ENTREPRENEURSHIP

WHAT IS
ENTREPRENEURSHIP?
ENTREPRENEURSHIP
IS A PROACTIVE
PROCESS OF
DEVELOPING A
BUSINESS VENTURE
TO MAKE A PROFIT.
 Designing
Launching
Running a new
business
Societal and economic
benefits of
entrepreneurship:
 1. Entrepreneurship
produces more jobs that
equate to an increase in
national income.
 2. Entrepreneurship
amplifies economic
activities of different
sectors of society.
 3. Entrepreneurship
introduces new and
innovative products and
services
 4. Entrepreneurship
improves people’s living
standards.
 5. Entrepreneurship
disperses the economic
power and creates
equality
 6. Entrepreneurship
controls the local wealth
and balances regional
development
 7. Entrepreneurship
reduces social conflicts
and political unrest
8. Entrepreneurship elicits
economic independence
and capital formation
“ENTREPRENEUR”
from the words
entre, which
means “between”
and prendre, which
means “to take.”
 Who is an
Entrepreneur?
OUnique individual who
has the innate ability
and extraordinary
dedication to establish
and manage a business
 Five levels of
entrepreneurial
development.
1Self-employed

2Manager

3Leader
4Investor

5True entrepreneur
New terms for entrepreneur
1. Technopreneur – who puts technology at the core of his or her business model

2. Social entrepreneur – one who takes

advantage of the country’s social problems and
turn them to profitable institution with the
intention of helping the disadvantage
community rather than making a profit
 KNOW
YOUR
CUSTOME
R
 Marketing research
– process of gathering, analyzing and
interpreting information about a market,
about the product or service to be
offered for sale in the market and about
the past, present and potential customer
for the product or service.
- One of the most critical tasks of an
entrepreneur
 Market size

- is simply the size the arena where

the entrepreneur’s business will
play

approximation of the number of

buyers and sellers in a particular
market
 Potential market

Approximate number of customers

that will buy the product or avail the
service.

Market space or market universe

Because this is the total market
 To eliminate the customers are
probably unlikely to buy the product
or avail the services
To estimate the market share, which
is the plotting and calculation of the
competitors’ market share to
determine the remaining portion for
the new venture
 Mr. Alvin Antonio, a budding
entrepreneur, wants to establish a rice
retailing business in his area in
Barangay San Isidro. He wants to know
if this business is worth his capital and
effort. He dug deep and found out that
there are approximately 500 families in
Brgy. San Isidro with an average of five
members per family. He did a survey
and found out that 475 families eat rice;
 they consume an average of 1 kilo of
rice per day. There are four other rice
retailers in the area that have been there
for 10 years already, and they have
equal market shares of 20% each. The
other 20% of the market is buying in bulk
from groceries or convenience stores.
The average net profit per kilo of rice is
P10.
 How big is the market size and what
could be the potential market share of
Alvin’s rice retail business?
 The objective of Mr. Antonio in the first
year is to capture the 20% of the market
by implementing marketing strategies in
pricing (reduced markup of P2) and
promotion (free delivery of rice for five
kilos and up) through text message or
phone call. None of the competitors
have thought of or done these strategies
yet.
 The objective of Mr. Antonio in the first
year is to capture the 20% of the market
by implementing marketing strategies in
pricing (reduced markup of P2) and
promotion (free delivery of rice for five
kilos and up) through text message or
phone call. None of the competitors
have thought of or done these strategies
yet.
 CUSTOMER
REQUIREMENTS
CUSTOMER REQUIREMENTS

Specific features and characteristics

that the customers need from a
product or a service.
Primary and Secondary Target
Market
 Demographic segmentation

• Also called socioeconomic

segmentation

• Process of grouping customer

Entrepreneur Must be alert w/
these changes

• Income range and the social

class
• Occupation
• Gender and age group
• Religion and Ethnicity
 Psychographic segmentation
• Process of grouping customers
according to their perceptions,
way of life, motivations, and
inclinations.
 Psychographic segmentation
• Perceptions – process wherein
an individual receives external
stimuli using the five senses of
hearing, touching, smelling
seeing, and tasting
Psychographic segmentation

Physiological motivations
involve the needs of the person
(food, clothing, shelter)
Psychographic segmentation

Psychological motivations
Involve customer’s preferences
(what the customer likes or
dislikes)
Psychographic segmentation

Aspiration
are what the customer wants to
achieve (inner peace, financial
stability, work-life balance)
 Psychographic segmentation

Deprivation
Customer’s recognition of certain
voids to fill
Geographic segmentation

Simply grouping customers

according to their location
Behavioral segmentation

Process of grouping the

customers according to their
actions
 Behavioral segmentation
These behaviors are instigated
by:
 Occasions
 Desired benefits
 Loyalty
 Usage of products or availment of
service
Talking to your
Customers
 The Interview

One of the most reliable and

credible ways of getting relevant
information from the target
customers
 The Interview

It is a face-to-face contact
between the
researcher/entrepreneur and a
respondent where the researcher
asks pertinent questions