4.

Risk bearing –meaning the entrepreneur needs to

MODULE 1: INTRODUCTION TO gamble but wise enough to offset the risk.
ENTREPRENEURSHIP
TYPES OF ENTREPRENEURS
1. Innovative entrepreneur- make new things by
Lesson 1: Introduction to Entrepreneurship thinking of new ideas.
2. Imitating entrepreneurs- follow the ideas of other
1. Development of Managerial capabilities entrepreneurs.
2. Creation of Organizations 3. Fabian entrepreneurs- they are those skeptical.
3. Improving standard of living They don’t initiate but follow only after they are satisfied.
4. Means of economic development 4. Drone entrepreneur- they are those who lives on the
labor of others. They are die-hard conservatives even
Entrepreneur ready to suffer the loss of business.
-French verb entreprendre="to undertake" 5. Social entrepreneurs-they are those who initiate
-who undertake the risk of enterprise changes in the various fields such as education, health,
human rights, environment and enterprise
Enterprise development.
-created by an entrepreneur through Entrepreneurship
CAREER OPPORTUNTIES OF ENTREPRENEURSHIP
FACTORS AFFECTING ENTREPRENEURSHIP
1. Business Consultant- advices to other entrepreneurs
1. Personality and would be business man.
i. Initiative- doing before being told 2. Teacher
ii. Proactive- classify and seize opportunities 3. Researcher- the entrepreneur can be employed as
iii. Problem solver- retain good relationships researcher by an enterprise.
iv. Perseverance- pursue things to get done regardless of 4. Sales- the entrepreneurship graduate can apply as
challenges salesman
v. Persuasion- entice people to buy even if they don’t. 5. Business Reporter- the entrepreneur being expert in
vi. A Planner- makes plan before doing things and do the field, he can be employed as business reporter.
not fail to monitor it
vii. Risk-taker willing to gamble but he will calculate it MODULE 2: RECOGNIZE A POTENTIAL
first. MARKET
2. Environmental Factors
-political, climate, legal system, economic and social
conditions and market situations.

COMMON COMPETENCIES
1. Decisive- firm in making decisions. ESSENTIALS IN ENTREPRENEUR’S OPPORTUNITY
2. Communicator- a convincing power. SEEKING
3. Leader- obeyed by his employees
4. Opportunity seeker- see business chances. 1. Entrepreneurial mind frame
5. Proactive- controlling a situation by making things to see things in a very positive and optimistic way in the
happen or by preparing for possible future problems. midst of difficult situation.
6. Risk Taker- they have the courage to pursue what is -Being a risk - taker, an entrepreneur can find solution
their business ideas. when problems arise.
7. Innovative- big business ideas and they do not stop
improving and thinking of new worthwhile ideas for 2. Entrepreneurial heart flame.
their business. -Entrepreneur's driven passion,
-they are attracted to discover satisfaction in the act and
process of discovery.
-Passion is the great desire of an entrepreneur to achieve
CORE COMPETENCIES his/her goals.
1. Economic and dynamic activity
-an economic activity as it involves the creation and 3. Entrepreneurial gut game.
operation of an enterprise with a view to creating value -This refers to the ability of the entrepreneur of
or wealth by ensuring optimum utilization of limited being intuitive.
resources. - This also known as intuition.
2. Innovative- Entrepreneurs constantly look for new -The gut game also means confidence in one’s self and
ideas, thus he needs to be creative. the firm believes that everything you aspire can be
3. Profit Potential- meaning the entrepreneur can be reached.
compensated by his profit coming from the operation.
SOURCES OF OPPORTUNITIES a. Switching cost is low.
b. Preferences and tastes of the customers easily change.
1. Changes in the Environment c. Product differentiation is highly noticeable
External environment refers to the physical d. The quality of substitute products dramatically
environment, societal environment, and industry improves.
environment where the business operates e. The price of substitute product is substantially lower.

i. Physical Environment: Climate, Natural Resources, 5. Suppliers

Wildlife - provide something that is needed or wanted
ii. Societal Environment: Political forces, economic - The intensity of the threat is strong in this kind of the
forces, sociocultural forces, technological environment competitive force in the industry. This can be notice if
iii. Industry Environment: Competitors, Customers, there is the presence of the following factors:
Creditors, Employees, Government, Suppliers a. The supplier has the ability for forward integration.
b. Suppliers in the industry are few, but the sales volume
2. Technological Discovery and Advancement is high.
c. Substitute products are not readily available in the
3. Government’s thrust, programs, and policies market
d. The switching cost is very high.
4. People’s Interest e. The product or service is unique.

5. Past Experiences MODULE 3: Recognize and Understand the

Market
FORCES OF COMPETITION MODEL
-five forces of competition
Value Proposition
Competition: the act or process of trying to get or win - business or marketing statement that
something summarizes why a consumer should buy a company's
product or use its service.
1. Buyers - used to convince a customer to purchase a particular
- one that pays cash in exchange to your goods and product or service to add a form of value to their lives
services
- has a strong and magnified bargaining power VP BASIC ELEMENTS
a. There are several suppliers available in the market. • Target Customer
b. The buyer has the potential for backward integration. • Needs/opportunity
c. The cost of switching the supplier cost is minimal. • Name of the product
d. The product represents a high percentage of the • Name of the enterprise/company
buyer’s cost.
e. The buyer purchases large portions of the seller’s Unique Selling Proposition (USP)
product or services. - how you sell your product or services to your customer
• Identify and rank the uniqueness of the product or
2. Potential New Entrants services character
-“new entrant” is a person who enters something • Very Specific
a. Substantial capital requirement. • Keep it short and simple (KISS)
b. Strict government policy.
c. Difficulty in accessing distribution channels. A. TARGET MARKET
d. Economies of scale.
e. High cost of product differentiation. Market Targeting
f. High switching cost - sage in market identification process that aims to
determine the buyers with common needs and
3. Rivalry Among Existing Firms characteristics
-“Rivalry” is a state or situation in which people or
groups are competing with each other Commonly Used Methods for Market Segmenting
-intensity is based on the following factors:
a. Diversity of rivals. 1. Geographic segmentation – the total market is divided
b. Number of competing firms. according to geographical location.
c. Characteristics of the products or services. • Variable to consider
d. Increased capacity. a. Climate, b. Dominant ethnic group, c. Culture , d.
e. Amount of fixed costs. Density (either rural or urban)
f. Rate of industry growth.
2. Demographic Segmentation – divided based
4. Substitute Products consumers.
-“Substitute” takes place or function of another
• Variable to consider: a. Gender, b. Age, c. Income, d. 2. Telephone Interviews: less expensive and less
Occupation, e. Education, f. Religion, g. Ethnic group, h. time consuming, response rate is not as high
Family size
Focus Group Discussion: a moderated group
3. Psychological Segmentation- divided in terms for interviews and brainstorming sessions
customers think and believe. -90 and 120 mins, 8-10 per group, semi-structure or
• Variable to consider: a. Needs and wants, b. Attitudes, open-format discussion
c. Social class, d. Personality traits, e. Knowledge and
awareness, f. Brand concept, g. Lifestyle
MODULE 5: Market Research
4. Behavioral Segmentation- divided according to
customers behavior pattern as they interact with a Lesson 1
company.
• Variable to consider: a. Perceptions, b. Knowledge, c. Marketing Mix
Reaction, d. Benefits, e. Loyalty, f. Responses -a set of controllable and connected variables that a
company gather to satisfy a customer better than its
B. CUSTOMER REQUIREMENTS competitor
-are the specific characteristics that the customers need -also known as the “Ps” in marketing
from a product or a service. - original 4 P’s stands for product, place, price and
-two types: promotion.
- three elements have been added, namely: people,
1. Service Requirement packaging and positioning
- Intangible thing or product
- includes all aspects of how a customer expect to be
treated while purchasing a product and how easy the 1. PRODUCT
buying process goes. -marketing strategy typically starts with a product
- refers to any goods or services that are produced to
2. Output Requirements meet the consumers’ wants, tastes and preferences
- Tangible thing or things that can be seen
- Characteristic specifications that a 2. PLACE
consumer expects to be fulfilled in the product -location where the buyer and seller exchange goods or
services
C. MARKET SIZE -also called distribution channel
-approximate number of sellers and buyers in a
particular market. STAGES OF DISTRIBUTION CHANNELS
-determined by Market research

MARKET RESEARCH PROCESS:

1. Estimate Potential Market
- approximate number of customers that will buy the
product or avail your services
2. Estimate Customers who dislike to buy Product
3. Estimate Market Share
- plotting and calculating of the competitor’s market
share to determine the portion of the new venture.
Channel 1 contains two stages between producer and
consumer - a wholesaler and a retailer

MODULE 4: Market Research *Wholesaler: buys and stores large quantities of several
producers' goods and then breaks into bulk deliveries to
Data Collection supply retailers
- most valuable tool of any type of research study
Channel 2 contains one intermediary. In consumer
Surveys: most common way to gather primary research markets, this is typically a retailer.
with the use of questionnaires or interview schedule.
*A retailer is a company that buys products from a
Interview: one of the most reliable and credible ways of manufacturer or wholesaler and sells them to end users
getting relevant information from target customers. or customers. In a sense, a retailer is an intermediary or
(normally last from 15 to 40 minutes) middleman that customers use to get products from the
1. Personal Interviews: traditional method of manufacturers.
conducting an interview, It generates highest
response rates in survey research.
Channel 3 is called a "direct-marketing" channel, since 3) Emotion
it has no intermediary levels. This means you allow the customers have chance to feel
In this case the manufacturer sells directly to customers. that they are part of your brand.

4. Promotion 4) Flexibility
-complete set of activities, which communicate the
product, brand or service to the user 5) Employee Involvement: sets the tone for what
-attract people to buy your product over others potential customers can expect from doing business
-ex: Advertising, Personal Selling, Sales Promotion, with you
Direct Marketing, and Social Media
6) Loyalty
Penetration pricing: when the price charged for
products and services is set artificially low in order to 7) Competitive Awareness
gain market share. MODULE 6: 4 M’s of Production and
Business Model
5. People
-are the ultimate marketing strategy
-they sell and push the product 4 M’S

6. Packaging 1. Manpower
-a silent hero in the marketing world -human labor force
-refers to the outside appearance of a product and how it -most serious and main factor of production
is presented to the customers -manpower criteria: Educational qualifications and
experience, status of employment, numbers of workers
7. Positioning required, skills and expertise
-create an image in the minds of a target market
2. Material: raw materials necessary in production
Lesson 2
Brand Name 3. Machine: manufacturing equipment
-name, symbol, or other feature that distinguishes a
seller’s good or services in the marketplace 4. Method
-process or way of transforming raw materials to finished
Brand products
-greatest asset, customers’ overall experience of business -dependent on product, mode of production,
manufacturing equipment, skills
Brand Strategy
-long-term design for the development of a popular Product Description
brand in order to achieve the goals and objectives -promotion that explains what and why of product
-provide customers with details around the
Branding features and benefits of the product
- a powerful and sustainable high-level marketing
strategy used to create or influence a brand Prototyping
- a strategy to distinguish products and companies and - duplication of a product
to build economic value to both customers and to brand -one of important early steps of inventing is making a
owners prototype
-can change how people percept your brand, it can drive
new business and increase brand awareness Supplier
- entity that offers goods and services to another
COMMONLY USED BRANDING STRATEGIES business
 Suppliers: Business partners, without them
1) Purpose business will not live
a. Functional. This way focuses on the assessments of  Value Chain: method or activities by which a
success in terms of fast and profitable reasons. For company adds value to an item etc; aims to
example the purpose of the business is to make money. support a competitive benefit
b. Intentional. This way focuses on fulfillment as it  Supply Chain: structure of organizations
relates to the capability to generate money and do well in  Supply Chain Management
the world.

2) Consistency
The significant of consistency is to avoid things that Business Model
don’t relate to or improve your brand. Consistency aids -describes reasons of how an organization creates,
to brand recognition, which fuels customer loyalty. delivers, and captures value in economic, social, cultural
or other contexts
-development of business model construction and
variation
-also called business model innovation
-forms part of a business plan

-phases:
1. Identifying the specific audience
2. establishing business process
3. recording a business resources
4. developing strong value proposition
5. determining key business partners
6. creating a demand for today’s generation strategy and
be open for innovations.
-after business model, next is developing a business plan

Business Plan
-after business model
-important tool to have an idea about the future of your
business
-components:

1. Introduction- this part discusses what is the business

plan all about.

2. Executive Summary- is part of the business plan which

is the first to be presented but the last to be made.

3. Management Section- shows how you will manage

your business and the people you need to help you in
your operations.

4. Marketing Section- shows the design of your

product/service; pricing, where you will sell and how
you will introduce your product/service to your market

5. Financial Section- shows the money needed for the

business, how much you
will take in and how much you will pay out.

6. Production Section- shows the area, equipment and

materials needed for the business.

7. Competitive Analysis- is the strategy where you

identify major competitors and research their products,
sales and marketing strategies.

8. Market- The persons who will buy the product or

services

9. Organizational chart- is the diagram showing

graphically the relation of one official to another, or
others of a company.