ENTREPRENEURSHIP

By: IST
• Entrepreneur – gain profit and gives
opportunities
• CHARACTERISTICS OF AN
ENTREPRENEUR:
• Adaptive
• Analytical
• Committed
• Creative
• Innovative
• Inquisitive
• Leadership
• Persistent
• Self discipline
• Concepts of Filipino Entrepreneur
1. Self-reliant
2. Risk-taker
3. Creative
4. Industrious
5. Humble
6. Helpful
7. Happy
• PRODUCTION – creation of goods and
services
RESOURCES IN PRODUCTION
funds for various purposes that would benefit the
Financial Resources business
The people who plan and implement business
Human Resources activities
Reliable information is essential in making plans,
Informational Resources decisions and implementation which are all
contributory to the success of an enterprise
Tangible, physical resources which are used for
Material Resources production.
FACTORS OF PRODUCTION
Physical resources such as machines and equipment
Capital which are used for starting a business
The ability to coordinate all the factors of production.
Entrepreneurial Ability
Physical and mental efforts exerted by workers.
Labor
Refers to natural resources, such as forests,
Land mountains, and bodies of water like rivers, lakes, and
seas.
• Costs of Production – represents the
payments for the factors of production
FOUR PHASES OF PRODUCTION
Raw materials are turned into something
Operation useful
Producers put all parts together to form
Assembly the final product
Producers do the final render to the
Finishing product
Producers make sure that the product is
Inspection of high quality and correct quantity
according to specified standards.
PRODUCT LIFE CYCLE
Introductory Stage A new product is released in the market
The market has accepted the product and
Growth Stage sales begin to increase

Maturity Stage Sales will reach its peak

Sales will begin to decline as the product
Decline Stage reaches saturation point.
 GLOBAL STANDARDS

The International Organization for Standardization is known to be the

ISO largest developer of standards in the world having a network of 155
countries which meet and establish world standard

Hazard Analysis Critical Control Point is an internationally accepted

technique for preventing microbiological, chemical, and physical
HACCP
contamination of food particular during the processing of food
products.

This refers to food that is permissible for consumption under the

HALAL
Islamic Law.
• Scheduling
– process of ensuring the delivery of materials
at the right place and at the right time
• Quality Control
– process of ensuring that goods and services
are produced in accordance to the
specifications and requirement
• Productivity
– efficient creation of goods and services
• MARKETING PROCESS
– Asset of human activities directed at
facilitating and consummating exchange
– It is an integration of various functions
– Selling is only a part of marketing
Three Elements

1. Two or more persons who are potentially interested in exchange

2. Each person having things of value to offer to the others

3. Each of them is capable of communication and delivery

• Marketing Plan – an outline of actions
designed to achieve a specific set of goals
–The external environment
consists of namely:
• Political forces
• Economic forces
• Societal forces and
• Technological forces
• Marketing Strategies – tools of achieving
the goals of the enterprise
1. Product strategy starts from introduction to growth
and maturity and finally to decline.
2. Promotion strategy consists of advertising and
personal selling
3. Pricing strategy help in the conversion of product
and services into money in business, the apparent
objective of pricing is to maximize profit. (monopoly
or oligopoly)
• Penetration pricing strategy – very low price for a new
product is offered
4. Place strategy is delivery of goods to the customers
• Marketing Functions – process of buying
and selling
1. Exchange – buying, selling,
pricing
2. Physical – assembling, handling,
processing and packaging, storage
3. Facilitating – financing, market
information, demand and supply,
market research
• Forms of Selling
1.Retailing is selling in small quantities.
– Classification of Retailing
a) General store, permanent institution in the economic life of the
country. It carried a wide variety of items
b) Single line store specialize in one single item.
c) Convenient store includes coffee shop, bakery shops candy
stores magazine and newspaper stands located in business
districts
d) Specialty shop specializes in certain items which the busy
department store cannot offer
e) Itinerant store or rolling store
f) Large scale retailing like variety store, mail order house,
supermarket department store
• Business plan – blueprint guide, detailed
roadmap
• Research study – an systematic
assessment
• Feasibility study – well documented
• Outline of Feasibility Study
1. Evaluate your personal resources and
interest, and the resources of the community
2. Analyze the market
3. Business location
4. Financial Plan
5. Production plan
6. Organizational Plan
7. Management plan
• CLASSIFICATION OF BUSINESS
ORGANIZATION
Sole Is owned and operated by one individual. The owner is called
Proprietorship the proprietor.
A legal arrangement of two or more owners who call themselves
“partners” .They have shared responsibility when it comes to
contributing funds, property for the enterprise. Likewise, they
Partnership divide profit among themselves.
 Articles of Co-Partnership – a formal business agreement
that partners create and sign.
The corporation is bounded by the law as a single entity. It is
an organization composed of more than five individuals who
own shares.
Corporation  Share – A portion of money or property that signifies
ownership of the company.
 Dividend – A portion of earning made the company given to
its shareholder
An enterprise that is owned and operated by group of
Cooperative individuals for their own benefits.
• TWO TYPES OF MANAGING
1. Managing Business
a. Keeping clear records
b. Verifying profit and loss
c. Managing cash flow

2. Managing Enterprise
•Distribution channel
a. Cooperatives
b. Independent, locally based private enterprise
c. Marketing boards and other state enterprises
d. Transnational companies
BLESSING NOTES
• first and foremost for entrepreneurs –
Being a good follower first
• base the type of business, Availability of
resources and time for business
• distributed among the stock holders,
Dividend
• step-by-step procedure – Project
proposal
• how the business will be managed –
Market study
• key ingredient to entrepreneurship is
placed on – Innovation
• can identify a good business through, The
availability of supply, interest, capacity and
skills
• Attracting buyers depends on,
Consumers likes and dislikes
• Risk taker – Acceptance of challenges
and changes
• working together – Coordinating
• Entrepreneurship refers to any lawful
activity
• first step to put up her own business,
Application of mayor’s permit to
operate
• records the financial operations –
Bookkeeping
• true about debit and credit, Debit increase
asset and decrease liabilities
• Entrepreneur, A person who is able to
look at the environment and identify
opportunities
• Objective – aim of business organizations
• Magna Carta for Small Enterprises – RA
6977
• agreement in a corporation – article of
incorporation
• agreement in a partnership – Articles of
Co-Partnership
• Machinery and/or equipment, Capital
assets
• buying and selling of goods and services
through internet, Electronic commerce
• factor should be considered a priority in
finding a location, labor supply
• Marketing – point of production to the
point of consumption
• Profit is an indicator – Business
• ability to create new things, invest in new
enterprises and expand business –
Entrepreneurship
• factors must he possess that will not rely
on services of employees – Knowledge /
Skills
• match the needs of the society, must be
based on felt needs
• SWOT analyze business opportunities
• Communicates with people through
interviews, observations and
advertisement – Marketing study
• communicate the product to customers,
Promotion
• most important in choosing the best
location, access to supplies and raw
materials
• market refers to people, institutions or
organizations for whom the business is
designed
• how to increase profits – not included in
planning a business
• benefit of business planning, eliminate
business risk
• planning – thinking ahead of objectives
• environment includes technological, social
and ethical/political factors – Macro
environment
• purchased a right to operate an already
established business – Franchise
• Entrepreneur – principal actor of the
production
• tangible used in the production – Material
resources
• start-up – establishing a business from
scratch
• market describes the buyers and users of
the product and the area of dispersion –
market study
• superior delegates authority to a
subordinate – line type
• disadvantage of a functional type of
organization, Morale is likely to be low
when discipline is weak
• Private label brand – type of product, as
designed, produced and marketed by the
seller
• NOT needed by an entrepreneur –
Working skills
• Entrepreneur, seeks to create value for
local communities, people or customer
by starting new ventures which exploit
new products, processes or markets
• INAPPROPRIATE in starting a business,
Cope with failures of the business
• NOT a source of fund, Seek assistance
from Central Bank of the Philippines
• INAPPROPRIATE – Relaxed
• UNDESIRABLE – Impassive
• primary cause of failure in small business
– Poor location
• turning daydream into reality –
Enthusiasm
• Enthusiasm – gives the energy to pursue
his endeavors
• able to withstand the troubles –
Perseverance
• physical meeting point – Exchange
functions
• actual flow of commodities through space
and time – Physical functions
• marketing objective is NOT true, Maintain
instability of supply and demand for
marketed goods
• Place – vehicle for informing target market
• price cutting or relaunching the product –
Maturity
• NOT appropriate in running a small-scale
business – Distribution channel
• Shareholders, Independent, locally
based private enterprise
• defeat and exit the market – Decline
• tangible and intangible aspects – Product
• SWOT analysis – assess entrepreneurial
projects
• PEST analysis – opportunities and threats
• SWOT, Strengths-Weaknesses-
Opportunities-Threats
• final stage in the marketing planning –
Control
• target market, is attractive to the
business and matches its supply
capabilities
• well documented – Feasibility study
• Blueprint – Business plan
• successful entrepreneurial activity –
Careful planning
• Coffee and Cake apply – Marketing
concept
• Assess entrepreneurial projects –
Competitor analysis
• Do things faster – efficiency
• Blending of variables – Variable research
• Help community and government – Salary
and Taxes
• Person who is enterprising, has high level
of technical knowledge
• Monthly load payment – Principal +
Interest
• Where are we now? – first stage in the
marketing planning
• Irritated – NOT a characteristic of an
entrepreneur