ENTREPRENEURSHIP

Introduction to Entrepreneurship
Career Opportunities

Name: _____________________________ Quarter 3 Week 3

Section: _____________________________ Date: __________________

Background Information for Learners

As an entrepreneur, several factors should be given closer focus in order to operate a business
smoothly and productive. In running a business, is a task wherein you as an entrepreneur, should be
able to develop strong self-confidence and consider yourself as risks taker. In business, there are times
that the supply and demand are imbalance especially at this time that the world is under pandemic due
to the unpredictable COVID 19. Commodities are insufficient thus resulting to price increase which affect
seriously the life status of every Filipinos. Since the world is fighting the unseen, everything in the
business venture are put in unfavorable situation which in the end may cause bankruptcy. Market
analysis is one of the most important thing to consider when engaging into business. It is the process of
gathering information about a market within an industry. Your analysis studies the dynamics of a market
and what makes potential customers tick. Keep in mind that typically the risks associated with growth
opportunities increase as you move away from the products and markets you know into products and
markets that are new to you. Costs for researching and developing new products and researching and
penetrating new markets will also increase

The Potential Market

1. Potential market is the part of the total population that has shown some level of interest in
buying a particular product or service. Potential market is also called Total addressable market
(TAM) (MBA Skool Team, 2018).
2. A potential market is the part of the market you can capture in the future. It includes the
demographic groups that are not currently your customers but could become customers in the
future (Lake, L, 2019).
3. Market potential is the total demand for a product in a given business environment (Bhasin,
H., 2018).
The Importance of Potential Markets (Lake, L., 2019)
 Potential markets are an important part of a business's future growth.
 Ensure the future of your business by identifying new customers.
 Think proactively about ways for your business to grow and change.
 Show the potential of your business to investors or collaborators.
 Increase your revenue.
 Create a plan B that will weather changes in the economy or market.

How to Identify Your Potential Markets (Lake, L., 2019)

 Consider every target demographic that you currently sell to, as well as those you have not yet
targeted. Identify what they have in common with each other, new milestones that they will
encounter in their lives that will impact their buying patterns, and where they overlap or diverge
from your current customers.

Ask yourself these questions that will help you identify both new ways to market your current
products or services, as well as new products and services that you can begin selling.
 What other products do my customers need now?

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  What related products will they need in the future?
 Who else could make use of the products I am selling now?
 What demographic information does that new group have in common with my current
customers?
 What demographic information does that new group have in common with each other?

For example, a business that makes face masks and PPEs could identify potential markets such as:
 Hospitals and other health related industries whose employees are prone to COVID -19 virus
and other viruses.
 Business industries and other organizations who want to ensure the health condition of their
employees.
 Employees and workers who need to report to work to earn income.
 Households who needs to go out for their necessities.
Note: Depending on the size and age of your company, as well as your industry, you may have a
clear picture of the potential markets that are available.

Reaching Your Potential Market (Lake, L., 2019)

Once you've identified and chosen a potential market to begin targeting, you will need new
marketing strategies in place to communicate with them. Use this profile to identify:
 The demographic information that people in a group have in common.
 The best forms of media to reach them.
 How they prefer to shop and make purchases.
 The concerns, struggles, or problems that you can help them overcome.
 What values matter to them, both in everyday life and when shopping.
 The language that resonates with them.

The figure below depicts what is a potential market with respect to the total population and how it can
be converted to a penetrated market:

Available Market
 Prospects who are willing and capable (have sufficient resources) buyers, and have access to a
particular market or service (www.businessdictionary.com).
 Defined as the number of people who are both willing and capable of buying a particular
product or service in a particular market (MBA Skool Team, 2020).
Target Market

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  Refers to a group of potential customers to whom a company wants to sell its products and
services. Target markets are generally categorized by age, location, income, and lifestyle.
Defining a specific target market allows a company to home in on specific market factors to
reach and connect with customers through sales and marketing efforts. (Kenton, W., 2019).
Penetrated Market
 A set of customers or clients who are already using a particular product or service. A
penetrated market means that the potential users of a product or service are aware of it, and in
many cases are active consumers of it. (www.businessdictionary.com).

The size of a potential market helps a company understand the level of investment it should
make further in the market, while taking into consideration other factors. If the potential market is very
small, it means there is a very small fraction of the total population showing any interest in the product
or category. This means that it is better that the company doesn’t invest further in the product or
category because people won’t buy it. If the size of the potential market is large, it means that there is a
huge fraction of the total population which is showing interest in the product, so further investment can
be made on the product development or modification, marketing, promotions etc. The size of the
potential market gives an estimate of what all a company should do and how much it should invest
(MBA Skool Team, 2018).

The Market Need

1. Need
a. A motivating force that compels action for its satisfaction. Needs range from basic
survival needs (common to all human beings) satisfied by necessities, to cultural,
intellectual, and social needs (varying from place to place and age group to age group)
satisfied by necessaries (www.businessdictionary.com).
b. A driver of human action which marketers try to identify, emphasize, and satisfy, and
around which promotional efforts are organized (www.businessdictionary.com).
2. Market
a. A Market is a place where two parties can gather to facilitate the exchange of goods and
services. The parties involved are usually buyers and sellers. The market may be physical
like a retail outlet, where people meet face-to-face, or virtual like an online market,
where there is no direct physical contact between buyers and sellers (Kenton, W. &
Boyle, M., 2020).
b. A market does not refer to a particular place but it refers to a market for a commodity
or commodities. It refers to an arrangement whereby buyers and sellers come in close
contact with each other directly or indirectly to sell and buy goods (Shaikh, S., retrieved
2020).
c. A market is any place where sellers of particular goods or services can meet with buyers
of those goods and services. It creates the potential for a transaction to take place. The
buyers must have something they can offer in exchange for the product to create a
successful transaction (Moffatt, M., 2019)
Your market consists of (Stull, C., Myers, P.& Scott D.M. (2008) as cited in: https://learn.marsdd.com/):
Existing customers: People who have already purchased your product.
Prospects: People who have not yet purchased your product but are considering it.
Target market users: People in your target market who are not currently looking for a solution.

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Define the Market Need for Your New Business
Why is it important to clearly define market needs?
The market now demands that your business align to their needs. In order to properly
align your marketing efforts ‒ and your content, in particular ‒ to what buyers need, you have to
have a clear understanding of the many intricacies, pains and pressures within your market. To
achieve such alignment, the ability to define market patterns, needs, interests, preferences, etc.
for a comprehensive view of the buying process is critical (www.aberdeen.com).

Below are ways to define your market (Lancaster SCORE (2010):

• Consider whether the business offers a new solution to an old problem or complements an
emerging trend.
• Have a clear picture of your target market.
• Determine the benefits that your product or service offers.
• Examine industry data that can confirm whether there is a sustained, growing demand for
your product or service.
• Identify the percentage of market share that it is realistic for you to capture. The more
competition you have, the lower the margins will be.
• Consider how realistic your pricing is. How can you present your product or service to
potential customers so that it appears to be a good value, while still affording you a healthy
profit?

OPPORTUNITY RECOGNITION
Opportunity is a situation or occasion that makes it possible to do something that you want to
do. It is an exploitable set of circumstances with uncertain outcome requiring a commitment or
resources and involving exposure to risk.
1. OPPORTUNITY SEEKING
• Entrepreneurs are innovative opportunity seekers. They have endless curiosity to discover new
or different ideas and see whether these ideas will work in the market place.
• Entrepreneurs create value by introducing new products or services or finding better way of
making them
• These may include innovation in terms of product designs or addition of a new product
features to existing ones
• They may also tinker on improving their operational capability by employing new technologies
that will bring them greater efficiency and better economics
2. OPPORTUNITY SCREENING
• Opportunity Screening is the process of cautiously selecting the best opportunity. It is perhaps
the most rigorous and yet, most important part of an opportunity –driven entrepreneurship. It
takes a lot of time, effort, and knowledge to discern which among the potential opportunities
uncovered would be the one worth investing on or at least narrowing down the list to the few
promising ones.

Opportunity seizing is the last step in opportunity spotting and assessment. This is the pushing
through of entrepreneurs with their chosen opportunity. Entrepreneurs should make the best
out of this opportunity, and they should exert efforts and full dedication for the success of the
new venture. The entrepreneur’s idea can be any type of innovations listed here:

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 Innovation is the process of positively improving an existing product or service which can be a
key driver for economic growth. It is constantly changing, therefore, products and services must
also adapt to these changes.
Types of Innovation
1. Breakthrough innovation includes inventions, occur infrequently as these establish the
platform on which future innovations in an area are developed.
Examples are the Internet, the computer, or the airplane.
2. Technological innovation includes technological advancement of an existing product or
service which occurs frequently.
Examples are wireless fidelity or Wi-Fi, the laptop, or the jet plane.
3. Ordinary innovation occurs ordinarily which are commonly originating from market analysis
and technology pull instead of a technology push. This means that the market has a strong
influence in the implementation of an innovation.
Examples are unlimited internet plans of telecommunications companies, a wireless
mouse, and airbus for economical travelers.

How to choose or come up with a competing product or service?

1. Identify the main customer segments.
2. Differentiate product attributes and features of each of the competitors.
3. Determine the existing marketing practices of the various competitors.
4. Categorize the market preferences of consumers when it comes to the products being
offered.

Product Planning and Development Process

1. Idea Stage. This refers to the formation of the business ideas. It starts with an entrepreneurial
intent and proceeds with a development of a business idea using logic and creativity.
2. Concept Stage. The refinement of ideas and visualization of an idea that can serve as a
business opportunity.
3. Product Development Stage. It is here where the business idea is concretized with the
production of a prototype.
4. Test Marketing Stage. At this phase, the product or service is introduced in the market after a
series of evaluation and feedback from potential customers.

Process of Opportunity Seizing

1. Crafting a positioning statement.
a. • The entrepreneur is advised to look at other competitors in the marketplace.
b. • Customer profiling will come into the picture.
2. Conceptualizing the product or service offering.
a. • It is an idealized abstraction of the product or service to be offered to the preferred
market of the entrepreneur.
3. Designing, prototyping, and testing the product
a. • The entrepreneur must render the concept and translate it into its very physical and
very real dimension.
b. • Be ready for the actual testing by the entrepreneur and then, later on, subject to
testing by potential customers through FGD, surveys, product demo sessions, etc.
c. • Assess how much resources are available.
4. Implementing, Organizing and Financing
a. • Choose correct technology
b. • Choose the right people
c. • Design the operating work flow
d. • Specify the systems and procedures
e. • Design the organizational architecture

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Key Terms:
• Potential market is the part of the total population that has shown some level of interest in
buying a particular product or service. Potential market is also called Total addressable market
(TAM) (MBA Skool Team, 2018).
• Available Market are prospects who are willing and capable (have sufficient resources)
buyers, and have access to a particular market or service (www.businessdictionary.com).
• Target Market refers to a group of potential customers to whom a company wants to sell its
products and services. Target markets are generally categorized by age, location, income, and
lifestyle (Kenton, W., 2019).
• Penetrated Market is a set of customers or clients who are already using a particular product
or service (www.businessdictionary.com).
• Need is a motivating force that compels action for its satisfaction. Needs range from basic
survival needs (common to all human beings) satisfied by necessities, to cultural, intellectual,
and social needs (varying from place to place and age group to age group) satisfied by
necessaries (www.businessdictionary.com).
• A Market is a place where two parties can gather to facilitate the exchange of goods and
services (Kenton, W. & Boyle, M., 2020).
• Existing customers are people who have already purchased your product.
• Prospects are people who have not yet purchased your product but are considering it.
• Target market users are people in your target market who are not currently looking for a
solution.

Learning Competency:
 Analyze the market need
 Determine the possible product/s or service/s that will meet the need
 Screen the proposed solution/s based on viability, profitability, and customer requirements
 Select the best product or service that will meet the market need.
(TLE_ICTAN11/12PC-Ia-1)

Activity 1. TRUE or FALSE.

Read and analyze the competencies in Entrepreneurship below. Select TRUE if the statement is correct
and write FALSE if otherwise. Write your answer before the number.
1. Entrepreneurship can be learned by anyone, it’s not something that can simply learn in a
classroom.
2. Certain skills, such as communication, delegating and respecting others can only be acquired
through practice and developing „habits of character‟.
3. Habits of character may not strictly be related to business but are to do with the kind of person the
entrepreneur is and what he/she does.
4. An entrepreneur has to have certain cultivated and inherent qualities in order to make a success of
his or her venture.
5. Hard work and determination to win have made many successful business people to reach their
aspired goals.
6. An Entrepreneur must hesitate for personal or other reasons.
7. Business involves many risks, which an entrepreneur must hesitate to take.
8. New ideas help make a business venture successful.
9. Certain attributes are essential for an Entrepreneur to establish his or her business on sound
footing.
10. The only way to acquire the habits essential for entrepreneurs is by acting in a way inconsistent
with them.

Activity 2:
Multiple Choice: Read and analyze each statement carefully then choose the letter of the best answer on a
separate sheet of paper.
1. Ronald is graduating SHS. After his graduation, he is planning to put up a computer shop. What
core competency he needs to develop?

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 a. Arts and design
b. Systems and application
c. Repairs and maintenance
d. Machine and equipment
2. Leticia is an employee of a fast-food chain. What common competency she needs to develop?
a. Time management
b. Managing Conflict
c. Leadership
d. Critical thinking
3. Bon Gonzalez is the owner of the Bon Welding Shop. What common competency he needs to
develop?
a. Change management
b. Human Relations
c. Time management
d. A B & C
4. If Promotions and Advertising are core competency in Entrepreneurship is a common
competency in Entrepreneurship.
a. Managing sales
b. Listening to the sentiments of workers
c. Coordinating with partners
d. Conducting research

5. If good human relation is to Interpersonal Competency; Visioning is to

a. Personal competency
b. Core Competency
c. Common Competency
d. Business Competency

For number 6 to 15, Read and analyze the competencies below that every entrepreneur should develop
and identify whether this refers to Personal Competency, Interpersonal Competency, or Business
Competency.
6. Emotional balance
a. Personal competency
b. Interpersonal Competency
c. Business Competency
7. Negotiation skills
a. Personal competency
b. Interpersonal Competency
c. Business Competency

8. Leadership skills
a. Personal competency
b. Interpersonal Competency
c. Business Competency

9. Persistence
a. Personal competency
b. Interpersonal Competency
c. Business Competency

10. Charisma
a. Personal competency
b. Interpersonal Competency
c. Business Competency

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 11. Resource Management skill
a. Personal competency
b. Interpersonal Competency
c. Business Competency

12. Resiliency
a. Personal competency
b. Interpersonal Competency
c. Business Competency

13. Human Relation

a. Personal competency
b. Interpersonal Competency
c. Business Competency

14. Respect
a. Personal competency
b. Interpersonal Competency
c. Business Competency

15. Tenacity
a. Personal competency
b. Interpersonal Competency
c. Business Competency

References:
a. https://www.google.com/search?
q=potential+market+to+penetrated+market&source=lnms&tbm=isch&sa=X&ved=2ahUKEwjiio-
B7tDuAhWkBKYKHS_LDFQQ_AUoAXoECBYQAw&biw=1366&bih=657#imgrc=huOUQQF
NEfADHM
b. SHS Entrepreneurship.pdf,
c.
d. Doyle, A. (2020). The Best Jobs for Aspiring Entrepreneurs. Retrieved from:
https://www.thebalancecareers.com/best-jobs-for-aspiring-entrepreneurs4160409
e. Personal Entrepreneurial Competencies (PECS). Retrieved from:
https://www.mustangbols.com/animation-2d/pecs
f. Careers in Entrepreneurship. Retrieved from: http://www.excite.com/education/business/
entrepreneurship/careers
g. . Reasons People Become Entrepreneurs. Retrieved from:
https://www.scu.edu/illuminate/thought-leaders/drew-starbird/7-reasonspeople-become-
entrepreneurs.html
h. Careers in Entrepreneurship. Retrieved from: http://www.excite.com/education/business/
entrepreneurship/careers
i. The 3 core competencies entrepreneurs must master to succeed. Retrieved from:
https://www.bizjournals.com/bizjournals/how-to/growthstrategies/2017/04/the-3-core-
competencies-entrepreneurs-must-master.html
j. Competency Descriptors. Retrieved from:
https://www.ifpm.nifc.gov/standard/standard/Common_ Competencies.pdf
k. Emotional Intelligence and Personal Competence. Retrieved from: www. freemanagement-
ebooks.com/faqpp/understanding-07.html

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 l. Three competencies every entrepreneur should develop. Retrieved from:
https://www.ideasforleaders.com/ideas/three-competencies-everyentrepreneur-should-develop
m. ABM-ENTERPRENUERSHIP 12_Q1_W2_Mod2.pdf, DIVISION OF CITY SCHOOLS –
MANILA Manila Education Center Arroceros Forest Park, Antonio J. Villegas St. Ermita, Manila

Answer Key:
Activity 1. True or False
1. True
2. False
3. True
4. True
5. True
6. False
7. False
8. True
9. True
10. False

Activity 2. Multiple Choice

1. B
2. A
3. D
4. B
5. D
6. A
7. C
8. C
9. A
10. B
11. C
12. A
13. B
14. B
15. A

Prepared by:

Charmaine Joemaica J. Sapigao

Teacher I