Entrepreneurship

- the science of converting ideas into business.

- It is about execution of ideas.
- a concept of developing and managing a business venture in order to gain profit by taking several risks in the
corporate world.
Entrepreneurial idea
- specific innovative way to satisfy want, overcome a problem, or meet a challenge.
- will make your business shine
- innovating idea of offering something different.
Entrepreneurial Opportunity
- a want, problem, or challenge that can be addressed, solved, or satisfied by an innovative initiative.
- a situation where an entrepreneur can take actions to make profit.
Important of entrepreneurship
- without it a business cannot begin, expand or succeed.
Entrepreneur
- "Enterprendre" (to undertake)
- they are innovators, willing to take risks and generate new ideas to create a unique and potentially profitable
solutions to modern-day problem.
- They are those who undertake risk of new enterprise.
Enterprise
- An organization that is engage in commercial activities.
- Main goal is to gain profit.
Profit
- Compensation for the entrepreneur
Types of Enterprises according to concept
1. An enterprise can involve a new concept.
- means creating or stumbling on a new idea or concept, and creating or inventing something radically new.
- the inventor builds a new business around this product.

*Steve Jobs
- chairman of Pixar Animation Studios creator
- co-founder of apple computer
- "people don't know what they want until you show it to them."
- motivational speaker
*Bill gates

2. An enterprise can be build on existing concept, but giving rise to a new business.
- means creating a new business based on the existing concept.
3. An enterprise can involve an existing concept and an existing business.
- means setting up of branches or franchises.
The Traits/Qualities of an Entrepreneur
Initiative Self-confidence Business like attitude
 Proactive Self-critical Confidence
Perseverance A planner Relation Skills
Problem-solver Risk-taker Communication skills
Persuasion Creativity Ability to make decisions

Relevance of Entrepreneurship
1. Development of managerial capabilities
2. Creation of organizations
3. Improving standard of living
4. Means of economic development

Importance of Entrepreneurship
1. Accelerate economic growth
2. Promote innovation
3. Promote social changes
Core Competencies of Entrepreneurship
1. Economic and Dynamic activity
- Entrepreneurship is an economic activity because it involves the creation and operation of enterprise
with the view of creating value and wealth by insuring optimum utilization of limited resources.
2. Innovative
- An entrepreneur constantly look for new ideas, hence he/she need to be creative.
3. Profit Potential
- The entrepreneurs are compensated by the profit from the organization.
4. Risk Bearing
- An entrepreneur needs to gamble but wise enough to offset the risk.
Types of Entrepreneur
1. Innovative Entrepreneur
- Those who make new things from thinking of new ideas. They have the ability to think of newer, better
and economical ideas.
2. Imitating Entrepreneur
- Those who do not make new ideas and only follow the ideas of other entrepreneur.
3. Fabian Entrepreneur
- Those who are skeptical of the changes to be made in the organization. They don’t initiate but follow
only when they are satisfied.
4. Drone Entrepreneur
- Those who live in the labor of others. They are die-hard conservative even ready to suffer the loss of
business.
5. Social Entrepreneur
- Those who initiate changes and drive social innovation and transformation in various fields.
Career Opportunities for Entrepreneurship
1. Business Consultant
2. Teacher
3. Researcher
4. Sales
5. Business Reporter
The Entrepreneurial Process of Creating New Venture
Creation of entrepreneurial ideas
Identification of entrepreneurial opportunities
Opening of entrepreneurial venture
Essentials in Entrepreneur's Opportunity Seeking
• Entrepreneurial mind frame
- allows the entrepreneur to see things in a very positive and optimistic way in the midst of difficult situation.
- being a risk-taker
• Entrepreneurial heart flame
- entrepreneurial driven passion
- Passion is the great desire of an entrepreneur to achieve his/her goal.
• Entrepreneurial gut game
- ability of an entrepreneur of being intuitive.
- confidence in one's self and the firm believes that everything you aspire can be reach.
- intuitive, intuition
Sources of Opportunities
1. Changes in the environment
a) External environment
- refers to physical environment, societal environment, and industry environment where the business operates.
 Physical Environment
 Climate
 Natural Resources
 Wildlife
b) Societal Environment
 Political forces
 Economic forces
 Sociocultural forces
 Technological Environment
c) The Industry Environment of the business include:
Competitors Employees
Customers Government
Creditors Supplier
2. Technological discovery and advancement
- new discovery or use of latest technology.

*For example, an individual with knowledge in repair and installation of a machine engine discovers that
additional engine parts that considerably reduce fuel consumption.
3. Government’s thrust, programs, and policies
- The priorities, projects, programs, and policies of the government.
*For example, the use of firecrackers to celebrate New Year’s Eve is strictly prohibited. People without
entrepreneurial interest will view the ordinance as a plain restriction. However, for an entrepreneur, it is a
business opportunity to come up with a new product that will serve as a substitute for firecrackers.
4. People’s interest
- The interest, hobbies, and preferences of people are rich source of entrepreneurial ideas.
5. Past experiences
- The expertise and skills developed by a person who has worked in a particular field may lead to the opening of
related business enterprise.

Forces of Competition Model

- “Five forces of competition,”
Competition – it is the act or process of trying to get or win something.
These are the five forces competing within the industry:
· Buyers
· Potential new entrants
· Rivalry among existing firms
· Substitute products
· Supplier

1. Buyers
The buyers are the one that pays cash in exchange to your goods and services.
*For example, the influenced of the price or in the bargaining strategy. The buyer has a strong and magnified
bargaining power.
2. Potential New Entrants
A new entrant is defined as the one who enters something.
*For example, the level of capital requirements, if the business requires huge capital, new entrants should
decline to join the business. This gives a threat to the business.
3.Rivalry among Existing Firms
Rivalry is a state or situation in which people or groups are competing with each other.
*For example it depends on the Marketing strategy of your competitor, like giving freebies and special offers.
4.Substitute Products
Substitute means anything that takes the place or function of another.
*For example the consumers decide to use margarine as a substitute for butter. In case the price of butter
increases, preferably the consumer will gradually switch to margarine.
5.Suppliers
The Suppliers are the one that provide something that is needed or wanted.
8For example if the supply and services being offered is unstable or keep. The intensity of the threat is strong in
this kind of the competitive force in the industry.
Definition of Terms
Opportunity seeking - Process of considering, evaluating, and pursuing market based activities that are accepted
to be beneficial for the business.
Entrepreneurial process - can be defined as the steps taken in order to begin a new enterprise. It is a step-by-step
method, one has to follow to set up a business.
Entrepreneurial ideas - an innovative concept that can be used for financial gain that is usually centered on a
product or service that can be offered for money.
Essentials of entrepreneur’s opportunity seeking - These are the basic foundation that the entrepreneur must
have in seeking opportunities, such as entrepreneurial mind frame, heart flame and gut game.
Sources of opportunity - can be attain by assessing and looking at changes in the environment; technological
discovery and advancement; government’s thrust, programs, and policies; people’s interest, and past
experiences.
Value Proposition (VP)
- a business or marketing statement that summarizes why a consumer should buy a company's product or use its
service. -often used to convince a customer to purchase a particular product or service to add a form of value to
their lives.
In creating Value Proposition, entrepreneurs will consider the basic elements:
·Target Customer
·Needs/opportunity
·Name of the product
·Name of the enterprise/company
* There are many competitors in the market to establish superiority to them. Entrepreneurs should think some
alternative and how it works better.
Unique selling proposition (USP)
- refers to how you sell your product or services to your customer.
- You will address the wants and desires of your customers.
Some tips for the entrepreneur on how to create an effective unique selling proposition to the target
customers:
· Identify and rank the uniqueness of the product or services character
· Very Specific
· Keep it short and simple (KISS)
* USP and VP are frameworks of each business industry. The two propositions are valuable for the
entrepreneurs.
A.Target Market
- Market Targeting is a sage in market identification process that aims to determine the buyers with common
needs and characteristics.
*Commonly used methods for segmenting the market are follows.
1. Geographic segmentation
– the total market is divided according to geographical location.
# Variable to consider
a. Climate
b. Dominant ethnic group
c. Culture
d. Density (either rural or urban)
2. Demographic Segmentation
– divided based consumers.
# Variable to consider
a. Gender
b. Age
c. Income
d. Occupation
e. Education
f. Religion
g. Ethnic group
h. Family size
3. Psychological Segmentation
- divided in terms for customers think and believe.
# Variable to consider
a. Needs and wants
b. Attitudes
c. Social class
d. Personality traits
e. Knowledge and awareness
f. Brand concept
g. Lifestyle
4. Behavioral Segmentation
- divided according to customers behavior pattern as they interact with a company.
# Variable to consider
a. Perceptions
b. Knowledge
c. Reaction
d. Benefits
e. Loyalty
f. Responses

B. Customer Requirements
- specific characteristics that the customers need from a product or a service.
There can be two types of customer requirements:
1. Service Requirement
- Intangible thing or product that is not able to be touched but customer can feel the fulfillment.
- It includes all aspects of how a customer expect to be treated while purchasing a product and how easy the
buying process goes.
- There are elements in service requirement like on-time delivery, service with a smile, easy-payment etc.
2. Output Requirement
- Tangible thing or things that can be seen. Characteristic specifications that a consumer expects to be fulfilled
in the product.
C. Market Size
- is like a size of arena where the entrepreneurs will play their business. It is the approximate number of sellers
and buyers in a particular market.
*Steps in Determining the market size
1. Estimate the potential market – approximate number of customers that will buy the product or avail your
services.
2. Estimate the customers who probably dislike to buy your product or avail the services.
3. Estimate the market share, that means plotting and calculating of the competitor’s market share to determine
the portion of the new venture.
Market Research or Marketing Research Process
- the process of gathering, analyzing and interpreting the information about the products or the services to be
offered for sale to the potential consumers in the market.
TIPS in GATHERING DATA
· Organize collected data as soon as it is available
· Know what message you want to get across and then collect data that is relevant to the message
· Collect more data
· Create more data
· Regularly run experiments or collect data
· Challenge your assumptions
· Set reasonable expectations
· Take note of interesting or significant data
SURVEYS
- most common way to gather primary research with the use of questionnaires or interview schedule.
- These can be done via direct mail, over the phone, internet (e.g. Google) or email, face-to-face or on Web (e.g.
Skype or Viber).
*When designing or constructing your own research questionnaire, remember the following guidelines.
(Edralin, 2016)
· Keep it simple as possible.
· Make sure it is clearly appealing and easy to read.
· Cluster or block related questions.
· Move from complex questions to more specific questions.
· Make sure questions are concise and easily understood.
· Avoid questions that are difficult to answer.
· Make sure any response scales used are consistent with categories that are mutually exclusive.
INTERVIEW
- one of the most reliable and credible ways of getting relevant information from target customers. It is typically
done in personal between the researcher/entrepreneur and a respondent where the researcher asks pertinent
questions that will give significant pieces of information about the problem that he will solve.
-Interviews normally last from 15 to 40 minutes, but they can last longer, depending on the participants’ interest
in the topic.

Personal interviews
- traditional method of conducting an interview. It allows the researcher to establish relationship with potential
participants and therefore gain their cooperation. It generates highest response rates in survey research. They
also allow the researcher to clarify indefinite answers and when necessary, seek follow-up information.
Telephone interviews
- less expensive and less time consuming, but the disadvantages are that the response rate is not as high as the
face-to- face interview, but considerably higher than the mailed questionnaire.
FOCUS GROUP DISCUSSION (FGD) -
- an excellent method for generating and screening ideas and concepts. It can be a moderated group interviews
and brainstorming sessions that provide information on user’s needs and behaviors.
*The following are considerations in the use of focus group discussions in market research:
· The length of the session is between 90 and 120 minutes.
· Usually, conduct focus groups discussion with 8 to 10 participants per group.
· Assign an expert moderator / facilitator who can manage group dynamics.
· Use a semi-structure or open-format discussion
· Strive for consistency in the group’s composition (for example, it may not be advisable to have business
customers and retail customers in the same focus group, their needs are very different)
4 Types of Focus Groups that are primarily organized by their inquiry goals:
1. Exploratory
- Type of focus group that reveals previously unknown issues including problems, attitudes and
perceptions.
2. Feature Prioritization
- Type of focus group that help rank the importance of proposed feature
 3. Comparative Analysis
- Types of focus group that reveal the contrasting attitude or experiences with different products.
4. Trend Explanation
- Type of focus group that reveals the reason why a particular consumer trend or problem are occurring.
Marketing Mix
- a set of controllable and connected variables that a company gather to satisfy a customer better than its
competitor.
- It is also known as the “Ps” in marketing.
- The original 4 P’s stands for product, place, price and promotion.
The 7 P’s of Marketing Mix
1. PRODUCT
- Product refers to any goods or services that are produced to meet the consumers’ wants, tastes and preferences.
- Goods can be categorized into business goods or consumer goods.
2. PLACE
- Place represents the location where the buyer and seller exchange goods or services.
-It is also called as the distribution channel.
- It can include any physical store as well as virtual stores or online shops on the Internet.
Channel 1
contains two stages between producer and consumer - a wholesaler and a retailer.
Wholesaler
- typically buys and stores large quantities of several producers' goods and then breaks into bulk deliveries to
supply retailers with smaller quantities.
Channel 2
contains one intermediary. In consumer markets, this is typically a retailer.
Retailer
- a company that buys products from a manufacturer or wholesaler and sells them to end users or customers. In
a sense, a retailer is an intermediary or middleman that customers use to get products from the manufacturers.
Channel 3
called a "direct-marketing" channel, since it has no intermediary levels. In this case the manufacturer sells
directly to customers.

3. PRICE
-Price is the value of money in exchange for a product or service. Generally speaking, the price is the amount or
value that a customer gives up to enjoy the benefits of having or using a product or service.
-One example of a pricing strategy is the penetration pricing
- when the price charged for products and services is set artificially low in order to gain market share. Once this
is attained, the price can be higher than before.
4. PROMOTION
-Promotion refers to the complete set of activities, which communicate the product, brand or service to the user.
-The idea is to attract people to buy your product over others.
- Advertising, Personal Selling, Sales Promotion, Direct Marketing, and Social Media are examples of
promotion.
5. PEOPLE
- Your team, a staff that makes it happen for you, your audience, and your advertisers are the people in
marketing.
- This consists of each person who is involved in the product or service whether directly or indirectly.
- People are the ultimate marketing strategy. They sell and push the product. People are one of the most
important elements of the marketing mix today.
6. PACKAGING
- Packaging is a silent hero in the marketing world.
- Packaging refers to the outside appearance of a product and how it is presented to the customers.
- The best packaging should be attractive enough and cost efficient for the customers. Packaging is highly
functional. It is for protection, containment, information, utility of use and promotion.
7. POSITIONING
- When a company presents a product or service in a way that is different from the competitors, they are said to
be “positioning” it.
- Positioning refers to a process used by marketers to create an image in the minds of a target market.
Develop a Brand Name
Brand Name
- a name, symbol, or other feature that distinguishes a seller's goods or services in the marketplace.
- Your brand is one of your greatest assets because your brand is your customers' over-all experience of your
business.
Brand strategy
- a long-term design for the development of a popular brand in order to achieve the goals and objectives. A well-
defined brand strategy shakes all parts of a business and is directly linked to customer needs, wants, emotions,
and competitive surroundings.
Branding
- a powerful and sustainable high-level marketing strategy used to create or influence a brand.
- a strategy to distinguish products and companies and to build economic value to both customers and to brand
owners. (described by Pickton and Broderick in 2001)
Commonly Used Branding Strategy
1) Purpose
(Allen Adamson).
According to Business Strategy Insider, purpose can be viewed in two ways:
a. Functional. This way focuses on the assessments of success in terms of fast and profitable reasons. For
example the purpose of the business is to make money.
b. Intentional. This way focuses on fulfillment as it relates to the capability to generate money and do well in
the world.
2) Consistency
- The significant of consistency is to avoid things that don’t relate to or improve your brand. Consistency aids to
brand recognition, which fuels customer loyalty.
3) Emotion
- There should be an emotional voice, whispering "Buy me". This means you allow the customers have chance
to feel that they are part of your brand.
4) Flexibility
Marketers should remain flexible to in this rapidly changing world.
Consistency targets at setting the standard for your brand, flexibility allows you to adjust and differentiate your
approach from your competition.
( Kevin Budelmann)
5) Employee Involvement
It is equally important for your employees to be well versed in how they communicate with customers and
represent the brand of your product
6) Loyalty
Loyalty is an important part of brand strategy. At the end of the day, the emphasis on a positive relationship
between you and your existing customers sets the tone for what potential customers can expect from doing
business with you.
7) Competitive Awareness
Do not be frightened of competition. Take it as a challenge to improve your branding strategy and craft a better
value in your brand.