Entrepreneurship 12

Lesson 1: Entrepreneurship
Entrepreneurship - is derived from the French verb entreprendre, which means "to
undertake". This refers to those who undertake the risk of new enterprises.
- The word entrepreneur is a person who seeks a profitable opportunity and takes the
necessary risks to set up and operate a business.
- is a process of actions of an entrepreneur who is always in search of something new
to exploit new Ideas into gainful opportunities by accepting the risk.
Why Entrepreneurship?
• Being your Own Boss
- Self-management is the motivation that drives many entrepreneurs.
• Financial Success
- Entrepreneurs are wealth creators
• Job Security
• Quality of Life
- Starting a business gives the founder some choice over when, where, and how to
work.
Relevance of Entrepreneurship to the Society
1. Development of Managerial Capabilities
-It helps in identifying and developing managerial Capabilities as entrepreneurs
2. Creation of organizations
- Entrepreneurs assemble and coordinate physical, human and financial resources and
direct them towards achievement of objectives through managerial skills.

Lesson 2: Other factors to pursue Entrepreneurship;

1. Personal Traits
a. Initiative e. Persuasion - Persuade / influence
b. Proactive – Identifying opportunities People
c. Problem Solving F. A planner
d. Perseverance – Thrive through g. Risk taker
difficulties

2. Environmental factor
a. Political C . Legal system
b. Climate d. Economic and social conditions

Lesson 3 : Entrepreneurial Ideas

- Creation of an entrepreneurial ideas leads to the identification of
entrepreneurial opportunities, which in turn results in the opening of an
entrepreneurial venture.
Essentials in Entrepreneur’s Opportunity Seeking
• Entrepreneurial Mind Frame - This allows the entrepreneur to see things in a very
positive and optimistic way
• Entrepreneurial Heart Flame - Entrepreneur's driven passion, they are attracted to
discover satisfaction
• Entrepreneurial Gut Game - This refers to the ability of the entrepreneur on being
intuitive.
Sources of Opportunities
1. Changes in the Environment
- changes happen in the external environment. External environment refers to the
physical environment, societal environment, and industry environment
1.1. Physical Environments
a. Climate b. Natural c. Wildlife

1.2 Social Environmental

a. Political Forces C. Sociocultural Forces
b. Economic Forces D. Technological Environment

1.3 Industry Environment

a. Competitors d. Employee
b. Customers e. Government
c. Creditors f. Suppliers

2. Technological discovery and advancement

- A person with entrepreneurial interest sees possibility of business opportunities in
any new discovery
3. Government’s trust, program, and policies
- programs, and policies of the government are also a good source of ideas
4. People’s interest
- hobbies and preferences of people are rich source of entrepreneurial ideas.
5. Past experiences
- Worked in a particular field may lead to the opening of related business enterprise.
Forces of Competition Model - is also known as the "five forces of competition", An
industry environment in a competitive environment.
Competition - is the act or process of trying to get or win something.
Five Forces competing within the industry
1. Buyers - one that pays cash in exchange to your good services
2. Potential new entrants – the one who enter something
3. Rivalry among existing forms - Rivalry is a people or groups are competing
with each other
4. Substitute Products - Substitute anything that takes the place or function of
another.
5. Suppliers - provide something that is needed or wanted.

Lesson 4 : Recognize and understand the Market

Value Proposition (VP)
- summarizes why a consumer should buy a company's product or use its service.
Basic Elements:
• Target Costumers • Name of the Product enterprise/company
• Needs/Opportunities • Name of the

Unique Selling Proposition (USP)

- This refers to how you sell your product or services to your customer. You will
address the wants and desires of your costumers
- Some tips
• Identity and rank the uniqueness of the • Very Specific
product or services character • Keep it simple and specific

Unique Value Proposition and Value Proposition are used to explain why prospect
customers buy each products and services.
A. Target Market
- Market Targeting aims to determine the buyers with common needs and
characteristics.
- It involves excluding those who don't fit your criteria to focus your marketing
efforts
Market Segmentation
• Geographic Segmentation
Variable to consider:
a. Climate c. Culture
b. Dominant Ethnic Group d. Density (either rural or urban)

• Demographic Segmentation -divided based consumers.

Variables to consider:
a. Gender e. Education
b. Age f. Religion
c. Income g. Ethnic Group
d. Occupation

• Psychological Segmentation- divided in terms for customers think and believe.

Variables to consider:
a. Needs and Wants e. Knowledge and Awareness
b. Attitudes f. Brand Concept
c. Social Class g. Lifestyle
d. Personality Traits

• Behavioral Segmentation- divided according to the customers behavior pattern.

Variables to consider
a. Perceptions d. Benefits
b. Knowledge e. Loyalty
c. Reaction f. Responses

B. Customer Requirements
 - Customer requirements are the specific characteristics that the customers need
from a product
There can be two types of customer
requirements:
1. Service Requirement 2. Output Requirement

Service Requirement - These are the Intangible things or products

- It includes all aspects of how a customer expect to be treated while purchasing a
product
Output Requirement - Tangible thing or things that can be seen.
C. Market Size
- It is the approximate number of sellers and buyers in a particular market.
- Strategic marketing research from reliable sources using the following method.
• First step is to estimate the potential market
• Estimate the customers who probably dislike to buy your product
or avail the services.
• Third step is for the entrepreneur to estimate the market share

Lesson 5 : Data Collection

Data Collection - most valuable tool of any type of research study. Inaccurate
data collection may cause mistakes and ultimately lead to invalid results.
Tips in Gathering Data
• Organize collected data as soon as it is • Regularly run experiments or collect
available data
• Know what message you want to get • Challenge your assumptions
across and then collect data that is • Set reasonable expectations
relevant to the message • Take note of interesting or significant
• Collect more data data
• Create more data

Three different data collection techniques

1. Survey
- most common way to gather primary research with the use of questionnaires
or interview schedule.
2. Interview
- Most reliable and credible ways to get relevant information from target
customers. It is typically done between the researchers and the respondents to
ask pertinent questions
- Personal interviews are the traditional method of conducting an interview. It
generates highest response rates in survey research.
- Telephone interviews are less expensive and less time consumine but the
disadvantages are that the response rate is not as high
3. Focus Group Discussion
 - an excellent method for generating and screening ideas and concepts. It can be
a moderated group interviews and brainstorming sessions

Lesson 6 : The 7P’s of Marketing Mix

Marketing Mix - is a set of controllable Land connected variables that a company
gathers to satisfy a customer better than its competitor.
- The original 4 P's stands for product, place, price and promotion.
- Eventually, three elements have been added, namely: people, packaging and
positioning to comprise the 7 P's.
1. Product - refers to any goods or services that are produced to meet the
consumers wants
- Goods can be categorized into business goods or consumer goods. Business
Goods ( Raw materials, equipment, supplies) and Consumer Goods ( Food,
Clothing, Electronics)
- Services – a service business provides a skilled service, personal labor, or
expertise instead of a physical product. Consumer Services (Hair Styling,
Food delivery, Health Care) and Professional Services ( legal services,
logistics, accounting)
2. Place represents the location where the buyer and a seller exchange goods. It
is also called as the distribution channel.
- Channel 1 – contains two stages between producer and consumer – a
wholesaler and consumer. Wholesaler typically buys and stores large
quantities of several producers’ goods
- Channel 2 – contains of intermediary. In consumer market that is typically
retailer — a company that buys products from a manufacturer
- Channel 3 is called a "direct-marketing” channel, since It nas no Intermediary
levels.
3. 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
4. Promotion refers to the complete set of activities, which communicate the
product, brand or service
5. People are your team, a staff that makes it happen for you, your audience, and
your advertisers
- People are the ultimate marketing strategy. People are one of the most
important elements of the marketing mix today.
6. Packaging is a silent hero in the marketing world. This refers to the outside
appearance of a product
7. Positioning refers to a process used marketers to mage in the minds of a target
market. Solid positioning will allow a single product to attract different
customers

Lesson 7 : Developing a Brand

Brand Name - is a name, symbol, or other feature that distinguishes a seller's goods
- Your brand is your customers' overall experience of your business.
 - Brand strategy is a long-term design for the development of a popular brand
- According to Pickton and Broderick in 2001, branding is a strategy to
distinguish products and companies and to build economic value
- Branding is a powerful and sustainable high-level marketing strategy
Commonly used Branding Strategies
• Purpose - "Every brand makes a promise”. According to (Allen Adamson), it's not
just making a promise that separates one brand from another, but having a
significant purpose.
- According to Business Strategy Insider, purpose can be viewed in two ways:
a. Functional - success in terms of fast and profitable reasons.
b. Intentional - fulfillment as it relates to the capability to generate money
• Consistency – avoid things that don't relate to or improve your brand.
- Consistency aids in brand recognition, which fuels customer loyalty.
• Emotion - There should be an emotional voice, whispering “Buy me". This means
you allow the customers to have a chance to feel that they are part of your brand.
• Flexibility- flexibility allows you to adjust and differentiate your approach from
your competition.
- According to Kevin Budelmann, "Effective identity programs require
sufficient consistency to be identifiable, but sufficient variation to keep things
fresh and human"
• Employee Involvement -your employees should be well-versed in how they
communicate with customers
• Loyalty is an important part of brand strategy.
- The emphasis on a positive relationship between you and your existing
customers sets the tone for what potential customers can expect.
• Competitive Awareness - Do not be frightened of competition.
- Take it as a challenge to improve your branding strategy

Lesson 8: Developing a Business Plan

Business Plan –describes the various activities involved in opening and operating a
new entrepreneurial venture.
- provides procedural guidelines before the opening
- serves as the roadmap of the entrepreneur
MAJOR SECTIONS OF A BUSINESS PLAN
•Introduction
•Executive Summary
•Environmental Analysis
•Business Description
•Organizational Plan
•Production Plan

= Introduction
• Proposed name of the Business
- reflect the business identity and image
- promote the philosophical valves
- attract or influence the target consumers
• Address of the Business
- have email address
• Name of the Owner or owners
- Sole Proprietorship- only one owner
- Partnership - names of the partners, including their liabilities,
- Corporation - names, nationalities, and addresses of incorporators •
•Description of the Business
- description about the product or service
- Brand Name, logo, Target Market, Location, etc
•Location of the Business
- Proximity to the target consumers
- Distance from the source of raw materials
- Etc.
•Funding Requirement and source
- estimated initial cost of the business venture
-