Entrepreneurship Reviewer
Environmental Factors which include political, climate,
Module 1–Introduction to Entrepreneurship
Businesses are the backbone of the economy. Entrepreneurs
play an important role in developing the economy through
providing the needed products and services including the
solution to the problem of unemployment.
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 Organizations - 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.
Concept of Entrepreneurship
The word “entrepreneur” was derived from the French verb
enterprendre, which means “to undertake.” This is
pinpointing to those who “undertake” the risk of enterprise.
The enterprise is created by an entrepreneur and the process
is called
“Entrepreneurship.”
Entrepreneurs are innovators. They are willing to take the
risks and generate unique ideas that can provide profitable
solutions to the needs of the market and the society.
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.
legal system, economic and social conditions and 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-Recognize a Potential Market
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.
Essentials in Entrepreneur’s Opportunity – Seeking
Entrepreneurial mind frame. This allows the entrepreneur to
see things in a very positive and optimistic way in the midst of
difficult situation.
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
1. Changes in the environment
Entrepreneurial ideas arise when changes happen in the
external environment.A person with an entrepreneurial drive
views 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 includes the various forces like
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.
3. Government’s thrust, programs, and policies
The priorities, projects, programs, and policies of the
government are also good sources of ideas.
4. People’s interest
The interest, hobbies, and preferences of people are rich
sources of entrepreneurial ideas, 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.
Forces of Competition Model Substitute – anything that takes the place or function of
another.
It is also known as the “five forces of competition”. An
industry environment is a competitive environment. Suppliers – are the ones who provide something that is
Regardless of what product or services you have, competition needed or wanted.
is always present.
Module3-Recognize and Understand the Market
Competition – it is the act or process of trying to get or win
something. For example, the prices are lower when there is a Value Proposition (VP) - is a business or marketing statement
competition among the stores. that summarizes why a consumer should buy a company's
product or use its service. This statement is often used to
These are the five forces competing within the industry: convince a customer to purchase a particular product or
service to add a form of value to their lives. In creating Value
 Buyers Proposition, entrepreneurs will consider the basic elements:
 Potential new entrants
 Rivalry among existing firms  Target Customer
 Substitute products  Needs/opportunity
 Supplier  Name of the product
 Name of the enterprise/company

Unique Selling Proposition (USP) – refers to how you sell your

DEFINITIONS product or services to your customer. You will address the
Buyers – are the ones who pay cash in exchange for your wants and desires of your customers.
goods and services.  Identify and rank the uniqueness of the product or
Competition – it is the act or process of trying to get or win services character
something.  Be very Specific
 Keep it Short and Simple (KISS)
Entrepreneurial process - can be defined as the steps taken in
order to begin a new enterprise. It is a step-by-step method A. Target Market
one has to follow to set up a business. 1. Geographic segmentation – the total market is divided
Entrepreneurial ideas - an innovative concept that can be according to geographical location.
used for financial gain that is usually centered on a product or  Variables to consider
service that can be offered for money.
a. Climate
Essentials of entrepreneur’s opportunity – seeking – these are
the basic foundation that the entrepreneur must have in b. Dominant ethnic group
seeking opportunities, such as entrepreneurial mind frame,
heart flame and gut game. c. Culture

External environment - refers to the physical environment, d. Density (either rural or urban)
societal environment, and industry where the business 2. Demographic Segmentation – divided based on consumers
operates.
 Variables to consider
Government - refers to the local government (municipality,
city, or provincial) or the national government and its a. Gender
branches.
b. Age
New entrants – the one who enters something.
c. Income
Opportunity – seeking – the process of considering,
evaluating, and pursuing market-based activities that are d. Occupation
accepted to be beneficial for the business. e. Education
Rivalry – is a state or situation in which people or groups are f. Religion
competing with each other.
g. Ethnic group
Sources of opportunity - can be attained by assessing and
looking at changes in the environment; technological h. Family size
discovery and advancement; government’s thrust, programs,
3. Psychological Segmentation – divided in terms of how
and policies; people’s interest, and past experiences.
customers think and believe
 Variables to consider  relevant to the message
 Collect more data
a. Needs and wants  Create more data
b. Attitudes  Take note of interesting or significant data

c. Social class SURVEYS are the most common way to gather primary
research with the use of questionnaires or interview
d. Personality traits schedule. These can be done via direct mail, over the phone,
internet (e.g. Google) or email, face-to-face or on the Web
e. Knowledge and awareness (e.g. Skype or Viber).
f. Brand concept INTERVIEW is one of the most reliable and credible ways of
g. Lifestyle getting relevant information from target customers. It is
typically done in person between the
4. Behavioral Segmentation – divided according to customers’ researcher/entrepreneur and a respondent where the
behavior pattern as they interact with a company. researcher asks pertinent questions that will give significant
pieces of information about the problem that he will solve.
 Variables to consider
Personal interviews are the traditional method of conducting
a. Perceptions an interview. It allows the researcher to establish relationship
b. Knowledge with potential participants and therefore gain their
cooperation. It generates highest response rates in survey
c. Reaction research.
d. Benefits Telephone interviews are less expensive and less time-
consuming, but the disadvantages are that the response rate
e. Loyalty
is not as high as the face-to-face interview, but considerably
f. Responses higher than the mailed questionnaire.

B. Customer Requirements FOCUS GROUP DISCUSSION (FGD) - is an excellent method

for generating and screening ideas and concepts. It can be
Customer requirements are the specific characteristics that moderated group interviews and brainstorming sessions that
the customers need from a product or a service. provide information on user’s needs and behaviors.
There can be two types of customer requirements: Module5-7 P’s of Marketing and Branding
1. Service Requirement The 7 P’s of Marketing Mix
2. Output Requirement There are several important frameworks which you can utilize
for the purpose of marketing your product and services. A
C. Market Size
very crucial structure among these is the “7P’s of Marketing.
The entrepreneur’s most critical task is to calculate the
1. PRODUCT
market size, and the potential value that market has for their
start-up business. Market research will determine the The first P in the Marketing Mix is the Product. Marketing
entrepreneurs’ possible customers in one locality. strategy typically starts with the product. Marketers can’t
plan a distribution system or set a price if they don’t know
Module4-Market Research
exactly what the product will be offered to the market.
Market Research or Marketing Research Process can be
defined as the process of gathering, analyzing and
interpreting the information about the products or the
services to be offered for sale to the potential consumers in
the market

DATA COLLECTION is the most valuable tool in any type of

research study. Inaccurate data collection may cause
mistakes and ultimately lead to invalid results.

TIPS in COLLECTING DATA

 Organize collected data as soon as it is available

 Know what message you want to get across and then
collect data that is
 benefits of their offering to the specific needs of a client.

Promotional Mix

1. ADVERTISING

• Radio

Advertising by means of radio gives the advantage of

selecting the territory and audience to which the message is
to be directed. It is also cheaper than TV advertising.

• Television

This is the latest and the fast-developing medium of

advertising and is getting increased popularity these days. It is
more effective as compared to radio as it has the advantages
of sound and sight. On account of pictorial presentation, it is
more effective and impressive and leaves a lasting impression
on the mind of the viewer.
Today, personal selling involves the development of
• Print longstanding client relationships. Personal selling involves a
selling process that is summarized in the following Five Stage
The print media carry their messages entirely through the Personal Selling Process. The five stages are:
visual mode. These media consist of newspapers, magazines
and direct mail. • Prospecting
• Electronic • Making first contact
You can also advertise electronically through your company • The sales call
website and provide important and pertinent information to
clients and customers. You can protect some parts of your • Objection handling
website through passwords and give access to member • Closing the sale
customers. You can also send advertisements via direct e-mail
as part of your promotional strategy. 4. SALES PROMOTIONS

• Word of Mouth Sales promotion is any initiative undertaken by an

Word-of-mouth advertising is important for every business,
as each happy customer can steer dozens of new ones your
way. And it's one of the most credible forms of advertising
because a person puts their reputation on the line every time
they make a recommendation and that person has nothing to
gain but the appreciation of those who are listening.
• Generic
The promotion of a particular commodity is without
reference to a specific producer, brand name or
manufacturer. Producers join together to expand total
demand for the commodity, thereby helping their own sales.
These activities are often self-funded through assessments on
marketing called check-off programs.
2. PUBLIC RELATIONS OR PR
In public relations, the article that features your company is
not paid for. The reporter, whether broadcast or print, writes
about or films your company as a result of information he or
she received and researched.
3. PERSONAL SELLING
organization to promote an increase in sales, usage or trial of
a product or service (i.e., initiatives that are not covered by
the other elements of the marketing communications or
promotions mix).
Sales Promotion Technique
• Free Gifts
There are many ways to utilize this particular sales promotion
technique. A newly opened store, for example, may offer the
first 10 customers free items worth 100 pesos.
• Free Samples
Providing free samples is a technique used to introduce new
products to the marketplace. Samples give the consumer a
chance to see how well they like a product or try something
they otherwise would not normally buy.
• Free Trial
A free trial is a way for a consumer to try a new product while
eliminating risk. It may be used when a product is unique to
the marketplace.

Personal selling occurs when an individual salesperson sells a • Customer Contests

product, service or solution to a client. Salespeople match the
Contests offer the customer a chance to win prizes like cash
or store merchandise.
• Special Pricing
Special pricing is used to offer consumers a lower price for a
period of time or to purchase in multiple quantities. For
example, a retailer may offer a product that normally costs 35
pesos at a price of 3-for-100-pesos during the promotional
period.
5. DIRECT MARKETING
Direct marketing is a promotional method that involves
presenting information about your company, product, or
service to your target customer without the use of an
advertising middleman. It is a targeted form of marketing that
presents information of potential interest to a consumer that
has been determined to be a likely buyer.
Forms of Direct Marketing
Brochure Catalogs Fliers Newsletters Post cards
Coupons Email Phone calls Text messages
5. PEOPLE
The fifth P in the Marketing mix is People. Your team, the
staff that makes it happen for you, your audience, and your
advertisers are the people in marketing. This consist of each
person who is involved in the product or service whether
directly or indirectly.
6. PACKAGING
Packaging is the sixth P in the Marketing Mix. Packaging is a
silent hero in the marketing world. Packaging refers to the
outside appearance of a product and how it is presented to
the customers.
Five Basic Functions of Packaging
1) Protection:
One of the major functions of packaging is to provide for the
effects of time and environment for the natural and
manufactured products. The protection function can be
divided into some classes.
A. Natural deterioration:
It is caused by the interaction of products with water, gases
and fumes, microbiologic organisms like bacteria, yeasts and
molds, heat, cold, dryness, contaminants and insects and
rodents.
B. Physical protection:
The packaging is also used for physical protection, which
include improving shock protection, internal product
protection and reducing shock damage caused from
vibration, snagging, friction and impact.
C. Safety:
A special kind of protective packaging is required for products
that are deemed harmful to those who transport them or use
them. These products include extremely inflammable gas and
liquid, radioactive elements, toxic materials etc. The
packaging should also be done so that children could not
easily use or dispose them.
D. Waste reduction:
Packaging also serves to reduce the amount of waste
especially in case of food distribution.
5) Promotion:
Companies use attractive colors, logos, symbols and captions
to promote the product that can influence customer
purchase decision.
Packaging Decisions:
i. Packaging concept:
This defines what the package should be or do for
the particular product in terms of size, shape,
materials, color, text, and brand mark and
tamperproof ability
ii. Engineering tests:
This will ensure that the package stands up under
normal conditions
iii. Visual tests:
This is to ensure that the script is legible and colors
are harmonious
iv. Dealer tests:
This is to ensure that the dealers find the packages
attractive and easy to handle
v. Consumer tests:
This is to ensure favorable consumer response
7. POSITIONING
Finally, the seventh P in the Marketing Mix is Positioning.
When a company presents a product or service in a way that
is different from the competitors, they are said to be
“positioning” it. Positioning refers to a process used by
marketers to create an image in the minds of a target market.
 b. Intentional. This way focuses on fulfillment as it
relates to the capability to generate money and do
well in the world.

2) Consistency

The significance of consistency is to avoid things that don’t

relate to or improve your brand. Consistency aids to brand
recognition, which fuels customer loyalty.

How to Create an Effective Market Positioning Strategy?
1. Determine company uniqueness by comparing to
competitors Compare and contrast differences between your
company and competitors to identify opportunities. Focus on
your strengths and how it can exploit these opportunities.
2. Identify current market position
Identify your existing market position and how the new
positioning will be beneficial in setting you apart from
competitors.
3. Competitor positioning analysis
Identify the conditions of the marketplace and the amount of
influence each competitor can place on each other.
3) Emotion
There should be an emotional voice, whispering "Buy me".
This means you allow the customers to have the chance to
feel that they are part of your brand.
4) Flexibility
Marketers should remain flexible too in this rapidly changing
world. Consistency targets at setting the standard for your
brand, flexibility allows you to adjust and differentiate your
approach from your competition.
5) Employee Involvement
It is equally important for your employees to be well versed
in how they communicate with customers and represent the
brand of your product.

4. Develop a positioning strategy 6) Loyalty

Through the preceding steps, you should achieve an
understanding of what your company is, how your company
is different from competitors, the conditions of the
marketplace, opportunities in the marketplace, and how your
company can position itself.
Developing a Brand Name
Brand Name is a name, symbol, or other feature that
distinguishes a seller's goods or services in the marketplace.
Loyalty is an important part of brand strategy. At the end of
the day, the emphasis on a positive relationship between you
and your existing customers sets the tone for what potential
customers can expect from doing business with you.
7) Competitive Awareness
Do not be frightened of competition. Take it as a challenge to
improve your branding strategy and craft a better value in
your brand.

Branding is a powerful and sustainable high-level marketing

strategy used to create or influence a brand. Branding as a
strategy to distinguish products and companies and to build
economic value to both customers and to brand owners, is
described by Pickton and Broderick in 2001.

Commonly Used Branding Strategies

1) Purpose

"Every brand makes a promise. But in a market in which

customer confidence is little and budgetary observance is
great, it’s not just making a promise that separates one brand
from another, but having a significant purpose," (Allen
Adamson).

a. Functional. This way focuses on the assessments

of success in terms of fast and profitable reasons.
For example, the purpose of the business is to make
money.