CBM 0016: ENTREPRENEURIAL MIND
MIDTERMS D. Techniques Available to Assess Industry
Topic Outline
I. Overview of Entrepreneurship and Recognizing
Opportunities and Generating Ideas
A. Difference between entrepreneurial firms and
conservative firms
B. Characteristics of successful entrepreneurs
C. Common myths about entrepreneurs
D. Types of start-up firms
E. Changing demographics of entrepreneurs
F. Economic impact of entrepreneurial firms
G. What is opportunity and three ways to identify
an opportunity
H. Personal characteristics of the entrepreneur
I. Techniques for generating ideas
II. Feasibility Analysis and Formulating a Business
Plan
A. What is feasibility analysis and when to
conduct it
B. Forms of feasibility analysis
C. Outline for a comprehensive feasibility
analysis
D. Total start-up cash needed
E. Overall financial attractiveness of the
proposed venture
F. What is a business plan?
G. Guidelines for writing a business plan
H. Outline of business plan
I. Presenting the business plan to investors
FINALS
Topic Outline
III. Industry and Competitor Analysis and
Developing an Effective Business Model
A. Importance of industry analysis
B. How Industry and Firm-Level Factors
C. Affect Performance
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Attractiveness
E. Studying Industry Trends
F. The Five Competitive Forces Model
G. Industry Types and the Opportunities They
Offer
H. Competitor Analysis
I. Business model
J. The Importance of Business Models
K. Components of a Business Model
IV. Preparing a Proper Ethical and Legal
Foundation and Assessing a New Venture’s
Financial Strength and Viability
A. Strong ethical culture in an entrepreneurial
venture.
B. Importance of having a code of conduct and an
ethics training program.
C. Overview of the business licenses and business
permits that a start-up must obtain before it
starts conducting business.
D. Differences among sole proprietorships,
partnerships, corporations, and limited liability
companies.
E. Two functions of the financial management of
a firm.
F. Four main financial objectives of
entrepreneurial ventures.
I. Overview of Entrepreneurship and Recognizing
Opportunities and Generating Ideas
Introduction to Entrepreneurship
 There is tremendous interest in entrepreneurship in
the U.S. and around the world.
 Filipinos are actively engaged in starting a
business or are the owner/manager of a business
that is less than 3 years old.
Indication of Increased Interest in Entrepreneurship
 Books – Amazon.com lists over 35,600 books
dealing with Entrepreneurship and 62,700 focused
on small business.
 College Courses
CBM 0016: ENTREPRENEURIAL MIND
- There are various entrepreneurship courses
offered across all colleges in the United States.
- Today, more than 2,000 colleges and
universities in the United States (which is
about two-thirds of the total) offer at least one
course in entrepreneurship.

What is Entrepreneurship?
• Academic Definition (Stevenson & Jarillo)
– Entrepreneurship is the process by which
individuals pursue opportunities without
regard to resources they currently control.
• Venture Capitalist (Fred Wilson)
– Entrepreneurship is the art of turning an
idea into a business.
Passion for the Business
• Explanation of What Entrepreneurs Do
• The number one characteristic shared by
– Entrepreneurs assemble and then integrate
successful entrepreneurs is a passion for the
all the resources needed – the money, the business.
people, the business model, the strategy – • This passion typically stems from the
to transform an invention or an idea into a entrepreneur’s belief that the business will
viable business. positively influence people’s lives.

Corporate Entrepreneurship Product/Customer Focus

– Is the conceptualization of entrepreneurship at • A second defining characteristic of successful
the firm level. entrepreneurs is a product/customer focus.
– All firms fall along a conceptual continuum • An entrepreneur’s keen focus on products and
that ranges from highly conservative to highly customers typically stems from the fact that
entrepreneurial. most entrepreneurs are, at heart, craftspeople.
– The position of a firm on this continuum is
Tenacity Despite Failure
referred to as its entrepreneurial intensity.
• Because entrepreneurs are typically trying
Entrepreneurial Firms something new, the failure rate is naturally
 Proactive high.
 Innovative • A defining characteristic for successful
entrepreneurs is their ability to persevere
 Risk taking
through setbacks and failures.
Conservative Firms
 Take a more “wait and see”posture Execution Intelligence
 Less innovative • The ability to fashion a solid business idea into
 Risk averse a viable business is a key characteristic of
successful entrepreneurs.
Why Become an Entrepreneur?
- The three primary reasons that people become Successful Entrepreneur
entrepreneurs and start their own firms: 1. Elon Musk (Tesla)
o Desire to be their own boss 2. Jeff Bezos (Amazon)
o Desire to pursue their own ideas 3. Bill Gates (Microsoft)
o Financial rewards 4. Mark Zuckerberg (Facebook)
5. Jack Ma (Alibaba)
Characteristics of Successful Entrepreneurs 6. Larry Ellison (Google’s algorithm)
Four Primary Characteristics 7. Larry Page (Google’s algorithm)
8. Warren Buffett (Berkshire Hathaway)
9. Bernard Arnault (Louis Vuitton)
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CBM 0016: ENTREPRENEURIAL MIND
10. Carlos Slim Helu (TelMex) – Promoter
11. Richard Branson (Virgin Group) – Resource assembler/leverager
12. Ritesh Agarwal (OYO) – Self-confident
13. Mukesh Ambani (Reliance) – Self-starter
14. Jack Dorsey (Twitter) – Tenacious
15. Andrew Carnegie (IR) – Tolerant of ambiguity
16. Adam D’Angelo (Quora) – Visionary
17. Ratan Tata (Tata Motors)
18. David Koch (Koch Industries)
19. Michael Bloomberg (Bloomberg L.P.)
20. Sundar Pichai (CEO of Google)

Top Entrepreneurs in the Philippines

1. Henry Sy, Shoe Mart
2. Tony Tan Caktiong, Jollibee
3. John Gokongwei Jr., JG Holdings
4. Socorro C. Ramos, National Bookstore
5. Cecilio Kwok Pedro, Lamoiyan Corporation
6. Mariano Que, Mercury Drugstores
7. Alfredo M. Yao, Zest-O
8. Corazon D. Ong, CDO Foodsphere
9. Gregorio G. Sanchez Jr., LactoPAFI
10. Diosdado Banatao, Computer Chips

Common Myths About Entrepreneurs

Myth 1: Entrepreneurs Are Born, Not Made

• This myth is based on the mistaken belief that
some people are genetically predisposed to be
entrepreneurs.
• The consensus of many studies is that no one is
“born” to be an entrepreneur; everyone has the
potential to become one.
• Whether someone does or doesn’t become an
entrepreneur is a function of their environment,
life experiences, and personal choices.
• Although no one is “born” to be an entrepreneur,
there are common traits and characteristics of
successful entrepreneurs:
– A moderate risk taker
– A networker
– Achievement motivated
– Alert to opportunities
– Creative
– Decisive
– Energetic
– Has a strong work ethic
– Lengthy attention span
– Optimistic disposition
– Persuasive
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CBM 0016: ENTREPRENEURIAL MIND
Myth 2: Entrepreneurs Are Gamblers
• Most entrepreneurs are moderate risk takers.
• The idea that entrepreneurs are gamblers
originates from two sources:
– Entrepreneurs typically have jobs that
are less structured, and so they face a
more uncertain set of possibilities than
people in traditional jobs.
– Many entrepreneurs have a strong
need to achieve and set challenging
goals, a behavior that is often equated
with risk taking.
Myth 3: Entrepreneurs Are Motivated Primarily by
Money
• While it is naïve to think that entrepreneurs
don’t seek financial rewards, money is rarely
the reason entrepreneurs start new firms.
• In fact, some entrepreneurs warn that the
pursuit of money can be distracting.
Myth 4: Entrepreneurs Should Be Young and
Energetic
– Entrepreneurial activity is fairly easily spread out
over age ranges.
– While it is important to be energetic, investors
often cite the strength of the entrepreneur as their
most important criteria in making investment
decisions.
• What makes an entrepreneur “strong” in
the eyes of an investor is experience,
maturity, a solid reputation, and a track
record of success.
• These criteria favor older rather than
younger entrepreneurs.
Types of Start-Up Firms
 Salary-Substitute Firms – Firms that basically
provide their owner or owners a similar level of
income to what they would be able to earn in a
conventional job
 Lifestyle Firms – Firms that provide their owner
or owners the opportunity to pursue a particular
lifestyle and make a living at it.
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 Entrepreneurial Firms – Firms that bring new
products and services to the market by creating
and seizing opportunities regardless of the
resources they currently control.
Women and Entrepreneurship in the Philippines
- The Women and Entrepreneurship report examines
the state of small to medium enterprises (SMEs) in
the Philippines.
- The report finds there were around 900,000
registered enterprises in the Philippines in 2015.
- An estimated 10% of these businesses were
classified as small, and less than 1% were
classified as medium.
- Less than 1% of businesses in the country were
classified as large, while the vast majority (90%)
were composed of micro enterprises. While SMEs
have small organizations and thus tend to employ
fewer people, the collective contribution of SMEs
to employment in the country is significant.
- In 2015, SMEs accounted for around 32% of jobs
in the Philippines, whereas large enterprises
accounted for only 38% of jobs in that year.
- The report defines Women’s SMEs as a business:
o where 51% of ownership is held by a
woman or women; or
o where 20% of ownership is held by a
woman or women, where a woman holds a
major leadership position (CEO/COO or
president/vice president), and where 30%
of the board of directors is composed of
women
- Based on available data, it is estimated that there
are around 28,000 WSMEs in the Philippines,
comprising around one in four of all SMEs in the
country.
- Research has shown that WSMEs tend to employ
more women than businesses run by men,
therefore there is potential that increasing the
number of women entrepreneurs in the Philippines
will have the added effect of increasing the rate of
paid employment among women.
Changing Demographics of Entrepreneurs
Young Entrepreneurs:
- Interest among young people in entrepreneurial
careers is high.
- According to a Harris Interactive survey, 40% of
people eight to 21 years old said they’d like to start
their own business someday.
CBM 0016: ENTREPRENEURIAL MIND
- A total of 59% of the 8- to 21-year-olds said they
know someone who has started their own business.
Economic Impact of Entrepreneurial Firms
Innovation
• Is the process of creating something new, which is
central to the entrepreneurial process.
• Several studies have found that small businesses
outperform their larger counterparts in terms of
obtaining patents.
Job Creation
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• Small businesses are the creators of most new jobs
in the U.S. and employ half of all private sector
employees.
• According to a Kauffman Foundation survey, 92%
of Americans say entrepreneurs are critically
important to job creation.
• Cultivating a Robust Organization: 5 Stages of
the Innovation Process
• Idea Generation and Mobilization. New ideas are
created during idea generation.
• Advocacy and Screening. Not all ideas are worth
implementing.
– Experimentation.
– Commercialization.
– Diffusion and Implementation.
Impact on Society
• The innovations of entrepreneurial firms have
a dramatic impact on society.
• Think of all the new products and services that
make our lives easier, enhance our
productivity at work, improve our health, and
entertain us in new ways.
Impact on Larger Firms
• Many entrepreneurial firms have built their
entire business models around producing
products and services that help larger firms
become more efficient and effective.
The Entrepreneurial Process
Step 1: Deciding to become an entrepreneur.
 Chapter 1 – Introduction to entrepreneurship
Step 2: Developing successful business ideas
 Chapter 2 – Recognizing opportunities and
generating ideas
 Chapter 3 – Feasibility analysis
 Chapter 4 – Writing a business plan
 Chapter 5 – Industry and competitor
 Chapter 6 – Developing an effective business
model
Step 3: Moving from an idea to an entrepreneurial
firm.
 Chapter 7 – Preparing the proper ethical and
legal foundation
 Chapter 8 – Assessing a new venture’s
financial strength and viability
 Chapter 9 – Building a new venture team
 Chapter 10 – Getting financing or funding
CBM 0016: ENTREPRENEURIAL MIND
Step 4: Managing and growing the entrepreneurial
firm.
 Chapter 11 – Unique marketing issues
 Chapter 12 – The importance of intellectual
property
 Chapter 13 – Preparing for and evaluating the
challenges of growth
 Chapter 14 – Strategies for firm growth
 Chapter 15 – Franchising

I. Overview of Entrepreneurship and Recognizing

Opportunities and Generating Ideas

A. Difference between entrepreneurial firms and

conservative firms
B. Characteristics of successful entrepreneurs
C. Common myths about entrepreneurs
D. Types of start-up firms
E. Changing demographics of entrepreneurs
F. Economic impact of entrepreneurial firms
G. What is opportunity and three ways to identify
an opportunity
H. Personal characteristics of the entrepreneur
I. Techniques for generating ideas

II. Feasibility Analysis and Formulating a Business

Plan

A. What is feasibility analysis and when to

conduct it
B. Forms of feasibility analysis
C. Outline for a comprehensive feasibility
analysis
D. Total start-up cash needed
E. Overall financial attractiveness of the
proposed venture
F. What is a business plan?
G. Guidelines for writing a business plan
H. Outline of business plan
I. Presenting the business plan to investors

III. Industry and Competitor Analysis and

Developing an Effective Business Model

A. Importance of industry analysis

B. How Industry and Firm-Level Factors
C. Affect Performance
D. Techniques Available to Assess Industry
Attractiveness
6|Page
CBM 0016: ENTREPRENEURIAL MIND
E. Studying Industry Trends
F. The Five Competitive Forces Model
G. Industry Types and the Opportunities They
Offer
H. Competitor Analysis
I. Business model
J. The Importance of Business Models
K. Components of a Business Model

IV. Preparing a Proper Ethical and Legal

Foundation and Assessing a New Venture’s
Financial Strength and Viability
A. Strong ethical culture in an entrepreneurial
venture.
B. Importance of having a code of conduct and an
ethics training program.
C. Overview of the business licenses and business
permits that a start-up must obtain before it
starts conducting business.
D. Differences among sole proprietorships,
partnerships, corporations, and limited liability
companies.
E. Two functions of the financial management of
a firm.
F. Four main financial objectives of
entrepreneurial ventures.

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