KEY CONCEPTS AND COMPETENCIES

Entrepreneurship
- A science converting processed ideas into a remarkable business venture.
- A capacity for innovation, investment and expansion in new markets, products and
techniques.
- is described as the process of creating something new whether it is a product or a service
that brings benefit by devoting the time and energy needed to consider the financial,
psychological and social risks, and achieving the possible incentives for financial and
personal satisfaction and freedom.

BUSINESSMAN VS. ENTREPRENEUR

An individual who operates Definition An individual with an

or starts a business with the exclusive idea to initiate
same old business ideas. and establish a new.

Make his place in the Market Market player

market

Less Risk Factor Risk Factor Approximately High Risk

Factor

Profit Focus Make life easier

Extremely high Competition Low

Competencies
- Considered as the capability, capacity and ability of the learner handling situations in
various areas in business.
Learner should seek entrepreneurial competencies:
1. Locus of Control
- Must know how to determine the state to which a person agreed that their
actions can directly affect a situation or that they can control a result.
2. Specific Goal Setting
- Should be motivated to set goals, particularly business growth objectives,
have been found to increase firm growth resulting in the firm performance
and innovation.
 - Use of S.M.A.R.T
3. Self-efficacy
- Must believe in their own ability or self-confidence.
- Will take negative feedback more positively and use feedback to improve
their performance.
4. Layers of Competency
- Should know the group of attributes, some of which are applicable to all
entrepreneurs, while others are occupation/industry specific.
● Universal Competency - occupying the bottom portion of the
pyramid.
● Specific Competency - located near the top of the pyramid.
5. Need For Achievement
- Must have a high need for achievement and take responsibility for
outcomes.
6. Ambition
- Must be motivated, persistent, and persevere even in the face of situational
challenges.
- They are patient and persistent, passionate and goal driven.
7. Willingness to Learn
- Have a strong willingness to learn and often pursue opportunities to
acquire new skills and competencies.
8. Strong Initiative
- Having a high initiative is often driven to work hard.
- Frequently work independently to achieve task master, regardless of the
extra effort necessary to do so.
9. Adaptability and Flexibility
- Must learn how to be highly flexible and adaptable and often deal very
well with a unique ability to choose action.
- Learners are innovative and creative, often developing novel solutions to
complicated problems.
- Manage to change.
 10. Willingness to Take Risk
- Not only are successful learners willing to take consequences.
- They can also identify and calculate risk.
- Skilled at developing new plans.
11. Interpersonal Skills
- Skills of working well with people from different backgrounds.
- Understanding motives and actions, quickly aware of strong relationships

Industry Wide Competencies/Work Competencies

Entrepreneurial Skills:
1. Networking/Collaboration
- To build professional relationships, assists learners with leveraging contracts.
- With strong networking skills are perceived as trustworthy.
2. Creative/Critical Thinking
- Can analyze problems and create innovative solutions.
- Can easily identify what is missing from the current product.
- Have imagination, creativity and empathy.
3. Organizing
- Successful entrepreneurs plan and prioritize work to ensure time is managed
effectively.
- Can work methodically and effectively allocate time and resources.
4. Checking, Examining And Recording
- The ability to maintain confidential records, easily locate and complete
appropriate forms and paperwork, detect errors and make necessary corrections.
5. Planning
- Must be specific about the direction of their venture and the strategy they will
adopt to achieve their short goals both long and short objectives.
6. Business Principles
- Must understand the basic principles of business.
- Being well versed in market knowledge, economic principles and ethical
practices.
7. Computer Competency
- Must be competent in the use of computer hardware.
8. Workplace Competency
- Develop from the synthesis of an individual’s skills, knowledge and abilities with
on the job task and work related experiences
- The application of knowledge, skills, attitudes, values and behaviors in the
workplace.
9. High-growth, High-value Entrepreneurship
- Offer incentive compensation, manage business operations, build a strong
entrepreneurial culture around determination and high work ethic, and form
effective boards of directors and advisers.
10. Innovation and Creation
- Apply creativity to the formulation of inventive systems of products.
● Opportunity Orientation - Assessing changes in trends, identifying small
niche or group of markets, and seeking out opportunities to improve
services and products.
11. Marketing
- Are competent in both executing strategies that promote their products and
establish client/customer relationships.
12. Business Operation
- Performs business operations that are able to both carry out daily operations.
Example:
● Scheduling manpower
● Maintaining inventories of goods
● Management of human capabilities
13. Risk Assessment and Management
- Can handle risk management and can take into account legal actions.
14. Financial Management
- Are knowledgeable in assessing financing needs, determining risks and
identifying sources of funds.
 - Are competent at accounting and funds management, managing cash flows and
preparing estimated and projected balance sheets.
15. Problem Solving and Decision Making
- Can generate, evaluate, and implement solutions to difficult problems.
- Locate and utilize relevant info and generate alternative solutions when necessary.

10 Competencies For Entrepreneurial Success

1. Integrity
- Has a positive sense of values and personal beliefs, creating in making business
decisions, influencing in making the desired action will take.
2. Conceptual Thinking
- Prepared to use new approaches and come up with new ideas that may enhance
work.
- Will lead to change and improvement.
3. Risk Taking
- Means trying to anticipate future problems thus solving new problems.
4. Network/Collaboration
- Can provide access to info, collaboration and profits.
5. Strategic Thinking
- Thinking using strategies can help achieve goals in the org.
- Strategy means ways to accomplish something in relevance to the aims of
objectives.
6. Commercial Aptitude
- Keep themselves updated with development in the locality.
- Seek out best practice.
- Identifies and determines opportunities.
7. Decisiveness
- Resolves issues in an unavoidable situation and responds flexibly to deal with
changing priorities set by the upper authorities.
8. Optimism
- Persists in pursuing goals despite hindrances and problems.
 - Performs in the hope of success rather than fear of failure.
9. Customer Relation Service
- Develops and builds trust and long term relationship with the customer.
- Collates an expectation of high level of customer service.
10. People Centered
- Commonality among stakeholders, see and value the best in others.
- Built the total capability of the people involved.
- Consider principles of inclusiveness in planning and dealing with others
Characteristics of an Entrepreneur
1. Ambition
2. Enthusiasm
3. Creativity
4. Decision-making
5. Perseverance

Market Analysis
- A quantitative and qualitative assessment of a market ability to respond positively.
How To Do A Market Analysis?
1. Demographics and Segmentation
● Demographics - The statistical characteristics of the human population used
especially to identify markets.
● Segmentation - The process of dividing into segments with similar
characteristics.
2. Target Market
- Customers that are focused within the market.
- Focused more on the quantitative side by looking at what drives the demand.
3. Market Need
- Determine the needs of the market through analysis based on research conducted
focusing on their needs. (Identify the customers’ needs)
4. Competition
 - Determining the competitor’s positioning and describing their strengths and
weaknesses.

Barrier to Entry
- These are the hindrances that block or intend to block passage.
- It prevents movements or actions to the business.
1. Investments (Project that requires huge investment)
2. Technology (Application of the combination of scientific and engineering knowledge)
3. Brand (The huge marketing cost required to get certain to a certain level of appreciation)
4. Regulation (licenses and permits in particular)
5. Access to resources (exclusivity with suppliers and accessibility with suppliers)
6. Access to distribution channels (exclusivity with distributions and availability of
intermediaries)
7. Locations (place and venue where business is located)

PRODUCT: ITS NATURE AND SUSTAINABILITY

A Product can be tangible or intangible that can be offered for satisfaction of the recipients and
it may be an idea, a physical entity (a good), service or any combination of the three. Product is
that bundle of satisfaction which buyer receives as the result of a lease or purchase.

Product Description Necessities

1. Cite the uniqueness of the product over other existing products.
2. Use layman’s terms in describing the firm’s product or service.
3. Illustrate the usefulness of the product/service.
4. Present the nature including the content of raw materials that will be used in the proposed
product.
Product Cycle
● Introduction
● Growth
 ● Maturity
● Decline
Levels of product
● Tangible product - The basic physical appearance which can be a service or idea.
● Augmented product - The image and service features of a certain entity. It gives
emphasis on the intangible benefits that the customer will be getting from buying the
product.
● Generic product - The impact of the product to the consumer, not the seller. Signify the
purpose of existence.

Types of Products
1. Goods - Tangible products that can measure the satisfaction result or evidence as
manifested through physical development.
a. Durable goods - The physical products that are used over a long period of time.
b. Non-durable goods - The physical products that are quickly and easily consumed
or worn out.
2. Services - Intangible products that satisfaction can be measured in future references
a. Rented-goods services - The consumer rented facility.
b. Owned-goods services - The repair and maintenance services.
c. Non-good services - Personal services; most common are the expertise and
profession of the seller.

Customer Service in the Enterprise

1. Define/list the customer service the company provide
2. What are the company’s strengths and weaknesses?
3. Give strategies for improving the company’s customer service

Characteristics of Services
1. Intangibility - The services cannot be displayed, transported, stored, packaged or
inspected before buying
 2. Credibility - Provided most of the time counts.
3. Inseparability - The service provider and services that cannot be separated. Cannot
accomplish the purpose if one is missing.
4. Variability - When the service is difficult to standardize because it varies upon the
performance of the provider.

Consumer Products
- These are the goods and services produced for the final consumer for personal, family or
household use.
● Convenience Products - Purchased with minimum or less effort because the buyer has
knowledge of product characteristics prior to shopping.
1. Staples - Low priced items that are routinely purchased on a regular basis.
2. Impulse products - Items that the consumer does not plan to buy. Customers
were attracted to buy the product.

● Shopping products - Products that the consumer acquire through further knowledge and
information in order to make a final purchase.
1. Attributed-based shopping products - Provide customers with information and
evaluate product features, performances, options, warranties and other factors.
2. Price-based shopping products - Enable customers to judge product attributes to
be the same and look around for the least expensive items.

● Speciality products - Items with particular brands and stores to which consumers are
loyal.

Industrial Products
- Goods and services purchased for use/consumption in the production/manufacturing of
other goods and services. In the operation of a business or for resale to other customers.
1. Accessories equipment - Selected priced portable goods which last a long period
of time.
 2. Raw materials - Unprocessed basic materials from extractive and agricultural
industries.
3. Industrial or operating supplies - Inexpensive convenience goods which are
rapidly consumed and are necessary for the day-to-day operation of the firm.
4. Component materials - Semi-manufactured goods which undergo further
changes in form and later to be a part of the finished products.
5. Installations - Very expensive materials, non-portable goods which are used in
the production process.
6. Fabricated parts - Finished products.

New Product Development Process

The process consist of two sets:
● Internal - Looks at the company’s objectives and resources.
● External - Looks at the customer’s needs and wants.

Product Satisfying Features

- Product patronage in the market is conditioned by the strategies and policies employed by
the manufacturer and the marketing organization on the product’s attributes.
1. Design - It matters to the elements that collectively form of good or service that
will satisfy customers. Good design can improve the marketability of the product.
The distinctive design significantly differentiates the products from the other
market.
2. Product colors - It is the customer’s rejection and acceptance of the product. The
possibility of differential advantage comes in knowing the right color combination
that will appeal to customers.
3. Product quality - Features and attributes of a product or service that determine
its ability to satisfy human needs. Optimal quality refers to a situation in which
the product or service provides the customers with an experience that meets their
expectations.
4. Product warrantees - Very important attribute. It is where the buyer is assured
that the product meets the specifications stated in the product labels.