MODULE 1-LESSON 1: NTRODUCTION OF ENTREPRENEURSHIP

ENTREPRENEURSHIP- process of creating, launching, and managing an enterprise by an entrepreneur. It is

the process of creating incremental wealth through the efforts of individual who find new and useful ways to
employ resources. They provide needed products (tangible), services (intangible) and provide jobs (backbone
of the economy).

ENTREPRENEURSHIP- process, creating, new, wealth, and individuals

ENTREPRENEUR- is an individual that develops new creation and assume the risk a setting up a business to
produce product that will satisfy the customer need and wants. The word “entrepreneur” was derived from the
French word “enterprendre”, which means “to undertake” or “to take risk”.

RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION

1. Development of Managerial Capabilities - this means that one of the benefits an entrepreneur gets is to
develop his managerial skills.
2. Creation of Organization - which means that because of entrepreneurship many organizations will exist.
3. Improving Standard of Living - this means that entrepreneurship can lift up the economic status of an
individual.
4. Means of Economic Development - this means that not only the life of the entrepreneur is improved but also
the society where the business is located.
ENTREPRENEUR BUSINESS INDIVIDUAL
Creative individual that introduces new ideas Individual that follows the existing ideas
NATURE Innovative Traditional
GOAL Customer oriented Profit oriented
RISK High, the higher the better Low, the lower the better
MARGIN
MARKET Market leader Market player
POSITION
ORIENTA Opportunity oriented Profit oriented
TION

FACTORS AFFECTING ENTREPRENEURSHIP

1. Personality Factors which include:
a. Initiative - doing things even before being told.
b. Proactive - which means he can classify opportunities and seize it.
c. Problem Solver - which means he can retain good relations with other people.
d. Perseverance - meaning he will pursue things to get done regardless of challenges.
e. Persuasion - means that he can entice people to buy even if they don’t want to.
f. A Planner - he makes plans before doing things and does not fail to monitor it.
g. Risk-taker - which means that he is willing to gamble but he will calculate it first.
2. Environmental Factors
 a. political
b. climate
c. legal system
d. economic and social conditions
e. market situations.
COMMON COMPETENCIES IN ENTREPRENEURSHIP
1. Decisive - an entrepreneur must be firm in making decisions.
2. Communicator - an entrepreneur must have a convincing power.
3. Leader - an entrepreneur must have the charisma to be obeyed by his employees.
4. Opportunity seeker - an entrepreneur must have the ability to be the first to see business chances.
5. Proactive – an entrepreneur can control a situation by making things happen or by preparing for possible
future problems.
6. Risk Taker – an entrepreneur has the courage to pursue business ideas.
7. Innovative - the entrepreneur has big business ideas and he does not stop improving and thinking of new
worthwhile ideas for his business.
CORE COMPETENCIES IN ENTREPRENEURSHIP
1. Economic and Dynamic Activity - Entrepreneurship is an economic activity because it involves the creation
and operation of an enterprise with a view to creating value or wealth by ensuring optimum utilization of
limited resources.
2. Innovative – The entrepreneur constantly looks for new ideas, thus he needs to be creative.
3. Profit Potential - The entrepreneur can be compensated by his profit coming from the operation.
4. Risk bearing – The entrepreneur needs to gamble but wise enough to offset the risk.
TYPES OF ENTREPRENEURS
1. Innovative Entrepreneurs - They are those who always make new things by thinking of new ideas. They
have the ability to think newer, better and more economical ideas.
2. Imitating Entrepreneurs - They are those who don’t create new things but only follow the ideas of other
entrepreneurs.
3. Fabian Entrepreneurs - They are skeptical about changes to be made in the organization. They don’t initiate
but follow only after they are satisfied.
4. Drone Entrepreneurs - They are those who live on the labor of others. They are die-hard conservatives even
ready to suffer the loss of business.
5. Social Entrepreneurs - They are those who initiate changes and drive social innovation and transformation
in the various fields such as education, health, human rights, environment and enterprise development.
CAREER OPPORTUNITIES OF ENTREPRENEURSHIP
1. Business Consultant - with the expertise of in the field of entrepreneurship, he can be a very good source of
advices to other entrepreneurs and would be business men.
2. Teacher - a graduate of an entrepreneurship can use his knowledge in teaching.
3. Researcher - the entrepreneur can be employed as a researcher by an enterprise.
4. Sales - the entrepreneurship graduate can apply as a salesman.
5. Business Reporter - the entrepreneur being expert in the field, can be employed as a business reporter.

MODULE 2- LESSON 1: RECOGNIZE A POTENTIAL MARKET

Phase 1- Investment - crucial part
Phase 2- Break even - crucial part
Phase 3- Pay off stage – the business will work for you.
ENTREPRENEURIAL IDEAS- the creation of an entrepreneurial idea leads to the identification of
entrepreneurial opportunities, which in turn results in the opening of an entrepreneurial venture.
The entrepreneurial process of creating a new venture is presented in the diagram below.
1. CREATION OF ENTREPRENEURIAL IDEAS
2. IDENTIFICATION OF ENTREPRENEURIAL OPPORTUNITIES
3. OPENING OF ENTREPRENEURIAL VENTURE
FIGURE 1. THE ENTREPRENEURIAL PROCESS OF CREATING NEW VENTURE
Essentials in Entrepreneur’s Opportunity – Seeking
These are the basic foundation that the entrepreneur must have in seeking opportunities:
→ Entrepreneurial mind frame. This allows the entrepreneur to see things in a very positive and
optimistic way in the midst of difficult situation. Being a risk - taker, an entrepreneur can find
solutions when problems arise.
→ Entrepreneurial heart flame. Entrepreneurs are driven by passion; they are attracted to discover
satisfaction in the act and process of discovery. Passion is the great desire of an entrepreneur to
achieve his/her goals.
→ Entrepreneurial gut game. This refers to the ability of the entrepreneur of being intuitive. This
also known as intuition. The gut game also means confidence in one’s self and the firm belief that
everything you aspire can be reached.
SOURCES OF OPPORTUNITIES
There are many ways to discover opportunities. Looking at the big picture, some have noticed the
emerging trends and patterns for business opportunities. While others are trying to find out their target market.
The following are some sources of opportunities:
1. Changes in the environment- Entrepreneurial ideas arise when changes happen in the external
environment. A person with an entrepreneurial drive view these changes positively. External environment
refers to the physical environment, societal environment, and industry environment where the business operates.
1.1 The Physical environment includes
a. CLIMATE- the weather conditions.
b. NATURAL RESOURCES- such as minerals, forests, water, and fertile land that occur
in nature and can be used for economic gain.
c. WILDLIFE- includes all mammals, birds, reptiles, fish, etc., that live in the wild.
1.2 The Societal environment
 a. Political forces – includes all the laws, rules, and regulations that govern business
practices as well as the permits, approvals, and licenses necessary to operate the business.
b. Economic forces – such as income level and employment rate.
c. Sociocultural forces – customs, lifestyles and values that characterize a society.
d. Technological environment – new inventions and technology innovations.
1.3 The Industry environment of the business includes:
a. Competitors
b. Customers
c. Creditors
d. Employees
e. Government
f. Suppliers
2. Technological discovery and advancement- a person with entrepreneurial interest sees possibility of
business opportunities in any new discovery or because of the use of latest technology. For example, an
individual with knowledge in repair and installation of a machine engine discovers additional engine parts that
considerably reduce fuel consumption.
3. Government’s thrust, programs, and policies- the priorities, projects, programs, and policies of the
government are also good sources of ideas. For example, the use of firecrackers to celebrate New Year’s Eve is
strictly prohibited. People without entrepreneurial interest will view the ordinance as a plain restriction.
However, for an entrepreneur, it is a business opportunity to come up with a new product that will serve as a
substitute for firecrackers.
4. People’s interest- the interest, hobbies, and preferences of people are rich sources of entrepreneurial ideas.
For example, like the increasing number of Internet Cafés at present could lead to the strong attachment of
young people to computers.
5. Past experiences- the expertise and skills developed by a person who has worked in a particular field may
lead to the opening of a related business enterprise. For example, an accountant who has learned the
appropriate accounting and management skills and techniques in a prominent accounting firm can start his/her
business venture by opening his/her own accounting firm.
FORCES OF COMPETITION MODEL
It is also known as the “five forces of competition”. An industry environment is a competitive
environment. Regardless of what product or services you have, competition is always present.
Competition – it is the act or process of trying to get or win something. For example, the prices are
lower when there is a competition among the stores.
These are the five forces competing within the industry:
1. Buyers- the buyers are the ones that pay cash in exchange for your goods and services.
2. Potential New Entrants- a new entrant is defined as companies or businesses that have the ability to
penetrate or enter into a particular industry.
3. Rivalry among Existing Firms- Rivalry is a state or situation wherein business organizations are competing
with each other in a particular market.
4. Substitute Products- substitute is one that serves the same purpose as another product in the market.
5. Suppliers- the suppliers are the one that provide something that is needed in business operations such as
office supplies and equipment.
Definition of Terms

Buyers – are the ones who pay cash in exchange for your goods and services.
Competition – it is the act or process of trying to get or win something.
Entrepreneurial process - can be defined as the steps taken in order to begin a new enterprise. It is a step-by-
step method one has to follow to set up a business.
Entrepreneurial ideas - an innovative concept that can be used for financial gain that is usually centered on a
product or service that can be offered for money.
Essentials of entrepreneur’s opportunity – seeking – these are the basic foundation that the entrepreneur
must have in seeking opportunities, such as entrepreneurial mind frame, heart flame and gut game.
External environment - refers to the physical environment, societal environment, and industry where the
business operates.
Government - refers to the local government (municipality, city, or provincial) or the national government and
its branches.
New entrants – the one who enters something.
Opportunity – seeking – the process of considering, evaluating, and pursuing market-based activities that are
accepted to be beneficial for the business.
Rivalry – is a state or situation in which people or groups are competing with each other.
Sources of opportunity - can be attained by assessing and looking at changes in the environment;
technological discovery and advancement; government’s thrust, programs, and policies; people’s interest, and
past experiences.
Substitute – anything that takes the place or function of another.
Suppliers – are the ones who provide something that is needed or wanted.

MODULE 3: IMPORTANCE OF CONCEPTUALIZING A BUSINESS

VENTURE
RECOGNIZE AND UNDERSTAND THE MARKET
There are three processes in creating a new venture:
1. Entrepreneurial mind frame
2. Entrepreneurial heart flame
3. Entrepreneurial gut game
UNIQUE SELLING PROPOSITION (USP) – refers to how you sell your product or services to your
customer. You will address the wants and desires of your customers than other competitors. As an entrepreneur,
you should think of marketing concepts that persuade your target customers.
You may ask the 3 important questions in doing this:
 1. What do the customers want?
2. What brand does well?
3. What does your competitor sell well?

WINNING ZONE- clear point of difference that meets the needs, make it even bigger.
LOOSING ZONE- your competitor meets the consumer needs better than you do. You’ll be crushed.
RISKY- competitive battle ground. Use emotion, innovative, and superior execution.

Some tips for the entrepreneur on how to create an effective unique selling proposition to the target
customers are:
1. Identify and rank the uniqueness of the product or services character
2. Be very Specific
3. Keep it Short and Simple (KISS)
As an entrepreneur, present the best feature of your product or service that is different from other
competitors. Identifying the unique selling proposition requires marketing research that you will learn from the
other modules. In promoting your products or services, make sure that it is very specific and put details that
emphasize the differentiator against the competitors. Keep it short and simple and think of a tagline that is easy
to remember.
EXAMPLE: PACKAGE SHIPPING INDUSTRY
PAIN: I have to get this package delivery quickly!
USP: “When it absolutely, positively has to be there overnight.”
EXAMPLE: FOOD INDUSTRY
PAIN: The kids are starving, but parents and dad are too tired to cook
USP: “Pizza Delivery in 30 minutes or its free.”
VALUE PROPOSITION (VP)- is a business or marketing statement that summarizes why a consumer should
buy a company's product or use its service.
SLOGAN- is simply a short memorable phrase that companies use in their advertising campaigns.
Example:
BUSINESS SLOGAN
Nike JUST DO IT.
Jollibee Bida ang saya!
Mercury Drug NAKAKASIGURO GAMOT AY LAGING
BAGO
This statement is often used to convince a customer to purchase a particular product or service to add a
form of value to their lives.
In creating Value Proposition (VP), entrepreneurs will consider the basic elements:
 Target Customer
  Needs/opportunity
 Name of the product
 Name of the enterprise/company
EXAMPLE OF VP:
Aling Charing Sari-Sari Store opens only from 6:00 am to 6:00 pm, but Aling Charing noticed that there
are customers who go to a nearby town to look for a convenience store at around 10:00 pm to 6:00 am. She
believes that this is a great opportunity for her store to operate 24/7. In this example, the proposed value
proposition is: “Charing sari-sari Store, open 24/7”. The business describes a sari-sari store – a basic retail store.
The assurance from this value proposition is because of the phrase “open 24/7”, Aling Charing’s sari-sari store
opens 24/7, which makes it different from other competitors.

THE ANATOMY OF THE VALUE PROPOSITION

• Make it easy for customers and prospects to understand and see how it translates to their needs.
• Explain how your product or service solves a problem or improves a situation.
• Explains how you deliver a quantifiable benefit.
• Tells prospects and customers why they should buy from you and not your competitors.

A. TARGET MARKET
TARGET MARKET
A target market is a set of consumers who have been identified by their shared characteristics as the most
likely potential customers for a product.
MARKET IDENTIFICATION
A market identification is a strategic marketing approach and process that is intended to define the specific
customer of the product.
MARKET SEGMENTATION
A market segmentation is an entrepreneurial marketing strategy designed primarily to divide the market into
small segments with distinct needs, characteristics, or behavior.
• Evaluating each segment ensures that your company doesn’t waste resources on segment that won’t buy
your products.
• You have to match the characteristics of the marketing segment to qualities of your product and the
abilities of your company to achieve your sales performance.
Commonly used methods for segmenting the markets:
1. Geographic segmentation – the total market is divided according to geographical location.
Variables to consider:
a. Climate
b. Dominant ethnic group
c. Culture
 d. Density (either rural(malapit) or urban(malayo-based on municipality)) according
to geographical location
2. Demographic Segmentation – is divided based on the demographic variables of the consumers.
Variables to consider:
a. Gender
b. Age
c. Income
d. Occupation
e. Education
f. Religion
g. Ethnic group
h. Family size
3. Psychological Segmentation – the market is divided in terms of what/how customers think and
believe.
Variables to consider:
a. Needs and wants
b. Attitudes
c. Social class
d. Personality trait
e. Knowledge and awareness
f. Brand concept
g. Lifestyle
4. Behavioral Segmentation – divided according to customers’ behavior pattern as they interact with a
company.
Variables to consider:
a. Perceptions
b. Knowledge
c. Reaction
d. Benefits
e. Loyalty
f. Responses
POINTS TO CONSIDER IN SEGMENTATION
• Accessibility of the market- the market must be accessible to the business.
• Size of the market segment- must be large enough to provide wealth to entrepreneurship.
• Distinction of the market segment- must easily differentiate from the total market.
 B. CUSTOMER REQUIREMENTS
Customer requirements are the specific characteristics that the customers need from a product or a service.
There can be two types of customer requirements:
1. Service Requirement
2. Output Requirement

Service Requirement
An intangible thing or product that cannot be touched but the customer can feel the fulfillment.
There are elements in service requirement:
• on-time delivery
• service with a smile
• easy-payment etc.
It includes all aspects of how a customer expects to be treated while purchasing a product and how easy
the buying process goes.
Output Requirements
Tangible thing or things that can be seen. Characteristic specifications that a consumer expects to
be fulfilled in the product. Costumers will avail services as a product, then various service requirements can
take the form of output requirements. For example, if the consumer hires a multi cab, then on-time arrival
becomes an output requirement. Customer buys gadgets (phone speaker) the specification like the loudness and
clarity are the output requirements.

C. MARKET SIZE
The entrepreneur’s most critical task is to calculate the market size, and the potential value that market
has for their start-up business. Market research will determine the entrepreneurs’ possible customers in one
locality.
MARKET SIZE
Market size is the total number of potential buyers of a product or service in a given market and
subsequently the total revenue that these may generate.
METHODS OF STRATEGIC MARKETING:
1. Estimate the potential market – approximate number of customers that will buy the product or
avail your services.
2. Estimate the customers who probably dislike to buy your product or avail the services.
3. The third step is for the entrepreneur to estimate the market share, that means plotting and
calculating of the competitor’s market share to determine the portion of the new venture.

MODULE 4: THE MARKETING MIX (7P’S) IN RELATION TO THE

BUSINESS OPPORTUNITY
THE MARKETING MIX (7P’S) IN RELATION TO THE BUSINESS OPPORTUNITY - it is referring to
the set of actions or tactics that a company uses to promotes is brand or product in the market.
MARKETING MIX- is a set of controllable and connected variables that a company gathers to satisfy a
customer better than its competitor. It is also known as the “Ps” in marketing.
7P’S OF MARKETING MIX
1. Product
2. Place
3. Price
4. Promotion
5. People
6. Packaging
7. Positioning

1. PRODUCTS
• Goods (tangible)
A. Consumer goods- products purchased by individuals for personal or household use.
B. Business goods- products bought by companies or organizations for use in producing other
goods, running operations, or provided services.
• Services (intangible)
A. Consumer services

A. CONSUMER GOODS B. BUSINESS GOODS

Direct DEMAND Derived
Great numbers BUYERS Limited number
Scattered LOCATION OF BUYERS Concentrating in certain regions
Small value PURCHASE Very high amount
Buyer of consumer goods may not BUYER’S KNOWLEDGE Buyer of industrial goods must
have thorough knowledge have complete knowledge of the
goods he buys and uses.
May not always be given REPUTATION Manufacturer is always important
importance in buying industrial goods
Form cash discounts, free gifts, INDUCEMENTS TO BUYERS May not be common in the
etc. are made always by those marketing of industrial goods
marketing consumer goods.
Fashion and style changes AFFECTED BY By technological changes
2. PLACE
• Place represents the location where the buyer and seller exchange goods or services.
• It is also called as the distribution channel
STAGES OF DISTRIBUTION CHANNEL
I. SELLING DIRECTLY TO CONSUMERS
PRODUCER-------- CONSUMER
II. SELLING THROUGH RETAILERS
PRODUCER--------RETAILER--------CONSUMER
III. SELLING THROUGH WHOLESALE
PRODUCER--------WHOLESALER--------RETAILER--------CONSUMER
3. PRICE
• It is the value of money in exchange for a product or service
PRICE IS DETERMINED BY:
1. A buyer is willing to pay,
2. A seller is willing to accept,
3. The competition is allowing to be charged.
REMEMBER!!
A right pricing strategy helps you define the particular price at which you can maximize profits on sales
of your product or service.
THE DIFFERENT PRICING STRATEGIES
• Penetration Pricing- The price charged for products and services is set artificially low in order to gain
market share. Once this is achieved, the price is increased.
• Skimming Pricing- A company charges a higher price then slowly lowers the price to make the product
available to a wider market because it has a considerable competitive advantage.
• Competition Pricing- A pricing method in which a seller uses prices of competing products as a
benchmark instead of considering own costs or the customer demand.
• Product Line Pricing- The practice of reviewing and setting prices for multiple products that a
company offers in coordination with one another. Rather than looking at each product separately and
setting its price, product-line pricing strategies aim to maximize the sales of different products by
creating more complementary, rather than competitive, products. If you offer more than one product or
service, consider the impact that one product's or service's price will have on the others.
• Bundle Pricing- The act of placing several products or services together in a single package and selling
for a lower price than would be charged if the items were sold separately.
• Premium Pricing- Setting the price of a product higher than similar products. The goal is to create the
perception that the products must have a higher value than competing products because the prices are
higher.
• Psychological Pricing- Psychological pricing is the practice of setting prices slightly lower than
rounded numbers, in the belief that customers do not round up these prices, and so will treat them as
lower prices than they really are. This practice is based on the belief that customers tend to process a
price from the left-most digit to the right, and so will tend to ignore the last few digits of a price.
• Optional Pricing- The company earns more through cross-selling products along with a basic core
product. The main product does not have many features (and is priced low) which can be enhanced
through optional or accessory products which are sold at premium by the same company.
• Cost Plus Pricing- Cost plus pricing involves adding a markup to the cost of goods and services to
arrive at a selling price. Under this approach, you add together the direct material cost, direct labor cost,
and overhead costs for a product, and add to it a markup percentage in order to derive the price of the
product.
• Cost Based Pricing- A pricing method in which a fixed sum or a percentage of the total cost is added
(as income or profit) to the cost of the product to arrive at its selling price
• Value Based Pricing- A price-setting strategy where prices are set primarily on consumers' perceived
value of the product or service.