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Entrepreneur 1 - Grade 12
Entrepreneur 1 - Grade 12
SUBJECT : ENTREPRENEURSHIP
MODULE TITLE : Planning the Enterprise
MODULE NO. :1
NOMINAL DURATION : 4 Hours
LEARNING OBLECTIVES:
At the end of the lesson, the students shall be able to:
1. define entrepreneurship; and
2. discuss the contents of a business plan,
MODULE CONTENT:
Entrepreneurship - the capacity for innovation, investment and expansion in new markets products and
techniques (Prof Nathaniel Left).
-this implies that an enterprise is at work whenever an individual takes the risks and invest
resources to make something unique or something new, designs a new way of doing something that
already exists or creates new markets.
-innovation – creation of something new or something different, this distinguishes
entrepreneurship from other activities
- “Entrepreneurship is more than a word. It is a mission. We must perceive opportunities
inherent in change; we must create a desire for pursuing the opportunities that arise; and we must
create an environment in which success is possible and the consequences of failure are tolerable.” Prof
Hirsh
Contributions of Entrepreneurs
1. Develop new markets
-markets are people who are willing to satisfy their needs (called effective demand in
economics)
-they can create customers and buyers
2. Discover new sources of materials
-entrepreneurs, due to their innovative nature persists on discovering new sources of materials
to improve their enterprises
-those who can develop new sources of materials enjoy a comparative advantage in terms of
supply, cost and quality
3. Mobilize capital resources
-entrepreneurs are the organizers and coordinators of the major factors of production such as
land, labor and capital
-have initiative and self-confidence in accumulating and mobilizing capital resources for new
business and business expansion
4. Introduce new technologies, new industries and new products
-innovators and reasonable risk takers, take advantage of business opportunities, and transform
these into profit
-new technologies and new products intended to satisfy human needs in a more convenient and
pleasant way
5. Create employment
- the private sector is the biggest employer, millions of jobs are provided by factories, service
industries, and the numerous small-scale enterprises
- such massive employment has multiplier and accelerator effects on the whole economy
- more jobs mean more income which increases demand that stimulates production and the
cycle goes on
Business Plan
-guide used by entrepreneurs who plan to enter any business endeavor
-written prior to setting up an enterprise
-some are written during the first few years of the enterprise in order to guide the entrepreneur
on which strategies would be most beneficial for the enterprise to take
-some are focused on bringing the enterprise to a higher level of growth, a period where the
enterprise has already reached its peak and would want to enter into another endeavor by recreating
and re-establishing itself
-it serves many masters; the entrepreneur, the investors and cautious financiers, and the
managers and staff of the organization
-the following format may be a good start for an entrepreneur in getting his business plan
organized
I. Introduction
A. The Business Concept and the Business Model
B. The Business Goals: Vision, Mission, Objectives and Performance Targets
C. The Business Offering and Justification
II. Executive Summary
III. The Business Proponents: Organizers with their Capabilities and Contributions
IV. The Target Customers and the Main Value Proposition to the Customer
V. The Market, Market Justification based on the Industry Dynamics and the Macro
Environmental Factors Affecting the Opportunities and Threats in the Market, the Size, the
Potential and Realistic Share of the Market
VI. The Product and Service Offerings
VII. The Enterprise Strategy and Delivery Systems: Business Competitiveness
VIII. The Financial Forecasts and Expected Returns, Risks and Contingencies
IX. Environmental and Regulatory Compliance
X. The Capital Structure and Financial Offering: Return and Benefits to Investors, Financiers,
and Business Partners
MISSION: “to provide quality food and passenger convenience services that would generate
sufficient profits for the stockholders and improve the lives of its employees”
OBJECTIVES: (more specific than the vision and mission, measurable, achievable and time-bound
end results)
1. to establish a strong market presence in Central Luzon
2. to earn good financial returns for its owners
3. the delight customers with high quality food and services; and
4. to make Double Happiness a happy and rewarding place to work in
The objectives should then be translated into key result areas or KRAs which are the
qualitative manifestations that the objectives are being achieved. In turn, the KRAs must be
rendered into qualified performance measurements, otherwise called as performance
indicators.
Performance indicators serve as the aspirational scorecard of the enterprise managers
and the motivational results of the investors. Performance indicators must actually be
credible to the business audience in mind.
Illustration:
Objectives Key result areas Performance indicators
2021 (now) 2022 (one 2027 (five
year later) years later)
1.To establish a a. Number of food 3 5 20
strong market outlets in major bus
presence in Central terminals in Central
Luzon Luzon
b. Sales volume attained 7 million 13 million 60 million
c. Market share in 2% 3% 12%
Central Luzon
2.To earn good a.amount of net profits 1 million 2 million 10 million
financial returns for realized for the next five years
its owners b.return on equity (ROE) 30% 40% 605
c.return on assets(ROA) or 15% 20% 30%
return on investment(ROI)
d.return on sales(ROS) 14% 15% 16%
III. The Business Proponents: Organizers with their Capabilities and Contributions
Four types of business proponents or stakeholders
1. Resource mobilizers and financial backers
2. Technology providers and applicators
3. Governance and top management
4. Operating and support team
IV. The Target Customers and the Main Value Proposition to the Customer
Target audience/target costumers - must be sufficient in size, paying capacity and interest to
purchase the products being offered by the enterprise
Main value proposition – unique selling proposition of the enterprise
V. The Market, Market Justification based on the Industry Dynamics and the Macro Environmental
Factors Affecting the Opportunities and Threats in the Market, the Size, the Potential and
Realistic Share of the Market
-the business plan should estimate the total market supply and demand for the product
offerings of the enterprise and should determine the major critical factors that influence this
market demand and supply
-discuss the relevant industry dynamics such as the competing enterprises in the industry and
their comparative advantages and disadvantages; suppliers in the industry and their capabilities
and bargaining power; channels of distribution used by the industry and how effective these are
-business plan should discuss the major trends and changing patterns in the macr0-
environment which includes the social environment, political environment, economic
environment, ecological environment and technological environment
VIII. The Financial Forecasts and Expected Returns, Risks and Contingencies
-the business plan must translate everything discussed so far into financial forecasts and
outcomes
-the important return calculations are the following:
a. expected return on sales
b. expected return on assets or investments
c. expected return on stockholders’ equity
X. The Capital Structure and Financial Offering: Return and Benefits to Investors, Financiers, and
Business Partners
-include some discussion on who the investors, the financiers and the partners of the enterprise
-business plan must appeal to its target audience; it must highlight for them the main features
of the business plan that they are looking for
REFERENCES:
Prepared by:
Ms. Necie Mae Agana
Mrs. Venancia Banguisan
Mrs. Loida Nadiahan
Mr. Jhun Piza
EVALUATION/ASSESSMENT/PERFORMANCE TASK:
DATE SUBMITTED:________________________________
NAME OF STUDENT:_______________________________
STRAND:________________________________________
MODULE NUMBER: 1 ENTREPRENEURSHIP
Identify the following. Write your answer neatly on the space provided. 2 points each
___________________________1. It defines the governance system of the country or the local area of
business.
___________________________2. the capacity for innovation, investment and expansion in new
markets products and techniques.
___________________________3. it serves many masters; the entrepreneur, the investors and cautious
financiers, and the managers and staff of the organization
___________________________4. These are more specific goals that are measurable, achievable and
time-bound.
___________________________5. contains the essence of the enterprise in a concise but powerful
manner
___________________________6. These are the resources mobilized
___________________________7. These are marketed to customers or experienced by costumers.
___________________________8. These serve as the aspirational scorecard of the enterprise managers
and the motivational results of the investors.
___________________________9. Builds and develops the game plan for attaining competitiveness.
___________________________10 creation of something new or something different
___________________________11. The entire process of converting resources into output and into
outcomes.
___________________________12. This process converts input to output.
___________________________13. The unique selling proposition of the enterprise
____________________________14. it is a synthesis of the entire business plan
____________________________15.it is mainly driven by supply and demand forces.