“MODULE 1” “The Concept of Entrepreneurship”
“Importance of Entrepreneurship in Education”
▪ Entrepreneurship as a key driver to our
economy- It focuses in wealth and high
majority of jobs created by small businesses
started by entrepreneurially minded
individuals.
▪ Entrepreneurship is a lifelong learning
process- It started as early as elementary
school and progressed through all levels of
education. Students discover and develop
opportunities and take advantage of these.
▪ Entrepreneurship will energize school
management- School in the area of
entrepreneurship must be accessible,
affordable and accountable of producing
successful students.
▪ Entrepreneurship will transform learners to
be innovators- Learners must be equipped
with perseverance and determination of an
entrepreneurial mindset. They must take
ownership of their own success.
▪ Need for achievement – must have a high
▪ Entrepreneur (Person) – derived from the
French root “entreprendre”, meaning to
begin something and to undertake. Person
responsible for setting up a business or an
enterprise.
▪ Entrepreneurship (Process of action) –
science of converting processed ideas into a ▪
remarkable business venture.
▪ Enterprise (Object) – a business or
company; project that is especially
difficult, complicated or risky.
“Entrepreneurial Competencies”
▪ Locus of control – determine the state to
which a person agreed that their actions can
directly affect a situation or that they can
control a result.
▪ Specific goal settings – Should be
motivated to set goals, particularly business
growth objectives. Goals that are specific,
measurable, and attainable. Realistic and
time-bound.
▪ Self-efficacy – believe in their own ability
or self-confidence.
need for achievement take responsibility for
outcomes.
▪ Layers of competency – universal
competencies occupying the bottom portion
of the pyramid. Specific competencies
located near to the top.
Ambition – must be motivated, persistent,
and persevere even in the face of situational
challenges.
▪ Willingness to learn – often pursue
opportunities to acquire new skills and
competencies.
▪ Strong initiative – they frequently work
independently to achieve task master,
regardless of the extra effort necessary to do
so.
▪ Adaptability and flexibility – must learn how
to be a highly flexible and adaptable often
deal very well with a unique ability to choose
actions even without all necessary
information.
▪ Willingness to take risks – willing to take
consequences, they can also identify and
calculate risk.
▪ Interpersonal skills – They are very insightful
with regards to the behavior of others-
understanding motives and actions, quickly
aware of strong relationships, and both verbal
and non-verbal behaviors.
“Industry wide competencies work
competencies”
1. Networking/collaboration
➢ Ability to build professional relationships.
➢ Perceived as trustworthy
➢ Can negotiate with competitors & identify
mutual goals.
2. Creative/ critical thinking
➢ Easily identify what is missing from current
product streams and have imagination,
creativity and empathy.
➢ Can analyze problems and creative
innovative solutions.
3. Organizing
➢ Plan and prioritize work to ensure time is
managed effectively.
➢ When goals are not met, they take necessary
steps to get projects back-on track.
4. Checking, examining & recording
➢ Ability to maintain confidential records,
easily locate and complete appropriate
forms and paperwork, detect errors and
make necessary corrections.
5. Planning
➢ Must be specific about the direction of their
venture and the strategy they will adopt.
6. Business principles
➢ Must understand the basic principles of
business.
7. Computer competency
➢ Must be competent in the use of basic
computer hardware and software.
8. Workplace competencies
➢ The application of knowledge, skills,
attitudes, values and behaviors in the
workplace.
9. High-Growth, High-Value Entrepreneurship
➢ Entrepreneurs typically offer incentive
compensation, manage business operations,
build a strong entrepreneurial culture
around determination and high work ethic,
and form effective boards of directors and
advisors.
10. Innovation & creation
➢ Apply their creativity to the formulation of
inventive systems and products. They have
an “opportunity orientation”-assessing
changes in trends, identifying small niche or
group of markets, and seeking out
opportunities to improve services and
products.
11. Marketing
➢ Competent in both executing strategies that
promote their products and establish
client/customer relationships. They conduct
market analyses, set pricing objects and
customer objections into sales acceptance.
12. Business operations
➢ Entrepreneurs performs business operations
that are able to both carry out daily
operations, such as scheduling manpower and
maintaining inventories of goods and
management human capabilities.
13. Risk assessment & management
➢ Can handle risk management and can take
into account legal actions.
➢ determine ways to prevent themselves
against failure.
14. Financial management
➢ Competent at accounting and funds
management managing cash flows and
preparing estimated and projected balance
sheets.
15. Problem solving and decision making
➢ They can generate, evaluate, and implement
solutions to difficult problems.
➢ They locate and utilize relevant information,
and when necessary, generate alternative
solutions.
“QUALITIES OF AN ENTREPRENEUR”
1. Disciplined- These individuals are focused on
making their businesses work and eliminate
any hindrances or distractions to their goals.
They have overarching strategies and outline the
tactics to accomplish them.
2. Confidence- The entrepreneur does not ask
questions about whether they can succeed or
whether they are worthy of success. They are
confident with the knowledge that they will make and motivate employees.
their businesses succeed.
3. Open Minded- Entrepreneurs realize that every their work, whether they are in or out of the
event and situation is a business opportunity.
4. Self-Starter- Entrepreneurs know that if
something needs to be done, they should start it They are willing to put in those extra hours to
themselves. They are proactive, not waiting for
someone to give them permission.
5. Competitive- Many companies are formed
because an entrepreneur knows that they can
do a job better than another.
6. Creativity- One facet of creativity is being
able to make connections between seemingly
unrelated events or situations. Entrepreneurs
often come up with solutions which are the
synthesis of other items. They will repurpose
products to market them to new industries.
7. Determination- Entrepreneurs are not
thwarted by their defeats. They look at defeat
as an opportunity for success. They are
determined to make all of their endeavors
succeed, so will try and try again until it does.
8. Strong people skills- The entrepreneur has
strong communication skills to sell the product
9. Strong work ethic- mind is constantly on
workplace.
10. Passion- They genuinely love their work.
make the business succeed because there is a joy
their business gives which goes beyond the
money.
“IMPORTANCE OF AN ENTREPRENEUR”
1. Provides employment to the people.
2. Contributes towards research and development
system- Without the boom of inventions, the
world would have been a much dry place to live
in. Inventions provide an easier way of getting
things done through better and standardized
technology.
3. Creates wealth for the nation and for the
individuals as well- All individuals who search
business opportunities usually, create wealth by
entering entrepreneurship. The entrepreneurs
contribute to the economy, in the form of
products, and services. Their ideas, thoughts, and
inventions are also of a great help to the nation.
 “FUNCTIONS OF AN ENTREPRENEUR”
1. Risk bearing functions
▪ Every business involves some amount of
risk.
▪ The future demand is uncertain and
unpredictable because it is influenced by
the changes in fashion or taste and liking
of the consumers.
▪ Since this unpredictable task is
undertaken by the entrepreneur; he has to
bear the risk.
2. Administrative and decision-making functions
a. Conceiving the Idea of Business- The
entrepreneur conceives the idea of a business
which suits their nature, skill and resources. They work. It, therefore, becomes his responsibility
make a thorough study of the condition of market to make proper allocation of funds for each
and business prospects.
b. Estimation of Details of Business and
Implementation of the Same- what, how and
when to produce and from where the resources
are to be arranged.
c. Supervision and Control of Business
Activities- As the risk (success or failure) of
business operations directly affect the
economy, they keep a vision and control on the
business affairs and avoids unnecessary
expenditures.
d. Innovation- an entrepreneur converts a
material into a resource or combines existing
resources into new and more productive
configurations. It is the creativity of an
entrepreneur that results in invention (creation
of new knowledge) and innovation (application
of knowledge to create the new products,
services, or processes).
3. Distributive functions (responsibility of the
organizer)- The entrepreneur organizes
different factors of production and sets them to
factor of production, i.e., each factor of
production must be properly remunerated.
 MODULE 2: Recognizing a Potential Market
“Business plan does not guarantee the results
you want to accomplish but it’s still a step
closer to making things work in advantage”
“Factors to Consider of a New Entrepreneur”
1. Know your Product or Service
▪ You must believe on the product or service
that you will offer to your customer.
▪ Unique product that would satisfy customers’
needs and wants.
▪ Customers want to try new products but it
must be better than those existing in the
market.
2. Analyze the Market Potentials
▪ The wider the market potential, the more
chances of growth and success.
▪ Entrepreneur must know his needs and wants
and figure out how to satisfy these needs.
▪ Analyze customers’ profile as to their buying
habits, their income, and social status.
3. Determine the Marketing Strategy
▪ A unique product or service needs
effective distribution strategy to get
customer into the basket of demand
potential.
4. Know the Competitors
▪ Know their strength and weaknesses.
▪ Develop new product and marketing
strategy and turn their weaknesses as
new opportunity for your product.
5. Do not set on your Laurels
▪ Develop advertising and promotion
strategy to penetrate the wider market.
▪ Develop budget for expansion and
diversification either horizontally or
vertically.
“Environmental Scanning”
1. Business Location for Small Entrepreneurs
➢ A retail outlet would need a site that is
convenient to prospective customers in
terms of parking space or an availability of
transportation.
➢ In choosing the location, the following
factors must be looked:
a. Rent and Space – the cost of rent is a regular
monthly expense, and it must be sustained with
the possible income that will be generated.
b. Terms of Lease Agreement – the term of
lease must be studied carefully as some owners
of space might take advantage of lessee.
c. Types of Goods or Merchandise – they need
quick and easy access to the store and would not
spend a lot of time to purchase their goods.
d. Income Level of Prospective Customer – a
good barber shop or a beauty salon with facilities
of air conditioning units and other amenities
need to be located in the community with higher
income bracket.
e. Prospective Sales Volume – high density sales
volume need to be located in shopping area
where customers conversed to buy essential
goods.
f. Municipal or City Ordinances including taxes
and fees – the location must not violate city or
municipal ordinances and the taxes and fees must
reasonable for the owners of business.
g. Location of the Area – the area must be free
from floods and other calamities that will
endanger the business.
2. Location for Small Industrial Plant or
Manufacturing Facilities
➢ Environmental factors in locating a
manufacturing plant or industrial facilities
need to be studied carefully.
a. Land Area – the contour of the land, its size,
and shape must be suitable to the plant site.
b. Facilities for Expansion – the land area must
have ample space for plant expansion and
provisions for parking facilities for customers
and employees.
c. Power and Utilities – availability of power
supply and the cost of electricity involve in the
operation are great factors in the production of
goods.
d. Building and Other Utilities – the building
must be within the restriction code of the
municipality or city. the utilities like canteen and
other employees’ facilities must be put in place
in compliance with the labor code.
e. Plant Site Accessibility – the plant site must be
accessible to public or service transport for its
employees and valued customers.
“Strength, Weaknesses, Opportunities and
Threats (SWOT)”
SWOT ANALYSIS- Opportunities carries
with it some risk involved and this should be
look into carefully. The strengths and
weaknesses are internal factors while the
opportunities and threats are external factors.
1. Product Strength in the Market must have
the following:
a. Available Technology in Product Processing
– technology is an important component in
producing the product as the economies of
scale determines the price index.
b. The source of Raw Materials must be
Abundant and at Lower Price – the constant
supply of raw materials is an important factor
in the production of the product.
c. Skilled Workers must be Available –
technology must have component of skilled
workers that shall operate the machineries and
other equipment.
d. Capital Investment in Machinery and
Operating Expenditures – a starting venture
may have little investment in terms of
machinery and equipment but starting with
small capital should generate profitable
operation.
e. Expertise and Technical Skills of the
Management Team – a good product is the
making of a well-conceived idea of the
management team.
2. Characteristics of Weak Products and Weak
Management:
a. Poor quality and High Price – the entrepreneur
should not launch a poor product in the market as
it will surely fail to advance in the sales and
profit.
b. Product Design and Appeal – Product design
should appeal to customers’ demand. Poor
design of the product is the making of people
with no technical expertise in handling customer
wants in terms of features.
c. Product Cost – production cost is the price
determinants. Entrepreneur cannot make
maximum profitability on products whose
production cost cannot survive market
competition.
d. Supply and Demand – intermittent supply to
the market will make customers shift to other
products. The supply chain management must be
put in place to make the products available to
valued customers.
e. Weak Product Management – weak
management is created when people at the top of
the organization fail to sustain a vigorous effort
for expansion and growth.
3. Sustainable Product Opportunities in the
Market:
a. Product Demand- Demand is the
essence of profit and this must be sustained by
the entrepreneur before wide competition
appeared in the marketplace.
b. Presence of Poor Quality in the Market – the
presence of poor quality product in the market
place is an opportunity for the entrepreneur.
c. Government Policies and Support – the
government support to local entrepreneur is an
opportunity for greater expansion.
d. Liberal Credit Terms and Interest Rates –
liberal credit terms by banks and other
government institution will generate expansion
for the local entrepreneur.
4. Treats to Product Profitability and Market
Expansions:
a. Entrance Competition- Competition will
reduce profitability as the price has to be
competitive with those in the market place.
b. The supply of raw materials – will be limited
as other competitors will be getting the same
supplier. Increased production cost means
changes in product price.
c. The Emergence of Leftwing Labor Unions –
Many companies close shops with the advent
of labor unions leftist philosophy as they want
more wages and benefits that the company
could not give.
“Various Factors Required to be considered
while setting up any Small Business”
➢ Who can start a Business?
➢ Anyone can start a small business unit. He
may be an existing entrepreneur or a new
one, having a business background or not
educated or uneducated from rural area or
urban area.
➢ How can I arrange my capital?
➢ The entrepreneur has to analyze and find
out the amount and the duration of finance
required as well as the duration for such
finance is needed in the business.
➢ How can I select the line of right business
for me?
➢ He may go for an existing product or a
new product. Ascertain the profitability of
the business and the amount of capital
investment. entrepreneur has to decide
which line of business could be desirable.
➢ What is the right location for my business?
➢ An entrepreneur can start business in his
own premises or in a rented premise. It can
be located at a marketplace or in a
commercial complex or in an industrial
estate.
➢ How to select your business workforce?
➢ Before starting the business, the
entrepreneur must find out whether he will
be able to get the right type of employees for
the activities involved.
“IMPORTANCE OF POTENTIAL MARKET”
Potential market- part of the market you can
capture in the future. It includes the
demographic groups of customers that will
purchase your product or services in the
future who might become your regular
customers from the expansion of your
business.
Value Proposition
o Value a company promises to deliver to
customers should they choose to buy their
product.
o Part of a company & overall marketing
strategy.
o Presented as a business or marketing
statement that a company uses to summarize
why a consumer should buy a product or use
a service.
o Stands as a promise by a company to a
customer or market segment.
 Module 3: DEVELOPING A BUSINESS
PLAN
“Product: Its Nature and Sustainability”
LEVELS OF PRODUCT
o Tangible Products are the basic physical
appearance.
o Augmented Products include the image and
service features of a certain entity. It gives
emphasis on the intangible benefits that the
customer will be getting from buying the
product.
o Generic Products emphasize the impact of
the product to the consumer, not the seller.
This will signify the purpose of its existence
and the primary objective in creating the
product.
TYPES OF PRODUCT
1. Goods- physical products from the
manufacturer to the consumer of final and
ultimate user.
a. Durable Goods – physical products that are
used over a long period of time and
expensive.
b. Non-Durable Goods- easily consumed and
inexpensive.
2. Services- intangible products that
satisfaction can be measured in future
preferences.
a. Rented-goods services – consumer rented
facility of the sellers in a certain period.
b. Owned-goods services – are the repair and
maintenance services rendered by the sellers to
the products of the customer.
c. Non-good service- personal service on the
part of the seller; most common are the
expertise and profession of the seller.
“Consumer Products”
Goods and services destined/produced for the
final consumer. The use of the goods or
services designated it as a consumer product.
1. Convenience products- purchased with the
minimum or less effort because the buyer has
knowledge of product characteristics prior to
shopping.
a. Staples- low priced items that are routinely
purchased on a regular basis and are products
that are used every day.
b. Impulse products- items that the consumer
does not plan to buy.
2. Shopping products- products that the
consumers acquire through further knowledge
and information to make final purchase decision.
a. Attribute – based shopping products provide
customers with information and evaluated
product features, performance, options,
warranties and other factors.
b. Priced – based shopping products enable
customers to judge product attributes to be the
same and look around for the least expensive
item.
3. Specialty products- the items with particular
brands and stores to which consumers are loyal.
“Industrial Products”
➢ Goods or services purchased for use/
consumption in the production/
manufacturing of other goods or services, in
the operation of a business or for resale to
other customers.
1. Accessory equipment- selected priced portable
goods which last long period of time, requiring a
moderate amount of consumer decision making.
2. Raw materials- unprocessed basic materials
from extractive and agricultural industries.
3. Industrial or operating supplies- inexpensive
convenience goods which are rapidly consumed
and are necessary for the day-to-day operation of
the firm.
4. Component materials- semi-manufactured
goods which undergo further changes in form
and later to be a part of the finished products.
5. Installations- very expensive materials, non-
portable goods which are used in the production
process and do not become part of the finished
product.
6. Fabricated parts- finished products of other
companies which form part of the manufactures
product without further changes in form but
given added feature to make a new product.
“New Product Development Process”
The process consists of two sets:
Internal which looks at the company’s objectives
and resources
External which looks at the customer’s needs and
wants.
“Product Satisfying Features”
➢ Product patronage in the market is
conditioned by the strategies and policies
employed by the manufacturer and the
marketing organization on the product’s
attributes.
1. Design- form of good or service that will
satisfy customers and gain competitive
advantage.
2. Product Colors- It is the customer’s rejection 2. Idea Screening- Ideas together with
or acceptance of the product.
3. Product Quality- features and attributes of a
product or services that determine its ability to
satisfy human needs.
4. Product Warrantees- It is the state where the
buyer is assured that the product meets the
specifications stated in the product labels.
“Best Product for Market Need”
Product Life Cycle concept describes a
product’s sales, profits, customers,
competitors, and marketing emphasis from
its beginning until is removed from the
market.
STAGES OF PRODUCT LIFE CYCLE
STAGE 1. Product Development
1. Ideas Generation – searching and looking for a
new product or business opportunities.
o Brainstorming
o Analyzing Existing Products
o Reading Trade Publications
o Visiting Suppliers’ Facilities
o Surveys
attributes are rated on the basis of a rating from
1-10.
3. Concept Testing – ideas which have passed
the screening stage will now require feedback
from the consumer.
4. Business analysis – is a review of a market
factors, revenues, cost and trends.
o Demand Projections – sales potential;
sales growth; rate of purchase;
distribution intensity.
o Cost projections – per unit cost; raw
materials cost; cost of existing facilities
and resources; breakeven point.
 o Competition – market share of company STAGE 3. Growth
and competitors; strengths and weakness ➢ The product gains wider consumer
of competitors; potential competitors. acceptance and the objective are to expand
o Required investment – engineering distribution and the range of available
patent search, product development, product alternatives.
testing, promotion, production, STAGE 4. Maturity
distribution. The product’s sales level and companies try to
o Profitability – time to recover initial cost; maintain lower price, better product features
per unit profits, distribution for as long as possible. Market is saturated,
intermediaries; control over price; return penetrated and competition is at its highest
on investment level.
5. Product Development – ideas are converts into STAGE 5. Decline
tangible form. The product’s sales falls as substitutes and new
6. Test Marketing – involves a selling of a fully competitors enter the market.
developed product in a selected city and
observing the actual on the spot performance
under the chosen marketing plan.
7. Commercialization – this involves the actual
marketing of the product in the target market.
The different activities to introduce the product
to the market must be presented.
STAGE 2. Introduction
➢ A new product is introduced into the
marketplace and the objectives is to generate
customer interest.