TECHNOLOGY and

LIVELIHOOD EDUCATION
LEARNING MODULE
LESSON PERSONAL ENTREPRENEURIAL

1 COMPETENCIES

Entrepreneur
An entrepreneur is comprehensively defined by Zimmerer
& Scarborough (2005) as someone who “creates a new
business in the face of risk and uncertainty for the purpose
of achieving profit and growth by identifying significant
opportunities and assembling the necessary resources to
capitalize on them”. They are the ones who act on their
business ideas.

Entrepreneurship
Entrepreneurship is the process of identifying and
starting a business venture sourcing and organizing
the required resources and taking on both the risks
and rewards associated with the ventures.it is the
motivating spirit that causes someone to establish
goals and do everything to accomplish the goals
against all odds. It is the driving spirit that causes a
person to get involved in a variety activity that lead
to the establishment of a business venture.

Entrepreneurship causes people to get ideas that help to improve the following:
• The jobs they do;
• The products they make;
• The service they provide.

However, entrepreneurship cannot be successful if would-be entrepreneurs do not possess the

personal entrepreneurial competencies with vital in any business venture.

Personal Entrepreneurial Competencies

There have been many studies to characterize “the entrepreneurial personality”; although there
is no isolated set of traits that guarantee success, there were identified behaviors found common
to most successful entrepreneurs. There is a well-known research on human behavior done by
McClelland and McBer which identified 10 behavioral patterns organized into three general
clusters: the achievement, planning, and power clusters (SERDEF, 2007; 1998). It was found
out that these behaviors were also typical entrepreneurial behaviors.
The entrepreneurial qualities, more known as the Personal Entrepreneurial Competencies
(PECs) are as follows:

A. Achievement Cluster
• Opportunity seeking and initiative Entrepreneurs have a good eye for spotting business
opportunities and acts on these opportunities appropriately.
• Persistence Entrepreneurs do not easily give up in the face of obstacles. They will take
repeated or different actions to overcome the hurdles of business. This includes making a
personal sacrifice or extraordinary effort to complete a job.
• Commitment to work contract Entrepreneurs do their best to satisfy customers and to
deliver what is promised. They accept full responsibility for problems when completing a job
for customers.
• Risk-taking Entrepreneurs are known for taking calculated risks and doing tasks that are
moderately challenging.
• Demand for efficiency and quality Entrepreneurs see to it that the business meets or
exceeds existing standards of excellence and exerts efforts to improve past performance and
do things better. They set high but realistic standards.

B. Planning Cluster
• Goal setting - Entrepreneurs know how to set specific, measurable, attainable, realistic, and
time-bound (SMART) goals. It is easy for them to divide large goals into short-term goals.
• Information seeking - Entrepreneurs update themselves with new information about their
customers, the market, suppliers, and competitors. This is rooted to their innate sense of
curiosity.
• Systematic planning and monitoring - Entrepreneurs develop and use logical, step-by-step
plans to reach their goals. They monitor progress towards goals and to alter strategies when
necessary.

C. Power Cluster
• Persuasion and networking - Entrepreneurs know how to use the right strategies to
influence or persuade other people. They have naturally established a network of people who
they can turn to in order to achieve their objectives.
• Self-confidence - Entrepreneurs have a strong belief in themselves and their own abilities.
They have self-awareness and belief in their own ability to complete a difficult task or meet a
challenge.

Why Do Entrepreneurs Need These Competencies?

1. To handle challenges and risks
Running a business is not always easy. PECs like persistence and being a risk-taker
help entrepreneurs face problems and bounce back from failure.
2. To stay focused on their goals
Entrepreneurs must be goal-oriented and committed so they can stay focused and
not give up even when things get difficult.
3. To come up with new ideas
Being creative or innovative helps entrepreneurs create new products or improve old
ones, which is important in staying competitive.
4. To make smart decisions
Entrepreneurs must plan and decide wisely. Having PECs like decision-making skills
and being a planner helps them make good choices.
5. To earn the trust of others
Traits like integrity, honesty, and being responsible help entrepreneurs build trust
with customers, partners, and workers.
6. To grow their business
Entrepreneurs who are opportunity seekers are always looking for ways to improve
and expand their business.
WORKSHEET #1
GRAPHIC ORGANIZER

Create a graphic organizer with the three main clusters representing the entrepreneurial
competencies. Under each cluster, include the different entrepreneurial competencies that fall
under that specific cluster. You may also provide descriptions or explanations to further explain
each competency. Make sure your graphic organizer is neat, creative, and easy to understand
by using shapes, colors, and clear labels to organize your ideas effectively.

Example:

WORKSHEET #2
Interview a local entrepreneur near your area. Ask them about the Personal Entrepreneurial
Competencies (PECs) they believe are important to their success. Then, compare their answers
with your own reflection on the PECs you currently have or still need to improve. If you are
unable to go out and conduct a face-to-face interview, you may search online for interviews or
stories of entrepreneurs and use the information you gather as your reference.
LESSON
Business Environment and
2 Business Ideas

Business environment is composed of two business words: “business” and “environment”.

Simply put, business means the condition or state in which a person is busy and remains busy.
put in the economic realm, the meaning of the word is human activities like production,
extraction, or purchase or sales of goods that are performed for earning profits.

As to the word “environment”, it refers to the aspects of surroundings.

Business environment, therefore, may be defined as a set of conditions which are social, legal,
economic, political, or intuitional that is by nature uncontrollable and that affects the
functioning of the organization.

Success comes to people who grab opportunities as they arrive. There are many opportunities
that come, but timing is important to be able to grab these opportunities. Business ideas could
also give the springboard to start one’s own business or help in improving the performance of
an ongoing business.

Internal and External Business Environments

There are two main components of a business environment: the internal and the external.

I. Internal Environment- Internal environment includes factors that are usually within the
control of the business. They are represented by the 5Ms, namely; man, material, money,
machinery and management. These factors are subject to changes according to the changes in
the functioning of the enterprise.

II. External Environment- An external environment is composed of all the outside factors
or influences that impact the operation of business. The business must act or react to keep up
its flow of operations. These factors include government, and legal factors, geophysical
factors, political factors, physical factors, socio cultural factors, and demographical factors.
The external environment can be broken down into two types: the micro environment and the
macro environment.

A. Micro/Operating Environment
The micro environment consists of the factors that directly impact the operation of a
company which affects the capacity of the business to work.
It is made up of the following:
• Suppliers. They are reliable persons who supply raw materials and required components to
the company. Business must have several suppliers.
• Customers. They are regarded as the kind of the market. The level; of the consumers’
satisfaction determines the success of every business.
• Market Intermediaries. They work as links between the business and the final consumers.
The following are the types of the market intermediaries: middleman, marketing agencies,
financial intermediaries, and physical intermediaries.
• Competitors. These are the companies in the same or similar industry and offer a similar
product or service. The presence of one or more competitors can reduce the prices of goods
and services as the companies attempt to aim larger market share. Business has to adjust itself
according to the strategies of the competitors.
• Public. It is a group of people who may be users or non-users of the product and who have
actual interest in the business enterprise.

B. Macro/General Environment
It includes factors that create opportunities and threats to business units. The following are
the elements of macro environment.
• Economic environment. It changes with every changes in policies and political situations.
There are three elements of economic environment:
1. The public’s economic conditions
2. The economic policies of the country.
3. The economic system and other economic factors like infrastructural facilities, banking,
insurance companies, money markets, capital markets etc.
• Non-economic environment. Also called political environment, it affects different business
units extensively.
• Socio-cultural environment. It is the influence exercised by social and cultural factors that
are not within the control of the business. These factors include the attitude of the people
towards work, family system. Caste system, religion, education, marriage.
• Technological environment. It is a systematic application of scientific knowledge to
practical task. Changes in products, services, lifestyle, and living conditions must be analyzed
by every business unit, and should be adapted by them
• Natural environment. It includes natural resources, weather, climatic conditions, port
facilities, and topographical factors such as soil, sea rivers, rainfall etc.
• Demographic environment. It is the study of the perspective of population, particularly
looking into the following: population size, standard of living, growth rate, age sex
composition, family size, education level and others. Every business unit must see these
features of the population and recognize their various needs, and produce accordingly.
Example, putting up business like Jollibee Mcdo and etc you need to consider the population
before putting up your business.
• Internal environment. It consists of factors that are particularly important for industries
directly dealing with import or export.

Spotting and Identifying Business Opportunities

-Spotting business opportunities is one of the most essential aspects of entrepreneurship. An
entrepreneur must have a keen eye for identifying opportunities that can potentially turn into
a good product or business venture. At the same time, an entrepreneur should also know
which opportunities to drop and which ones to develop.

Idea Generation
The first step in identifying a good business opportunity is to look for many opportunities.
This is called the idea generation phase (SERDEF, 2007). The following are good sources of
business ideas (Hisrich, Peters, & Shepherd, 2008; Looser & Schlapfer, 2001).
• Personal hobbies and interests;
• Everyday experiences, travel, and adventures;
• Suggestions from family members and friends;
• Problems that need solutions;
• Problems with existing products;
• Books, magazines, news;
• Observing, listening around you;

Screening Business Ideas Once you have generated a number of business opportunities and
ideas, the next step is to select and screen these.

Though there can be many ways to do this, a good way to proceed is to screen your ideas
based on
1) your personality and personal preferences and
2) the characteristics of a good business

Consider the following criteria:

1. Personality and Personal Preferences
a. Personal Preference
b. Education, Skills, and Experience
c. Work Experience
d. Support from family and friends
2. Characteristics of a good business
a. Demand for Product
b. Availability of skills, raw materials, technology, and capital
c. Profitability
SWOT Analysis
Once you have chosen your business idea, the next step is to conduct a SWOT analysis in
order to determine the Strengths, Weaknesses, Opportunities and Threats of your potential
business. This step will help you improve your business of choice and prepare for challenges.

The table below will help you differentiate among these four features

Positive Negative
Controllable Factors Strengths Weaknesses
Positive factors that Set of problems, difficulties,
contribute to the favorability or shortcomings encountered
of a business opportunity by the business
Examples: Examples:
-Cheap raw materials Inexperienced owner Lack
of working capital Poor
-Skilled employees
location
-Ease of management
-Small capital outlay
Uncontrollable factors Opportunities Threats
Positive factors that are not Negative factors that are
within the control of the beyond the control of the
business business
Examples: Examples:
-Absence of similar products -Rising costs Raw material
in the market shortages
-New markets being -Too many competitors
developed
-Growing demand for
similar products
-Favorable government
policy
BUSINESS PLAN: It’s Components
A business plan precisely defines your business, identifies your goals, and serves as your
firm’s resume.

The basic components of a business plan include:

• A current and pro form balance sheet;
• An income statement; and
• A cash flow analysis.

These components help allocate resources properly, handle unforeseen complications, and
make good business decisions because they provide specific and organized information about
your company and how you will repay borrowed money. A good business plan is a crucial
part of any loan application. In addition, it informs sales personnel, suppliers, and others
about your operations and goals.

BUSINESS PLAN
I. The business plan is necessary. This plan, must be comprehensive and well-thought
out. The plan includes outside funding, credit from suppliers, management of
operations, and finance marketing of the business, and achievement of goals.
II. Despite knowing the importance of the plan, many entrepreneurs do not really care
about preparing a written document. They argue that market place changes occur too
fast to make the plan useful.
Builders of homes start with a plan; so business owners must start their enterprise with a
plan too
a. Planning can eliminate business risk.
b. Planning can eliminate costs of production.
c. Planning can detect the weaknesses of the business operations.

Before you begin writing your business plan, consider four core questions:
• What service or product does your business provide and what needs does it fill?
• Who are the potential customers for your product or service and why will they purchase it
from you?
• How will you reach your potential customers?
• Where will you get the financial resources to start your business?

A. FEATURES OF A BUSINESS PLAN

The following are characteristics of a business plan:
1. Clearly stated objectives—The objectives must be simple enough to be understood
2. Measurability-It must be measurable in terms of quantity, quality, time, and cost.
3. Policy guidelines—This must be thoroughly stated and explained to the personnel
4. Time frame-The specific time frame must be indicated
5. Required resources and Cost-Resources needed must be including their cost
6. Responsible personnel and implementing office—The plan should pinpoint the
department or personnel involved in carrying out the objectives.
B. BUSINESS PLAN OUTLINE

The following outline of a typical business plan can serve as a guide.

You can adapt it to your specific business. Breaking down the plan into several components
helps make drafting your plan a more manageable task.

I. Introduction
• Give a detailed description of the business and its goals.
• Discuss the ownership and the legal structure of the business.
• List the skills and experience you will bring to the business Discuss the advantages you
and your business partners have over your competitors.

II. Marketing
• Discuss the products/services offered.
• Identify the customer demand for your product/service.
• Identify your market, its size and location.
• Explain how your product/service will be advertised and marketed.

III. Financial Management

• Explain your source and the amount of initial equity capital.
• Develop a monthly operating budget for the first year.
• Develop an expected return on investment and monthly cash flow for the first year.
• Provide projected income statements and balance sheets for a two-year period.
• Discuss your breakeven point.
• Explain your personal balance sheet and method of compensation.
• Discuss who will maintain your accounting records and how they will be kept.
• Provide "what if" statements that address alternative approaches to any problem that may
develop.

IV. Operations
• Explain how the business will be managed on a day-to-day basis. Discuss hiring and
personnel procedures.
• Discuss insurance, lease or rent agreements, and issues pertinent to your business. Account
for the equipment necessary to produce your products or services. Account for production
and delivery of products and services.

V. Concluding Statement
• Summarize your business goals and objectives and express your commitment to the success
of your business.
• Once you have completed your business plan, review it with a friend or business associate.
• When you feel comfortable with the content and structure, make an appointment to review
and discuss it with your lender. The business plan is a flexible document that should change
as your business grows.

CHARACTERISTICS OF A SOUND BUSINESS PLAN

• Its objectives must be clearly stated,
• It must be simple and logical.
• It must be flexible
• It must be organized
• It must be completed and organized.

COMPONENTS OF A BUSINESS PLAN

The Introduction. This contains the general information about the business and gives a
broad picture of what the entrepreneur would like his/her business to achieve.

Marketing Plan. This is the first part of the business plan proper. Indicated here is what the
entrepreneur wants to sell, whom to sell, how to sell and how much to sell. It contains the
SWOT analysis, sources of merchandise, pricing, competitors, promotion, and channel of
distribution.

Financial Plan. This part indicates how much the entrepreneur needs to spend to carry out
his/her production, marketing, and organizational plans.

Production Plan. This is also known as the technical plan. It indicates the number of volume
of intended production, production space available supply and demand, and inventory
control.

Organizational Plan. This contains the type of business organization, the entrepreneur plans
to have, the advantages, and the flow chart of officers and employee and their duties and
responsibilities.

Management Plan. This indicates the goals and objectives of the business, the strategies to
be used, the business policies for customers, and store policies for employees.
WORKSHEET #1

Factor Impact Wheel

Create a wheel chart that shows the different factors that influence the business environment.
Divide the wheel into sections and label each part. You may include descriptions or examples
for each to show how they affect businesses. Be creative in your design, use colors, drawings,
or symbols to make your wheel chart more engaging. You may do this activity digitally or by
hand using paper, pencil, and coloring materials.

Example