ENTREPRENEURSHIP IMPORTANCE OF ENTREPRENEUR

An entrepreneur is willing to bear and take the EDUCATION

risk of creating a new venture if there is a
substantial potential for growth and profit. Benefits to SHS
Classify individual entrepreneurial interests. Student
According to Economists can also convert threats into opportunities and write a
-An entrepreneur is willing to bear and take the micro business plan.
risk of creating a new venture if there is a ● Entrepreneurship is very important to our
economy ​as ​key driver.
substantial potential for growth and profit.
● Entrepreneurship education is an ​individual
lifelong learning process.
In Books ● Entrepreneurship will ​energize school
-It is described as the process of creating management.
something new whether it is a product or a ● Entrepreneurship will ​transform learners
service that brings benefit by devoting the time to be innovators.
and energy needed to consider the financial,
psychological and social risks, and achieving the BUSINESSMAN VS ENTREPRENEUR
possible incentives for financial and personal
satisfaction and freedom. BUSINESSMAN

Joseph Schumpeter (1883-1950) ➤ ​A person whose commercial and industrial

-Entrepreneurs are motivated to look, innovate, purpose surrounds all activities.
and create new and better ways of doing ➤ ​He sets up a new business by following the
business. already existing ideas.
➤​ If he has the experience and can use ideas
Peter Drucker (1909-2005) wisely then he can turn every opportunity into
-One who searches to change, responds to it by profit.
researching and taking new ideas and trends, and ➤​ The real achievement of a businessman is to
exploits these changes as an opportunity to gain profit.
create and deliver something better.
ENTREPRENEUR

➤​ Someone has to be able to create something

new that can offer value to its chosen market to
be able to get something in return and convert it
to a profitable business.
➤​ An individual who plans, organizes and
operates a business or businesses, taking greater
than normal financial risks, psychic and social
risks.
➤​ He is someone who creates, or looks for ideas
for business, which is then implemented to
become a business. Idea creation is one; the real
deal is starting the business and making the idea
a reality.
Initiative reason why companies have their Research and
The entrepreneur should take initiative in Development (R&D). A company that does not
learning their industry they belong to, go the innovate will for sure lose in the game.
extra mile, and do more than what is expected Additionally, there should always be a company
from them. An entrepreneur always looks for standard to have consistency in delivering to its
new and better ways of doing things, getting customers.
ahead of others and aims to lead in their chosen Commitment to Work Contract
industry or line of business. Starting a business is one, but to execute and
Sees and acts on opportunities delivering on time to customers is another. An
An entrepreneur always has the eyes open for entrepreneur should always have in mind that a
new opportunities and most importantly acting company's reputation builds by delivering great
on them. As an entrepreneur, it is very important products and service to customers and delivering
to always look at the industry trends, anticipate on time is very important. 80/20 Rule, known as
needs of customers, even new technologies that Pareto Principle states that the last 20% of the
will help them give value to the customers, as task needs the 80% effort, and if the
well as opportunities that could help them entrepreneur doesn’t understand that finishing
expand their existing business. After knowing task’s importance, the customers will be short
the market, an entrepreneur should be able to act changed and therefore company lose it chance in
and execute as soon as possible to get ahead in proving itself in the marketplace, and will likely
offering products and services to its customers. lose customers and it business.
Persistence Efficiency Orientation
In today’s business world, there are lot of To succeed, an entrepreneur must always find
competitors that are trying to take a share of the ways of doing things more efficiently and
pie or the socalled market. The entrepreneur’s effectively, with fewer resources and at a lower
main job when it comes to competition is to be cost as possible. Companies constantly think of
able to persist in aiming and taking actions for efficiency in operations and delivering to its
the firm’s growth by getting the greatest number customers. Start-up companies normally have
of customers. less financial capital, so knowing their situation
Information Seeking and being able to produce quality products with
Access to information has never been easy as limited resources is really critical for them.
today. In fact, there is so much information that Systematic Planning
the question now is how to find the right As the saying goes, “Failing to Plan is Planning
information and use it to the company’s to Fail”. There are lot individuals that started
advantage and create better products and businesses and just closed shop after few months
services for the buyers. It is very essential for an because of lack of careful and systematic
entrepreneur to make sure that he/she gets the planning. The entrepreneur should develop a
appropriate and significant information, the logical, timely, step-by-step plan to reach the
quickest time possible. company goals.
Concern for Work Quality Problem Solving
Each entrepreneur started an enterprise because Business problems are inevitable. There will
of an idea, but it does not end there. The always be something that an entrepreneur can do
entrepreneurs should always strive to improve to minimize the impact of a problem to continue
and enhance the products or services to deliver in operation. The challenge of thinking what to
the best work for their customers. This is the do in tough times is in the hands of the
entrepreneur. A song goes, “What Doesn’t Kill CHARACTERISTICS OF AN
You Makes You Stronger”, means every ENTREPRENEUR
problem solved makes the entrepreneur more
knowledgeable and prepared for the next Ambition​ - A successful businessman is motivated to
challenges. The point is, it is a requirement for make something out of himself. He knows what he
an entrepreneur to know how to solve problems wants, and he is setting a course for achieving it.
Often his desire to do something can be daunting and
if he wants the business to be in the market for a
drive to create himself can be very consuming. The
long time.
person of an entrepreneur is often the main ingredient
Self-Confidence which takes him off his chair and brings him to
Who would like to do business with a person practice, making his daydreams a reality.
who is not confident about his or herself, or the Enthusiasm​ - Also going hand in hand with
products or services that he or she sells? It is determination, passion plays a big part in inspiring
safe to say that if you will transact for a the entrepreneur. Although ambition is perhaps the
business, you will always want to look for key to the ignition of the entrepreneur, excitement is
someone who can carry a conversation and will the gas. Every successful businessman has a positive
be able to sell his or her products effectively. To outlook which gives him the energy to pursue his
endeavors. An entrepreneurial project will gradually
become a successful entrepreneur, one must
wither away into inactivity and failure without
have a strong belief in self and own abilities.
enthusiasm.
Assertiveness Creativity​ - You can rely on imagination to help you
As stated, problems are inevitable and therefore out when problems occur in the first place, creativity
the only way to avoid more problems is to face is probably what led you to envision your company
and solve the existing ones. As an entrepreneur, and it will be creativity that will help you understand
you must have the courage in looking for the potential solutions to any hitches that may come
solutions, and finding resources, and even your way. Successful entrepreneurs will find
people who can help in those tough times. motivation in the process, and also find ways to turn
Persuasion roadblocks into opportunities.
Decision Making​ - Entrepreneur call in all the
Persuasion means influencing others to reach
actions needed. Although their imagination makes
company goals. Great entrepreneurs are great
them men of ideas, that will make them men of action
salespeople. Finding resources is a tough task
is their ability to make decisions. The decisions taken
that requires guts in proving oneself that a by businessman will decide the company’s destiny,
certain business will work and grow to get because it is only by decision-making that things
approval for loans. really will happen An entrepreneur with poor
Use of Influence Strategies decision-making skills will see his company in the
Developing a great relationship with other state of inactivity and degradation, good
businesspeople is a very important task of an decision-making skills, on the other hand, will ensure
entrepreneur. Collaboration is one great way of the best possible steps and apple in setting up the
firm.
expanding a business and great networker as
Perseverance ​- Maybe the most significant of all the
sure-fire of becoming a success in a business. As
entrepreneur’s characteristics is their ability to
an entrepreneur, one must learn to work with withstand the troubles that come with starting a
influential people to reach business. company. Starting a company is an incredibly
challenging experience and as an entrepreneur, if you
want your venture to be success, you’ll have to stick
through.
 Research the Competition
ENTREPRENEURSHIP AS A CAREER By knowing the competitor, an entrepreneur will be
An entrepreneur needs to work hard, be smart in able to compare themselves to see what things are
making decisions, creative and think about effective and work for the other companies in the
industry.
improvement of the business, be willing to take
risks accompanied with a plan of actions, and be
IDENTIFY THE MARKET NEEDS
good with people since they will be the one
aside from you who will do work for the
In starting a business, one good question to have
business and for your clients.
in mind is if there is a consumer need for your
product.
DIFFERENT BUSINESS IDEAS
Digital Marketing Services
Businesses exist to give solutions to customer's
Food Delivery Services
problems and meet their needs better than the
Food Venture
competitors in the marketplace, at a reasonable
Online Business
price.
ANALYZE THE MARKET NEED
EXAMPLES:
1.Podcasting gives opportunity to people who
MARKET ANALYSIS
spend hours in driving and can now listen to
Demographic Segmentation
different audio programs.
Dividing the total people in the market based on the 2.Uber/Grab passengers save time waiting in the
customer demographics. Demographic segmentation taxi line.
portions the market on parameters like age of the 3.Online shopping provides convenience to
customer, gender, income, family life cycle, those who can’t shop in malls
educational qualification, socioeconomic status,
religion, etc.

Target Market
NEEDS AS MOTIVATION FOR BUYING
A target market is a group of customers that a
PRODUCTS
business has decided to aim its marketing efforts
towards. Target markets can be divided into primary
and secondary target markets. Primary target markets
are those market segments to which marketing efforts
are primarily directed and secondary markets are less
important.

Recognizing the Target

Market To build a solid foundation for a business, the
entrepreneur must identify first the business’ target
market. There is no such thing as “one size fits all”
when it comes to recognizing a market niche. The
clearer the business can identify its target customer,
the more effective it could become in tailor-fitting its
strategies in getting customers.
Physiological Needs​ - This is the first stage in Esteem Needs​ - The fourth stage of the
the Maslow’s Hierarchy of Needs. Basic needs Maslow's Hierarchy of Needs. Once basic needs
are the requirements for human existence. If have been satisfied, esteem needs become
these requirements are not met, the human body essential to an individual. Once an individual
cannot function properlSafety needs - The has adequately met their need for love and
second stage in the Maslow’s Hierarchy of belonging, they can begin to cultivate positive
Needs. Once physiological needs are satisfied, feelings of self-worth and self-esteem. These
safety needs take precedence and dictate needs include:
behavior. ✔ Self esteem ✔ Respect
Social Needs​ - Third stage in the Maslow's
✔ Achievement ✔ Confidence
Hierarchy of Needs, also known as the stage for
love and belongingness. ✔ Recognition

PRODUCT AND SERVICES

A product is a tangible item that is put on the market for acquisition, attention, or
consumption, while a service is an intangible item, which arises from the output of one or more
individuals. Although it seems like the main distinction between the two concepts is founded on their
tangibility, that is not always the case. In most cases services are intangible, but products are not
always tangible​.
 INTRODUCTION
• Establishing branding and assuring the market
of the quality of the new product.
• An initial low pricing policy to get into the
market, though with little competition, price
may be high initially to recoup development
costs
MATURITY
• Adding features that will make the product
differ from the inevitable competitors that enter
the market.
• Cutting price to counter competition.
GROWTH
​• Maintaining the quality of the product and
adding any extra services or support that
becomes obvious during introduction.
• Keeping the price at a good level to maintain
sales growth.
DECLINE
• Keeping the product on the market but adding
or removing features or finding new uses for it.
• Reducing costs and production and keeping it
just for a niche segment of the market.

SOURCES OF BUSINESS IDEAS

 VIABILITY, PROFITABILITY AND 2. PESTEL: A powerful complement to
CUSTOMER REQUIREMENTS SWOT

1. How to Determine Market Viability for a “PESTEL, a complementary tool to SWOT,

Product or Service expands on the analysis of external context by
looking in detail at specific types of issues that
Due diligence on the product is the frequently have an impact on implementation of
approach used to determine the feasibility of project/ initiatives. The term ‘PESTEL’ refers
a particular product or service. Popular to the domains it considers: Political,
strategies include target market study, Economic, Social, Technological,
analysis of the industry and analysis of the Environmental and Legal. PESTEL involves
competitors. Before implementing a solution, it identifying the factors in each of these six
is also important to domains that are relevant for the project being
evaluate your internal competences, along with considered.”
potential threats.

a. Perform Market Research

Market research is an estimation of the
possible size and characteristics of customers
or firms who could be buying your product. The
market size is the cumulative number of
potential consumers who are under-represented
or not covered by current solutions at all.
Identifying target markets' attributes and
purchasing patterns helps paint the picture of
the possible advantages consumers are looking
for. A sales forecast can be produced by
combining the size of the market with forecasts
for the scope and frequency of transactions.
Projecting sales helps you know if you are going
to make enough to cover expenses and earn a
profit.

b. Analyze the Industry

The analysis of an industry is a study of an
industry's current scope and the types of
products being provided. A brand new product
means that in a new market, you will have the
first-mover advantages. This advantage offers
you the ability to connect to the entire
business potential. An overview of the number
of potential competitors, the solutions that they
provide and their price points is essential in a
developed industry.
Analyze Competitors

Competitor analysis includes comparing the

characteristics, strengths and weaknesses of
the product or service compared to those
provided by the competitors. Sometimes,
companies create spreadsheets to map out the
plans of any major competitor. You need
courage before entering a market that your
intended solution provides strong advantages
over the current solutions. Superior
performance, elite operation, reduced costs,
exclusive features or natural materials may be
your advantages. Such advantages are important
in order to create a marketplace and to attract Strengths
clients seeking your distinct advantages. Strengths are internal, positive attributes of your
company. These are things that are
Conduct a SWOT Analysis within your control.
A SWOT analysis is used to determine your
internal abilities as well as external factors ➤ What business processes are successful?
that may impact your performance. SWOT is an ➤ What assets do you have in your team, such
acronym of strengths, weaknesses, opportunities as knowledge, education, network, skills,
and threats. Your strengths include the and reputation?
ammunition for creating, promoting and ➤ What physical assets do you have, such as
providing a distinct quality approach from customers, equipment, technology, cash,
competitor companies. Your weaknesses, or and patents?
vulnerabilities, give clearinsight into the ➤ What competitive advantages do you have
hindrances to success. You may either build over your competition?
on or embrace shortcomings as intrinsic to
your business model. You can determine, in Weaknesses
an honest evaluation, that your weaknesses Weaknesses are negative factors that detract
are too great for entering the market. Analyzing from your strengths. These are things that
opportunities and threats lets you plan for you might need to improve on to be competitive.
market penetration with a clear view of how to
make money, and how to protect yourself ➤ Are there things that your business needs to
from future losses. be competitive?
➤ What business processes need improvement?
➤ Are there tangible assets that your company
needs, such as money or equipment?
➤ Are there gaps on your team?
Is your location ideal for your success?
Opportunities
Opportunities are external factors in your
business environment that are likely to
contribute to your success.

➤ Is your market growing and are there trends

that will encourage people to buy more of
what you are selling?
➤ Are there upcoming events that your
company may be able to take advantage of to
grow the business?
➤ Are there upcoming changes to regulations
that might impact your company positively?
➤ If your business is up and running, do
customers think highly of you?

Threats
Threats are external factors that you have no
control over. You may want to consider
putting in place contingency plans for dealing
with them if they occur.

➤ Do you have potential competitors who may

enter your market?
➤ Will suppliers always be able to supply the
raw materials you need at the prices you
need?
➤ Could future developments in technology
change how you do business?
➤ Is consumer behavior changing in a way that
could negatively impact your business?
Are there market trends that could become a
threat?