Module 1 • The Skill of Reflection- examining

how you observe, think, feel, react,

Entrepreneurship- The act of creating a reason out, make assumptions, draw
business or business while building or conclusions, evaluate outcomes, and
scaling it to generate a profit. act upon what you believe.
Entrepreneur- An individual who • The Skill of Experimentation-
establishes a business to make a profit, runs trying out an approach or a solution
it even through the risks, and enjoys most and then learning from it. involves
rewards. taking a concrete action to test an
approach or several possible
5 Levels of Entrepreneurial Environment: approaches.
1. Employee • The Skill of Creativity- being open
2. Self-Employed to new perspectives or other ways of
3. Entrepreneur looking at things that are better or of
4. Investor higher quality. It is about unleashing
5. Philanthropist your ideas, concepts, or approaches
that have not been tried before. It
Intrapreneur vs Entrepreneur allows you to innovate so as to
Intrapreneur- Innovate within the business differentiate your product or service.
• The skill of Empathy- the ability to
• Less Risky put yourself in the shoes of another
• Access To Resources person to understand how that other
• Job Security person thinks and feels. Enabling
you to better relate to that person. It
Entrepreneur- Build their own business
enables you to tailor your product or
• Increased Freedom service offerings to the needs and
• More Responsibility wants of your customers.
• Higher ROI (Return on Investment) • The Skill of Play- involves injecting
some fun, excitement, and joy in
Similarities what you are doing as you go
• Innovative through your tasks. It is about
• Ambitious appreciating and developing a sense
• Leaders of fun and adventure as you pursue
your goals.
Common Traits of an Entrepreneur
Creativity Through Design Thinking
• Proactive
Design Thinking- A thinking process
• Agents of Change
commonly used by designers to solve certain
• Risk Takers
problems related to products and services.
• Sharp Eye on Opportunities
• Sociable Design Thinking Process
• Networkers
1. Empathize- To empathize means to
• Decisive put yourself in the shoes of the other
• Balanced person for you to know how the
• Innovative other person thinks or feels about a
Core Traits of an Entrepreneur given situation.
2. Define- Identifying a specific need
• Leaders for a particular group is called a
• Communicators design challenge. You have to think
• Specialist of how to solve a specific problem
• Problem Solvers that they have, or to respond to what
they felt they need to improve their
Core Competencies- The resources and living conditions.
capabilities that comprise the strategic 3. Ideate- Involves generating and
advantages of a business. developing new ideas to address the
Core Competencies of an Entrepreneur needs of the people.
 4. Prototype- Involves creating a
sample product or service offering
that incorporated features and
qualities desired by the target users
or customers.
5. Test- You will now try out or sell the
product or service to an initial group
of users or customers.
2 Types of Entrepreneurships
• Commercial Entrepreneurship-
Income-generating enterprises that
are established mostly for the
purpose of generating profits.
• Social Entrepreneurship- Income-
generating enterprises that are
established with more emphasis on
social impact for the poor and other
disadvantaged groups.
Types of Entrepreneurial Careers in the
Philippines
• Corporate Entrepreneurship- Also
called “Intrapreneurship”. It involves
creating new products, ventures, or
organizational renewal within large
organizations.
• Start-up Entrepreneurship-
Involves the creation or setting up of
a new small business.
• Buying a Franchise- Involves a
franchise that minimizes some
business risks for an entrepreneur.
Franchising involves a plan of
distribution where an individually
owned business is run as a part of a
large chain.
• Buying a Small Business- The
buyer typically takes over full
ownership of the business.
• Social Entrepreneurship- Uses the
business methods of a commercial
enterprise to generate profit but it is
more concerned in helping social
cause or improving the welfare of
disadvantage groups, such as the
unemployed, farmers, fisherfolk,
urban poor, and others.
Module 2
Entrepreneurial Process
• Finding
• Evaluating
• Developing
4 Phases of Entrepreneurial Process
1. Identify and Develop the Business
Opportunity- The entrepreneur must
be alert to business possibilities that
may come from various sources. You
need to carefully screen and evaluate
the alternative opportunities.
2. Develop a Business Plan- You need
to prepare a good business plan to
secure the defined opportunity.
3. Determine the Resources
Required- You must determine the
resources needed to address the
opportunity. You need to acquire
those resources in a timely manner,
also taking into account the quality
and cost involved.
4. Management or Implement the
Enterprise- You are now ready to
implement the business plan. In
operating your business, you need to
sharpen your management skills by
ensuring that your plans are carried
out in an effective and timely
manner.
Two Main Approaches for Opportunity
Identification
1. Finding Approach- It involves
scanning the environment for
information to provide ideas for
starting up a business. This approach
assumes that business opportunities
exist “outside” of the entrepreneur.
2. Building Approach- It involves
creating a business opportunity that
does not exist in the environment.
The business idea originates or
builds on the entrepreneur’s
creativity, talents, skills, prior
knowledge and experience, personal
network, and internal resources.
Macro Environmental Factors
• Sociocultural- Changes in social
conditions such as educational needs,
housing needs, food preferences,
leisure, lifestyles.
• Technology Advancements-
Innovations in technology and
inventions on products and service.
• Economic Trends- Changes in
economic conditions that directly
affect the business climate such as
labor, costs, unemployment rates,
interest rates, inflation rates,
imports/exports.
 • Industry Trends- Changes in
growth or decline of specific
industries belonging to
manufacturing, services, and
agriculture sectors.
• Environmental or Ecological
Factors- Risks related to natural
disasters, health pandemic
• Political Situation- Changes in
government policies and regulatory
standards that directly affects the
business.
Micro Environmental Factors
• Competitor Moves-
Increase/decrease in number of
competitions, tactics of competitors
that impact the business.
• Suppliers- Increase/decrease in the
number of suppliers that affect
production and inventory levels.
• Increase of Substitute Products-
Entry/exit of substitute products that
affect competition.
Screening Business Opportunities to
Select the Business Venture
Opportunity Screening- The process of
assessing potential business opportunities
and selecting the best opportunity to invest
in. A compelling business opportunity must
be viable and doable.
Viability- The business has the ability to
start, grow and survive. It factors the
following:
• Market Aspects
• Production Sourcing
• Competition
• Financial Potential
Feasibility- It is achievable, practical, or
workable given the resources and time you
have to implement it.
Opportunity Attractive Matrix
1. Alignment with Personal Values,
Interest, Resources- If the business
concept is aligned with your values,
abilities, passion, interests, and
family or friends’ support.
2. Market Potential- If there are
enough customers who will buy your
product or service that will earn a
profit so that the business can run
continuously.
3. Operating Potential- If the process,
methods, technology are available
for the product or service.
4. Financial Potential- If the business
will generate a profit-expected
revenues would be at least enough to
cover the expenditure costs; if the
working capital requires is minimum
and can be met.
5. Threat From Competitors- If the
presence or sudden moves of
competitors would not severely
threaten your business.
6. Potential Damage from Unforeseen
Risks- If certain unforeseen events
such as those related to weather,
security, and public health would not
severely harm your business.
Opportunities for Home-based Businesses
Home-based business- Becoming popular
with the increasing number of individuals
who are self-employed and working at
home.
Developing the Business Plan: Start with
the Marketing Plan
Business Plan- A strategic plan on how you
are going to implement your chosen venture
to make it successful.
Marketing Plan- A plan of the strategies
that you will use to know your customers
and how to attract them to buy your product
or service.
Potential Market- These are individuals
and organizations in a particular market who
have some level of interest in the product.
Unique Selling Proposition (USP)- A
statement that describes the most compelling
attribute of your product or service that sets
it apart from your competitors.
Value Proposition (VP)- A definitive
statement that clearly identifies the benefits
or value that a product or service can offer to
the customers.
Identifying the Target Market
Target Market- Allows you to differentiate
your marketing strategies across customer
segments.
Market Segmentation- The process of
dividing the market into small homogenous
groups.
Process of Segmenting Targeting
Customers
1. Decide what general market or
industry you wish to pursue- You
need to select the industry where you
want to do your business.
2. Divide the market into smaller
groups based on characteristics of
the consumer or buying situations-
Characteristics of the consumer,
Buying Situation, Select segments or
segments to target, and Develop a
plan for integrating the marketing
mix.
Conducting a Market Research
Market Research- The process of
gathering, analyzing, and interpreting
information about the products or services.
Steps in Conducting a Market Research
1. Define the purpose or objectives of
the market research- You must be
able to define the specific objectives
of your market research to clearly
outline what you want to accomplish.
2. Gather data from secondary
sources- Secondary sources of data
are useful in market research and can
be freely accessed through the
internet, government agencies,
business magazines, newspapers
articles, and libraries.
3. Gather data from secondary
sources- Primary data means new
information gathered that may be
through the conduct of interviews,
focus group discussions (FGDs),
observations, experimentations, and
networking.
4. Analyze and interpret the results-
The results of your primary data
collection should be evaluated and
interpreted in a careful manner.
Interviews- This is a form of person-to-
person communication for data gathering
that may be done either in face-to-face or
virtual conference methods.
Focused Group Discussions (FGDs)- This
usually involves three of five persons who
form a panel where the same set of questions
are asked to each member/target customer.
Surveys- This method requires preparing a
questionnaire that is given to a wider
number of respondents/target customers.
Module 3
Marketing Mix- An integrated approach to
strategies in offering and delivering the
product/service to your target customers.
7Ps
• Product
• Place
• Price
• Promotion
• People
• Packaging
• Positioning
Product- Indicates a description of the
product or service that you are selling. You
must decide on what makes your product or
service distinct from that of your
competitors.
Place- Pertains to the distribution strategy of
your business. It involves your marketing
strategies such as the choice for the location
of your store or service are, the manner of
delivering or transporting the product or
service to your target customers, and the
timing of product or service delivery.
Price- A marketing decision that combines
market research with financial analysis.
The Elements that the entrepreneur needs
to consider before setting the price
• Costs- You need to determine the
costs directly related to your product
or service.
• Markups- You need to research on
the standard markup for products in
specific industries by reading
business publications or by asking
suppliers.
• Margins- Refers to the revenues
earned after paying the cost of goods
sold (COGS).
Competitors- An entrepreneur examines the
price offered by the competitor and
compares the quality or differentiating the
factors of his product versus the competitor.
Pricing Strategies
• Cost plus pricing- Also called
markup pricing. Here, you add a
specific mark-up to the cost to
determine the selling price.
• Competitive Pricing- Also called
benchmark pricing. This is offering
prices similar to your competitors.
 • Bundling- This is offering one or
two products at a reduced price.
Price Ceiling- The most a customer will pay
for your product or service.
Price Floor- Pertains to your assessment of
how much it costs you to produce your
product or service.
Break-even Price- The price below which
you cannot sell and make the necessary
profit.
Promotion- It enables the entrepreneur to
inform potential consumers about the
product’s availability, or to educate the
consumer about the product.
3 Objectives of Promotion
1. Provide basic information about the
product or service.
2. Persuade the customers of the
benefits of your products or service.
3. Encourage customers to take action
at specific times.
People- The role of human resources in
propelling the growth of the business.
Packaging- The attributes of your product
that may be affected as it goes through the
distribution channels.
Positioning- How your product or service
offering is positioned in the minds of your
target customers.
5 main strategies upon which businesses
can base their positioning
• Position based on product
characteristics- This associates the
brand with a certain characteristic
that is beneficial to the community.
• Positioning based on price- This
aims to offer the cheapest of the most
affordable product or service in the
market.
• Positioning based on quality or
luxury- This associates the brand
with high quality or prestige such
that the customer would desire it
regardless of the price.
• Positioning based on product use
or application- This emphasizes the
particular use of the product.
• Positioning based on competition-
This uses the competition as a
reference point for differentiating the
uniqueness of one’s product or
service.
Process- The standard procedures or
systems involving internal marketing-related
activities and external marketing-related
activities.
Ways to improve the process
• Eliminate Waste- The Lean
Principles call for teams to look for
eight kinds of waste: defects, excess
processing, overproduction, non-
utilized talent, sitting inventory,
products waiting for the next step,
unnecessary moving of products and
inefficient movement of people.
• Reduce Costs- You can also help
eliminate waste and therefore
increase efficiency by reducing costs.
One way is to look for waste in the
form of duplicate or unnecessary
tasks.
• Improve Communication and
Collaboration- This approach
focuses on you as the entrepreneur
and leader, and your relationships
with people.
Branding- A brand is the name or symbol
associated with the product or service
offering that communicates messages to
target customers.
Trademarks- These are the registered
brand’s name, and they come in many forms.
Business Environment- Internal Business
Environment and External Environment
Internal Business Environment- The
factors or elements inside the organization.
External Business Environment- The
factors or elements outside the organization.
Customers- Those who patronize the
organization’s services and products.
Suppliers- Those who ensure the
organization’s continuous flow of needed
and reasonably priced inputs or materials
required for producing their goods and
rendering their services.
Stakeholder- Parties that are likely affected
by the activities of the organization.
Politico-Legal- Refers to national or local
laws, international laws, rules, and
regulations.
Porter’s Five Forces Analysis-Developed Profitability- The measure of an
by Michael Porter, to analyze the level of organization's profit relative to its expenses.
competition. It focuses on the
microenvironment factors, measures how
intense the competition is, and how
attractive the industry is.
Porter’s Five Forces
1. Rivalry among existing
competitors- Measures how
aggressive the competitors are within
the industry and how saturated the
market is with competitors.
2. Threat of substitute products-
Refers to the number of other
alternative products that can be used
by customers to replace the
company’s product offering.
3. Threat of new entrants- Pertains to
the level of difficulty to create a
similar business in the same industry.
4. Bargaining power of buyers- The
measure the degree of influence of
the buyers or customers to lower the
product prices.
5. Bargaining power of suppliers-
Measures the degree of influence of
the suppliers to command higher
prices for their raw materials.
Customer Satisfaction- The evaluation of
the product’s performance in relation to the
expectations set by the customer.
Customer Relationship Management
(CRM)- The process of building and
maintaining profitable customer
relationship.
Customer Loyalty- Relationship between
you and the customer, manifesting itself by
how willing customer is to engage with and
repeatedly purchase from you versus your
competitors.
Patent- A legal document giving the holder
exclusive intellectual property rights over an
invention.
Market Size- The total potential demand for
a product or service.
Copyright- A type of intellectual property
that protects original works of authorship as
soon as an author fixes the work in a
tangible form of expression.
Scheme- A plan, program, or policy
officially adopted and followed, as by a
government or business.