OVERVIEW OF ENTREPRENEURSHIP

The word “entrepreneur” is derived from the French verb enterprendre, which means “to undertake‟.
This refers to those who “undertake” the risk of new enterprises. An enterprise is created by an
entrepreneur. The process of creation is called “entrepreneurship” (www.yourarticlelibrary.com).

ENTREPRENEURSHIP- It is a proactive process of developing a business venture to make a profit.

What is an Entrepreneur?

Entrepreneur: A person who organizes and manages an enterprise, especially a business, usually with
considerable initiative and risk.

• Initiative: Readiness and ability in initiating action.

• Risk: The hazard or chance of loss.

What is an Entrepreneur?

- Is a unique individual who has the innate ability and extraordinary dedication to establish and
manage a business, acknowledging all the risks and reaping its rewards.

- “An entrepreneur is someone who perceives an opportunity and creates an organization to

pursue it.”

Entrepreneurship is one of the resources economists categorize as integral to production; the three
resources are land/natural resources, labor and capital. An entrepreneur combines these three to
manufacture goods or provide services. They typically create a business plan, hire labor, acquire
resources and financing, and provide leadership and management for the business
(www.investopedia.com).

Entrepreneurship is…

• The act of creating a business or businesses while building and scaling it to generate a profit.

• An important driver of economic growth and innovation.

• What people do to take their career and dreams into their hands and lead it in the direction of
their own choice.

• About building a life on your own terms. No bosses. No restricting schedules. And no one holds
you back.

• A person who sets up a business with the aim to make a profit and creates a new business,
bearing most of the risks and enjoying most of the rewards.

• An innovator, a source of new ideas, goods, services, and business/or procedures.

• Playing a key role in any economy, using the skills and initiative necessary to anticipate needs
and bring good new ideas to market.

Entrepreneurship in the Philippines (Batalla, V. (2011)

In 2005, the top 50 Philippine corporations in terms of sales could be broken down into 22 private
domestic firms, 23 foreign firms, and 5 government-owned and/or controlled corporations (BizNews
Asia 2007as cited by Batalla, V., 2011). The 22 companies could be identified with 11 families and
individuals, mostly Filipinos of Chinese ethnic background. The 11 families and individuals were the
Zobel family (Ayala), the Lopez clan, Lucio Tan, Henry Sy, John Gokongwei, Alfonso Yuchengco,
Eduardo Cojuangco Jr., Jose Yao Campos (Unilab Group of Companies), George Ty (Metrobank),
Mariano Que (Mercury Drug), and Tony Tan-Caktiong (Jollibee).

Relevance of Entrepreneurship to SHS Students

1. To prepare students for livelihood even before college.

2. Entrepreneurship education aids students from all socioeconomic backgrounds to think outside
the box and nurture unconventional talents and skills.

3. Entrepreneurship develops their initiative and helps them to be more creative and self-confident
in whatever they undertake and to act in a socially responsible way.

4. 4. It exposes students to numerous opportunities to learn how to think

5. critically and analyze the pieces on the board.

6. 5. Being aware of all the important factors and seeing how they affect each other is the
foundation of a smart decision-making process.

7. 6. Students have to be exposed to real-world examples and learn from their own experience.

8. 7. Entrepreneurship education requires students to be innovative, creative and collaborative

with others.

9. 8. Entrepreneurship education provides budding entrepreneurs with the skills and knowledge to
come up with business ideas and develop their own ventures.

COMPETENCIES IN ENTREPRENEURSHIP AND JOB OPPORTUNITIES FOR ENTREPRENEURSHIP AS A

CAREER

THREE LEVELS OF COMPETENCIES (www.ideasforleaders.com)

1.Personal competencies – These are your abilities to ground yourself so that you are secure and self-
assured in whatever situation you may find yourself (www.free-management-ebooks.com).

Ex. creativity, determination, integrity, self-criticism.

2. Interpersonal competencies – These are your ability to lead, influence, communicate, supervise,
negotiate, and control people at all levels. It is the ability to get along with people and motivate people
to perform jobs. Entrepreneurs must effectively manage people (baseread.com). Ex. communication,
engagement, delegation

3. Business competencies – These are set of particular abilities and knowledge that sets a company
apart from its competitors (yourbusiness.azcentral.com). It also refers to the key characteristics that
successful entrepreneurs should have in order to be successful (www.mustangbols.com). Ex. business
vision, financial management, networking

Core vs. Common Competencies in Entrepreneurship

Competence is an underlying personal characteristic which leads to superior performance. It is a

combination of knowledge, skills, attitudes, and motives (baseread.com).

Core competence is the foundation for sharpening a company's competitive edge and it guides brand
reputation, business growth, and marketing strategy (www.thebalancesmb.com).

Common competence is one that describes the knowledge, skills and abilities found in most or all
position (www.ifpm.nifc.gov).

Common Competencies of Entrepreneurs

1. Proactive

entrepreneurs are reactive rather than passive. They address issues, problems, and challenges before
they come rather than when they already happened.

2. Agents of change

are innovation champions and they are always enthused to improve and develop new products and
services and introduce them to the market.

3. Risk takers

calculate risks, if they think that there is a big chance of succeeding, they push through with the venture
and don’t let the opportunity pass.

4. Have a sharp eye for opportunities

know how to assess net cause and effort of an opportunity and decide intelligently if a venture should be
considered or not.

5. Sociable

soft skills are one of the most important competencies of entrepreneurs as these establish relationship
with the most important assets of the company its people and its customer.

6. Networkers

know the key people to connect with.

7. Decisive

always have a decision about their business they do not settle for gray areas or unclear solutions.

8. Balanced

the minds of entrepreneur should have balance between the analytical and the creative side.

9. Innovative
the minds of entrepreneurs are rich with big ideas that can add value to their existing business or could
become a game changer in the industry or business where they belong.

CORE COMPETENCIES OF ENTREPRENEURS

1. Leaders

Successful entrepreneurs always have the heart of a leader and they must be a source of inspiration for
their employees.

2. Communicators

Know how to use all forms of communication to effectively share ideas and address certain concerns
with their customer or employees.

3. Specialists

Experts in their chosen business and they are tactical and very keen with details.

4. Problem solvers

Possess critical thinking skills and look at problems as challenges or puzzles that they need to solve.

ENTREPRENEUR’S FIELD OF EXPERTISE

1.Technopreneur. Puts technology at the core of his or her business model.

2. Social entrepreneur. Takes advantage of the country’s social problems and turn them to profitable
institutions with the intention of helping the disadvantaged community rather than making a profit.

3. Intrapreneur .Large company or corporation who is tasked to think, establish, and run a new big idea
or project.

4. Extrapreneur. Hops from one company to another to act as the innovation champion, providing
creative and efficient solutions.

SOCIETAL AND ECONOMIC BENEFITS OF ENTREPRENEURSHIP

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

2. Entrepreneurship amplifies 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 disperses 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

Job Opportunities for Entrepreneurship as a Career

❖ Entrepreneurship Career Opportunities for the Academic Track

Business Consultant
Sales
Research and development
Not-for-profit fundraiser
Teacher
Talent recruiter
Business reporter
New venture creation
Career in existing entrepreneurial ventures
❖ Entrepreneurship Career Opportunities for the TECHVOC Track
Fine Arts
Artist
Graphic designer
Photographer
Art gallery manger
Film director
Fashion Designing
Designer wear production
Fashion marketing, planning and concept management
Fashion media design management
Fashion accessory design, quality control, and promotion brands
Costume designer
Fashion consultant and personal stylist
Technical designer and graphic designer
Fashion coordinator
Sports
Health club manager
Strength, wellness or conditioning coach
Fitness program or event planning manager
Professional or amateur team manager
Sports facility manger
Corporate fitness director
Rehabilitation center director
Nutrition center manager
Other TECHVOC Track
Cook/Chef
Automotive mechanic
Electrician
Technical support specialist
Tool keeper and technician
Network support Associate
Mechanical technologist
 RECOGNIZING THE POTENTIAL MARKET
ENTREPRENEURIAL PROCESS

Opportunity- is an entrepreneur’s business idea that can potentially become a commercial product or
service in the future.

1. Opportunity Spotting and Assessment

Framework that most of the promising entrepreneurs use to finally come up with the ultimate product
or service suited for a specific opportunity.

2. Developing a business plan

A business plan is a comprehensive paper that details the marketing, operation, human resource,
financial strategic direction, and tactics of the business.

3.Determining the capital needed

Calculate the resources needed to establish the business and compare this against the entrepreneur’s
current resources.

4. Running the business

All aspects of the business plan should be critically observed from operations, marketing and sales,
human resources, finance, and strategy implementation. It controls and monitors system to serve as a
check and balance of the formulated plans.

3S of Opportunity Spotting and Assessment

a. Seeking

b. Screening

c. Seizing

S1: Seeking the Opportunitys

Opportunity Seeking

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.

1. Macroenvironmental sources-The major external uncontrollable factors that influence an

organization, decision making, and affect it’s performance & strategies.

a.STEEPLED-Sociocultural factors, Technological, Economic Environment, Political, Legal, Ethical and

demographic factors.

b. Industry-This is the source of the current trend on what is happening in the industry where the future
business will be belong to.

c. New discovery or knowledge-These are the new trends that can be the core business model of a new
venture.
d. Futuristic opportunities- These are the projected new opportunities that can possibly affect the new
business while it is running.

2. Micromarket-Small group of highly targeted customers.

a. Consumer preference, interests, and perception-These are the current needs and wants of potential
customers that should be discovered right away by budding entrepreneur.

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. 4Ps (product,
place, price & promotion)

c. Unexpected opportunities from customers-There are a number of budding entrepreneurs who turned
unnoticed products into superstar products that carry also the value of social responsibility.

d. Talents, hobbies, skills, and expertise-The entrepreneur’s talent, hobbies, skills or expertise can be
source of business opportunity.

e. Irritants in the marketplace such as deterrents, problems, complaints, and delays- When customers
are already sick and and tired of the same old issue or problem, that is when the opportunistic
entrepreneur should come in and make a difference.

f. Location- Entrepreneurs just have to look at their ecosystem and they will be able to spot a business
opportunity right away.

Methods of Generating Ideas

1.Focused group discussion(FGD)

In this method a moderator handles 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.

2.Brainstorming

Is an activity that allows the participants to share creative ideas using the ffg rules: (a)no destructive
criticism or judgment is allowed, (b)wilder ideas are accepted,(c) more ideas are preferred, and (d)
improvement of other’s ideas is allowed.

3. Brainwriting or Internet brainstorming

This is exactly the same as brainstorming except that the channel used is not face to face but in writing
or online.

4. Problem inventory analysis

The participants will identify from the list given the compelling problem(s) of a potential product or
service instead of generating the ideas from them.

Macroenvironmental Sources: STEEPLED Analysis

1. Socio-cultural factors
These factors represent a general view of a locality’s traditions, customs, beliefs, norms, and
perceptions. It also affects how a person of the locality behaves and reacts to marketing and selling
activities.

-Health consciousness

-Educational level

-Attitudes toward imported goods and services

-Attitudes toward the person’s lifestyle

-Attitudes toward product quality and customer service

-Attitudes toward saving and investing

-Emphasis on safety

-Buying habits

-Religion and beliefs

2. Technological factors

These are composed of innovations of an existing technology or an invention of a new one mostly on
applied science and engineering research areas.

-Basic infrastructure level

-Rate of technological change

-Spending on research and development

-Technology incentives

-Legislation regarding technology

-Communication infrastructure

-Access to newest technology

-Internet infrastructure and penetration

3. Economic Factors

These factors play a vital role in the scanning of marketing environment because economics factors
directly affect any business venture.

-Growth rates

-Inflation rates

-Interest rates

-Exchange rates
-Unemployment trends

-Labor costs

-Stages of business cycle

-Trade flows and patterns

-Level of consumers’ disposable income

-Monetary policies

-Fiscal policies

-Price fluctuations

-Stock market trends

4. Environmental or ecological factors

These factors will help the entrepreneur determine if the business he or she is entering into will comply
with the environmental standards or will just be a hazard to people, animals, and nature.

-Weather

-Climate

-Laws regulating environment pollution

-Air and water pollution

-Recycling

-Waste management

-Attitudes toward green or ecological products

-Endangered species

-Attitudes toward and support for renewable energy

5. Political factors

These factors are mostly induced by government policies and administration, which can have a strong
effect in the entrepreneur’s business.

-Government stability and likely changes

-Bureaucracy

-Corruption level

-Tax policy (rates and incentives)

-Freedom of express
-Rule of Law

-Government effectiveness

-Political Rights

6. Legal factors

Related with political factors, legal factors are government laws and regulations that can restrict or allow
business activities.

-Anti-trust law

-Discrimination law

-Copyright, patents/intellectual property rights

-Consumer protection

-Employment law

-Health and safety law

-Data protection law

7. Ethical factors

This will serve as an entrepreneur’s guide how to be ethical in running the business.

-Ethical advertising and sales practices

-Accepted accounting, management, and marketing standards

-Attitude toward counterfeiting and breaking patents

-Attitude toward development and well-being of employees

8. Demographic factors

These are the characteristics of the people in the target market.

-Population growth rate

-Age distribution and life expectancy rates

-Gender distribution

-Social classes

-Family size and structure

-Minorities

S2: Screening the Opportunity

Opportunity screening-is the process of cautiously selecting the best opportunity.

 ▪ Internal intent/main objective that the business will accomplish in the entrepreneur’s life.

▪ External intent- which will address the compelling needs of the target market.

▪ Risk appetite-refers to the entrepreneur’s tolerance of business risks.

▪ Time- must be considered as it is one of the most critical resources of an entrepreneurs.

Business opportunity elements:

1. Has superior value to customers

2. Solves a compelling problem, issue, a need, or a want

3. Is a potential cash cow

4. Matches with the entrepreneur’s skills, resources, and risk appetite

Opportunity Attractiveness Test(OAT)

Aims to assist entrepreneurs in ensuring that the opportunity that they will venture into is an attractive
and feasible prospect and avoid overestimation or underestimation.

1.Concept and Strategy-the entrepreneur should think of the reason for the business existence.

▪ Vision statement-simply defined as what the business should do in the future.

▪ Value proposition-product or service will offer to the target customers for the satisfaction of the
needs/wants of the target customers.

2. Opportunity metrics-These factors will approximately determine the attractiveness of the new venture
depending on the total scores that will generate and the risk appetite of the entrepreneur.

S3: Seizing the Opportunity

Opportunity seizing-is the last step in opportunity spotting and assessment. Entrepreneurs should make
the best and exert effort and full dedication for the success of the new venture.

Types of innovations according to the degree of distinctiveness:

▪ Breakthrough innovation-include inventions and must be protected by a patent, trade secret or

copyright.

▪ Technological innovation-advancements of an existing product or service.

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

Product or Service Development Process

5 Key stages of product/service development process

1. Idea stage-the entrepreneur determines what are the feasible products/services that will perfectly
suit the opportunity.
2. Concept stage-developed idea will undergo a consumer acceptance test.

3. Product development stage-entrepreneur leverages on the information generated from the

prospective customers via the concept.

4. Test marketing stage-submitting the product candidate for customer approval in order to evaluate
and adjust.

5. Commercialization stage-this is the launching in w/c firm commits to introduce the product into
the marketplace.

1. Potential market is the part of the total population that has shown some level of interest in
buying a particular product or service. Potential market is also called Total addressable market
(TAM) (MBA Skool Team, 2018).

2. A potential market is the part of the market you can capture in the future. It includes the
demographic groups that are not currently your customers but could become customers in the
future (Lake, L, 2019).

3. Market potential is the total demand for a product in a given business environment (Bhasin, H.,
2018).

Available Market

· Prospects who are willing and capable (have sufficient resources) buyers, and have access to a
particular market or service (www.businessdictionary.com).

· Defined 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).

Target Market

· Refers to a group of potential customers to whom a company wants to sell its products and
services.

Penetrated Market

· A set of customers or clients who are already using a particular product or service.

The Market Need

1. Need

o A motivating force that compels action for its satisfaction. Needs range from basic survival needs
(common to all human beings) satisfied by necessities, to cultural, intellectual, and social needs
(varying from place to place and age group to age group) satisfied by necessaries
(www.businessdictionary.com).

o A driver of human action which marketers try to identify, emphasize, and satisfy, and around
which promotional efforts are organized (www.businessdictionary.com).

2. Market
 o 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 like a retail outlet,
where people meet face-to-face, or virtual like an online market, where there is no direct physical
contact between buyers and sellers (Kenton, W. & Boyle, M., 2020).

o A market does not refer to a particular place but it refers to a market for a commodity or
commodities. It refers to an arrangement whereby buyers and sellers come in close contact with
each other directly or indirectly to sell and buy goods (Shaikh, S., retrieved 2020).

Your market consists of (Stull, C., Myers, P.& Scott D.M. (2008) as cited in:
https://learn.marsdd.com/):

• Existing customers: People who have already purchased your product.

• 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
solution.

Concepts about Product and Service

A product can be defined as anything that we can offer to a market for attention, acquisition, use or
consumption that could satisfy a need or want. However, the definition of product does not only
involve tangible goods such as a car, a fridge or a phone. The definition is extended to include
intangible objects as well, because they can be offered to a market. Therefore, the broad definition
of product includes services, events, persons, places, organisations or even ideas

Services are special form of product which consists of activities, benefits or satisfactions offered for
sale that are intangible and do not result in the ownership of anything. A service can thus include
banking, airline travel, communication services, hotel services and so on (Claessens, M., 2015).

MARKETING PLAN

Marketing plan-Is a business document outlining your marketing strategy and tactics. It covers a variety
of marketing-related details such as costs, goals and action steps.

Value propositionis a statement a that clearly identifies what advantages a customer will receive by
purchasing a particular product/service.

Unique selling proposition-Refers to how you will sell the product or service to your customer.

Tips on effective value proposition

1.Prepare a situation analysis that deals the problem of the customer.

2. Make your value proposition straight to the point, simple, and specific in short there should be no
complications.
3. Highlight the value of your product/service so that customer will easily get what benefits you can
provide.

4. Adapt to the language of your market.

5. Add credibility

6. Differentiate your value proposition with your competitors.

Tips on effective selling proposition

1.Identify and rank the uniqueness of the product or service attribute.

2. Be specific

3. KISS (Keep it Short and Simple)

Market share computation:

Ex. Mr. Antonio did a survey a

and found out 500 families live in Brgy. Cutcut only 475 eat rice and they consume 1 kilo per day. There
are four competitors in rice retailers 20% each market share and 20% for bulk orders. The average net
profit per kilo is P10. The objective of Mr. Antonio in the first year to capture the 20% of the market and
reduced mark up P2 and promotion of free delivery of rice for five kilos & up.

Compute:

Market size =475 families x 1 kilo per day x 365 days

=173,375 kilos of rice

Market size profit= 173,375 kilos x P10

= P1,733,750 per annum

Compute:

Potential market share=market size x estimated market share

=P1,733,750 X 20%

=P346,750

Mr. Antonio will reduce the mark up by P2 the net profit per kilo only become P8

Potential market share= 173,375 kilos x 20% x P8

Potential market share=P277,400

Customers are said to be lifeblood of the business. These are the people who buy the products or avail
the service of the entrepreneur.
Customer requirements-These are the specific features and characteristics that the customers need
from a product/service.

Target market

Types of target market:

a.Primary target market-is the segment of a marketplace a business believes will get it the best chance
to sell.

b.Secondary target market-These are customers who may have less money or fewer demand from your
product/service.

Market aggregation-happens when an entrepreneur wants to target a broader market

Market intelligence-It is a customer profiling drives the entrepreneur on what correct strategies and
tactics to employ.

Market segmentation- It is the process of grouping similar or homogeneous customers according to

demographic, psychographic, geographic and behavior.

Types of Market segmentation

1.Demographic segmentation or socio-economic segmentation-is the process of grouping customers

according to relevant socioeconomic variables for the business venture.

a.Income range and the social class-represent the purchasing power of the market.

b. Occupation-determine the customer’s income but also their daily routine where goods and services
can be properly positioned.

c. Gender and age group-life cycle of customers and their gender influence and buying behavior.

d. Religion and ethnicity-should be taken to account because these affect the way they buy products or
avail services.

2.Psychographic segmentation

It is a process of grouping customers according to their perceptions, way of life, motivations, and
inclinations.

a. Perception-is a process wherein individual receives external stimuli using five senses(hearing,touching,
smelling, seeing & tasting).

b. Physiological motivation-involve the needs of the person.

c. Psychological motivation-involve customer’s preference(like & dislike)

d. Deprivation-involves the customer’s recognition of certain voids to fill.

3. Geographic segmentation-is simply grouping customers according to their location.

4. Behavioral segmentation-is the process of grouping the customer according to their actions.

a.Occasions-drastically affect the customer’s buying

behavior.

b. Loyalty-is the result of maintaining satisfied customers.

c. Usage of products or availment of service-describes how often a product is being used or the service
being availed.

Marketing research

It is the process of gathering, analyzing, and interpreting information about a market, product, service to
be offered for sale in the market.

Qualitative research-includes identifying the written or spoken opinion of customers.

Quantitative research-involves analyzing the customers preferences using relevant statistics.

Interview-is one of the most reliable and credible ways of getting relevant information from the target
customer.

Sampling-is the selection of respondents that statistically represent the total population.

Types of interview

1.Unstructured interview-is an informal type of interview and does not follow a specific set of questions.

2. Structured interview-employs a specific questions and produces quantitative data.

Focused group discussion-is commonly used by market researchers to capture qualitative results from
target customers.

Ways in conducting FGD

1.objective

2.participants

3. venue and logistics

4. moderator

Observation

is one of the preferred and practical methods of generating ideas because the researcher documents the
behavioral patterns of people or objects or events without necessary requiring them to participate in the
research process.

Types of observation

1.Human observer-records information as it occurs or as it happens using his or her five senses.
Example of human observation

a. Customer purchase patterns-technique uses the researcher to understand the buying behavior of the
customer such as determining their pain points, buying patterns, location, price or promotion.

b. Mystery shopping-this is a common practice of service businesses today where the researcher
pretends he or she is a customer of his own business or the competitors.

2. Machine Observer- employs an equipment to record the information

Example of machine observation

1.Video cameras or closed-circuit television (CCTV)-record the customer in their organic shopping or
service behavior.

2. Traffic counters-these are very common machine observers used by researchers to determine foot
traffic or vehicular traffic in a particular location.

3. Web analytics-this is an online tool that tracks the performance of a Web site as to the number of its
visitors.

4. Barcode scanners-these machines help researchers understand the purchase behavior the customers
by reading the product codes and generate relevant sales information.

5. GPS(global positioning system) technology-tracking of vehicles and pedestrians exposed to out of

home advertisements.

Survey

Survey-it is the process of getting answers from a sample of respondents derived from a particular
population.

Types of survey

Traditional survey-conduct via telephone, face to face interaction or snail mail.

Online survey-conduct through internet, e-mails, web sites or social media sites.

1.Sampling techniques

Sample is a percentage of a specific population carefully chosen by the research to generally represent
the whole population.

a. Probability-is a technique wherein samples are given equitable chances or nonzero being selected
from a population.

b. Randomization-to assure that every sample has an equal representation for the selection process to
be unbiased.

c. Nonprobability sampling-does not give the samples equal chances being selected according to their
accessibility and personal choice of the researcher.
2. Sample size-researcher must be able to calculate first the appropriate sample size in conducting the
survey

3. Questionnaire blueprint-be specific and direct with the questions and the answers required, flexible
with the respondents convenient way of answering the question.