Module 1

PARTS & CONTENT OF BUSINESS PLAN

What is BUSINESS PLAN
➔ formal documents that clearly explain proposed I. TITLE / COVERAGE PAGE
businesses and their important details ➔ Contains the following details :
➔ considered as an entrepreneur’s game plan
★ Business logo
What are BUSINESS PLAN
★ business logo
➔ Answers the following questions:
★ business name
- Where do you want to go as a business
★ tagline
entity ?
★ target location
- How will you get there?
★ names of proponent/s, and
★ end date (optional).
PURPOSE OF BUSINESS PLAN
➔ identify the nature and context of the business
II. TABLE OF CONTENT
opportunity
➔ Provides a sequential listing of the
➔ identify factors affecting the venture’s success
section of the plan with page numbers
➔ serve as the entrepreneur’s tool for raising
➔ Last part of be completed
capital III. EXECUTIVE SUMMARY
● Well-written business plan cannot guarantee ➔ the brief summary of the business plan
100% entrepreneurial success ➔ could range from a single paragraph
and could extend to three pages
Basic Parts of a Business Plan ➔ mentions the following:
★ business name
I TITLE / COVER PAGE
★ products and services that will
II TABLE OF CONTENTS
be offered
III EXECUTIVE SUMMARY ★ target/proposed location
IV VISION & MISSION STATEMENTS ★ year the business will be
implemented
V SOCIAL VALUE PROPOSITION
★ social value proposition, and
VI SWOT ANALYSIS
★ Competitors.
VII LIST OF COMPETITORS / COMPETITOR
ANALYSIS
IV. VISION AND MISSION STATEMENTS
VIII MARKETING PLAN Vision Statement
IX OPERATION PLAN ➔ written in future tense

X FINANCIAL PLAN ➔ must answer the following:

★ What is your big vision for the
XI MANAGEMENT PLAN
business?
XII REFERENCES
★ What problems are you solving
XIII APPENDICES and for whom?
 ★ Where do you want to be in the hamper or impede the success of your
future?\ business?

Mission Statement
➔ expressed in present tense ➔ Opportunities
★ What are the external conditions and
➔ inspirational statement of the business’
resources that will enhance or enable the
purpose success of your business?
➔ describes what you actually do or offer ➔ Threats
★ What are the external conditions that
➔ rich in content and excites the readers
may hamper or impede the success your
business?
V. SOCIAL VALUE PROPOSITION
➔ a brief statement of how your target VII. LIST OF COMPETITORS/COMPETITOR
ANALYSIS
customers will benefit from your ➔ should answer the following:
product/service ★ Who are your competitors?
➔ should answer the following: ★ Where are they located and
★ What are they known for?
★ Why should your target
Name of Address Product / Prices
customers care?
Competitor Services
★ Are you offering something
sustainable, socially-relevant, or
environment-friendly?

Competitor Analysis Table

VIII. MARKET ANALYSIS &

MARKETING PLAN

➔ Market Analysis
- Available Market
★ total number of target
customers
★ geographic boundaries
(e.g. continent, nation,
VI. SWOT ANALYSIS state) and demographics
➔ Strengths (e.g. age, gender, social
★ What are the internal assets, resources, groups) to segment this
capabilities and relationships of your number
enterprise that will enhance or enable -Product
the success of your business? -Price
➔ Weaknesses -Promotion
★ What are the gaps in internal -Place
knowledge, skills and resources that will
IX. OPERATION PLAN
➔ Operating Hours
➔ Operation Strategies
★ Quality Control
★ Purchasing
★ Warehouse and Shipping
IX. FINANCIAL PLAN
➔ Start-up Costs (Capital Requirement)
➔ Pro Forma Financial Statements
- statements that project a firm’s financial
performance and condition
- comprised of:
★ projected income statement
★ projected balance sheet
★ projected cash flows
➔ should answer the following:
★ How profitable can you expect the firm
to be, given the projected sales and
expenses (projected income statement)
★ How much and what type of financing
will be needed to finance a firm’s
assets?(projected balance sheet)
★ Will the firm have adequate cash flows?
(projected cash flows)
X. MANAGEMENT PLAN
➔ Organization Chart
➔ Management Team
★ names of people with key positions
★ roles and responsibilities of each
member
XI. REFERENCES
➔ Cite all of your sources using the APA 7 format.
You may use this website as your guide:
https://owl.purdue.edu/owl/research_and_citatio
n/apa_style/apa_formatting_and_style_guide/ge
neral_format.html
XII. APPENDICES
➔ supporting documents
➔ tables, diagrams, and figures that are too long to
be included in the body of business plans should
be placed in this part
➔ other important business documents like
Contract of Confidentiality and employment
contracts (optional).
Tips When Writing Business Plans
➔ use good grammar and correct punctuations
➔ provide solid evidence for any claims
➔ don’t hide weaknesses—identify potential fatal
flaws
➔ name your diagrams, pictures, and tables
properly
➔ use visual aids—graphs, exhibits, and tabular
summaries
➔ indicate that all information is confidential
➔ be ethical and try to create an impact (social,
environmental, sustainable)
➔ limit the presentation to a reasonable length
➔ explain in lay man’s terms
➔ go for an attractive, professional appearance
➔ have good levels of confidence yet practice
humility
Examples of Social Enterprises
★ UN SDG #2: Zero Hunger
-Farmer Business Network (FBN)
★ UN SDG #5: Gender Equality
-Women’s World Banking
★ UN SDG #9: Industry, Innovation, and
Infrastructure
-Bridges to Prosperity
★ UN SDG #11: Sustainable Cities and
Communities
-Habitat for Humanity
★ UN SDG #14: Life Below Water
-The Ocean Cleanup
 Module 2
IMPORTANCE OF ENTREPRENEURSHIP
EDUCATION

ENTREPRENEURSHIP
➔ is more than just the mere creation of business
and involvement in trade. It is the:
★ seeking of opportunities,
★ taking risks beyond security
★ possessing of perseverance to push an
innovative idea into reality
➔ is an integrated concept that completes an
individual’s business in an innovative manner
➔ it is a mind-set that has revolutionized the way
businesses are done at every level (micro, small,
medium, large-scale) and in every country

★ independent, intensely-committed and

determined innovators
★ calculated risk-takers for business
★ people who strive to bring something new
and useful for the market
★ competitive practitioners who use failure as
a learning tool
 SOCIAL ENTREPRENEURSHIP
➔ a form of entrepreneurship that focus on
bringing solutions to societal problems
through innovation, risk-taking, and large
scale transformation
➔ a process of creating social value by
combining resources in new ways (Mair and
Marti)
➔ a vehicle for sustainable development
➔ “meeting the needs of the present without
compromising the ability of future
generations to meet their needs” – G.H.
Brundtland
➔ “Social entrepreneurship, we believe, is as
vital to the progress of societies as is
entrepreneurship to the progress of
economies, and it merits more rigorous,
serious attention than it has attracted so far.”
SOCIAL ENTREPRENEUR
➔ a person who founds and/or leads an
organization or initiative engaged in social
entrepreneurship
➔ referred to as:
★ public entrepreneurs
★ civic entrepreneurs
★ social innovators
★ change agents
ACTIVITIES OF SOCIAL ENTREPRENEURS
According to Arthur C. Brooks, social
entrepreneurs:
1. adopt a mission to create and sustain social
value beyond personal value
2. recognize and pursue opportunities for
social value
3. engage in continuous innovation and
learning
4. act beyond the limited resources at hand,
and
5. have heightened sense of accountability.
Do you need a bachelor’s degree to become an
entrepreneur or social entrepreneur?
➔ No, our laws do not state that one should
first earn a bachelor’s degree before
becoming an entrepreneur or social
entrepreneur.
➔ As long as your have the right
entrepreneurial mind-set, characteristics,
resources, and legal business requirements,
you can manage an enterprise.
➔ However, it pays to take formal
entrepreneurial education since more
business lessons, innovative models and
theories are being taught in school.
ENTREPRENEURSHIP IN THE ACADEME
➔ The subject “Entrepreneurship” is being
taught in SHS
➔ Non-business courses like Engineering, IT,
Education, and MLS take the
“Entrepreneurial Mindset” subject
➔ Bachelor of Science in Entrepreneurial
Management exists
➔ Master in Business Administration students
take the elective subject,
“Entrepreneurship”.
 The Importance of
Entrepreneurship Education
➔ In the last decade of the 20th century into
the new millennium, various pressures have
been driving the acceleration of the
entrepreneurial society (Gibb, 1999).
➔ Entrepreneurship has gained increased
recognition as a significant driver of
improvements in social welfare and
economic prosperity.
➔ The entrepreneurial spirit is now seen as a
source of innovations in nearly all
industries, leading to the birth of new
enterprises and the growth and renewal of
established organizations
➔ It is noteworthy that before, universities
have normally not partaken in the
development.
➔ By some counts, eighty percent of leading
new industries derive their knowledge base
from university-based research (Atkinson &
Pelfrey, 2010).
➔ Universities around the world are
increasingly adding a new role to their
traditional primary roles as teachers and
researchers.
- This role is one that that strategically
contributes to the development of
society and the economy.
REMEMBER:
➔ Enterprising people have ideas and do
something about them even when life is
difficult and uncertain.
➔ In the business world, we may call this
business entrepreneurship, but there are also
social entrepreneurs as well as
cross-disciplinary entrepreneurs such as:
★ art entrepreneurs
★ sports entrepreneurs
★ design entrepreneurs
★ etc.
BENEFITS OF ENTREPRENEURSHIP
1. Opportunity to Create Your Own
Destiny
- You get to achieve independence and
the opportunity to achieve what is
personally important to you.
- Entrepreneurs use their businesses to
make their desires into reality.
2. Opportunity to Make a Difference
- Business builders seek innovative
solutions to some of the society’s
most vexing problems.
- Entrepreneurs are finding ways to
combine their concerns for social
issues and their desire to earn a good
living.
3. Opportunity to Reach Your Full
Potential
- Entrepreneurs’ businesses become
their instruments for self-expression
and self-actualization.
 - Owning a business gives entrepreneurs
a sense of empowerment.
4. Opportunity to Reap Impressive Profits
- People who own their own businesses are
more likely to be millionaires than those
who are employed by others.
- Unglamorous businesses produce millions
(Lewis Schiff):
★ Scrap metals
★ Welding
★ Auctioneering
★ Garbage collection, etc.
5. Opportunity to Contribute to the Society and
Be Recognized for Your Efforts
- For entrepreneurs, playing a vital role in
their local business systems and knowing
that their works have significant impacts on
the nation’s economy is another reward for
them
6. Opportunity to Do What You Enjoy and Have
Fun at It
- For some entrepreneurs, their “work” is not
really their work.
- Entrepreneurs have made their avocations
(hobbies) as their vocations (work).
★ Some even “play” as they “work”.
POTENTIAL DRAWBACKS OF
ENTREPRENEURSHIP
1. UNCERTAINTY OF INCOME
- Owning an enterprise do not guarantee sure
profits.
★ There are a lot of internal and
external
factors to juggle.
- For some start-up entrepreneurs, they
could even barely pay themselves.
2. Risk of Losing Your Entire Investment
- Business failure can lead to financial
ruin for an entrepreneur.
- There is a possibility of filing for
bankruptcy after quite some time of
business operations.
3. Long Hours and Hard Work
- Enterprises demand long hours from
entrepreneurs.
- Oftentimes, the entrepreneur works
for six to seven days a week without
paid vacation time.
- Work-life balance can be a challenge
and a huge question mark.
.4. Lower Quality of Life Until the
Business Gets Established
- For some, being an entrepreneur
comes first before being a partner,
mother, father, daughter, son, or
friend.

Module 3
Entrepreneurship: Challenging the
Unknown
➔ Entrepreneurs are individuals who recognize
opportunities where others see chaos or
confusion
➔ They are aggressive catalysts for change
within the marketplace.
➔ Whatever the passion - because they all fit in
some way – entrepreneurs are the heroes of
today's marketplace.
➔ They start companies and create jobs at a
breathtaking pace
➔ The passion and drive of entrepreneurs
move the world of business forward.
➔ They challenge the unknown and
continuously create the future.
➔ "Anyone [can be an entrepreneur] who
wants to experience the deep, dark canyons
of uncertainty and ambiguity; and who
wants to walk the breathtaking highlands of
success. But I caution, do not plan to walk
the latter, until you have experienced the
former”
THE MYTHS OF ENTREPRENEURSHIP
1. Entrepreneurs are doers, not thinkers.
➔ Although it is true that entrepreneurs
tend toward action, they are also
thinkers
➔ They are often very methodical
people who plan their moves
carefully
➔ The creation of clear and complete business
plans is an indication that “thinking
entrepreneurs” are as important as “doing
entrepreneur”
2.Entrepreneurs are born, not made.
➔ One may be not born with entrepreneurial
traits, skills, and characteristics, however, all
these can be learned while growing up
➔ These presence of case studies, models, and
processes made the field of entrepreneurship
as an acquirable mind-set and skill.
3. Entrepreneurs are always inventors.
➔ Although many inventors are also
entrepreneurs, numerous entrepreneurs
encompass all sorts of innovative activity.
➔ Entrepreneurship covers more than just
invention; it requires a complete
understanding of innovative behavior in all
its forms.
➔ For example, Ray Kroc did not invent
the fast-food franchise, but his
innovative ideas made McDonald's the
largest fast-food enterprise in the
world
4. Entrepreneurs are academic and social
misfits.
➔ This belief is a result of some business
owners having started successful enterprises
after dropping out of school or quitting a
job.
➔ Historically, educational and social organizations did
notrecognize the entrepreneur. They abandoned him
or her as a misfit in a world of corporate giants.
5.Entrepreneurs are academic and social
misfits.
➔ Business education, for example, was aimed
primarily at the study of corporate activity.
➔ Today, the entrepreneur is considered a hero
- socially, economically and academically
➔ No longer a misfit, the entrepreneur is now
viewed as a professional role model.
6. Entrepreneurs must fit the profile.
➔ Many books and articles have presented
checklists of the successful entrepreneurs’
characteristics.
➔ These lists were neither validated nor
complete; they were based on case studies
and on research findings among
achievement-oriented people.
➔ The environment, the venture, and the
entrepreneur have interactive effects, which
result in many different types of profiles
today.
7. All entrepreneurs only need luck.
➔ Prepared entrepreneurs who seize the
opportunity when it arises often seem
'lucky.“ They are, in fact, simply prepared
to deal with situations and turn them into
successes.
➔ What appears to be luck is actually:
● preparation
● determination
● desire
● knowledge, and
● innovativeness.
8. What all entrepreneurs need to succeed is
money (capital and financing).
➔ It is true that a venture needs capital to
survival it is also true that a large number of
business failures occur because of a lack of
adequate financing.
➔ However other factors could be reasons for
entrepreneurial failure:
● managerial incompetence
● lack of financial understanding
● poor investments
● poor planning, etc.
9. Entrepreneurship is unstructured and
chaotic.
➔ Entrepreneurs are assumed by some to be
disorganized and unstructured, leaving it to
others to keep things on track.
➔ The reality is that entrepreneurs are heavily
involved in all facets of their ventures. As a
result, they are typically well organized
individuals.
10. Most entrepreneurial initiatives fail.
➔ The statistics of entrepreneurial failure rates
have been misleading over the years.
➔ Many entrepreneurs do suffer a number of
failures before they are successful but they
follow the adage: “If at first you don't
succeed, try, try, again."
11. Entrepreneurs are extreme risk-takers.
➔ Although it may appear that an
entrepreneur is "gambling" on a wild
chance, the entrepreneur is usually working
on a moderate or ‘calculated' risk.
 SCHOOLS OF THOUGHT APPROACHES
TO ENTREPRENEURSHIP
MACRO VIEW OF ENTREPRENEURSHIP
➔ presents a broad array of factors that relate
to success or failure in contemporary
entrepreneurial ventures
➔ includes external processes that are
sometimes beyond the control of the
individual entrepreneur
➔ made up of three schools of thought:
● Environmental School of Thought
● Financial/Capital School of Thought
● Displacement School of Thought
1. Environmental School of Thought
➔ deals with the external factors that
affect a potential entrepreneur's
lifestyle
➔ can be either positive or negative
forces in the molding of
entrepreneurial desires
➔ The focus is on institutions, values,
and mores that grouped together
form a sociopolitical environmental
framework that strongly influences
the development of entrepreneurs.
➔ For example:
★ A business student grew up
in a highly entrepreneurial
family who owns several
businesses in the technology
and food industries. His
family also engages in charity
works by donating a specific
percentage of their net profits
annually. A few years later,
the student-now-business
graduate decided to take on
the entrepreneurial path of his
family members.
2. Financial/Capital School of Thought
➔ based on the capital-seeking process
➔ views the entire entrepreneurial
venture from a financial management
standpoint
➔ the search for seed and growth
capital is the entire focus
of this entrepreneurial emphasis
3. Displacement School of Thought
➔ It holds that the group hinders a
person from advancing or eliminates
certain critical factors needed for that
person to advance.
➔ The frustrated individual will be
projected into an entrepreneurial
 pursuit out of his or her own
motivations to succeed.
➔ three kinds of displacements:
❖ Political Displacement
● an entire political regime
rejects free enterprise
● governmental regulations
and policies that limit or
redirect certain industries
❖ Cultural Displacement
● deals with social groups
(ethnic background, religion,
race, and sex) excluded from
professional fields
● this experience turns various
individuals away from
standard business professions
and toward entrepreneurial
ventures
❖ Economic Displacement
● job loss, capital shrinkage, or
simply “bad times” can create
the foundation for
entrepreneurial pursuits
MICRO VIEW OF ENTREPRENEURSHIP
➔ examines the factors that are specific to
entrepreneur ship and are part of the
internal locus of control
➔ in this view, the potential entrepreneur has
the ability or control to direct or adjust
internal business factors
➔ consists of three schools of thought:
● Entrepreneurial Trait School of
Thought
● Venture Opportunity School of
Thought
● Strategic Formulation School of
Thought
1. Entrepreneurial Trait School of
Thought
➔ is grounded in the study of
successful people who tend to
exhibit similar characteristics, that if
copied, will increase the success
opportunities for followers
➔ For example, achievement,
creativity, determination, and
technical knowledge are four
qualities usually possessed
by successful entrepreneurs.
Aspiring entrepreneurs try
to emulate these qualities.
2. Venture Opportunity School of
Thought
➔ focuses on the opportunity aspect of
the venture development
➔ The search for idea sources, the
development of concepts, and the
implementation of venture
opportunities are the interest areas of
this school.
 ➔ Anchored in the Corridor
Principle:
● New pathways or
opportunities will arise that
lead entrepreneurs in
different directions.
● proper preparation in the
interdisciplinary business
segments will enhance an
entrepreneur's ability to
recognize venture
opportunities
3. Strategic Formulation School of
Thought
➔ emphasizes the planning process in
successful venture development
➔ Unique markets, unique people,
unique products, or unique resources
are identified, used, or constructed
into effective venture formations.
➔ “Strategic planning is inextricably
interwoven into the entire fabric of
management; it is not something
separate and distinct from the
process of management.”
Lessons provided by the Global Entrepreneurship
ENTREPRENEURIAL REVOLUTION:
A GLOBAL PHENOMENON
➔ Entrepreneurship is the symbol of business
tenacity and achievement.
➔ Entrepreneurs were the pioneers of today's
business successes.
➔ Their sense of opportunity, their drive to
innovate, and their capacity for
accomplishment have become the standard
by which free enterprise is now measured
➔ This standard has taken hold throughout the
entire world.
➔ For example, starting with just 10 developed
countries in 1999, the Global
Entrepreneurship Monitor (GEM) has now
grown to include over70 economies and 100
countries by 2014.
➔ The GEM data has shown that 250 million
people were involved in early stage
entrepreneurial activity.
➔ Out of these individuals, an estimated 53
million people expected to hire at least five
employees over the next five years, and 27
million of these individuals anticipated
hiring 20 or more employees in five years.
➔ The latest GEM analyses shows that growth
expectations and aspirations of early-stage
entrepreneurs represent a key dimension of
potential entrepreneurial impact: to create
more jobs.
Monitor (GEM) studies:
1. Entrepreneurship does not impact an
economy simply through higher numbers
of entrepreneurs.
➔ It is important to consider quality
measures like growth, innovation,
and internationalization.
2. Entrepreneurship needs both dynamism and
stability
➔ Dynamism occurs through the creation of
new businesses and the exit of nonviable
ones.
➔ Stability comes from providing new
businesses with the best chance to test and
reach their potential.
3. Entrepreneurship in a society should contain
a variety of business phases and types, led by
different types of entrepreneurs, including
women and underrepresented age groups.

4. Initiatives aimed toward improving

entrepreneurship should consider the
development level of the economy.
➔ With the set of basic requirements in place,
efforts can turn toward reinforcing
efficiency enhancers, and then building
entrepreneurship framework conditions.
5. An entrepreneurial mind-set is
not just for entrepreneurs.
➔ It must include a variety of
stakeholders that are willing to
support and cooperate with these
dynamic efforts.
➔ In addition, non-entrepreneurs
with entrepreneurial mind-sets
may indirectly stimulate others to
start businesses.
➔ This indicates the value of broader
societal acceptance of entrepreneurship