LESSON 1: INTRODUCTION TO

ENTREPRENEURSHIP EXISTING CONCEPT/EXISTING BUSINESS

ENTREPRENEUR
● originates from French word “entreprendre”
means “to undertake”
ENTREPRENEURSHIP
● particular field of practice or process
● is a process of actions of an entrepreneur
who is always in searching of something
new to exploit new ideas into gainful
opportunities by accepting the risk and
uncertainty of the enterprise.
setting up of branches/franchises
Type of Enterprises According to Size (MSME)
an MSME in the Philippines is defined as
any business activity or enterprise engaged in
industry, Agri-business and/or services that has: (1)
An asset size (less land) of up to php 100 Million:
and (2) an employment size with less than 200
employees.

Salient Features of Entrepreneurship

★ An Art of Correct Practice
Entrepreneurship continues to grow
and develop which contributes towards the
enhancement of the enterprise and
improvement of the way entrepreneurial
activities/business activities are carried out.

★ Wealth Creating Venture

Creates wealth to generate benefits
for everyone.

★ Provides valuable goods and services

Assures the selling of only valuable
goods and services which highly satisfies the ● Micro
target market. Below 3 million. 1-9 employees

★ Entails Opening and Managing the Self - ● Small

Owned Enterprise.
Personally open and manage one’s
own enterprise with a goal in mind
★ Risk taking Venture
Business risk is natural and is
something that is expected to emerge once a
business materializes.
Entrepreneurship and Ordinary Small Business
Type of Enterprises According to Concept
NEW CONCEPTS AND/OR A NEW BUSINESS
creating or stumbling on a new idea or
concept, and creating or inventing something
radically new.
3-15 million. 10-99 employees
● Medium
15-100 million. 100-199 employees
● Large
Above 100 million. 200 above employees
RELEVANCE OF ENTREPRENEURSHIP TO AN
ORGANIZATION
1. Develop of managerial capabilities
2. Creation of organization
3. Improving standard of living
4. Means of economic development
IMPORTANCE OF ENTREPRENEURSHIP

EXISTING CONCEPT AND/OR NEW

BUSINESS
creating a new business based on the
existing concept.

According to Aduana (2016),
entrepreneurship makes the following contributions
to the lives of the Filipinos, the local community
and the Philippine economy:
IMPORTANCE TO THE FILIPINO
➔ It provides guidelines in their wealth-
creating ventures.
➔ It helps improve their financial and social
life.
➔ It helps broaden their creativity.
➔ It helps make their lives happy, fruitful, and
successful
IMPORTANCE TO THE LOCAL COMMUNITY
★ It provides employment in the community.
★ It creates new demand in the market.
★ It makes a substantial contribution to the
raising and collection of taxes.
➔ It facilitates the movement of the factors of
production.
➔ It creates new business opportunities.
➔ It promotes a peaceful and loving
community.
➔ It increases constructive competition.
IMPORTANCE TO THE PHILIPPINE
ECONOMY
❖ It encourages competitiveness and
challenges entrepreneurs to keep improving
their products and services.
❖ It helps find an entrepreneurial niche in the
world market.
❖ It helps hasten the economic recovery
process of the Philippines during financial
crackdown.
❖ It facilitates the smooth flow of money in
the local market.
❖ It assists the national government in its
desire to have favorable economic ratings in
the world market.
CHARACTER TRAITS COMMON TO
SUCCESSFUL ENTREPRENEURS
● OPPORTUNITY-SEEKER
Ability to perceive and discern a
favorable situation or condition and convert
it to a business opportunity.
● PERSISTENT
Being able to take all the necessary
actions in order to accomplish a goal,
despite obstacles or difficulties along the
way.
● COMMITMENT
Unfailing dedication to the enterprise
and acceptance with full responsibility for
everything it involves, including problems.
● EFFICIENT AND QUALITY ORIENTED
Aiming for excellence and
commitment to the delivery of quality of
goods and services. It means striving to do
things better, faster, and at a lower cost.
● RISK-TAKER
Taking moderate or calculated risks
in the business. It means the willingness to
take risks but avoiding the extremes of
avoidance and reckless imprudence.
● GOAL SETTER
Involves formulating long-term and
short term goals, as well as clear,
measurable, time bounded, and realistic
objectives
● INFORMATION SEEKER
Entrepreneur’s effort to obtain
information on and from clients, suppliers,
and competitors. It involves seeking out
experts and consultants to give technical and
management advice.
● BEING SYSTEMATIC IN PLANNING
AND MONITORING
Formulate alternatives and monitor
implementation in order to apply the
necessary actions and remedies to situations.
● SELF-CONFIDENT
Entrepreneurs have a strong belief in
themselves, and their capabilities to get the
job done, to complete difficult tasks, and to
meet challenges.
● PERSUASIVE AND POSITIVE
NETWORKER
Adeptness in leading and having
social skills in order to influence and
persuade people
ENTREPRENEURIAL SKILLS
❖ Cognitive Skills
 Refers to the mental ability to learn
new things and generate new ideas, and
express knowledge in both oral and written
forms.
➔ Ability to understand written
materials
➔ Ability to learn and apply
new information
➔ Ability to solve problems
➔ Ability to create new ideas
➔ Ability to innovate new
products
❖ Technical Skills
For entrepreneurs these skills relate
to their knowledge and proficiency in a
specialized field. Technical skill must be
studied and learned in the most practical
way, “hands-on”.
➔ Information technology
➔ Business plan preparation
➔ Technical writing skills
➔ Marketing
➔ Management and finance
❖ Interpersonal Skills
Relationship and interaction of the
entrepreneur to the following; workers,
suppliers, creditors, prospective customers,
and other members of business community.
➔ ✓ Skills in verbal communication
➔ ✓ Skills in listening
➔ ✓ Skills in leading
➔ ✓ Skills in negotiating
ENTREPRENEURIAL CORE COMPETENCY
LESSON 2: JOB OPPORTUNITIES OF
ENTREPRENEURSHIP AS A CAREER
JOB OPPORTUNITIES - Career
➢ BUSINESS CONSULTANT
Provide management consulting to
help organization improve their performance
and efficiency.
➢ SALES MANAGER
Responsible for leading and guiding
a team of sales people in an organization.
➢ RESEARCH AND DEVELOPMENT
DIRECTOR
Someone who understands business
concepts, systems, procedures and practices.
➢ FUNDRAISER
Someone who raises money for a
specific purpose and meant not to make
profit but instead for maintaining the
organization or toward the purpose for
which it was created.
➢ TEACHER
These educators train their students
to solve business problems, plan for future
growth, and strategize how to run a business
efficiently and effectively.
➢ TALENT RECRUITER
Someone whose job is in sourcing,
attracting, recruiting, interviewing, and on-
boarding employees to an organization.
➢ BUSINESS REPORTER
Someone who can write articles is in
a prime position to take the lead on covering
a local business beat.
➢ NEW VENTURE CREATOR
Someone who launch a company,
start a new venture in a family enterprise or
commercializing a technology
LESSON 3: DEVELOPING A BUSINESS
PLAN: BUSINESS OPPORTUNITIES,
ENVIRONMENT & RECOGNIZING
POTENTIAL MARKET
Business Opportunities
Finding problems and giving solutions will
help open your minds into different business ideas.
Think beyond the box!
Business Concepts
An idea for a business that includes basic
information such as the service or product, the
target demographic, and a unique selling
proposition that gives a company an advantage over
competitors.
● Target Customer:
Who is the target customer in what
situation?
 - The Business opportunity should have a
● Product:
How would your customer define your
product?

● Value Proposition:
What is it for the target customer?
How does your product uniqueness help?

● Distribution:
How do you deliver the benefit to the sufficient market.
customer?

● Positioning: The Environment of Entrepreneurial Venture

What will you excel at? What will be
adequate?

Product Opportunity
Exist when there is a gap between what is
currently on the market and the possibility for new
or significantly improved products that result in
emerging trends.

How to recognize opportunities? Environmental Scanning:

Recognizing opportunities is a Cognitive
process.
Creating opportunities is a Social Process.
- Is the careful study of various factors
influencing the business.
- It is the process by which organizations
monitor their relevant environment to
identify opportunities and threats affecting
their business.

Three Layers of Environment: New Business

❖ Physical Environment:
- The first layer of the environment
- It is composed of the natural
The entrepreneurial Process of creating a new elements that are inherent in the
Venture Earth.
Sources of Entrepreneurial Ideas:
❖ Changes in The Environment:
★ Industry Environment
★ Societal Environment
★ Physical Environment
❖ Technological Discovery and Advancement
❖ Government’s Thrust, Programs, and Societal Environment:
Polices
❖ People’s Interest
❖ Past Experience
Societal Environment
Spotting Business Opportunities:
- Spotting an opportunity is the only first step
but to convert the idea to a business requires
good execution skills. “Business
opportunities are like buses, there’s always
another one coming.” -Richard Branson
Social Forces:
Are elements in society resulting from
human interactions that can influence the thoughts,
behavior, attitude, actions, and even the beliefs and
customs of the people.
Political Forces:
Usually comprising of the political parties,
political systems, and other related political groups
that substantially influence the political stability of
a country.
Cultural Forces:
Refer to the integrated characteristics of a
group of people or ethnic group in a particular
activity. It includes religion, language, beliefs,
customs, and education.
★ Creditors
refer to banks, financial institutions, and
financial intermediaries engaged in the
lending of money to the borrower usually
for a fee or charge in the form of interest.
★ Employees
workers of the business who are highly
responsible for the production of goods or
delivery of services to the consumers.
★ Competitors
produce, sell or render product or services
which are similar to those of the business.
★ Customers
buyers of goods or services produced or
rendered by the business.
★ Suppliers
refer to individual persons or companies that
provide the required materials, parts, or

Economic Forces:
direct or indirect effects on the
entrepreneurial venture. (interest rates, inflation,
monetary policies, income and exchange rates.

Legal Forces:
directly involved in the legislation and

interpretation of laws and ordinances directly

affecting the business.

Technological Forces:
Refer to the trends and developments in
computer and information technology that have an
impact on business.
services to the business.
SWOT ANALYSIS:
Industry Environments:
involves specifying the objective of the
business venture or project and identifying the
★ Government
internal and external factors that are favorable and
refers to the system or institution that
unfavorable to achieve that objective.
handles the affairs of a particular country.
● Strength:
 refers to the strong attributes or To deliver products that solve your
capabilities of the business that provide TARGET CUSTOMERS’ problems, you must first
great advantage in exploiting the business IDENTIFY MARKET PROBLEMS.
opportunity.
MARKET IDENTIFICATION
● Opportunities: Strategic marketing approach and process
are business situations in the form of that is intended to define the specific customer of
products or services that must be exploited the products.
of their potential in terms of profit and
growth. Three Strategic Marketing Approaches:
● Market Segmentation
● Weakness: designed to divide the market into
are poor attributes or deficiencies small segments with distinct needs,
that give advantages to the business. characteristics, or behavior.
What to consider in market segmentation?
● Threats: ➢ Accessibility of the market segmentation
are possible external events in the ➢ Size of the market segmentation
environment that may provide harm to the ➢ Distinction of the market segment
business.
Market Targeting
Forms and Nature of Entrepreneurial Venture: ➢ Aims to determine the set of buyers with
Form of Business: common needs and characteristics.
★ Sole Proprietorship ➢ They are the market segment that the
One person only entrepreneurial venture intends to serve
★ Partnership
Two or more person Evaluate each market segment:
★ Corporation ➢ Size and growth of the segment
At least 5 but not more than 15 ➢ Structure of the segment
➢ Capability of the Business
Nature of Business: ➢ Selecting the target market segment or
➔ Merchandising segment to serve
Engaged in buying and selling of products or goods
Entrepreneurial Marketing Strategies
➔ Service ● Individual or one-on-one Marketing
Rendering service to customers Products are tailored to the needs of
individual consumers.
➔ Manufacturing
Producer of goods and services. ● Segmentation Marketing
● Differentiated Marketing
➔ Hybrid Several Segments are covered and
Combine type of business entities products are designed to suit the specific
needs of a particular segment.
IDENTIFYING THE MARET NEED:
● Concentrated or niche Marketing
Only one or few segments are
covered, but the product is designed for the
majority of the consumers in the segment
market.

● Mass or undifferentiated Marketing

Products are mass produced for the
whole market where consumers are not
differentiated.

Market Positioning
process of arranging a product to occupy a
clear, distinct and desirable place in relation to other
competing products in the mindset of target
consumers. (Kotler & Armstrong, 2013)
The process of determining the market position of
the product includes the following steps:
1. Determine if the product is truly
differentiated from competitors in terms of
value and benefits.
2. Evaluates the advantages or benefits of
every possible market position
3. Decides on the market position
Market Research
Is a critical component when you’re
launching a product, trying to improve your existing
service, or when you’re just looking to be a step
ahead of your competitors.
There are 5 things that market research can
do for you in the process of product development &
business growth:
1. It is crucial for a better understanding of
your customers
2. Knowledge about your competitors, and
how they approach the market
3. Testing your product before launch
4. You won’t go out of business
5. Business growth
2. Financing the venture. How much would you
need to finance your new venture?
3. Customer. Who’s going to buy?
4. Competition. How can I do better than my
competitors?
5. Economic Mood: Where are consumers' mind
right now? What are the concerns that affect their
spending behavior?
6. Timing. Is your business seasonal or not?
7. Marketing of goods and services. What is your
marketing strategy?
8. Continuing Cash Flow. Do you have a proper
financial plan?
9. Basic Feasibility. Is it legal? Can the product or
service work?
PROFITABILITY
-A business‘ ability to gain profit from its business
activities and investment.
-Measurement of business efficiency – and
ultimately it‘s success or failure.
-A business's ability to produce a return on an
investment based on its resources.

LESSON 4: DEVELOPING A BUSINESS

PLAN: SCREENING PROPOSED
SOLUTIONS AND SELECTING THE BEST
PRODUCT/SERVICE THAT WILL MEET
THE MARKET NEED
Screen Solution/s:
❖ VIABILITY
The ability to survive or persist; the
quality of being able to happen or having a
reasonable chance of success
Measured by its long-term survival
and its ability to sustain profits and continue
doing business over a period of time. CUSTOMER REQUIREMENT
1. Objectives Refers to characteristics or specifications
2. Manpower or human resource that should be present in a product for it to be
3. Management must capitalize in the deemed desirable by the consumer.
use of new technology TYPES
1. Service Requirement - Intangible aspects of
“HOW VIABLE IS MY BUSINESS IDEAS?” purchasing a product that a customer expects
1. Uniqueness. How do you stand out from others? to be fulfilled.
 2. Output Requirement- mostly the tangible
characteristics, features or specifications that
a consumer expects to be fulfilled in the
product.
Three Levels
1. Must Haves - These are the bare minimum
requirements expected by the customers; if
fulfilled customers will be not show any
exceptional appreciation but if not fulfilled,
the customer will show dissatisfaction.
2. Satisfiers - There are the requirements that
customers express their desire for, explicitly.
If you offer better or more of these satisfiers,
then the customers will appreciate it more
and will be more satisfied
3. Delighters - These are the extras or the add
ons.
LESSON 5: THE BUSINESS PLAN
BUSINESS PLAN:
● It is a formal statement or document that
contains the plan for the business that is to
be launched or for the expansion of the
business.
● It contains a set of business goals and the
plan for reaching those goals.
● Lay outs a written roadmap for the firm
from each of a marketing, financial, and
operational standpoint.
FOCUS OF BUSINESS PLAN
● entrepreneur who must set a navigational
course.
● investors and cautious financiers.
● the managers and staff of the organization
so that they will know the strategies and
programs of the enterprise.
IMPORTANCE OF BUSINESS PLAN
Business plan should be written to:
● Improves business ideas and concepts
● Guides actions
● Increase odds of success
● Requirement by other parties
● Basis for evaluation
CONTENT OF BUSINESS PLAN (7)
1. EXECUTIVE SUMMARY
A one page overview of the business and
highlights the important points of each section of
the business plan.
2. COMPANY BACKGROUND
● Introduction
● Background of the market problem
● Rationale behind the creation of the
company
● Business Description
● Nature and background of the business
● Also include the registrations, location, and
premises
● Mission and Vision, Objectives, Core
Values
● Vision -where the business is headed and the
future state that it plans to be.
● Mission-what the business does
3. MARKET ANALYSIS
● describes the business environment and
mention where the business is categorized
● how the industry performing in the present
and the projection for the future.
● includes identification and analysis of the
various competitors of the business.
4. MARKETING PLAN
● a plan that the business will deploy,
including how the products and services will
be priced, promoted and distributed.
● contains key marketing targets and strategies
for delivering on these targets.
5. ORGANIZATIONAL PLAN
Describes the business structure, the
organization chart, the qualifications of the
management, and the responsibilities of all involved
in the business.
6. OPERATIONAL PLAN
discusses how the products and services will
be produced, as wells as the personnel, purchasing,
processes, machines, and equipment to be used.
7. FINANCIAL PLAN
contains the financial statements that will
show the profitability, liquidity, and stability of the
firm, as well as the sources of funding • costing and
financial projections
LESSON 6: MARKETING MIX
Marketing Mix
 refers to a mode, means, or tool used by the ▪ Selling Price = Cost of goods sold + incidental
entrepreneur to position the product in the target expenses + desired profit percentage
market segment.
7Ps of Marketing 2. Flexible Mark-up Method
● Product ▪ special form of cost-plus pricing
It is something that gives satisfaction ▪ mark-up that is variable depending on the basis of
to the consumer; be it need or want. several considerations instead of a constant margin.
● Tangible Goods
● Intangible Services 3. Less-than-Cost Pricing
THREE LEVELS OF PROD UCT ▪market-minus price policy
❖ Augmented Product ▪ based on the theory that it is desirable to sell
Additional benefits goods at prices below the cost.

❖ Actual Product 4. Perceived-Value Pricing

Meeting the actual consumer need ▪ by estimating how many people are willing to pay
for the products.
❖ Core Product
Meeting the psychological need 5. Price Maintenance
▪ believes in price stability
Four general types of product ▪ the set price kept as is
-Breakthrough products
-Differentiated Products 6. Breakeven Pricing
-Niche Products ▪ by determining first the breakeven point of the
-Copycat Products product

Four Classification of Consumer Products 7. Sealed Bid Pricing

Convenience Products ▪ determined based on the contract bid
Goods frequently bought by the consumer
8. Competitive Pricing
Shopping Products ▪ based on competitors’ prices
Goods less frequently bought by the consumer
Pricing Approaches
Speciality Products 1. Cost based approach
Luxury goods a consumer is willing to buy ▪ setting of prices on the basis of costs
Price=direct cost+overhead costs+profit margin
Goods not Required
Unknown or not willing to buy goods 2. Buyer based approach
deals with consumer perceptions or behavior as
Description: explain what a product is and why it’s bases for determining the selling price of a product
worth purchasing or service.
1. perceived value pricing
based on the buyer’s perceptions of
the value of the product or service.

2. price-quality relationship pricing

observation that consumers associate
Pricing high price with high quality and low quality
monetary value a customer pays in exchange for a with low price.
merchandise or service
3. loss-leader pricing
Pricing Policies practice of setting low prices on
1. Cost-Plus Pricing selected products which will result in the
▪ most commonly used generation of less profits
 4. odd-numbered pricing
practice of setting price even below
peso amounts.
5. price lining pricing
practice of selling merchandise at a
limited number of predetermined price
levels.
3. Competition based approach
refers to the setting of prices based on what prices
are being charged by competitors.
1. Going-rate pricing
adapts a price based on the
competitor’s prices
2. Sealed bid pricing
sets its price which is thought to be a little
lower than the competitors.
Place
Right Location refers to that one which will bring
the highest possible benefits to the firm
Benefits of a very Good/Strategic Location
1.Attract lots of customers
2. Helps improve sales
3. Attract new customers
4. Maintain loyal customers
5. Get to know your customers better
Promotion
communicating information between the
company and potential buyers to influence buying
attitudes and behavior.
ADVERTISING
consists of any form of paid, non-personal
presentation of ideas, goods, or services by an
identified sponsor
SALES PROMOTION
stimulates interest, trial, or purchase by final
customers
PUBLIC RELATIONS
activities of an organization, person or
institution directed toward one or more groups of
people, such as employees, consumers, dealers and
stockholders, for the purpose of creating goodwill
and an understanding of its policies.
PUBLICITY
dissemination of news and information
about a person, product, service, idea or institution
through mass media in order to create impressions
to the public
PERSONAL SELLING
This involves direct contact/ communication
made by representatives of business firms to induce
the purchase of merchandise or services by oral
persuasion.
People
-everyone who is involved in the product or service
whether directly or indirectly
-Remember, people buy from people that they like, Step 3: Communicating and Delivering the Chosen
so the ATTITUDE, SKILLS and APPEARANCE Position
OF ALL STAFF NEED TO BE FIRST CLASS.
-Some ways in which people add value to an
experience, as part of the marketing mix:
-Training
-Personal selling
-Customer Service

Physical Environment OR PACKAGING

• An activity of designing & producing the
container for a product.
• As clothing is for humans, packaging is for
products.

Functions of Packaging
1. Protection & preservation
2. Product information
3. Promotion of corporate identity
4. Forms part of sales promotion
5. Adds to the appeals of the product

Effective Packaging
1. Creative & Unique
2. Appropriate colors, fonts, easy to read labels.
3. Use of images.
4. Appropriate language, with necessary legal
information.
5. Easy to access and doesn’t look tampered
6. Simple

Process or Positioning
• the way the product is defined by consumers on
important attributes
• the place the product occupies in consumers’
minds relative to competing products.

Positioning Strategies
1. Positioning by specific product attributes
2. Positioning by benefits
3. Positioning for user category
4. Positioning for usage occasion
5. Positioning against another competitors
6. Positioning against another product class

Steps to Choosing and Implementing a Positioning

Strategy
Step 1: Identifying Possible Competitive
Advantages: Competitive Differentiation.

Step 2: Selecting the Right Competitive Advantage:

Unique Selling Proposition (USP).