OVERVIEW OF ENTREPRENEURSHIP “Entrepreneurship is the pursuit of opportunity

without regard to resources currently

What is Entrepreneur? controlled.”
A person who sets up a business with the aim
to make a profit and creates a new business, Why Study Entrepreneurship?
bearing most of the risks and enjoying most of Usefulness of the Course to the Students
the rewards. 1. It develops skills that will be needed in
An innovator, a source of new ideas, goods, starting up a business.
services, and business/or procedures. 2. It enhances knowledge on how to operate
business.
Origin of Entrepreneurship 3. It demonstrates how to manage a business.
The word entrepreneurship originates from the 4. Learners consider becoming an employer
French word, “entreprendre” which means “to rather than an employee.
undertake”. 5. Learners change their attitude towards the
• to start course as a means of living.
• to commit 6. Learners change in personal and career
• to begin attitudes such as communication, problem-
What is Entrepreneurship? solving, collaboration, motivation, creativity,
The act of creating a business or businesses and teamwork.
while building and scaling it to generate a profit. Societal and Economic Benefits of
The ability and readiness to develop, organize Entrepreneurship
and run business enterprises of its 1. Entrepreneurship produces more jobs that
uncertainties in order to make a profit. adequate to an increase in national.
An important driver of economic growth and 2. Entrepreneurship amplifies economic
innovation. activities of different sectors of society.
What people do to take their career and dreams 3. Entrepreneurship introduces new and
into their hands and lead it in the direction of innovative products and services.
their own choice. 4. Entrepreneurship improves people’s living
About building a life on your own terms. No standards.
bosses. No restricting schedules. And no one 5. Entrepreneurship disperses the economic
holds you back. power and creates equality.
• Creating 6. Entrepreneurship controls the local wealth
- new business and balances regional development.
- new ideas 7. Entrepreneurship reduces social conflicts and
- new goods or services political unrest.
- new procedures 8. Entrepreneurship elicits economic
independence and capital formation.
• Launch

• Managing
Entrepreneur
Playing a key role in any economy, using the recognizing an opportunity even by using the
skills and initiative necessary to anticipate macrolevel data only.
needs and bring good new ideas to market.
5. Action-Oriented
“The true entrepreneur is a doer, not a Entrepreneurs get things done. They’re
dreamer.” — Nolan Bushnell focused on action plans and results.
Entrepreneurial spirit is a mind set. It's an Unfortunately, this means that some
attitude and approach to thinking that actively entrepreneurs don’t look before they leap!
seeks out change, rather than waiting to adapt
to change. It's a mind set that embraces critical 6. Open-Minded
questioning, innovation, service and continuous Entrepreneurs consider new ways of getting
improvement. things done. They are also willing to ask for
Common Entrepreneurial Competencies help and are able to learn from their mistakes.
1. Proactive 7. Driven by Vision
Entrepreneurs are reactive rather than passive. Entrepreneurs keep the big picture in mind.
2. Agents of change They know where they want to end up and
Entrepreneurs are innovation champions. They how they want to get there. This is what keeps
see opportunities in hopeless and complex them motivated and moving.
situations. They are always enthusiast to 8. Hard Worker
improve and develop new products and Small businesses can require some long hours
services and introduce them to the market. and intense work. Entrepreneurs don’t mind
3. Risk Taker putting in extra time and making sacrifices to
Entrepreneurs need to be willing to take risks, reach their goal.
such as: 9. Networkers
Financial risks (where they have invested their A networker knows the key people to connect
savings into a new business) with. Successful entrepreneurs know how to
surround themselves with smart people who
Personal risks (where their family’s survival can complement their own strengths and
depends on the success of the new business) weaknesses where they can gain trust of there
valuable network and maintain a long-lasting
Professional risks (where their reputation is relationship with them.
riding on the new venture)
10. Passionate About the Cause
And/or emotional risks (where they are putting Most entrepreneurs start their business based
themselves out there in a big way) on something that they are passionate about.
This passion and enthusiasm is necessary to
4. Opportunity Seeker keep motivation high and get people on board.
Entrepreneurs look at problems as
opportunities. They have a talent for 11. Sociable
Most entrepreneurs enjoy working with with details. They understand the totality and
people. A new business can require a lot of specificity of their business. As a result, they can
help from family, friends, employees, easily think of innovating and improving the
resources, mentors, and, of course, customers. product or service offerings because they know
their intricacies. They enjoy being in action
12. Decisive instead of being behind the scenes.
Entrepreneurs always have a decision about
their business. They make sure all aspects of 4. Problem Solvers
their business have clear objectives and Entrepreneurs possess critical thinking skills
strategies. Last, they base their decisions on and look at problems as challenges or puzzles
scientific calculations backed up by their that they need to solve. They know how to
experience and technical knowledge. handle issues in any area of the business.
Entrepreneurs are able to solve problems by
13. Innovative immersing themselves in day-to-day activities,
The minds of entrepreneurs are rich with big knowing what is happening in and out of their
ideas that can add value to their existing business.
business or could become a game changer in
the industry or business where they belong. What if a person lacks one or more?
• Many skills can be learned.
Core Traits of Entrepreneur in Managing and • Or, someone can be hired who has strengths
Running a Business that the entrepreneur lacks.
1. Leaders • The most important strategy is to be aware of
Successful entrepreneurs always have the strengths and to build on them.
heart of a leader. Leaders act on their
responsibilities that were given to them. They
use their strengths and limitations to make the
best of a situation. They must also be decisive
and know how to own up to their decisions. 5 Levels Of Entrepreneurial Developent
1. Self-employed
2. Manager
2. Communicators 3. Leader
Entrepreneurs know how to use all forms of 4. Investor
communication to effectively share ideas and 5. True Entrepreneur
address certain concerns with their customers CORE COMPETENCIES IN ENTREPRENEURSHIP
or employees. Communication channels Core Competencies
between entrepreneurs and their employees Defining characteristics that make a business
or customers should always be open to ensure or an individual stand out from the
the smooth flow of operations in their business. competition.
3. Specialists 3 General Conditions in Core Competencies
Entrepreneurs are experts in their chosen 1. The activity must provide superior value or
business. They are tactical and are very keen benefits to the consumer.
2. It should be difficult for a competitor to The Starting Point to Entrepreneurial Success
replicate. 1. Start to be on your own.
3. It should be rare. 2. Explore the business environment.
A core competence is something unique that a 3. Be in control.
business has or can do strategically well. 4. Have a good accountant or trusted financial
adviser.
Core Competencies of Entrepreneur 5. Seek the advice of professionals.
1. Entrepreneur as a missionary.
2. Entrepreneurs are goal-driven. Profile of a Successful Entrepreneur
3. Entrepreneur as a marketing man. 1. Strong desire for independence
4. Entrepreneurs start small to big. 2. Strong drive to succeed
3. Strong determination in decision making
Factors that Develop Entrepreneurial Activity 4. Develops a feedback mechanism for results
• Entrepreneur's initiative
• Organization of capital resources
• Development of administrative machinery OPPORTUNITY SEEKING: ENTREPRENEURIAL
• Development of entrepreneurial autonomy IMPERATIVES AND SOURCES
• Development of SWOT analysis Entrepreneurial Opportunity Seeking
Being coined as the “innovative opportunity
SWOT (Strengths, Weaknesses, Opportunities, seekers” in the business industry,
and Threats) is a tool used in evaluating a entrepreneurs are equipped with a spirit of
business. Entrepreneurs should know how to inquiry that will help them decide which
analyze their business using this tool. products or services are most likely needed in
RELEVANCE AND OPPORTUNITIES IN the marketplace.
ENTREPRENEURSHIP Sources of Opportunities
Job Opportunities 1. External/Macroenvironmental Sources
Entrepreneurship can help the economy by Any enterprise, company, or organization is not
providing jobs and employment opportunities alone in its business environment. It is always
to Filipinos. surrounded by an array of factors and forces
There are different career paths that will gain that help in shaping opportunities but also
knowledge and experience for you as a young pose present threats to the company.
entrepreneur.
Six Macroenvironmental Sources of
• Advertising, Marketing, and Public Relations Opportunities
• Business Development 1. Demographic
• Design 2. Economic
• E-commerce and Social Media 3. Socio-cultural
• Management 4. Technological
• Software, Web or App Developer 5. Ecological
• Sales Manager/ Account Executive 6. Political and Legal
• Business Consultant
• Product Manager 2. Internal/Microenvironmental Sources
Internal sources pertain to those factors that The opportunities chosen may likewise be
can be controlled by the management. It evaluated by:
includes factors of resources available that 1. Identifying resources
affect individuals and businesses. 2. Analyzing capabilities
3. Evaluating competitive advantage
Five Microenvironmental Sources of 4. Developing strategies
Opportunities 5. Reviewing feedback
1. Customers
2. Suppliers
3. Resellers
4. Competitors
5. General Public Evaluating Opportunities
3. Industry and Market Disparities 1. Remarkable value to customers
Certain disparities in the market may take place 2. Can ideally solve a compelling need, problem,
in the form of regulations, deregulations, or demand of the market
constant changes in supply chains, and other 3. A potential cash cow
structural problems. 4. Corresponds with the entrepreneur’s skills,
resources, and risk appetite
4. Consumer Preferences and Interests
Consumer preferences and interests can also be Two-Stage Approach in Screening
sources of opportunities. These preferences Opportunities
refer to the interests or tastes of individuals. • Qualitative assessment
When products eventually become outdated, Focuses on gathering information, details, and
consumers’ changes in perception can recommendations from other entrepreneurs in
subsequently kill sales. the industry.

5. Technological Discoveries and • Quantitative assessment

Advancements Business idea’s viability used to gauge a
Continuous advancements in technology can business opportunity’s feasibility and
be the source of highly innovative opportunities desirability to attract investors.
in the business industry. The 12Rs of Opportunity Screening
OPPORTUNITY SCREENING: THE 12Rs 1. Relevance to one’s vision, mission, and
Opportunity Screening objective
In this phase, the entrepreneur will lay down a 2. Resonance with one’s values
list of several opportunities which he will 3. Reinforcement of existing enterprise
evaluate prior to transforming his business strategies or entrepreneurial interests
idea into a reality. 4. Revenues
It is the process of making both qualitative and 5. Responsiveness to customer needs and
quantitative assessments of a business idea’s wants
capability of producing sales growth and 6. Reach
promising financial performance. 7. Range
8. Revolutionary Impact
9. Returns In the entrepreneurial aspect, technology
10.Relative ease of implementation assessment or technology evaluation takes
11. Resources required into account the various implications of a
12. Risks technology or innovation for a certain business
activity, which often involves technology
OPPORTUNITY SCREENING: PRE-FEASIBILITY selection.
AND FEASIBILITY STUDY
Pre-feasibility Study
A pre-feasibility study refers to the analysis of a
potential business opportunity at an early 3. Investment Requirement and Production
stage. Costs
It is generally conducted to give possible In all businesses, it is important for an
investors the relevant information they need entrepreneur to assess the amount of money
pertaining to the implementation of a business needed to be able to start a business
idea. opportunity.
This study is considered as a crucial aspect of
opportunity screening, for it is designed to give 4. Financial Forecast and Determination of
an overview of the aspects of logistics, Financial Feasibility
required capital, key challenges, and all other In all businesses, it is important for an
details deemed significant in pursuing an entrepreneur to assess the amount of money
entrepreneurial decision. needed to be able to start a business
opportunity.
When and Why Do Entrepreneurs Conduct a
Pre-feasibility Study? Feasibility Study
Entrepreneurs conduct this type of study to A feasibility study is an in-depth report that
determine whether a full feasibility study, covers many important points, including
which is relatively more costly, must be technical, commercial, legal, and scheduling
undertaken or not. issues
Entrepreneurs also make a pre-feasibility study This study is made by delving into the main
to collect various pieces of information before aspects of the project, and it is conducted to
making huge investments into different tasks assist an entrepreneur in determining whether
such as acquiring permits, gathering resources, or not a business opportunity must be pursued
hiring staff, and purchasing tools and or not.
equipment. Core Questions in a Feasibility Study
Factors in Conducting a Pre-feasibility Study • Are both markets and industries attractive?
1. Market Potential and Prospects • Does the chosen business opportunity offer
Market potential pertains to the size of the convincing benefits or advantages compared to
market or consumers who will avail of the other potential ideas?
product or service. • Will the team be able to produce the results
they seek to deliver to others?
2. Assessment of Technology and Operations
Viability Elements of Feasibility Study
1. Technical feasibility It’s main purpose is to introduce the product or
2. Commercial feasibility service to the customers and to align the
3. Resource feasibility branding efforts with the brand and its value
4. Legal feasibility proposition.
5. Operational feasibility

Steps in Conducting a Feasibility Study Value Proposition vs. Business Position

1. Create a brief preliminary analysis Statement
A value proposition is broader in nature and is
2. Outline the scope of your project a direct output of a business strategy. It refers
3. Understand the financial and operational to a bigger picture which includes all the core
costs benefits offered to various market segments
4. Review and analyze the data and the price that a customer pays to acquire
those benefits.
OPPORTUNITY SEIZING: BUSINESS POSITION A business position statement is more specific
STATEMENT and technically deals with a subset of the value
Opportunity Seizing proposition. It is oftentimes used in marketing
The stage of determining the critical success programs and activities of the entrepreneur.
factors of succeeding in the industry, while also
being cautious about other factors that cause Writing a Business Position Statement
failure to some businesses. 1. Keep it short. A business position statement
Given that opportunity seizing is the final stage is not about the vision and mission of an
of choosing the most feasibility opportunity, its enterprise. Therefore, such statements should
relevance in entrepreneurship dwells on two be concise and straightforward.
main objectives:
1. to enable the entrepreneur to transform his 2. Make it unique and remarkable. If the
business opportunity into a reality; and entrepreneur wants to stand out in the
2. to address the compelling needs or demands industry, the business position statement
of the market. should be crafted in a unique way.
3. Stick to the core values of the business. A
What are the secrets to opportunity seizing? business position statement must reflect the
1. Stepping out of the comfort zone primordial values of the enterprise itself.
2. Make the small ones count
3. Network with creative and business-minded 4. Show how the business is different from
people other competitors. The competition will always
be present in any industry. As such, an effective
Business Position Statement business position statement should point out
A business position statement refers to a brief what separates the business from its main
description of a product or service catered by competitors.
the business and specifically how such a
product or service answers the compelling need MARKET RESEARCH
of the target market. Market Research
Design, collection, and analysis of relevant Feedback of customers who already purchased
data, arranged in a systematic way, aimed at the product, or a related one, to gauge his
providing a solution to a specific marketing satisfaction.
problem.
• Distribution Channel Audit
The Need for Market Research Assessing the distributor or retailers’ purchase
• perspective of the changes in consumer tastes ordering pattern and levels of a product.
on product and services
• overview of the prevailing economic • Internet Strategic Intelligence
conditions Using the internet in the form of chats, forums,
• insights if there is a need to reschedule at a blogs, etc, the product under review is given an
later time when the demand arises honest experience review.

Purpose of Market Research • Test Marketing

• understanding of consumers’ needs A small, controlled quantity of the product is
• minimizes the risk of business failure being released to gauge the level of
• gives a forecast of the trends acceptance of the buying public or target
market.
Market Research Basic Questions
1. Why conduct a market research? MARKET RESEARCH METHODOLOGIES
2. What will be the market research? Market Research Methodologies
3. Which part of the market will be researched? Research methods are used to get the type of
4. Who among the members of the identified information about the consumers, the market,
market will be researched? and even the competitors, which will greatly
5. When will be the right time to conduct the influence the decisions of the entrepreneur.
planned market research? Market research methodologies are
6. Where will the market research be advantageous for any business because these
conducted? tools are effective at tapping into the actual
7. How will the market research be carried out? needs and wants of the target market.
Among the 7 market research basic questions, Choosing the Right Market Research
the first 2- WHAT and WHY should always be Methodology
answered first. The rest may be answered in 1. Pick a method that complements well with
any order. the business’ objectives.
Types of Market Research 2. Assess the information that is already
• Advertising Research available.
Predict or trace the effectiveness of an existing 3. Compare the various market research
or related product or service advertisement. methodologies.
4. Calculate the total time for collecting and
• Commercial Eye Tracking organizing research data.
Analyzing visual behavior and trends among its
target consumers. Qualitative Research Methods

• Customer Satisfaction Research

This type of data-gathering research method is methodology enables the entrepreneur to
performed through observation techniques formulate questions that cover a variety of
and unstructured questioning. topics.
It gives answers to the whys and hows of the
decision-making processes of various • Experiments or Field Trials
consumers. This market research approach involves a
scientific approach that includes the testing of
• Interviews specific variables. Tests can be performed in
Interviews are conducted in order to give controlled environments or under natural
entrepreneurs or businessmen the chance to settings.
deeply evaluate the areas of interest of the
individuals they want to target. UNIQUE SELLING PROPOSITION
Unique Selling Proposition
• Focus groups A marketing strategy that focuses on special
Focus groups are usually conducted personally features of a product or services which enable
by entrepreneurs or market researchers. This them to stand out from the competition and
type of methodology is meant to bring about a attract customers.
comfortable environment while discussing
with the consumers their feelings towards a Purpose of the Unique Selling Proposition
specific product or service. 1. Sympathize with customer needs
2. Motivate the customer
• Online focus groups 3. Uncover the real reason why the customer
Similar to in-person focus groups, online focus buys the product
groups are likewise performed to understand
the thoughts and feelings of consumers towards Advantages of the Unique Selling Proposition
a specific product or service, except that they • Clear Differentiation
are more convenient and cost-efficient to • Improved Revenue
perform. • Loyal Customers
• Simpler Selling
• Observations • Sales Strategy
The observational approach of conducting
market research comes in different types. The Steps in Writing Unique Selling Proposition
most common examples of observational Step 1. Review the planning process.
research are usability testing, in-store Step 2. Identify the target audience’s problem.
observation, and mystery shopping. Step 3. Focus on the solution.
Step 4. Combine it into a concise statement.
Quantitative Research Methods
Quantitative research obtains the information VALUE PROPOSITION
that can be easily and quickly counted and Value Proposition
statistically analyzed. Value proposition is a business or marketing
statement indicating the worth that the
• Survey Research business offers to customers.
Surveys are a very popular method in gathering
primary data. This type of market research Value Proposition Builder Model
The value proposition builder model is a six-
step interactive process in building value or
worth to the customer experience.

Steps
1. Market
2. Value Experience
3. Offerings
4. Benefits
5. Alternative and differentiation
6. Proof

In writing the value proposition, think about

two main things:
1. Experience of the customers, and
2. Capabilities of the products or services.

The Value Life Cycle

The value proposition must be studied
throughout the entire life cycle of value
perceived by customers.
An entrepreneur must create an attribute that
captures the five stages of the value life cycle.

Stages of Value Life Cycle

• Value Creation
• Value Appropriation
• Value Consumption
• Value Renewal
• Value Transfer

Value Proposition Advantages

1. Gives direction.
2. Creates focus.
3. Breeds confidence.
4. Customer understanding and engagement.
5. Focus on clarity of value.