Lesson 1: Introduction to Entrepreneurship

The word “entrepreneur” was derived from the French verb enterprendre, which means “to
undertake.”

The enterprise is created by an entrepreneur and the process is called “Entrepreneurship.”

RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION

1. Development of Managerial Capabilities - this means that one of the benefits an entrepreneur gets is
to develop his managerial skills.

2. Creation of Organizations - which means that because of entrepreneurship many organizations will
exist.

3. Improving Standard of Living - this means that entrepreneurship can lift up the economic status of an
individual.

4. Means of Economic Development - this means that not only the life of the entrepreneur is improved
but also the society where the business is located.

Factors Affecting Entrepreneurship

1. Personality Factors which include:

a. Initiative - doing things even before being told.

b. Proactive - which means he can classify opportunities and seize it.

c. Problem Solver - which means he can retain good relations with other people.

d. Perseverance - meaning he will pursue things to get done regardless of challenges.

e. Persuasion - means that he can entice people to buy even if they don’t want to.

f. A Planner - he makes plans before doing things and does not fail to monitor it.

g. Risk-taker - which means that he is willing to gamble but he will calculate it first.

2. Environmental Factors which include political, climate, legal system, economic and social conditions,
and market situations.

Types of Entrepreneurs

1. Innovative Entrepreneurs - They are those who always make new things by thinking of new ideas.
They have the ability to think of newer, better, and more economical ideas.

2. Imitating Entrepreneurs - They are those who don’t create new things but only follow the ideas of
other entrepreneurs.

3. Fabian Entrepreneurs - They are skeptical about changes to be made in the organization. They don’t
initiate but follow only after they are satisfied.
4. Drone Entrepreneurs - They are those who live on the labor of others. They are die-hard conservatives
even ready to suffer the loss of business.

5. Social Entrepreneurs - They are those who initiate changes and drive social innovation and
transformation in various fields such as education, health, human rights, environment, and enterprise
development.

Career Opportunities of Entrepreneurship

1. Business Consultant - with expertise in the field of entrepreneurship, he can be a very good source of
advice to other entrepreneurs and would be a businessman.

2. Teacher - a graduate of entrepreneurship can use his knowledge in teaching.

3. Researcher - the entrepreneur can be employed as a researcher by an enterprise.

4. Sales - the entrepreneurship graduate can apply as a salesman.

5. Business Reporter - the entrepreneur is an expert in the field, can be employed as a business reporter.

Lesson 2: Recognized a Potential Market

THE ENTREPRENEURIAL PROCESS

difficult.

2. Developing a business plan

3. Determining the Capital Market

4. Running a Business

Scanning the Marketing Environment

 it is the STARTING POINT of any venture that involves understanding and knowing the details
of the macroenvironment, microenvironment and internal environment.

3s of Opportunity Spotting And Assessment

1. Seeking the Opportunity

It is the first step and most difficult process of all due to the number of options that
entrepreneurs will have to choose from.

Sources:
a. Macroenvironment
 STEEPLED-This represents the general environment where the entrepreneur can identify
business opportunities from and where the future business is about to operate.
 S OCIOCULTURAL

T ECHNOLOGY

E CONOMIC

E ENVIRONMENTAL

P OLITICAL

L EGAL

E ETHICAL

D EMOGRAPHIC

 Industry- This is the source of the current trend on what is happening in the industry and where
the future business will belong to.
 New Discovery and Knowledge- This is the source of the current trend on what is happening in
the industry where the future business will belong to.
 Futuristic Opportunities -These are projected new opportunities that can possibly affect the
new business while it is running.
b. Microenvironment
a. Consumer preferences, interests and perception-
 b. Competitors
c. Unexpected opportunities from customers
d. Talents, hobbies, skills, and expertise.
e. Irritants in the marketplace such as deterrents, problems. Complaints and delays.
f. Location
2. Screening the Opportunity- It is the process of cautiously or carefully selecting the best
opportunity.

a. Internal Intent- which is the main objective that the business will accomplish in the
entrepreneur’s life
b. External intent- which will address the compelling needs of the market.
3 questions:
1. Do you have the drive to pursue this business opportunity to the end?
2. Will you spend your time, effort, and money to make the business opportunity work?
3. Will you sacrifice your existing lifestyle, endure emotional hardship and forego my usual
comforts to succeed in this business opportunity?
Elements of Business Opportunity
a. Has superior value to the customer
b. Solves compelling problems, issues, a need, or a want
c. Is a potential cash cow
d. Matches with the entrepreneur’s skills resources and risk appetite.

3. Seizing the Opportunity- It is the last step, this is the “Pushing through” with chosen
opportunity.
Innovation is the process of positively improving an existing product or service.
It is a key driver of economic growth.

3 types of Innovation

1. Breakthrough innovation- when you bring something new to the world.

2. Technological Innovation
3. Ordinary innovations

Product or Service Planning and Development Process

5 KEY STAGES
1. Idea Stage
- In this stage, the entrepreneur determines what are the feasible products and/or
services that will perfectly suit the opportunity.

1. SUBSTITUTE

2. COMBINE

3. ADAPT
4. MODIFY

5. PUT ANOTHER USE

6. ELIMINATE

7. REVERSE AND REARRANGE

2. Concept Stage
- Once the acceptable product or service has already been identified. In the concept stage,
the developed idea will undergo a consumer acceptance test.
3. Product Development Stage
- In this stage, the entrepreneur leverages on the information generated from the
prospective customers via the concept stage. Actual reactions from prospective customers
are determined.
4. 4. Testing Marketing Stage
- This stage validates the work done from the first three stages to measure the succession
the commercialization of the product or service
5. 5. Commercializing Stage
- This stage is also called “LAUNCH STAGE”.