MODULE HENTRE (ENTREPRENEURSHIP)

Introduction to the Course

Course Description:
This is based on the Department of Education’s K to 12 Basic Education
Curriculum. It introduces the learners to the key concept and underlying principles of
entrepreneurship. It also seeks to uncover the innate entrepreneurial abilities of the
learners and hone their skills and judgment in finding opportunities amidst crises and
return them into profitable entrepreneurial ventures.

Learning Outcomes: (Objectives of every chapter)

1. Demonstrate knowledge, understanding and application in commerce and
entrepreneurship.
2. Demonstrate skills and competencies in knowledge, theories, concepts and practice
of commerce and entrepreneurship.
3. Portraying abilities to learn independently , creative , innovative and actively
participate in developing business plan
4. Identify the institutions and resources that affect entrepreneurship
5. Identify three characteristic of a growing entrepreneurial firm.
6. Describe how international strategies for entering foreign markets are different from
those for staying in domestic markets.
7. Articulate what you should do to strengthen your entrepreneurial ability on an
international level

8. Explain nature of innovation

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CHAPTER 1: Planning the Enterprises

Objectives:
1. Know the contents of a business plan
2. Determine the business plan

What is business plan?

Entrepreneurs who plan to enter any business endeavor must
have a business plan on hold 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 a feasibility study. Many new
enterprise, need to convince prospective business investors about
the soundness and potential of their business. They need to convey
the capabilities and competencies of their owners and managers.
The business plan must have a specific audience in mind and what important
questions to this audience want answer, In order to aid the entrepreneur in getting his or
her business plan organized, the following format may be a good start:
II. Introduction
A. The business Concept and the Business Model
B. The Business Goal: Vision, Mission, Objectives, and Performance
Targets
C. The Business Offering and Justification
II. Executive Summary
III. The Business Proponent: Organizers with their Capabilities and
Contributions
IV. The Target Customers and the Main Value Proposition to the Customer
V. The Market, Market Justification based on the Industry Dynamics and the
Macro
Environmental Factors Affecting the Opportunities and the Treats in the
Market,
the Size, Potential and Realistic Share of the Market
VI. The Product and Service Offering
VII. the Enterprise Strategy and Enterprise Delivery System: Business
Competitiveness.
VIII. The Financial Forecast and Expected Returns, Risk, and Contingencies
IX. Environmental and Regulatory Compliance
X. The Capital Structure and Financial Offering: Returns and Benefits to
Investors,
Financiers, and Business Partners.

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CONTENTS OF THE BUSINESS PLAN

The Business Concept and the Business Model
A business concept contains the essence of the enterprise on the concise but powerful
manner. It stresses the value of the product offering to the target customers who would
most likely buy it.
The product concept must then be translated into business model. A business
model is a formula on how the enterprise exactly plans to make money out of the
business. There are four areas of moneymaking 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 cost of the enterprise product and other cost of doing business?
How will these cost 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 investment of the enterprise? Why will these investment
give the enterprise a competitive edge?
4. How will the enterprise finance the investments? How will the enterprise fund its
growth?
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.

The executive summary

It contains everything that is relevant and important to
business audience.

The Business Proponents

The third section of the business plan contains Information about the business
proponents or stakeholders. There are four types of stakeholder:
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 providers, then they will want to
know who else are on board to share the burden of raising money to see the whole
thing through.
If the business plan readers are the technology providers, then will want to know if
there will be sufficient fund to pay for the technology.
If the business plan readers are the governance and top management team, then
they will want to know what strategies and performance indicators are being proposed.
If the business plan readers are the implementing operating and support teams,
they will want to know what programs, activities, tasks, and resources would be in
place.
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The target Customers and the Main Values Proposition

The business proponent must be very precise about the target
audience or target customers. Targets 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.

Market Demand and Supply, Industry Dynamics, and Macro Environmental

Factors
The fifth section of the business plan is the market demand and supply,
the industry dynamics, and the macro environmental forces affecting
the business of the enterprise.
It is a normal for enterprises to actually expand their product
offering to include the other segment of a bigger market. The business proponent should
examine all the opportunities in this bigger market in order to determine what exactly
influences this bigger market.

The business plan should discuss the relevant industry dynamics:

 Who are the competing enterprise in the industry and what are their comparative
advantages and disadvantages? What business model and bargaining are they
employing?
 Who are the suppliers in the industry and what are their capabilities and bargaining
power.
 What are the channel of distribution being used by the industry? How effective are
these channel.
The business plan should discuss the major trends and changing pattern in the micro-
environment, would have significant impact on the relevant industry and the behaviour of
consumers.
Social environment include the demographics and cultural
dimensions that govern the relevant entrepreneurial behaviour. The
structure, social status, and dynamics of the population at large, as
well as the people beliefs tastes, more customs, and traditions
dictate the major parameter of market behavior.
Political environment defines the governance system of
the country or the local area of business. It includes all the
law, rules, and regulations on allowable and disallowable
business practices.

Economics environment is mainly driven by supply and

demand forces. It is the same factor that drives the interest and
foreign exchange rates to the movement of the market forces.

Ecological environment includes all natural resources and the ecosystem that
defines the habitat of man, animals, plants, and minerals.

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Technological environment makes or breaks competing

participants in any industry.
Product/Service Offering: Description, Evolution, and Justification
The sixth section of the business plan is the product/service offering that should contain
a description, evolution, and justification of the product/service offering.
The product/services must be described by highlighting the feature an attributes
that would most appeal to the target customers.
Enterprise Strategy and Enterprise Delivery System
The business plan should expound on the Enterprise Strategy (ES) by mapping
the competitive landscape and by the 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.
Table 1.1. Enterprise Delivery System

The EDS involves the harnessing of human, money, and physical resources from well-
selected sources.
The resources become the input (money, men, machine, materials, methods, and
management) which the operations units within the EDS (i.e,. the manufacturing or
service delivery personnel) will convert or transform into output.
The Operations and Marketing units are supported by the Finance, Administration
and Human Resources Management units, which oversee the flow of money, the
procurement and maintenance of machinery and materials, and ensure the proper
deployment and development of people.
These business outcomes should reasonably includes:
 High customer satisfaction level;
 High sales volume, market share, and market reach;
 High financial returns; and
 High people performance, productivity, and moral levels.
Financial Forecasts: Expected Returns, Risks, and Contingencies
The eight section of the business plan is the financial forecast including the
financial return, the financial, risk, and the financial contingencies. The business plan
must translate everything that we have discussed so far into financial forecast and
outcomes. The business plan should also calculate the long-term returns, using the time
value of money. This means estimating the internal rate of return and the expected net
present value.
Environmental and Regulatory Compliance
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The ninth part of the business plan is composed of the environmental and
regulatory compliance.
The business plan must articulate the law, rules, and regulations governing the
business and the industry that the enterprise is in. It should ascertain that will the
necessary permits, licenses, and authority to use proprietary intellectual capital had either
been secured or would definitely be secured.
Capital Structure and Financial Offering: Returns and Benefits to Investors,
Financiers, and Partners
The tenth section of the business plan contains the capital structure and financial
offering to the enterprise including some discussion on the investors, the financiers, and
the partners of the enterprise.
Finally, the business plan must appeal to its targets audience. It must highlight for
them the main features of the business plan that they are looking for.

For further discussion please refer to the link provided: Business plan meaning and examples.
https://www.entrepreneur.com/encyclopedia/business-plan

For further discussion please refer to the link provided Contents of a business plan
https://www.gdrc.org/icm/micro/business-plan.html

Reference:
www.rexpublishing.com.ph
Entrepreneurship by Dr. Eduardo A. Morato Jr.

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