Entrepreneur

Week 1
Content Standard
- The learner demonstrates understanding of key concepts, underlying
principles, and core competencies in Entrepreneurship.
Entrepreneurship
- refers to the economic activity of a person who starts, manages and assumes
the risk of a business enterprise.
Entrepreneur
- A person who undertakes entrepreneurial activities.

Concept of Entrepreneurship

● The word “entrepreneur” was derived from the French verb enterprendre,
which means “to undertake.” This is pinpointing to those who “undertake” the
risk of enterprise. The enterprise is created by an entrepreneur and the
process is called “Entrepreneurship.”

Relevance of Entrepreneurship
- Entrepreneur has an enormous impact on the economy and in the society.
The level of entrepreneurial activity has contributed significantly to the
national level of economic growth of many countries.

RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION

1. Development of Managerial Capabilities
2. Creation of Organizations
3. Improving Standard of Living
4. Means of Economic Development

1. Development of Managerial Capabilities - this means that one of the benefits an

entrepreneur is to develop his managerial skills.

Managerial Skills
1. Technical skills.
2. Conceptual skills.
3. Human or interpersonal management skills.

2. Creation of Organizations - which means that because of entrepreneurship

many organizations will exist.
3. Improving Standard of Living - this means that entrepreneurship can lift up the
economic status of an individual.
4. Means of Economic Development - this means that not only the life of the
entrepreneur is improved but also the society where the business is located.
Factors Affecting Entrepreneurship
1. Personality Factors
2. Environmental Factors

1.PersonalityFactors which include:

a. Initiative - doing things even before being told.
b. Proactive - which means he can classify opportunities and seize it
c. Problem Solver - which means he can retain good relations with other
people.
d. Perseverance - meaning he will pursue things to get done regardless of
challenges.
e. Persuasion - means that he can entice people to buy even if they don’t want
to.
f. A Planner - he makes plans before doing things and does not fail to monitor
it.
g. Risk-taker - which means that he is willing to gamble but he will calculate it
first.

Common Competencies in Entrepreneurship

1. Decisive - an entrepreneur must be firm in making decisions.

2. Communicator - an entrepreneur must have a convincing power.
3. Leader - an entrepreneur must have the charisma to be obeyed by his
employees.
4. Opportunity seeker - an entrepreneur must have the ability to be the first to
see business chances.
5. Proactive – an entrepreneur can control a situation by making things happen
or by preparing for possible future problems.
6. Risk Taker – an entrepreneur has the courage to pursue business ideas.
7. Innovative - the entrepreneur has big business ideas and he does not stop
improving and thinking of new worthwhile ideas for his business.

Core Competencies in Entrepreneurship

1. Economic and Dynamic

2. Innovative
3. Profit Potential
4. Risk Bearing

1. Economic and Dynamic Activity - Entrepreneurship is an economic activity

because it involves the creation and operation of an enterprise with a view to
creating value or wealth by ensuring optimum utilization of limited resources.
2. Innovative – The entrepreneur constantly looks for new ideas, thus he needs to
be creative.
3. Profit Potential - The entrepreneur can be compensated by his profit coming from
the operation.
4. Risk bearing – The entrepreneur needs to gamble but wise enough to offset the
risk

Types of Entrepreneurs
1. Innovative Entrepreneurs
2. Imitating Entrepreneurs
3. Fabian Entrepreneurs
4. Drone Entrepreneurs
5. Social Entrepreneurs

1. Innovative Entrepreneurs - They are those who always make new things by
thinking of new ideas. They have the ability to think newer, better and more
economical ideas.

2. Imitating Entrepreneurs - They are those who don’t create new things but only
follow the ideas of other entrepreneurs.

3. Fabian Entrepreneurs - They are skeptical about changes to be made in the

organization. They don’t initiate but follow only after they are satisfied.

4. Drone Entrepreneurs - They are those who live on the labor of others. They are
die-hard conservatives even ready to suffer the loss of business.

5. Social Entrepreneurs - They are those who initiate changes and drive social
innovation and transformation in the various fields such as education, health, human
rights, environment and enterprise development.

Week 2
Job opportunities for entrepreneurship as a career.

Job Opportunity is simply an opportunity for employment.

● When we say career, it is a long-term professional journey you may

determine based on your passions.
● A career in entrepreneurship can be made in virtually any field, depending on
your interests.
Business Consultant
Duties of a business consultant
1. Plan, organize and manage business projects for clients.
2. They asses and create solutions to help the company more efficiently meet its
goal.
3. Work in areas that include marketing, human resources, management, and
accounting.

Sales managers
1. Knows how to find customers and persuade them to purchase products
2. Guides and coordinate with the sales
3. Their responsibilities include designing and implementing a strategic sales
plan that expands company's customer base and ensure its strong presence.
4. Responsible for hiring and training sales staff. They work closely to every
sales member of the team

Teacher
- a graduate of an entrepreneurship can use his knowledge in teaching.

Research and Development Director.

- They are responsible for controlling, coordinating and carrying out research
in various company departments, guaranteeing the continuous innovation
of products and work processes.
Fundraiser
- Someone who raises money for a specific purpose and meant not to make
profit but instead for maintaining the organization or toward the purpose for
which it was created.
Talent Recruiter
- Someone whose job is in sourcing, attracting, recruiting, interviewing, and
on-boarding employees to an organization.
Business Reporter
- Someone who can write articles, breaking news and business stories in
unique and interesting ways to increase readership.
New Venture Creator
- They are entrepreneurial people whose primary role is in creating new
business via creating new start-upsor, scaling growing companies, having
significant and direct stake in the actual business success.
Some Popular Career Titles in 21st Century Enterprise:
1. CEO (Chief Executive Officer)
- Primary responsibilities include making major corporate decisions, managing
the overall operations and resources of a company
2. Advertising Sales Agent
- They contact potential clients, make sales presentations, and maintain client
accounts.
3. Project Manager
- a person who has the overall responsibility for the successful initiation,
planning, design, execution, monitoring, controlling and closure of a project
4. Operation Manager
- Operations Managers oversee operational activities at every level of an
organization. Their duties include hiring and training employees and
managing quality assurance programs.
5. Product Manager
- responsible for defining the release process and coordinating all of the
activities required to bring the product to market.
6. Marketing Manager
- managing all marketing for the company and activities within the marketing
department. Developing the marketing strategy for the company in line with
company objectives.
7. Digital Marketing Specialist
- the Digital Marketing Specialist's role is to design, create, and deliver
marketing programs to support expansion and growth of the company
services and products. This role requires an in depth knowledge of TekSavvy
products and market goals.

8. Advertising Manager
- advertising Managers direct a company’s advertising activities and staff
members as develop creative, consistent brand-specific ad campaigns.

Week 3
Concepts, underlying principles, and processes of developing a business
plan.

In establishing a business, it is important that everything must be done

systematically. There is no room for guessing. Careful planning is needed in
order to be successful.

Business Plan
- is written document describing the nature of the business, the sales and
marketing strategy, the financial background, and containing a projected profit
and loss statement.
Business concept
- is an idea for a business that includes basic information such as the service or
product, the target demographic, and a unique selling proposition that gives a
company an advantage over competitors.

Parts of the Business Plan

1. Executive Summary
- This contain brief description of each part of the business plan.
- The first paragraph of the executive summary should generally include your
business name, its location, what product or service you sell, and the purpose
of your plan.

2. Introduction
- It covers the compelling reason for selecting a particular project being
proposed this include the idea, the rationale for the business, the problem
being addressed, the value proposition, and the potential benefits to would-be
financiers who may be interested to commit their money to this particular
undertaking

3. Product or Service Description

- This segment tackles the characteristic and the details of the proposed idea.
The name of the business should be describe first

4. Industry Analysis
- is an assessment tool that is used to understand the different dynamics of a
certain market or industry.

5. Marketing Analysis
- Involves the search for, and analysis of data that can be used to identify,
describe, and quatify a given market or group of customers.

6. Marketing plan
- It is a comprehensive document or blueprint that outlines a business
advertising and marketing effort.

7. Production or operational Plan

- The operations plan is the section of your business plan that gives an
overview of your workflow, supply chains, and similar aspects of your
business. Any key details of how your business physically produces goods or
services will be included in this section.
 8. Organizational Plan
- This details the human resource complement of the business. It is also
Describes the legal form that the business will take: sole proprietorship,
partnership or corporation.

9. Financial Plan
- The financial plan shows the financial and funding requirement of the
business.
10. Appendices

Week 4-5
Identifying the marketing need

Marketing needs refers to the functional needs, desires and goals of a target
audience.

Market needs inform organizations about

● products develop
● customers
● cost
● distribution channels
● reducing the uncertainty that a new product/service development always
brings with it.

Size of Market - Market size is the total number of potential clients or buyers in a
particular market segment. It's helpful for an organization or small business to
determine its market size before launching a new service or product to ensure it
reaches its expected audience.

Understand Your Customer Profile - In order to determine the size, you need to
understand who your ideal customer is.

Personal Similarities in Market - Often, the group you're targeting has similarities
when you look at the personal lives of those in that group. This includes marital
status, education levels, type of career, as well as family size and income levels.

Consider Cultural Components - A marketing plan should consider the geographic

and cultural elements of your target group. These could have a significant difference
on how what the buyers want to buy or even how they buy it.

Special Interests or Needs - This is when people begin to experience hunger

(need) and decide to purchase lunch. The type of food, the location of the restaurant,
and the amount of time the service will take are all factors to how individuals decide
to satisfy the need.
Market research - Market research is an organized effort to gather information
about target markets and customers: know about them, starting with who they are. It
is an important component of business strategy and a major factor in maintaining
competitiveness.

5 things that market research can do for you in the process of product
development & business growth:

1. It is crucial for a better understanding of your customers

- Market research will help you map out the full profile of your ideal customer.

2. Knowledge about your competitors, and how they approach the market.
- Market research will help assess the market to identify both key
players and those on the rise.

3. Testing your product before launch

- Every business decision should be tested before fully exposing to your
target audience.

4. You won’t go out of business

- In order to remain in business and stay relevant, you should not only
anticipate change, but you need to be able to predict change too.

5. Business growth
- Market research helps you comprehend the demands of your customers,
detect more business opportunities, plan the perfect marketing campaign,
minimize losses, and keep track of the competition.

Choosing a Product or Service to Sell.

To succeed as an entrepreneur, you must develop the ability to select and offer the
right products or services to your customers in a competitive market. More than any
other factor, your ability to make this choice will determine your success or failure.

1. Primary considerations in choosing a particular product

● financial benefit to your business
● relatively low investment requirements,
● positive return on investment,
2. Meet the needs of the customer and solve a specific problem.
● Product must address a need or an opportunity.
3. Produce the product that you are capable of.
● Know if you have the time, resources and capability to produce your product.
 ● Know if you can produce a strong demand at a specified period required with
the samestandard.
4. Consider the size of your potential reachable market.
● Get an idea of the size of your market.
5. Comply with government rules and regulations.
● Comply with required permits, licenses and obtain approval from the
government.

6. Your product must be superior in its functionality, presentation or marketing

than any similar or existing in the market.
● Know and understand your Unique Selling Proposition - is the one thing that
makes that your product different than any other.
7. Identify barriers that must be overcome for a potential new product entry.

8. Know the potential sales, growth, profits, and time for payback.
● Get a clear idea of your costs.
● Understand how much sales you need to have tobreakeven.
● Post a profit.
● Know what your return on investment will be.

S - Strength
W - Weakness
O - Opportunities
T - Threats

1. Product Development - at this point your product or service is only an idea.

The new product planning involves a series of steps:

1.1 Idea Generation
a. Brainstorming – sharing ideas
b. Surveys
c. Visiting suppliers’ facilities
d. Reading trade publications – inspirational story of successful
entrepreneurs can be a basis of creating new product.

1.2 Idea Screening

● Ideas which are unsuitable, unacceptable or poor must be junked.
● Ideas with attributes are rated on the basis of a rating form, rated 1-10 in
categories: general, marketing and production characteristics.

1.3 Concept Testing.

- Ideas which passed screening stage will require feedback from consumer.
1.4 Business Analysis
- a review of market factors, revenues, cost and trends

1.5 Product Development

- ideas are converted into visible form

1.6 Test Marketing

- involves selling a fully developed product in selected area and observing the
actual or on the spot performance.
- Depending on the result, decision as to go ahead, modify the product or
services, modify marketing plan or cancel the product.
1.7 Commercialization
- involves actual marketing of the product in the target market.
2. Introduction - launching of product or service in the marketplace and
objective is to generate customer interest.
● Sales growth depends on the desirability of the product
● Competition is limited, or selected
● High production and marketing costs
● Free samples and discounts may be desirable

3. Growth- your product or service is establishing itself, sales are growing and
profit margins are good.
● Product gains wider acceptance and objective to expand distribution and
range of available product alternatives

4. Maturity - sales growth is slowing or has even stopped. You've been able to
reduce production and marketing costs, but increased competition has driven
down prices. Now is likely to be the best time to invest in a new product.
● Product’s sales level tries to maintain lower price and better features for as
long as possible.
● Competition is at its highest level.
● Profits decline because discounting becomes popular.
● High cost in advertising.

5. Decline - new and improved products or services are on the market and
competition is high. Sales fall and profit margins decline.
● Product’s sales falls as substitutes and new competitors enter the market
● Firms may lessen or reduce the items produced and outlets used.
● Increased marketing will have little impact on sales and won't be cost-effective
unless new markets are identified.