ENTREPRENEURSHIP WEEK1

ENTREPRENEUR
-An individual who creates a new business,bearing most of the
risks and enjoying most of setting up as business is known s a
ENTREPRENEURSHIP
The entrepreneur is commonly seen as an innovator,a source
of new ideas,goods services and business/ or procedures.

ENTREPRENEURSHIP
A science of converting ideas into business. It is a process of actions
of an entrepreneur who is always in search of something new to
exploit new ideas into gainful opportunities by accepting the risk
and uncertainty of the enterprise. It is about execution of ideas.

ENTREPRENEURIAL IDEA
A specific innovative way to satisfy want,overcome a
problem,or meet a challenge.

ENTREPRENEURIAL OPPORTUNITY
Defined as a want, problem, or challenge that can be addressed,
solved, and/or satisfied by an innovative initiative.

Derived from the French verb

enterprendre which means “to undertake”. They are innovators,
willing to take risks and generate new ideas to create unique and
potentially profitable solutions to modern-day problems.

ENTERPRISE
An organization that is engage in commercial activities – the trade
of goods or services, or both,with consumers. Its goal basically, is to
earn profit.
 TYPES OF ENTERPRISES ACCORDING TO CONCEPT:

AN ENTERPRISE CAN INVOLVE A NEW CONCEPT

This usually means creating or stumbling on a new idea or concept,
and creating or inventing something radically new.

AN ENTERPRISE CAN BE BUILT ON AN EXISTING CONCEPT, BUT GIVING RISE

TO A NEW BUSINESS.
This usually means creating a new business based on the existing
concept. An example of this is Mang Inasal. It offers chicken in a
new light: grilled chicken as fast food.

AN ENTERPRISE CAN INVOLVE AN EXISTING CONCEPT AND AN EXISTING

BUSINESS.
An entrepreneur can have a laundry business. Dean of Clean, for
example, had three branches in Metro Manila, mostly in the center
and south areas of the metropolis. The son of the owner, while still
in college, was permitted by his parents to set up a fourth branch in
Quezon City.

THE THE THE TRAITS OF AN ENTREPRENEUR

a. INITIATIVE - does things before being asked
b. PROACTIVE- identifies and utilizes opportunities
c. PERSEVERANCE - works against all odds to overcome obstacles and
is never complacent with success d.
PROBLEM-SOLVER- introduces innovative solutions to any obstacles
and problems in the enterprise
e. PERSUASION - convinces customers an financiers to patronize his
business
f. SELF-CONFIDENCE - makes decisions and sticks to his decisions
g. SELF-CRITICAL - learns from his mistakes and from experiences of
others
h. A PLANNER - collects information, prepares a plan, and monitors
performance
i. RISK-TAKER - willing to take calculated risks
j. CREATIVITY - the ability to come up with clever, workable solutions
k. BUSINESS LIKE ATTITUDE - possessing the knowledge of your
chosen business and having the savvy to conduct business
l. CONFIDENCE - having a firm belief in your own capabilities and
your chances of success
m. RELATION SKILLS - the ability to get along with others, to inspire
cooperation, confidence and loyalty
n. COMMUNICATION SKILLS - the ability to express yourself and to
understand others so that ideas can be shared
o. ABILITY TO MAKE DECISIONS - the talents to analyze complex
situations and draw conclusions that will make the business succeed.

Relevance of Entrepreneurship
a) Development of managerial capabilities Entrepreneurship helps in
identifying and developing managerial capabilities of entrepreneurs

b) Creation of organizations Entrepreneurship results in the creation

of organizations when entrepreneurs assemble and coordinate
physical, human and financial resources and direct them towards
achievement of objectives through managerial skills.

c) Improving standard of livign Entrepreneurship helps in making a

wide variety of goods and services available to the society which
results into higher standard of living for the people.
d) Means of economic development Entrepreneurship involves
creation and use of innovative ideas, maximization of output from
given resources, and development of managerial skills.

COMPETENCY-the mixture of knowledge, skills, and attitude

required to perform the entrepreneurial functions to attain the
organizational success.

CORE COMPETENCY- the ability for you to be competitive in the

entrepreneurial world. Common competency is the one that
describe the KAS (knowledge, skills, and attitude) present in all
entrepreneur.

Common Competencies of Entrepreneurship

Opportunity seeking -Entrepreneurs seek opportunities and turn it
into business.
Persistence -the ability to push and push toward the finish line,
even if the finish line seems comically out of reach.
Commitment to work contact -Entrepreneurs stand and commit to
what they have said. There are neither reasonable reasons nor
excuses.
Demand efficiency and quality -One key for a successful
entrepreneur is satisfying the client’s needs and demands which will
be achieved through efficient service and quality products.
Risk taking -One capacity of an entrepreneur is to know when to
take the opportunity and calculate the risk to avoid the possibility
of killing ventures because of too much risk taking.
Goal setting -Successful entrepreneurs set and achieve goals
accordingly and stretch themselves to the widest possibility they
can be.
Information seeking -An entrepreneur never stopped seeking
valuable information that contributes to its success and further
innovations.
Systematic Planning and monitoring -One key to achieve this goal is
systematic planning and monitoring. Every entrepreneur knows it
very well.
Persuasion and Networking -Entrepreneurs must know when and
whom they should pursue potential loyal clients.
Self-confidence -a key part for the success of a business. It is the
difference between having faith in yourself and feeling scared out
of wits.

LEADERS Successful entrepreneurs always have the heart of a

leader. To be successful leaders, they must be a source of
inspiration for their employees.

COMMUNICATORS Entrepreneurs know how to use all forms of

communication to effectively share ideas and address certain
concerns with their customers or employees.

SPECIALISTS Entrepreneurs are experts in their chosen business.

They are tactical and are very keen with details.

PROBLEM SOLVERS Entrepreneurs possess critical thinking skills and

look at problems as challenges or puzzles that they need to solve.

FACTORS AFFECTING ENTREPRENEURSHIP

Personality Factors which includes:

A. Initiative – which means doing things even before being told
B. Proactive – which means he can classify opportunities d 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
F. A Planner - meaning he makes plan before doing things and do
not fail to monitor it.
G. Risk taker - which means that he is willing to gamble but he will
calculate it first. Environmental Factors which include political ,
climate, legal system, economic, and social conditions and market
situations.
ENTREPRENEURSHIP WEEK2

TYPES OF ENTREPRENEURSHIP
1. Innovative entrepreneur - They are those who always make new
things by thinking of new ideas. They have the ability to think of
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 entrepreneur - 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.

IMPORTANCE OF ENTREPRENEURSHIP

• Entrepreneurship generates new wealth in an economy.

• Entrepreneurship decreases poverty.
• It creates opportunities, ensures social justice, instills confidence
and stimulates the economy.
• Entrepreneurship improves productivity.
• Entrepreneurs create jobs.
• Entrepreneurs innovate.
• Entrepreneurs create innovation and social change.
• Entrepreneurs give to society.

RELEVANCE OF ENTREPRENEURSHIP TO AN
ORGANIZATION
1. Development of Managerial capabilities – this
means that one of the benefits an entrepreneur gets
is to develop his managerial skills.
2. Creation of Organizations – which means that because of
entrepreneurships 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.

RELEVANCE OF ENTREPRENEURSHIP TO SHS

STUDENTS

1. To prepare students for livelihood even before college.

2. Entrepreneurship education aids students from all socioeconomic
backgrounds to think outside the box and nurture unconventional
talents and skills.
3. Entrepreneurship develops their initiative and helps them to be
more creative and self-confident in whatever they undertake and to
act in a socially responsible way.
4. It exposes students to numerous opportunities to learn how to
think critically and analyze the pieces on the board.
5. Being aware of all the important factors and seeing how they
affect each other is the foundation of a smart decision-making
process.
6. Students must be exposed to real-world examples and learn from
their own experience.
7. Entrepreneurship education requires students to be innovative,
creative, and collaborative with others.
8. Entrepreneurship education provides budding entrepreneurs with
the skills and knowledge to come up with business ideas and
develop their own ventures.

JOB OPPORTUNITIES FOR ENTREPRENEURSHIP AS A CAREER

1. Business Consultant. They are those who can go to client site,
identify problems and fix them.
2. Sales Manager. Someone who knows how to represent a company,
manage accounts and follow up leads. Their responsibilities include
designing and implementing a strategic sales plan that expands
company's customer base and ensure its strong presence.
3. 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.
4. 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.
5. Teacher - These educators train their students to solve business
problems, plan for future growth, and strategize how to run a
business efficiently and effectively.
6. Talent Recruiter - Someone whose job is in sourcing, attracting,
recruiting, interviewing, and on-boarding employees to an
organization.
7. Business Reporter - Someone who can write articles is in a prime
position to take the lead on covering a local business beat. They
write breaking news and business stories in unique and interesting
ways to increase readership.
8. New Venture Creator - Someone who launch a company, start a
new venture.

JOB OPPORTUNITIES FOR ENTREPRENEURSHIP AS A CAREER

Business Consultant – with the expertise of the entrepreneur he can
be a very good source of advice to other entrepreneurs and would be
a businessman.
Teacher – a graduate of entrepreneurship can use his

knowledge in teaching.
Researcher – the entrepreneur can be employed as a researcher by
an enterprise.
Sales – the entrepreneurship graduate can apply as a salesman.
Business Reporter – the entrepreneur being expert in the field, he can
be employed as a business reporter.

ESSENTIALS IN ENTREPRENEUR’S OPPORTUNITY

SEEKING
Entrepreneurial mind frame. This allows the entrepreneur to see
things in a very positive and optimistic way in the midst of difficult
situations.
Entrepreneurial heart flame. Entrepreneur’s driven passion, they are
attracted to discover satisfaction in the act and process of discovery.
Entrepreneurial gut game. This refers to the ability of the
entrepreneur of being intuitive. This is also known as intuition.

Some are the following sources of opportunities:

1.Changes in the environment -Entrepreneurial ideas arise when
changes happen in the external environment. A person with
entrepreneurial drive views these changes positively.
1.1 The physical environment includes
a. Climate - the weather conditions.
b. Natural resources - such as minerals,forests, water, and fertile
land that occur in nature and can be used for economic gain.
c. Wildlife - include all mammals, birds, reptiles,fish, etc., that live in
the wild.
1.2 The Societal environment the various forces includes like
a. Political forces - includes all the laws, rules, and regulations that
govern business practices as well as the permits, approvals, and
licenses necessary to operate the business.
b. Economic forces - such as income level and employment rate.
c. Sociocultural forces - customs, lifestyles, and values that
characterize a society.
d. Technological environment - new inventions and technology
innovations.
1.3 The industry environment of the business includes:
a. Competitors
b. Customers
c. Creditors
d. Employees
e. Government
f. Suppliers
2. Technological discovery and advancement -A person with
entrepreneurial interest sees possibility of business opportunities in
any new discovery or because of the use of the latest technology.
3. Government’s thrust, programs, and policies -The priorities, projects,
programs, and policies of the government are also good sources of
ideas.
4. People’s interest -The interests, hobbies, and preferences of people
are rich source of entrepreneurial ideas. Like the increasing number
of Internet cafe at present could be lead to the strong attachment of
young people to computers.
5. Past experiences -The expertise and skills developed by a person
who has worked in a particular field may lead to the opening of
related business enterprise.

FORCES OF COMPETITION MODE

It is also known as the “five forces of competition,” An industry
environment is a competitive environment. Regardless of what
product or services you have, competition is always present.
Five forces competing within the industry:

1. BUYERS -The buyers are the one that pays cash in exchange to your
goods and services. For example, the influence of the price or in the
bargaining strategy. The buyer has a strong and magnified
bargaining power.

The threat of its bargaining power will be less if the following

factors notice:
• There are several suppliers available in the market.
• The buyer has the potential for backward integration.
• The cost of switching the supplier cost is minimal.
• The product represents a high percentage of the buyer’s cost.
• The buyer purchases large portions of the seller’s product or
services.

2. POTENTIAL NEW ENTRANTS -A new entrant is defined as the one who

enters something. For example, the level of capital requirements, if
the business requires huge capital, new entrants should decline to
join the business.

This can be notice if there is the presence of the following

factors:
• Substantial capital requirement.
• Strict government policy.
• Difficulty in accessing distribution channels.
• Economies of scale.
• High cost of product differentiation.
• High switching cost

3. Rivalry among Existing Firms -Rivalry is a state or situation in which

people or groups are competing with each other.
The intensity of rivalry among existing firms is characterized
to the following factors:
• Diversity of rivals.
• Number of competing firms.
• Characteristics of the products or services.
• Increased capacity.
• Amount of fixed costs.
• Rate of industry growth.

4. SUBSTITUTE PRODUCTS -Substitute means anything that takes the place

or function of another.
A substitute product can give a big threat in the industry
environment if the following factors are notice:
• Switching cost is low.
• Preferences and tastes of the customers easily change.
• Product differentiation is highly noticeable
• The quality of substitute products dramatically improves.
• The price of substitute products is substantially lower.

5. SUPPLIERS -The Suppliers are the one that provide something that is
needed or wanted. For example if the supply and services being offered
are unstable or keep.
This can be notice if there is the presence of the following factors:
• The supplier has the ability for forward integration.
• Suppliers in the industry are few, but the sales volume is high.
• Substitute products are not readily available in the market
• The switching cost is very high.
• The product or service is unique
ENTREPRENEURSHIP WEEK3

Recognize and Understand the Market

Value Proposition (VP) is a business or marketing statement that
summarizes why a consumer should buy a company's product or use
its service. In creating Value Proposition, entrepreneurs will
consider the basic elements:
• Target Customer
• Needs/opportunity
• Name of the product
• Name of the enterprise/company

An important aspect in Value Proposition must be truthful that will

establish credibility to the consumers.
EXAMPLE: Potential value proposition is most common in small
businesses of your locality. Aling Charing Sari-sari Store open only
from 6:00 am to 6:00 pm, but Aling Charing noticed that there are
customers who go nearby town to look for a convenience store at
around 10:00 pm to 6:00 am. She believes that this is a great
opportunity for her store to operate 24/7. In this example, proposed
value proposition: “Charing Sari-sari Store, opens 24/7”

Unique selling proposition (USP) refers to how you sell your product
or services to your customer. You will address the wants and
desires of your customers. Some tips for the entrepreneur on how to
create an effective unique selling proposition to the target
customers:
• Identify and rank the uniqueness of the product orservices
character
• Very Specific
• Keep it short and simple (KISS)
Unique Value Proposition and Value Proposition are two most
famous tools used to explain why prospect customers buy each
products and services. Base on each definition, we learn that USP
and VP are frameworks of each business industry. The two
propositions are valuable for the entrepreneurs.

A. Target Market
Targeting is a sage in market identification process that aims to
determine the buyers with common needs and characteristics.
Prospect customers are market segment that entrepreneurial
venture intends to serve.

Commonly used methods for segmenting the market are follows.

1. Geographic segmentation – the total market is divided according

to geographical location.
• Variable to consider
a. Climate
b. Dominant ethnic group|
c. Culture
d. Density (either rural or urban)
2. Demographic Segmentation – divided based consumers.
• Variable to consider
a. Gender e. Education
b. Age f. Religion
c. Income g. Ethnic group
d. Occupation h. Family size

3. Psychological Segmentation- divided in terms for customers think

and believe.
• Variable to consider
a. Needs and wants e. Knowledge and awareness
b. Attitudes f. Brand concept
c. Social class g. Lifestyle
d. Personality traits
4. Behavioral Segmentation- divided according to customers
behavior pattern as they interact with a company.
• Variable to consider
a. Perceptions d. Benefits
b. Knowledge e. Loyalty
c. Reaction f. Responses

B. Customer Requirements Customer requirements are the specific

characteristics that the customers need from a product or a service.
There can be two types of customer requirements:
1. Service Requirement
2. Output Requirement

Service Requirement: Intangible thing or product that is not able to

be touched but customer can feel the fulfillment. There are elements
in service requirement like on-time delivery, service with a smile,
easy-payment etc.
Output Requirements: Tangible thing or things that can be seen.
Characteristic specifications that a consumer expects to be fulfilled
in the product. Costumer that will avail services as a product, then
various service requirements can take the form of output
requirements.

C. Market Size
Entrepreneur’s most critical task is to calculate the market size, and
the potential value that market has for their startup business.
Market research will determine entrepreneur possible customers in
one locality.
What is Market Size? Market size is like a size of arena where the
entrepreneurs will play their business. It is the approximate number
of sellers and buyers in a particular market. Companies are
interested in knowing the market size before launching new product
or service in the area.
In determining the market size, entrepreneur will conduct a strategic
marketing research from reliable sources using the following
method:

• First step is to estimate the potential market – approximate

number of customers that will buy the product or avail your services.
• Second step is to estimate the customers who probably dislike to
buy your product or avail the services.
• Third step is for the entrepreneur to estimate the market share,
that means plotting and calculating of the competitor’s market share
to determine the portion of the new venture.

BUSINESS PLAN- Is written document describing the

nature of the business, the sales and marketing strategy, and 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.
PRODUCT OPPORTUNITY- Exist when there is
a gap between what is currently on the market and the possibility for new
or significantly improved products that result to emerging trends.

SOURCES OF INNOVATIVE OPPORTUNITY

INTERNALLY FOCUSED
• The unexpected (unexpected success, failure, or outside events).
An entrepreneur may be able to discover opportunity such as in
failures like overproduction of fresh tomatoes thus the entrepreneur
was able to preserve tomatoes through drying or boiling.
• The incongruity between reality as it actually is and reality as it is
assumed to be or as it ought to be. Children doesn’t choose
vegetables over meat but now in reality entrepreneurs are making
ways that children will love vegie foods like shawarma, vegie
dumplings and the like. Children doesn’t choose vegetables over
meat but now in reality entrepreneurs are making ways that children
will love vegie foods like shawarma, vegie dumplings and the like.
• Innovation based on process need. In the pandemic times, medical
face mask become scarce to cope with the need, entrepreneurs
provided reusable facemask for nonmedical practitioners.
• Changes in industry structure or market structure that catch
everyone unawares. The market competition becomes an opportunity
like the popping up of convenience stores which grew like
mushrooms around the city blocks.
• Demographics (population (population changes). Like age, status,
race, sex is an entrepreneurial bases for opportunity for each factor
needs to be considered in providing goods and services.
• Changes in perception, mood, and meaning. The uniqueness of every
individual creates differentiation of the offered goods and services
like the choice of perfume scents.
• New knowledge, both scientific and non-scientific. Acquired
information both from scientific or in non-scientific way can easily
get into the ideas of an entrepreneur.

TWO WAYS TO RECOGNIZE OPPORTUNITIES

• Entrepreneurs discover opportunities when they search for them in
existing markets.
• Entrepreneurs create opportunities when they engage with others
in bouncing ideas back and forth, and each time it becomes more
specific what the user needs are and how they are going to be
solved.
Your Market Consist of:
Existing customers: People who have already purchased your product;
Your Market Consist of:
Prospects: People who have not yet purchased your product but are
considering it and,
Target market users: People in your target market who are not currently
looking for a solution.

SPOTTING BUSINESS OPPORTUNITIES Observation skills and

keeping an ear to the ground are traits of successful entrepreneurs.
Spotting an opportunity is the only first step but to convert the idea to a
business requires good execution skills.