ENTREPRENUERSHIP

8. Systematic planning
CONCEPT OF ENTREPRENUERSHIP - Develop logical, timely, step-by-step plan to reach
the company goals.
1. Putting up a business 9. Problem solving
2. Process of creating something new whether be it a - It is a requirement to know how to solve problems if
product or service that brings value by devoting the he wants the business to be in the market for long
necessary time and effort considering the financial, time.
psychic and social risks, and receiving the resulting 10. Self confidence
rewards of monetary and personal satisfaction and - Strong belief in self and own abilities
independence 11. Assertiveness
3. For Economist, it is more than simply starting it. - Facing and solving the existing problem
4. For Business People, entrepreneur is someone who 12. Persuasion
is willing to bear and take the risk of creating a - Influencing others to reach company goals
new venture if there is a substantial potential for 13. Use of influence strategies
growth and profit. - Great relationship with other business people;
5. For Economist and Business People, collaboration.
entrepreneurship is a necessary component in
encouraging economic growth. THE REWARDS OF ENTREPRENEURSHIP
6. Joseph Schumpeter (1883-1950) studied how the 1. FINANCIAL REWARD
entrepreneurs are motivated to look, innovate and - Good turn over
create new and better ways of doing a business. - Money
7. Peter Drucker (1909-2005) he described 2. FREEDOM
entrepreneur as someone who searches for things to - Freedom to work at your own pace and decide on
change, responds to it by researching and taking new how to grow a business
ideas and trends, and exploit these changes as an 3. PSYCHOLOGICAL REWARD
opportunity to create and deliver something better - Less stress
- Help workers provide for their families
WHO IS AN ENTREPRENEUR?
- An individual who plans, organize and operated a POSSIBLE PROBLEMS FACE BY ENTREPRENUERS
business/es, taking greater than normal financial, 1. Business demands more hard work
psychic and social risks 2. Demands long working hours
3. Requires a lot of sacrifice – unable to have a social,
ENTREPRENEURIAL COMPETENCIES family life.
- Refer to the fundamental characteristics and traits 4. Can cause a lot of emotional and psychological
possessed by successful entrepreneurs that made stress
them succeed in their chosen enterprises. 5. Unforeseen events – fire, earthquake etc.

McClelland and McBer (1985) IDENTIFY MARKET NEEDS

- If there is a consumer need for your product
1. Initiative NEEDS AS THE MOTIVATION FOR BUYING PRODUCT
- Opportunity to do something before others do. - Need is what propels buyers to buy a product.
2. Sees and acts on opportunities - Requires satisfactions
- Always has the eyes open for new opportunities and - Maslow’s hierarchy needs
most importantly acting on them.  Physiological needs – basic needs for
3. Persistence human existence; most vital and should be
- Continue doing something or trying to do something met first.
even though it is difficult.  Safety needs – it takes precedence and
4. Information seeking dictates behavior; personal, financial and
- Find the right information and use it. health security
5. Concern for work quality  Social needs – stage for love and
- Always striving to improve and enhancing the belongingness
products or service in order to deliver the best work  Esteem needs – cultivate positive feelings
for its customers. of self-worth and self-esteem.
6. Commitment to work contract  Self-actualizing needs – highest level;
- The company’s reputation builds by delivering great person’s optimum potential.
products and service to customers.
7. Efficiency Orientation PLANNING THE BUSINESS
- Find ways of doing things more efficiently and 1. PRODUCT PLANNING – customer’s needs, how
effectively, with fewer resources and at a lower cost long a product will take, total cost.
as possible. 2. PROCESS PLANNING – specific technologies,
procedures or create services.
 ENTREPRENUERSHIP
3. FACILITY LOCATION PLANNING – identifying ALLOWANCE FOR FUTURE GROWTH – planning for
the place where the manufacturing process will be long term for the business
located HOME-BASED BUSINESS – operated at home.
4. FACILITY LAYOUT PLANNING – placement of FINANCIAL REQUIREMENTS – a.k.a funding of the
departments workstations, machines and inventory business will depend upon the nature of the enterprise and of
storage the product
FIXED CAPITAL – land, building, rental deposits,
5. JOB PLANNING OR JOB DESIGN – specify improvements etc.; it is assets that will last for a long period of
work assignments of each employee. time.
WORKING CAPITAL – day to day operation
PRODUCT PRICING – the price of product or service ORGANIZATION COST OR EXPENSES – putting up the
charge will have a direct impact on the success of the legal business entity
business. CONTINGENCIES OR UNFORESEEN COSTS –
estimated amount
FOUR WAYS OF PRODUCT PRICING
 COST-PLUS PRICING BUSINESS IDEAS
- Percentage added to actual cost 1. SURVEYS – will have awareness of what customers
 DEMAND PRICING are looking for
- Combination of volume and profit 2. TRAINING – the most home-based business
 COMPETITIVE PRICING 3. EXPERIENCE – best and effective source
- It is used when there’s an established market price 4. HOBBIES – fond of doing and can enjoy while
and widely used within markets with commodity doing a business
products 5. TALENTS – can be innate in a person
 MARK UP PRICING 6. MARKET GAPS – also known as niche
- Commonly used by manufacturers, wholesalers and 7. EVENTS – the birth of new business
retailers. 8. MEDIA – it can bring out an idea
- It is computed by adding a set amount or certain 9. SHOWS AND EXHIBITIONS – by seeing what
percentage to the cost of product people present in the show
PRICING BASICS 10. MERGING BUSINESSES – existing business
- Pricing structures comes together

1. OVERHEAD EXPENSES – all non-labor

expenditures
 Fixed – fixed and scheduled which must be met
month to month (ayos na)
 Variable – expenses that fluctuate from month to
month (nagbabago)
2. COST OF GOOD SOLD- a.k.a cost of sales; refers
to your cost to purchase products for resale.

FACTORS THAT AFFECT’S CONSUMER’S DECISION

TO PURCHASE A PRODUCT
1. PRICE – highest consideration
2. PRODUCT QUALITY – always look for products
that has the worthiest quality they can get from the
price
3. CONVENIENCE – having everything within their
reach
4. IMPACT OF PROMOTION – using media platforms
to promote a product

CHOOSING A GOOD LOCATION

- Location can make or break a business
CUSTOMER’S DEMOGRAPHICS- Know the lifestyle of
your buyer
ACCESSIBILITY – reachable by your customers
COMPETITION – look for a location where you can still have
a piece of a pie for your business to grow and be sustainable.
POPULATION DENSITY – ready community of clients are
available.