Modules in Entrepreneurship

What is Entrepreneurship?
 is a process of developing a business venture to make a profit.
 It involves seeking opportunities to market, establishing and operating a business out of the opportunity and
assessing its risks and rewards through close monitoring of the operations.
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

Who is an Entrepreneur?
 Entrepreneur- is a word that is French in origin and has coined from the words “entre” which means “between”
and “prendre” which means “to take”.
 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.

Five levels of entrepreneurial development

 The Self-employednot comfortable with the routines on desk job
 The managerfeel the need to step up and ask some help from other people around them
 The leaderentrepreneurs on this level already enjoy seeing their people flourish, stepping up and producing great
results with minimal supervision
 The investorlook for more opportunities for them to grow
 The true entrepreneur based on their experience, now aim for quality and excellence in their work.

Four-step process of thinking

 Idealizationentrepreneurs dream enormously and desire to build an ideal environment.
 Visualizationentrepreneurs start to create plans to make the dream a reality.
 Verbalization involves sharing their ideas with other people, knowing that their vision is already occurring.
 Materializationhappens when the vision becomes a reality.

New Terms
 Technopreneur, an entrepreneur who puts technology at the core of his and her model.
 Social Entrepreneuris one who takes advantage of the country’s social problems and turn them to profitable
institution with the intention of helping the disadvantaged community rather than making a profit.
 Intrapreneuris an entrepreneur in a large company or corporation who is tasked to think, establish and run new a
big idea or project.Intrapreneurs are usually the product managers or the business development managers of a
company.
 Extrapreneur, is an entrepreneur who hops from one company to another to act as an innovation champion,
providing creative and efficient solutions.

Common and Core Competencies in Entrepreneurship

Common traits that entrepreneurs should always have:
1. Proactive, reactive rather than passive.
2. Agents of change,entrepreneurs are innovation champions.
3. Risk Takers, by taking risks, entrepreneurs do not just grab opportunities left and right; they have to take consideration
the potential various threats they may encounter.
4. Have a sharp eye for opportunities, entrepreneurs have a talent of recognizing an opportunity by using the macrolevel
data only.
5. Sociable, soft skills are one of the most important competencies of entrepreneurs as these establish the relationship with
the most important assets of the company- its people and its customers.
6. Networkers, knows the people to connect with.
7. Decisive, always have decision for the business. They do not settle for gray areas or unclear solutions.
8. Balanced, the minds of entrepreneur should have a balanced between analytical and creative side.
9. Innovative, they do not stop improving and thinking of new ideas for their business.
Core traits
1. Leaders, source of inspiration for their employees. They must be humble, friendly and knows how to listen.
2. Communicators, know how to use all forms of communication to effectively share ideas and address certain
concerns with their customers or employees.
3. Specialists, experts in their chosen business
4. Problem Solvers, possess critical thinking skills and look at problems as challenges or puzzles that they
need to be solve.

Entrepreneurship or Employment?
Important Career Factors
1.Income
2.Hiring and Firing Organizational Setup and Major Key results areas
3.Daily Tasks
4.Leisure time and vacations
5.Taxation
6.Comfort level at work

CAREERS IN ENTREPRENEURSHIP
“When you love what you do, it’s as if you are not working”
LIST OF COMMON SMALL BUSINESSES IN THE PHILIPPINES
1. Sari-sari store
2. Rice Retailing
3. Food cart business
4. Printing Business
5. Buy-and-sell Business
6. Street food business
7.Flea market business or tiangge
8. Online Selling Business
9. Cellphone Loading Business
10. Laundry and dry cleaning business
11. Hair styling and make-up business
12. Spa, gym and nail care business
13. Video and photography business
14. Tutorial Business
15. Baking Business
16. Web site development and design/blogging
 17. Direct selling business
18. Car wash and car care business
19. Bar, café and restaurant
20. Water station and LPG (liquefied petroleum gas) station
“No successful business started huge right away”
Franchising is a business arrangement wherein the franchisor, who is the owner of business, acquires distribution centers
through the franchisees or the affiliated dealers.
Intrapreneurship is managing a startup business in an established business
Acquisition, buying another similar business or a new business
ENTREPRENEURIAL PROCESS-is a step-by-step procedure in establishing any kind of business that an entrepreneur
has to undergo.
o 1. Opportunity spotting and assessment
o 2. Developing a business plan
Business plan- is a comprehensive paper that details the marketing, operational, human resource, financial,
strategic direction and tactics of the business.
o 3. Determining the capital needed
o 4. Running the business
Opportunity Spotting and Assessment
Scanning the Marketing Environment
Seeking, Screening, and Seizing
Opportunity is an entrepreneur’s business idea that can potentially become a commercial product or service in
the future.
S1:Seeking the Opportunityis 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. Macroenvironmental Sources
A. STEEPLED. Mnemonic for Sociocultural, Technological, Economic, Environmental, Political, Legal, Ethical
and Demographic factors.

STEEPLED Analysis
The result of the STEEPLED scan will aid the entrepreneur in deciding what product or service to set up and
whether this new venture will succeed or not.
1. Socio-cultural factors - represent a general view of a locality’s traditions, customs, beliefs, norms, and
perceptions; affect how a person of the locality behaves and reacts to marketing and selling activities
2. Technological factors - composed of innovations of an existing technology or an invention of a new one
mostly on applied science and engineering research areas
3. Economic factors – directly affect any business venture; include income, expenses, and resources that can
influence the cost of doing business and generating income
4. Environmental or ecological factors – the scan of 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
5. Political factors – induced by government policies and administrations, which can have a strong effect in the
entrepreneur’s business
6. Legal factors - are government laws and regulations that can restrict or allow business activities
7. Ethical factors - will serve as an entrepreneur’s guide on how to be ethical in running the business
8. Demographic factors – the characteristics of the people in the target market
 B. Industry. Source of current trend on what is happening in the industry where the future business will belong to.
C. New discovery or knowledge. These are new trends that can be the core business model of a new venture.
D. Futuristic opportunities. These are projected new opportunities that can possibly affect the new business while
it is running.
2. Micromarket
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.
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.
C. Unexpected opportunities from customers. Most brilliant ventures comes from the most unexpected
opportunities.
D. Talents, hobbies, skills and expertise. Business opportunities do not just come from outside sources, but also
from within the entrepreneur.
E. Irritants in the marketplace such as deterrents, problems, complaints and delays. Entrepreneurs see
opportunities in situation where there is a recurring problem or sometimes when there is no more hope in solving
the problem.
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) - 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- an activity that allows the participants to share creative ideas
3. Brainwriting or Internet brainstorming - the same as brainstorming except that the channel used is not face-
to-face, but in writing or online
4. Problem inventory analysis - similar to FGD except that the participants are already given an inventory of
product or service problems

S2: Screening the Opportunity

Opportunity screening is the process of cautiously selecting the best opportunity. The selection will depend on
the entrepreneur’s internal intent, i.e., the main objective that the business will accomplish in the entrepreneur’s
life, and the external extent, which will address the compelling needs of the market.
The entrepreneur should apply due diligence and independent judgment in selecting the opportunities that have a
potential and eliminate those that are not within the scope of the entrepreneur’s risk appetite.
Risk appetite refers to the entrepreneur’s tolerance of business risks
Time should only be devoted to worthwhile opportunities
“The entrepreneur should know why and when to say no to an opportunity”
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 Metrics
The opportunity’s critical success factors. These factors will approximately determine the attractiveness of the
new venture depending on the total scores that it will generate and the risk appetite of the entrepreneur.
Entrepreneur can put 5 as the highest score and 1 as the lowest score.
S3 – Seizing the Opportunity
 Opportunity seizing is the “pushing through” with the chosen opportunity
 Effort and Full Dedication
Innovation
 Innovation is the process of positively improving an existing product or service
 Innovation is the key driver for economic growth
 Innovation is inevitable as the world constantly changes
Types of Innovation
 Breakthrough innovationincludes inventions, occur infrequently as these establish the platform on
which future innovations in an area are developed.
 Technological Innovation occur more frequently than breakthrough innovation. Technological
advancement of an existing product or service.
 Ordinary innovationoccurs ordinarily as the name implies. Market has a strong influence in the
implementation of an innovation.
Product or Service Planning and Development Process
1. Idea Stage- Market evaluation
2. Concept Stage- Consumer acceptance test, Conversational interview
3. Product Development Stage- Product samples
4. Test Marketing Stage- Actual sales

Opportunity spotting and assessment to Business Plan

 A business plan is a comprehensive paper that details the situation analysis, objectives, strategies and
tactics, and how to monitor and control the enterprise
 Marketing is all about knowing the customers
Marketing Process
Customer’s Needs Value Proposition
Customer’s Wants Unique Selling Proposition
Value proposition simply states why a customer should buy a certain product or service.
A unique selling proposition refers to how you will sell the product or service to your customers.
Tips for the entrepreneur on how to create an effective value proposition to the target customers
1. Prepare a situation analysis that details the problem(s) of the customers.
2. Make your value proposition straight to the point, simple, and specific.
3. Highlight the value of your product or service.
4. Adapt to the language of your market.
5. Add credibility-enhancing elements.
6. Differentiate your value proposition with your competitors.
Tips for the entrepreneur on how to create an effective unique selling proposition to the target customers
1. Identify and rank the uniqueness of the product or service attribute
2. Be very specific
3. KISS (Keep it short and simple)
Marketing research is a comprehensive process of understanding the customers’ intricacies and the industry
they revolve in.
Market Size
 Market size is the size of the arena where the entrepreneur’s business will play.
  Market size is the approximation of the number of buyers and sellers in a particular market.
Steps in determining the market size
1. Market space or Market universe – Surveys, Customer reviews, Other data-gathering methods
2. Elimination
3. Market share
Competitors
1. DirectCompetitors -Offer exactly the same product and structured similarly to the existing business
2. IndirectCompetitorsDon’t offer exactly the same product type and are not similarly structure but
compete with your existing business
Customer Requirements
 Customers are the lifeblood of the business.
 Customer is always right
 Customer requirements are specific features and characteristics that the customers need from a product
or a service.
 Customer requirements vary from person to person.
 Customer is the voice of every business that every entrepreneur should listen to.
Market intelligence, which includes customer profiling, drives the entrepreneur on what correct strategies and
tactics to employ.
Types of Target Market
1. Primary Target Market
2. Secondary Target Market
Market Segmentation Is the process of grouping similar or homogeneous customers according to
demographic, psychographic, geographic and behavioral.
1. Demographic Segmentation also called socioeconomic segmentation, is the process of grouping
customers according to relevant socioeconomic variables for the business venture.
Income range and social class, Occupation, Gender and age group, Religion and ethnicity
2. Psychographic Segmentation is a process of grouping customers according to their perception, ways of
life, motivations and inclinations.
Perception is a process wherein an individual receives external stimuli using the five senses of hearing,
touching, smelling, seeing and tasting.
Way of life can give an overview of what products or services best suits the problems of the customer is
happening on a daily basis.
Motivation Can either be physiological or psychological and can be affected by aspiration and
deprivation.
Physiological Motivation involves the needs of the person; they seek to avoid pain and give
pleasure.
Psychological Motivation involves customer preferences (what the customer likes or dislikes)
Aspiration are the customers wants to achieve
Deprivation involves the customer’s recognition of certain voids to fill.
3. Geographic Segmentation is simply grouping of customers according to their location.
Location – Cultures, Beliefs, Preferences, Politics, Lifestyle
4. Behavioral Segmentation is the process of grouping the customers according to their actions
Occasions, Loyalty, Desired benefits, Usage of products or availment of service- Light users, Medium
users and Heavy users

Market Aggregation Happens when an entrepreneur wants to target a broader market as possible because the
product or service that the business offer is suited for an undifferentiated market.