LEARNING MODULE

Program Outcomes:

Course Title: Entrepreneurship

Course Description:
This course deals with the concepts, underlying principles, processes and implementation of a
business plan. The preliminaries of this course include the following: 1) discussion on the relevance of the
course; 2) explanation of key concepts of common competencies; 3) explanation of core competencies
relative to the course; and 4) exploration of career opportunities.

Course Outcomes:
In this course, you should be able to:

Module 1 – The Development of the Business Plan

Introduction:

Module Learning Outcomes:

In this module, you should be able to:
1. The learner should be able to demonstrate understanding of key concepts, underlying principles
and core competencies in entrepreneurship.

Lesson 1
Introduction to Entrepreneurship

I. Learning Outcomes:

In this lesson, you should be able to:

1. Discuss the relevance of the course;
2. Explain key concepts and common characteristics to become a successful entrepreneur;
3. Identify core competencies in Entrepreneurship; and
4. Explore possible job opportunities with Entrepreneurship as a career

II. Pre-Assessment: True or False

_____________ 1. An entrepreneur is the only resource that is not getting scarce.
_____________ 2. The entrepreneur’s mind is like a giant wheel that turns without stopping.
_____________ 3. The entrepreneur unselfishly gives pointers on how to be successful, how to handle
difficulties and how to rise up in the face of adversaries.
_____________ 4. Being an entrepreneur is limited to people with business degree only.
_____________ 5. An entrepreneur is someone who is internally driven by an intense desire to compete
against self-imposed standards as it pursues highly challenging tasks.
_____________ 6. A total commitment and dedication towards achieving success as an entrepreneur can
overcome any obstacles and setbacks.
_____________ 7. Most successful entrepreneurs have highly qualified and high performing teams that
are strongly motivated to handle the venture’s growth and development.
_____________ 8. The desire for independence is a driving force behind entrepreneurs.
_____________ 9. Entrepreneurship graduates must do nothing but doing business alone.
_____________ 10. An entrepreneur is a dreamer and would turn vision into reality
III. Lesson Map:

Introduction to
Entrepreneurship

Key Concepts in Core Competencies of an

Relevance of the Course Job Opportunities
Entrepreneurship Entrepreneur

IV. Core Content:

ENGAGE:

Activity 1

1. Choose at least three (3) businessmen featured above and name the companies they owned.
 2. In your opinion, what are the traits do these entrepreneurs have in common that contributed to
their success? Give at least three (3).
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EXPLORE:

Success Story: Henry Sy Sr., Philippines’ Richest Man

We all know Henry Sy as one of the richest tycoons in the Philippines. However, not all people
know what happened before all these achievements came into his life. Read up and see what made him
become one of the country’s successful entrepreneurs.

Believe it or not, Henry Sy’s story was a ‘rags to riches’ kind of tale. Born in Xiamen, China in
November 1924, Henry Sy was not born with a silver spoon in his mouth. Wanting to escape poverty,
Henry followed his father to the Philippines only to experience a miserable youth in a foreign country.
Sy struggled hard living in a foreign country as an immigrant and had to learn the local language.
Determined to become successful, he worked hard day and night to provide for his needs.

Sy started out with a small sari-sari store business that helped them in their day-to-day life. Sy
and his father lived in a small space until the fruits of their labor made them successful in the following
years. However, when the Philippine economy collapsed in World War II, their store burned down that
forced his father to go back to China. Henry Sy stayed in the Philippines and built his own shoe
business in Marikina.

Sy did not have an overnight success. He enrolled himself to school and was able to graduate
college with a degree in commerce from Far Eastern University. Sy also changed legal names, sold
rejected and overrun shoes, plus many other setbacks that he had to face early in life. He did not give
up and pushed through maybe because he knew that something big, which is what he has now, is about
to come.

After a series of failures in his business, Henry Sy stood back up and persevered to attain his
goal. He established a small shoe store in Quiapo, Manila in 1958 named “Shoe Mart” that eventually
marked the establishment of SM Prime Holdings. Now with three of the most valuable companies in
the Philippines: SM Investments Corp. and SM Prime Holdings Inc., valued at over Php 1 trillion each,
and BDO Unibank, valued at around Php 635 million, he has become the richest man in the country for
11 consecutive years since 2005 and ranked 52nd in Forbes World Billionaires List of 2018.

With his inspiring story, one can learn about the ideals of success. Henry Sy tells us not to give
up on our dreams, no matter how far-fetched it seems.

Who knows, maybe yours is the next success story to tell!

Activity 2: Story Analysis

1. Based on the story above, what do you think are the traits/characteristics’ Henry Sy, Sr. possessed
to become one of the richest entrepreneurs in the Philippines?

Henry Sy's
Charcteristics

2. Henry Sy, Sr. took up a business degree from Far Eastern University; do you think the course he
took is relevant to what he is today? Why?
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EXPLAIN:

I. Relevance of the course

The course provides the basics of entrepreneurship, the required competencies of would-be
entrepreneurs and key concepts that are relevant towards the development of entrepreneurial minds. This
course would also assist exploration of possible career opportunities that would expand business
initiatives that are economically feasible.

Activity 3.1: Self-Assessment Question

As an ABM student, what do you think is the relevance of taking an entrepreneurship subject in
your chosen track?

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II. Key Concepts

In the discipline of economics, an entrepreneur is a resource that is getting scarce. The world’s
population is expanding at a pace so fast that consumption of resources is more that the rate in which
these can be replaced or replenished. As an economic resource, an entrepreneur is someone who can put
land, labor and capital into good use. So what does an entrepreneur do?

 An entrepreneur is an innovator who never runs out of ideas. The entrepreneur’s mind is like a
giant wheel that turns without stopping.
 An entrepreneur is a creative artist who is constantly ready to transform trash into art
 An entrepreneur is an opportunity seeker and would tirelessly pursue incredible, out of this world
ideas.
 An entrepreneur is a dreamer and would turn vision into reality.
 An entrepreneur does not grow old. Remember that age is just a physical manifestation of
maturity but the mind is always as young as a child’s, forever yearning for new things to learn
and explore
 An entrepreneur is an adventurer who would sail through rough seas and sweep the tumultuous
skies, steadfast and without fear.
 An entrepreneur has bruises and scars all over, and considers those as priceless possessions
because every wound carries lessons learned and wisdom gained

An entrepreneur is a compassionate human, ready to share and give advice to others who would like
to tread the same path. The entrepreneur unselfishly gives pointers on how to be successful, how to
handle difficulties and how to rise up in the face of adversaries. The entrepreneur tirelessly gives advice
on others who fall and fail, and would always encourage these people to never give up.

Activity 3.2: Self-Assessment Question

Given the different concepts and definitions of an entrepreneur above, what is your own
understanding of an entrepreneur?

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III. How does one become an entrepreneur?

1. Open the eyes and scan the surroundings. Look at them as canvasses that are bare, woods that
are shapeless and mounds of clay that are waiting to be turned into beautiful works of art.
2. Treat problems as opportunities. Remember there are no problems that cannot be solved. When
bad things happen, that means several opportunities were created.
3. Don’t be afraid to experiment and fail. There is always a second time.
 4. It is alright to feel pain, get angry, and become frustrated or even give up for a short while.
After all an entrepreneur is only human. What is more important is the ability to move on, with
the same or even greater enthusiasm to start anew.

Can anyone be an entrepreneur? The good news is YES. Every person born is gifted with this
ability and is just waiting to be tapped. Keep in mind that no one has sole mastery or has the secret key to
entrepreneurial abilities. Everybody can be a master entrepreneur in his or her own right. The world is a
huge stage where everyone can fit in and do magic. After all, God gifted the earth with many bounties
that men ought to transform and use those, for the good of all creatures. It’s about time that everyone use
these gifts because the world has already so much problems than it can bear and time is running out.

IV. The Entrepreneurial Mindset – Core Competencies

Kuratko (2012) discussed several related characteristics associated with entrepreneurs that were
gathered largely from various literatures and these are the following:

 Commitment, determination and perseverance . A total commitment and dedication towards

achieving success as an entrepreneur can overcome any obstacles and setbacks. More often,
entrepreneurs with high-potential business ventures that require venture capitalization financing
are willing to give up personal assets.
 Drive to Achieve. An entrepreneur is someone who is internally driven by an intense desire to
compete against self-imposed standards as it pursues highly challenging tasks. They are self-
starters, they often examine situations and are determined on how to increase the possibilities of
winning, and then proceed with it.
 Opportunity Orientation. This characteristic refers to the constant awareness of opportunities that
exist every day. Successful entrepreneurs start with opportunity identification. They set high but
achievable goals and focus their energies and know when to say “no”; allowing them to set
priorities and define how well they are performing based on measures set.
 Initiative and Responsibility. They are willing to put themselves in situations where they are
highly accountable and personally responsible for the success or failure of the operation. They
also seek for situations where their personal impact on issues and problems can be measured.
 Persistent problem solving. Entrepreneurs are very seldom intimidated by difficult situations, and
they use their self-confidence and overall optimism to view those impossible tasks to become
possible. They also recognize when they need help and where they can get them.
 Seeking Feedback. They also have a strong desire to know how well they are doing and how they
might improve their performance. In attempting to make these determinations, they actively seek
out and use feedback. Feedback is also central to their learning from mistakes and setbacks.
 Internal Locus of Control. Successful entrepreneurs believe in themselves. They do not believe
that the success or failure of their venture will be governed by fate, luck, or similar forces. They
believe that their accomplishments and setbacks are within their own control and influence, and
that they can affect the outcome of their actions.
 Tolerance for Ambiguity. Start-up entrepreneurs face uncertainty compounded by constant
changes that introduce ambiguity and stress into every aspect of the enterprise. Setbacks and
surprises are inevitable; lack of organization, structure and order is a way of life. A tolerance for
ambiguity exists when the entrepreneur can deal with the various setbacks and changes that
constantly confront him or her.
 Calculated Risk Taking. When they decide to participate in a venture, they do so in a very
calculated, carefully though-out manner. They do everything possible to get the odds in their
favor, and they often avoid taking unnecessary risks.
  Integrity and Reliability. Integrity and reliability are the glue and fiber that bind successful
personal and business relationships and make them endure. Investors, partners, customers, and
creditors alike value these attributes highly. Integrity and reliability help build and sustain trust
and confidence.
 Tolerance for Failure. Entrepreneurs use failure as a learning experience. The most effective
entrepreneurs are realistic enough to expect such difficulties. Furthermore, they do not become
disappointed, discouraged, or depressed by setback or failure. In adverse and difficult times, they
look for opportunity.
 High Energy Level. The extraordinary workloads and stressful demands placed on entrepreneurs
put a premium on their energy. Many entrepreneurs fine-tune their energy levels by carefully
monitoring what they eat and drink, establishing exercise routines, and knowing when to get
away for relaxation.
 Creativity and Innovativeness. Creativity was once regarded as an exclusively inherited trait.
New ventures often possess a collective creativity that emerges from the joint efforts of the
founders and personnel and produces unique goods and services.
 Vision. Entrepreneurs know where they want to go. They have a vision or concept of what their
firms can be. In many cases, this vision develops over time as the individual begins to realize
what the firm is and what it can become.
 Self-Confidence and Optimism. During down times, they maintain confidence and make it known
to others. These aids in helping them maintain optimism and create self-confidence necessary for
a group.
 Independence. The desire for independence is a driving force behind entrepreneurs. They refuse
rigid, bureaucratic systems with a sincere commitment to make things different. This is not to say
that entrepreneurs must make all decisions however they want the authority to make the
important ones.
 Team Building. The entrepreneur desires to build a strong entrepreneurial team. Most successful
entrepreneurs have highly qualified and high performing teams that are strongly motivated to
handle the venture’s growth and development.

V. Job opportunities for entrepreneurs

According to Michalowicz, there are entrepreneurship graduates who would not want to start their
own ventures yet. There are many other options and very few limitations. Rather than simply focusing on
the “entrepreneurial” aspect of your degree, consider all that you learned to get that degree. Most likely
there were courses that covered creativity, innovation, ethics, marketing, finance, and a wide variety of
other topics. Focus on those skills and concepts and see where you can use them.
 Mid-level management – in big companies, the c-level employee works on developing ideas.
Mid-level management converts ideas to actual implementation.
 Business consultant – these are professionals who go to clients, help them identify problems and
fix them. Entrepreneurs are trained to help identify factors that others may not easily pick up.
 Sales - someone who works in sales or runs the department needs to know how businesses run.
They need to know how to represent a company, manage accounts, and follow up on leads. 
 Research and development - to work in R&D, you need to understand business concepts,
procedures, and practices. With all of the training and education someone has received learning
about entrepreneurship; they are well prepared for this type of position.
 Not-for-profit fundraiser - Being able to raise funds requires understanding the importance of
business and networking relationships.
 Teacher – As a teacher it is suggested to teach a core competency (e.g., math, history, literature,
etc.), but teach students the entrepreneurial side. Teach them the benefits of math to business,
history to innovation, and literature to persuasive advertising.
  Recruiter - Having had courses that cover operations management, leadership, and a variety of
others, you most likely have a keen sense of what type of person is needed to fulfill a position.
 Business reporter - If you can write articles, or pick up a quick class to learn it, you are in a prime
position to take the lead on covering a local business beat. You will understand the field and
concepts and can use your knowledge to make the business section that much more interesting
and telling.

EXTEND
1. How do the following competencies relate to entrepreneurs?
 Desire to achieve - ______________________________________________________________
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 Opportunity orientation - _________________________________________________________
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 Persistent problem solving - _______________________________________________________
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2. Is it true that most successful entrepreneurs have failed at some point in their business careers?
Explain.
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3. In what way is “vision” important to entrepreneurs?
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EVALUATE:
Identify two (2) successful Filipino entrepreneurs who started from scratch.

a. Give a short story of how they became successful entrepreneurs.

b. What are the traits/competencies they possessed to achieve what they are today? Give at least 5

Name of Entrepreneur 1: Name of Entrepreneur 2:

Success Story: Success Story:
 Traits/competencies possessed: Traits/competencies possessed:

V. Topic Summary
In this lesson, you would be able to:
 In economics, an entrepreneur is a resource that is getting scarce.
 As an economic resource, an entrepreneur is someone who can put land, labor and capital into
good use.
 Entrepreneurs do a lot of things. From planning up until the delivery of the product/service.
 Anyone can be an entrepreneur as long as they have the drive to do it and possess traits to become
an entrepreneur.
 Not all entrepreneurship graduates start their own ventures yet. However, there are many other
options and job opportunities that can be explored such as Mid-level management, Business
consultant, Sales, Research and development, Not-for-profit fundraiser, Teacher, Recruiter,
Business reporter.

VI. Post – Assessment

_________________ 1. An innovator who never runs out of ideas.
_________________ 2. Someone who can put land, labor and capital into good use.
_________________ 3. It was once regarded as an exclusively inherited trait.
_________________ 4. A creative artist who is constantly ready to transform trash into art.
_________________ 5. Exists when the entrepreneur can deal with the various setbacks and changes that
constantly confront him or her.
_________________ 6. In this job opportunity, you need to understand business concepts, procedures,
and practices.
_________________ 7. In this job opportunity, you need to understand the field and concepts and can use
your knowledge to make the business section that much more interesting and telling.
__________________8. In this competency, entrepreneurs refuse rigid, bureaucratic systems with a
sincere commitment to make things different.
_________________ 9. This may develops over time as the individual begins to realize what the firm is
and what it can become.
_________________ 10. Someone who is internally driven by an intense desire to compete against self-
imposed standards as it pursues highly challenging tasks.

VII. References

 Kuratku, D. (2012). Entrepreneurship: an introduction. Cengage Learning.

 Michalowicz, M. 8 jobs you can get with an entrepreneurship degree. Open Forum. Retrieved
from https://www.americanexpress.com/us/small-business/openforum/articles/8-jobs-you-can-
get-with-an-entrepreneurship-degree/
 https://primer.com.ph/business/2015/12/27/success-story-henry-sy-sr/

Lesson 2
Planning the Enterprise

I. Learning Outcomes:

In this lesson, you should be able to:

1. Define the meaning and purpose of a business plan.
2. Discuss how enterprise delivery system works.
3. Differentiate mission and vision.
4. Distinguish the various contents of a business plan.
5. Make you own business plan.

II. Pre-Assessment:
1. Entrepreneurs who plan to enter any business endeavor must have a business plan on hand to guide
them throughout the process.
True False
2. A marketing plan helps convey the capabilities and competencies of their owners and managers, sells
the proponent and the business proposition to the audience, and to convince investors and financiers.
True False
3. A business concept is a formula on how the enterprise exactly plans to make money out of the business.
True False
4. Objectives must be more specific than the vision and mission statements.
True False
5. Executive summary is a synthesis of the entire plan.
True False
6. If the business plan readers are the investors and financiers, they will want to know what programs,
activities, tasks and resources would be in place.
True False
7. The business proponent must be very precise about the target audience or target customers.
True False
8. The products /services must be described by highlighting the features and attributed that would most
appeal to the target customers.
True False
9. Conversion of input into output and the transformation process within the factory or service shop is
called marketing.
True False
10. The business plan should then show the Enterprise Delivery System (EDS) would enable the business
to implement the Enterprise Strategy.
True False

III. Lesson Map:

Business Plan

Masters of the business plan Contents of a business plan

When to write a business plan
*Entrepreneur *Introduction
*Prior the business
*Investors & financiers *Executive Summary
*During the business
*Managers & Staff *The Business Proponents
*The Target Customers
*The Market
*The Product & Service
*The Enterprise Strategy & EDS
*The Financial Forecast & Returns
*Environment & Regulatory
Compliance
*The Capital Structure & Financial
Offering

IV. Core Content:

ENGAGE:

1. What does the picture imply?

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2. Is the concept implied in the picture applicable in business? How?

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EXPLORE:

Duterte adviser urges GCQ till year-end

for better business planning
By: Julie M. Aurelio, Roy Stephen C. Canivel
Philippine Daily Inquirer / 05:00 AM August 01, 2020

Amid the continuing rise in COVID-19 cases in the country, President Rodrigo Duterte
announced on Friday that Metro Manila and 12 other areas would remain under general community
quarantine (GCQ) until Aug. 15.

Quarantine restrictions

The government also announced that it may ease restrictions on more business establishments
—although more health protocols may be imposed—in a bid to contain the rising infections in the
country as well as the economic recession that has rendered at least seven million Filipinos jobless.

But Presidential Adviser for Entrepreneurship Joey Concepcion urged the President to extend
the GCQ up to the end of the year so that businessmen could make plans that include quarantine
restrictions, especially at a time when they are already preparing for higher demand during the holiday
season.

“The question should not be [whether] we are retaining it every 15 days. We have to be able
to retain it to the end of the year,” said Concepcion, who also heads food and beverage company RFM
Corp. “That’s because August is the beginning of higher demand given the approaching Christmas
season. So any ECQ [enhanced community quarantine] that happens would be disastrous for the
economy.”

In a recorded television footage released on Friday morning, President Duterte announced the
extension of the GCQ upon the recommendation of the Inter-Agency Task Force for the Management
of Emerging Infectious Diseases (IATF).

Also placed under GCQ were Bulacan, Batangas, Cavite, Laguna and Rizal in Luzon; Cebu
City, Lapu-Lapu City, Mandaue City, Minglanilla and Consolacion towns in Cebu province for the
Visayas; and Zamboanga City in Mindanao.

1. What does the article imply?

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 2. What would be the positive effects of having a business plan in the midst on today’s pandemic?
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EXPLAIN:

I. What is a business plan for?

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. A
business plan helps convey the capabilities and competencies of their owners and managers, sells the
proponent and the business proposition to the audience, and to convince investors and financiers. These
are situations when a good business plan is needed.

 A business plan serves many masters. It includes:

1. The entrepreneur
2. Investors and financiers
3. Managers and Staff

 When to write a business plan and the purpose of writing it:

1. Prior setting up an enterprise – to convince prospective business investors about the soundness
and potential of their business.
2. During the first few years of the business- to guide the entrepreneur on which strategies would be
most beneficial for the enterprise to take.

II. Contents of the Business Plan

1. Introduction
1-a. The Business Concept and the Business Model
A business concept contains the essence of the enterprise in a concise but powerful manner. It
stresses the value of the product offering to the target customers who would most likely buy it while
product concept must then be translated into a business model. A business model is a formula on how the
enterprise exactly plans to make money out of the business.

 Four areas of money making which the business model must address:
1. How will the business raise revenues? What critical factors will cause the revenues to
materialize?
2. What will be the costs of the enterprise products and other costs of doing business? How will
these costs be managed to ensure comfortable profits? What critical factors will drive the cost?
How can these factors be controlled?
3. What will be the major investments of the enterprise? Why will these investments give the
enterprise a competitive edge?
4. How will the enterprise finance the investments? How will the enterprise fund its growth?

1-b. The Business Goals: Vision, Mission, Objectives, and Performance Targets
The business goals show the future and long-term prospects of the enterprise. It is composed of
the vision, mission, objectives, key result areas, and performance indicators of the enterprise.
 To illustrate, let us examine the vision of Double Happiness. Double Happiness is an eatery in a
bus terminal. It has three outlets located at bus terminals in Central Luzon.

Case Example 1: Double Happiness

The VISION of Double Happiness is “to establish a commanding presence and market
leadership as a food chain servicing major bus terminals in Central Luzon within the next five
years.”
The business goals are communicated by articulating the basic purpose of setting up the
enterprise in a mission statement. Needless to say, all business enterprises are established for the
purpose of making money for its investors.

The MISSION of Double Happiness is “to provide quality food and passenger convenience
services that would generate sufficient profits for the stockholders and improve the lives of its
employees.”

The vision and the mission statements must then be translated into measurable end results, more
popularly called objectives. OBJECTIVES must be more specific than the vision and mission
statements. They should be measurable, achievable, and time-bound.
For Double Happiness, their stated objectives are:
1. To establish a strong market presence in Central Luzon;
2. To delight customers with high quality food and services; and
3. To make Double Happiness a happy and rewarding place to work in.

The objectives should then be translated into KEY RESULT AREAS or KRA, the qualitative
manifestations that the objectives are being achieved.

In the case of Double Happiness, the key result areas for each of the objectives are as follows:
Objectives Key Result Areas
1. To establish a strong market 1a. Number of food outlets in major bus terminals
presence in Central Luzon in Central Luzon
1b. Sales volume attained
1c. Market share in Central Luzon
2. To delight customers with high 2a. Growth in sales per outlet
quality food and services 2b. Percentage of repeat customers
2c. Customer survey rating to ascertain customers’ degree
of
delight
3. To make Double Happiness a 3a. Compensation and benefits of managers and workers
happy and rewarding place to work are
in above industry rates.
3b. Management and employee turnover
3c. Number of job applicants compared to other similar
establishments

In turn, the key result areas must be rendered in quantified performance measurements,
otherwise called. PERFORMANCE INDICATORS. These performance indicators serve as the
aspirational scorecard of the enterprise managers and the motivational results of the investors.

In the case of Double Happiness, the performance indicators for each of the key result areas are
 as follows:
Key Result Areas Performance Indicators
2019 2020 2021
1a. Number of food outlets in 3 5 20
major bus terminals in Central
Luzon
1b. Sales volume attained P7 million P13 million P60 million
1c. Market share in Central 2% 3% 12%
Luzon
2a. Growth in sales per outlet 20% 20% 20%
2b. Percentage of repeat 30% 40% 50%
customers
2c. Customer survey rating to 3.5 4 4.5
ascertain customers’ degree of (on a scale of 1 to 5) (on a scale of 1 to 5) (on a scale of 1 to 5)
delight
3a. Compensation and benefits Same as Industry 5% above 15% above
of managers and workers are Industry Industry
above industry rates.
3b. Management and employee 3/10 per year 1/10 per year
turnover 2/10 per year
3c. Number of job applicants 10% more applicant 10% more
compared to other similar 20% more applicants applicant
establishments

2. The Executive Summary

 The executive summary contains everything that is relevant and important to the business
audience.
 It is a synthesis of the entire plan.
 Must contain major argumentations of the business proponent on why the business will work and
succeed.
 It should provide the business plan audience all the arguments on why they should participate in
the business venture.
 It should likewise describe the products/services of the enterprise, their features and attributes,
and why they are the right ones to deliver to the customers.
 It should then proceed to discuss and justify the Enterprise Strategy and Enterprise Delivery
System.
 It should then render all the major institutional, market, operations, and organizational strategies
previously cited into financial strategies and forecasts.
 Investment requirements should be presented along with the summaries of the financial aspects.
 Must contain a section on the environmental and regulatory compliance of the proposed business.
 Should present the capital structure of the proposed business and show how this structure will
respond to the investment programs and financial forecasts of the enterprise.
 Executive summary CAN ONLY BE WRITTEN LAST in order to capture the findings and
insights of the other parts, but for presentation purposes, it is placed in the first part of the
business plan.

3. The Business Proponents

The third section of the business plan contains information about the business proponents or
stakeholder. There are 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

 If the business plan readers are the resource mobilizers and financial backers, then they will want
to know who else are on board to share the burden of raising money to see the whole thing.
 If the business plan readers are the technology providers and applicators, they will want to know
if there will be sufficient funds to pay for the technology.
 If the business plan readers are the governance and top management team, they want to know
what strategies and performance indicators are being proposed.
 If the business plan readers are the operating and support teams, they will want to know what
programs, activities, tasks and resources would be in place.

4. The Target Customers and the Main Value Proposition

The business proponent must be very 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 products being offered by the enterprise. The Main Value Proposition is the unique selling
proposition of the enterprise.
Knowing where the target customers are exactly concentrated, the business plan should then
pinpoint what the customers buy, how they buy, when they buy, where they buy, and what convinces
them buy.

5. Market Demand and Supply, Industry Dynamics, and Macro Environmental Factors
 The business proponent should examine all the opportunities in a market in order to determine
what exactly influences the market.
 Should estimate the total market supply and demand for the product offerings of the enterprise.
 Should determine the major critical factors that influence market demand and supply.
 Should forecast the future demand and supply.
 The market analysis and forecasting exercise should lead to a quantification of the current and
prospective size of the market.

The business plan should discuss the relevant industry dynamics:

1. Who are the competing enterprises in the industry and what are the comparative advantages and
disadvantages? What business models and strategies are they employing?
2. Who are the suppliers in the industry and what are their capabilities and bargaining power?
3. What are the channels of distribution being used by the industry? How effective are these
channels?

Both the industry players and the market are affected by the macro environment, which includes the
social, political, economic, ecological, and technological forces to be discussed on the next lesson.

1. Product/Service Offering: Description, Evolution, and Justification

 The products /services must be described by highlighting the features and attributed that would
most appeal to the target customers.
 Should also prove that the products/services would be accepted and carried by the distribution
channels.

7. Enterprise Strategy and Enterprise Delivery System

  The business plan should then show the Enterprise Delivery System (EDS) would enable the
business to implement the Enterprise Strategy.

Enterprise Delivery System

Input Throughput Output Marketing Desired

(the transformation (how the output is
(resources mobilized)
process)
(product/service)
marketed) Outcome

Desired
Input Throughput Output Marketing
Outcomes
*Harnessing of * Conversion of *Goods produced *Positioning * Customer
human, money, input into output or services *Product Satisfied
and physical and the delivered *Packaging * Sales volume
resources. transformation *Place attained
process within the *People * Profits
*Resources factory or service *Promotion generated
mobilized shop *Price * People
- Money Performance
- Men
- Machine
- Materials
- Methods
- Management

8. Financial Forecasts: Expected Returns, Risks, and Contingencies

 The business plan must translate into financial forecasts and outcomes.
 From the financial forecasts, the business plan should then calculate the expected returns from the
business such as (1) expected return on sales; (2) expected return on assets or investments; and
(3) expected return on stockholder’s equity.
 It must calculate the long-term returns and the expected net present value.
 Must then evaluate both the business risks and the financial risks involved.

9. Environmental and Regulatory Compliance

 Must articulate the laws, rules, and regulations governing the business, and the industry that the
enterprise is in.
 It should ascertain that all the necessary permits, licenses, and authority to use proprietary
intellectual capital had either been secured or would definitely be secured.
 It should also assure the reader that all the necessary local government ordinances and barangay
ethics would be followed by the enterprise.

10. Capital Structure and Financial Offering: Returns and Benefits to Investors, Financiers, and
Partners
 Must contain the capital structure and financial offerings of the enterprise including some
discussions on who are the investors, the financiers, and the partners of the enterprise.
 It must highlight for them the main features of the business plan that they are looking for.

EXTEND:
Based on the discussion above, answer the following questions:
 1. In your own opinion, what is a business plan and what is its main purpose?
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2. Differentiate mission and vision.

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3. Discuss and give one (1) example for the Enterprise Delivery System.
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EVALUATE:

Instruction: Think of a simple business that will be patronized by your customers during this pandemic
then make your own simple business plan by using the format and contents discussed above. You may
use another paper.

Business Title
I. Introduction
a. The Business Concept and the Business Model
b. The Business Goals: Vision, Mission, Objectives, and Performance Target
c. The Business Offering and Justification
II. Executive Summary
III. The Business Proponents
IV. The Target Customers and Main Value Proposition
V. The Target Market, Justification and The Macro Environmental Factors
VI. The Product and Service Offerings
VII. The Enterprise Strategy and Enterprise Delivery Systems
VIII. The Financial Forecasts and Expected Returns, Risks, and Contingencies
IX. Environmental and Regulatory Compliance
X. The Capital Structure and Financial Offering

V. Topic Summary
 A business plan serves as a navigational course or guide to the entrepreneur.
 Business plans are prepared for different purposes and masters; as a guide for the entrepreneur
and the management, and a bird’s eye view for the investors and financiers.
  A business plan is consists of various parts including: (1) Introduction, (2) Executive Summary,
(3) The Business Proponents, (4) The target customers and main value proposition, (5) The target
market, justification and the Macro environmental Factors, (6) The product and service offerings,
(7) The enterprise strategy and enterprise delivery systems, (8) The financial forecasts and
expected returns, risks, and contingencies, (9) Environmental and Regulatory Compliance, and
(10) The capital structure and financial offering
 Target Customers must be of sufficient size, sufficient paying capacity, and have sufficient
interest to purchase the products being offered by the enterprise.
 The Main Value Proposition is the unique selling proposition of the enterprise.
 The business goals show the future and long-term prospects of the enterprise and are composed of
the vision, mission, objectives, key result areas, and performance indicators of the enterprise.
 The business proponent should examine all the opportunities in a market in order to determine
what exactly influences the market.

VI. Post – Assessment

________________1. Helps convey the capabilities and competencies of their owners and managers, sells
the proponent and the business proposition to the audience, and to convince investors and financiers.
________________2. A part of the business plan that must articulate the laws, rules, and regulations
governing the business, and the industry that the enterprise is in.
________________3. Conversion of input into output and the transformation process within the factory
or service shop.
________________4. The one tasked to examine all the opportunities in a market in order to determine
what exactly influences the market.
________________5. It must be of sufficient size, sufficient paying capacity, and have sufficient interest
to purchase the products being offered by the enterprise.
________________6. It is the unique selling proposition of the enterprise.
________________7. It helps convey the capabilities and competencies of their owners and managers,
sells the proponent and the business proposition to the audience, and to convince investors and financiers.
________________8. It is a synthesis of the entire plan.
________________9. Defined as the qualitative manifestations that the objectives are being achieved.
________________10. This serves as the aspirational scorecard of the enterprise managers and the
motivational results of the investors.

VII. References

 Morato Jr., E. Entrepreneurship. Rex Bookstore., 2018

 Kuratku, D. (2012). Entrepreneurship: an introduction. Cengage Learning.
 https://newsinfo.inquirer.net/1315153/duterte-adviser-urges-gcq-till-year-end-for-better-business-
planning