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REVIEW OF PAST
LESSON
 LEARNING OBJECTIVE:
At the end of this module, you are expected to:
1. Identify the market problem to be solved or the market
to be met.
2. Propose solutions in terms of product and services that
will meet the need using techniques on seeking,
screening, and seizing opportunities.
a. Determine the possible products or services
that will meet the need.
b. Screen the proposed solutions based on
viability, profitability, and costumer
requirements.
c. Select the best product or service that will meet the
market need.
The entrepreneurial process

ENTREPRENEURIALPROCESS
- is a step-by step procedure in establishing any kind of
business that an entrepreneur has to undergo.
It compose of FOUR ASPECTS.
FOUR ASPECTS OF ENTREPRENEURIAL PROCESS

1. OPPORTUNITY SPOTTING
AND ASSESSMENT
- Beginning and considered as most
difficult.
- Entrepreneurs take note of
interesting trends in the environment.
- Consumers are reliable sources of
opportunity information
 Other minor sources:
Feedback from the business retailers,
wholesalers, manufacturers, and the
technical people.

The entrepreneur's toughest job is to

carefully assess the opportunity through
estimation of opportunity length,
capitalization, threats, profitability

Lastly, entrepreneurs should already

think in advance how they will
position the product or service in the
market.
FOUR ASPECTS OF ENTREPRENEURIAL PROCESS

2. DEVELOPING A
BUSINESS PLAN
- Entrepreneurs should
formulate a business plan
when they have already
spotted assessed the
opportunities for the
market.
 BUSINESS PLAN 
is a comprehensive paper
that details the marketing,
operational, human
resource, financial,
strategic direction, and
tactics of the business.
FOUR ASPECTS OF ENTREPRENEURIAL PROCESS

3. DETERMINING THE CAPITAL NEEDED

It is mandatory in the
entrepreneurial
process to calculate the
resources needed to
establish the business.
FOUR ASPECTS OF ENTREPRENEURIAL PROCESS

4. RUNNING THE BUSINESS

This is the part where the
entrepreneur should use the
resources allocated for the new
venture. All aspects of the business
plan should be critically observed
from operations, marketing and
sales, human resources, finance,
and the strategy implementation.
  Scanning the marketing environment

- is the starting point of

any new venture that
involves understanding
and knowing the
complexity of the
environment.
 GENERAL RULE:

“Find the opportunity

first before coming up
with a new product or
service in the future”.
Seeking,
screening,
seizing
The 3S of opportunity spotting and
assessment is the framework that
most of the promising entrepreneurs
use to finally come up with the
ultimate product or service suited for
a specific opportunity.
An opportunity is an
entrepreneur’s
business idea that can
potentially become a
commercial product or
service in the future.
What is the importance
of Opportunity
Seeking?
S1: SEEKING THE
OPPORTUNITY
Opportunity seeking is the first and is the
most difficult process to the number of
options that the entrepreneur will have to
choose from. It involves the development
of new ideas from various sources:
It involves the development of new
ideas from various sources:
1. Macro-environmental sources
a. STEEPLED – This is a
mnemonic for sociocultural,
technological, economic,
environmental, political, legal,
ethical and demographic factors.
 Macro-environmental sources
b. INDUSTRY
- This is the source of current trend on
what is happening in the industry where
the future business will belong to.
Ex. An entrepreneur wants to engage
into rice retailing, he or she should
know the nature and the happenings of
the rice industry.
 Macro-environmental sources
c. NEW DISCOVERY OR
KNOWLEDGE
- these are new trends
that can be the core
business model of a
new venture.
 Macro-environmental sources
d. FUTURISTIC OPPORTUNITIES
These are the projected
new opportunities that can
possibly affect the new
business while it is running.
 MICRO-MARKET SORCES
a. Consumer Preferences, interest
and perception
- These are the current needs and
wants of the potential customers
that should be discovered right
away by a building entrepreneur.
 MICRO-MARKET SORCES
B. Competitors
- Recognizing and understanding
potential competitors will aid the
entrepreneur to develop a
product or service that is unique
and will surely stand out on the
competition.
 MICRO-MARKET SORCES
C. Unexpected opportunities from
customers
-Oftentimes, the most brilliant
ventures comes from the most
unexpected opportunities. It may
happen in unlikely situation, unlikely
places, and unlikely with people.
 MICRO-MARKET SORCES
d. Talent, hobbies, skills, and
expertise.
-Business opportunities do not just
come from outside forces, but also
from within the entrepreneur. The
entrepreneur’s talents, hobbies,
skills, and expertise can be a source
of business opportunity.
 MICRO-MARKET SORCES
e. IRRITANTS IN THE MARKETPLACE
SUCH AS DETERENTS, PROBLEMS,
COMPLAINTS, AND DELAYS
- entrepreneurs see opportunities
in situations where there is a
recurring problem or sometimes
when there is no more hope in
solving the problem.
 MICRO-MARKET
SORCES
f. LOCATION
- Often, entrepreneurs just
have to look at their ecosystem
and they will be able to spot a
business opportunity right
away.
• EX. School
  MACRO-ENVIRONMENTAL SOURCES
 STEEPLED ANALYSIS
- The result of the STEEPLED scan will
aid the entrepreneur in deciding what
product or services to set up and
weather this new venture will succeed
or not, it can help the entrepreneur to
check if there is a compelling business
opportunity or threat.
  

STEEPLED ANALYSIS
1. socio-cultural factors.
These factors represent a
general view of a locality’s
traditions, customs, beliefs,
norms, and perceptions.
  

STEEPLED ANALYSIS
2. Technological factors.
These are composed of
innovations of an existing
technology or an invention of a
new one mostly on applied
science and engineering
research areas.
  

STEEPLED ANALYSIS
3. Economic factors.
These factors play a vital role in the
scanning of marketing environment
because economic factors directly affect
any business venture. These factors
include income, expenses, and resources
that cost of doing business and
generating income.
  

STEEPLED ANALYSIS
4. Environmental or ecological factors.
These factors should be given much importance
in conducting a business especially when the
world has already suffered severely from human-
induced calamities. The scan of these factors will
help the entrepreneur determine if the business
he or she is entering into will comply with the
environmental standards or will just be a hazard
to people, animals, and nature.
  

STEEPLED ANALYSIS
5.Political factors.
These factors are mostly
induced by government policies
and administrations, which can
have a strong effect in the
entrepreneur’s business.
  

STEEPLED ANALYSIS
6. Legal factors.
Related with political factors,
legal factors are government
laws and regulations that can
restrict or allow business
activities.
  

STEEPLED ANALYSIS
7.Ethical factors.
These are the factors that will
serve as an entrepreneur’s
guide on how to be ethical in
running the business.
  

STEEPLED ANALYSIS

8. Demographic Factors.
These are the characteristics of
the people in the target market.
S2: Screening the
Opportunity
It is a process of
cautiously selecting the
best opportunity. The
selection will depend
on the entrepreneurs.
The 12 Rs of Opportunity Screening

1. Relevance to vision, mission,

2. Resonance to values. Other
and objectives of the
than vision, mission, and
entrepreneur. The opportunity
objectives, the opportunity
must be aligned with what you
must match the values and
have as your personal vision,
desired virtues that you have
mission, and objectives for the
or wish to impart
enterprise you want to set up.
The 12 Rs of Opportunity Screening

3. Reinforcement of 4. Revenues. In any

Entrepreneurial Interests. How
does the opportunity resonate
with the entrepreneur’s
personal interests, talents, and
skills?
entrepreneurial endeavor, it is
important to determine the
sales potential of the products
or services you want to offer. Is
there a big enough market out
there to grab and nurture for
growth?
The 12 Rs of Opportunity Screening

5. Responsiveness to customer 6. Reach. Opportunities that

needs and wants. If the
opportunity that you want to
pursue addresses the unfulfilled
or underserved needs and wants
of customers, then you have a
better chance of succeeding.
have good chances of expanding
through branches,
distributorships, dealerships, or
franchise outlets in order to
attain rapid growth are better
opportunities
The 12 Rs of Opportunity Screening
7. Range. The opportunity can
potentially lead to a wide range of
possible product or service
offerings, thus, tapping many
market segments of the industry
8. Revolutionary Impact. If you
think that the opportunity will
most likely be the “next big thing”
or even a game-changer that will
revolutionize the industry, then
there is a big potential for the
chosen opportunity
The 12 Rs of Opportunity Screening
9. Returns. It is a fact that products
with low costs of production and
operations but are sold at higher
prices will definitely yield the highest
returns on investments. Returns can
also be intangible; meaning, they
come in the form of high profile
recognition or image projection.
10. Relative Ease of Implementation.
Will the opportunity be relatively
easy to implement for the
entrepreneur or will there be a lot of
obstacles and competency gaps to
overcome?
The 12 Rs of Opportunity Screening

11. Resources Required.
Opportunities requiring fewer
resources from the
entrepreneur may be more
favored than those requiring
more resources.
12. Risks. In an
entrepreneurial endeavor,
there will always be risks.
However, some opportunities
carry more risks than others,
such as those with high
technological, market,
financial, and people risks
S3: Seizing the Opportunity
- is the last step in opportunity spotting and
assessment. This the “publishing through” with
the chosen opportunity. Entrepreneurs should
make the best out of this opportunity, and they
should exert effort and dedication for the future
success of the new venture. Entrepreneurs' idea
can any be type of innovations.
Innovation - is the process of positively
improving an existing product or
service. It is a key driver for economic
growth. Innovation is inevitable as the
world constantly changes. Therefore,
the products and services must also
adapt to these changes.
THREE TYPES OF INNOVATIONS
1. Breakthrough innovation
These innovations, which may also
include inventions, occur infrequently
as these establish the platform on
which future innovations in an area are
developed. Breakthrough innovations
must be protected by a patent, a trade
secret, or a copyright. Examples:
Internet, computer, airplane
THREE TYPES OF INNOVATIONS
2. Technological innovation
These innovations are
technological advancements of an
existing product or service. These
innovations needs to be protected.
Ex. Wireless Fidelity, laptop
THREE TYPES OF INNOVATIONS
3. Ordinary Innovation
They are commonly originating from
market analysis and technology pull
instead of a technology push. This
means that the market has a strong
influence in the implementation of
an innovation.
Ex. Unlimited internet plans of
telecommunications, wireless mouse
Product Planning and Development
Process
1.Idea stage. This refers to the
formation of the business ideas.
It starts with an entrepreneurial
intent and proceeds with a
development of a business idea
using logic and creativity.
Product Planning and Development
Process
2. Concept Stage. The
refinement of ideas and
visualization of an idea
that can serve as a
business opportunity.
Product Planning and Development
Process
3. Product Development
Stage. It is here where the
business idea is
concretized with the
production of a prototype
Product Planning and Development
Process
4. Test Marketing Stage. At
this phase, the product or
service is introduced in the
market after a series of
evaluation and feedback
from potential customers.
Recognizing the potential market is really
one of the most difficult task to do. It
involves tedious research to ensure
success.
Once the 3s of opportunity spotting and
assessment have been diligently done. The
entrepreneur should now be ready to
prepare a comprehensive business plan
that covers the marketing, operations, and
financial plans