Entrep Qe

Introduction to Entrepreneurship
What do you know about Entrepreneurship?

South Korea
Rugs to Riches
Takeaway:
We were doing a whole lot better than them.

The Philippines South Korea
Korea
1950s Poorest Country in the World

President of South Korea
1963 - 1979
Korea
1950s Poorest Country in the World

Korea has no natural resource
So they leveraged on industrial products.

1962 1967 1972 1977 1982 NOW
Daejeon – South Korea’s Tech Hub
Government imposed monopoly

resulted to economies of scale.
The ”chaebols” contributed to a huge
chunk of S.Korea’s GDP
Government imposed monopoly

resulted to economies of scale.
Will you not dream the same for
the Philippines?
Outline of Discussion
Things we’ll talk about on this lesson.
Definition of
Entrepreneurship
Characteristics
Entrepreneurial
What attributes do you have Process and Decision
to develop? Making
Attributes that are based on How does an entrepreneur make
studies. decision and act upon things in
general?
Presentation name goes here

ENTREPRENEURSHIP
Self-employment of any sort

(Cantillon, circa 1730) 44% Actively use and access
Facebook Marketplace.
Activity that involves identifying

opportunities within the economic system
Presentation name goes here 19

ENTREPRENEURSHIP
Self-employment of any sort

(Cantillon, circa 1730)
Activity that involves identifying

opportunities within the economic system

ENTREPRENEURSHIP
refers to all the processes and activities involved Entrepreneurship involves seeking opportunities
in establishing, nurturing, and sustaining a for a market, establishing and operating a
business enterprise. It is an economic activity business out of the opportunity and assessing its
that involves setting up, operating, and taking risks and rewards through close monitoring of
the financial risks of a business. the operations.
(Batisan, 2016)

ENTREPRENEURSHIP
refers to all the processes and activities involved Entrepreneurship involves seeking opportunities
in establishing, nurturing, and sustaining a for a market, establishing and operating a
business enterprise. It is an economic activity business out of the opportunity and assessing its
that involves setting up, operating, and taking risks and rewards through close monitoring of
the financial risks of a business. the operations.
(Batisan, 2016)

entreprendre
”venture” in French
19
entrepreneur

Who is an Entrepreneur?
Entrepreneurs create value by introducing

new products and services or finding
better ways of making them.
Hence, they become change agents of the world
Sets up a Takes financial Generates Creates new,

business
Presentation name goes here risks Profit Innovates
19
Entrepreneurial
Behavior

Inside the mind of an Entrepreneur
We approach a situation
Entrepreneurial
Decision-Making Process
Go for the safe
and easy.
Critical Thinking Analyze and evaluate things based on facts and Objective Decisions
evidence. Unbiased.
Creative Thinking Consider things in a fresh perspective. Innovative Decisions
Thought process provoked by variables and

Strategic Thinking Effective Decisions
incremental outcomes.

Thoughts to Ponder
How does an entrepreneur create and build?
- Discovery
- Concept Development
- Organizing Resources
Entrepreneurial - Implementation
Process
- Returns

Thoughts to Ponder
- Discovery
Entrepreneurial
Process - Implementation
An entrepreneur may seek or realize
an opportunity.
- Returns

Thoughts to Ponder
- Discovery
- Concept
Development
Entrepreneurial - Organizing Resources
Process
- Implementation
Based on the opportunity, an idea will
be drafted and feasibility will be
- Returns analyzed.

Thoughts to Ponder
- Discovery
- Organizing
Entrepreneurial Resources
Process - Implementation
- Returns Resources needed will be whitelisted

and mobilized.

Thoughts to Ponder
- Discovery
Process - Returns
Initialize process and systems in
order to materialize the idea

Thoughts to Ponder
- Discovery
Process - Returns
As the implementation goes, profit
growth is monitored

se d
cu y
Fo ilit
er s ib
om o n t
C u st
R e sp
M a rke Competitive Advantages
y & h e
r it ic
e g N I know already how act like an entrepreneur.
In t v e How do I become the best?

a t i ce
o v an
I n n rm
rfo
P e
lit y
u a
Q
Keep this in mind
It will make you an extraordinary entrepreneur.
Maslow’s Hierarchy of Needs
Customer Focused
Self-
Actualization
Focus on you customer’s
Esteem
needs and behavior.
Serving customers directly and effectively and Belongingness & Love
producing products and services desired by
customers.
Safety Needs
Physiological Needs
Presentation name goes here Integrity & Responsibility Niche Market Innovative Quality Performance
Keep this in mind
Customer Focused
Self-
Actualization
Esteem
needs and behavior.
Serving customers directly and effectively and Belongingness & Love
customers.
Safety Needs
Physiological Needs
Keep this in mind
Customer Focused
Self-
Actualization
Esteem
needs and behavior.
Serving customers directly and effectively and
Belongingness & Love
customers.
Safety Needs
Physiological Needs
Keep this in mind
Customer Focused
Self-
Actualization
needs and behavior. Esteem

producing products and services desired by Belongingness & Love
customers.
Safety Needs
Physiological Needs
Keep this in mind
Customer Focused
Self-Actualization
needs and behavior.
Esteem
producing products and services desired by Belongingness & Love
customers.
Safety Needs
Physiological Needs
Keep this in mind
Integrity & Responsibility
Protect your image,

and your brand’s Belo’s recent advertising crisis when Gigil,
a local creative agency took a stab again
on releasing another weird ad aimed to
A solid reputation for honesty and capture attention.
dependability to good customer service

and excellent product quality
Customer Focused
Presentation name goes here Niche Market Innovative Quality Performance
Keep this in mind
Niche Market
Do bulls-eye targeting! Is there a type of carbonated drink that

Pepsi Co. and Coca Cola haven’t
offered yet?
Targeting a specific group of customers
who have identifiable but very narrow
range of product or service interests and
compromise
Customer Focused
Presentation name goes here Integrity & Responsibility Innovative Quality Performance
Keep this in mind
Innovative
Always be different.
Taking inventions or innovations developed
elsewhere and put them into use
Caveat: It requires marketing, sales, and

organization.
With the emergence of digital ads, YouTube differentiated with
Leverage on technology to innovate an extremely unique way of customizing an ad per audience.
Customer Focused
Presentation name goes here Integrity & Responsibility Niche Market Quality Performance
Keep this in mind
Quality Performance
Be the best in the competition.
Should not accept anything less than

the highest-quality performance
Customer Focused
Presentation name goes here Integrity & Responsibility Niche Market Innovative
Next Topic
Fields of Expertise Comparison

(versus employment)

Fields of Expertise
SOCIAL ENTREPRENEUR
one who takes advantage of the country’s social profit

problems and turn them to profitable institutions
with the intention of helping the disadvantaged
community rather than making profit.
people planet

Fields of Expertise
SOCIAL ENTERPRISE
people planet
profit

Fields of Expertise
SOCIAL ENTERPRISE
people planet profit
An enterprise employs jeepney Rubber tires are converted into The company sells its products to
drivers who lost their job during household products such as paying customers with a profit.
the pandemic. outdoor tables and plant holders
10% of the net profit of the
They create recycled materials company are distributed to all
from rubber tire jeepney drivers + a monthly
salary.

Fields of Expertise
TECHNOPRENEUR
an entrepreneur who puts technology as

the core of his or her business model.

Fields of Expertise
INTRAPRENEUR EXTRAPRENEUR
an entrepreneur in a large company or an entrepreneur who hops from one

corporation who is tasked to think, company to another to act as innovation
establish, and run a new big idea or champion, providing creative and
project. efficient solutions.

Fields of Expertise
EXTRAPRENEUR
an entrepreneur who hops from one

company to another to act as innovation
champion, providing creative and
efficient solutions.

Fields of Expertise
Ice Cream Industry
entrepreneur

Fields of Expertise
Ice Cream Industry
Flavor innovations
entrepreneur
Process
innovations
Other product
innovations
intrapreneurs

Fields of Expertise
Ice Cream Industry

EXTRAPRENEUR
entrepreneur entrepreneur
entrepreneur

Entrepreneurship VS Employment
Advantages and Disadvantage
Employees Entrepreneurs
• GROWTH IN CAREER
• LEAVE BENEFITS
• INDEPENDENCE
• GUARANTEED INCOME
• FLEXIBLE WORKING HOURS
• FIXED WORKING HOURS
• ABILITY TO EARN
• LESS RESPONSIBILITY
• CHANGE AND EXPLORATION
• STRESS
• DEPENDENCY
• INVESTMENT
• LIMITED INCOME
• LONG WORKING HOURS
• LIMITED DEVELOPMENT SCOPE
• FINANCIAL INSTABILITY
• JOB SECURITY
• RISK

Entrepreneurship VS Employment
Advantages and Disadvantage
Employees Entrepreneurs
Risk Management
Risk of losing the Risk of financial loss but

position/job and not achieve doesn’t have to rely on anyone
financial stability. for professional validation and
financial growth.

Asynchronous Task
Instruction:
Access the UST Blackboard and assign yourself to a group.

There are 4 groups, each group would have 8-9 members.
Primary Task: WW1 (50 points)
Interview, research, and create an article about a currently running business that
thrived during the pandemic.
Subtask: Article should be converted as well into a deck (PPT) for presentation purposes.

Yup, I know… another pdf to browse and
review.
But don’t worry! We’ll just cover a few parts

on Chapter two for your midterm quarter
exam!
Opportunity Seizing
Opportunity Screening
Opportunity Seeking
3’s of
opportunity
The Many Sources of
Opportunity
Macro-Environmental Sources
seeking
-------
Industry and Market Sources of Opportunities
opportunity
-------
Consumer Preferences
Consumer Piques
Consumer Perceptions
-------
Other Sources of Opportunities

Before I actually seek opportunity and
conceptualize a business idea, what kind of
mindset and attitude should I have?
ENTREPRENEURIAL MIND FRAME
------------------------------------------------------------------
Allows the entrepreneur to see things in a very positive and
optimistic light.
Danger
危机 Wéijī or Crisis
Opportunity
ENTREPRENEURIAL HEART FLAME
------------------------------------------------------------------
The surging passion to find fulfillment in the act and process of
discovery.
Is wanting something so much

that a person would be willing
to devote one’s self totally to
the quest.
ENTREPRENEURIAL GUT GAME
------------------------------------------------------------------
Total involvement of the entrepreneur in the exciting game of
business, demanding the keenest of intuitive abilities and the
strongest intestinal fortitude.
GUTS
Ability to sense without using the five senses. Being able to withstand adversity.
This is INTUITION. The ability to jump to insightful This is COURAGE. It enables the entrepreneur to
conclusion without doing rigorous process of plunge into difficult ventures with all the traps and
thinking. pitfalls. Fearlessness. Thinks anything is attainable.
The Many Sources of
Opportunity
-------
Consumer Piques
-------

-------

Types
MACRO
ENVIRONMENT
Of
Environment
MICRO
ENVIRONMENT
MACRO
ENVIRONMENT
INCLUDES THE FOLLOWING
1. SOCIAL AND CULTURAL

ENVIRONMENT + DEMOGRAPHS
2. POLITICAL AND LEGAL
ENVIRONMENT
3. ECOLOGICAL ENVIRONMENT
4. ECONOMIC ENVIRONMENT
5. TECHNOLOGICAL ENVIRONMENT
Demographics and cultural dimensions
that govern the relevant
entrepreneurial behavior.
Beliefs
Taste and behaviors
Traditions and customs
Example:
Trend towards healthier food choices
- More healthy product offerings are demanded
by customers
Check this out!
McDonald’s offer different menu

on different countries. They adapt
to different local culture/taste.
It governs business practices as well as
the permits, approvals, and licenses
necessary to operate the business
laws
rules
regulations
Example:
Tax exemption for 13th month pay

- Increased purchasing power leading to higher
retail sales.
Supply and Demand
Import and Export
Foreign exchange rate
Purchasing power
Example:
ASEAN INTEGRATION 2015

- Enterprises could expand to other ASEAN
markets
NEW CLARK CITY
The growing awareness in the world
today makes this factor more and more
important for countries and industries.
Save the Planet advocacies
Example:
Increase usage of eco-bags and other

eco-friendly containers
- Opportunity to start an advocacy for a greener
operation
Technology leads to the
commercialization of new
products.
The nature of technology used for production of

goods and services is an important factor
responsible for the success of a business firm.
Example:
Increased usage of smartphones

- Greater utility of apps to place orders which
may expand market reach.
The Many Sources of
Opportunity
-------
Consumer Piques
-------
Industry and Market

Sources of Opportunities
-------

MACRO
ENVIRONMENT
Types
Of
Environment
MICRO
ENVIRONMENT
What is micro-environment?
Resource availability and usage
MICRO
What do we consider
“micro-environment?”
The micro environment is the

MARKET and INDUSTRY that an
entrepreneur will enter.
ENVIRONMENT
1. Suppliers of Inputs
2. Customers
3. Employees
4. Competitors
5. Public
All these 5 elements of the

micro-environment play a vital role on
providing OPPORTUNITIES but also
THREATS to a certain start-up business.
MICRO
ENVIRONMENT
Suppliers provide businesses with
Suppliers the materials they need to carry
out their business activities.
If a business employs staff without
Employees motivation, skills or experience it

will affect customer service and
ultimately sales.
These are your rivals which
compete with the firm in market
Competitors and resources.
Indirect Competitors
Offers different product but with

similar benefit.
Competitors
Direct Competitors
(two types)
Offers the exactly the same
product.
Who is your direct competitor?
Any group that has an actual or
potential interest in or impact on a
Public company’s ability to achieve its
objective
Design © Marc Lauder de Guzman, UST-SHS

The people who buy and use a
Customer firm’s product and services are an

important part of external micro-
environment.
Note: Customers have different

preferences and dislikes.`
Weird Customer Listerine, for instance, was invented in the
nineteenth century as powerful surgical
Perception! antiseptic. It was later sold, in distilled form,
as both a floor cleaner and a cure for
gonorrhea.
Until in 1920s when it was used commonly by

consumers to cure bad breath or chronic
halitosis.
MICRO-LEVEL:
Industry Sources of Opportunities
Defining an Industry provides many opportunities.
One way to analyze an industry is according to product types and according
to functions.
How do I get
opportunities/business idea
by looking at the competitors
VS within an industry?
VS
YES! I got it!
By looking at the products and services

that they already have!
The idea is to offer something that they

ALL do not offer yet. BRILLIANT!
VS
The Many Sources of
Opportunity
-------

-------

-------
Consumer Piques
Consumer Preference Consumer Dislike Consumer Perception
_________________ _________________ _________________
Taste of a particular Things that irritate Sometimes, product is
group of people. customer. There is change by the way
Ex. Clothes people wear, food opportunity in knowing consumers perceive
they eat, music they listen to. what customers don’t them.
want. Convince the customer that
Ex. Providing Solutions the product is the one.
MICRO-LEVEL:
Consumer Preference, Piques, and
Perceptions
We all hated traffic!
So a solution was given to us in a business

idea form.
See next slide!

Macro Environment
Social and Cultural
Political
Environmental
Economical
Technological
Micro Environment Piques

Customers Preferences
Suppliers Perception
Industry and Market Source
Competitors
Employees
Public
This is a concept map to summarize OPPORTUNITY SEEKING

The Personal Screen
-------
screening
Opportunity Screening Matrix
-------
opportunity __The Pre-Feasibility Study__

Market Potential
Technology Assessment and Operations Viability
Narrowing choices down to a few Investment Requirements and
Production/Servicing Cost
promising opportunities Financial Prospects
First step to Opportunity is by simply
asking yourself if the business
opportunity is something you want to
venture on with full effort.
PART 1:
Personal Screen
THE PERSONAL SCREEN
------------------------------------------------------------------
In screening opportunities, the entrepreneur first has to consider
his or her preferences and capabilities.
Do I have the drive to pursue this Will I spend all my time, effort,
business opportunity to the end? money to make this business
work?
Will I sacrifice my existing lifestyle,
endure emotional hardship and
forego my usual comforts to
succeed?
Part 2 Pre-Feasibility Study is the most scientific
method of understanding the potential
Opportunity Screening of your business.
How do you assess the market potential

of a business?
Market Potential
Estimated number of possible customer who might avail your product or services.
1. Segment the Market
Not everyone is going to be your customer. Businesses should describe who their specific
customers are.
You can start by asking- “Are they mainly..” 1. Male or Female? Or both?
2. Kids? Teens? Adults?
3. Grade school? High school? College?
4. Rich? Middle-class? Or Impoverished?
2. Assess competition
Market potential is also affected by the number of establishment serving a target market.
The individual strengths of each competitor should also be profiled.
3. Estimated Market Share
Projected Market Share- “EDUCATED GUESS”
Example: Are you confident that you can get 50% of the market? Or just 10%
How much money is needed to start the business.
3 Investment Requirements
Pre-Operating Cost Production/Service Facilities Working Capital
Cost related to the Long-term investment Needed to operationalize
preparation of the business. for the business. the business
• Pre-feasibility study • Cash

• Market Research • Investment in land, • Inventories
• Product Development machinery, • Accounts Receivable
• Initial Promotional Cost equipments, etc.
• Organizational • Renovations (If The owner must have cash
Development to cover the inventories to
leasing) be purchased and other
operating expenses
Investments:
Total Investment
(Including Pre-operating, Production Facility, and Working Capital)
P 1,200,000.00
Assets (Equipments, Building, Inventories, Cash)
P 800,000.00
Monthly Sales
P 650,000.00
Monthly Net Income after Tax

P 110,000
Financial Forecast
Refers to the monetary transactions that the business is expected to engage in.
Financial Ratios
𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
𝑃𝑎𝑦𝑏𝑎𝑐𝑘 𝑃𝑒𝑟𝑖𝑜𝑑(𝑅𝑂𝐼) = How fast will you recover the investment.
𝐴𝑛𝑛𝑢𝑎𝑙 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 𝑎𝑓𝑡𝑒𝑟 𝑇𝑎𝑥
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑇𝑎𝑥 How much profit you earn for every peso
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝑆𝑎𝑙𝑒𝑠 =
𝑆𝑎𝑙𝑒𝑠 of your sales.
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑇𝑎𝑥

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐴𝑠𝑠𝑒𝑡𝑠 = How efficient the assets are used to bring
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 in profits
PART 3:
Opportunity screening
Matrix
12 R’s of
Opportunity Screening
Macro-
Environment
Ex. Water Hyacinth used as an Establish a textile manufacturing

alternative material for weaving. business.
Is it a good
opportunity for me?
Relevance to Vision, Mission, and
Relevance
Objective of an Entrepreneur.
To
What is your personal vision of who you will be ten years
for now?
Will chasing the opportunity bring you closer to
v.m.o
achieving your long term goals?
Do you want to be known as a programming genius? Or

just simply a billionaire?
It is important that
Resonance
opportunities you choose to
pursue matches your values.
To values What virtues do you possess?

It is best to choose an opportunity
close to your hobby and enhances
Reinforcement your competencies.
Of
entrepreneurial If you like computers, why not engage in computer-
enabled or computer-based business which will build
interest your knowledge further on hardware and software.
Is the revenue potential of the
business worth it for your effort?
It should not be grounded only on the quality of the

opportunity but also with the capability of the future
Revenues
enterprise to strategize and develop a saleable product
of service.
Responsiveness to customer
needs and wants.
If your chosen opportunity fits well with unfulfilled

customer desires, then you will have better chance of
Responsiveness
succeeding.
Opportunities that can be expanded by
being branched out, or franchised have
Reach
good potential for rapid growth.
Will the opportunity allow your enterprise to have a wide

market reach or geographic coverage?
The wider the range of possible
products, the more attractive is the
Range opportunity.
Will the opportunity allow the entrepreneur to come up

with a wide range of related product and services?
Revolutionary products/service
Revolutionary make the old ones obsolete.
Impact Is the opportunity going to be the next “big thing” in the

market? Will it be a game changer?
Opportunities with low cost of
production but higher prices would
most probably yield the higher return
returns
on sales and return on investments.
Returns are not only monetary. It can be the fame

attained by the enterprise of the recognition awards for
the entrepreneur.
Relative
The best opportunities are the
ones easy for you to implement
but hard for others.
Ease of Example: If you come from a family of tailors, then you
implementation would have an easier time than most in setting up a

tailoring/clothing shop.
The limitated resources of a
Resources start-up entrepreneur puts

some limit to the pursuance of
required
an opportunity.
Instead of putting up a big enterprise, why not start with
a small one? Even Henry Sy started with a small shoe
store.
Some opportunities are riskier since
they are untested and they have
risks
smaller market. More risk, less
attractive.
Some opportunities are too cyclical or seasonal and

expertise may be hard to come by.
Why use the 12 r’s?
To narrow down the many opportunities.

Conceptualizing
_______________________________
Product
seizing
Service
-------
Designing
opportunity Prototyping
Testing
-------
The Final Stage Implementing
Organizing
Financing
-------
Creating a
Positioning statement Quality VS Price Positioning of Competitors
It is advisable for an entrepreneur to look

at the competitors to compare attributes
and features.
Getting into this leads the entrepreneur

to come up with a
Main Value Proposition.
What should be the main identity of the

product I want to develop?
What is my product’s POSITIONING?

Designing
Designing means that the entrepreneur must render the concept and
translate it into its very physical and very real dimensions
(measurement).
Now that I know my product’s

positioning, I can start creating a
design for it.
Designing, Prototyping, and testing

Prototyping
Built based on the design. Made for actual testing by

the entrepreneur and potential customers.

Testing
Using the prototype for focus group discussions,

surveys, product demo, and the like.

Prepare
_______________
Concept pitch
Pitch

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Introduction to Entrepreneurship

What do you know about Entrepreneurship?

We were doing a whole lot better than them.

1950s Poorest Country in the World

1950s Poorest Country in the World

So they leveraged on industrial products.

Government imposed monopoly

Government imposed monopoly

Presentation name goes here

Self-employment of any sort

Activity that involves identifying

Presentation name goes here 19

Self-employment of any sort

Activity that involves identifying

Presentation name goes here 19

Presentation name goes here 19

Presentation name goes here 19

Presentation name goes here 19

Entrepreneurs create value by introducing

Hence, they become change agents of the world

Sets up a Takes financial Generates Creates new,

Presentation name goes here 19

Creative Thinking Consider things in a fresh perspective. Innovative Decisions

Thought process provoked by variables and

Presentation name goes here 22

Presentation name goes here 03

Presentation name goes here 03

Presentation name goes here 03

- Returns Resources needed will be whitelisted

Presentation name goes here 03

Presentation name goes here 03

Presentation name goes here 03

In t v e How do I become the best?

Serving customers directly and effectively and

Integrity & Responsibility

Protect your image,

A solid reputation for honesty and capture attention.

dependability to good customer service

Do bulls-eye targeting! Is there a type of carbonated drink that

Caveat: It requires marketing, sales, and

Be the best in the competition.

Should not accept anything less than

Fields of Expertise Comparison

Presentation name goes here

one who takes advantage of the country’s social profit

Presentation name goes here

Presentation name goes here

people planet profit

Presentation name goes here

an entrepreneur who puts technology as

Presentation name goes here

an entrepreneur in a large company or an entrepreneur who hops from one

Presentation name goes here

an entrepreneur who hops from one

Presentation name goes here

Ice Cream Industry

Presentation name goes here

Ice Cream Industry

Presentation name goes here

Ice Cream Industry

Presentation name goes here

Presentation name goes here 16

opportunity The Pre-Feasibility Study