What is Entrepreneurship?

Entrepreneurship is a proactive process of developing a business venture to make a profit. It

involves seeking opportunities for a market, establishing and operating a business out of the
opportunity, and assessing its risks and rewards through close monitoring of the operations. With this
definition, being an entrepreneur may seem difficult, but it can be rewarding if the enterprise flourishes.
Creating a sound business plan, along with efficient and effective operation of the business, will not only
benefit the entrepreneur but also the entire society and the economy.
An entrepreneur is successful if the business that he or she envisioned has materialized into a
thriving industry with regular customer and financial gain. He or she either decides to maintain his or her
business or expand. This eventually reflects on the society and the economy as a whole. Here are the
societal and economic benefits of entrepreneurship.
1. Entrepreneurship produces more jobs that equate to an increase in national income.
Millions of unemployed people will have the opportunities to have a decent occupation. Small
businesses produce jobs and wealth.
2. Entrepreneurship amplifies economic activities of different sectors of society. A simple
eatery in a rural area and a coffee shop in an urban area both ignite economic activity regardless of their
business scale.
3. Entrepreneurship introduces new and innovative products and services. New products and
services are always available in the market because of the ingenuity of entrepreneurs to seek
opportunities and improve on them.
4. Entrepreneurship improves people’s living standards. How can you look good if not for the
services of your nearby salon or barber shop? How can your day be complete without the food that a
nearby eatery cooks? How can you live without the sari-sari store near your house where you buy your
basic needs?
5. Entrepreneurship disperses the economic power and creates equality. It balances the
economy by disturbing national income to more businesses rather than to only few monopolies.
6. Entrepreneurship controls the local wealth and balances regional development. It makes
sure local resources are used properly and that every area has an appropriate allocation of resources.
7. Entrepreneurship reduces social conflicts and political unrest. Imagine if there are no or only
few sari-sari or supermarket stores in your area. All of you will then fight for the good supplies because
the store cannot supply all your needs.
8. Entrepreneurship elicits economic independence and capital information. A country with
more entrepreneurs is highly likely to become financially independent and will less likely need the help
of other countries. This also applies to family, barangays, cities. Entrepreneurship creates wealth instead
of barrowing wealth.
The first concept that should be understood is the concept of business.

BUSINESS is the activity of making, buying, selling or supplying goods or services for money. In other
words, a business is a commercial organization such as a company, shop/store or factory. One of the
primary goals of business is to make money.

Another concept for making money in business is called revenue.

Revenue is the amount of money that is brought into a company by its business activities. Revenue is
calculated by multiplying the price at which goods or services are sold by the number of units or amount
sold.

Ms. . Kathryn Padilla bought 500.00 worth ingredients to produce 50pcs. . Of cupcakes she decided to
sell the cupcakes at 20 pesos.

How much will be Ms. Padilla Revenue if the cupcakes were all sold?
50x20=1000
2. How much will be the Profit after deducting the expenses incurred?
1000-500expenses=500
Equally important to the concept of revenue is the concept of profits. Profits are typically main goal of
every business aside from fulfilling a need or problem that a customer has.
Profit is the money a business makes after accounting for all the expenses. Regardless of whether the
business is a couple of kids running a lemonade stand or a publicly traded multinational company,
consistently earning profit is every company’s goal.
In short, Revenue – Expenses = Profit.

Who is an Entrepreneur?
The word “entrepreneur” has a French origin and was coined from the words entre, which
means “between,” and prendre , which means “to take.”

The definition of an entrepreneur only provides you with a general description or shows you
want is expected from an entrepreneur. However, entrepreneurship is composed of varying degrees or
levels of intensity. According to action coach, there are five levels of intrepreneurial development.
1.The self-employed. Self-employed persons are, simply put, not comfortable with routines of a
desk job.
2.The manager. In this level, entrepreneurs feel the need to step up and ask some help from the
people around them. They delegate and hire potential employees to do the work
3. The leader. Entrepreneurs in this level already enjoy seeing their people flourish , stepping up
and producing great results with minimal supervision.
4.The investor. Investors look for more opportunities for their business to grow.
5. The true entrepreneur. True entrepreneurs, based on their experience, now aim for quality
and excellence in their work.

The world of entrepreneurship these days has already evolved, and new terms are coined to suit
an entrepreneur’s field or expertise. Here are some of them.
1. A technopreneur is an entrepreneur who puts technology at then core of his or her business
model.
2. A social entrepreneur is one who takes advantage of the country’s social problems and turn
them to profitable institutions with the intention of helping the disadvantaged community rather than
making a profit.
3. an intrapreneur is an entrepreneur on a large company corporation who is tasked to think,
establish, and run a new big idea or project. Intrapreneurs are usually the product managers or the
business development managers of a company.
4. An extrapreneur is an entrepreneur who hops from one company to another to act as the
innovation champion, providing creative and efficient solutions.

Here are the common traits that entrepreneurs should always have.
1. Proactive. Entrepreneurs are reactive rather than passive. They address issues, problems,
and challenges before they come rather than when they already happened.
2. Agents of changed. Entrepreneurs are innovation champions. They see opportunities in
hopeless and complex situations. They are always enthused to improve and develop new
products and services and introduce them to the market. They don’t settle for mediocrity
and the status qou.
3. Risk takers. Entrepreneurs will not be successful if they do not take risks. By taking risks,
entrepreneurs do not just grab opportunities left and right; they have to take into
consideration and potential various threats they may encounter. Entrepreneurs calculate
risks; if they think that there is a big chance of succeeding, they push through with the
venture and don’t let the opportunity pass.
4. Have a sharp eye for opportunities. Entrepreneurs have a talent for recognizing an
opportunity even by using the macrolevel data only. They know how to assess the net cause
and effect of an opportunity and decide intelligently if a venture should be considered or
not.
5. Sociable. Soft skills are one of the most important competencies of entrepreneurs as these
establish the relationship with the most important assets of the company──its people and
its customers.
6. Networkers. A networker knows the key people to connect with.
 7. Decisive. Entrepreneurs always have a decision about their business. They do not settle for
gray areas or unclear solutions.
8. Balanced. The minds of entrepreneurs should have a balance between the analytical and the
creative side. Their brains are always playing with “unique ideas” that no one has ever thought
of yet. Entrepreneurs always have “Eureka!” moments and enjoy them.
9. Innovative. The minds of entrepreneurs are rich with big ideas that can add value to their
existing business or could become a game changer in the industry or business where they
belong.

Entrepreneurship or Employment?
Entrepreneurship and employment are two different career paths that a person can choose
depending on his/her personal aspirations and work characteristics. It is really up to the person at the
end of the day on what career trail he/she will follow, considering all compelling career factors that are
important to him/her.

Common and Core Competencies in Entrepreneurship

Entrepreneurship is a career that requires a plethora of common and core competencies . Therefore, to
be considered a successful entrepreneur, he or she must possess common entrepreneurial
competencies that are needed all throughout the entrepreneurship career. At the same time, he or she
should also possess core competencies that are needed for business sustainability and management.

Kindly research the pros and cons of entrepreneur vs. employee

A value proposition (VP) simply states why customer should buy a certain product or service. Customers
are very specific when it comes to their needs and their desired benefits, so the value proposition
should cater to those particular needs.

Market size is simply the size the arena where the entrepreneur’s business will play. It is the
approximation of the number of buyers and sellers in a particular market.

Demographic segmentation, also called socioeconomic segmentation, is the process of grouping

customers according to relevant socioeconomic variables for the business venture. The socioeconomic
variables include income range and social class, occupation, gender, and age, religion, and ethnicity.
Psychographic
Psychographic segmentation is a process of grouping customers according to their perceptions,
way of life, motivations, and inclinations. Perception is a process wherein an individual receives external
stimuli using the five senses of hearing, touching, smelling, seeing, and tasting.

Geographic segmentation is simply grouping customers according to their location. This is

critical in the analysis of the target market as this encompasses the cultures, beliefs, preferences,
politics, and lifestyle of a certain geography

Behavioral segmentation is the process of grouping the customers according to their actions.
These behaviors are instigated by occasions, desired benefits, loyalty, and usage of products or
availment of services.

MARKETING MIX – also known as four P’s broad levels of marketing decision namely Product,
Price, Place and Promotion, it is a foundation concept in marketing. It is defined as the “set of marketing
tools that the firm uses to pursue its marketing objectives in the target market.

Productis anything in the form of good, service or idea consisting of a bundle of tangible and
intangible attributes that can be offered to a market that might satisfy a want or need and is received in
exchange for money or something else of value.
Placeis making the products available in the right quantities and locations where customer
wants them.
Pricedetermines the value of a good or service to the buyers even to the sellers. It is the
amount of money needed in order to acquire a product or service and its accompanying service.
Means the money value of a product or service expressed in terms of peso and or centavos
 Promotionis any form of communication which is used to inform, persuade and remind
people about na organization or individual’s goods, services, image, ideas, community involvement or
impact on the society.
People marketing entails endeavors aimed at cultivating the attention, interest and
preferences of a target market toward a celebrity or authority figure. Can be considered as product by
providing satisfaction to the consumer.
Packagingis a group of activities in product planning which involve designing and producing
container or wrapper for a product.
Positioning – refers to how the firm differentiates their product or service from those of the
competitors and serving a niche. It is one where the firm identifies a target segment and develops a
strategy mix to address the desires of that segment.

General kinds of Products

1. Breakthrough products – completely offers new performance benefits. They may double the
performance at half the cost. Much more convenient and easy to use.
2. Differentiated Products – try to claim a new space in the mind of the customer different from
the spaces occupied by existing products. The performance benefits may be close to existing
products but there would be additional benefits on special aspects of the products.
3. Copycat products – will not make much impression on the consumers mind. The marketer
should make up for this lack of mental space by offering more physical space in the shelves,
lower prices, easier access, promotional freebies and the like.
4. Niche products. – do not intend to compete directly with the giants. They are products with
lower reach, lower visibility, lower prices, and lower top of mind.

Level of Products
1. Tangible products – are basic physical appearance which can be a service or idea having a precise
specifications and is offered under a given / specified description or model number.
2. Augmented product – includes the image and service features of a certain entity. It gives emphasis on
the intangible benefits that the customer will be getting from buying the product.
3. Generic product – emphasizes the impact of the product to the consumer, not the seller. This will
signify the purpose of its existence and the primary objective in creating the product.

GOODS– are sale of the physical products from the manufacturer to the consumer or final and ultimate
user. These are tangible products that can be measure the satisfaction with result or evidences as
manifested through physical development.

a. Durable goods – are the physical products that are used over a long a period of time. These products
are expensive because of the quality of the materials used.
b. Non-Durable goods – are the physical products that are quickly and easily consumed or worn out,
become obsolete, unfashionable or no longer popular. These products are inexpensive and can easily be
damaged.)

SERVICES- are intangible products that satisfaction can be measured in future preferences ( Relaxation
in salon and spa, Education from school)
a. Rented – goods services – are the consumer rented facility of the sellers in certain period of time
b. Owned – goods services – are the repair and maintenance services rendered by the sellers to the
products of the customer.
c. Non-good service – is personal service on the part of the seller; most common are the expertise and
profession of the seller.

Consumer ProductsThese are goods and services destined/produced for the final consumer for
personal, family or household use. The use of the goods or services designates it as a consumer product.

Convenience Productsare purchased with the minimum or less effort because the buyer has
knowledge of product characteristics prior to shopping. The consumer is not willing to search or look for
information and will accept a substitute rather than visit another store categorized as follows :
Staples – are low priced that are routinely purchased on a regular basis and are products that are used
every day.
Impulse products – products are the items that the consumer does not plan to buy. The customer was
attracted to buy the product for some reasons like the very impressive promotional campaign or low
price on sale items, etc.
Shopping products -are products that the consumers acquire through further knowledge and
information in order to make a final purchase decision. Consumers will exert effort in searching or
looking for information because these products have high prices and are bought infrequently.

Specialty productsare the items with particular brands and stores to which consumers are loyal. They
are willing to make a significant or specific effort to acquire the brand desired units and will pay higher
or above the price of similar products.

Industrial Products– are goods or services purchased for use/consumption in the production /
manufacturing of other goods or services, in the operation of a business or for resale to other
customers. Industrial products are categorized based on the degree of the decision making involved,
cost, rapidity of consumption, role in product and change in form.

Price is the peso value that the entrepreneur assigns to a certain product or service after considering its
costs, competitions, objectives, positioning, and target market. It is only P in the 7ps that generates
revenue for the business.
Here are the most common pricing strategies.
1. Bundling- this refers to two or more products or services in one reduced price
2. Penetration pricing- this refers to setting low prices to increase the price once the desired market
share is achieved
3. Skimming- this is the opposite of penetration pricing where prices are initially high and then they are
lowered to offer the product or service to a winder market
4. Competitive pricing- this refers to brenchmarking prices with the competitors
5. Product line pricing- this refers to pricing different products or services within a parallel product array
using varying price points
6. Psychological pricing- this considers the psychology and positioning of the price in the market
7. Premium pricing- this refers to setting a very high price to reflect elitism and superiority
8. Optional pricing- this refers to adding an extra product or service on the top of the original to
generate more revenue
9. Cost-based pricing- the basis of markup is the cost of sales. For
10. Cost plus pricing- the markup is based on a certain percentage of cost

Promotion

Advertising – this is a type of communication that influences the behaviour of a customer to choose the
product or service of the entrepreneur over the competitors.
Television- regular channels, cable TV
Radio- AM and FM radio
Internet- e-mails, web sites, blogs, social media, search engines, podcasts
Mobile phones- text messages, mobile application, mobile internet
Print- newspapers, magazines, flyers, directories, signages, posters
Out-of-home- billboards, buses, bus stops, trains, train station, taxis, street advertisement

Sales promotions- These are short-term promotional gimmicks wherein practical incentives and
appealing activities are incorporated to entice the customers to buy the product or avail of the service.

Public relation- These are image-building initiatives of the entrepreneur to make the name of the
business reputable to stakeholders, such as the target customers, governments agencies, business
partners, media, and the public. unlike advertisements, public relations (pr) do not directly promote
products or services
SUPPLY CHAIN in Business Model

 Sequence of activities and organizations involved in producing and delivering a good or service
The management of systems or process that crate goods or provide services.
 Optimizing your operations to maximize both speed and efficiency.
 MARKET POTENTIAL
GROWTH RATE can be determined by checking the facts and figures of the last 5 years of the
industry that you are in
UNIQUE SELLING PREPOSITIONThis is the factor or consideration presented by a seller as the reason
that one product or service is different from and better than that of the competition
MARKETAn actual place where forces of demand and supply operate, and where buyers and sellers
interact to
 trade goods & Services
 money or barter
Market Sources of Opportunity
Newly identified need, want, or demand trend that a firm can exploit.
Micromarket – refers to the specific target market segment of a Particular enterprise
Customer Preference – refers to the taste of particular groups of people.
Customer dislike – refers to the things that irritate customer

Other Sources of opportunities

1.Customer Preference change over time
2. People’s taste in clothes, Music, shoes, entertainment, dance, sports, hobbies, and even careers have
evolved over the years.
3.What piques customers is a great source of opportunities.
4. Before the customers is won over, there is a first battle for the mind. Next, there is a battle for the
heart. Finally, there is a battle for the wallet.
5. The Longer the customer wants to use the product, the greater the chances of creating lasting loyalty.
6. Opportunities abound in shaping customers perception, or occupying spaces in their minds or places
in their hearts that have not yet been filled.

Do your task!
Research about the Pros and Cons of Entrepreneur vs employee
Characteristics of Branding