ENTREPRENEURSHIP REVIEWER

INTRODUCTION TO ENTREPRENEURSHIP

POPULAR SUCCESSFUL ENTREPRENEURS

STEVE JOBS - FOUNDER OF APPLE
BILL GATES - FOUNDER OF MICROSOFT
MARK ZUCKERBERG - FOUNDER OF FACEBOOK
LUCIO TAN - OWNER OF PHILIPPINE AIRLINE AND ASIA
BREWERY
Socorro Ramos - OWNER OF NATIONAL BOOKSTORE
Edgar Sia II - FOUNDER OF MANG INASAL

Entrepreneurship is..
● The act of creating a business or businesses while building and scaling it to generate a
profit.
● An important driver of economic growth and innovation.
● About building a life on your own terms. No bosses. No restricting schedules. And no
one holds you back.

Entrepreneur is…
● A person who sets up a business with the aim to make a profit and creates a new
business, bearing most of the risks and enjoying most of the rewards.
● The Term “entrepreneur” comes from the French word entreprendre which means “to
undertake”
● An innovator, a source of new ideas, goods, services, and business/or procedures.
● Playing a key role in any economy, using the skills and initiative necessary to anticipate
needs and bring good new ideas to market

TYPE OF ENTREPRENEUR BY JOSEPH SCHUMPETER

1. Mega entrepreneurs
– Individuals who are willing to absorb huge risks of using enormous amounts of capital in their
business ventures
2. Microentrepreneurs
–Individuals who are engaged in micro or small businesses as an alternative formal
employment

IMPORTANCE OF ENTREPRENEURSHIP

● Entrepreneurship generates new wealth in an economy.

● Entrepreneurship decreases poverty.
● It creates opportunities, ensures social justice, instills confidence and stimulates the
economy.
● Entrepreneurship improves productivity.
 ● Entrepreneurs create jobs.
● Entrepreneurs innovate.
● Entrepreneurs create innovation and social change
● Entrepreneurs give to society.

RELEVANCE OF ENTREPRENEURSHIP TO SHS STUDENTS

1. To prepare students for livelihood even before college.
2. Entrepreneurship education aids students from all socioeconomic backgrounds to think
outside the box and nurture unconventional talents and skills.
3. Entrepreneurship develops their initiative and helps them to be more creative and self-
confident in whatever they undertake and to act in a socially responsible way.
4. It exposes students to numerous opportunities to learn how to think critically and analyze
the pieces on the board.
5. Being aware of all the important factors and seeing how they affect each other is the
foundation of a smart decision-making process.
6. Students must be exposed to real-world examples and learn from their own experience.
7. Entrepreneurship education requires students to be innovative, creative, and
collaborative with others.
8. Entrepreneurship education provides budding entrepreneurs with the skills and
knowledge to come up with business ideas and develop their own ventures

JOB OPPORTUNITIES FOR ENTREPRENEURSHIP AS A CAREER

● Business Consultant
● Sales
● Research and Development
● Not-for-profit fundraiser
● Teacher
● Talent Recruiter
● Business Reporter
● New venture creation
● Career in existing entrepreneurial venture

REASONS WHY MANY WOULD LIKE TO BECOME AN ENTREPRENEUR

● Achievement, Challenge, & Learning
● Independence & Autonomy- you can set your own goals, pick their own partners, and
face the consequences of your decisions.
● Income Security and Financial Success
● Recognition and Status
● Family
● Dissatisfaction with current work arrangements
● Community and social motivation

Entrepreneurship
Module 2

ENTREPRENEURIAL PROCESS

ESSENTIALS IN ENTREPRENEUR’S OPPORTUNITY – SEEKING

1. Entrepreneurial Mind Frame

- This allows the entrepreneur to see things in a very positive and optimistic way in the midst of
difficult situation.
2. Entrepreneurial Heart Flame
- Entrepreneurs are driven by passion; they are attracted to discover satisfaction in the act and
process of discovery. Passion is the great desire of an entrepreneur to achieve his/her goals.
3. Entrepreneurial Gut Game
-This refers to the ability of the entrepreneur of being intuitive. This also known as intuition. The
gut game also means confidence in one’s self and the firm belief that everything you aspire can
be reached.

SOURCES OF OPPORTUNITIES
1. Changes in the Environment
- Entrepreneurial ideas arise when changes happen in the external environment. A person with
an entrepreneurial drive views these changes positively. External environment refers to the
physical environment, societal environment, and industry environment where the business
operates

1.1 The Physical Environment includes:

a. Climate – the weather conditions.
b. Natural resources – such as minerals, forests, water, and fertile land that occur in nature and
can be used for economic gain.
c. Wildlife – includes all mammals, birds, reptiles, fish, etc., that live in the wild.

1.2 The Societal environment includes the various forces like

a. Political forces – includes all the laws, rules, and regulations that govern business practices
as well as the permits, approvals, and licenses necessary to operate the business.
b. Economic forces – such as income level and employment rate.
c. Sociocultural forces – customs, lifestyles and values that characterize a society.
d. Technological environment – new inventions and technology innovations.

1.3 The Industry environment of the business includes:

● Competitors
● Customers
● Creditors
● Employees
● Government
● Suppliers
2. Technological Discovery and Advancement
A person with entrepreneurial interest sees possibility of business opportunities in any new
discovery or because of the use of latest technology

3. Government’s thrust, programs, and policies

- The priorities, projects, programs, and policies of the government are also good sources of
ideas.

4. People’s Interest
The interest, hobbies, and preferences of people are rich sources of entrepreneurial ideas, like
the increasing number of Internet Cafés at present could lead to the strong attachment of young
people to computers.

5. Past Experiences
- The expertise and skills developed by a person who has worked in a particular field may lead
to the opening of a related business enterprise.

FORCES OF COMPETITION MODEL

Competition – it is the act or process of trying to get or win something.

THESE ARE THE FIVE FORCES COMPETING WITHIN THE INDUSTRY

1, Buyers
-The buyers are the ones that pay cash in exchange for your goods and services.
The threat of its bargaining power will be less if the following factors are noticed:
● There are several suppliers available in the market.
● The buyer has the potential for backward integration.
● The cost of switching the supplier cost is minimal.
● The product represents a high percentage of the buyer’s cost.
● The buyer purchases large portions of the seller’s product or services.

2. Potential New Entrants

- A new entrant is defined as companies or businesses that have the ability to penetrate
or enter into a particular industry.

This gives a threat to the business. This can be noticed if there is the presence of the
following factors:
● Substantial capital requirement
● Strict government policy
● Difficulty in accessing distribution channels
● Economies of scale
● High cost of product differentiation
● High switching cost
3. Rivalry among Existing Firms
- Rivalry is a state or situation wherein business organizations are competing with each
other in a particular market.

The intensity of rivalry among existing firms is characterized to the following factors:
● Diversity of rivals
● Number of competing firms
● Characteristics of the products or services
● Increased capacity
● Amount of fixed costs
● Rate of industry growth

4. Substitute Products
- Substitute is one that serves the same purpose as another product in the market.

A substitute product can give a big threat in the industry environment if the following
factors are noticed:
a. Switching cost is low
b. Preferences and tastes of the customers easily change
c. Product differentiation is highly noticeable
d. The quality of substitute products dramatically improves
e. The price of substitute product is substantially lower

5. Suppliers
-The Suppliers are the one that provide something that is needed in business operations such
as office supplies and equipment.
This can be noticed if there is the presence of the following factors:
● The supplier has the ability for forward integration
● Suppliers in the industry are few, but the sales volume is high
● Substitute products are not readily available in the market
● The switching cost is very high
● The product or service is unique

Recognize and Understand the Market

Unique Selling Proposition (USP)

-refers to how you sell your product or services to your customer. You will address the wants
and desires of your customers.
-a method to market your product or service in a way that is different than other competitor’s
marketing strategies.

UNIQUE- clearly sets you apart from your competition, positioning you the more logical choice.
SELLING- it persuades another to exchange money for a product or service.
PROPOSITION- it is a proposal or offer suggested for acceptance.

Package Shipping Industry

(USP-Unique Selling Package)
Problem- I have to get this package delivered quick!
USP- “When it absolutely, positively has to be there overnight.”

FOOD INDUSTRY
Pain- the kids are starving, but Mom and Dad are too tired to cook!
USP- “Pizza delivered in 30 minutes or it’s free.”

7-STEP PROCESS IN CONSTRUCTING YOUR UNIQUE SELLING PROPOSITION

Step 1: USE YOUR BIGGEST BENEFITS

Clearly describe the 3 biggest benefits of owning your product or service
Step 2: BE UNIQUE
Your USP separates you from the competition, sets up a “buying criteria”

Example:
PRODUCT: “A unique baseball swing that will instantly force you to hit like a pro.”
OFFER: “ You can learn this simple technique that makes you hit like a pro in just 10 minutes of
batting practice.”
GUARANTEE: “If you don’t hit like a pro baseball player the first time you use this new swing ,
we’ll refund your money.”

Step 3: SOLVE AN INDUSTRY “PAIN POINT” or “PERFORMANCE GAP”

● Identify which needs are going unfulfilled within either your industry or your local market
Step 4: BE SPECIFIC AND OFFER PROOF
● Consumers are skeptical of advertising claims companies make.

Step 5: CONDENSE INTO ONE CLEAR AND CONCISE SENTENCE

- The most powerful USP’s are so perfectly written, you cannot change or move even a
single word.
Step 6: INTEGRATED YOUR USP INTO ALL MARKETING MATERIALS
- Variations of your USP will be included in the ALL your marketing materials
Step 7: DELIVER ON YOUR USP’s PROMISE
- Be bold when developing your USP but be careful to ensure that you can deliver.
VALUE PROPOSITION
● An analysis or statement of the combination of good and services offered by a company
to its customer in exchange for payment
● is a business or marketing statement that summarizes why a consumer should buy a
company's product or use its service.
Step 1: KNOW YOUR CUSTOMER
● Who is he or she? What does s/he do and need?
 ● What problems does s/he need to solve?
● What improvements does s/he look for?
● What does s/he value?
Step 2: KNOW YOUR PRODUCT, SERVICE OR IDEA
● How does the product, service or idea solve the problem or offer improvement?
● What value and hard results does it offer the customer?
Step 3: KNOW YOUR COMPETITORS
● How does your product or idea create more value than competing ones?
Step 4: DISTILL THE CUSTOMER-ORIENTED PROPOSITION
● “Why should I buy this specific product or idea?”
Step 5: PULL IT ALL TOGETHER
● Turn around your customer’s answer’ from step 4 into a value proposition statement.

Determine who the customers are in terms of:

● Target market
● Customer requirements; and
● Market size
MARKET IDENTIFICATION
● Is a strategic marketing approach and process that is define the specific customer of the
product.
MARKETING SEGMENTATION
● Is an entrepreneurial marketing strategy designed primarily to divide the market into
small segments with distinct needs, characteristics, or behavior.
Segmentation is an important marketing technique that helps you reach each group of potential
customers with an approach that appeals to them. Evaluating each segment ensures that your
company doesn’t waste resources on segments that won’t buy your products.

You have to match the characteristics of the marketing segment to the qualities of your product
and the abilities of your company to achieve your sales performance objectives.
 A. GEOGRAPHIC SEGMENTATION
● The total market is divided to geographical location like provincial regions, cities,
provinces, municipalities, and even barangay units.
B. DEMOGRAPHIC SEGMENTATION
● Demographic segmentation is divided based on the demographic variables of the
consumers.
1. Gender
2. Age
3. Income
4. Occupation
5. Education
6. Religion
7. Ethnic group
8. Family size
C.PSYCHOGRAPHIC SEGMENTATION
● In psychological segmentation the market is divided in terms of what the consumers
think and believe. It is based on the following variables
1. Needs and Wants
2. Attitude
3. Social class
4. Personality traits
5. Knowledge and Awareness
6. Brand concepts
7. Lifestyle
D. BEHAVIORIAL SEGMENTATION
● In behavioral segmentation the market is divided based on the following variables
1. Perception
2. Knowledge
3. Reactions
4. Benefits
5. Loyalty
6. Responses
POINTS TO CONSIDER IN SEGMENTATION
1. ACCESSIBILITY OF THE MARKET SEGMENT
The market segment must be accessible to the business.
2. SIZE OF THE MARKET SEGMENT
The market segment must large enough to provide wealth to the entrepreneurial vestures.
3. DISTINCTION OF THE MARKET SEGMENT
The market segment must easily differentiate from the total market.
MARKET SEGMENT EVALUATION
● Size and growth of the segment
● Structure of the segment
● Capability of the segment
MARKET SEGMENT SELECTION
The basic entrepreneurial marketing strategies relative to the selected segment are the
following:
1. Individual or one-on-one marketing
2. Segment marketing
a. Differentiated marketing
b. Concentrated marketing
3. Mass or Undifferentiated Marketing
3. MASS MARKETING/UNDIFFERENTIATED MARKETING
● Focuses on high sales and low prices and aims appeal to the whole market.
Ex. Toothpaste , furniture, soft drinks, etc.
A Marketing Strategy is a business’s overall game plan for reaching people and turning them
into customers of the product or service that the business provides.
The marketing strategy of a company contains the company’s value proposition, key
marketing messages, information on the target customer and other high-level elements.
BEFORE CHOOSING THE RIGHT MARKETING STRATEGY FOR YOUR BUSINESS,
CONSIDER FOLLOWING POINTS
1. DEFINE THE TARGET POPULATION
- Defining target population is the main and necessary step in choosing your marketing strategy.
It gives the proper demographics which help in selecting the most appropriate marketing plan
for your business.
2. TEST YOUR AUDIENCE
Create a hypothetical process of buying to test your audience. Once you know the buying
behavior of the target audience, you can select more appropriate marketing strategy.
3. CONSIDER MARKETING STRATEGIES
Once you know the demographics; their knowledge, attitudes and behaviors. You can select
more appropriate marketing strategy
4. EVALUATE THOSE STRATEGIES
- Once you have considered the marketing strategies and found the applicable ones. Assess
them, apply them and evaluate them. This process must be for testing purposes and the most
suitable and productive strategy must be applied.
TYPES OF MARKETING STRATEGIES
1. PAID ADVERTISING
- This includes multiple approaches for marketing. It includes traditional approaches like TVCs
and print media advertising. Also, one of the most well-known marketing approach is internet
marketing. It includes various methods like PPC (Pay per Click) and paid advertising.
 2. CAUSE MARKETING
Cause marketing links the services and products of a company to a social cause or issue. It is
also well known as cause related marketing.
3. RELATIONSHIP MARKETING
This type of marketing is basically focused on customer building. Enhancing existing
relationships with customers and improving customer loyalty
4. UNDERCOVER MARKETING
- This type of marketing strategy focuses on marketing the product while customers remain
unaware of the marketing strategy. It is also known as stealth marketing.
5. WORD OF MOUTH
It totally relies on what impression you leave on the people. It is traditionally the most important
type of marketing strategy. Being heard is important in business world. When you give quality
services to customers, it is likely that they’d promote you.
6. INTERNET MARKETING
It is also known as cloud marketing. It usually happens over the internet. All the marketing items
are shared on the internet and promoted on various platforms via multiple approaches.
7. TRANSACTIONAL MARKETING
● Sales is particularly the most challenging work. Even for the largest retailers, selling is
always tough especially when there are high volume targets. However with the new
marketing strategies, selling isn’t as difficult as it was. In transactional marketing the
retailers encourage customers to buy with shopping coupons, discounts and huge
events.
● It enhances the chances of sales and motivates the target audience to buy the
promoted products.
8. DIVERSITY MARKETING
It caters diverse audience by customizing and integrating different marketing strategies. It
covers different aspects like cultural, beliefs, attitudes, views and other specific needs.
CONSUMER BUYING BEHAVIOR
- Is simply the reaction of the consumers to various events or forces that are happening in the
business community which contribute to the decision process
BUYING ROLES
● INITIATOR- person who first suggests the idea of buying a particular product or service.
● INFLUENCERS- these people’s views or advices can influence the eventual selection of
what to buy.
● DECIDER- the person/s who ultimately has the final say on what to buy.
BUYER- the person who makes the actual purchase.
USERS- the person/s who end up actually using the product