LG 1: INTRODUCTION TO
ENTREPRENEURSHIP
Entrepreneur (entrepreneur —> people):
-comes from the french word “entreprende”
which means ‘to undertake’.
-risk venture (risk takers).
-manage self own business.
Entrepreneurship:
-It is an art of observing a correct
practice/correct management in managing and
creating a business.
-operating a self-owned wealth-creating
business.
-gives quality goods aand service to people.
-gives job opportunities.
Why do NGOs (Non-governmental
organizations) focus on small businesses?
- it could be because the owners of small
businesses lack the necessary knowledge
training and budget for their entrepreneurial
activities.
Planning - refers to the process of setting the
goals of the business. Without planning, the
possibility of failure is great.
Joseph Alois Schumpeter:
-Austrian economist and political scientist.
-Innovation centures, marketing, and production
methods.
-advocated Innovation theory.
-entrepreneur —> individual with distinct social
characteristics or attributes.
Small Business:
-is owned by one person with a workforce of not
more than twenty (20) persons.
Ordinary Business:
-owner who does not practice the concepts and
principles of entrepreneurship.
-almost found everywhere.
FIVE CHARACTERISTIC OF
ENTREPRENEURS
1. It is an art of proper conduct:
-Entrepreneurs don't follow strict rules. They use
fresh ideas, adapt to changing markets, and
always look for better ways to do things.
2. It is an enterprise that produces wealth:
-Entrepreneurship is about making more than
just profit. It's about creating abundance for both
the business owner and the community.
3. Offers useful products and services:
Entrepreneurs offer valuable goods and services
that make customers happy. They listen to
feedback and strive to improve.
4. Starting and running a self-owned
business:
Entrepreneurs start and run their businesses
independently. They're not just managers;
they're owners in charge.
5.Involves taking risk:
Entrepreneurship involves taking risks.
Entrepreneurs face challenges and find smart
ways to deal with them. They don't shy away
from uncertainty; they tackle it head-on.
MISCONCEPTIONS AND MISPERCEPTIONS
1. ENTREPRENEURSHIP APPLIES ONLY TO
MANUFACTURING BUSINESS:
-Don't think entrepreneurship is only for making
things. It's also for services and retail.
2. ENTREPRENEURSHIP APPLIES ONLY TO
SMALL BUSINESSES:
-Entrepreneurship isn't only for small
businesses. Big businesses can also do it.
3. APPLIES MOSTLY TO PERSONS WITH A
GOOD EDUCATIONAL BACKGROUND IN
BUSINESS COURSES.
-You don't need a special business degree to be
an entrepreneur. Anyone can do it if they
understand the basics.
4. ENTREPRENEURSHIP APPLIES ONLY TO
A GOOD ECONOMY:
-Entrepreneurship isn't just for good times. Even
in tough times, you can be creative and find new
business ideas.
5. ENTREPRENEURSHIP IS SIMPLY
OPENING A SMALL BUSINESS.
-Entrepreneurship is more than just starting a
small business. It's a whole process that
involves planning and growing over time.
FIELDS AND CAREER OPPORTUNITIES
-Management Analyst: Analyzes and improves
company operations.
-Construction Manager: Oversees construction
projects, manages teams, and ensures budgets
and timelines are met.
-Sales Manager: Leads sales teams, sets
goals, and analyzes sales data.
-Web Developer: Designs and creates websites
using programming languages.
-Marketing Manager: Develops and executes
marketing strategies for brands and businesses.
-Financial Advisor: Provides financial guidance
and investment advice to clients.
-Real Estate Appraiser: Determines property
values and prepares reports.
-Public Relations Manager: Manages a
company's public image and media relations.
-Social Media Manager: Oversees social media
presence and engagement for a brand or
company.
THEORIES OF ENTREPRENEURSHIP
1. Innovation Theory (Joseph Schumpeter):
New ideas and changes drive economic growth.
Five (5) forms of Innovation theory
➢ new product
➢ new production method
➢ new market
➢ new supplier
➢ new industry structure
2. Keynesian Theory (John Maynard
Keynes—British economist): Governments
can help entrepreneur during economic crises
by ensuring people have money to spend.
3. Alfred Marshall Theory: Entrepreneurs
organize production and must understand their
industry, foresee changes, and have necessary
skills.
4. Risk and Uncertainty-Bearing Theory
(Frank H. Knight–American economist): take
calculated risks and handle uncertainties while
connecting producers and consumers
OTHER THEORIES
1. Kaldor's Technological Theory: Using
modern technology is key for efficient
production.
2. Weber's Sociological Theory:
Entrepreneurs align with cultural norms
and beliefs.
3. Leibenstein's Gap-Filling Theory:
Entrepreneurs spot market gaps and
help struggling ventures.
4. Kirzner's Learning-Alertness Theory:
Entrepreneurship involves quick
learning and adapting to opportunities
and consumer needs.
LG 2 : SKILLS AND CORE
COMPENTENCIS IN
ENTREPRENEURSHIP
Entrepreneurial Character Traits and
Clusters
1. Cluster of Achievement
-strive for excellence and success.
a. Opportunity-Seeker: Identifies and acts on
new business opportunities.
b. Committed: Fully dedicated to their business
and customer satisfaction.
c. Persistent: Perseveres through challenges
and failures.
d. Risk-Taker: Willing to take calculated
business risks.
e. Efficiency and Quality-Driven: Prioritizes
excellence and cost efficiency.
2. Cluster of Planning
-supports the achievement traits
a. Goal Setter: Sets SMART (Specific,
Measurable, Achievable, Realistic, Time-bound)
goals.
b. Information Seeker: Gathers relevant
information and seeks advice.
c. Systematic in Planning and Monitoring:
Plans systematically, monitors progress, and
adapts as needed.
3. Cluster of Power
- focuses on interpersonal skills and
self-confidence
a. Persuasive and Positive Worker:
Persuades others positively and uses contacts
to achieve goals.
b. Self-Assured: Has faith in their abilities
based on past experiences.
ENTREPRENEURIAL SKILLS
Skills – are the personal abilities to do
something well. They come from the knowledge,
practice or experience, and aptitude of a person.
•Skills required in the practice of
entrepreneurship:
1. Cognitive
2. Interpersonal
3. Technical
Cognitive Skills: The mental ability to learn,
generate new ideas, and express knowledge
orally and in writing.
Technical Skills: Proficiency in specialized
fields like computer technology, accounting,
marketing, engineering, or other technical areas.
Interpersonal Skills: Relating to interactions
with workers, suppliers, creditors, customers,
and the business community,
a. Verbal Communication Skills
b. Non-Verbal Communication Skills
c. Listening Skills
d. Leadership Skills
e. Negotiation Skills
LG 3 THE ENVIRONMENT OF THE
ENTREPRENEURIAL VENTURE
A. CHANGES IN ENVIRONMENT
Entrepreneurial ideas arise from the changes
that happen in the external environment with
entrepreneurial implications.
EXTERNAL ENVIRONMENT
1. Physical environment :natural environment
(climate, natural resources, wildlife)
a. wild life
- Preservation.
- -its all about ecological business.
- -know how to preserve not to destruct.
- -become a role model.
2. Societal Environment - includes various
forces.
a. Social factors
- Human interactions.
- Can influence values, attitudes, lifestyle.
b. Political factors
- Trade regulation.
- Tax, government stability, workers
benefit.
c. Economic factors: manage movement
in the country.
- Legal factors.
- Product control & pricing.
- Health and safety of the workers
- Exercise professionalism.
d. Cultural factors:
- Traits of ethnic group.
- Religion, belief, language, education,
custom.
3. Technological Factor: refers to computer,
technology adaption, discovery. (advancement
of business)
Environmental scanning: gathering info,
researching, critical analysis, use of knowledge
regarding events and activities (companies
operating environment)
IMPORTANCE OF SCANNING THE
ENVIRONMENT
- Identifies potential threat/opportunity.
 - Prospective factors, that will have
impact on success of entrepreneurial
endeavor.
- Identifies company future path.
- Formulation of appropriate strategy.
APPROACHES TO SCANNING SOCIETAL
ENVIRONMENT:
1. Pestel Analysis: display trends/ development
in external force.
● Political (P)- policie guide , if
government is stable.
● Economic (E)- changes/movement
● Socio Cultural (S)-
● Technological (T)- for advancement
● Environmental (E)-
● Legal Aspects (L)-
b. Environmental Forces Matrix: Supplement
portion of pestle model.
INDUSTRY ENVIRONMENT
-external environment layer, which trends and
changes are easily & quick perceived by the
firm.
● Government: institutions that handles
affirm.
● Supplier: supply raw and required
materials.
● Customers: are the buyer of goods or
services. Competitors: provide items or
services similar products.
● Employees: are the backbone,
responsible for the production of goods
or delivery of services to the consumers.
● Creditors:are banks, lend money to
borrowers in exchange for a fee or
charge in the form of interest.
INDUSTRY ANALYSIS SCANNING TOOLS
1. SWOT model analysis:
-It is a popular tool to evaluate the internal
environment.
-George Albert Smith Jr. and Roland
Christensen.
Strengths(positive attributes, capabilities)
Weaknesses(poor attributes, disadvantages)
Opportunities(potential profit & grow)
Threats(events may harm business)
2. Forces of Competition Model:
-The long-term survival of the business.
-Popularize by Michael Porter.
-cannot do anything but compete.
1. Potential new entrants
2. Buyers
3. Substitute products
4. Supplier
5. Rivalry among existing firms
Barries of 5 forces of competition:
1. Potential new entrant: one competitive
forces in the industries
2. Buyers: strong bargaining powers in
industry.
3. Supplier
4. Rivalry among existing firms.
5. Substitute product.
3. Competitive Forces Matrix
-which the entrepreneur can view the
total perspective of competition within
the industry where the business
operates.
FORMS OF ENTREPRENURIAL VENTURE:
-classfication of firms based on number of
owners.
1. Sole proprietorship = own by 1
2. Partnership = own by 2 or more.
Classifications of Partnership:
Universal Partnership –contribution by partner
of all present property or of all profits.
Particular partnership – include objects which
are determinate things
II. Based on liability of partners for
obligations:
General Partnership – are liable for the debts
of the business, including their personal property
after all the partnership assets have been
exhausted.
Limited Partnership – consists of one or more
general partners and one or more limited
partners
III. Based on their contribution:
Capital Partner – contributes money or property
to the funds of the partnership.
Industrial Partner – shares work, labor or
industry to the business.
Capitalist-Industrial Partner – contributes
money or property as well as his work or
industry to the capital of the partnership.
3. Corporation = legal entity.
Classifications of Corporation
I. Based on the source of capital
Stock Corporation – capital is in the form of
capital stock divided into shares.
Non-stock Corporation – no part of its income
is distributable as dividends to members,
trustees or officers.
II. Based on the type of ownership
Public Corporation –the government or a
portion of the State.
Private Corporation – private purpose of
benefit.
III. Based on their relation to other
corporation
Parent Corporation – own controlling interest in
another corporation, by more than 50%. It has
the power to directly or indirectly elect the
majority of the directors of the corporation.
Subsidiary Corporation – the investee
corporation in which the parent corporation has
controlling interest.
IV. Based on their country of origin
Domestic Corporation – created under the
Philippine laws.
Foreign Corporation – formed, organized
under existing laws other than the Philippines.
V. Based on acceptable stockholders
Close Corporation – limited to selected
persons or members of a family
Open Corporation – open to any person who
may intend to become a stockholder or member
of the corporation.
NATURE OF ENTREPRENURIAL VENTURE
1. Merchandise - engage of buying and
selling.
2. Service - Provides service to
customers.
3. Manufacturing - supply / buy raw
materials.
4. Agriculture - engage in production of
agricultural products and goods.
PRODUCTION SYSTEM
1. The input - man power, materials,
machine, design, instructions.
2. Transformation/ Production - inspection
etc.
3. Output - final product from production.
FOUR Ms OF PRODUCTION
Man power: human forces.
Methods: process/ technique (raw
materials–product)
Machine: Manufacturing equipment
Materials: raw material needed
LG 4: MARKET SEGMENTATION
MARKET SEGMENTATION
-marketing strategy designed primarily to divide
the market into small segment with distinct need,
characteristics, or behavior
THE COMMONLY USED METHODS FOR
SEGMENTING THE MARKET ARE:
A. Geographic segmentation
- divides the whole market to geographical
places
-provincial regions, cities, provinces,
municipalities, and even barangay levels.
- climate, dominant ethnic group, culture,
density, etc.
B. Demographic technique
-most often used and most straightforward way
of market segmentation.
- Gender, age, income, occupation, education,
religion, ethnic group, family size.
C. Psychological segmentation
- categorizes based on customer perceptions
and beliefs, such as needs, attitudes, social
class, personality traits, knowledge, brand
concept, and lifestyle - so you can market
accordingly.
THREE MAIN PSYCHOLOGICAL
SEGMENTATION
➢ PERSONALITY
➢ LIFESTYLE
➢ SOCIAL CLASS
Behavioral Segmentation
- is the process of categorizing clients based on
how they behave when making purchases.
- perceptions, knowledge, reactions, benefits,
loyalty, reponses etc.
MARKETING TARGETING
-Is a in the market identification process that
tries to identify a group of buyers who share
similar wants and characteristics.
SEGMENT SIZE AND GROWTH
-refer to how large and quickly a potential
market sector is growing.
SEGMENTATION MATRIX
-A powerful/versatile tool that helps
entrepreneurs make strategic decisions about
market segmentation.
THREE IMPORTANT PARTS OF THE
SEGMENTATION MATRIX
1. SEGMENT SIZE
-Indicated in terms of predicted product demand
-Tells us how many people might want to buy
our product in a certain group
-It helps us see how big the market is.
2.EXPECTED GROWTH
- fitted to the particular need of the consumers
and it is based on the concept that the
consumers.
DIFFERENTIATED MARKETING
is for a company to exist in practically all
segments but only serve a few clients in each.
Concentrated or Niche Marketing- can be
used when the entrepreneur wants to cover only
one or few segments but the product is designed
for the majority of the consumers in the segment
market.
3. COMPETITIVE FORCES
-Can be characterized as strong, moderate, or
weak
Strong Forces: hard for others to join a market
= less competition.
Moderate Forces: neither too hard nor too easy
for others to join = have some competition.
Weak Forces: easy for others to join a market =
a lot of competition.
Market segment selection- is important for
marketing a business. The entrepreneur must
choose the right customers to target with their
marketing tactics.
THE BASIC ENTREPRENEURAL
MARKETING STRATEGIES RELATIVE TO
THE SELECTED SEGMENT ARE THE
FOLLOWING:
Individual or One-on-One marketing strategy
- is suited or have different needs and wants.
Examples are: tailoring shops, printing shops,
parlor and salon.
Mass marketing
-refers to a marketing strategy in which
companies target a large and diverse market
with a broad appeal
Market positioning
-is the process of defining a product's unique
and desirable place in the minds of consumers
relative to its competitors.
LG 5 Consumer Marketing Strategies
CONSUMER BUYING BEHAVIOR
Environmental Factors:
➢ Cultural Factor
➢ Social Factor
➢ Personal Factor
➢ Psychological Factor
1. CULTURAL FACTOR
-It is a factor wherein the perceptions, attitudes,
value system and even religion of ethnic or
racial groups influence their buying behavior.
2. SOCIAL FACTOR
-This factor refers to the relationship maintained
or established by the consumers with other
members of the society.

3 STATE IN SOCIAL CLASS
Upper Class- Elite / Wealthy Consumers
Middle Class- professionals / blue- and
white-collar workers ( mga nagoofice to be
exact)
Lower Class- working poor / marginalize
people ( low income individuals)
3. PERSONAL FACTOR
-This refers to the individual characteristics of
buyer within the terms of age, occupation, wage,
and way of life.
4. PSYCHOLOGICAL FACTOR
-This refers to the recognitions, convictions, and
state of mind of the customer.
BUYING DECISION PROCESS AND
MARKETING MIX
Buying Decision Process
-Entrepreneur must thoroughly evaluate the
buying decision process of the consumers
The buying Decision process of consumers
involves the following steps:
REGOGNITION OF THEIR NEEDS AND
WANTS- everybody buys because of their
needs, but not all buy because of their wants.
SEARCH FOR RELEVANT INFORMATION
ABOUT THE PRODUCT- consumers usually
gather desired information about the product
from different types of media.
EVALUATION OF ALTERNATIVES- The
consumer evaluates variousalternatives and
make comparisons of the different alternatives
and make comparison of the different brands
existing in the market.
Significant area that the consumers
consider:
➢ Price
➢ Quality and durability
➢ Brand, color, and design
➢ Terms and conditions
➢ Required payment
➢ Amount of credit
➢
PURCHASE DECISION- the stage when the
customer actually buys the product.
POST-PURCHASE ANALYSIS- this is the stage
when the buyer simply analyze whether his/her
expectation about the product acquired has
been met or not.
The MARKETING MIX
-Refers to a technique, means, or tool utilized by
the entrepreneur to place the product in the
target market segment in order to efficiently and
successfully convey it to the consumers and
convince the benefits of the product
The 7 Ps of the marketing in
entrepreneurship
1. Product- refers to the tangible good or
intangible service offered by the business to the
target consumers.
2. Place- refers to the place where the target
consumer are.
3. Pricing- relative to the marketing mix, can be
viewed from two opposing perspectives, namely,
the perspective of entrepreneur who produces
the product and opposing perspective of the
consumers who ultimately buy the product .
These include the following:
Availability of competing Products- producers
tend to gradually bring down the prices when the
supply is high and pushes the price up when the
supply is low
Cost of making the product- the basic rule is that
the entrepreneur should not set a price lower
that the cost involved in making the product.
Three elements of cost:
Direct labor- refers to the wages paid to the
workers who are directly involved manufacturing
the product.
Factory Overhead- Includes indirect materials
and labor and other expenses like the cost of
light, water, fuel, or machinery maintenance.
Direct Materials- Pertain to the materials that
form part of the finished product.
Type of Product- products are classified as:
Industrial Products- are used as raw materials
for other manufacturing entities.
Consumer products- are used and consumed by
the individual customers.
Presence of substitute products- substitute
products is a threat to the primary products
because consumers can easily switch and buy
the substitute products with lower prices.
Demographic profile of the target customers-
they influences the process of setting the mose
appropriate prices of the good or services.
4. PROMOTION
Refers to the mode of conveying the presence
and attributed of the product to the target
customers.
Advertising- in the form of television/radio
commercials, print advertisements, online
advertising, and packaging ads
Publicity- they are usually informed through a
formal statement or press release about a
particular event where the product or service will
be presented or endorsed by some well-known
personalities.
Personal Selling- involves a sales person who
has a personal or direct contact with prospective
consumers.
Sales Promotions- this strategy involves giving
incentives to consumers by using promotional
tools like the following:
5. PEOPLE- refers to individual employees or
workers who are directly involved in the
production, marketing, and sale of the product or
services.
6. PACKAGING- refers to the process of putting
the product in a package or container.
Is to protect form spillage, damage, or spoilage.
7. POSITIONING- refers to the place occupied
by the product in the minds of consumers.
ENTREPRENEURIAL RESEARCH
Research is a scientific investigation that
involves collecting, introducing, investigating,
and translating information to understand
customer buying behavior through a procedural
process.
Types of Entrepreneurial Research
Descriptive research- is conducted by
entrepreneurs to understand consumer buying
behavior based on environmental factors,
decision processes, and marketing mix.
Causal research,-also known as explanatory
research, aims to determine if consumer buying
behavior is influenced by environmental factors.
It involves gathering data to determine
cause-and-effect relationships, allowing
entrepreneurs to make conclusions about target
market segment buying behavior.
Research Data
It refers to the type of crucial data that will be
gathered in order to answer the research work's
purpose.
Quantitative data,- such as consumer income,
product sales volume, age, and unit production,
are numerical values used to calculate
consumer purchasing behavior.
Qualitative data - are generally descriptive data
and hence cannot be counted such as ethnic
group perception and consumer gender, are
descriptive and cannot be counted, making
mathematical computations impossible.
Primary data- are study findings obtained
directly from market segment consumers by the
entrepreneur.Obtained directly from market
segment consumers through surveys,
experimentation, and observation, are the most
commonly used methods in research.
Secondary data-refers to data gathered by
another researcher for other purposes and now
exists on other sources, such as the survey
conducted by NSO.
Research Instruments
is a tool used by the entrepreneur in gathering
or collecting the data
Entrepreneurs often use survey questionnaires
to gather information about client purchasing
behavior.
Personal interviews - are conducted with
consumers, with a schedule defining questions.
Focus group discussion- is conducted by an
entrepreneur with the help of a moderator to
accumulate the views of chosen customers on
certain issues relative to their buying behavior.
THE CONCEPT OF NEEDS, WANTS, and
BRANDING

Needs- refer to the things that an individual

must have in order to survive. ( EX. Food,
clothing and shelter among others)

Wants- refer to the things that an individual must

have in order to be upbeat, comfortable, and
fulfilled.

BRANDING
Brand- refers to the name, design, color,
symbol, quality, features, or combination of
these elements that make product separate and
distinct from similar products of competitors.

Branding- it has been considered by the

experts in the field of marketing and
entrepreneurship to be another marketing
strategy of product positioning. The brand
carried the attributed, benefits and even values
of the product.

Branding strategy- is a long term plan for the

development of a successful brand in order to
achieve specific goals.

TWO BRANDING STRATEGIES

Umbrella Brand Approach- All the products of
the business carry the same brand name. The
various product lines are not differentiated from
each other from the perspective of the brand
name. Example: Apple Inc., under this brand
name customers may find iPad, iPhone, Apple
watch, Mac Air, Mac Book, etc.

House Brand Approach- Every product of the

same business has a separate brand name the
distinguishes it from the rest of the company's
product. Example is Unilever.