ENTREPRENEURSHIP

Felicito Rosevelt D. Adaro Jr.

SELF RATING ASSESSMENT

YOUR PERSONAL
ENTREPRENEURIAL
COMPETENCIES
 WALKTHROUGH OF
CURRICULUM GUIDES ON
ENTREPRENEURSHIP

Each group will discuss its teaching strategies on

every Learning Competencies in CG.
SHS Contextualized_Entrepreneurship CG.pdf

Presentation of Output.
Session Objectives:

At the end of the session, the participants can:

 demonstrate knowledge and understanding

about the concepts and competencies of
entrepreneurship; and
 demonstrate understanding of the concepts,
principles and processes of business
planning enriching them towards the
preparation of a detailed business plan.
EXERCISES
 REVIEW

Refers to the economic activity of a person who

starts, manages, and assumes the risk of a business
enterprise.

ENTREPRENEURSHIP
______________________________________
 REVIEW

The introduction of a new method is referred to as

INNOVATION
______________________________________
 REVIEW

The venture established by the entrepreneur is

known as

START UP COMPANY
______________________________________
 REVIEW

Is the basic description of the fundamental nature,

rationale, and direction of the firm.

MISSION STATEMENT
______________________________________
REVIEW

Is a carefully designed plan FOR ACHIEVING the

firm’s objectives.

STRATEGIES
______________________________________
 REVIEW

Is an organized method of assessing a firm’s

strengths and weaknesses and the opportunities and
threats in the external environment that confront or
will confront the firm.

SWOT ANALYSIS
______________________________________
 REVIEW

Is an estimate or prediction of the future sales or

income of the firm.

FORECASTS
______________________________________
 REVIEW

A document that helps the SBO determine what

resources are needed to achieve the objectives of the
firm, and the like.

BUSINESS PLAN
______________________________________
 REVIEW

The sell directly to consumers.

RETAILERS
______________________________________
REVIEW

The part of the business plan which contains

information on the capital needs of the business,
how the money will be spent, what benefits will be
derived by the business from the loan or investment,
among others.

EXECUTIVE SUMMARY
______________________________________
 REVIEW

Is that function concerned with planning and

implementing the conception, pricing, promotion,
and distribution of products or services that will
satisfy the firm’s objectives.

MARKETING
______________________________________
What is Entrepreneurship?

 An economic activity of a person who starts,

manages and assumes the risk of a business
enterprise

 A dynamic process of vision, change, and

creation
ENTREPRENEURSHIP: A MINDSET

 Entrepreneurship is more than the mere creation

of business:
– Seeking opportunities
– Taking risks beyond security
– Having the tenacity to push an idea through to
reality
 Entrepreneurship is an integrated concept that
permeates an individual’s business in an
innovative manner.
Austrian economist Joseph Schumpeter’s definition
of entrepreneurship placed an emphasis on
innovation, such as:

 new products
 new production methods
 new markets
 new forms of organization
The Evolution of Entrepreneurship

 Entrepreneur is derived from the French word

entreprendre, meaning “to undertake.”
The entrepreneur:
– is one who undertakes to organize, manage,
and assume the risks of a business.
– A catalyst for economic change who uses purposeful
searching, careful planning, and sound judgment
when carrying out the entrepreneurial process.
Difference Between
Businessman and
Entrepreneur
Comparison Chart

BASIS FOR COMPARISON BUSINESSMAN ENTREPRENEUR

MEANING A businessman is An entrepreneur is a
someone who sets up a person who starts an
business with an existing enterprise with a new
idea offering products idea or concept.,
and services to the undertaking commercial
customers activities.

Market Position Market Player Market Leader

Nature Calculative Intuitive
Market Creates place in existing Creates new market
markets
Risk factor Less Comparatively high
Comparison Chart

BASIS FOR COMPARISON BUSINESSMAN ENTREPRENEUR

Methods applied for Conventional Unconventional
doing things

Approach Holistic Atomistic

Orientation Profit People
Competition Very High Low
 Difference Between Businessman and
Entrepreneur

A person who is engaged in carrying out any activity,

related to commercial and industrial purposes is known
as Businessman. Is a person who runs the business,
undertaking an unoriginal business idea.

An entrepreneur is a person who conceive a unique idea

or concept to start an enterprise and brings it into reality.
He is the person who bears and uncertainties of the
business.
WHO IS YOUR MOST
INFLUENTIAL ENTREPRENEUR
OF ALL TIME?
 ROLE PLAY/GAME

PERFECT ENTREPRENUER GAME

1. Divide the group by pair.
2. Player 1 and player 2. Get ready with your pen
and paper.
3. First Role Session: Player 1-Give your reasons
why your are not so perfect entrepreneur? Player
2 will jot down.
4. Swap Roles
5. Second Role Session: Player 1 Give your reasons
why your are so perfect entrepreneur? Player 2
will jot down.
6. Swap roles.
7. Feedbacking/ learning/ indicating characteristics.
 QUESTIONS:

Do all learners have the potential characteristics to

become entrepreneurs?

Is it a negative if some learners do not posses the

characteristics to become an entrepreneur?

What have you learned from this exercise?

ENTREPRENEURIAL
COMPETENCIES

INITIATIVE
ENTREPRENEURIAL
COMPETENCIES

OPPORTUNITY
SEEKING
 ENTREPRENEURIAL
COMPETENCIES

PERSISTENCE
 ENTREPRENEURIAL
COMPETENCIES

COMMITMENT TO
WORK CONTRACT
 ENTREPRENEURIAL
COMPETENCIES

DEMAND FOR QUALITY

& EFFICIENCY
 ENTREPRENEURIAL
COMPETENCIES

RISK TAKING
 ENTREPRENEURIAL
COMPETENCIES

GOAL SETTING
 ENTREPRENEURIAL
COMPETENCIES

INFORMATION
SEEKING
ENTREPRENEURIAL
COMPETENCIES

SYSTEMATIC
PLANNING &
MONITORING
 ENTREPRENEURIAL
COMPETENCIES

PERSUASION &
NETWORKING
ENTREPRENEURIAL
COMPETENCIES

SELF
CONFIDENCE
 VIDEO PRESENTATION

..\..\..\..\DepEd
Files ZNNHS June 01, 2016\The Boardroom Videos
\THE BOARDROOM Sanitary Care Products Asia
Inc.mp4
Careers in Entrepreneurship

Entrepreneurs start new businesses and take on the

risk and rewards of being an owner. This is the
ultimate career in capitalism - putting your idea to
work in a competitive economy. Some new ventures
generate enormous wealth for the entrepreneur.
However, the job of entrepreneur is not for everyone.
You need to be hard-working, smart, creative, willing
to take risks and good with people. You need to have
heart, have motivation and have drive.
One of the best things about pursuing a career as an
entrepreneur is the wide-open possibilities. There is
room in many economies throughout the globe for
entrepreneurship - such as India, Brazil, Dubai, the
U.S. or Kenya. There are many industries where
wealth creation is possible be it the Internet and IT,
personal services, media, engineering or small local
business (e.g., dry cleaning, electronics repair,
restaurants). But there is a downside of
entrepreneurship too..
 THEORY OF ECONOMIC
GROWTH
 Economic growth was bound to be slow
unless there was an adequate supply of
entrepreneurs looking out for new ideas,
and willing to take the risk of
introducing them.
According by Maurice Zinkin

NO ENTREPRENEURS
NO DEVELOPMENT
ENTREPRENEURS’ FUNCTION IN
ECONOMIC DEVELOPMENT

TO MOBILIZE
CAPITAL
ENTREPRENEURS’ FUNCTION IN
ECONOMIC DEVELOPMENT

TO EXPLOIT NATURAL
RESOURCES
ENTREPRENEURS’ FUNCTION IN
ECONOMIC DEVELOPMENT

TO CREATE MARKETS
AND TO CARRY ON
TRADE
DEVELOPMENT OF
BUSINESS PLAN
Business Plan
– Is an indispensable tool for charting the course
of your business.
– Is a document that helps the small business
owner determine what resources are needed to
achieve the objectives of the firm, and provides
a standard against which to evaluate results.
Purpose of a Business Plan

 to serve as management’s guide during the

lifetime of the business; and
 to fulfill the requirement for securing lenders
and investors.
There are many different approaches to writing a
business plan, some more complex than others. But
the basic components of a business plan can be
organized as follows:
* providing a description of the business,
* choosing the best marketing strategy,
* identifying the management plan, and
* analyzing the finances needed to start the business
and make it successful.
PARTS OF THE BUSINESS PLAN

1. Title page and contents

2. Executive summary
3. Description of the business
4. Description of the product or
service
5. Market strategies
6. Analysis of the competition
7. Operations and management
8. Financial data
9. Supporting documents
1. Title Page and Contents

 The name of the business

 The name/s of the proponents (in this case the
SBO)
 Address
 Telephone number
 Email address and website address
 The date
 The name of the person who prepared the
business plan
2. The Executive Summary

 is a portion of the business plan that summarizes

the plan and states the objectives of the business.
– The capital needs of the business;
– How the money will be used;
– What benefits will be derived by the business from
the loan or investment; and
– In case of loan, how it will be repaid with interest,
and in the case of outside investment, how profits will
be generated.
The executive summary is prepared after the business
plan is written.
3. Description of the Business

 This divided into two parts:

- A short explanation of the industry; and
- A description of the business
4. Description of the Product or
Service

 What makes the product or service different from

others available in the market.

 The objective of product or service description is

to show that the firm has a competitive edge over
the others.
ACTIVITY:

. Design a Product, Develop a SWOT ANALYSIS

5. Market Strategies

 Components:
– Definition of the market;
– Determination of the market share;
– Positioning strategy;
– Pricing strategy;
– Distribution strategy; and
– Promotion strategy.
Market

 defined in terms of size, demographics, structure,

growth prospects, trends and sales potential.

 The objective of the market is to determine which

part of the total potential market will be served by
the firm.
Determine the total potential market; the total
aggregate sales of the competitors must be presented.
Steps in the Determination of the
Market Share

1. Determine the number of prospects in the target

market;
2. Determine the number of times the product
or service is purchased by the target market;
3. Figure out the potential annual purchase; and
4. Determine the percentage of the potential annual
purchase that the firm can attain (table5).
Positioning Strategy

Positioning – refers to how the firm differentiates its product

or service from those of the competitors and serving a niche.

PS – is one where the firm identifies a target market

segment and develops a strategy mix to address the desires
of that segment.
Pricing Strategies

 Cost plus pricing – this method covers all costs,

variable and fixed, plus an extra increment to
deliver profit.

 Demand pricing – this is a method of pricing

where the firm sets prices based on buyer desires.
The range acceptable to the target market is
determined.
Pricing Strategies

 Competitive pricing – this method of pricing

calls for price-setting on the basis of prices
charged by competitors.

 Market pricing – this is a form of cost-oriented

pricing in which the firm sets prices by adding
per-unit merchandise costs, operating expenses
and desired profit.
Distribution Strategy

Distribution – refers to the process of moving

goods and services from the firm to the buyers.
Common Distribution Channels

 Directs sales
 Original equipment manufacturer sales
 Manufacturer’s representatives
 Wholesalers
 Brokers
 Retailers
 Direct mails
Direct Sales Channel

PRODUCER

ULTIMATE
USER
Original Equipment Manufacturer Sales
Channel

ORIGINAL EQUIPMENT
MANUFACTURER

FINAL PRODUCT
MANUFACTURER

End USER
Manufacturer’s Representative Channel

Manufacturer

Representative

Wholesaler/Retailer/
End user
Wholesaler Channel

Manufacturer

Wholesaler

Retailer

End user
Broker Channel

Distributor/ Wholesaler

Broker

Retailer/ End user

Retailer Channel

Retailer

Consumer
Direct Mail Channel

Company

Consumer
Promotion Strategies

 Advertising - this consist of any form of paid,

non- personal presentation of ideas, goods, or
services.

 Packaging – describes how the company’s

products will
be packaged.
Promotion Strategies

 Public relations – this will be detailed presentation of

the publicity strategy of the firm. This will include a list
of media that will be tapped to convey the firm’s message
to the target market.
Promotion Strategies (cont.)

 Sales promotions – these are means used to support

the sales message like special sales, coupons, contests,
premium awards, trade-in, among others.

 Personal selling – this involves direct

communication between sellers and potential
customers.
6. Analysis of the Competition

Competitive analysis, the following must be

determined:
 The strengths and weaknesses of the firm’s
competitors;
 Strategies that will give the firm a competitive
advantage;
 Barriers that can be developed to prevent
competitors or would-be competitors from
exploiting the firm’s market; and

Analysis of the Competition (cont.)

 The aim of competitor analysis is to determine

how the firm stands against competition.
7. Operations and Management

 the plan must contain:

– Organizational structure;
– Operating expenses;
– Capital requirements; and
– Cost of goods sold
Organizational Structure

 Relating to on how the firm is organized and

considers the following concerns:
– Marketing (including sales, customer relations
and service);
– Production (including quality assurance);
– Research and development;
– Management; and
– Human resources
Operating Expenses

 Rent;
 Advertising and sales promotions;
 Supplies;
 Utilities;
 Packaging and shipping;
 Maintenance and repair;
 Equipment leases;
Operating Expenses (cont.)

 Payroll;
 Payroll taxes, and benefits;
 Bad debts;
 Professional services
 Insurance;
 Loan payments;
 Depreciation;
 Travel.
Capital Requirements

 Capital requirement are necessary items in operating

a business.
 The business will not be complete unless a listing
of capital equipment needed to be purchased is
drawn up.
– Equipment needs vary from business to
business.
 Manufacturing firms – need more elaborated types
of equipment.
 Service business – require less equipment.
Cost of Goods Sold

 Cost of goods of:

– Trading firms – cost of products purchased for resale,
– Manufacturing firms - total expenses incurred
in manufacturing the products that are intended to
be sold. These expenses include the following:
 Materials cost
 Labor costs
 Overhead costs (variable and Fixed Costs)
Financial Data

 Income Statement
 Balance Sheet
 Statement of Cash Flow
 Statement of Changes in Equity
Supporting Documents

 The owner’s resume;

 Contracts with suppliers;
 Contracts with customers or clients;
 Letters of reference;
 Letters of intent;
 A copy of the firm’s lease;
 A copy of copyright or patent acquired, if
applicable; and
 Tax returns for the past three years.
Business Implementation

 Implementation – is the process of executing a plan or

policy so that a concept becomes a reality. To implement a
plan properly, managers should communicate clear goals
and expectations, and supply employees with the
resources needed to help the company achieve its goals.
The End