ENTERPRENEURSHIP
WEEK 1:
CONTENT
• Empathy Design
• Entrepreneurship: Definition,
History, Roles with Multi-
Disciplinary Approach
• Customer/Empathy Plans
• Problem Identification
• Opportunity Sensing
• Customer/User Persona Creation
• Ideation
INTENDED LEARNING OUTCOME
• Create a customer/user persona.
STUDENT/LEARNING ACTIVITIES
• Role identification
• Problem identification and presentation
• Problem statement creation and
presentation
• Creation of user persona
• Interview validation
• Creation and presentation of need
statement
CLASS RULES - Discuss grading system
Attendance 10%
Presentation Business Model Canvass 25%
Output 30%
Persona 10%
Business Model Canvass 10%
Customer Journey map 10%
Midterm (Prototype) 25%
Final (Final Pitching) 25%
Total 100%
RECITATION
• Tell something about your self
• Your expectation from this course
RECITATION
• What is your idea about entrepreneurship?
What is entrepreneurship?
• Not just a business but a state of mind
• Creates and hungers for opportunities – an avenue to create
employment for others
• More employment, better economy
• It is not taught; it is learned thru experience; this can be figure out as
you journey
• Not only for business people
• It is a great equalizer – everyone and everything starts from zero or
scratch; it doesn’t matter from where you are
History of Entrepreneurship
• Originated in Europe (Middle Ages)
• French word entreprendre meand “to undertake”
• other term used “between – taker” or “go- between” is Marco Polo who
attempted to established trade routes to the Far East during his time.
• Early entreprenuer provided men and materials needed by feudal lords to
wage war against enemies – ‘’provision of services”.
DIFFERENT ROLES
• Different Roles. Why multi-disciplinary?
• Different skill sets, different views and expertise, different perspective
• Different view point based on backgrounds
• Provides solution much better; multi sided not one sided
Chief Executive Officer
• Brings employees together; manages everybody.
• Makes sure that the team respects you; this is being earned. Stop
boasting about positions.
• Drives the company; does everything, shows support to everyone.
• Knows about everything
• The most qualified
• Not a glamorous position
Chief Technology Officer
• Build things
Chief Financial Officer
• Understands numbers, revolves around the business’ money
Chief Marketing Officer
• Talks and sells your product
Group Work 1:
• Create a group with at least 4 members coming from different
disciplines and identify the roles of each member of the group which
composed of:
• CEO
• CTO
• CFO
• CMO
95% of the business start-ups fail. Why?
• Poor management, lack of innovation lack of business management,
poor strategy/marketing, lack of knowledge
• Not taking into account what the customer needs
PROBLEM IDENTIFICATION
• How do you find the real problem around you?
• Business feasibility is an obsolete approach
• Design Thinking - is the new idea – evolves around human centered
design, how people interact, how to find solution to a certain need
• Identify the need, how big it is, is there a market?
• Can you solve the problem? Resources?
• Decide to move forward or not? Have a unique, something that you
can offer.
PROBLEM IDENTIFICATION
• Identify the need, how big it is, is there a market?
• Can you solve the problem? Resources?
• Decide to move forward or not? Have a unique, something that you
can offer.
Thinking inside the box? What does it mean?
Thinking inside the box
• You don’t have everything in disposal; use whatever resources you
have in disposal
• The difference that you can make if you are able to do something
based on the available resources inside the box
• You have nothing but you can do something
• You want to start a business but you don’t have nothing
• Many excuses, no money, no talent: build a mindset, nothing in the
pocket but you can do something
IMPORTANT: Mind setting
• Do not let bad things discourage you
• Move forward, there will always be ups and downs
• You should make the most out of every situation
• It is alright to make mistake as long as you learn from the failure
• Do not let negative minds control you; never live in fear of anything
and anyone
• If you think you can make a difference, then step-up; if you fail, then
learn from it.
• It is failure that we learn the most; this is resiliency.
How do you find a problem?
• DESIGN THINKING –
• evolves around human centered design; how they will
interact
• It help solve a need – identify the real need
Example: Cancer
GRAB vs. UBER
GROUP ACTIVITY 2:Problem Identification
• Project scoping: feel the pulse of the user; conduct interview with prospect
customers/users within the campus/locality.
• Activity: Identify existing problems at least 3, and present it to the group by the
CEO. After presentation, decide what is the most feasible and focus on it.
• Create a problem statement (Broad and contextualized; it addresses the issue
to be solved, how big it is.)
• Defining the details of the problem
• Why did this happen?
• How big it is?
• Who is facing the problem?
• Validation with stakeholders
PROBLEM STATEMENT
• Broad
• Provides the context: 3 lines to 3 pages
• Issue to be solved
• How big it is
GROUP ACTIVITY 3:Problem statement
formulation
• Defining the details of the problem
• Why did this happen?
• How big it is?
• Who is facing the problem?
• Validation with stakeholders
• Find a problem that is big enough for you to solve – problem that you
want to solve for this 2-day activity.
• Create a problem statement
Example Problem Statement
• Since the approval and implementation of the Rice Tarification Law in
the Philippines, local farmers in the different areas in the country
have been experiencing problems in terms of price competitiveness of
rice products. This is due to the fact of endless importation coming
from neighboring ASEAN countries with lower price in the market.
• The farmers in the Philippines particularly in Northern Luzon normally
needs P14.00 to P15.00 to produce one kilo of rice while it is being
sold to the market; but recently, due to rice importation, the selling
price of the farmers became lower. Also, due to high expenses in
producing rice in the Philippines, competitiveness in terms of price in
the market is also difficult for the local farmers since the imported
rice have lower costs.
Example Problem Statement (Cont..)
• The rice farmers normally used commercialized farm inputs such as
pesticides, insecticides and fertilizers which are all available in the
local market which are expensive. Also, they need to pay local workers
to do the farming labor; these has been the practice in many years.
And with this high price in the production comes with the possibility
of a high price demand from the farmers in terms of trading their rice
produce; but today, this seems impossible most especially for small
time farmers. The presence of the imported rice forced the farmers to
sell their rice produce with lower price than the production cost to
make it competitive in the market. This happening is not a good
indicator of the economic survival of the rice farmers in the country.
Users vs Customers
• Customers are the one who buys the product and doesn’t not
necessarily the one utilizing the product
• Users are the one who have direct interaction with the product; they
are the ones who are the direct beneficiaries of the product.

• Do not give solution – ask how much they are willing to pay
• Ask them if it is indeed a problem; if different answers, see what is more
feasible.
• Find users and customers and interview them – economic background, age,
occupation, address, source of income, problems..
Customer/User Persona Creation

• Allows you to see a glance on what the customers or users’ point of

view
• Understanding the needs of the customer – needed because the
business is built for them
 Think & Feel
about the problem

Hear See
What influences USERS & CUSTOMERS
in the problem
their decision about Too difficult/impossible
the problem? to solve

Say & Do
Feedback given to you

Main Pain FEARS WANTS, GAINS, NEEDS

Point
Group Activity 3: Create a user persona
Customer/user persona
• They semi-fictional representation of your ideal customer based on
date and research
• Success in marketing and product development comes from a deep
understanding of your target customer.
• Your ability to put yourself into their shoes of your customer, to
understand their pain points, needs, wants, aspirations, work and
environment – in fact every aspect of their lives – will drive your
success.
How to create customer/user persona
• A name - Giving your persona a name is a huge step forward in
making your persona real.
• Their professional and personal background – Describe what your
target customer does for a living and where they are in their career.
• Demographics : age, gender, education, ethnicity, family status –
here, avoid dividing up your persona into age ranges or percentage
male/female. Your creating fictional character for this exercises, so be
specific about age, family status and other details.
• Goals - what are your persona’s goal? User’s goals are beyond the
immediate problem that your company solves. Ex: we sell business
planning software, our customer’ goal is to create a successful
company
How to create customer/user persona
• “I need/want” statements – what does your personal want and or
need in order to reach the goals you have defined for them?
• Concern or paint points – concerns of your persona. Are they
worried about security? Are they concerned about potentially difficult
return processes? How important is reliability and long-term access to
your product or services?
• Past buying behavior – do most of your customer buy you
repeatedly? Or is their purchase a one-time purchase? Does your
customer have brand loyalty?
• Environment – this is critical aspect that defines who they are. If you
are building online application, would the real people you’re targeting
be mostly using your site from home? From work? Mobile phone?
What is their home or work environment?
How to create customer/user persona
• A quote that sums up what matters most to them. - a user quote
should be just one or two sentence that sums up what matters most
to your persona. Ex: “ I want a simple planning solution that will
impress my investors and not to take too much time away from
actually building my business”
• A photo- to complete your persona, add a picture. After all, your
buyer persona should be real to you and your team and adding pictire
accomplishes this.
Group Activity 4: Validate the user persona
• Conduct interview with at least 2 stakeholders to validate your
problem statement
• Record the interview and upload to slack
Group Activity 5: Slack Account Creation
• Go to slack website (slack.com)
• Create an account (CEO will initiate the creation of the group; invite members)
• Create the following channels:
• #general
• #meeting_minutes_nolec
• #meeting_minutes_lec
• #random
• #research
• #validations
• #weekly_deliverables
• #designcollaterals
• Add all the members of the team including the teacher
• The teacher will monitor the group activity
Group Activity 5: Slack Account Creation
• #general
• #meeting_minutes_nolec –
• Students meet themselves – at least once a week
• Who, where, attendance
• What is discussed: deliverables
• Monitoring of student participation – reduce points for absences
• Deliverables – deduct from points if there is no deliverables
• If team do not have minutes – give deduction from the points
• #meeting_minutes_lec
• Write the minutes in the meeting
• List of deliverables next meeting and who is responsible
Group Activity 5: Slack Account Creation
• #random
• #research
• Collect research materials
• Items that can be read (articles, news)
• Resources that can be used as reference
• #validations
• Verify every single thing (audio, video, pictures)
• Based on facts provided by the users and customers
• Online surveys are not valid – needs an interview, upload it and the analysis of results
• Require students to conduct minimum of 5 validation interviews and let them analyze the results (what
to keep? What to change?)
• #weekly_deliverables
• can be downloaded; weekly activities required is uploaded
• #designcollaterals
• Posters, flyers, logos
Creating the Need Statement
• Based on the problem statement, create a need statement using the
following guide:
• How might i/we solve the problem
• Ideas that might solve the problem
Need Statement
• Each members should have 5 different ideas that might solve the
problem
• Present it to the group for discussion
• Choose 3 and present it to the class
ISSUE: Lack/Absence of School Services (photocopying,
printing, binding, etc.); Supplies and Materials inside the campus

• PROBLEM STATEMENT: How might we help the ISU students

address the lack/absence of school services (photocopying,
printing, binding, etc.); supplies and materials in the campus
• Need Statement: I need a shop that offers complete and
varied school services, supplies and materials
• Ideation: How might I/WE do something to address the
needs of our customers (this focuses on the business
solution)
CONTENT
• Create a system thinking
diagram.
• Design Thinking Process:
Definition and Components
• System Thinking Diagram
INTENDED LEARNING OUTCOME
• Create a system thinking
diagram.
STUDENT/LEARNING ACTIVITIES
• Creation and presentation of
system thinking diagram
System thinking
• Design Thinking Process: Definition
• Go out and ask people; talk to them; read newspapers, talk to them
directly and get their view
• User-centered approach; always involve the stakeholders in designing
the solution.
System Thinking Diagram
• Create a diagram based on the elements of the system
• What do I have, what do I need, who can be of help
• Upload output to slack
SYSTEM THINKING DIAGRAM
Minimizes risk;
Makes sure that what you plan to do will carried through..

APP

What do I have, what do I need, who can be of help

• Technology based investments
• Investors are more on technology-enabled based investments
• All business uses technology
• Artificial intelligence, data analytics, machine learning
• Black chain – can be applied to agriculture; this is used for tracking
where the product came from
 SYSTEM THINKING DIAGRAM
• Provides a visual aid to understand the connection between systems

EVENT

• Identify the problem in hand; could be one or more related problems

• Example:
• Customer wait for a long time at the reception
• Unsatisfied customer at the reception

Source: designorate.com
SYSTEM THINKING DIAGRAM
• Provides a visual aid to understand the connection between systems

PATTERNS OF
EVENT
BEHAVIOURS

• Observe the patterns that shows the relationship

between elements involved in the system
• These elements could be the potential cause of the
problem (cause and effect)

Source: designorate.com
 SYSTEM THINKING DIAGRAM
• Provides a visual aid to understand the connection between systems

PATTERNS OF
EVENT SYSTEM
BEHAVIOURS

• Identify the potential causes for • Identify gaps and delays

the final effects • Contributes to increasing the problem
• Ex: limited number of reception
• Identification of feedback loops personnel
• Talking to each patient in the reception office
increases waiting time – which can positively
increases the patient unsatisfactory.

Source: designorate.com
 SYSTEM THINKING DIAGRAM
• Provides a visual aid to understand the connection between systems

PATTERNS OF MENTAL
EVENT SYSTEM MODELS
BEHAVIOURS

• Achieve the intended goal

• Improve the customer experience on the hospital front desk
• Increase parking lots in front of the hospital
• Train the personnel to handle large number of customers
• Add additional personnel in the reception area
• Provide entertainment such as television or internet connection

Source: designorate.com
• Assumptions and Hypothesis
• Principles of Lean Methods (Value, Value Streams, Flow, Pull,
Perfection)
• Validation Techniques
 LEAN METHODOLOGY
• Lean is both a philosophy and a discipline which, at its core, increases access
to information to ensure responsible decision making in the service of
creating customer value
• Not building for yourself; building for customers
• You will not see it if you build it for yourself
Pillars of Lean methodology
• Continuous improvement
• They equate it with the elimination of waste ( define as anything that does
not deliver value to the customer), the goal is not elimination – its value
creation
• Path toward innovation as it a form of risk management
• Respect for people
• Respect for frontlines workers – the best ideas come from the people with
their hands on the product.
• Lightweight leadership – leaders are charged with task of bringing the best
out their employees and removing any obstacles that could prevent their
team from delivering value to the customer.
Principles of Lean Methods
• Value
• The value stream
• flow
• pull
• perfection
Wastes
• Motion
• Inventory
• Waiting
• Defects
• overproduction
• transportation
• over – processing
• Human potential
Business Model Canvass
• is a great tool to help you understand a business model in a
straightforward, structured way.
• lead to insights about the customers you serve, what value
propositions are offered through what channels, and how your
company makes money
• understand your own business model or that of a competitor
5 key benefits of the business model canvas

• Business model canvass is focused

• BMC is clear and concise
• target customer needs
• Reduces the risk of failure
• scientific frameworks that works
• Infrastructure
• Key Activities: The most important activities in executing a
company's value proposition.
• Key Resources: The resources that are necessary to create value
for the customer. They are considered assets to a company that
are needed to sustain and support the business. These resources
could be human, financial, physical and intellectual.
• Partner Network: In order to optimize operations and reduce
risks of a business model, organizations usually cultivate buyer-
supplier relationships so they can focus on their core activity.
Complementary business alliances also can be considered
through joint ventures or strategic alliances between competitors
or non-competitors.
Legal Forms of Business
• Sole proprietorship
• Partnership
• Types of partners
• Corporations
• Cooperatives
Things to consider in selecting the best legal form of organization

• ownership
• Management
• Financing
• Liability
• Incentives
• Taxation
• retention of income
• protection
Sole proprietorship
- is a form of business organization initiated, organized, mowned or
capitalized, and managed by a single person.

Advantages Disadvantages
- Easily created and terminated - unlimited liability
- direct, undiluted action - capital limitations
- all rewards to owner - perils of individual
- flexibility - limited skills and capabilities
- minimum regulation and taxation of the sole owner
Partnership
- an association of two or more business partners who co-own a business for
the purpose of making a profit. The co-owners (partners )share assets,
liabilities, and profits of the business according to the terms of the partnership
agreement.
Types of partnership
- General partner - Managing partner
- limited partner - Industrial partner
- silent partners - secret partner
- dominant partners - Nominal partner
- capitalist partner - Liquidating partner
Partnership…
Advantages Disadvantages

• Pooling or resources • Unlimited liability

• ability to obtain capital • tenuous existence

• simplicity and incentive • independence on

management harmony and
coordination
• limited regulation and taxation • problems in share
liquidation
 Corporations
- Its owners are the stockholders who can sell their interests in the
corporation without affecting the continuity of its operations because the life
of the corporation is dependent or distinct from that of the owners or
stockholders.
Advantages Disadvantages

• Limited liability • legal formality and cost

• legal entity • cost and time involved in the incorporation process

• ready transferability of ownership • taxation

• obtaining capital • potential loss of control by founders of the

corporation
• employee benefits
 Cooperatives
- Republic Act 6938, otherwise known as the Cooperative Code of the
Philippines, defined a cooperative as a duly registered association of persons,
with common bond of interest, who have voluntarily joined together to achieve
a lawful common social or economic end, making equitable contributions to the
capital required, and accepting a fair share of the risks and benefits of the
undertaking in accordance with universally accepted cooperative principles.
Principles of Cooperative
• open and voluntary membership
• democratic control
• limited interest on capital
• Division on net surplus
• cooperative education
• cooperation among cooperatives
Advantages and disadvantages of cooperatives

• Tax privileges
• ability to provide direct benefits to its members and the entire
community
• inequality of profit distribution
• the pro – masses and pro-poor bias of the cooperatives appears
diametrically opposed to the entrepreneurs idea of servicing a market
niche that is well –off enough to address its dream of profit
General requirement and procedures for registration
• Registering a single proprietorship
 register the business name with the DTI
 2 pcs 2 x 2 picture
 application fee or registration fee

• Registering a partnership
 Prepare partnership agreement
 File the partnership agreement with the SEC
 Pay filing fee
 evaluation of the application by the lawyer and staff of Corporate and Legal
Department
 Release of the approved registration is within 15-30 days
General requirement and procedures for registration
• Registering a corporation
 prepare Articles of Incorporation and By-laws, bank certification
 file articles of Incorporation and By- laws with the SEC
 pay registration fee
 evaluation of application by lawyer and staff of Corporate and Legal deprtament
 release of approved registration is within 15-30 days

• Registering a cooperative (the following documents shall be forwarded to CDA):

 Four (4) copies od the economic survey with general statement describing briefly the
structure, purpose, economic feasibility, area operation, size of membership, and other
pertinent data
 four (4) copies of Article of Incorporation together with the bond of accountable officers
 Four (4) copies of By-laws
 registration fee as prescribed by CDA
Dealing with local government units
- the papers or documents issued by DTI, SEC and CDA upon approval of
the registration are instruments which are national in character.
To be able to operate the business and open the doors to the public,
entrepreneurs have to comply with all the permits imposed by LGU’s.
1. Mayors permit
2. Building permit
3. Sanitary permit
4. Cigar and liquor permit
5. NBI clearance
6. Barangay clearance
Students will design their final pitch ( slide presentation)
1. Company logo and tag lines
2. problems (you are going to solve)
3. how big customer segment/market size
4. solution
5. Demonstration
6. USP/ competitors (unique selling point)
7. Cost/price
8. marketing strategy
9. Funding (how much money you are to raise)
10. Team (positions – Why they are so good working with them)
11. USP value