ENTREPRENEURSHIP

MODULE 1 – INTRODUCTION TO ENTREPRENEURSHIP

I. Meaning of Entrepreneurship and Entrepreneur
□ Entrepreneurship This is an act of creating a business or businesses while building
and scaling it to generate a profit. It is an important driver of economic growth and
innovation. What people do to take their career and dreams into their hands and lead
it in the direction of their own choice. It is about building a life on your own terms. No
bosses! No restricting schedules! And no one holds you back! (Batalla 2011).
□ An entrepreneur is… A person who sets up a business with the aim of making a profit
and creating a new business, bearing most of the risks and enjoying most of the
rewards. An innovator, a source of new ideas, goods, services, and business/or
procedures. Playing a key role in any economy, using the skills and initiative
necessary to anticipate needs and bring good new ideas to market (Batalla 2011).

II. Importance of Entrepreneurship

1. Entrepreneurship generates new wealth in an economy.
2. Entrepreneurship decreases poverty.
3. It creates opportunities, ensures social justice, instills confidence and stimulates the
economy.
4. Entrepreneurship improves productivity
5. Entrepreneurs create jobs.
6. Entrepreneurs innovate.
7. Entrepreneurs create innovation and social change
8. Entrepreneurs give to society

III. 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 have to 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.

IV. 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.

V. 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”. Entrepreneurs are innovators, willing to take risks and generate
new ideas to make it unique and profitable solutions to the present-day problems.

VI. Factors Affecting Entrepreneurship

1. Personality Factors which includes:
a. Initiative- which means 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.
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.
2. Environmental Factors which include political, climate, legal system, economic and
social conditions and market situations.

VII. 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 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- controlling a situation by making things to happen or by preparing for
possible future problems.
6. Risk Taker- they have the courage to pursue what is their business ideas.
7. Innovative- the entrepreneurs have big business ideas and they do not stop
improving and thinking of new worthwhile ideas for their business.

VIII. Core Competencies in Entrepreneurship

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- Entrepreneurs constantly look for new ideas, thus he needs to be
creative.
3. Profit Potential- meaning the entrepreneur can be compensated by his profit coming
from the operation.
4. Risk bearing –meaning the entrepreneur needs to gamble but wise enough to offset
the risk.

IX. Types of entrepreneurs

1. Innovative entrepreneur- they are those who always make new things by thinking
of new 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 those skeptical. They don’t initiate but follow only
after they are satisfied.
4. Drone entrepreneur- they are those who lives 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 in the various fields such
as education, health, human rights, environment and enterprise development.

Career Opportunities of Entrepreneurship

1. Business Consultant- with the expertise of the entrepreneur he can be a very good
source of advice to other entrepreneurs and would be business man.
2. Teacher- a graduate of an entrepreneurship can be use his knowledge in teaching
3. Researcher- the entrepreneur can be employed as researcher by an enterprise.
4. Sales- the entrepreneurship graduate can apply as salesman
5. Business Reporter- the entrepreneur being expert in the field, he can be employed
as business reporter.

MODULE 2 – RECOGNIZE A POTENTIAL MARKET

I. Entrepreneurial Ideas
 Creation of an entrepreneurial ideas leads to the identification of entrepreneurial
opportunities, which in turn results in the opening of an entrepreneurial venture.
The entrepreneurial process of creating a new venture is presented in the diagram
below. (Aduana, 2017)

II. Essentials in Entrepreneur’s Opportunity Seeking

These are the basic foundation that the entrepreneur must have in seeking
opportunities:
 Entrepreneurial mind frame. This allows the entrepreneur to see things in a very
positive and optimistic way in the midst of difficult situation. Being a risk - taker, an
entrepreneur can find solution when problems arise.
 Entrepreneurial heart flame. Entrepreneur's driven passion, they are attracted to
discover satisfaction in the act and process of discovery. Passion is the great desire of
an entrepreneur to achieve his/her goals.
 Entrepreneurial gut game. This refers to the ability of the entrepreneur of being
intuitive. This also known as intuition. The gut game also means confidence in one’s
self and the firm believes that everything you aspire can be reached.

III. Sources of Opportunities

There are many ways to discover opportunities. Looking at the big picture some have
noticed the emerging trends and patterns for business opportunities. While others are
trying to find out their target market. 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 an entrepreneurial drive views these changes positively.
External environment refers to the physical environment, societal environment, and
industry environment where the business operates.
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- includes all mammals, birds, reptiles, fish, etc., that live in the wild.
1.2 The Societal environment includes the various forces 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 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 interest, hobbies, and preferences of people are rich source of entrepreneurial
ideas. Like the increasing number of Internet Café at present could 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.

IV. Forces of Competition Model

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.
Competition – it is the act or process of trying to get or win something.
For example, the prices are lower when there is a competition among the stores.
These are the five forces competing within the industry:
• Buyers
• Potential new entrants
• Rivalry among existing firms
• Substitute products
• Supplier

1. Buyers
The buyers are the one that pays cash in exchange to your goods and services. For
example, the influenced 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:
a. There are several suppliers available in the market.
b. The buyer has the potential for backward integration.
c. The cost of switching the supplier cost is minimal.
d. The product represents a high percentage of the buyer’s cost.
e. 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 gives a threat to the business. This can be notice if there is the
presence of the following factors:
a. Substantial capital requirement.
b. Strict government policy.
c. Difficulty in accessing distribution channels.
d. Economies of scale.
e. High cost of product differentiation.
f. High switching cost

3. Rivalry among Existing Firms

Rivalry is a state or situation in which people or groups are competing with each other.
For example it depends on the Marketing strategy of your competitor, like giving freebies
and special offers. The intensity of rivalry among existing firms is characterized to the
following factors:
a. Diversity of rivals.
b. Number of competing firms.
c. Characteristics of the products or services.
d. Increased capacity.
e. Amount of fixed costs.
f. Rate of industry growth.

4. Substitute Products
Substitute means anything that takes the place or function of another. For example the
consumers decide to use margarine as a substitute for butter. In case the price of butter
increases, preferably the consumer will gradually switch to margarine.
A substitute product can give a big threat in the industry environment if the following
factors are notice:
a. Switching cost is low.
 b. Preferences and tastes of the customers easily change.
c. Product differentiation is highly noticeable
d. The quality of substitute products dramatically improves.
e. The price of substitute product 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 is unstable or keep. The intensity of the threat is
strong in this kind of the competitive force in the industry. This can be notice if there is the
presence of the following factors:
a. The supplier has the ability for forward integration.
b. Suppliers in the industry are few, but the sales volume is high.
c. Substitute products are not readily available in the market
d. The switching cost is very high.
e. The product or service is unique.