ENTREPRENEURSHIP

by: Lucy Marcos Blanco

 BUSINESS PLAN

 Introduction
 Executive Summary  Production Plan
 Environment Analysis  Operation Plan
 Business Description  Marketing Plan
 Organization Plan  Financial Plan
 Appendix
 Characteristics of an Entrepreneur
Who Aspires to Achieve
Opportunity
seeker
Committed

Efficient and
quality
oriented

Persistent
Risk-taker
 ENTREPRENEURSHIP
 the art of observing correct practices in managing
and operating a self-owned wealth-creating business
enterprise by providing goods and services that are
valuable to the customers.
 the activity of setting up a business or businesses,
taking on financial risks in the hope of profit.
SMEs - Small and Medium Enterprises
- promoted by both government and
(NGOs) Non-government Organizations

 Small business refers to a business or a enterprise

that correctly adopts and practices the principles of
entrepreneurship.
 Salient Features of Entrepreneurship

Providing values to
customers

Wealth-creating Opening and managing

venture self-owned business

Entrepreneurship

Art of correct Risk-taking venture

practices
 Theories of Entrepreneurship
• Innovation theory - by Joseph Schumpeter
• Employment,interest and money theory ( Keynesian
theory) - by John Maynard Keynes
• Economic theory - by Alfred Marshall
• Risk and uncertainty-bearing theory - by Frank Hyneman
Knight
• Sociological Theory - by Max Weber
• Technological Theory - by Nicholas Kaldor
• Gap-filling theory - by Henry Leibenstien
• Learning-alertness theory - by Israel Kirzner
 Entrepreneurship and ordinary Small
Business Activity
 Motive in opening a Vision for development
business and growth
Perception of risk in the  Horizon of business
business operation
 Reactions to changes in  Sources of business
the environment funds
 View on competition
Motive in opening a business

• What small business would you engage in?

• Why would you open your own small business?
• When your next-door neighbor opens a small
business and it attracts good customers, are you also
going to open your own small business? Why do you
say so?
Perception of risk in the business

• Would you expect risks in your business? Why?

• How would you handle the risks in your business?
• Would you have the necessary plan in case business
risks arise? What would it be?
Reactions to changes in the environment

• What possible changes may take place in the

environment where your business operates?
• Would you consider them favorable or unfavorable to
your business? Why?
• What benefits can your business derive from the
changes in the environment?
View of competition

• What is your view about competition?

• Do you consider competition in your community
healthy? Why?
• How should you treat your competitors?
Vision for development and growth

• Would you have a development plan for your

business? Why or Why not?
• Would you consider preparing a development plan a
useless endeavor? Why or why not?
• Would you express your development plan in
concrete terms? Why or why not?
• What would be the emphasis of your one-year
development plan? How about your three-or-five year
development plan?
Horizon of business operation

• Toward what business horizon would you direct

your business?
• Why would you choose that business horizon?
Sources of business funds
• What will be the primary source of funds for your
business?
• Will financial institutions be willing to finance it?
Why?
• Do you strongly believe that your business venture is
worth funding by external sources? Why or why not?
• Would you consider the cost of borrowing before you
actually borrow the funds? Why?
 Misconceptions on Entrepreneurship
• Entrepreneurship applies only to manufacturing
businesses.
• Entrepreneurship applies ony to small businesses.
• Entrepreneurship applies only to persons with good
educational background in business courses.
• Entrepreneurship applies only to a good economy.
• Entrepreneurship is simply opening a small business
 Importance of Entrepreneurship
(The Flow of Entrepreneurship)

Contributions of
entrepreneurship

Philippine
Filipino people Local community
economy
 The Entrepreneurial Process of
Creating a New Venture

Creation of Identification of Opening of

entrepreneurial entrepreneurial entrepreneurial
idea opportunities venture
 The External Environment of a Business Venture
Physical Environment Climate
Societal Environment
(PESTEL analysis)
Economic
Political Industry Environment forces
forces
Employee The new Government

business Competitors
Creditors
venture
Consumers Suppliers
Technological Sociocultural
forces forces

Legal Wildlife
Natural resouces forces
 Entrepreneurial Competency as Source of
Competitive advantage

Entrepreneurial concepts Entrepreneurial

and principles character traits
Entrepreneurial
skills cognitive, technical, interpersonal

Entrepreneurial
competitive advantage
 ANALYSIS
• PESTEL - Political, Economic, Sociocultural,
Technological, Ecological, and Legal forces
• PEST - disregards the ecological and legal forces
• STEEPLE - to which ethics is an additional factor
• STEEPLED - similar to STEEPLE but with addition of
demographic factor.
 Sample template of PESTEL Analysis

Political Economic Socio-cultural Technological Ecological Legal

Forces Forces Forces Forces Forces Forces

Low level of
Instability High interest education Readily
of the rates given by among available Frequently-
Philippine commercial public school internet and Abundant changed tax
Government banks graduates social media raw materials laws

PESTEL ANALYSIS
 The Five Forces of Competition Model
in the Industry Environment
Threats of
potential new
entrants

Bargaining Bargaining
Rivalry among
power of power of
existing firms
suppliers buyers

Threats of
substitute
products
COMPETITIVE FORCES MATRIX
FIVE Barriers to the Effect of the
COMPETING Force Barriers to the
Force HIGH Moderate Low
(High, Medium,
Low)
Potential new
entrants

Bargaining
power of
buyers
Bargaining
power of
suppliers
Threat of
substitute
products
Rivalry among
existing firms