COURSE CODE & TITLE : FINE1 ENTREPRENEURIAL MANAGEMENT LESSON

NUMBER : 1 TOPIC 1 : CONCEPT OF ENTREPRENEURSHIP

LESSON PRESENTATION
The process of discovering a new venture with creativity and innovation is called
entrepreneurship. Entrepreneurship requires the assumption of risk and reaping of awards. It
brings resources together and provides an option for self-employment to an individual.
Entrepreneurship also creates employment opportunities for others.

Entrepreneurship is a complex term that’s often defined simply as running your own
business. But there’s a difference between a “business owner” and an “entrepreneur,” and
although one can be both, what distinguishes entrepreneurship is a person’s attitude.

Entrepreneurship is the key driver of a dynamic company and involves the recognition
and evaluation of opportunities, where that means increasing the value of an existing product or
service or creating mass markets with new technology.

ENTREPRENEURSHIP
● It is a science of converting processed ideas into a remarkable business venture.
● According to Fajardo (2009), It is also a capacity for innovation, investment, and
expansion in the new market, products, and techniques.

What Is an Entrepreneur?
Employees work for someone else’s business.
Entrepreneurs start their businesses and work for themselves.

THE ENTREPRENEUR
• An entrepreneur is an individual who is alert to profitable opportunities for the exchange of
goods or services,

• An entrepreneur is one who organizes, manages, directs, and assumes the risks of a
business or enterprise.
THE ENTREPRENEURIAL SKILLS AND COMPETENCIES The Entrepreneur as a
Missionary
● The entrepreneur is a missionary who perceives opportunities inherent in the exchange of
goods with a great desire for profit.
● The entrepreneur creates an environment in which success is possible and the possibility
of failure is controllable.
● The entrepreneur is at work whenever he takes risks and invests his talents and
resources to make something new or different as customers like to buy new and improve
products.

An entrepreneur is Goal-Driven
● An Entrepreneur is goal-driven and self-confident as he exercises the locus of control.
● He set high goals and strives to attain the projected target and accomplishments.
● He extracts compliance with set goals and activities to avoid the risks he foresees while
planning the activities and programs in the operation of the enterprise.
● He accepts challenges and responsibility for results.
● He makes sure that people work based on specified work programs and schedules

The Entrepreneur is a Marketing Man

● The marketing environment is identified by the entrepreneur and thus, he marshals his
resources to pursue the opportunities and makes immediate action to exploit his gain.
● The needs and wants of customers are properly identified and these are the propelling
reason for him to take the opportunity

The Entrepreneur Starts Small to Become Big

● Many entrepreneurs start small but with their managerial talents and persistence, the
exploit the opportunities available for their disposal.
● At the early stage, their growth orientation is for expansion of their operation and they
persistently pursue approaches that differentiate them from other managers.
FACTORS THAT DEVELOP ENTREPRENEURIAL ACTIVITIES
1. The Entrepreneur takes the Initiative
● With his great interest to capitalize on the opportunity at hand.
● The entrepreneur takes the initiative of venturing into business.
● With an amount of knowledge, he knows that he can operate the venture with minimum
risk. Armed with vigor and vitality, he plunges a profitable operation.

2. Organization of Capital Resources

● While talents and ambitions are great resources of the entrepreneur, financial and human
resources are important ingredients in the start of the organization.
● With his savings and other financial resources, he starts operation on a small scale
together with his trusted family members or friends he knew that could help him develop
his dream enterprise.

3. The Development of Administrative Machinery

● The management is developed with an organizational structure based on the need for
operation.
● Specific duties and responsibilities are assigned to individuals with talents and skills that
fit their respective position.
● It is based on the individual capacity to do the job and not on personal connection with
the entrepreneur.

4. The Development of Entrepreneurial Autonomy

● The entrepreneur develops autonomy in the operation of the enterprise as he takes the
lead in all the activities of the organization especially in the early stage of operation.
● His venture capitalized as he knows best the direction of the enterprise as he is aware of
the calculated risk involved.
● Locus of cost control must be in his hands.
 5. The Development of SWOT Analysis
The avoidance of risk can be taken with careful analysis of the Strength,
Weaknesses, Opportunities, and Threats of the Organization. The entrepreneur
must see the environment of the enterprise based on SWOT analysis so that the
risk involve could be seen before it happens. Forecasting environment events are
an antidote to future business risk.
Why Be an Entrepreneur?
■ Control overtime
■ Fulfillment
■ Creation/ownership
■ Control over compensation
■ Control over working conditions

The desire to make money, alone, is not a good enough reason to start one’s own

business. Benefits and Costs of Becoming an Entrepreneur

Benefits
■ Independence
■ Satisfaction
■ Financial reward
■ Self-esteem
■ Contribution to society
Costs
■ Business failure
■ Obstacles
■ Loneliness
■ Financial insecurity
■ Long hours/hard work
■ The strain on personal relationships able to cite current examples of successful
entrepreneurial enterprises to support your venture.
Course Code & Title : Fine1 Entrepreneurial Management
Lesson Number : 2
Topic : Concept Of Entrepreneurship 2

LEARNING OBJECTIVES
1. Give the difference between a Manager and an Entrepreneur
2. Discuss the development of Entrepreneurship
3. Elaborate on the making of Filipino entrepreneur and their profile and
Discuss the challenges in Entrepreneurship

LESSON PRESENTATION
Difference Between Entrepreneur and Manager
The term ‘entrepreneur’ is often contrasted with the term ‘manager’, as they are the key
persons in an enterprise that help in the organization, management, control, and
administration of the company. An entrepreneur is a person with an idea, skills, and
courage to take any risk to pursue that idea, to turn it into reality. On the other hand, the
manager, as the name suggests, is the person who manages the operations and
functions of the organization.

Entrepreneurs vs Managers
Who is an Entrepreneur?
Very basically speaking, an entrepreneur is a one-man show that runs entrepreneurship.
However, such a person usually has some unique attributes that allow him to be
successful in his endeavors. He is essentially an initiator and a leader. He brings
business ideas to fruition thus starting his venture.

A successful entrepreneur is usually a responsible person. He is accountable for the

success or the failure of his venture, and he takes this responsibility very seriously. And
since he is the only person-in-charge he is automatically the leader. Leadership
qualities are one of the main aspects of an entrepreneur.
Who is a Manager?
A manager, on the other hand, is not an owner of an enterprise. Instead, he is the one
that is responsible for the management and administration of a group of people or a
department of the organization. His day to day job is to manage his employees and
ensure the organization runs smoothly.

A manager must possess some of the same qualities as an entrepreneur, like

leadership, accountability, decisiveness, etc. He must also be a good manager of
people. So qualities such as warmth and empathy are also very important in a manager.

Peculiar Characteristics of Manager In Solving Problems

1. He develops systems and procedures that are precisely based on current
practices in an industry.
2. The manager is interested in solving organizational problems rather than finding
other avenues in the solution of the problems.

3. The manager calibrates in the refinement of policies and procedures and tends to
revise them to solve existing problems
4. He finds ways and means to provide solutions and compliance with routine
activities
5. He is interested in details and sensitive to group cohesion and extracts group
cooperation as a means to group accomplishments.

Characteristics of an Innovator Entrepreneur in Solving Problems

1. He looks at the problem from different angles and finds means to circumvent the
same.
2. He discovers the roots of the problem and develops avenues to better solve the
problem. He formulates solutions and alternatives.
3. He develops basic assumptions and hypothesis related to current practices and
makes innovations based on careful analysis through SWOT
 4. The innovator entrepreneur is interested in the results rather than the means to
achieve it. He has little tolerance for details and routine work
5. He capitalizes on people with bright ideas and talents and gets their opinion and
consensus and with the little regard for people with mediocre ideas

The Development of Entrepreneurship

The Making of a Filipino Entrepreneur
The making of a Filipino entrepreneur is a process of trial and error. The
colonization of the Filipino for more than 300 years is a great factor in the slow
development of entrepreneurial activity in the country. Our concept of owning a small
business like a sari-sari store, or a small tailoring shop, or a repair shop or market
distribution outlet already makes the person an entrepreneur. While this concept is true
to a certain extent, entrepreneurship is more than being self-employed and making a
living out of the manager's income to support family needs or a little of their wants.

THE CHALLENGES FOR ENTREPRENEURSHIP

The new generation of young entrepreneurs should look up the high standard of
values and character of entrepreneurs who got up the ladder of success. Success in
entrepreneurial activity is based on the inner compulsion to achieve undeterred
difficulties. The values and character of JUAN TAMAD have no place in the world of
entrepreneurial vocabulary.

1. The new entrepreneur must be a doer and willing to work hard until he achieves
the task he wants for himself.
2. Personal attention and comprehensive awareness of the progress of the
business is not trusted on other people.
3. The new entrepreneur must have a high sense of integrity that he stands firm on
his principle and ideas,
4. Emotional stability is an important factor in the making of an entrepreneur.
 5. The built-in self-starting mechanism that drives an entrepreneur to success is his
executive ability to manage people and resources. This executive ability refers to
how he plans, organizes, directs and controls the physical and materials
resources under his disposal.

THE STARTING POINT TO ENTREPRENEURIAL SUCCESS

1. Start to be on your own
2. Explore the business environment
3. Be in control
4. Have a good accountant or a trusted financial adviser
5. Seek the advice of professionals

ENTREPRENEURIAL MANAGEMENT DEMANDS

1. The entrepreneur is alert to opportunities and perceptive to make things happen.
2. The entrepreneur has the health and endurance to work long hours.
3. The entrepreneur of flexibility and change.
4. The entrepreneur is self-assured.
5. The entrepreneur seeks other's opinions or makes researches.

Profile of a Successful Entrepreneur

Successful people in the field of business are creators of things with a difference.
They are no ordinary Juan dela Cruz who we can be seen around the corner. They are
people with great ambition and are alert to the environment that they can explore toward
a successful venture. They possess an eagle’s eye that can see and dive hundreds of
feet down and make catch the prey of opportunities.
1. The entrepreneur has a strong desire for independence.
2. The entrepreneur develops a strong drive to succeed.
3. The entrepreneur has a strong determination in decision making.
4. The entrepreneur develops a feedback mechanism for results
5. The entrepreneur is a result-driven individual.
GENERALIZATION:
At the end of this module, you'll be able to distinguish the difference between
entrepreneur and manager. And Identify the different characteristics in solving problems
both as a manager and entrepreneur. You'll also be able to cite current examples of
successful entrepreneurial enterprises and discuss their profile as an entrepreneur
including the challenges and demands for entrepreneurship.

References:
Entrepreneurial Management - Mariefe Agustin – Acierto
DBA,LPT, FRI(Rs),CPME
Pathways to Entrepreneurship - Raymund B. Habaradas ,DBA
https://www.slideshare.net/alebea1/chapter-1-concept-and-nature-of-entrepreneurship
Course Code & Title : Fine1 Entrepreneurial Management
Lesson Number : 3
Topic : Economic Development Of Entrepreneurship And It’s
Competencies

LEARNING OBJECTIVES
1. Describe the Philippine economic landscape in the present time
2. Explain the different factors in determining economic growth
3. Examine the contributory determinants in the making of an economy

LESSON PRESENTATION
Entrepreneurial activities in both formal and informal sectors are immensely
significant for economic growth and national development (Al-Mamun et al., 2016).
Specifically, micro and small enterprises, as the drivers of indigenous entrepreneurship,
play a key role in developing the global economy by improving technological capability
building, diffusion of innovations, and capital mobilization (Nabiswa and Mukwa, 2017).
At the same time, firms at the global level are facing many challenges in the forms of
market uncertainty, human and financial capital, and an increase in both local and
international competitors (Raghuvanshi and Garg, 2018).

PHILIPPINE ECONOMIC LANDSCAPE IN THE PRESENT TIME

The economy is currently growing at its potential, making a productive
investment in physical and human capital essential so that the economy can continue to
grow along its current growth trajectory. Investment growth hinges on the government’s
ability to effectively and timely implement its ambitious public investment program.
Moreover, the government needs to clarify the role of the private sector in its investment
program.

The Philippine Economic landscape remains to be the springboard questions

when economic development is the focus of discussion. The Leaders of this nation, aim
greatness for the Filipino people especially during the time of the election. Their honest
 intention of improving the economic condition is the battle cry that catapulted them into
power, yet despite the many promises, Filipinos remain poor. Instead of improving the
living condition of the Filipinos, they amassed wealth as a preparation for the next
election. Politics becomes an investment for power and money and it is not the true
essence of public service. Two important factors hinder our growth as a nation:

1. Poverty is the making of its people and the kind of leaders that holds the
wheels of economic fortune.
2. Population explosion is another factor that contributes to the poverty of our
nation.

Factors in Determining Economic Growth

The following factors are contributory determinants to our slow growth in economic
development as a nation:
1. The Filipino values and culture
a) Love for imported products
The country’s colonization for centuries has developed in the Filipinos a culture of
dependence and love for foreign products. We still feel that imported products are superior
in quality and we look upon our products as inferior.

b) Our values of BAHALA NA

A true Filipino entrepreneur will not put his destiny in the hands of the BATHALA. He
must act with strong determination and push for the development of his ideas. Innovation
and the creation of more goods and services are in the hands of an entrepreneur who can
make new and innovative products or create a new channel of their distribution.
c) Our crab mentality
Crab Mentality is the action of people to pull down others who are about to get out of
the verge of poverty and reach for their success. Enviousness is the making of people who
could not think better for themselves. Many of us destroy others yet when we look at the
mirror we are not better than them.
 d) The Manana Habit
MAMIYA NA or BUKAS NA is a culture that is brought to us by the colonizers who
were found of SIESTA after lunchtime. We take time in stride wasting time. The real
entrepreneurs, do not believe in siesta as they keep working until things are done
according to their plans.
e) The value of time
Relative to the above discussion is our lack of value for the precious time given to us.
24 hours a day and 364 days a year. We are always late at the start of the program,
coming to our classes, attending to office work, and even in important meetings and
appointments. We take all the time in our hands, not thinking that the meaning of progress
rest in our value of this precious gift of time.
f) Our values of HIYA
HIYA could be a positive value in dealing with the business condition. It could be a
propelling reason for us to create better service and proper dealings in the business
transaction. There are still many of us who take shortcuts in business dealings. Good in its
face value but with hidden agenda of fraud and deception.

g) Fiesta and social occasions

The celebration of Fiestas of Saints that we inherited from the Spanish colonizers
could be another factor in the slow development of our economy. People especially in the
countryside would have all their savings spent on a day of the fiesta, entertaining guests,
only to find out the next day that there is no more rice to feed their children.
2. Job Opportunities /Employment
Employment opportunities remain to be elusive among Filipinos. The industries in the
economic zones and other urban centers could not accommodate the growing employable
people. Most still receive minimum wages that barely support the needs of five members
of the family.
a) Employment is one great factor in economic development
The entrepreneur provides the necessary work for people that propel the
economic development of the nation. The money in circulation for wages and salaries will
help local industries to develop new products and services that generate more small and
medium enterprises.
b) Income opportunity in the Countryside is still subsistence in nature.
Most people are still dependent on the old farming and fishing system. We have
not introduced modern farming technology and the proper culture of our fishery resources.
Our corals and fish sanctuary are damaged by destructive methods of fishing. Our vast
shoreline could be developed into a haven for fishery development if new methods and
technologies could have been put in place to supply the food of the nation.

3. Availability of Needed Capital

a) Republic Act 6977, known as the Magna Carta for Small Enterprises provided
the necessary funds for the development of entrepreneurs in the countryside.
b) Republic Act 6810 is establishing the Magna Carta for Countryside and
Barangay Business Enterprises, granting exemptions from any government rules and
regulations and other incentives and benefits and for other purposes.

ENTREPRENEUR AND SOCIO-ECONOMIC DEVELOPMENT

The development of national economic activity is the making of small and
medium enterprises mostly located in the countryside.They contribute to the economy of
big corporations as they are also consumers of their production. It is the entrepreneur
who develops new products and makes innovation that becomes the backbone of more
economies.
The following are the contributions of the Entrepreneur in our Socio-Economic
Development
1. The entrepreneur provides employment
2. The entrepreneur pays taxes
3. The entrepreneur provides a new lifestyle and pleasures
4. The entrepreneur improves the capital base of the economy.
5. The entrepreneur creates people's empowerment and social mobility.
6. The entrepreneur provides healthy competition.
GENERALIZATION:
At the end of this module, you'll be able to describe the present Philippine Economic
Landscape and factors affecting the determinants for slow economic growth and their
socio-economic contributions of the entrepreneurs in the development.

REFERENCES
Entrepreneurial Management - Mariefe Agustin – Acierto
DBA,LPT, FRI(Rs),CPME
Pathways to Entrepreneurship - Raymund B. Habaradas ,DBA
Tereso S. Tullao Jr .,Phd
Course Code & Title : Fine1 Entrepreneurial Management
Lesson Number : Module 3 A
Topic : Concept of Entrepreneurship

LEARNING OBJECTIVES

1. Give the difference between a Manager and an Entrepreneur

2. Discuss the development of Entrepreneurship
3. Elaborate on the making of Filipino entrepreneur and their profile and
Discuss the challenges in Entrepreneurship

LESSON PRESENTATION

Difference Between Entrepreneur and Manager

The main difference between Entrepreneur and Manager is their role in the
organization. An entrepreneur is the owner of the company whereas a Manager is the
employee of the company. Entrepreneur is a risk taker, they take financial risk for their
enterprise. The entrepreneur has a vision and focuses on achievements and profit.
Entrepreneurs vs Managers

Who is an Entrepreneur?
Very basically speaking, an entrepreneur is a one-man show that runs entrepreneurship.
However, such a person usually has some unique attributes that allow him to be
successful in his endeavors. He is essentially an initiator and a leader. He brings
business ideas to start his venture.

A successful entrepreneur is usually a responsible person. He is accountable for the

success or the failure of his venture, and he takes this responsibility very seriously. And
since he is the only person-in-charge he is automatically the leader. Leadership
qualities are one of the main aspects of an entrepreneur.
 Who is a Manager?

A manager, on the other hand, is not an owner of an enterprise. Instead, he is the one
that is responsible for the management and administration of a group of people or a
department of the organization. His day to day job is to manage his employees and
ensure the organization runs smoothly.

Characteristics of Manager In Solving Problems

One of a manager’s most important responsibilities is to solve problems.

Finding the answers to difficult questions that are sometimes a source of great distress
for the organization often fails to an organization’s leaders. Managers who have the
ability to systematically think through the facts, diagnose the situation, and find an
accurate and workable solution will help the business prosper.
Fortunately, all managers can learn to solve problems more effectively by using
the 4 step process:

1. Identify and Define the Problem - once managers see a potential issue, they think
through whether this a problem they can solve and whether it will make a critical impact
on the team or organization.

2. Analyze the Problem – managers are able to define the root cause of the issue so
that once its been resolved, its unlikely to recur.
3. Develop Solutions – instead, mana\gers use techniques like brainstorming ideas,
and assess the situation and design a long-term solution.

4. Plan and Act – once the best solution has been identified, a good manager develops
a solid implementation plan. This plan should include steps that will be taken to move
forward, as well as contingency plans that will help the manager handle potential
solutions.
An Innovator Entrepreneur in Solving Problems
While identifying problems, is a necessary part of the origin of the entrepreneurial
process, managing problems is an entirely different aspect once a venture is off the
ground and running. An entrepreneur does not have the luxury of avoiding problems
and is often responsible for all problem solving in a start up or other form of business.

Skills that Entrepreneurs possess that make them particularly good problem
solvers:
a. Critical thinking – the entrepreneur analyses the layers of a problem to find the core
of an issue facing a business.

b. Communication skills – entrepreneurs skills use to pool resources for the purpose of
investigating solutions leading to innovative problem solving and competitive advantage.

c. Decisiveness – Entrepreneurs must be productive even in the face of risk. They ask
what problem needs to be solved, think about solutions, and then consider the means
necessary to implement an idea.

d. Ability to analyze Data – entrepreneur involves understanding what has happened

and what is happening

THE STARTING POINT TO ENTREPRENEURIAL SUCCESS

1. Start to be on your own

2. Explore the business environment
3. Be in control
4. Have a good accountant or a trusted financial adviser
5. Seek the advice of professionals

GENERALIZATION:

At the end of this module, you'll be able to distinguish the difference between
entrepreneur and manager. And Identify the different characteristics in solving problems
both as a manager and entrepreneur. You'll also be able to cite current examples of
successful entrepreneurial enterprises and discuss their profile as an entrepreneur
including the challenges and demands for entrepreneurship.
References:
Entrepreneurial Management - Mariefe Agustin – Acierto
DBA,LPT, FRI(Rs),CPME
Pathways to Entrepreneurship - Raymund B. Habaradas ,DBA
https://www.slideshare.net/alebea1/chapter-1-concept-and-nature-of-entrepreneurship
Course Code & Title : Fine1 Entrepreneurial Management
Lesson Number : 4
Topic : Economic Development Of Entrepreneurship And It’s
Competencies
LEARNING OBJECTIVES
1. Discuss the managerial skills that make a successful entrepreneur
2. Describe the characteristics of an entrepreneur

LESSON PRESENTATION
Entrepreneurial skills and entrepreneurial competencies
Entrepreneurial skills refer to the activities or know-how that can establish and operate
an enterprise successfully (Liñán and Chen, 2009). On the other hand, entrepreneurial
competencies are considered a specific set of quality characteristics that represent the
capability of an entrepreneur to perform a job (Man et al., 2002; Mitchelmore and
Rowley, 2013). In this study, skills refer to the possibility of learning and adopting
exclusive characteristics that are essential for performing entrepreneurial tasks that
involve interactions within a social and material environment (Pyysiäinen et al., 2006).
Theoretically, RBV was applied to explain the benefits of entrepreneurial competencies
on entrepreneurial skills as practices and know-how instigate unique capabilities in the
organization, thus gaining competitive advantage from non-replicable and inimitable
resources (Barney, 1991; Grant, 1991).

MANAGERIAL SKILLS THAT MAKES A SUCCESSFUL ENTREPRENEUR

Being hardworking and industrious is no guarantee in the making of business
activities while they play an important role in the success of the enterprise . while many
successful entrepreneurs have not gone to business schools to acquire managerial
theories in the management of the enterprise, they have developed managerial skills
through share observation, or an inherent leadership ability and intelligence.
 1. The ability to plan and conceptualize.
Conceptualization and planning go together. Good concepts need to be put in the
planning table to avoid the risk factor. The entrepreneur can forecast the future by
seeing to it that risk involved are properly controlled.
He must be able to visualize the direction of the business towards successful takeoff,
He must see that the products or service, the pricing strategies, the investment. The
take-off point of any business is the generation of profit based on plans and programs.
2. The ability to organize the resources of the enterprise.
A good business organization is based on people and resources.An entrepreneur
works with others and needs people with the same values and workingability. Efficiency
and effectiveness in the work arena are the workings of people with dedication and
talent to do the job properly.
The material and physical resources must be put in place. Waste time and money
have no place in good organization. The entrepreneur must be able to give specific
direction and work activities that will redound to the efficient delivery of the necessary
services to customers and clients.
3. The ability to direct and motivate people in his organization
People are like machines that need an oil that will make them work smoothly and
efficiently and effectively. Machines will bug down if no oil is put into its chamber while
in operation. The same principles work with people.They need proper compensation
and motivation for them to deliver the necessary output.
Compensation and benefits are no guarantee for effective performance while it may
serve as important ingredients. The entrepreneur must be able to communicate ideas
and plans to his subordinates with a sense of humility.Good communication and human
relations will drive people to be motivated to perform their task with pride.
4. The ability to control
Controlling the whole operation is a difficult task for the entrepreneur. Safeguards
and control mechanisms could put in place with carefully crafted policies and
procedures. Such policies and procedures must be carefully disseminated and
understood by all who will implement them.
 In the implementation stage, check valves through monitoring and feedback
mechanism must be worked out through reports and at times conference with key
people. The progress of operation and other activities related to finance and marketing
must generate the necessary reports as bases for more plans and actions. Controlling
cost and none essential expenses will save important profits that could be invested in
profitable operations.
5. The ability to manage time
Time management is a very essential ingredient in the success of an entrepreneur.
Because of the numerous activities to attend to the entrepreneur must be able to log on
to his schedule so that important activities could be attended on time.
6. The ability to adapt to the changing environment of business.
Business today is fast changing with the advent of technology and innovation. The
new entrepreneur must be able to adapt to these changes in the business landscape for
him to go with the time of progress and expansion.

CHARACTERISTICS OF AN ENTREPRENEUR
1. Leadership and management abilities
Managerial Leadership is the ability to plan, organize, direct, and control the
organization towards the goals and objectives of the organization. It requires conceptual
skills in defining the direction of the business and the development of plans and
programs that will work effectively. The mission and vision of the organization must be
set up based on his investments and interest.

2. Positive risk-takers
The entrepreneur as a positive risk take enjoys the challenges of putting his money
and time into a test. He calculates the various alternatives open to him and careful in
the choice. The entrepreneur gathers complete data and makes careful analysis before
making decisions.
 3. Self – confidence and positive outlook
The entrepreneur has a strong belief in his capacity to make a difference in their
chosen field. They believe that achievements are guiding principles in man’s success as
faith drives them to do better. The entrepreneur believes in the Lord Almighty and that
his talents and God-given gift that he must use for the well being of mankind. His faith in
God drives him to work great enthusiasm and perseverance to teach his target goals.
4. Innovativeness and forward-looking
The blazing path to entrepreneur success is the courage to make innovations in
products and services. The entrepreneur refuses to stop at his achievements. He looks
forward to creating new things, something different from others. He thinks of new
technology that will create new and better things for the customers. He introduces
innovations that will satisfy human needs and wants. He satisfies new market demand
for new and better products.
5. Natural intelligence and decision making skills
The entrepreneur’s natural intelligence is an important requirement in making
effective decisions. The entrepreneur has to make decisions as he cannot make things
happen without making a wise choice of alternatives. Creativity and innovativeness
carry with it the power to make decisions as he needs to satisfy customer needs for new
and better products and services.

THE DECISION-MAKING PROCESS:

1. Identify the problem
The risk involved in the management of the business has to be identified and
analyzed before solutions could be made. Relevant data and information must be
organized. The core objective is to minimize the risk factor involved as the wrong choice
of alternative would result in production or operation losses.
 2. Gather the data that brought the problem
A good and intelligent entrepreneur must be able to get the data that brought about
the problem. The solution to the problem is dependent on the data available at hand.
Correct information would give better solutions. False and irrelevant data would not give
the best solutions.
3. Analyze the data
Not all information is relevant to the solution of the problem. Some data must be
discarded. The data must focus on the problem at hand. It must be timely gathered and
the information is based on actual situations prevailing in the business environment.
The internal and external sources must be analyzed to find out which are relevant in
formulating alternatives solutions.
4. Formulating alternative solutions
The entrepreneur makes various alternatives solutions to the problem at hand.
These solutions are subject to a series of analysis and he may need outside opinion. He
may subject the alternatives to further study before making decisions until he finds the
right alternative course of action.
5. Selecting the best alternatives course of action.
After all the alternatives courses of action had been analyzed, the entrepreneur
makes the decision. The decision has to be implemented with fewer possible risks in
terms of money, time, and effort. It must take into account the available manpower and
material resources, supported by financial logistics.
6. Implementing the best alternative
The modern entrepreneur utilizes group efforts in solving business problems.
Problems and solutions have best arrived when people who will be implementing the
decisions are properly consulted and their opinions and ideas are taken into account
before the final decision is implemented. Group effort is required in planning effective
strategies for implementation.
 ORGANIZING THE BUSINESS ENTERPRISE
The prospective entrepreneurs before going into the intricate field of the business
would first go into deep analysis of their personal and social attitudes. It is not only
material assets but personal values and characteristics. Before venturing into the field of
business. It is wise to develop entrepreneurial studies that will help determine the
feasibility of the project.
ENTREPRENEURIAL STUDIES
The entrepreneur must see for himself the kind of management control and how
the business will be able to generate his projected profitable investment. He sees the
wide-open market of opportunities and the possible problems before he plunges into the
intricate operation of the enterprise. Wise investment through a careful analysis of the
business environment would minimize business failures.

GENERALIZATION:
At the end of this module, you'll be able to identify the managerial skills that make
a successful entrepreneur and describe the characteristics of an entrepreneur. You'll
also be able to know the importance of the decision-making process and
entrepreneurial studies in organizing a business enterprise.

REFERENCES
Entrepreneurial Management - Mariefe Agustin – Acierto
DBA,LPT, FRI(Rs),CPME
Pathways to Entrepreneurship - Raymund B. Habaradas,DBA

https://www.emerald.com/insight/content/doi/10.1108/APJIE-11-2018-0067/full/html
 DR. FILEMON C. AGUILAR MEMORIAL COLLEGE
College of Business Administration
Golden Gate Subdivision, Talon 3, Las Piñas City

Course code and Title : FINE 1 ENTREPRENEURIAL MANAGEMENT

LESSON NUMBER : 4A

Topic : The Business Organization

LEARNING OBJECTIVES
At the end of the lesson, students should be able to:
1. Differentiate the various forms of business organizations.
2. Define What is Business Organization.
3. Identify the advantages and disadvantages of different forms of business
organizations.

INTRODUCTION
Business organizations can be legal entities through which investors and
entrepreneurs provide goods and services and collaborate with one another to achieve
commercial goals.

LESSON PRESENTATION:

1.1 What is a Business Organization ?

A business organization is a collection of people working together to

achieve a common purpose related to their organization’s mission, vision,
goals and objectives, and sharing a common organizational culture.
Types of Business

1. Service Business - a service type of business offer professional skills,

expertise, advice, and other similar products.
Ex. of service businesses are: salons, repair shops, schools,
banks, accounting firms and law firms.

2. Merchandising Business – this type of business buys products at

wholesale price and sells the same at retail price. They are known as
“buy and sell” businesses. A merchandising business sells a product
without changing its for.
Ex: grocery stores, convenience stores, distributors and
other reseller

3. Manufacturing Business- this type of business buys products with the

intention of using them as materials in making a new product.

4. Hybrid Business - are companies that may be classified in more than

one type of business.

FORMS OF BUSINESS ORGANIZATION

A. Sole Proprietorship - these firms are owned by one person,

usually the individually who has day-to-day responsibility for
running the business.

B Partnership - in a partnership, two or more people share

ownership of a single business who bind themselves to contribute :
Money, property or industry

C. Corporations - these firms has a life of its on and does not

dissolve when ownership changes.

D. Cooperative - is a legal entity owned and controlled by its

members
Types of Venture

An entrepreneur has several ways to start a new venture. 3 forms available:

a. Start up

- is a company that recently formed

- It is a process where the entrepreneur creates a completely new business
starting from scratch

Adv:
- Freedom of making own decision
- Ability to make changes to business
- Will not affect the reputation of the business as it is a new venture

Dis.

- Time consuming and costly

- No ready customers
- Difficulty of obtaining loans from financial institutions

B. Buying an existing business

- Buying or acquiring either the shares or all of the assets of an existing

company or businesses
- It is the safest and most effective way for entrepreneurs to go into business

Adv:
- Immediate operations
- Easier financing
- Existing customer

Dis.
- Costly to buy
- Obsolete goods
- Problem of the business

C. Franchising

- Any agreement in which the owner of a trademark, trade name or copyright

has licensed others to use and sell its goods or services.

Adv.
- Brand name appeal
- Proven track record
- Training and guidance provided
 Dis.

- Franchise fees

GENERALIZATION:

In business all the activities are being organized and also carried out by the
people to satisfy the needs of the consumers .It means business is people and a
human is always a dynamic entity who believes in change and it may be right to say
that the only certainty today is change
Course Code & Title : Fine1 Entrepreneurial Management
Lesson Number : 5
Topic : Developing A Business Plan
Business plans help you run your business

A good business plan guides you through each stage of starting and managing your
business. You’ll use your business plan as a roadmap for how to structure, run, and grow
your new business. It’s a way to think through the key elements of your business.

Business plans can help you get funding or bring on new business partners. Investors want
to feel confident they’ll see a return on their investment. Your business plan is the tool you’ll
use to convince people that working with you — or investing in your company — is a smart
choice.

LEARNING OBJECTIVES
1. Discuss the factors that should be studies before venturing a new business
2. Explain the importance of environmental scanning
3. Distinguish the importance of selecting the proper business location

LESSON PRESENTATION
The entrepreneurs are not discouraged with the constraints along the causes of
our economic malady. It should be turned into positive note and new solutions must be
made to make them different from other individuals. There are lots of opportunities
entrepreneurs who are hardworking, creative and resourceful. Business opportunities
are wide open for people who would like to invest their money into gainful business
activities. They need to find out this new venture that interests them and how they can
harness their technical knowledge of the trade.

Before venturing into the field of business, the new entrepreneur should look into
the following factors:
1. Know your product or service
2. Analyze the market potential
3. Determine the marketing strategy
4. Know the competitors
5. Do not set on you laurels
 ENVIRONMENTAL SCANNING
The environment of business is vast the opportunities and the
entrepreneur must have a greater look into this potential as well as the conditions
prevailing in the community. The entrepreneur’s ultimate objective in the community.
The entrepreneur’s ultimate objective in diving into the business world is to make profit.
Investment in money and effort should generate financial gain for the entrepreneur .To
generate income for his product or service he must be able to deliver customer
satisfaction.
The following factors are contributory to the development of customer
satisfaction.

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 availability of transportation. A restaurant or an entertainment
center would need ample parking area where customers would not worry on where to
leave their cars while enjoying their stay. The same could be true with grocery store.

In choosing the location, the following factors must be looked into by the
entrepreneur.

a) Rent and Space

b) Terms of Lease Agreement
c) Type of Goods or Merchandise
d) Income level of Prospective Customer
e) Prospective Sales Volume
f) Municipal or City Ordinances including taxes and fees
g) Location of the Areas
 2. Location for Small Industrial Plant or Manufacturing Facilities
Environmental Factors in locating a manufacturing plant location is a great factor
in the investment of funds and its profitability in the long run. The industrial facility must
be suitable to the kind of operation . It must comply with government zoning regulations
related to pollution and environmental laws.

The following are important factors to consider:

a) Land Area
The contour of the land, its size , and shape must be suitable to the plant site. It
must be free from floods, or other environmental hazards that will disturb operation. The
assessed value of the property must be reasonable as expenses to start-up of operation
requires a lot of money. The assessed value is also a factor in the payment of taxes.
b) Facilities for Expansion
The land area must have ample space for plant expansion and provisions for
parking facilities for customers and employees. Anticipation of growth and expansion in
plant facilities should be considered as additional site in the future may create a
problem.

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. Continuous power supply is needed to keep the
plant in operation for its target production. Water supply is also needed and the proper
disposal of waste must be put in place to comply with environmental laws.
d) Building and other Utilities
The building must be within the restrictions code of the municipality or city. The
utilities like canteens and other employee’s facilities must be put in place in compliance
with the labor code. Sidewalks and gutters are important component in employee’s
safety while in the plant site. Fire safety and hazards signs are mandatory requirements.
 e) Plant site accessibility
The plant site must be accessible to public or service transport for its employees
and valued customers. It must be near highways or expressways to provide ease in
travel time and reduce cost in the transport of raw materials and finish product. Delay in
transport system are added cost that must be avoided.

GENERALIZATION:
At the end of this module, the students should be able to know the factors to
consider before venturing into a new business. Realize the importance of
environmental scanning for greater opportunity in future business. And the significance
of selecting the proper business location before starting a business.

References:
Entrepreneurial Management - Mariefe Agustin – Acierto
DBA,LPT, FRI(Rs),CPME
Pathways to Entrepreneurship - Raymund B. Habaradas ,DBA
https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan
Course Code & Title : Fine 1 Entrepreneurial Management
Lesson Number : 5 A
Topic : Developing A Business Plan
Introduction:
Business plans help you run your business.

A good business plan guides you through each stage of starting and managing your
business. You’ll use your business plan as a roadmap for how to structure, run, and grow
your new business. It’s a way to think through the key elements of your business.

Business plans can help you get funding or bring on new business partners. Investors want
to feel confident they’ll see a return on their investment. Your business plan is the tool you’ll
use to convince people that working with you — or investing in your company — is a smart
choice.

LEARNING OBJECTIVES
1. Discuss the factors that should be studies before venturing a new business
2. Explain the importance of environmental scanning
3. Distinguish the importance of selecting the proper business location

LESSON PRESENTATION
The entrepreneurs are not discouraged with the constraints along the causes of
our economic malady. It should be turned into positive note and new solutions must be
made to make them different from other individuals. There are lots of opportunities
entrepreneurs who are hardworking, creative and resourceful. Business opportunities
are wide open for people who would like to invest their money into gainful business
activities. They need to find out this new venture that interests them and how they can
harness their technical knowledge of the trade.
Before venturing into the field of business, the new entrepreneur should look into
the following factors:
1. Know your product or service
2. Analyze the market potential
3. Determine the marketing strategy
4. Know the competitors
 ENVIRONMENTAL SCANNING
Environmental scanning is the process of gathering information about
events and their relationships within an organization's internal and external
environments. The basic purpose of environmental scanning is to help management
determine the future direction of the organization.

Important Factors for Environmental Scanning

Before scanning the environment, an organization must take the following actors
into consideration:
 Events – These are specific occurrences which take place in different
environmental sectors of a business. These are important for the functioning
and/or success of the business. Events can occur either in the internal or the
external environment. Organizations can observe and track them.
 Trends – As the name suggests, trends are general courses of action or
tendencies along which the events occur. They are groups of similar or related
events which tend to move in a specific direction. Further, trends can be positive
or negative. By observing trends, an organization can identify any change in the
strength or frequency of the events suggesting a change in the respective area.
 Issues – In wake of the events and trends, some concerns can arise. These are
Issues. Organizations try to identify emerging issues so that they can take
corrective measures to nip them in the bud. However, identifying emerging
issues is a difficult task. Usually, emerging issues start with a shift in values or
change in which the concern is viewed.
 Expectations – Some interested groups have demands based on their concern
for issues. These demands are Expectations.
Components of Environmental Scanning
1. Internal Environmental Components- The components that lie within the
organization are internal components and changes in these affect the general
performance of the organization. Human resources, capital resources and
technological resources are some of the internal environmental components.
2. External Environmental Components: The components that fall outside the
business organization are called external environmental components. Although
the components lie outside the organization, they still affect the organizational
activities. The external components can be divided into microenvironmental
components and macro environmental components.

Importance of Environmental Scanning

 Goal Accomplishment: The objectives of an organization cannot be fulfilled

unless it adapts itself to the environmental changes. One has to adjust the
strategies to fit in the changing demands of the environment.
 Threats and Weakness Identification: For an organization to grow, it must
minimize its threats and identify the weaknesses. This is made possible with the
help of environmental scanning with which better strategies can be developed.
 Future Forecast: Environmental changes are often unpredictable. An
organization cannot anticipate all the future events but based on the analysis, it can
make better strategic decisions in the future. Hence, environmental analysis helps
to forecast the prospects of the business.
 Market Knowledge: Every organization must be aware of the ongoing changes in
the market. If it fails to incorporate strategic changes due to changing demands, it
will not be able to achieve its objectives.
 Focus on the Customer: Environmental scanning and analysis make an
organization sensitive towards the changing needs and expectations of the
customer.
 Opportunities Identification: With the analysis of the current environment an
organization will be able to identify the possible opportunities and take necessary
steps
 The following factors are contributory to the development of customer satisfaction.

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 availability of transportation. A restaurant or an entertainment
center would need ample parking area where customers would not worry on where to
leave their cars while enjoying their stay. The same could be true with grocery store.
In choosing the location, the following factors must be looked into by the
entrepreneur.

a) Rent and Space

b) Terms of Lease Agreement
c) Type of Goods or Merchandise
d) Income level of Prospective Customer
e) Prospective Sales Volume
f) Municipal or City Ordinances including taxes and fees
g) Location of the Areas
2. Location for Small Industrial Plant or Manufacturing Facilities

Environmental Factors in locating a manufacturing plant location is a great factor

in the investment of funds and its profitability in the long run. The industrial facility must
be suitable to the kind of operation . It must comply with government zoning regulations
related to pollution and environmental laws.

The following are important factors to consider:

a) Land Area
The contour of the land, its size , and shape must be suitable to the plant site. It
must be free from floods, or other environmental hazards that will disturb operation. The
assessed value of the property must be reasonable as expenses to start-up of operation
requires a lot of money. The assessed value is also a factor in the payment of taxes.
 b) Facilities for Expansion
The land area must have ample space for plant expansion and provisions for
parking facilities for customers and employees. Anticipation of growth and expansion in
plant facilities should be considered as additional site in the future may create a
problem.
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. Continuous power supply is needed to keep the
plant in operation for its target production. Water supply is also needed and the proper
disposal of waste must be put in place to comply with environmental laws.
d) Building and other Utilities
The building must be within the restrictions code of the municipality or city. The
utilities like canteens and other employee’s facilities must be put in place in compliance
with the labor code. Sidewalks and gutters are important component in employee’s
safety while in the plant site. Fire safety and hazards signs are mandatory requirements.
e) Plant site accessibility
The plant site must be accessible to public or service transport for its employees
and valued customers. It must be near highways or expressways to provide ease in
travel time and reduce cost in the transport of raw materials and finish product. Delay in
transport system are added cost that must be avoided.

GENERALIZATION:
At the end of this module, the students should be able to know the factors to
consider before venturing into a new business. Realize the importance of
environmental scanning for greater opportunity in future business. And the significance
of selecting the proper business location before starting a business.
References:
Entrepreneurial Management - Mariefe Agustin – Acierto
DBA,LPT, FRI(Rs),CPME
Pathways to Entrepreneurship - Raymund B. Habaradas ,DBA
https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan
Course Code & Title : Fine1 Entrepreneurial Management
Lesson Number : 6
Topic : Developing A Business Plan 2

LEARNING OBJECTIVES
1. Discuss the important role of SWOT analysis before starting the business
2. Discuss the importance of a business plan before business formation
3. Give the different phases of a business plan
4. Prepare a comprehensive business plan

LESSON PRESENTATION:

STRENGTHS , WEAKNESSES, OPPORTUNITIES, AND THREATS ( SWOT )

SWOT ANALYSIS is an entrepreneurial tool in determining the profitability of the
business operation. Opportunities carries with it some risk involved and this should be
looked into carefully. The strengths and weaknesses are internal factors to the
entrepreneur must look at how strong he is to combat the weaknesses on his side and
this needs strong determination to succeed with caution. He may need long working
hours and advanced thinking to overcome the possible threats. Planning and
environmental analysis is needed to keep opportunities moving to his side of profitability.
Investment in money and effort should turn the tide of profit to the side of the
entrepreneur and this needs careful study and analysis.

The product must be evaluated along the following areas:

1. Product strength in the market must have the following:
a. Available Technology in Product Processing
b. The Source of Raw Materials must be Abundant and at Lower Price
c. Skilled Workers must be Available
d. Capital Investment in Machinery and Operating Expenditures
e. Expertise and Technical Skills of the Management Team
2. Characteristics of Weak Products and Weak Management
a. Poor Quality and High Price
b. Product Design and Appeal
c. Production Cost
d. Supply and Demand
e. Weak Product Management

3. Sustainable Product Opportunities in the Market:

a. Product Demand
b. Presence of Poor Quality in the Market
c. Government Policies and Support
d. Liberal Credit Terms and Interest Rates

4. Treats to Product Profitability and Market Expansion

a. Entrance of Competition
b. The Supply of raw materials will be limited as other competitors will be getting
the same suppliers.
c. The Emergence of Leftwing Labour Unions
d. The Presence of Double Taxation
e. Peace and Order in the Area of Business Operation
f. The Cost of Power Supply

The Entrepreneur should look deeper into the following areas:

1. The management Team
2. The Production Process
3. The Marketing Program
4. The Financial Management
THE IDENTIFICATION OF BUSINESS OPPORTUNITY
1. The Starting Point of Conceiving the Idea of the Type of Business
2. The Technical Feasibility and Time Frame

TIPS IN CHOOSING THE BUSINESS NAME

1. Easy to recall or remember
2. Pleasant meaning creates pleasant feeling
3. Easy to pronounce
4. Easy to spell
5. Related to the product

ORGANIZING THE BUSINESS ENTERPRISE

The prospective entrepreneurs before going into the intricate field or the business
world should first go into deep analysis of their personal and social attitudes . It is not
enough that you have the capital and resources to go into business as it involves not
only material assets but personal values and characteristics. Before venturing into the
field of business it is wise to develop entrepreneurial studies that will help determine the
feasibility of the project.

THE EVENT FORMATION PROCESS FOR ENTREPRENEURS

1. The Change in Life Path
2. The Desirability of the Business Concept
3. The Feasibility of Implementation
4. Forming the Business Enterprise
5. Stability of Business Income and Profit

BASIC PHASES OF BUSINESS PLAN

1. Management Structure and Component
2. Marketing and Distribution System
3. Production and Technology
4. Financial Management
Why Create a Business Plan?
• Saves time and money.
• Key to raising capital.
• Serves as an operations guide.
• Helps you organize your thoughts before starting.

Business Plan Components

1. Cover page
2. Table of contents
3. Executive summary
4. Mission, vision, and culture
5. Company description
6. Opportunity analysis
7. Marketing strategy and plan
8. Management and operations
9. Financial analysis and projections
10. Funding request
11. Exit strategy
12. Appendices

Business Plan Suggestions

1. Write for your audience.
2. Show that you have “skin in the game.”
3. Be clear and concise.
4. Use current industry data and reports.
5. Select a “voice” and stick with it.
6. Use a consistent, easy-to-read format.
7. Number and label items throughout the plan.
8. Present the plan professionally.
GENERALIZATION:

At the end of this module, the students should be able to know the important
role of SWOT analysis before starting the business . And the significance of a business
plan before business formation. The students should be able to Illustrate and create a
comprehensive business plan

REFERENCES
Entrepreneurial Management - Mariefe Agustin – Acierto
DBA,LPT, FRI(Rs),CPME
Pathways to Entrepreneurship - Raymund B. Habaradas ,DBA
Tereso S. Tullao Jr .,Phd
Course Code & Title : Fine1 Entrepreneurial Management
Lesson Number : 7
Topic : Identification of Target Market

LEARNING OBJECTIVES
1. Identify the target market
2. Determine the types of product: goods or services ; consumer or industrial
3. Relate the tips on identifying market problem

LESSON PRESENTATION
The objective of this part is to determine which part of the total potential market
will be served by the firm . Considering that the market must be defined in terms of size,
demographics, growth prospects , trends and sales potential market and the total
aggregate sales of the competitors must be presented.

DESCRIPTION OF TARGET MARKET

1. Distinguish or determine the consumer from the customer.
2. Explore the benefits of the proposed product to the target market
3. How and why would the target market buy the product or service?
4. Is there a potential to increase the target market?

Business-to-business markets include:

1. Target market
2. Frequency of product purchase
3. Tendency for replacement needs versus expansion purchasing process
4. Estimates of market size , initial targeted geographic are, enterprise’s
targeted market share.
Business –to-consumer markets include:
1. Demographic factors,such as income level, age range, gender, educational
level ethnicity of the target market
2. Psychographic factors of the target market
3. Behavioural factors such as frequency of product purchase and shopping
behavior of the target market
Example :
The target market of the said business is located at _____________ with the
total population of __________ and it’s female population is __________. The women
from adolescent to late adulthood is the target market.
Then describe the adolescent and adulthood demographic ,psychographic and
behavioral factors.

Categories of Consumer
1. Price Shoppers- The group is interested in the best deal for a product. They
are commonly called as PRAKTICAL and price conscious.
2. Brand Loyal Customers- This group believes that their present brands are
superior to others and are willing to pay fair prices for the products just to
acquire it.
3. Status Seekers – People who are interested in prestigious or called (signature)
brands or known product categories and willing to pay at any price.
4. Service or Feature Shoppers- This group seeks a high value on customer
service and product features and will pay for them
5. Convenience Shoppers- People who value nearby locations , long store hours
and are willing to pay for easier shopping
NEW CONSUMER REALITIES IN 2016
( Source :ADOBO Magazine Issue 61 Jan –Feb 2016)
Seamless Sensation- The online and offline experiences are intertwined as
consumers navigate their daily lives seamlessly, resonating with both physical and the
digital realm. The culture is changed . The language is changed . The physical and
digital worlds are seamlessly intertwined . What brands should be digitally focusing on
the upcoming year is seamless experience.

IDENTIFY THE MARKET PROBLEM

In building product, entrepreneurs can meet customer’s needs. In identifying market
problem , the following can be considered.
1. Existing customers are the people who have already purchased the product
you are selling
2. Target market users are the people in your market who are not currently
looking for a solution
3. Prospects are the people who have not yet purchased your product but have
an intention to buy
HOW TO EVALUATE MARKET PROBLEMS?
1. Consider if the market problem is urgent, if yes, consider necessary actions
by identifying alternative courses of action (ACA) then enumerating their
advantages and disadvantages.
2. Evaluate if the market problem is pervasive or easily diffused , if yes think for
a temporary solution.
3. Determine if the buyers will pay to have this problem solved.

GENERALIZATION:
At the end of this module, the students should be able to discover the benefits of the
proposed product to the target market. The reasons why target market buy certain
product or service And the students should be able to the identify and solve business
market problem.
REFERENCES
Entrepreneurial Management - Mariefe Agustin – Acierto
DBA,LPT, FRI(Rs),CPME
Pathways to Entrepreneurship - Raymund B. Habaradas,DBA

https://www.emerald.com/insight/content/doi/10.1108/APJIE-11-2018-0067/full/html
Course Code & Title : Fine1 Entrepreneurial Management
Lesson Number : 8
Topic : Identification of Target Market 2

LEARNING OBJECTIVES
1. Solve Research Problem
2. Analyze market needs and barriers to entry

LESSON PRESENTATION
PROBLEM IDENTIFICATION RESEARCH
By conducting new market research projects, learner can discover
problem or opportunity. One could discover any of the following factors through problem
identification research.

1. Brand image. Is the impression in the consumers’ mind of a brand’s total

personality. It developed over time through advertising campaigns with
consistent ideas. This is authenticated through the consumers’ direct
experience.
2. Market characteristics – describes attributes of the buyers in making
decisions related in purchasing a certain product.
3. Market potential – is the estimated maximum total sales revenue of all
suppliers of a product in a market during a certain period.
4. Market share – is a percentage of total sales volume in a market captured
by a brand , product or company.
 PROBLEM SOLVING RESEARCH
1. Distribution Research - It determines on how to transfer the product from
the manufacturer to ultimate user.
2. Market Segmentation- They are group customers by similar characteristics
or similar purchase behaviours.
3. Pricing Research – It determines the ideal price for the product. Setting
the price for the product is one of the most important marketing steps.
4. Product Research – It tests the new or revised products or completing test
marketing.
5. Promotional Research – It determines the best research in the area of
disseminating Information.

MARKET NEED ANALYSIS

Define the Market Need for the New Business

In analyzing the market need , the following questions should be asked?

1. Who will get interested in my product?
2. What does the market need or want?
3. Who is buying the product? What and how much? How, and why are they
buying those goods or services?
MARKET ANALYSIS
A market analysis is a quantitative and qualitative assessment of a market
ability to respond positively. It looks into the size of the market both in volume and in
value , the various customer segments and buying patterns , the competition, end the
economic environment in terms of barriers to entry and regulation in the industry.
 HOW TO DO A MARKET ANALYSIS?
This is to show to the investors that company knows their target market. It
is large enough to build a sustainable business.

The following activity can be recommended.

1. Demographics and Segmentation
Demographic is the statistical characteristics of human population ( as age or
income) used especially to identify markets; a market or segment of the population
identified by demographic.

Segmentation is the process of dividing into segments with similar characteristics.

Markets are needed to slice it into different segments. This is especially relevant if
competitors focus only on certain segments. It can be segmented through its size
( number of potential customers) and the value of the market. Estimating the market
value is often more difficult than assessing the number of potential customers.

2. Target Market
This is the type of customers that are focused within the market. It is focused on
the more qualitative side of the market analysis by looking at what drives the demand.

3. Market Need
Investors must determine the needs of the market through analysis based from
research conducted focusing on their needs. Identify what the customer wants to
classify their needs.
 4. Competition
Determining the competitor’s positioning and describe their strengths and
weaknesses. Analyze competitors angle to the market in order to find a weakness that
company will be able to use in its own market positioning . One way to carry the
analysis is to benchmark the competitor against each of the key drivers of demand for
the market ( price, quality, add-on-services etc.)
BARRIERS TO ENTRY
These are the hindrances or something material that block or intend to
block passage. It is a natural formation or structure that prevents or hinders movement
or action or even separates the new businesses.

How are few examples of barrier to entry.

1. Investment
2. Technology
3. Brand
4. Regulation
5. Access to resources
6. Access to distribution channels
7. Location

GENERALIZATION:
At the end of this module, the students should be able to identify and solve
research problem. And the factors preventing start up entry and their effect on market
competition.
References:
Entrepreneurial Management - Mariefe Agustin – Acierto
DBA,LPT, FRI(Rs),CPME
Pathways to Entrepreneurship - Raymund B. Habaradas ,DBA
 DR. FILEMON C. AGUILAR MEMORIAL COLLEGE
College of Business Administration
Golden Gate Subdivision, Talon 3, Las Piñas City

Course code and Title : FINE1 Entrepreneurial Management

LESSON NUMBER : Module 7 & 8 A
Topic : Identification of Target Market

Introduction:
Identifying and understanding your customers is an essential part of your
business and marketing plan. Not everyone is your potential buyer, so it’s important to
have a clear understanding of your target market early on. Learn how to analyze your
market and define your customer segments.

LEARNING OBJECTIVES
1. Identify the target market.
2. Determine the types of product: goods or services ; consumer or industrial
3. Valuing the important factor in selecting a target market.

Lesson Presentation:

The objective of this part is to determine which part of the total potential market
will be served by the firm . Considering that the market must be defined in terms of size,
demographics, growth prospects , trends and sales potential market and the total
aggregate sales of the competitors must be presented.

What is Target Market?

A target market is a group of consumers or organizations most

likely to buy a company’s products or services. Because those buyers are
likely to want or need a company’s offerings, it makes the most sense for the
company to focus its marketing efforts on reaching them. Marketing to these
buyers is the most effective and efficient approach. The alternative -
marketing to everyone - is inefficient and expensive.
Why have a Target Market ?

For your business to thrive, you need to know who your customer is. Knowing your
customers will help you to target customers who are willing to pay for your product or service.
This is a much more effective and affordable way to reach your customers and generate
business. You’ll be wasting resources if you aim too broadly, or find out too late that there
aren’t enough customers for your product or service.

By understanding your market you can promote your product or service more effectively to
the right customer group.

1. Research your Market

To define your target market effectively you’ll need to do some research. Gathering
statistics and other market research data helps you to understand your potential customers
and their needs and make better marketing decisions.

2. Segment your Market

Work out if your market is large enough and accessible. Then segment the market into
groups of buyers with similar preferences and buying habits. For example, the athletic shoe
industry is broken up into several segmented groups – first by gender, then by the activity or
sport. Once you’ve identified your market segments, you can define your ideal customer for
each segment.

3. Define your target Market

Then target your marketing efforts to explain how your product and service will fit into their
lifestyle and how it best meets their needs.

What Factors Are Important In Selecting A Target Market?

Selection of the target market is a crucial process. That's because a business is required to
consider a lot of factors in order to decide what segments of the market it should focus on making
maximum profit. Here's a list of the top factors that are considered:

 Segment size

The very first factor that affects the selection of the target market is
"segment size" in terms of unit and revenue sales.

 Competitors

Every business gets its share of competition. Even if you start a business
that's one of its kind, if it's a hit, you risk a competitor entering the same
marketplace to try to make the most from the lucrative market.
  Demographics

Next comes the data regarding the age, gender, location, preferences and
other such elements related to your target audience. Figuring out who requires
your product or service and who would be interested in buying them is crucial
when deciding your target market.

 Substitute products

Knowing what products your target customers would use in the absence
of your product. These products or substitutes could threaten the profitability of
your business, especially if they are sold at a lower price.

 Distribution channels

Lastly, figure out how easy it would be to gain access to the appropriate
distribution channels.

IDENTIFY THE MARKET PROBLEM

In building product, entrepreneurs can meet customer’s needs. In identifying market

problem , the following can be considered.

1. Existing customers are the people who have already purchased the
product you are selling

2. Target market users are the people in your market who are not currently
looking for a solution

3. Prospects are the people who have not yet purchased your product but
have an intention to buy

HOW TO EVALUATE MARKET PROBLEMS?

1. Consider if the market problem is urgent, if yes, consider necessary

actions by identifying alternative courses of action (ACA) then
enumerating their advantages and disadvantages.

2. Evaluate if the market problem is pervasive or easily diffused , if yes think

for a temporary solution.

3. Determine if the buyers will pay to have this problem solved.