ENTREPRENEURIAL MANAGEMENT
4 Factors of Production (the absence of one can affect
the production)
1. Capital
2. Entrepreneurship
3. Land (Natural Resources or NR)
4. Labor (Man Power)
1. Social Capital
2. Human Capital
3. Financial Capital
Entrepreneurship- proactive process of developing
business venture to value profit.
Entrepreneurs- identifies opportunities, plans, mobilizes
resources, manages, and assumes the risks of a business
to have a positive impact on society.
Here are five ways that you can come up with
an idea for starting your next business:
 Identify your biggest source of satisfaction.
 Identify your biggest frustration.
 Think about the world's biggest challenge —
15 years from now.
 Start doing anything.
 Unplug, and do something different.
DESIGN THINKING
- It is a proven and repeatable problem solving
protocol that any business or profession can
employ to achieve big results.  expenses.
- Combines creative and critical thinking that
allows information and ideas to be organized,
decisions to be made, situations to be
improved, and knowledge to be gained.
Design Thinking Process:
1. Empathize – we put our selves on the situation
2. Define- define the problem
3. Ideate- Gather ideas/ data and generating ideas
4. Prototype- it is a sample of a product
Paper Prototype- example of throwaway
prototype created in the form of rough or hand-
sketched drawings of the product's interface
5. Test- It is a process of testing and reviewing the
prototype or the product if it is good or not
BUSINESS MODEL
- Describes the rationale of how an organization
creates, delivers, and captures value, in
economic, social, cultural or other contexts.
- The process of business model construction and
modification is also called business model
innovation and forms a part of business
strategy.
- Also defined as a company's plan for making a
profit. It identifies the products or services the
business will sell, the target market it has
identified, and the expenses it anticipates.
- Describes the strategies and tactics a company
pursues to achieve its goals. It describes how
the company creates a product/service, how the
company communicates with its customers to
provide this service, and how the company
makes a profit, etc.
How a Business Model Works?
- A business model is a high-level plan for
profitably operating a particular business in a
specific marketplace. A primary component of
the business model is the value proposition.
This is a description of the goods or services
that a company offers and why they are
desirable to customers or clients.
- Also cover projected start-up costs and sources
of financing, the target customer base for the
business, marketing strategy, a review of the
competition, and projections of revenues and
- Common mistake in creating a business model
is underestimating the costs of funding the
business until it becomes profitable.
The Advantages of a Business Model
- One way analysts and investors evaluate the
success of a business model is by looking at the
company's gross profit.
- Gross profit is a company's total revenue minus
the cost of goods sold.
4 Stages of Business Cycle
 1. Start-up stage- (pasimula) (searching for a
business model) founder of the company
Lean Start-up methodology- getting to the
right business model as quickly as possible
and at the lowest cost.
2. Growth stage- (may development na) use
business model metrics
3. Maturity stage- na reach na yung high
capacity
4. Renewal stage- has become obsolete and
has not been able to cope with changes in
markets “renewal phase”
- Direct distribution is directly to the
customer from manufacturer to customers
- Indirect distribution is from manufacturer to
distributors, wholesalers, retailers to
customers
7. Customers Segments- regroupings, categorizing
8. Cost Structure – directly describe expenses
9. Revenue Streams- talks about revenue
- Transactional revenue ay kung kumikita
base sa transaction
- Service revenue ay render service, therefore
babayadan
- Project revenue ay commonly ay sa mga
architect or engineer

Business Model Canvas- is a strategic ECONOMIC DEVELOPMENT

management and lean startup template for A scheme aimed at improving the living
developing new or documenting existing business standards of the nation’s citizenry.
models.
Elements of economic development
-It is a visual chart with elements describing a firm's 1. Human Resources
or product's value proposition, infrastructure, 2. Natural Resources
customers, and finances. 3. Capital Formation
4. Technology

Business Model Canvas was created by

Alexander Osterwalder, of Strategyzer.

1. Key Partners- manufacturer, supplier

2. Key Activities- programs, transactions
3. Key Resources- factors of production
4. Value Proportions- answers why and what
buyers will be able to buy
5. Customers Relation- building relation between
seller and customers
6. Channels- the way goods end up to a customers