Recognize a

Potential Market
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.

 The entrepreneurial process of creating a new

venture is presented in the diagram below.
(Aduana, 2017)
 Figure
1. The Entrepreneurial Process of Creating New
Venture
Creation of Opening of
entrepreneuri entrepreneurial
al Ideas Venture

Identification of
entrepreneurial
Opportunities
Essentials in Entrepreneur’s
Opportunity Seeking
1. Entrepreneurial mind frame
 This allows the entrepreneur to see things

in a very positive and optimistic way in the

midst of difficult situation.
 Ex.
 Being a risk - taker, an entrepreneur can

find solution when problems arise.

2. Entrepreneurial heart flame
 Entrepreneur's driven passion, they

are attracted to discover satisfaction

in the act and process of discovery.
Passion is the great desire of an
entrepreneur to achieve his/her
goals.
3. Entrepreneurial gut game
This refers to the ability of the

entrepreneur of being intuitive. This also

known as intuition. The gut game also
means confidence in one’s self and the
firm believes that everything you aspire
can be reached.
Sources of Opportunities
 1.Changes in the environment
◦ Entrepreneurial ideas arise when changes
happen in the external environment. A person
with an entrepreneurial drive views these
changes positively.
◦ External environment refers to the physical
environment, societal environment, and
industry environment where the business
operates.
 Forexample, one factor in the physical
environment that can easily change is the
climate. The temperature is very high during
summer but very low during the rainy season. An
individual with entrepreneurial drive can be
extremely imaginative and inventive in identifying
opportunities. He/she can venture a business
that responds to the needs of the people during
summer and rainy season.
 2.Technological discovery and advancement
◦ A person with entrepreneurial interest sees
possibility of business opportunities in any new
discovery or because of the use of latest
technology.
◦ For example, an individual with knowledge in
repair and installation of a machine engine
discovers that additional engine parts that
considerably reduce fuel consumption.
 3. Government’s thrust, programs, and policies
◦ The priorities, projects, programs, and policies of the
government are also good sources of ideas.
◦ For example, the use of firecrackers to celebrate
New Year’s Eve is strictly prohibited. People without
entrepreneurial interest will view the ordinance as a
plain restriction. However, for an entrepreneur, it is a
business opportunity to come up with a new product
that will serve as a substitute for firecrackers.
4. People’s interest
◦The interest, hobbies, and preferences
of people are rich source of
entrepreneurial ideas. Like the
increasing number of Internet Café at
present could be lead to the strong
attachment of young people to
computers.
 5. Past experiences
◦ The expertise and skills developed by a person
who has worked in a particular field may lead to
the opening of related business enterprise.
◦ For example an accountant who has learned
the appropriate accounting and management
skills and techniques in a prominent accounting
firm can start his/her business venture by
opening his/her own accounting firm.
 Forces of
Competition Model
Itis also known as the “five forces of
competition,” An industry
environment is a competitive
environment. Regardless of what
product or services you have,
competition is always present.
Competition – it is the act or
process of trying to get or win
something. For example, the
prices are lower when there is a
competition among the stores.
These are the five forces competing
within the industry:
• Buyers
• Potential new entrants
• Rivalry among existing firms
• Substitute products
• Supplier
1. Buyers
◦The buyers are the one that pays cash
in exchange to your goods and
services.
◦For example, the influenced of the
price or in the bargaining strategy. The
buyer has a strong and magnified
bargaining power
2. Potential New Entrants
A new entrant is defined as the one

who enters something. For example,

the level of capital requirements, if
the business requires huge capital,
new entrants should decline to join
the business
3. Rivalry among Existing Firms
Rivalry is a state or situation in which

people or groups are competing with

each other. For example it depends on
the Marketing strategy of your
competitor, like giving freebies and
special offers
 4. Substitute Products
Substitute means anything that takes the

place or function of another.

 For example the consumers decide to use

margarine as a substitute for butter. In case

the price of butter increases, preferably the
consumer will gradually switch to
margarine.
 5.Suppliers
The Suppliers are the one that provide

something that is needed or wanted. For

example if the supply and services being
offered is unstable or keep. The intensity of
the threat is strong in this kind of the
competitive force in the industry.
What is a business plan?
 Entrepreneurs who plan to enter any business
endeavor must have a business plan on hand to guide
them throughout the process.
 Different business plans are prepared for different

purposes.
 There are business plans written prior to setting up an

enterprise, which are similar to a prefeasibility study

and feasibility study. many new enterprises need to
convince prospective business investors about the
soundness and potential of their business
Format of a business
plan
 I- Introduction
 The Business concept and the business model- It contains

the essence of the enterprise in a concise but powerful

manner. It stresses the value of the product offering to the
target customer who would most likely buy it.
 The business Goals: Vision, Mission, Objectives,

Performance Targets- The business goals show the future

and long-term prospect of the enterprise. It is composed of
the vision, mission, objectives, key result areas, and
performance indicators of the enterprise.

II- Executive Summary
It contains everything that is relevant

and important to the business audience.

It is a synthesis of the entire plan. It
must contain the major argumentations
of the business proponent on why the
business will work and succeed.
 III-The business Proponents: Organizers with
their Capabilities and Contributions:
 It contains the information about the business

proponents or stakeholders.
 four types of Stakeholders:

1. Resource Mobilizers and financial backers.

2. technology providers and applicators
3. governance and top management
4. Operating and support team
 IV-The Target Customers and the Main
Value proposition- The business proponent
must be precise about the target audience
or target customers. Target Customers must
be of sufficient size, sufficient paying
capacity, and have sufficient interest to
purchase the product being offered by the
enterprise.
 V- Market Demand and Supply, Industry Dynamics,
and Macro Environmental Factors- It is normal for
enterprises o actually expand their product offering
to include the other segments of a bigger market.
Business plan should estimate the total Market
supply and demand for the product offerings of the
enterprise. Both industry players and Markey are
affected by the macro environment, which includes
the social, political, economic, ecological and
technological (SPEET) forces. The business plan
should discuss the major trends and changing
patterns in the macro-environment, which would
have significant impacts on the relevant industry and
the behavior of consumers.
VI- The Product and Services Offerings-
It should contain description, evolution,
and justification of the product /services
offerings. the products/services must be
described by highlighting the features
and attributes that would most appeal to
the to the target customer.
 VII-Enterprise Strategy and Enterprise Delivery
System- the business plan should expound on the
enterprise strategy (ES) by mapping the
competitive landscape and by situating the
enterprise and its competitors as to their
strategies and chosen positioning. The Business
plan should then show how the Enterprise
Delivery System (EDS) would enable the business
to implement the enterprise strategy.
 VIII-Financial forecasts: expected returns, Risks,
and Contingencies- The business plan must
translate everything that we have discussed so far
into financial forecasts and outcome. Then,
calculate the expected returns from the business.
the important return calculations are the following:
(1) expected return on sales;(2) expected return
on assets or investments; and (3) expected return
on stockholders’ equity.
IX- Environmental and Regulatory
Compliance- the business plan
should articulate the laws, rules, and
regulations governing the business,
and the industry that the enterprise
is in.
 X-the Capital Structure and Financial
Offering: Returns and Benefits to Investors,
Financiers, and Business Partners.- It
contains the capital structure and financial
offerings of the enterprise including some
discussions on who are the investors, the
financiers, and the partners on the
enterprise.
Activity.
COMPLETE ME Complete the table below by
supplying it with products that you consider
similar. Write the product and not the brand in
their respective columns. Then describe and
differentiate its characteristics and uses.