examples: Interest rate, inflation, economic growth, exchange rate.

2.3 Legal Factors- are defined as law-related issues and proceedings that the owner of a
business must consider in order to run the business seamlessly.

Examples: Antitrust law, intellectual property rights, consumers rights and employment law
 2.4 Socio-cultural factors- are the larger scale forces within cultures and societies that affect
the thoughts, feelings and behaviors.

Examples: Social classes, reference group, religion, buying behavior and habits, demographic)

2.5 Technological Factors- are variables which relate to the existence, availability, and
development of technology.

Examples: Production techniques, information and communication resources, production,

logistics, marketing, and e-commerce technologies.

2.6 Ethical Factors- include respect, honesty, accountability, good communications and
responsibility.

Example: Corporate Social Responsibility (CSR)

Micro Environment:
1. The Industry environment of the business includes competitors, customers,
employees, creditors/suppliers and government.

2. Past experiences

3. Hobbies and personal interest

S2: Screening the opportunity

·
Opportunity Screening- is the process of cautiously selecting the best opportunity.
IMPORTANT ELEMENTS THAT ALWAYS PRESENT IN A COMPELLING OPPORTUNITY
1. Has a superior value to customers
2. Solves a compelling problem, issue, a need or a want.
3. A potential cash cow.
4. Matches the entrepreneur's skills, resources

OPPORTUNITY ATTRACTIVENESS TEST

-this test is designed to detail each entrepreneurial aspect into small chunks to come up
with a sound entrepreneurial decision.

S3: SEIZING THE OPPORTUNITY

· Opportunity Seizing- this is the pushing through with the chosen opportunity.·
 Innovation- is the process of positively improving an existing product or service.

TYPES OF INNOVATIONS

1. Breakthrough innovation- these establish the platform on which future innovations in an

area are developed.

2. Technological innovation- are technological advancements of an existing product or

service.

3. Ordinary innovation- commonly originating from market analysis and technology pull instead
of technology push.

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Terminologies:

Target Market – defined as the most probable and logical consumers, and may likewise be its
heaviest consumers.

Customer Requirements – refers to specific features and characteristics of products/services

that the customer needs.

Marketspace/Market Universe – is the total market that will buy or avail the products.

Market Size – is the approximation of the number of buyer and sellers in a particular market.

Market Share – remaining portion of the total market for the new venture.

Market Identification

- is a strategic marketing approach and process that is intended to define the specific customer
of the product or services.
Target Marketing Process: Linking Customer Needs to Marketing Action

1. Segmentation – identify and describe market segments

2. Targeting – evaluate segments and decide which to go after

3. Positioning – design a product or service to meet a segment needs and develop a marketing
mix that will create a competitive advantage in the minds of selected target market

Market Segmentation

- is the process of dividing the market into distinct groups of customers according to their needs,
characteristics, and behaviors.

Market Targeting

- aims to determine the set of buyers with common needs and characteristics.

- target market: is defined as the most probable and logical consumers, and may likewise be its
heaviest consumers.
Undifferentiated (Mass) Marketing

• Target whole market with one offer

• Considers common needs rather than differences

Differentiated (Segmented) Marketing

• Decide to target different market segments, separate offers for each

• Higher sales, stronger positioning

• More expensive than mass marketing

Concentrated (Niche) Marketing

• Target small share of the large market

• More effective and more efficient

• Good for smaller companies with limited resources

Micromarketing

• Tailoring brands for needs and wants of local customer

• Individual Marketing

• Local Marketing
Positioning

- refers to the process of arranging a product to occupy a clear, distinct, and a desirable place in
relation to other competing products in the mindset of target consumers.

Positioning Strategies

Attribute Positioning

• A company positions itself on an attribute, such as size or number of years in existence.

• Example: “25 Years of Real Education”

Benefit Positioning

• The product is positioned as the leader in a certain benefit.

• Example: “Safe kahit walang laman ang tiyan”

Use of Application Positioning

• Positioning the product as best for some use or application.

• Example: “Isang patak linis sangkatutak” ‘

User Positioning

• Positioning the product as best for some user group.

• Example: “the official socks of the PBA”

Competitor Positioning

• The product claims to be better in some way than a named competitor.

• Example: “Naiinom ba bote mo?”

Product Category Positioning

• The product is positioned as the leader in certain product category.

• Example: “Hari ng padala”

Quality or Price Positioning

• The product is positioned as offering the best value.

• Example: “World’s longest life battery”

Perceptual Mapping

- is a graphic display explaining the perceptions of customers with relation to product

characteristics.

- involves the identification of a competitive brand’s position using two variable or axes.
Value Proposition

- a value proposition describes why a customer should buy a product or service

- it targets a well-defined customer segment

- it convinces prospective customers that a particular product or service will add more value or
better sole a problem than competitive products or services

Value Proposition is a clear distinction that offers three things:

1. Relevancy

2. Quantified Value

3. Differentiation

Two Differentiation Variables

1. Product Differentiation Variables: features, performance quality, conformance quality,

durability, reliability, repairability, and style)

2. Services Differentiation Variables: ordering ease, delivery, installation, customer training,

maintenance and repair, and customer service)

USP (Unique-Selling-Proposition)

- refers to the unique benefit exhibited by a company, service, product, or brand that enables it
to stand out from competitors.

- the unique selling proposition must be a feature that highlights product benefits that are
meaningful to consumers.
Tagline

- is a slogan which succinctly, memorably and descriptively sums up a company or product.