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ENTREPRENEURIAL COMPETENCIES – refer to characteristics, such as personality, traits,
skills, and knowledge, that are identified and considered important for entrepreneurial success.
BUSINESSMAN – imitates products, resells products
ENTREPRENEUR – creates the business, sets new trends and creates new products
BRAND – refers to a name, term, symbol, or design, or a combination of them, which identifies the
goods or services of an entrepreneur
PRODUCT DEVELOPMENT – defined as the process of conceptualizing, designing, creating,
producing, introducing, and delivering new products and services to customers
UNIQUE SELLING PROPOSITION (USP) – a strategy used by businesses to encourage
customers to buy from them and not from competitors
CASH FLOW – flow of money coming in and going out
CASH FLOW STATEMENT – shows the amount of cash available to settle obligations
POSITIVE CASH FLOW – business has enough funds to pay its obligations
NEGATIVE CASH FLOW – business is experiencing a cash shortage over a particular period
CONTINGENCY FUND – fund for emergencies or unexpected outflows
SAVINGS – setting aside a portion of an income earnings or allowance
INVESTMENT – process of making the money grow and have return
- Putting money where it can earn interest for a period of time
BANK TIME DEPOSIT – low risk investment but provides a higher return than keeping them in a
savings acount
- The bank locks your money for a certain period
INFLATION – is the rate of increase in process of commodities or goods over a period of time
GOVERNMENT BONDS/TREASURY BILLS – monetary instruments offered by the government
in the financial market
- Investment that has a maturity period offered in the financial market
LOW RISK INVESTMENT – bankrupt or no money pay back the investor
REAL ESTATE – investments in properties, buy a piece of land or property
- May take a long time before properties appreciate the value, LOCATION and ECONOMIC
GROWTH is important
MUTUAL FUNDS OR UNIT INVESTMENT TRUST FUNDS – pools of money from several
investors joined together and managed by a professional experienced person
STOCK MARKET OR EQUITY MARKET – similar with mutual funds, pools of money from
several investors joined together. The main difference is here, the investor has the freedom of choice
which company to invest in
STOCK – also known as shares, is a financial token or instrument that signifies ownership of the
company in some proportion
COMMON STOCKS – Shareholders only receive left over after all that has happened, have voting
rights, board elections, and other financial decisions
PREFERRED STOCKS – the amount tens to be higher, (fixed amount like bond), priority in giving
dividend
MORE INVESTORS – stock is expensive
LESS INVESTORS – stock price is low
 CHARACTERISTICS OF ENTREPRENEURS
INNOVATIVE AND TRENDSETTERS – they have creative minds and do not stick to one style
for long. Creative
PROBLEM-SOLVERS – they have strong faith in their abilities. They are optimistic individuals and
positive thinkers.
ENTHUSIASTIC – have a genuine interest in meeting and entertaining people, energetic
OPPORTUNITY-SEEKERS – they seek and act on new business opportunities
GOAL-SETTERS – establish specific, measurable, attainable, and realistive objectives, as well as
long term goals for the business it self
LONG TERM GOALS – consists of many small term goals
REASONABLE RISK-TAKERS – takes reasonable risks after carefully weighing situations that
involve moderate risks
EXCELLENT PLANNERS – plan for the total operations, reviews all aspects of their businesses in
a related and coordinated manner
SERVICE-ORIENTED – they gladly attent to the needs of their customers
DECISION-MAKERS – leaders and the success of their business depends on their ability to make
the right decisions

SWOT AND ACTION PLAN

SWOT – strength, weaknesses, opportunities, and threats
PERSONAL – strength and weaknesses
ENVIRONMENTAL – opportunities and threats
ACTION PLAN – is a list of activities and well defined steps thatt serve as a guide for the
entrepreneur to help achieve business goals.
- GOALS, TASKS, TIME FRAME, PERSONS INVOLVED, OUTCOME, SUCCESS
INDICATOR

STEPS IN SELECTING A BUSINESS IDEA

RECOGNIZE A NEED FOR THE PRODUCT OR SERVICE – the ability to recognize a need
demands research, professional and personal experience, and gut feeling.
IMPROVE AN EXISTING PRODUCT – if you observe a customer’s dissatisfaction, it is an
opportunity to introduce an innovation or improvement. You can think of the “what if” on products,
for example, “Since people is annoyed by the wires, what if I develop earphones without the wires?”
RECOGNIZE TRENDS – realizing the fads that come and go. Select a business idea that will make
a new trend out of the existing trend. For example, the straps for aquaflasks.
READ, RESEARCH, AND INTERVIEW PEOPLE – be fully informed and updated on current
events and socioeconomic developments, as well as product development on the news.
QUESTION ASSUMPTIONS – avoiding the status quo and being inquisitive. This includes asking
for feedbacks from customers.

STAGES OF PRODUCT DEVELOPMENT

GENERATING A NEW PRODUCT IDEA – continuous search for new product opportunities,
thinking of ideas
SCREENING IDEAS – this involves screening the potentials of each product idea, as well as
selecting and rejecting ideas.
BUSINESS ANALYSIS – the last standing idea is proposed in a business standpoint. Identifying the
product features, estimating the product demand and etc. This is also where analytics come in.
PRODUCT DEVELOPMENT – focuses on the production of the product idea into a tangible form
MARKET TESTS – this stage refers to the limited introduction of the product in certain areas
COMMERCIALIZATION – this is where branding and advertising comes in

YOU CAN DO THE FOLLOWING TO OBTAIN A UNIQUE SELLING PROPOSITION

- List down your product’s important attributes
- Find a feature that you need to have because it fits customers’ standards
- The product must possess value and usefulness
- Get feedback from your customers

GUIDELINES IN MAKING A USP

- Determine your target customers
- Emphasize how your product solves people’s problems
- You can offer product guarantees. For example, warranty, ICC stickers and etc.