ENTREPRENEURSHIP

A N I N T R O D U C T O RY L E S S O N

JHIZEL CEREZO
Entrepreneurship, Finance and Marketing
AGRIBUSINESS
FRANCHISE MODEL
ENTREPRENEURSHIP

• A French loan word

• The art and science of converting ideas into marketable
goods and services that helps improve the quality of
man’s life.
• It involves the systematic utilization of four (4) essential
elements: man, money, materials and machines. (now, 12
M’s of BPOM, see annex A)
• As a science, it involves coordinated, arranged and
systematized knowledge and as an art, it uses a great deal
of knowledge of the elements and principles of design.
 ENTREPRENEURSHIP

• the process of identifying and starting a new

business venture; sourcing and organizing
resources and taking the risks and rewards
associated with it.
• ELEMENTS OF ENTREPRENEURSHIP
• NEW VENTURE /innovated product, service, new idea
• RESOURCES –sourced and organized (man, money, machine, method,
materials, etc see 12 M’s BPOM)
• TAKE RISKS AND REWARDS
ROLE OF ENTREPRENEURHSIP

1. CREATES EMPLOYMENT
ROLE OF ENTREPRENEURHSIP

2.CONTRIBUTES TO A MORE
EQUITABLE DISTRIBUTION OF
INCOME
ROLE OF ENTREPRENEURHSIP

3. CREATES SOCIAL BENEFITS

ROLE OF ENTREPRENEURHSIP

4. UTILIZES AND MOBILIZES

RESOURCES
ROLE OF ENTREPRENEURHSIP

5. REDISTRIBUTES INDUSTRIAL
ACTIVITIES IN THE COUNTRYSIDE
ROLE OF ENTREPRENEURHSIP

6.GENERATES FOREIGN EXCHANGE

ROLE OF ENTREPRENEURHSIP

7. NURTURES TALENTS
ROLE OF ENTREPRENEURHSIP

8. ESTABLISHES INDUSTRIAL
LINKAGES
ROLE OF ENTREPRENEURHSIP

9. ENCOURAGES HEALTHY COMPETITION

 ROLE OF ENTREPRENEURHSIP

10.PROMOTES THE USE OF MODERN

TECHNOLOGY
ROLE OF ENTREPRENEURHSIP

11. ENCOURAGES RESEARCHES AND

STUDIES and INVENTIONS OF
EQUIPMENT AND MACHINES
IN A NUTSHELL

“There are business opportunities everywhere.

It is the enterprising people among us who are
able to think of setting up a business no matter
how small.”
“These business enterprises contribute to the
country’s economic growth as well as to one’s
own personal growth.”
ANONYMOUS
 THANK YOU!

Vision is the art of seeing the invisible….

ANNEX A: 12 M’S OF BPOM

BPOM stands for Business Planning, Operations and Management

12 M’s
1. Macro and micro trend analysis
2. Market study
3. Method
4. Man
5. Machineries and equipment
6. Materials
7. Moment
8. Media
9. Money
10. Material evidences
11. Material environment
12. Move plan (Move out or move up)
BRIEF EXPLANATION OF 12 M’S

1. Macro-micro trends analysis. This is a situationer report

pertaining to the demographic, natural or geographic, social,
technological, economic and politico-legal aspects of the industry
where the enterprise is operating. ( (it is also called industry and
competitive analysis). Includes: 5 force and SWOT analyses
2. Market aspects. Include the 4 Ps (now 7Ps of marketing mix):
product, price/pricing, place and promotion, (other 3, people,
process and physical evidence), customer behavior, 9 IMC’s
(integrated marketing communication channels: advertising,
personal selling, direct marketing, sales promotions, public
relations, guerilla marketing, viral, digital marketing and
relationship marketing)
BRIEF EXPLANATION OF 12 M’S

3. Methods. This includes operational strategies and programs,

stages or process flow of operation, includes the Manual of
Operations, physical set up.
4. Man. Includes the organizational chart, managerial and staff
employee functions, duties and responsibilities, skills and
competencies, HR policy manual.
5. Machineries and equipment. Models and output/productive
capacity, ICT device/computer version and features,
specifications and operating capacity of machines and equipment
(POS terminals).
BRIEF EXPLANATION OF 12 M’S

6. Materials. Include raw materials sources, suppliers, origins,

distribution channels, supply chain management, logistics,
inventory management and systems.
7. Moment. This section includes discussion about operation or
production schedule, project implementation/Gantt chart, activity
flow with highlights (period of completion), PERT-CPM analysis.
8. Media. This section includes communication channels
involving social media (FB, instagram, twitter, blogs and forums
and website content) and corporate communication processes:
upward, downward and horizontal communication within the
organization.
BRIEF EXPLANATION OF 12 M’S

9. Money. Includes financing and financial management such as

sourcing of funds (savings, credit and stock financing), budgeting (sales,
operations and expense budget preparation), forecasting or projections
(sales and profits planning), ratio analysis, financial statements (BS, IS,
cash flows), break even analysis, payback and NPV analysis.
10. Material Evidences. This contains documents supporting the
business plan. It includes: owner’s /proponents’ curriculum vitae,
organizational chart, legal documents like business permits and BIR tax
forms, bylaws and articles of partnership or corporation (if partnership or
corporation), research studies, survey results, bibliographical references
for journal and book researches. This also includes record keeping and
database management
BRIEF EXPLANATION OF 12 M’S

11. Material environment. Includes disposal management

systems, sustainability concerns and studies, bio-diversity, green
marketing, ecological balance issues, corporate governance
issues affecting the geographical/natural environmental aspect of
business operations.
12. Move plans. This involves move out (exit strategy) or move
up (innovation strategy) or both, that is spin off operations and
reengineering operations leading to modernization. This aspect
includes risk/loss concerns and contingency measures.
4 TYPES OF BUSINESS ENTRY
1. INHERIT A BUSINESS
2. BUY AN EXISTING BUSINESS
3. ADOPT A FRANCHISE
4. START A BUSINESS. This needs:
a. FEASIBILITY STUDY (new entrepreneurial venture)
b. BUSINESS PLAN

Five Types of Business, Enterprises and Industries

1. Extractive industry – open sea fishing, mining, logging
2. Genetic industry – hog raising, agribusiness, aquaculture, cattle raising,
plantations,
3. Manufacturing – production, finishing,
4. Merchandising – wholesale and retail selling of merchandise
5. Service industry – personal, entertainment, healthcare, travel, hotel
THANK YOU