ENTREPRENEURSHIP • Verbalization- involves sharing of ideas with other

people, knowing that their vision is already

Module 1: Overview of Entrepreneurship occurring.
Entrepreneurship- It is a proactive process of developing a • Materialization- happens when the vision
business venture to make a profit. becomes a reality.
ENTREPRENEURS’ FIELD OF EXPERTISE
It involves… 1. Technopreneur- entrepreneur who puts
• Seeking opportunities for a market technology at the core of his or her business
• Establishing and operating a business out of the model.
opportunity; and 2. Social entrepreneur- takes advantage of the
• Assessing risks and rewards through close country’s social problems and turn them to
monitoring of the operations. profitable institutions with the intention of helping
the disadvantaged community rather than making
9 SOCIAL AND ECONOMIC BENEFITS OF a profit.
ENTREPRENEURSHIP 3. Intrapreneur- is an entrepreneur in a large
1. Produces more jobs that equate to an increase in company or corporation who is tasked to think,
national income. establish, and run a new big idea or project.
2. Amplifies economic activities of different sectors Intrapreneurs are usually the product managers or
of society. the business development managers of a
3. Introduces new and innovative products and company.
services. 4. Extrapreneur- entrepreneur who hops from one
4. Improves people’s living standards. company to another to act as the innovation
5. Disperses the economic power and creates champion, providing creative and efficient
equality. solutions.
6. Controls the local wealth and balances regional COMMON AND CORE COMPETENCIES
development. • Proactive
7. Reduces social conflicts and political unrest. • Agents of change
8. Elicits economic independence and capital • Risk takers
formation. • Have a sharp eye for opportunities
• Sociable
WHO IS AN ENTREPRENEUR?
• Networkers
• a unique individual who has the innate ability and
• Decisive
extraordinary dedication to establish and manage
• Balanced
a business.
• Innovative
• acknowledging all the risks and reaping its
CORE TRAITS
rewards.
• Leaders
FIVE LEVELS OF ENTREPRENEURIAL DEVELOPMENT • Communicators
1. The Self Employed- They are not comfortable with • Specialist
the routines of a desk job. They do not want to • Problem solvers
conform to a fixed working schedule. They will ENTREPRENEURSHIP OR EMPLOYMENT?
eventually realize that a successful business should Factors Entrepreneur Employee
work for them. Income • generated passively • Generated actively
• unlimited • Limited
2. The Manager- entrepreneurs feel the need to step
• only earned when the • No work, no pay
up and ask some help from the people around
business is successful • income earned
them. They delegate and hire potential employees whether the business
to do the work. is successful or not
3. The Leader- already enjoy seeing their people Hiring and • provides jobs • seeks for a job
flourish, stepping up and producing great results Firing • mag hire, mag fire • goal: boss satisfaction
with minimal supervision. • fully responsible for • dependent on the
4. The Investor- look for more opportunities for their serving customers employer’s
business to grow. (customer performance
5. The True Entrepreneur- True entrepreneurs, based satisfaction)
on their experience, now aim for quality and Daily Task • can perform different • routinely
excellence in their work. task what can flourish • follows policies,
the business procedures, and
• prepares policies, memoranda
4 STEP PROCESS OF THINKING…
procedures, and
• Idealization- entrepreneurs dream enormously memoranda
and desire to build an ideal environment. Leisure • mas daghan, if • limited
• Visualization- entrepreneurs start to create plans Time and successful na
to make the dream a reality. Vacations
Taxation • base on net income • base on gross income
 Comfort • may perform • pwedeng comfy, - Want- recognized when a customer believes
level at uncomfy work for the pwedeng dile that there is a specific product or service that
Work welfare of the can perfectly suit the need.
business b. Competitors
• 4Ps of marketing – Product, Place, Price
and Promotion
Module 2: Recognizing the Potential Market c. Unexpected opportunities from customers

As the saying goes, the most difficult part of every task is d. Talents, hobies, skills, and expertise
where and how you start.
e. Irritants in the market place such as deterrents,
The Entrepreneurial Process - is a step-by-step procedure problems, complaints, and delays
in establishing any kind of business that an entrepreneur
has to undergo. f. Location
4 ASPECTS METHODS OF GENERATING IDEAS
1. Opportunity spotting and assessment- The beginning of 1. Focused Group Discussion (FGD)
the process and is considered the most difficult. 2. Brainstorming
- Entrepreneurs take note of interesting trend in their 3. Brainwriting or Internet brainstorming
environment. 4. Problem inventory analysis
2. Developing a business plan- is a comprehensive paper
that details the marketing, operational, human S2: Screening the Opportunity- process of cautiously
resource, financial, strategic direction, and tactics of the selecting the best opportunity.
business.
3. Determining the capital needed- calculation of the Risk appetite- entrepreneur’s tolerance of business risks.
resources needed to establish the business 4 BUSINESS OPPORTUNITY ELEMENTS
4. Running the business- This is the part where the 1. Has superior value to customers
entrepreneur should use the resources allocated for the 2. Solves a compelling problem, issue, a need, or a
new venture. want.
3. Is a potential cash now
Scanning the Marketing Environment- the starting point of 4. Matches with the entrepreneur’s skills, resources,
new venture that involves understanding and knowing the and risk appetite
intricacies of macroenvironment, microenvironment, and THE OPPORTUNITY ATTRACTIVENESS TEST (OAT)
internal environment. This is a framework to measure how compelling an
opportunity is.
Opportunity- an entrepreneur's business idea that can 1. The “concept” and the “strategy”- The
potentially become a commercial product or service in the entrepreneur should think of the reason for the
future. business’ existence.
2. Opportunity Metrics- These are considered as the
3S OF OPPORTUNITY SPOTTING AND ASSESSMENT opportunity’s critical success factors.
S1: Seeking the opportunity It includes…
1. Macroenvironmental Sources • Industry or Market Potential
a. STEEPLED - Sociocultural, Technological, Economic,
• Financial Feasibility
Environmental, Political, Legal, Ethical, and
• Exit Strategy or Harvest Options
Demographic factors.
• Competitive Advantage
b. Industry – the source of current trend on what is
• Management Team
happening in the industry where the future
• Strategic Differentiation
business will belong to.
c. New discovery or knowledge- new trends that can • Assessment of Personal Resources
be the core business model of a new venture.
d. Futuristic opportunities- projected new S3: Seizing the Opportunity- "Pushing through" with the
opportunities that can possibly affect the new chosen opportunity.
business while it is running.
2. Micro market Sources Innovation- the process of positively improving an existing
a. Consumer preferences, interests, and perception- product or service.
current needs and wants of potential TYPES OF INNOVATION
customers that should be discovered right away by 1. Breakthrough innovation- very rare, occur infrequently
a budding entrepreneur. (needed to protect through copyright, patent, trade
- Need – recognized when a customer believes secret)
that there is a difference between his or her 2. Technological innovation- occur frequently than
current situation versus his or her desired breakthrough innovations (needed to protect too), in
condition. line with technology.
3. Ordinary innovation- occur frequently, simple
 PRODUCT OR SERVICE PLANNING AND DEVELOPMENT Market segmentation- is the process of grouping similar or
PROCESS homogeneous customers according to demographic,
1. Idea stage- also known as “refining process”, determines psychographic, geographic (location), and behavior.
what are the feasible product and/or services that will MARKET SEGMENTATION
perfectly suit the opportunity. 1. Demographic- also known as ‘socioeconomic
2. Concept stage- asking consumer acceptance test. segmentation’
3. Product development stage- create sample of a. Income range and social class – purchasing power
product/service (prototype). b. Occupation
4. Test marketing stage- product/service is ready for mass c. Gender and age group- life cycle of customers
production. d. Religion and ethnicity
2. Psychographic
Module 3: The Marketing Plan a. Perceptions- using five senses
b. Way of Life
Business Plan- is a comprehensive paper that details the c. Motivations
situation analysis, objectives, strategies and tactics, and • Physiological- needs
how to monitor and control the enterprise. • Psychological- customers’ preferences
• Aspirations- wants to achieve
Marketing- is all about knowing the customers. • Deprivations- recognition of certain voids
d. Inclinations- preferring one product over another
Value Proposition (UVP/VP)- phrase, answers the why the 3. Geographic
customers will buy your product/service. 4. Behavioral- according to their actions.
a. Occasions
Unique Selling Proposition (USP)- phrase, how you will sell b. Desired benefits
the product/service. c. Loyalty
d. Usage of products- ‘how often’
Marketing Research- a comprehensive process of • Light users
understanding the customers’ intricacies and the industry • Medium users
they revolve in. • Heavy users

Market Size- simply the size the of the arena where the Market aggregation- when an entrepreneur wants to target
entrepreneur’s business will play. a broader market as possible because the product or
Steps: service is suited for an undifferentiated market.
• 1st step: Estimate the potential market. TALKING TO YOUR CUSTOMERS
• 2nd step: Eliminate the customers who are Marketing research will not be complete without talking
probably unlikely to buy the product or avail the directly to the target customers.
service. • Responses can be either qualitative
• 3rd step: Estimate the market share. (written/spoken opinions) or quantitative
(analyzing customers’ preferences using relevant
Market Space/Market Universe- total market statistics).
METHODS OF COLLECTING DATA
Market size computation: 1. Interview- one of the most reliable and credible ways
Market size of rice business in the barangay = Number of families - Face-to-face
who eat rice x average consumption per annum
- Captures non-verbal answers such as facial expression,
Potential market share = market size x estimated market share
body language, and character of words used.
Main Types…
TYPES OF COMPETITORS a. Unstructured- informal, no pre-arranged
1. Direct- offers same product/service questions.
2. Indirect- don’t offer same product/service b. Structured- uses specific set of questions.
2. The Focus Group Discussion (FGD)- captures qualitative
Customer requirements- are specific features and results from target customers.
characteristics that the customers need from a product or a - There is a moderator
service. - Face-to-face
- Disadvantage: prone to peer/experience pressure
Customers are said to be the lifeblood of the business. 3. Observation- documents the behavioral patterns of
people or objects or events without necessarily requiring
“The customer is always right” is a mantra that most them to participate.
successful entrepreneurs follow. - Is to simply watch and examine
- Reliable, because it sees real and actual behavior
Market intelligence- which includes customer profiling, Examples:
drives the entrepreneur on what correct strategies and a. Human Observation
tactics to employ. • Customer Purchase Pattern
• Mystery Shopping
 b. Machine Observation 7. Process- step-by-step procedure or activity workflow.
• Video cameras or CCTV FUNDAMENTALS OF BRAND MANAGEMENT
• Traffic counters Brand Management- is the supervision of the tangible and
• Web Analytics intangible elements of a brand.
• Barcode Scanners
• GPS technology Brand- refers to the identity of a company, of a product, of
4. Traditional and Online Surveys- very simple and practical a service, or of an entrepreneur.
because it requires preparations of predetermined - A symbol of promise and assurance
questions. - Should be clear, simple, catchy, and consistent
- Easier to analyze, but definite/limited - Is the marketing element that sticks to the mind of the
- Via telephone, face-to-face, interaction, or snail mail target customers and the public
- Answered verbally, by writing, or through the internet
a. Sampling Techniques- ‘census’ method is done when Branding- process of integrating strategies formed from the
the population is small and the researcher choose to marketing mix.
include the whole population.
• Probability Sampling- given equal chances Brand Name- a major differentiator of the entrepreneur
• Nonprobability Sampling- not given equal chances against the competitors.
b. Sample Size
c. Questionnaire Blueprint Module 4: Product Development, Operations, and
THE MARKETING MIX: 7Ps OF MARKETING Financial Plan
Marketing Mix- widely accepted strategic marketing tool. Operations and Financial plan- These two will tell if the big
- Combines 4Ps and 3Ps idea generated through product development process is
1. Product- any physical good, service, or idea realistic.
Levels… FUNDAMENTALS OF PRODUCT DEVELOPMENT
• Level 1- core benefits Before commercializing a new product or service, the
• Level 2- Physical characteristics entrepreneur must focus first on refining the product or
service and validate its market acceptability.
• Level 3- Augmented benefits
Product Development- the process of developing, testing,
2. Place- location or medium of transaction
and commercializing a product or service with the ultimate
*In cyber location, the entrep. must use Web Analytics
objective of solving the problem of the primary target
3. Price- is the peso value
market.
Strategies…
4 Process…
1. Bundling
1. Developing a product or service description- how it is
2. Penetration pricing
used, uses, advantages, disadvantage, etc.
3. Skimming
a. It should directly address the primary target market
4. Competitive pricing
in a personal manner using everyday language.
5. Product line
b. It should highlight the features
6. Psychological
c. Realistic superlatives should be used for the
7. Premium
product description.
8. Cost-based
9. Cost-plus
2. Creating a prototype
10. Optional
TWO CLASSIFICATIONS OF COSTS:
Prototype- is a model or sample of a new product/service
a. Variable costs/Controllable costs- directly
that is created to test.
proportional
Advantages…
b. Fixed Costs/Uncontrollable costs- not directly
proportional. • Entrepreneur can do trial & error
4.Promotion- involves presenting the products/services to • Provides a window to test the performance and
the public specifications of various materials
Promotional Tools: • helps the entrepreneur effectively describe the
a. Advertising- influences the behavior of a customer to product or service by having a product team.
choose the product or services over the competitor. • Elicits respect to stakeholders
b. Selling- the act of trading a product or service for a *Main objective- verify if the product or service concept
price or a fee will work at the simplest, fastest, and cheapest way.
• After-sales- monitor the customer 3. Testing the prototype- a vital process before an actual
satisfaction product or service is launched to the market.
c. Sales Promotions- short-term promotional gimmicks, TESTING METHODS…
‘below-the-line’ promotions A. Focus Group Discussion (FGD)- to identify errors,
d. Public Relations- image-building initiatives to make deficiencies, and issues
the name of the business reputable. B. Legality and Ethical Test- complies with all relevant laws
5. People- includes employees and regulations and has a necessary license or permit.
6. Packaging- how the product/service is presented to - must be cleared first with the Bureau of Food and
customers. Drugs (BFAD)
C. Safety Test- safe to consume, apply, and use processed, and released from one processing unit to
D. Product Costing Test- match the expected costs versus another.
his or her budget. 2 Options…
E. Component Test- Each component of the product or • Product-based layout- process on how to create
service must be tested independently to identify the product.
component failures. - Mas nindot para less hassle.
F. Competitors’ Product/Service Test • Processed-based layout- grouped according to
*The entrepreneur can choose among the methods, not their function.
necessarily tanan gamiton. d. Manufacturing Process Flow- step-by-step guide of
the employees and the manufacturing equipment.
3.Validating the market- process of finding out if the
intended primary target market will be buying the product 2. Service Delivery Process- how pleasant his or her
or availing the service. experience was.

Market acceptability- is a critical factor that the Service Blueprint- detailed flowchart of the service
entrepreneur must validate before launching the product business.
or service, because this can strongly suggest if the business • Bottleneck- is a part of the process where there is
will be successful or not. an apparent inefficiency and where the customer
Questions: (dapat YES answer, unless balik sugod) waits longer.
1. Will the target market like the product?
2. Will the intended target market buy the product? 3. Distribution Method- the process of bringing the
* These questions can easily be answered if the products or services to customers.
entrepreneur will perform the following activities:
a. Use the most strategic marketing research tool Distribution- is not a straight process from the
b. Prepare relevant open-ended questions that entrepreneur to customers; thus, the term supply chain or
answer the objectives above. distribution channel was coined.
c. Find market experts who also target the same
market but are not directly competing with the
entrepreneur. a. The manufacturer- handles the invention,
d. Collate all the data development, and production of the product or
service.
Operations plan- states the details in operating the • Budding Entrepreneurs- become manufacturers
business. when they introduce a new product.
* The great thing about being a manufacturer is that
Operations Management- it evaluates/check if ang entrepreneurs can manage the entire supply chain.
nabutang sa business plan kay naimplement ba or wala. b. Distributors- buy the products in bulk for a
discounted price. Sells at wholesalers or retailers.
• Agents- bridge negotiator, gets commission
THE 4Ms OF OPERATION • Consignment- get the products in advance to
1. Methods- day-to-day operations demonstrate them live to the customers, not liable
- Must abide International Standard Organization (ISO)
- Must also set Standard Operating Procedures (SOP) 4. Payment Process- no problems if the customers pay in
Aspects: cash.
1. Manufacturing of Products- process of combining raw • Check
materials to produce new product to satisfy customer • Cash
needs. • GCash
3 Elements…
• Point-of-sale (POS)- Debit and Credit cards
• Input- the materials or ingredients to be used in
creating the product, such as (land, labor, capital,
entrepreneur, etc.)
• Process- the transformation phase
• Output- final product/result
a. Manufacturing Site- manufacturing process will take
place.
• Home-based- cheapest, highly flexible
• Commercial Space for Rent- costly
• Commercial Space Purchase- requires the biggest
amount of capital.
b. Location- where the delivery of raw materials and
finished goods will be conducted.
c. Efficient Floor Plan- illustrates how raw materials and
finished goods can efficiently be transferred,