ENTREPRENEURSHIP

3rd QUARTER REVIEWER

Entrepreneurship- is a proactive process of developing a business a. Initiative b. Proactive c. Problem Solver d. Perseverance e.
venture to make a profit. It involves seeking opportunities for a market, Persuasion f. A Planner g. Risk-taker
establishing and operating a business out of the opportunity, and 2. Environmental Factors- which include political, climate, legal
assessing its risks and rewards through close monitoring of the system, economic and social conditions and market situations.
operations.
 one of the resources economists categorize as integral to Competencies in entrepreneurship play a leading role in making
production; resources are land/natural resources, labor entrepreneurs successful.
and capital.
 as the process of designing, launching and running a new Entrepreneurial competencies facilitate opportunity recognition,
business, which typically begins as a small business, such as help adapt rapidly to changes, enhances business performance,
a startup company, offering a product, process or service for strengthen the firm’s competitive position and stir the achievement of
sale. It is the process of discovering new ways of combining organizational success. It is the sum total of the personality, skills and
resources. knowledge that the entrepreneur possesses, which are necessary to
 The act of creating a business or businesses while building effectively perform their functions and responsibilities.
and scaling it to generate a profit.
 An important driver of economic growth and innovation. Competence is an underlying personal characteristic which leads to
 What people do to take their career and dreams into their superior performance. It is a combination of knowledge, skills,
hands and lead it in the direction of their own choice. attitudes, and motives (baseread.com).
 About building a life on your own terms. No bosses. No
restricting schedules. And no one holds you back. Core competence is the foundation for sharpening a company's
 primary goal is to generate a profit. competitive edge and it guides brand reputation, business growth, and
marketing strategy.
Entrepreneur- derived from the French verb enterprendre, which
means “to undertake”. This refers to those who “undertake” the risk of Common competence is one that describes knowledge, skills and
new enterprises. An enterprise is created by an entrepreneur. abilities found in most or all position.
 A person who sets up a business with the aim to make a
profit and creates a new business, bearing most of the risks Ex. If Promotions and Advertising are core competency in
and enjoying most of the rewards. Entrepreneurship; listening to the sentiments of workers is a common
 An innovator, a source of new ideas, goods, services, and competency in Entrepreneurship.
business/or procedures.
 Playing a key role in any economy, using the skills and Ex. If good human relations is to Interpersonal Competency; Visioning
initiative necessary to anticipate needs and bring good new is to Core Competency.
ideas to market.
Businesses are the backbone of the economy. Entrepreneurs play an
Importance of Entrepreneurship important role in developing the economy through providing the
1. Entrepreneurship generates new wealth in an economy. needed products and services including the solution to the problem of
2. Entrepreneurship decreases poverty. unemployment.
3. It creates opportunities, ensures social justice, instills confidence
and stimulates the economy.
4. Entrepreneurship improves productivity TYPES OF ENTREPRENEURS
5. Entrepreneurs create jobs. 1. Innovative Entrepreneurs - They are those who always make new
6. Entrepreneurs innovate. things by thinking of new ideas. They have the ability to think newer,
7. Entrepreneurs create innovation and social change better and more economical ideas.
8. Entrepreneurs give to society 2. Imitating Entrepreneurs- They are those who don’t create new
things but only follow the ideas of other entrepreneurs.
IMPORTANCE OF ENTREPRENEURSHIP TO SHS STUDENTS 3. Fabian Entrepreneurs- They are skeptical about changes to be
1. To prepare students for livelihood even before college. made in the organization. They don’t initiate but follow only after they
2. Entrepreneurship education aids students from all socioeconomic are satisfied.
backgrounds to think outside the box and nurture unconventional 4. Drone Entrepreneurs- They are those who live on the labor of
talents and skills. others. They are die-hard conservatives even ready to suffer the loss of
3. Entrepreneurship develops their initiative and helps them to be business.
more creative and self confident in whatever they undertake and to act 5. Social Entrepreneurs- They are those who initiate changes and
in a socially responsible way. drive social innovation and transformation in the various fields such as
4. It students exposes numerous opportunities to learn how to think education, health, human rights, environment and enterprise
critically and analyze the pieces on the board. development.
5. Being aware of all the important factors and seeing how they affect
each other is the foundation of a smart decision making process ENTREPRENEURIAL PROCESS
6. Students have to be exposed real-world examples and learn their  can be defined as the steps taken in order to begin a new
own experience. enterprise. It is a step-by-step method one has to follow to
7. Entrepreneurship education requires students to be innovative, set up a business.
creative and collaborative with others. 1. Opportunity Spotting And Assessment - This is the beginning of
8. Entrepreneurship education provides budding entrepreneurs with the process and is considered the most difficult. Entrepreneurs at this
the skills and knowledge to come up with business ideas and develop point take note of interesting trends in their environment.
their own ventures. 2.Developing the Business Plan- Entrepreneurs should develop a
business plan when they have already spotted and assessed the
THREE LEVELS OF COMPETENCIES: opportunities for a market.
1. Personal competencies – These are your abilities to ground
yourself so that you are secure and self assured in whatever situation Business is defined as an organization or enterprising entity engaged
you may find yourself. Ex. creativity, integrity, self-criticism. Ex. You in commercial, industrial, or professional activities.
face unexpected criticism during a meeting, you need to possess  can be for profit entities or non-profit organizations that
Personal Competencies to stay composed, confident, and effectively operate to fulfill a charitable mission or further a social
handle the situation. cause.
2.Interpersonal competencies – These are your ability to lead,
influence, communicate, supervise, negotiate, and control people at all Business plan is a formal written document containing business
levels. It is the ability to get along with people and motivate people to goals, the methods on how these goals can be attained, and the time
perform jobs. Entrepreneurs must effectively. Ex. manage people frame within which these goals need to be achieved.
communication, engagement, delegation  is a roadmap that details where the cooperative is going and
Ex. A teammate is upset because they feel their ideas are not being how to get there. It explains what the business is and how it
heard during group discussions, you need to possess Interpersonal will be operated. Having a good business plan will help
Competencies to approach and help them and help resolve the issue to cooperatives minimize risks of failure.
maintain a positive team environment.
3. Business competencies – These are set of particular abilities and 3. Determining the capital needed- A big idea can never be
knowledge that sets a company apart from its competitors. It also translated into reality if the entrepreneur’s resources are limited.
refers to the key characteristics that successful entrepreneurs should 4.Running a business-This is the part where the entrepreneur should
have in order to be successful. Ex. business management, networking. use the resources allocated for the new venture.
Ex. You are tasked with reducing costs for a project without
compromising its quality, you need to possess Business competencies THE 3S OF OPPORTUNITY SPOTTING AND ASSESSMENT
to approach this challenge to ensure the project remains on track and 1.Opportunity Seeking- is the first step and is the most difficult
meets business goals. process of all due to the number of options that the entrepreneur will
have to choose from. It involves the development of new ideas from
Factors Affecting Entrepreneurship various sources.
1. Personality Factors include: ESSENTIALS IN OPPORTUNITY SEEKING
  Entrepreneurial mind frame - This allows the 1. Preferences and tastes of the customers easily change.
entrepreneur to see things in a very positive and optimistic 2. Product differentiation is highly noticeable.
way in the midst of difficult situation. Being a risk - taker, an
entrepreneur can find solutions when problems arise.
 Entrepreneurial heart flame - are Entrepreneurs are
driven by passion; they attracted to discover satisfaction in 5. Suppliers
the act and process of discovery. Passion is the great desire The Suppliers are the one that provide something that is
of an entrepreneur to achieve his/her goals. needed in business operations such as office supplies and equipment.
 Entrepreneurial gut game - This refers to the ability of the In an example where supplies and services being offered is unstable
entrepreneur of being intuitive. This also known as intuition. the intensity of the threat is strong in this kind of the competitive force
The gut game also means confidence in one’s self and the in the industry.
firm belief that everything you aspire can be reached.
POTENTIAL MARKET AND THE MARKET NEED
2.Opportunity Screening- is the process that cautiously selecting MARKET ➢ A market is any place where sellers of particular goods or
the best opportunity. The selection will depend on the entrepreneur’s services can meet with buyers of those goods and services. It creates
internal intent or the main objective that the business will accomplish the potential for a transaction to take place. The buyers must have
in the entrepreneur’s life, and the external intent, which will address something they can offer in exchange for the product to create a
the compelling needs of the target market. successful transaction.
3.Opportunity Seizing- is the last step in opportunity spotting and  not only refer to a particular place but it refers to a market
assessment. This is the “pushing through” with the chosen opportunity. for a commodity or commodities. It refers to an arrangement
whereby buyers and sellers come in close contact with each
Sources of Opportunities other directly or indirectly to sell and buy goods (Shaikh, S.,
1. Changes in the environment - Entrepreneurial ideas arise when retrieved 2020).
changes happen in the external environment. A person with an In Entrepreneurship, market is the total buyers and sellers in the area
entrepreneurial drive views these changes positively. External under consideration.
environment refers to the physical environment, societal environment,
and industry environment where the business operates. Your market consists of:
2. Technological discovery and advancement 1. Target market users- People in your target market who are not
-A person with entrepreneurial interest sees possibility of business currently looking for a solution.
opportunities in any new discovery or because of the use of latest 2. Prospects- People who have not yet purchased your product but are
technology. considering it.
3. Government’s thrust, programs, and policies 3. Existing customers- People who have already purchased your
-The priorities, projects, programs, and policies of the government are product.
also good sources of ideas.
4. People’s interest THE MARKET NEED
-The interest, hobbies, and preferences of people are rich sources of It is something that is necessary. A motivating force that compels
entrepreneurial ideas, like the increasing number of Internet Cafés at action for its satisfaction. Needs range from basic survival needs
present could lead to the strong attachment of young people to (common to all human beings) satisfied by necessities, to cultural,
computers. intellectual, and social needs (varying from place to place and age
5. Past experiences group to age group) satisfied by necessaries.
-The expertise and skills developed by a person who has worked in a
particular field may lead to the opening of a related business Potential market is the part of the total population that has shown
enterprise. some level of interest in buying a particular product or service.
 Potential market is also called Total Addressable market
Forces of Competition Model (TAM) (MBA Skool Team, 2018).
It is also known as the “five forces of competition”. An industry  the part of the market you can capture in the future. It
environment is a competitive environment. Regardless of what product includes the demographic groups that are not currently your
or services you have, competition is always present customers but could become customers in the future (Lake,
COMPETITION – it is the act or process of trying to get or win L, 2019).
something.
For example, the prices are lower when there is a competition among Market potential is the total demand for a product in a given
the stores business environment (Bhasin, H., 2018).

These are the five forces competing within the industry: Reaching Your Potential Market
1. Buyers Once you've identified and chosen a potential market to begin
- are the ones that pay cash in exchange for your goods and targeting, you will need new marketing strategies in place to
services. One example is the influence of the price or in the bargaining communicate with them. Use this profile to identify: The demographic
strategy. The buyer has a strong and magnified bargaining power. information that people in a group have in common. The best forms of
Factors that influence the buyer to have a less threats because of the media to reach them.
bargaining power:
1. The buyer has the potential for backward integration. The concerns, struggles, or problems that you can help them
2. The cost of switching the supplier cost is minimal. overcome. What values matter to them, both in everyday life and when
shopping. The language that resonates with them.
2. Potential New Entrants
-is defined as companies or businesses that have the ability to Available Market - Prospects who are willing and capable (have
penetrate or enter into a particular industry. For example, in the level sufficient resources) buyers, and have access to a particular market
of capital requirements, if the business requires huge capital, new (www.businessdictionary.com). or service Defined as the number of
entrants should decline to join the business. people who are both willing and capable of buying a particular product
or service in a particular market (MBA Skool Team, 2020).
3. Rivalry among Existing Firms
Rivalry is a state or situation wherein business Target Market - Refers to a group of potential customers to whom a
organizations are competing with each other in a particular market. For company wants to sell its products and services. Target markets are
example, it depends on the marketing strategy of your competitor, like generally categorized by age, location, income, and lifestyle. Defining
giving freebies and special offers. a specific target market allows a company to home in on specific
market factors to reach and connect with customers through sales and
4. Substitute Products marketing efforts. (Kenton, W., 2019).
Substitute is one that serves the same purpose as
another product in the market. For example, the consumers decide to Penetrated Market - A set of customers or clients who are already
use margarine as a substitute for butter. In case the price of butter using a particular product or service. A penetrated market means that
increases, preferably the consumer will gradually switch to margarine. the potential users of a product or service are aware of it, and in many
The factors of the substitute product that pose a great threat in the cases are active consumers of it.
industry environment: