ENTREPRENEUR REVIEWER
Entrepreneurs have a talent for recognizing an opportunity
ENTREPRENEURSHIP
entrepreneur originates from the French word, entre which
means “between” and prendre, which means “to undertake.”
In a business context, it means to start a business.
ACADEMIC DEFINITION (Stevenson & Jarillo)
Entrepreneurship is the process by which individuals pursue
opportunities without regard to resources they currently
control
VENTURE CAPITALIST (Fred Wilson)
Entrepreneurship is the art of turning an idea into a
business.
 Proactive process of developing a business venture
to make a profit.
 It involves seeking opportunities for a market,
establishing, and operating a business out of the
opportunity, and assessing its risks and rewards
through close monitoring of the operations.
THE SOCIETAL AND ECONIMIC BENEFITS OF
ENTREPRENEURSHIPS
1. produces more jobs that equate to an increase in
national income.
2. amplifies economic activities of different sectors of
society.
3. introduces new and innovative products and
services.
4. improve people’s living standards.
5. disperses the economic power and creates equality.
6. controls the local wealth and balances regional
development.
7. reduces social conflicts and political unrest.
8. elicits economic independence and capital formation
The three primary reasons that people become
 entrepreneurs and start their own business
1. Desire to be their own boss
2. Desire to pursue their own ideas
3. Financial rewards
Common and Core Competencies in
Entrepreneurship
 To be considered a successful entrepreneur, he or
she must posses' common entrepreneurial
competencies that are needed all throughout the
entrepreneurship career and core competencies that
are needed for business sustainability and
management.
Here are the common traits that entrepreneurs
should always have:
Proactive
Entrepreneurs are reactive rather than passive. They ensure
that proper research is done, the risk factors are assessed,
and plans are executed on a timely and most efficient.
Agents of Change
Entrepreneurs are innovation champions. They are always
enthused to improved and develop new products and services
and introduce them to the market.
Risk Taker
By taking risks, entrepreneurs do not just grab opportunities
left and right but by taking into consideration potential various
threats they may encounter. If they think that there is a big
chance of succeeding, they push through with the venture and
don’t let the opportunity pass.
Have a sharp eye for opportunities
even by using the macro level data only. They know how to
assess the net cause and effect of an opportunity and decide
intelligently if a venture should be considered or not.
Sociable
Soft skills are one of the most important competencies of
entrepreneurs as these establish the relationship with the
most important assets of the company – its people and its
customers.
Networkers
A network knows the key people to connect with. Successful
entrepreneurs gain trust of their valuable network and
maintain a long-lasting relationship with them.\
Decisive
Entrepreneurs always have a decision about their business.
They do not settle for gray areas or unclear solutions. They
make sure that all aspects of their business have clear
objectives and strategies. They also base their decisions on
scientific calculations backed up by their experience and
technical knowledge.
Balanced
The minds of entrepreneurs should have a balance between
the analytical and the creative side. Entrepreneurs always
have “Eureka!” moments and enjoy them.
Innovative
The minds of Entrepreneurs are rich with big ideas that can
add value to their existing business or could become a game
charger in the industry or business where they belong.
Leaders
Successful entrepreneurs always have the heart of a leader.
To be successful leaders, they must be a source of inspiration
for their employees.
Communicator
Entrepreneurs know how to use all forms of communication to
effectively share ideas and address certain concerns with their
customers or employees.
Specialists
Entrepreneurs know how to use all forms of communication to
effectively share ideas and address certain concerns with their
customers or employees.
Problem Solver
Entrepreneurs possess critical thinking skills and look at
problems as challenges or puzzles that they need to solve.
Entrepreneurship and Employment
two different career paths that a person can choose
depending on his or her personal aspirations and work
characteristics. It is up to the person at the end of the day on
what career trail he or she will follow, considering all
compelling career factors that are important to him or her.
 What are the Pros and Cons of Entrepreneurship  Has a flexible schedule and can take unlimited
and Employment number of vacation days
EMPLOYEE
 Has a limited number of vacation days imposed by
Income
the employer
ENTREPRENEUR
 Income generated passively even when the
TYPES OF BUSINESS
entrepreneur is resting.
Identifies how you take part in the business field that you
 Opportunity income unlimited, depending on the
choose. Your personal characteristics and your available
success of the business.
networks often guide you into a suitable type of business
 Income only earned when the business is successful.
EMPLOYEE There are three types of business according to activities:
 Income generated actively (no work no pay, working
Services
per/hr. rate)
Service providers are people whose businesses sell a
 Income usually fixed/month and increases every
particular service, such as transportation, tours, hairdressing,
year depending on the employer and employee’s
banking, deliveries, construction, repairs, cleaning, painting,
performance • Income earned whether the business
nursing, etc.
is successful or unsuccessful

Hiring and Firing, Organizational Setup, and Major Manufacturing

Manufacturers are business that use new raw materials, such
Key Result Areas
as leather, waste material, wood, cloth, or metal and make
ENTREPRENEUR new or different products out of those materials.
 Provides jobs; owner usually have all the right to
conduct the selection
Merchandising
 Fully responsible for serving customers, employees
Merchandising is a business that sells tangible products. This
and sustaining the business profitability
type buys finished goods or almost finished goods from their
 Has the power to disengage nonperforming
suppliers and resell the same to customers.
employees
 Can venture into expansion of business
There are two types of merchandising business:
EMPLOYEE
wholesaling
 Seek for a job and follow series of process before
Wholesalers are businesses that buy large quantities of
hiring
certain goods from manufacturers and resell those goods to
 Has the goal of satisfying the immediate supervisor
retail outlets, who then resell them to individual consumers.
 Fully dependent on employer’s performance
 Can only work for the current employer exclusively
Retailing
Daily Task
Retailers purchase ready-made goods from wholesalers or
ENTREPRENEUR suppliers for resale at a profit.
 Performs all necessary variable to establish and
manage a startup business; give all his time in the
ENTREPRENEURIAL PROCESS
business and sometimes gets no sleep.
A step-by-step procedure in establishing any kind of business
 Prepares policies, procedures, and memoranda for
that an entrepreneur has to undergo.
the business.
EMPLOYEE
Opportunity spotting and assessment
 Has routine tasks and works on regular or normal
 beginning of the process and the most difficult
hours
 take note of interesting trends
 Follows policies, procedures, and memoranda from
 find sources of opportunity information
the employer
Taxation
Developing a business plan.
ENTREPRENEUR A business plan is a comprehensive paper that details the
 Taxed on the net income; can claim taxable income marketing, operational, human resource, financial strategic
deductions for allowable expenses incurred by the direction, and tactics in business.
business
EMPLOYEE Determining the capital needed.
 Taxed on the gross income; cannot use expenses It is mandatory in the entrepreneurial process to calculate the
incurred related to job such as food and resources needed to establish the business and compare this
transportation expenses to claim for deductions from process against the entrepreneur’s current resources.
taxable income
Comfort Level of Work Running the business.
ENTREPRENEUR The business plan should already have been implemented.
 Is comfortable in doing multiple and challenging
tasks and takes accountability with the risks and Scanning the Marketing Environment
profits of the business starting point of any new venture that involves understanding
EMPLOYEE and knowing the intricacies of the macroenvironment and
 May be comfortable with routines and minimal risks microenvironment.
Leisure Time and Vacations
ENTREPRENEUR
FIND THE OPPORTUNITY FIRST BEFORE COMING UP
WITH A NEW PRODUCT OR SERVICE, NOT THE OTHER
WAY AROUND.
3’s of Opportunity Spotting and Assessment
A framework that most of the promising entrepreneurs use to
finally come up with the ultimate product or service suited for
a specific opportunity.
The entrepreneur should say NO to an opportunity
if it does not contain any of these business
opportunity elements:
 Has superior value to customers.
 Solves a compelling problem, issue, a need, or a
want
 Is a potential cash cow
 Matches with the entrepreneur’s skills, resources,
and risk appetite.

S1: SEEKING THE OPPORTUNITY S3: SEIZING THE OPPORTUNITY

The first step and is the most difficult process of all due to the
Opportunity Seizing is the last step in opportunity spotting and
number of options that the entrepreneur will have to choose
assessment. This is the “pushing through” with the chosen
from. It involves the development of ideas from various
opportunity. The entrepreneur’s idea can be any type of
sources as follows:
innovations listed here.

MACROENVIRONMENTAL Innovation
1. STEEPLED
is the process of positively improving an existing product or
2. Industry
service. It is a key driver for economic growth.
3. New discovery or knowledge
4. Futuristic opportunities
There are three types of innovations according to the
MICROMARKET degree of distinctiveness.
1. Consumer preferences, interests, and perception
Breakthrough innovation
2. Competitors
These inventions occur infrequently as these establish the
3. Unexpected opportunities from customers
platform on which future innovations in an area are developed.
4. Talents, hobbies, skills, and expertise
These innovations must be protected by a patent, a trade
5. Irritants in the marketplace such as deterrents,
secret, or a copyright.
problems, complaints, and delays.
6. Location Technological innovation
These innovations occur more frequently than breakthrough
STEEPLED Analysis
innovations. These innovations are technological
Socio-cultural Factors advancements of an existing product or service.
represent a general view of a locality’s traditions, customs,
Ordinary innovation
beliefs, norms, and perceptions.
These innovations occur ordinarily as the name implies. They
are commonly originating from market analysis and
Technological Factors technology pull instead of a technology push.
composed of innovations of an existing technology or an
 Technology push
invention of a new one mostly on applied science and
- is when research and development in new
engineering research areas.
technology drives the development of new products.
It tends to start with a company developing an
Economic Factors innovative technology and applying it to a product.
has a direct effect on any business venture.
 Technology pull
- refers to the need/requirement for a new product or
Environmental or Ecological Factors a solution to a problem, which comes from the
will help the entrepreneur determine if the business he or she marketplace. A product or a range of products are
is entering into will comply with the environmental standards developed, to solve the original need.
or will just hazard to people, animals, and nature.
The last process, called the seizing process, involves
Political Factors refining and developing this opportunity. The refining process
induced by the government policies and administrations. is called product or service planning and development
process.
Legal Factors
Government laws and regulations that can restrict or allow It has four key stages.
business activities. 1. Idea stage – Identify the feasible products and/or
services that will perfectly suit the opportunity.
Ethical Factors 2. Concept stage – The developed idea will undergo a
factors that will serve as entrepreneur’s guides on how to be consumer acceptance test. This test includes getting
ethical in running the business. the initial reactions of the primary target market and
the distribution channel. Both favorable and
Demographic Factors unfavorable results will be considered to devise an
these are the characteristics of the people in the target market. acceptable product or service.
3. Product development stage – The entrepreneur
S2: SCREENING THE OPPORTUNITY will conduct a consumer panel where the actual
Opportunity Screening is the process of cautiously selecting product or service samples will be given to potential
the best opportunity. customers for criticism purposes. They are also
given samples of competitors’ products or services
for comparative purposes.
 4. Test marketing stage – This stage validates the
work done from the first three stages to measure
success in the commercialization of the product or
service.
VALUE PROPOSITION
simply states why a customer should buy a certain product or
service. It is the major driver in customer purchase or service
availment.
Tagline
 brief phrase used to relay a brand’s value.
 It creates a lasting impression on consumers.
Slogan
 attention-grabbing statement used to advertise.
 These phrases share the business reason for
existing
 often use a combination of persuasion and
description
CUSTOMER REQUIREMENT
 are specific features and characteristics that the
customers need from a product or service.
 vary from person to person! The Entrepreneur must
group them together, calculate their size, and come
up with products and services that suit their
customers. Customers
 are said to be the lifeblood of the business.
 is the voice of every business that every
Entrepreneur should listen to.
TARGET MARKET
 A specific group of consumers at which a company
aims its products and services.
 It is a group of people considered likely to buy a
product or service.
Primary Target Market
 a specific group of consumers you want to attract to
your product or service.
 This market accounts for the highest volume of sales
and are most likely to buy now!
 This market shares common characteristics and
behaviors.
Secondary Target Market
 The secondary target market includes future primary
buyers, which are those buying at a higher rate within
a small market segment and are those who influence
primary buyers.
 Their characteristics and buying behaviors usually
differ from those of the primary target market.
KNOW YOUR CUSTOMERS
Marketing Research
a comprehensive process of understanding the customers’
intricacies and the industry they revolve in. - It aims to
scrutinize the target market, their specific requirements, and
the market size where the business operates.
“MARKETING IS THE PROCESS OF CONTINUOUSLY AND
PROFITABLY SATISFYING THE TARGET CUSTOMER’S NEEDS,
WANTS AND EXPECTATIONS SUPERIOR TO THE
COMPETITION.”
MARKET SIZE
is the size of the arena where the entrepreneur’s business will
play. It is the approximation of the number of buyers and
sellers in a particular market
MARKET SEGMENTATION
is the process of dividing a market of potential customers into
groups, or segments, based on different characteristics.
THE MARKETING MIX
The set of actions, or tactics, that a company uses to promote
its brand or product in the market. The combination of
marketing components that will maximize customer
satisfaction and ensure PROFITS.
THE 7PS OF MARKETING
USES OF THE 7Ps MODEL
 Conduct a situation analysis
 Set objectives
 Conduct a strength, weakness, opportunity, and
threat (SWOT)
 Come up with marketing strategies and tactics
PRODUCT
- Any physical good, service, or idea that is created by an
entrepreneur or an innovator in serving the needs of the
customers and addressing their existing problems
PLACE
- it refers to a location or the medium of transaction. It also
covers the product distribution and the whole business
logistics.
- To make the product conveniently available to the target
market consistent with their purchasing pattern.
PRICE
- It is the peso value that the entrepreneur assigns to a certain
product or service after considering its costs, objectives,
positioning, and target market.
- It is the only P in the 7Ps that generates revenues for the
business.
Price Strategies
1. Bundling – This refers to two or more products or services
in one reduced price.
2. Penetration Pricing – This refers to setting low prices to
increase market prices, but the entrepreneur will eventually
increase the price once the desired market share is achieved.
3. Skimming – This is the opposite of penetration pricing
where prices are initially high and then they are lowered to
offer the product or service to a wider market.
4. Competitive Pricing – This refers to the benchmarking
prices with the competitors.
5. Product Line Pricing – This refers to pricing different
products or services within a parallel product array using
varying price points.
6. Psychological Pricing – This considers the psychology
and positioning of price in the market.
7. Premium Pricing – This refers to setting a very high price
to reflect elitism and superiority
8. Optional Pricing – This refers to adding an extra product
or service on top of the original to generate more revenue
9. Cost-Based Pricing – The basis of markup is the cost of
sales.
10. Cost Plus Pricing – The markup is based on a certain
percentage of cost.
2 CLASSIFICATIONS OF COSTS
 Variable Costs or Controllable Costs
these costs are directly proportional to the number of products
manufactured or to the number of services performed. (Raw
materials used)
Fixed Costs or Uncontrollable Costs
These costs are not directly proportional to the manufacturing
of a product or to the performance of the service. (Cost of
equipment, rental cost, and utilities)
FUNDAMENTALS OF BRAND MANAGEMENT
 A brand refers to the identity of a company, of a
product, of a service, or of an entrepreneur himself
or herself.
 A brand is a symbol of promise or assurance from
the entrepreneur that what it purports to the
customers will happen.
 Brand management is the supervision of the tangible
and intangible elements of a brand.

PROMOTIONS Branding is the process of integrating the strategies formed

It involves presenting the products or services to the public from the marketing mix to give an identity to the product or
and how these can address the public’s needs, wants, service.
problems, or desires. The primary target market will become
the main audience.  Establishing to target customers that the business is
reliable and trustworthy, and that the product or
service is the superior solution to their current
Promotional Tools problem.
1. Advertising - This a type of communication that  Differentiating with competitors
influences the behavior of a customer to choose the  Driving customer loyalty and retention
product or service of the entrepreneur over the
competitors. - Informing, educating, and familiarizing
A brand name must possess the following
the public with the product and service offerings -
Building a trustworthy image - Increasing the sales characteristics:
 Unique
FORMS OF ADVERTISING
 Easy to remember
 Television – regular channels,  Can be converted to other dialects or languages in
cable TV case the entrepreneur expands to other territories
 Radio – AM and FM radio  Positive and inspiring
 Internet – e-mails, websites,  Extendable
blogs, social media  Can describe the benefits of the product or service
 Mobile phones – test messages,  Can describe a product strategy
mobile applications  Can describe concrete qualities
 Print – newspapers, magazines,
flyers, directories, signages,
posters
2. Selling – this is the act of trading a product or service
for a price or a fee.
3. Sales Promotions – These are the short-term
promotional gimmicks wherein practical incentives
and appealing activities are incorporated to entice
the customers to buy the product or avail of the
service.
4. Public Relations – These are the image-building
initiatives of the entrepreneur to make the name of
the business reputable to stakeholders, such as
target customers, government agencies, business
partners, media, and the public.

PEOPLE
It is one of the additional Ps in the marketing mix. It is not just
about the quality of products, but how employees serve
customers.

PACKAGING
It is how the product or service is presented to customers. It is
the overall identification (look and feel) of the product or
service.

PROCESS
- It is the last addition in the marketing mix as marketers began
to realize the importance of the internal and external
operations of the business to serve customers better.

- It is defined as a step-by-step procedure or activity workflow

that the entrepreneur or employees follow to serve customers
effectively and efficiently.