ENTREPRENEURSHIP

REVIEW NOTES

IMPORTANCE OF ENTREPRENEURSHIP:
o Key economic driver
o increase the level of knowledge, competence and improve the quality of life
o Alternative career path
o Economiv growth
o Job creation
o Innovation
COMPETENCIES FOR ENTREPRENEURIAL SUCCESS:
o Integrity - An entrepreneur knows what is good and right. Do what is best for everyone and do not act without thinking.
o Conceptual Thinking - Review outcome projects in order to understand where problems occurred. Check the impact of the proposed solution to both customers and employees.
o Strategic Thinking - An entrepreneur finds ways to do things faster or at less costs.
o Decisiveness - An entrepreneur switches to an alternative strategy to reach a goal. It generates new ideas and innovative solutions.
o Customer Relations Service - A good entrepreneur knows what his or her customer needs in order to satisfy them and have a long term relationship.
STARTING POINT TO ENTREPRENEURIAL SUCCESS
o Start to be on your own - After planning, the entrepreneur will start to open his business using the capital he has.
o Explore the business environment. Evaluate the business plan using knowledge in SWOT analysis.
o Be in control. Be responsible for controlling not only all transactions but also people management.
o Have a good accountant or trusted financial adviser. Hire an accountant or financial adviser who may help in transactions related to funds or money.
o Seek the advice of professionals. Seek advice from professionals to help prepare necessary documents like business permits, trade name registration, sanitary permits, etc.
OPPORTUNITY SPOTTING AND ASSESSMENT:
o Opportunity Seeking - Being coined as the “innovative opportunity seekers” in the business industry, entrepreneurs are equipped with a spirit of inquiry that will help them decide which
products or services are most likely needed in the marketplace.
o Opportunity Screening – the process of evaluating and filtering potential business ideas base don their feasibility and viability.
o Opportunity Seizing - The stage of determining the critical success factors of succeeding in the industry, while also being cautious about other factors that cause failure to some businesses.
SOURCES OF OPPORTUNITIES:
A. External/Macroenvironmental Sources - Any enterprise, company, or organization is not alone in its business environment. It is always surrounded by an array of factors and forces
that help in shaping opportunities but also pose present threats to the company. (Demographic, Technological, Economc, Ecological, Socio-cultural , Political and Legal)
B. Internal Microenvironmental Sources - Internal sources pertain to those factors that can be controlled by the management. It includes factors of resources available that affect
individuals and businesses. (Customers, Suppliers, Resellers, Competitors, General Public)
C. Industry and Market Disparities - Certain disparities in the market may take place in the form of regulations, deregulations, constant changes in supply chains, and other structural
problems.
D. Consumer Preferences and Interests - These preferences refer to the interests or tastes of individuals. When products eventually become outdated, consumers’ changes in perception
can subsequently kill sales.
E. Technological Discoveries and Advancements - Continuous advancements in technology can be the source of highly innovative opportunities in the business industry.
FEASIBILITY STUDY - is made by delving into the main aspects of the project, and it is conducted to assist an entrepreneur in determining whether or not a business opportunity must be pursued
or not.
FACTORS TO ENSURE VIABILITY:
o Market Potential and Prospects - Market potential pertains to the size of the market or consumers who will avail of the product or service.
o Assessment of Technology and Operations Viability - In the entrepreneurial aspect, technology assessment or technology evaluation takes into account the various implications of a
technology or innovation for a certain business activity, which often involves technology selection.
o Investment Requirement and Production Costs - In all businesses, it is important for an entrepreneur to assess the amount of money needed to be able to start a business opportunity.
o Financial Forecast and Determination of Financial Feasibility - In all businesses, it is important for an entrepreneur to assess the amount of money needed to be able to start a business
opportunity.
MARKET RESEARCH - design, collection, and analysis of relevant data, arranged in a systematic way, aimed at providing a solution to a specific marketing problem
MARKET RESEARCH METHODOLOGIES:
o Qualitaitive Research Method - This type of data-gathering research method is performed through observation techniques and unstructured questioning. It gives answers to the whys and
hows of the decision-making processes of various consumers.
o Quantitative Research - obtains the information that can be easily and quickly counted and statistically analyzed.
IDENTIFYING CUSTOMER/MARKET NEEDS is the method of determining what a client needs from a product.
STEPS IN IDENTIFYING MARKET NEED:
1. Gather raw data
2. Interpreting data
3. Organizing the data
4. Reflect the process
BUSINESS PLAN – A written description of the business that you will establish in the future. It can be written before or during the first few years of the enterprise. This is to guide the entrepreneur
on which strategies would be most beneficial for the enterprise to take.
EXECUTIVE SUMMARY summarizes the necessary details of the business plan for its readers. It is timesaving for readers, for they are able to get the gist of the business plan.
VALUE PROPOSITION - is a business or marketing statement indicating the worth that the business offers to customers.
UNIQUE SELLING PROPOSITION - a marketing strategy that focuses on special features of a product or services which enable them to stand out from the competition and attract customers
MARKET SEGMENTATION - the act of forming prospective buyers into particular groups that share one or more similar characteristics and who will respond similarly to their product needs. A.K.A.
Differentiated Marketing
MARKETING MIX - is a special tool used in the implementation of any business, which is made up of seven distinct but interconnected variables.
THE 7PS OF MARKETING:
1. Product - refers to any item that is produced to satisfy the needs and demands of a certain group of people.
2. Place - a location in any business process where the aspects of management, product storage, logistics, processing of orders, and inventory control are being made available.
3. Pricing - is the only revenue-generating element in the marketing mix. That is why it is firmly linked with the revenue streams of any business.
4. Promotion - Its primary aim is to attract the customers’ attention, as well as provide useful information about the product to build interest and loyalty.
5. People - is regarded as a primary key toward a successful implementation of marketing strategies of any business.
6. Packaging - can make or break the success and growth of a business, so it is important to innovate packaging that fulfills its essential functions. A great deal of making purchase decisions
is allotted to color testing and psychological manipulation.
7. Positioning - able to occupy a unique spot in the minds of the consumers that will help them in making a final purchase decision.
PRODUCT CLASSIFICATIONS:
o Tangible products - are those items that have actual physical presence. The benefits of these products can be evaluated based on visual comparisons.
o Intangible Products - are those items that have no physical presence and can only be felt indirectly.
COMMON PRICING STRATEGIES:
o Cost-Plus Pricing - primarily focuses on the total costs attributed to producing the product of service. It is otherwise known as a mark-up pricing strategy because businesses increase the
prices of their products before they are sold again to the end consumers.
o Competition-Based Pricing - pays attention to the prices currently existing in the market. This strategy focuses on the prices set by the competitors in the industry as its point of reference.
o Value-Based Pricing - This pricing strategy is used by businesses that focus on the consumers’ responses towards a product or service offered.
o Price skimming - is a strategy used by businesses when introducing new products or services to the market. This pricing strategy is executed by setting high prices for new products and
services.
o Penetration Pricing - In contrast to price skimming, the main objective of a penetration pricing strategy is to obtain market share. Products and services by businesses are typically offered
at low prices, effectively drawing out the competition in the market.
FIVE MAIN COMPONENTS OF PROMOTIONAL MIX:
1. Advertising - This promotional method is used to create awareness and deliver information to the target audience. Traditional forms of media include television, newspapers, magazines, and
billboards.
2. Personal Selling - One of the effective ways to persuade potential customers is through personal selling. Generally, this method is adopted by salespersons in managing personal customer
relationships.
3. Sales Promotions - Sales promotions include both media and non-media tactics used to increase the demand towards the products and/or services offered by any business.
4. Public Relations and Sponsorships - To maintain a sustainable relationship between the business and its customers, public relations tactics are executed. This component of the promotional
mix is used for attaining long-term effects.
5. Direct Marketing - allows any business to communicate freely with its customers. Marketing techniques such as mobile messaging, distribution of flyers or catalogs, and outdoor advertising
are a few examples of direct marketing.
ELEMENTS OF PACKAGING:
o Visual Elements - During the process of package designing, it must be remembered that consumers assess product packaging in their own different ways. One major component of this
element is graphics, which include image layout and typography.
o Color combinations - Color is a key element of design because it is an important consideration in brand awareness and recognition. An excellent color combination has the ability to make a
product stand out from the competition.
o Informational elements - The inclusion of necessary product information is also important in product packaging. This has to be communicated to the consumers to help them in making the
right purchase decision.
RECRUITMENT METHODS:
A. Internal recruitment - is the process of filling vacant employment positions by the employees who are already working within the business premises.
a. Promotions - It aims to shift any employee from a lower position to a higher one with more responsibilities attached, remuneration, and ranking privilege.
b. Transfers - It involves the shifting of an employee from one department to another, depending on the qualifications of the position involved.
c. Employee Referrals - With this approach, current employees may refer people who they think are suitable or fit for the job. This is adopted by most businesses, for it saves cost
and time compared to hiring people from various external sources.
B. External Recruitment - This type of recruitment refers to the hiring of employees outside the business. Applicants seeking opportunities have no connection with the internal affairs of the
business.
a. Employment Agencies - are typically run by public, private, and government sectors. These sectors maintain a database where vital information of qualified candidates are stored
and kept.
b. Advertisements - Recruiting through advertisements is very popular and much preferred by a lot of employers. Job vacancies are thoroughly described and announced through
different print and electronic media.
c. Walk-ins - This direct form of external recruitment is done when prospective candidates are invited to apply for any job vacancy. In this case, a definite date, time, and venue of
the interview are given to the candidates without the need to submit their applications in advance.
BRANDING is the process of creating a name, symbol, or design that identifies and differentiates a product from other products.