Entrepreneurship  Pursue things to get done regardless of challenges

5) Persuasion
 Entice people to buy even if they don’t want to
Entrepreneur
 Derived from the French verb enterprendre, which 6) Planner
means “to undertake”  Makes plans before doing things and does not fail
 Pinpointing to those who “undertake” the risk of to monitor it
enterprise
7) Risk-taker
 Willing to gamble but he will calculate it first
Entrepreneurship
 Enterprise and process created by an 2. Environmental Factors
entrepreneur  Political, climate, legal system, economic and
social conditions and market situations.

Relevance of Entrepreneurship to
An Organization
1. Development of Managerial Common Competencies in
 One of the benefits an entrepreneur gets is to Entrepreneurship
develop his managerial skills

2. Creation of Organizations 1. Decisive

 Because of entrepreneurship many organizations  Firm in making decisions
will exist
2. Communicator
3. Improving Standard of Living  Convincing power
 Entrepreneurship can lift up the economic status
of an individual 3. Leader
 Charisma to be obeyed by his employees
4. Means of Economic Development
 Not only the life of the entrepreneur is improved 4. Opportunity seeker
but also the society where the business is located  The ability to be the first to see business chances

5. Proactive
 Can control a situation by making things happen
Factors Affecting Entrepreneurship or by preparing for possible future problems

1. Personality Factors 6. Risk taker

 Courage to pursue business ideas
1) Initiative
 Doing things even before being told 7. Innovative
 Big business ideas and he does not stop improving
2) Proactive and thinking of new worthwhile ideas for his
 He can classify opportunities and seize it business

3) Problem solver
 Retain good relations with other people Core Competencies in
Entrepreneurship
4) Perseverance
1. Economic and Dynamic Activity 1. Business Consultant
 Entrepreneurship is an economic activity because  With the expertise of in the field of
it involves the creation and operation of an entrepreneurship, he can be a very good source of
enterprise advices to other entrepreneurs and would be
 With a view to creating value or wealth by business men
ensuring optimum utilization of limited resources
2. Teacher
2. Innovative  A graduate of an entrepreneurship can use his
 The entrepreneur constantly looks for new ideas, knowledge in teaching
thus he needs to be creative
3. Researcher
3. Profit Potential  Entrepreneur can be employed as a researcher by
 The entrepreneur can be compensated by his an enterprise
profit coming from the operation
4. Sales
4. Risk bearing  Entrepreneurship graduate can apply as a
 The entrepreneur needs to gamble but wise salesman
enough to offset the risk
5. Business Reporter
 Entrepreneur being expert in the field, can be
employed as a business reporter

Types of Entrepreneurs
1. Innovative Entrepreneurs
 Who always make new things by thinking of new
ideas
 Ability to think newer, better and more
economical ideas

2. Imitating Entrepreneurs
 Who don’t create new things but only follow the
ideas of other entrepreneurs

3. Fabian Entrepreneurs
 Skeptical about changes to be made in the
organization
 Don’t initiate but follow only after they are
satisfied

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

5. Social Entrepreneurs
 Who initiate changes and drive social innovation
and transformation in the various fields such as
education, health, human rights, environment and
enterprise development

Career Opportunities of
Entrepreneurship
Entrepreneurial Ideas  External environment refers to the physical
environment, societal environment, and industry
 The creation of an entrepreneurial idea leads to
environment where the business operates
the identification of entrepreneurial
opportunities, which in turn results in the opening
of an entrepreneurial venture
1) Physical environment
a. Climate
 The weather conditions
Entrepreneurial Process of Creating
New Venture
b. Natural resources
1. Creation of entrepreneurial Ideas  Minerals, forests, water, and fertile land that occur
2. Identification of entrepreneurial Opportunities in nature and can be used for economic gain
3. Opening of entrepreneurial Venture
c. Wildlife
 Mammals, birds, reptiles, fish, etc., that live in the
Essentials in Entrepreneur’s Opportunity – Seeking wild

Basic Foundation 2) Societal environment

a. Political forces
1. Entrepreneurial mind frame
 Laws, rules, and regulations that govern business
 Allows the entrepreneur to see things in a very
practices as well as the permits, approvals, and
positive and optimistic way in the midst of difficult
licenses necessary to operate the business
situation
 Being a risk-taker, an entrepreneur can find
b. Economic forces
solutions when problems arise
 Income level and employment rate
2. Entrepreneurial heart flame
c. Sociocultural forces
 Driven by passion; they are attracted to discover
 Customs, lifestyles and values that characterize a
satisfaction in the act and process of discovery
society
 Passion is the great desire of an entrepreneur to
achieve his/her goals
d. Technological environment
 New inventions and technology innovations
3. Entrepreneurial gut game
 Ability of the entrepreneur of being intuitive
 Also known as intuition
3) Industry environment
 Confidence in one’s self and the firm belief that
a. Competitors
everything you aspire can be reached
b. Customers
c. Creditors
d. Employees
e. Government
Sources of Opportunities f. Suppliers

 Some have noticed the emerging trends and

patterns for business opportunities, while others For example, the temperature is very high during
are trying to find out their target market summer but very low during the rainy season. An
individual with entrepreneurial drive can be extremely
1. Changes in the environment imaginative and inventive in identifying opportunities.
 Entrepreneurial ideas arise when changes happen He/she can venture on a business that responds to the
in the external environment needs of the people during summer and rainy season
 A person with an entrepreneurial drive views
these changes positively
2. Technological discovery and Forces of Competition Model
advancement
 also known as the “five forces of competition”
 A person with entrepreneurial interest sees
 An industry environment is a competitive
possibility of business opportunities in any new
environment
discovery or because of the use of latest
 Regardless of what product or services you have,
technology
competition is always present
 For example, an individual with knowledge in
 Competition is the act or process of trying to get
repair and installation of a machine engine
or win something
discovers additional engine parts that
 For example, the prices are lower when there is a
considerably reduce fuel consumption
competition among the stores

3. Government’s thrust, programs, 5 Forces Competing Within the

and policies Industry
 The priorities, projects, programs, and policies of
the government
 For example, the use of firecrackers to celebrate 1. Buyers
New Year’s Eve is strictly prohibited. People  The ones that pay cash in exchange for your goods
without entrepreneurial interest will view the and service
ordinance as a plain restriction. However, for an  The influence of the price or in the bargaining
entrepreneur, it is a business opportunity to come strategy, the buyer has a strong and magnified
up with a new product that will serve as a bargaining power
substitute for firecrackers  The threat of its bargaining power will be less if
the following factors are noticed:
4. People’s interest a. There are several suppliers available in the
 The interest, hobbies, and preferences of people market
are rich sources of entrepreneurial ideas b. The buyer has the potential for backward
 Like the increasing number of Internet Cafés at integration
present could lead to the strong attachment of c. The cost of switching the supplier cost is
young people to computers minimal
d. The product represents a high percentage of
5. Past experiences the buyer’s cost
 The expertise and skills developed by a person e. The buyer purchases large portions of the
who has worked in a particular field may lead to seller’s product or services
the opening of a related business enterprise
 For example, an accountant who has learned the
appropriate accounting and management skills 2. Potential New Entrants
and techniques in a prominent accounting firm  New entrants are companies or businesses that
can start his business venture by opening his own have the ability to penetrate or enter into a
accounting firm particular industry
 In 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 noticed 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 Definition of Terms
 State or situation wherein business organizations
are competing with each other in a particular
market Buyers – pays cash in exchange for your goods and
 It depends on the marketing strategy of your services
competitor, like giving freebies and special offers
 The intensity of rivalry among existing firms is Competition – it is the act or process of trying to get
characterized to the following factors or win something
a. Diversity of rivals
Entrepreneurial process - can be defined as the
b. Number of competing firms
steps taken in order to begin a new enterprise. It is a
c. Characteristics of the products or services
step-by-step method one has to follow to set up a
d. Increased capacity
business
e. Amount of fixed costs
f. Rate of industry growth Entrepreneurial ideas - an innovative concept that
can be used for financial gain that is usually centered
on a product or service that can be offered for money
4. Substitute Products
 Substitute is one that serves the same purpose as
Essentials of entrepreneur’s opportunity-seeking
– these are the basic foundation that the
another product in the market
entrepreneur must have in seeking opportunities,
 For example, the consumers decide to use
such as entrepreneurial mind frame, heart flame and
margarine as a substitute for butter
gut game
 In case the price of butter increases, preferably
the consumer will gradually switch to margarine External environment - refers to the physical
 A substitute product can give a big threat in the environment, societal environment, and industry
industry environment if the following factors are where the business operates
noticed:
a. Switching cost is low Government - refers to the local government
b. Preferences and tastes of the customers (municipality, city, or provincial) or the national
easily change government and its branches
c. Product differentiation is highly noticeable
New entrants – the one who enters something
d. The quality of substitute products
dramatically improves Opportunity – seeking – the process of considering,
e. The price of substitute product is evaluating, and pursuing market-based activities that
substantially lower are accepted to be beneficial for the business

Rivalry – is a state or situation in which people or

5. Suppliers groups are competing with each other
 Provide something that is needed in business Sources of opportunity - can be attained by
operations such as office supplies and equipment assessing and looking at changes in the environment;
 Example, where supplies and services being technological discovery and advancement;
offered is unstable the intensity of the threat is government’s thrust, programs, and policies; people’s
strong in this kind of the competitive force interest, and past experiences
 This can be noticed if there is the presence of the
following factors: Substitute – anything that takes the place or function
a. The supplier has the ability for forward of another
integration
Suppliers – are the ones who provide something that
b. Suppliers in the industry are few, but the
is needed or wanted
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
Value Proposition (VP)  How you sell your product or services to your
customer
 Business or marketing statement that summarizes
 Address the wants and desires of your customers
why a consumer should buy a company's product
 As an entrepreneur, you should think of marketing
or use its service
concepts that persuade your target customers
 Often used to convince a customer to purchase a
 You may ask the following questions in doing this:
particular product or service to add a form of
- What do the customers want?
value to their lives
- What brand does well?
 In creating value proposition, entrepreneurs will
- What does your competitor sell well?
consider the basic elements:
1. Target Customer
 Some tips for the entrepreneur on how to create
2. Needs/opportunity
an effective unique selling proposition to the
3. Name of the product
target customers are:
4. Name of the enterprise/company
1. Identify and rank the uniqueness of the
product or services character
2. Be very Specific
There are many competitors in the market who 3. Keep it Short and Simple (KISS)
establish superiority over other entrepreneurs.
Entrepreneurs should think of other alternatives to
make their products better. An important aspect in
As an entrepreneur, present the best feature of the
Value Proposition is that it must be truthful and that it
product or service that is different from other
should establish credibility to the consumers.
competitors.
Example:
Identifying the unique selling proposition requires
Potential value proposition is most common in small marketing research.
businesses of your locality.
In promoting the products or services, make sure that
it is very specific and put details that emphasize the
differentiator against the competitors. Keep it short
Aling Charing Sari-Sari Store opens only from 6:00 am and simple and think of a tagline that is easy to
to 6:00 pm, but Aling Charing noticed that there are remember.
customers who go to a nearby town to look for a
convenience store at around 10:00 pm to 6:00 am. She Right now, the proposed unique selling proposition is:
believes that this is a great opportunity for her store “Charing sari-sari store, open 24/7” Readers get
to operate 24/7. In this example, the proposed value confused between value proposition and unique
proposition is: “Charing sari-sari Store, open 24/7”. selling proposition.

The two propositions are used to differentiate the

products from competitors.
The business describes a sari-sari store – a basic retail
store. The assurance from this value proposition is For example, Jollibee is known to have a Filipino taste
because of the phrase “open 24/7”, Aling Charing’s burger. This brand has a unique selling point because
sari-sari store opens 24/7, which makes it different of its tagline “Langhap Sarap” Unique Selling
from other competitors. Proposition and Value Proposition are two of the most
famous tools used to explain why prospect customers
buy each product and service. Focus on a solution that
is a need, and make sure that you are targeting a
customer segment that's large enough and cares
enough about your solution so that you can build a
viable business.

Unique Selling Proposition (USP)

3 Factors that Determine c. Social class d.
Customers d. Personality traits
e. Knowledge and awareness
1. Target Market f. Brand concept
 Market Targeting is a sage in market identification g. Lifestyle
process that aims to determine the buyers with
common needs and characteristics
 Prospect customers are a market segment that an
4) Behavioral Segmentation
entrepreneurial venture intends to serve
 Divided according to customers’ behavior pattern
 In targeting a specific market, it will exclude
as they interact with a company
people if it will not fit your criteria
 Variables to consider
 Rather, target marketing allows you to focus your
a. Perceptions
marketing money and brand message on a specific
b. Knowledge
market that is more likely to buy from you than
c. Reaction
other markets
d. Benefits
 Choose a product that is more affordable,
e. Loyalty
efficient, and effective to reach potential clients
f. Responses
and generate business

2. Customer Requirements
Common Methods for Segmenting the Markets
 Specific characteristics that the customers need
from a product or a service

1) Geographic Segmentation
 The total market is divided according to 2 Types of Customer Requirements
geographical location 1) Service Requirement
 Variables to consider  Intangible thing or product that cannot be
a. Climate touched but the customer can feel the fulfillment
b. Dominant ethnic group  There are elements in service requirement like on-
c. Culture time delivery, service with a smile, easy-payment
d. Density (either rural or urban) etc.
 It includes all aspects of how a customer expects
to be treated while purchasing a product and how
2) Demographic Segmentation easy the buying process goes
 Divided based on consumers
 Variables to consider
a. Gender 2) Output Requirement
b. Age  Tangible thing or things that can be seen
c. Income  Characteristic specifications that a consumer
d. Occupation expects to be fulfilled in the product
e. Education  Costumers will avail services as a product, then
f. Religion various service requirements can take the form of
g. Ethnic group output requirements
h. Family size  For example, if the consumer hires a multi cab,
then on-time arrival becomes an output
requirement
3) Psychological Segmentation  Customer buys gadgets (phone speaker) the
 Divided in terms of how customers think and specification like the loudness and clarity are the
believe output requirements.
 Variables to consider
a. Needs and wants
b. Attitudes 3. Market Size
 The entrepreneur’s most critical task is to
calculate the market size, and the potential value
that market has for their start-up business
 Market research will determine the
entrepreneurs’ possible customers in one locality
 Market size is the size 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 a new product or service in
the area
 In determining the market size, the entrepreneur
will conduct strategic marketing research from
reliable sources using the following method
 The first step is to estimate the potential market –
approximate number of customers that will buy
the product or avail your services
 The second step is to estimate the customers who
probably dislike to buy your product or avail the
services
 The 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
 Market size becomes the most important factor if
you ever need to raise funding for your business
Market Research  Most reliable and credible ways of getting relevant
information from target customers
 Marketing research process
 Typically done in person between the
 Process of gathering, analyzing and interpreting
researcher/entrepreneur and a respondent where
the information about the products or the services
the researcher asks pertinent questions that will
to be offered for sale to the potential consumers
give significant pieces of information about the
in the market
problem that he will solve
 Helpful even when the business has already
started because the customers’ feedback provides
Data Collection the entrepreneur a glimpse of what the customers
 Most valuable tool in any type of research study think about the business
 Inaccurate data collection may cause mistakes and  Normally last from 15 to 40 minutes, but they can
ultimately lead to invalid results last longer, depending on the participants’ interest
in the topic
 In a structured interview, the researcher asks a
standard set of questions and nothing more
Tips in Collecting Data
1. Organize collected data as soon as it is available
2. Know what message you want to get across and 2 Types of Interviews
then collect data that is relevant to the message
3. Collect more data
4. Create more data 1. Personal Interviews
5. Take note of interesting or significant data  Traditional method of conducting an interview
 Allows the researcher to establish relationship
with potential participants and therefore gain
3 Data Collection Techniques their cooperation
 Generates highest response rates in survey
research
1. Survey  Allow the researcher to clarify indefinite answers
 Questionnaire and when necessary, seek follow-up information
 Most common way to gather primary research
with the use of questionnaires or interview
schedule 2. Telephone Interviews
 Can be done via direct mail, over the phone,  Less expensive and less time-consuming
internet (Google) or email, face-to-face or on the  Disadvantages are that the response rate is not as
Web (Skype or Viber) high as the face-to-face interview
 But considerably higher than the mailed
questionnaire
Things to remember in Constructing Research
Questionnaire
 Keep it as simple as possible 3. Focus Group Discussion
 Make sure it is clearly appealing and easy to read  Excellent method for generating and screening
 Cluster or block related questions ideas and concepts
 Move from complex questions to more specific  It can be moderated group interviews and
questions brainstorming sessions that provide information
 Make sure questions are concise and easily on user’s needs and behaviors
understood
 Avoid questions that are difficult to answer
 Make sure response scales used are consistent
with categories that are mutually exclusive

2. Interview
Considerations in Focus Group Discussion
 The length of the session is between 90 and 120
minutes
 Conduct focus groups discussion with 8 to 10
participants per group
 Assign an expert moderator / facilitator who can
manage group dynamics
 Use a semi-structured or open-format discussion
 Strive for consistency in the group’s composition
(for example, it may not be advisable to have
business customers and retail customers in the
same focus group, their needs are very different)
Marketing Mix
 Whatever you sell or offer you must outline your
marketing mix
 Marketing mix has been around as early as trade
existed and that is quite long already
 Business mechanism used for effective marketing
of the products
 Set of controllable and connected variables that a
company gathers to satisfy a customer better than
its competitor
 Also known as the “Ps” in marketing
 Originally, there were only 4Ps but the model has
been continually modified until it became 7P’s.
 The original 4 P’s stands for product, place, price
and promotion
 Eventually, three elements have been added,
namely: people, packaging and positioning to
comprise the 7 P’s

The 7 P’s of Marketing Mix

1. Product
 The first P in the Marketing Mix
 Marketing strategy typically starts with the
product
 Marketers can’t plan a distribution system or set a
price if they don’t know exactly what the product
will be offered to the market
 Any goods or services that is produced to meet
the consumers’ wants, tastes and preferences
 Examples of goods include tires, MP3 players,
clothing and etc
 Goods can be categorized into business goods or
consumer goods
 A buyer of consumer goods may not have
thorough knowledge of the goods he buys and 2. Place
uses  Place is the second P in the Marketing Mix
 Examples of services include hair salons and  The location where the buyer and seller exchange
accounting firms goods or services
 Services can be divided into consumer services,  It is also called as the distribution channel
such as hair styling or professional services, such  It can include any physical store as well as virtual
as engineering and accounting stores or online shops on the Internet.
 It is one thing having a great product, sold at an
attractive price
 Place matters for a business of any size
 It is a crucial part of the marketing mix.
 The main function of a distribution channel is to
provide a link between production and
consumption
 accept, and (3) the competition is allowing to be
charged
 With product, promotion, and place of marketing
mix, it is one of the business variables over which
organizations can exercise some degree of control
 One example of a pricing strategy is the
penetration pricing
 It is when the price charged for products and
services is set artificially low in order to gain
market share
 Once this is attained, the price can be higher than
before
 For example, if you are going to open a Beauty
Channel 1
Salon, you need to set your prices lower than
 Contains two stages between producer and those of your competitors so that you can
consumer - a wholesaler and a retailer penetrate the market
 A wholesaler typically buys and stores large  If you already have a good number of market
quantities of several producers' goods and then share then you can slowly increase your price
breaks into bulk deliveries to supply retailers with  There are several factors that affect a small
smaller quantities business’ revenue potential
 For small retailers with limited order quantities,  One of the most important is the pricing strategy
the use of wholesalers makes economic sense. utilized by you as the owner of the business
 A right pricing strategy helps you define the
particular price at which you can maximize profits
Channel 2
on sales of your product or service
 Contains one intermediary  You need to consider a wide range of factors when
 In consumer markets, this is typically a retailer setting prices of your offerings
 A retailer is a company that buys products from a  The different pricing strategies with its definition
manufacturer or wholesaler and sells them to end can be found in the table below
users or customers
 In a sense, a retailer is an intermediary or
middleman that customers use to get products
from the manufacturers

Channel 3

 direct-marketing channel, since it has no

intermediary levels
 In this case the manufacturer sells directly to
customers

3. Price
 The third P in the Marketing Mix
 Serious component of the marketing mix
 Value of money in exchange for a product/service
 Amount or value that a customer gives up to enjoy
the benefits of having or using a product/service
 Customers exchange a certain value for having or
using the product – a value we call price
 In commerce, price is determined by what (1) a
buyer is willing to pay, (2) a seller is willing to
4. Promotion
 Promotion is the fourth P in the Marketing Mix
 Complete set of activities, which communicate the
product, brand or service to the user
 The idea is to create an awareness, attract and
induce the consumers to buy the product, in
preference over others
 The following are the most common medium in
promoting a product and this is called
promotional mix

5. People
 The fifth P in the Marketing mix is People
 Your team, the staff that makes it happen for you,
your audience, and your advertisers are the
people in marketing
 This consist of each person who is involved in the
product or service whether directly or indirectly
 People are the ultimate marketing strategy
 They sell and push the product
 People are one of the most important elements of
the marketing mix today
 This is because of the remarkable rise of the
services industry
 Products are being sold through retail channels
today
 If the retail channels are not handled with the
right people, the product will not be sold
 Services must be first class nowadays
 The people rendering the service must be
competent and skilled enough so that that the
clients will patronize your service
 The marketing efforts of people are to create
customer awareness, to arouse customer interest,
to educate customers, to close the sale and to
deliver the product
 Therefore, the right people are essential in
marketing mix in the current marketing scenario

6. Packaging

7. Positioning
