Entrepreneurship

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make unique and profitable solutions to

FIRST MODULE
the present-day problems.

RELEVANCE OF ENTREPRENEURSHIP TO AN FACTORS AFFECTING ENTREPRENEURSHIP

ORGANIZATION

Personality Factors which includes:

Development of Managerial Capabilities
● This means that one of the benefits ● Initiative - doing things even
an entrepreneur gets is to develop before being told
his managerial skills. ● Proactive - an entrepreneur can
classify opportunities and seize it.
Creation of Organizations ● Problem Solver - an entrepreneur
● Because of entrepreneurship many
can retain good relations with
organizations will exist.
other people.

Improving Standard of Living ● Perseverance - an entrepreneur

● Entrepreneurship can lift up the will pursue things to get done
economic status of an individual. regardless of challenge.
● Persuasion - an entrepreneur can
Means of Economic Development
entice people to buy even if they
● Not only the life of the
don’t.
entrepreneur is improved but also
● A Planner - an entrepreneur
the society where the business is
makes a plan before doing things
located.
and does not fail to monitor it.
● Risk-taker - an entrepreneur is
CONCEPT OF ENTREPRENEURSHIP
willing to gamble but he will
calculate it first.
The word “entrepreneur” was derived from
the French verb entreprendre, which
Environmental Factors include political,
means “to undertake.” This is pinpointing
climate, legal system, economic and social
to those who ”undertake” the risk of
conditions, and market situations.
enterprise. The enterprise is created by an
entrepreneur and the process is called
COMMON COMPETENCIES IN
“Entrepreneurship.”
ENTREPRENEURSHIP

Entrepreneurs are innovators, willing to

● Decisive - an entrepreneur must
take risks and generate new ideas to
be firm in making decisions.
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● Communicator - an entrepreneur Innovative

must have a convincing power. ● Entrepreneurs constantly look for
● Leader - an entrepreneur must new ideas, thus he needs to be
have the charisma to be obeyed creative.
by his employees.
● Opportunity seeker - an Profit Potential
entrepreneur must have the ability ● An entrepreneur can be
to be the first to see business compensated by his profit coming
chances. from the operation.
● Proactive - controlling a situation
by making things happen by Risk bearing
preparing for possible future ● An entrepreneur needs to gamble
problems. but wise enough to offset the risk.
● Risk taker - have the courage to
pursue what is their business ideas TYPES OF ENTREPRENEURS
● Innovative - the entrepreneurs
have big business ideas and they Innovative Entrepreneurs
do not stop improving and ● They are those who always make
thinking of new worthwhile ideas new things by thinking of new
for their business. ideas.

CORE COMPETENCIES OF Imitating Entrepreneurs

ENTREPRENEURSHIP ● They are those who don’t create
new things but only follow the
Economic and Dynamic Activity ideas of other entrepreneurs.
● Entrepreneurship is an economic
activity because it involves the Fabian Entrepreneurs
creation and operation of an ● They are skeptical. They don’t
enterprise with a view to creating initiate but follow only after they
value or wealth by ensuring are satisfied.
optimum utilization of limited
resources. 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.
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Social Entrepreneurs Entrepreneurial Gut Game

● They are those who initiate ● This refers to the ability of the
changes in the various fields such entrepreneur to be intuitive. This is
as education, health, human rights, also known as intuition. The gut
environment and enterprise game also means confidence in
development. one’s self and the firm believes
that everything you aspire can be
reached.
SECOND MODULE

PROCESS OF CREATING NEW VENTURE THIRD MODULE

Value Proposition (VP) is a business or

marketing statement that summarizes
why a consumer should buy a company's
product or use its service. This statement

ESSENTIALS IN ENTREPRENEUR’S is often used to convince a customer to

OPPORTUNITY SEEKING purchase a particular product or service

to add a form of value to their lives. In

Entrepreneurial Mind Frame creating Value Proposition, entrepreneurs

● Allows the entrepreneur to see will consider the basic elements:

things in a very positive and

optimistic way in the midst of ● Target Customer

difficult situations. Being a risk - ● Needs/opportunities

taker, an entrepreneur can find ● Name of the product

solutions when problems arise. ● Name of the enterprise/company

Entrepreneurial Heart Flame Entrepreneurs should think of some

● Entrepreneur's driven passion, they alternatives and how it works better. An

are attracted to discover important aspect in Value Proposition must

satisfaction in the act and process be truthful that will establish credibility to

of discovery. Passion is the great the consumers.

desire of an entrepreneur to
achieve his/her goals. Example: Aling Charing Sari-sari Store is
open only from 6:00 am to 6:00 pm, but
Aling Charing noticed that there are
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customers who go to a nearby town to
look for a convenience store at around
10:00 pm to 6:00 am. She believes that this
is a great opportunity for her store to
operate 24/7.
In this example, the proposed value
proposition: “Charing Sari-sari Store, opens
24/7.”
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.
As an entrepreneur, you think of marketing
concepts that persuade your target
customers. The following questions you
may ask in doing this, What the customers
want? What brand does well? What does
your competitor do well?
Some tips for the entrepreneur on how to
create an effective unique selling
proposition to the target customers:
● Identify and rank the uniqueness of
the product or services character
● Very Specific
● Keep it short and simple (KISS)
As an entrepreneur, present the best
feature of your product or services that
are different from other competitors. In
promoting your products or services, make
sure that it is very specific and put details
that emphasize the differentiator against
the competitors. Keep it short and simple
and think of a tagline that is easy to
remember. Right now, the proposed unique
selling proposition: “Charing Sari-sari Store,
opens 24/7.”
Unique Selling Proposition and Value
Proposition are two most famous tools
used to explain why prospect customers
buy each product and service. Based on
each definition, we learn that USP and VP
are frameworks of each business industry.
The two propositions are valuable for the
entrepreneurs.
Target Market
● Market Targeting is a sage in
market identification process that
aims to determine the buyers with
common needs and
characteristics. Prospect
customers are a market segment
that entrepreneurial venture
intends to serve.
● In targeting a specific market, it will
exclude people even if it will not fit
your criteria. Rather, target
marketing allows you to focus your
marketing money and brand
message on a specific market that
is more likely to buy from you than
other markets. Product is a more
affordable, efficient, and effective
way to reach potential clients and
generate business.
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COMMONLY USED METHODS FOR Behavioral Segmentation

SEGMENTING THE MARKET ● divided according to customers’
behavior pattern as they interact
Geographic Segmentation with a company
● The total market is divided
according to geographical Variables to consider:
location. ● Perceptions
● Knowledge
Variables to consider: ● Reaction
● Climate ● Benefits
● Dominant ethnic group ● Loyalty
● Culture ● Responses
● Density (either urban or rural)
Customer Requirements
Demographic Segmentation ● Customer requirements are the
● Divided based on consumers specific characteristics that the
customers need from a product or
Variables to consider: a service.
● Gender
● Age There can be two types of customer
● Income requirements:
● Occupation
● Education
Service Requirement
● Religion
● Intangible thing or product that is
● Ethnic group
● Family size not able to be touched but
customers can feel the fulfillment.
Psychological Segmentation There are elements in service
● divided in terms for customers requirements like on-time
think and believe
delivery, service with a smile,
easy-payment etc. It includes all
Variables to consider:
aspects of how a customer
● Needs and wants
● Attitudes expects to be treated while
● Social class purchasing a product and how
● Personality traits easy the buying process goes.
● Knowledge and awareness
● Brand concept
Output Requirement
● Lifestyle
● Tangible thing or things that can
be seen. Characteristic
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specifications that a consumer

expects to be fulfilled in the Market size becomes the most important
product. Customers that will avail if you ever need to raise funding for your
services as a product, then various business.
service requirements can take the
form of output requirements. For
FOURTH MODULE
example, if the consumer hires a
multi cab, then on-time arrival
becomes an output requirement. The Market Research or Marketing

Customers buy gadgets (phone Research Process can be defined as the

speakers), the specifications like process of gathering, analyzing and

the loudness and clarity are the interpreting the information about the

output requirements. products or the services to be offered for

sale to the potential consumers in the

Market Size market.

● Entrepreneur’s most critical task is

to calculate the market size, and There are different ways to collect the data.

the potential value that market has The most important methods you can

for their startup business. Market consider are surveys, focus group

research will determine discussion and interviews.

entrepreneur possible customers in

one locality. Data Collection is the most valuable tool

● Market size is like the size of an of any type of research study. Inaccurate

arena where the entrepreneurs will data collection may cause mistakes and

play their business. It is the ultimately lead to invalid results.

approximate number of sellers

and buyers in a particular market. Surveys are the most common way to
gather primary research with the use of

In determining the market size, questionnaires or interview schedules.

entrepreneurs will conduct a strategic These can be done via direct mail, over

marketing research from reliable sources the phone, internet (e.g. Google) or email,

using the following method. face-to-face or on Web (e.g. Skype or

Viber).

1. Estimate the potential market

2. Estimate the customers Interview is one of the most reliable and

3. Estimate the market share credible ways of getting relevant

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information from target customers. It is is not as high as the face-to-face

typically done in person between the interview, but considerably higher than
researcher/entrepreneur and a respondent the mailed questionnaire.
where the researcher asks pertinent
questions that will give significant pieces of Focus Group Discussions (FGD) are an
information about the problem that he will excellent method for generating and
solve. The interview is also helpful even screening ideas and concepts. It can be a
when the business has already started moderated group interview and
because the customers’ feedback brainstorming session that provide
provides the entrepreneur a glimpse of information on user’s needs and behaviors.
what the customers think about the
business. The length of the session is between 90
and 120 minutes. Usually, focus groups
Interviews normally last from 15 to 40 discussion are conducted with 8 to 10
minutes, but they can last longer, participants per group.
depending on the participants’ interest in
the topic.
FIFTH MODULE

In a structured interview, the researcher

asks a standard set of questions and Marketing Mix is a set of controllable and
connected variables that a company
nothing more.
gathers to satisfy a customer better than
its competitor. It is also known as the “Ps”
Personal interviews are the traditional
in marketing.
method of conducting an interview. It
allows the researcher to establish The original 4 P’s stands for product,
relationships with potential participants place, price and promotion. Eventually,
and therefore gain their cooperation. It three elements have been added, namely:
people, packaging and positioning to
generates the highest response rates in
comprise the 7 P’s.
survey research. They also allow the
researcher to clarify indefinite answers Product
and when necessary, seek follow-up ● Marketing strategy typically starts
information. with the product. Marketers can’t
plan a distribution system or set a
Telephone interviews are less expensive price if they don’t know exactly
what the product will be offered to
and less time consuming, but the
the market.
disadvantages are that the response rate
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● Product refers to any goods or
services that are produced to
meet the consumers’ wants,
tastes and preferences. An
example of goods includes tires,
MP3 players, clothing, etc. Goods
can be categorized into business
goods or consumer goods.
Place
● Place represents the location
where the buyer and seller
exchange goods or services. It is
also called the distribution
channel. It can include any
physical store as well as virtual
stores or online shops on the
Internet.
STAGES OF A DISTRIBUTION CHANNEL
Channel 1 contains two stages between
producer and consumer - a wholesaler
and a retailer. A wholesaler typically buys
and stores large quantities of several
producers' goods and then breaks into bulk
deliveries to supply retailers with smaller
quantities. For small retailers with limited
order quantities, the use of wholesalers
makes economic sense.
Channel 2 contains one intermediary. In
consumer markets, this is typically a
retailer. A retailer is a company that buys
products from a manufacturer or
wholesaler and sells them to end users or
customers. In a sense, a retailer is an
intermediary or middleman that
customers use to get products from the
manufacturers.
Channel 3 is called a "direct-marketing"
channel, since it has no intermediary
levels. In this case the manufacturer sells
directly to customers.
Price
● The price is a serious component
of the marketing mix. In the
narrowest sense, price is the value
of money in exchange for a
product or service. Generally
speaking, the price is the amount
or value that a customer gives up
to enjoy the benefits of having or
using a product or service.
● One example of a pricing strategy
is penetration pricing. It is when
the price charged for products
and services is set artificially low
in order to gain market share.
Once this is attained, the price can
be higher than before. If you
already have a good number of
market share then you can slowly
increase your price.
Promotion
● Promotion refers to the complete
set of activities, which
communicate the product, brand
or service to the user. The idea is
to attract people to buy your
product over others. Advertising,
Personal Selling, Sales Promotion,
Direct Marketing, and Social
Media are examples of promotion.
People
● This consists of each person who is
involved in the product or service
whether directly or indirectly.
● People are the ultimate marketing
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strategy. They sell and push the

SIXTH MODULE
product. People are one of the
most important elements of the
marketing mix today. This is The factors involved in the input and the
because of the remarkable rise of production process are usually referred to
the services industry. The people as the Four M’s of production, namely
rendering the service must be Manpower, Method, Machine, and
competent and skilled enough so Materials.
that the clients will patronize your
service. Manpower
● Talks about the human labor force
Packaging involved in the manufacture of
● Packaging is a silent hero in the products.
marketing world. Packaging refers ● It is measured as the most serious
to the outside appearance of a and main factor of production. The
product and how it is presented to entrepreneur must determine,
the customers. The best attain and match the most
packaging should be attractive competent and skilled employees
enough and cost efficient for the with the jobs at the most
customers. Packaging is highly appropriate time period.
functional. It is for protection, ● Educational qualifications and
containment, information, utility experience, status of
of use and promotion. employment, numbers of workers
required, skills and expertise
Positioning required for the job are some of the
● When a company presents a manpower criteria that must be
product or service in a way that is highly considered by the
different from the competitors, entrepreneur.
they are said to be “positioning” it.
Positioning refers to a process Material
used by marketers to create an ● Talks about raw materials
image in the minds of a target necessary in the production of a
market. Solid positioning will allow product. Materials mainly form part
a single product to attract of the finished product. Just in case
different customers for not the the resources are below standard,
same reasons. the finished product will be
unsatisfactory as well.

Machine
● Discusses about manufacturing
equipment used in the production
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of goods or delivery of services.

● In the process of selecting the type
of equipment to purchase, the
entrepreneur may consider types
of products to be produced,
production system to be adopted,
cost of the equipment, capacity of
the equipment, availability of spare
parts in the local market, efficiency
of the equipment and the skills
required in running the equipment.

Method
● Production method discusses the
process or way of transforming
raw materials to finished
products. The resource undergoes
some stages before it is finalized
and becomes set for delivery to the
target buyers.
● The selection of the method of
production is dependent on
product to produce, mode of
production, manufacturing
equipment to use and required
skills to do the work.