Professional Documents
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ENTREPRENEURSHIP
ENTREPRENEUR
- The word “entrepreneur” has a French origin and was coined the words entre, which means “between”
and prendre, which means “to take”.
- Is a unique individual who has the innate ability and extraordinary dedication to establish and manage
a business, acknowledging all the risks and reaping its rewards.
1. SELF-EMPLOYED- Self-employed persons are, simply put, not comfortable with the routines of a desk
job.
2. THE MANAGER- In this level, entrepreneurs feels the need to step up and ask some help from the
people around them. They delegate and hire potential employees to do the work, however they may
have the tendency to get more people who do not know the exact needs and requirements of the job.
3. THE LEADER- Entrepreneurs in this level already enjoy seeing their people flourish, stepping up and
producing great results with minimal supervision.
4. THE INVESTOR- They look for more opportunities for their business to grow, They may either purchase
one or two businesses that can potentially add value to the company.
5. THE TRUE ENTREPRENEUR- True entrepreneurs, based on their experiences, now aim for quality and
excellence in their work.
TRAITS THAT THE ENTREPRENEURS SHOULD DEVELOP IN MANAGING AND RUNNING THE BUSINESS.
1. LEADERS- They must be very humble, approachable, friendly, and also know how to listen to people’s
concern.
2. COMMUNICATORS- Entrepreneurs know how to use all forms of communication to effectively share
ideas and address certain concerns with their customers or employee.
3. SPECIALISTS- Entrepreneurs are experts in their chosen business. They are tactical and very keen with
details.
4. PROBLEM SOLVERS- Entrepreneurs possess critical thinking skills and look problems as challenges or
puzzles that they need to solve.
ENTREPRENEURSHIP OR EMPLOYMENT
ENTREPRENEURIAL PROCESS
- is a step-by-step procedure in establishing any kind of business that an entrepreneur has to undergo.
1. Opportunity Spotting and Assessment –Entrepreneurs at this point take note of interesting trends in
their environment by gathering information from various sources like the customers as market needs
originate from them, co-entrepreneurs by observing their problems encountered, and from the
feedback of distribution or business partners. Entrepreneur’s toughest job is to carefully assess the
opportunity through estimation of opportunity length, capitalization required, threats, profitability and
calculation of real and perceived value. Furthermore, assess if opportunity is aligned with personal
goals.
2. Developing a Business Plan – Business plan is a comprehensive paper that details marketing,
operational, human resource, financial, strategic direction and tactics of the business.
3. Determining the Capital needed – under this process is calculation of resources needed to established
business and compare against current resources.
4. Running the Business – the implementation phase. The entrepreneur should have a control and
monitoring system to serve as a check and balance of the formulated plans.
S1: Seeking the Opportunity –Opportunity seeking is the first step and is the most difficult process of
all due to the number of options. Opportunity is an entrepreneur’sbusiness idea that can potentially
become a commercial product or service in the future. This step involves the development of new
ideas from various sources as follows:
1. Macroenvironmental Sources
a. STEEPLED – this is a mnemonic for sociocultural, technological, economic, environmental,
political, legal, ethical and demographic factors.
b. Industry – this is the source of current trend on what is happening in the industry where the
future business will belong to.
c. New discovery or knowledge – new trends that can be the core business model of a new
venture
d. Futuristic opportunities – projected new opportunities that can possibly affect the new
business while it is running
2. Micromarket
a. Consumer preferences, interests, and perception – these are the current needs and wants of
potential customers that should be discovered right away. Need is difference between current
situation versus desired condition; on the other hand, want is a product or service that can
perfectly suit the need.
b. Competitors – recognizing competitors will aid the entrepreneur to develop a product or
service that will stand out from the competition.
c. Unexpected opportunities from customers – Existing problems and bottlenecks often give rise
to unexpected opportunity. Entrepreneurs usually do is be on top of the situation and change
the market’s perception of a product or service or new market.
d. Talents, hobbies, skills and expertise – Business opportunities do not just come from outside
forces, but also from within the entrepreneur in the form of his talents, hobbies, skills and/or
interests.
e. Irritants in the marketplace such as deterrents, problems, complaints, and delays – when
customers are already sick and tired of same old issue, that is an opportunity to entrepreneur
to come in and make difference.
f. Location – Entrepreneurs have to look at their ecosystem and they will be able to spot a
business opportunity.
1. Focused group discussion (FGD) – a moderator handles a very open, free-flowing, and in-depth
discussion with a group who can provide insightful ideas that will fill a market need.
2. Brainstorming – is an activity that allows the participants to share creative ideas.
3. Brainwriting or Internet brainstorming – same as brainstorming but the channel used is not face-to-
face but in writing or online.
4. Problem inventory analysis – quite similar to FGD except the participants are already given an
inventory of product or service problems.
WEEK 3
1. Socio-cultural factors – these represent general view of locality’s traditions, customs, beliefs, norms
and perceptions. (E.g. religion and beliefs, buying habits, attitude toward imported goods and etc.)
2. Technological factors – these are composed of innovation of an existing technology or an invention of a
new one mostly on applied science and engineering research. (E.g. rate of technological change,
legislation about technology, access to newest technology, internet infrastructure and penetration.)
3. Economic factors – includes income, expenses and resources that can influence the cost of doing
business and generating income. (Growth rate, inflation rates, unemployment trends, labor costs)
4. Environmental of ecological factors –Entrepreneur will know if the business venture will be suited with
the environmental conditions in his or her locality. (E.g. waste management, laws regulating pollution)
5. Political factors – government policies and administrations, which can have a strong effect in the
entrepreneur’s business. (E.g. tax policy, government stability and likely changes)
6. Legal factors – are government laws and regulations that can restrict or allow business activities.
7. Ethical factors - these are guides on how to properly run business, including resources.
8. Demographic factors – these are the characteristics of the people in the target market
- Opportunity screening is the process of cautiously selecting the best opportunity. Aligned with his
internal intent, i.e. the main objective it will accomplish in entrepreneur’s life, and the external intent,
which will address to compelling needs of the target market. Riskappetite refers to the entrepreneur’s
tolerance of business risk. Detailed here are the most important elements in a compelling opportunity:
1. Has superior value to customer.
2. Solves compelling problem, issue, a need or a want.
3. Is a potential cash cow.
4. Matches with the entrepreneur’s skills, resources, and risk appetite.
- Aims to assist entrepreneurs in ensuring that the opportunity that they will vejt8re into is an attractive
and feasible prospect.
- It is designed to detail each entrepreneurial aspect into small chunks to come up with a sound
entrepreneurial decision
1. The “concept” and the “strategy.”
2. Opportunity metrics
3.
S3: SEIZING THE OPPORTUNITY
- “pushing through”
Innovation - is the process of positively improving an existing product or service. It is key driver for economic
growth.
1. Breakthrough innovation – occur infrequently as these establish the platform in which future
innovations in an area are developed.
2. Technological innovation – technological advancements of an existing products or service.
3. Ordinary innovation – commonly originating from market analysis and technology pull instead of a
technology push.
1. Idea Stage
2. Concept Stage
3. Product Development Stage
4. Test Marketing Stage
Before focusing on the topics of value proposition and unique selling proposition, you must first know the
marketing process. In nutshell, marketing is all about knowing the customers. Next, you study what the customers wants
or desire for you to build a unique selling proposition. From there, it is imperative to identify the most strategic market
or group to tap.
A Value Proposition (VP) simply states why a customer should buy a certain product or service. Customers are
very specific when it comes to their needs and their desired benefits, so the value proposition cater to those particular
needs.
The following are some tips for the entrepreneur on how to create an effective value proposition to the target
customer:
A Unique Selling Proposition refers to how you will sell the product or service to your customers.
The following are some tips for the entrepreneur on how to create an effective unique selling proposition to the
target market:
Marketing Research
Is a comprehensive process of understanding the customers’ intricacies and the industry they revolve in
Market Size
Is simply the size the arena where the entrepreneur’s business will play. It is the approximation of the number of
buyers and sellers in a market.
Customer Requirements
Are specific features and characteristics that the customers need from a product or a service. It is in these
customer requirements that business opportunities originate.
WEEK 5
The entrepreneur can tap a primary target market and a secondary target market as resources are limited during
the startup stage. With this, the probability of success is higher as the entrepreneurs can focus to sell to the identified
customers groups. Market Intelligence, which includes customer profiling, drives the entrepreneur on what correct
strategies and tactics to employ. This can only be obtained through a meticulous market segmentation process. Market
Segmentation is the process of grouping similar or homogeneous customers according to demographic, psychographic,
geographic and behaviour.
Demographic Segmentation- also called socioeconomic segmentation is the process of grouping customers
according to the relevant socioeconomic variables for the business venture.
Income range and the social class of the entrepreneurs are very important factors for the entrepreneur
to consider because these represent the purchasing power of the market.
Occupation should also be considered not just to determine the customers’ income but also their daily
routine where goods and services can be properly positioned.
Gender and age group are data must be mined because the life cycle of customers and their gender
influence their buying behaviour.
Regional and ethnicity also should be taken to account because these affect the way they buy products
or avail of service.
Psychographic Segmentation is a process of grouping customers according to their perceptions, way of life,
motivations, and inclinations.
Perception is a process wherein an individual receives external stimuli using the five senses of hearing,
touching, smelling, seeing and tasting.
Physiological Motivationsinvolve the needs of the person.
Aspirations are what the customer wants to achieve.
Deprivation involves the customer’s recognition of certain voids to fill.
Geographic Segmentation is simply grouping customers according to their location.
Behavioural Segmentation is the process of grouping the customers according to their actions.
Occasions drastically affect the customers’ buying behaviour.
Desired Benefits in behavioural segmentation is efficient because the entrepreneur determines the
exact needs of the customers and offer the most suited product or service for them.
Loyalty is the result of maintaining satisfied customers.
Usage of products or Availment of Service is also a behaviour segmentation factor that describes to the
entrepreneur how often a product is being used or the service is being availed.
Marketing Research will not be complete without talking directly to the target customers.
THE INTERVIEW
Is one of the most reliable and credible ways of getting relevant information from the target customers. It is a
face to face contact between the researchers and a respondent where the researchers asks pertinent questions that will
give him significant pieces of information about the problem that he will solve.
Sampling is the selection of respondents that statistically represent the total population.
Unstructured Interview is an informal type of interview and does not follow a specific set of questions.
Structured Interviews employs a specific set of questions and produces quantitative data.
Is commonly used by market researchers to capture qualitative results from target customers. It is a process of
mining customers and noncustomer experience and insights about a specific product or service.
OBSERVATION
Is one of the preferred and practical methods of generating ideas because the researcher documents the
behavioural patterns of people or of objects or events without necessarily requiring them to participate in the research
process.
Human Observer records information as it occurs or as it happens using his or her five senses.
Machine Observer employs an equipment to record the information needed.
When it comes to quantitative research, taking surveys is essential. It is the process of getting answers from a
sample of respondents derived from particular populations.
Sampling Technique- A Sample is a percentage of a specific population carefully chosen by the researcher to
generally represent the whole population.
Probability Sampling is a technique wherein samples are given equitable chances or nonzero chances of
being selected from a population. The researcher needs to apply randomization, wherein he or she
needs to assure that every sample has an equal representation for the selection process to be unbiased.
Nonprobability Sampling, on the other hand, does not give the samples equal chances being selected,
because samples are instead selected according to their accessibility or personal choice of the
researchers.
Sample Size the researchers must be able to calculate first the appropriate sample size in conducting the survey;
otherwise, if the sample size is too large, he or she will waste his or her capital and time, whereas a sample size
that is too small will lead to imprecise results.
Questionnaire Blueprint
WEEK 6
Marketing Mix- is a widely accepted strategic marketing tool that combines the original 4Ps (Product, place, price,
promotion) with the additional 3Ps (People, packaging, and process) in formulating marketing tactics for a product or
service.
Product- is any physical good, service, or idea that is created by an entrepreneur or an innovator in serving the needs of
the customers and addressing their existing problems.
Place-refers to a location or the medium of transaction. A strategic location depends on the nature of the business and
the primary target market.
Price- is the peso value that the entrepreneur assigns to a certain product or service after considering its costs,
competition, objectives, positioning, and target market.
Pricing Strategies
1. Bundling
2. Penetration Pricing
3. Skimming
4. Competitive Pricing
5. Product Line Pricing
6. Psychological Pricing
7. Premium Pricing
8. Optional Pricing
9. Cost-based Pricing
10. Cost Plus Pricing
Promotion – involves presenting the products or services to the public and how these can address public’s needs and
wants.
Promotional Tools
1. Advertising
2. Selling
3. Sales Promotion
4. Public relations
People – how employee serve the customer is a determining factor in customer’s buying behaviour.
Packaging – overall identification of the product. First element that customer see in a product.
Process – is defined as a step-by-step procedure or activity workflow that the entrepreneur follows to efficiently serve
customers.
Brand- refers to the identity of a company, of a product, of a service, or of an entrepreneur himself or herself
Brand Management- is the supervision of the tangible and intangible elements of brand.
Branding-Is the process of integrating the strategies formed from the marketing mix to give an identity to the product or
service.
Product or Service Description – simply describes how product or service works and how it will benefit customer.
Creating Prototype – A prototype, It is a preliminary model or sample of new product or service that is created to test a
product concept or service process.
Testing the Prototype – vital process before an actual product or service is launched to the market, it will uncover the
final loopholes that need to be fixed before commercialization.
Testing Methods
1. Focus group discussion
2. Legality and ethical test – compliance with license and permit to operate
3. Safety test – must ensure that it is safe to use.
4. Product costing test – finalize cost involved
5. Component test – each component must be tested independently.
6. Competitor’s product/service test
Week 8
The 4 Ms of Operation
Methods
– the method aspect represent the day-to-day operations of a business. It describes how an entrepreneur will run the
business from all facets of the business such as the manufacturing of goods, service delivery process and distribution of
goods.
Manufacturing – the process of translating raw materials into finished goods that are acceptable to customer’s
standard. Consisting of three elements:
Inputs – materials or ingredients
Process – transformation phase
Output – final product
Service Delivery Process – Service entrepreneurs must prepare detailed flowchart of the service a.k.a service blueprint.
Service Bottleneck –part of the process where there is apparent inefficiency and wastage.
Distribution Method – is the process of bringing the products and services to customer
Distribution Channel/ Supply Chain – involves middlemen/distributors because distribution is most of the time
not directly forward to customers.
Payment Process – payment method may involve pautang/ payable, cash, credit or debit cards.
Manpower
- A business depending on scale may need to hire people in order to help in daily operations.
Job Description – enumerates the duties and responsibilities of the potential employee, including the scope, limitations,
and terms and conditions of employment.
Employee Qualification
1. Educational Background
2. Work Experience
3. Skill and Knowledge
4. Work Attitude
Machines
– can be described as the best friend of manpower in producing goods and offering services; physical equipment and
technology.