Republic of the Philippines

University of Eastern Philippines

UNIVERSITY OF EASTERN PHILIPPINES LABORATORY HIGH
SCHOOL
University Town, Northern Samar

MODULE 5 in

ENTREPRENEURSHI
P
Academic Year 2023-
2024

Course Code: 1722801

Course Title: SHSEntrepa
This belongs to:
Name: ______________________________
Grade & Section: ____________________________

RHOAN MAE G. EDRIA

Subject Teacher
For questions or inquiries, you may contact me at this number 09518342506 or send me a private
message through messenger.
DISCLAIMER
No copyright is intended. All information and materials included in these modules are owned
by their respective copyright holders. The school and the teacher (whose name appeared on
the cover page) do not represent nor claim ownership over them.

LESSON 1: RECOGNIZE A POTENTIAL MARKET

WHAT I NEED TO KNOW

This module will allow you to learn independently the knowledge and skills in recognizing a
potential market. It will guide you to identify the market problems to be solved or the market
needs to be met; and let you propose solution/s in terms of product/s and service/s that will
match the need using techniques on seeking, screening, and seizing opportunities. Also in this
module we are going to identify the market problem and propose solutions with regards to
products and services, to continue discover the ideal buiness you are going to offer to your
community. Basically, in return to your hard time of selling your product you can generate
profit.

In this module, you will know the following:

• Associate the market problem to be solved or the market need to be met;
• Look for solution/s in terms of product/s and service/s that will meet the need using
techniques on seeking, screening, and seizing opportunities:
• Break down the market needs;
• Detect the possible product/s or service/s that will meet the need of your locality.
• Screen the proposed solution/s based on viability, profitability, and customer need in
developing a Business Plan.
• Choose the best product or service that will meet the market needs.
This is your guide on how to develop a Business Plan. By identifying and appealing to
particular group of consumers you need to check on the possible product needed in your
locality.
Business industries offers products and services. The activity of making, buying, or
selling goods or providing services in exchange of money is called business. Product is
something that is made or grown to be sold or use, or something that is result of a process.
Services are those intangible products where there is a skill involve and has a value

WHAT I KNOW

True or False
Direction: On the space provided before the number write T if the statement is true and F if
the statement is false.
__T___ 1. Entrepreneur enter a business because of its profitability.
__T___ 2. New business ideas provide business opportunities.
__T___ 3. Entrepreneurial process starts with identification of entrepreneurial opportunities.
__T___ 4. Not all changes in the external environment provides business opportunities.
__T___ 5. Discovery and advancement in the use of technology are additional good source of
business opportunities.
__T___ 6. Interest and hobbies of the people are possible good source of entrepreneurial
ideas.
__T___ 7. Industry environment of business is under technological discovery and
advacement sources of opportunities.
__T___ 8. The variables in the physical environment include the economic forces.
__T___ 9. Entrepreneurial heart flame refers to the ability of the entrepreneur to sense
without using the five senses.
__T__ 10. Entrepreneurial mind frame permits the entrepreneur to see things in a very
positive and optimistic light.

What Is It

Entrepreneurial Ideas
The creation of an entrepreneurial ideas leads to the identification of entrepreneurial opportunities,
which in turn results in the opening of an entrepreneurial venture. The entrepreneurial process of
creating a new venture is presented in the diagram below. (Aduana, 2017)

Creation of Identification of Opening of

entrepreneurial entrepreneurial entrepreneurial
Ideas opportunities venture

The Entrepreneurial Process of Creating New Venture

Essentials in Entrepreneur’s Opportunity Seeking
These are the basic foundation that the entrepreneur must have in seeking opportunities:
Entrepreneurial mind frame. This allows the entrepreneur to see things in a very
positive and optimistic way in the midst of difficult situation. Being a risk - taker, an
entrepreneur can find solution when problems arise.
Entrepreneurial heart flame. Entrepreneur's driven passion, they are attracted to
discover satisfaction in the act and process of discovery. Passion is the great desire of an
entrepreneur to achieve his/her goals.
 Entrepreneurial gut game. This refers to the ability of the entrepreneur of being
intuitive. This also known as intuition. The gut game also means confidence in one’s self and
the firm believes that everything you aspire can be reached.

Sources of Opportunities
There are many ways to discover opportunities. Looking at the big picture some have noticed
the emerging trends and patterns for business opportunities. While others are trying to find
out their target market. Some are the following sources of opportunities:
1. Changes in the environment
Entrepreneurial ideas arise when changes happen in the external environment.
A person with an entrepreneurial drive views these changes positively.
External environment refers to the physical environment, societal
environment, and industry environment where the business operates.
1.1 The physical environment includes
a. Climate- the weather conditions.
b. Natural resources- such as minerals, forests, water, and fertile land that
occur in nature and can be used for economic gain.
c. Wildlife- includes all mammals, birds, reptiles, fish, etc., that live in the
wild.
1.2 The Societal environment includes the various forces like
a. Political forces- includes all the laws, rules, and regulations that govern business practices
as well as the permits, approvals, and licenses necessary to operate the business.
b. Economic forces- such as income level and employment rate.
c. Sociocultural forces- customs, lifestyles and values that characterize a society.
d. Technological environment- New inventions and technology innovations.
1.3 The industry environment of the business includes:
a. Competitors
b. Customers
c. Creditors
d. Employees
e. Government
f. Suppliers
For example, one factor in the physical environment that can easily change is the climate.
The temperature is very high during summer but very low during the rainy season. An
individual with entrepreneurial drive can be extremely imaginative and inventive in
identifying opportunities. He/she can venture a business that responds to the needs of the
people during summer and rainy season.

2. Technological discovery and advancement

A person with entrepreneurial interest sees possibility of business opportunities in any
new discovery or because of the use of latest technology. For example, an individual
with knowledge in repair and installation of a machine engine discovers that
additional engine parts that considerably reduce fuel consumption.

3. Government’s thrust, programs, and policies

The priorities, projects, programs, and policies of the government are also good
sources of ideas. For example, the use of firecrackers to celebrate New Year’s Eve is
strictly prohibited. People without entrepreneurial interest will view the ordinance as a
plain restriction. However, for an entrepreneur, it is a business opportunity to come up
with a new product that will serve as a substitute for firecrackers.

4. People’s interest
The interest, hobbies, and preferences of people are rich source of entrepreneurial
ideas. Like the increasing number of Internet Café at present could be lead to the
strong attachment of young people to computers.

5. Past experiences
The expertise and skills developed by a person who has worked in a particular field
may lead to the opening of related business enterprise. For example an accountant
who has learned the appropriate accounting and management skills and techniques in
a prominent accounting firm can start his/her business venture by opening his/her own
accounting firm.

Forces of Competition Model

It is also known as the “five forces of competition,” An industry environment is a
competitive environment. Regardless of what product or services you have, competition is
always present.
Competition – it is the act or process of trying to get or win something.
For example, the prices are lower when there is a competition among the stores.
These are the five forces competing within the industry:
• Buyers
• Potential new entrants
• Rivalry among existing firms
• Substitute products
• Supplier

1. Buyers

The buyers are the one that pays cash in exchange to your goods and services. For
example, the influenced of the price or in the bargaining strategy. The buyer has a
strong and magnified bargaining power. The threat of its bargaining power will be
less if the following factors notice:
a. There are several suppliers available in the market.
b. The buyer has the potential for backward integration.
c. The cost of switching the supplier cost is minimal.
d. The product represents a high percentage of the buyer’s cost.
e. The buyer purchases large portions of the seller’s product or services.
2. Potential New Entrants
A new entrant is defined as the one who enters something. For example, the level of
capital requirements, if the business requires huge capital, new entrants should decline to join
the business. This gives a threat to the business. This can be notice if there is the presence of
the following factors:
a. Substantial capital requirement.
b. Strict government policy.
c. Difficulty in accessing distribution channels.
d. Economies of scale.
e. High cost of product differentiation.
f. High switching cost

3.Rivalry among Existing Firms

Rivalry is a state or situation in which people or groups are competing with

each other. For example it depends on the Marketing strategy of your competitor, like
giving freebies and special offers. The intensity of rivalry among existing firms is
characterized to the following factors:
a. Diversity of rivals.
b. Number of competing firms.
c. Characteristics of the products or services.
d. Increased capacity.
e. Amount of fixed costs.
f. Rate of industry growth.

4. Substitute Products
Substitute means anything that takes the place or function of another. For example the
consumers decide to use margarine as a substitute for butter. In case the price of butter
increases, preferably the consumer will gradually switch to margarine. A substitute product
can give a big threat in the industry environment if the following factors are notice:
a. Switching cost is low.
b. Preferences and tastes of the customers easily change.
c. Product differentiation is highly noticeable
d. The quality of substitute products dramatically improves.
e. The price of substitute product is substantially lower.

5. Suppliers

The Suppliers are the one that provide something that is needed or wanted. For
example if the supply and services being offered is unstable or keep. The intensity of
the threat is strong in this kind of the competitive force in the industry. This can be
notice if there is the presence of the following factors:

a. The supplier has the ability for forward integration.

b. Suppliers in the industry are few, but the sales volume is high.
c. Substitute products are not readily available in the market
d. The switching cost is very high.
e. The product or service is unique.
ACTIVITY 5

Name:_________________________________ Deadline:
Received Date: _______________

ACTIVITY
Conduct a short interview of any successful entrepreneur in your locality. Ask
the following question:
• What is the nature of your business?
• Who are your customers?
• What industry are you operating?
• How much was your starting capital?
• How many years in operation?
• How many manpower involved from the start of operation until now?

Interviewer: "Hello, could you please tell us about the nature of your
business?"

Entrepreneur: "Of course! I run a digital marketing agency that specializes in

helping small and medium-sized businesses enhance their online presence and
reach their target audience more effectively."

Interviewer: "Who are your primary customers?"

Entrepreneur: "Our main clients are local businesses, ranging from restaurants
and retailers to professional services such as law firms and medical practices."

Interviewer: "In which industry do you operate?"

Entrepreneur: "We operate in the digital marketing and advertising industry,

where we provide a wide range of services, including social media
management, search engine optimization (SEO), and pay-per-click (PPC)
advertising."

Interviewer: "Could you share some insights into your starting capital?"

Entrepreneur: "When I initially started the business, I invested around $20,000

to cover the costs of setting up a website, purchasing necessary software, and
hiring a small team. It was a lean startup approach."
Interviewer: "How many years have you been in operation?"

Entrepreneur: "We've been in operation for 5 years now. It's been an exciting
journey, with both challenges and opportunities along the way."

Interviewer: "Can you tell us how many employees have been involved from
the start until now?"

Entrepreneur: "Initially, it was just me, and I operated the business as a

solopreneur. Over the years, we've grown, and currently, we have a team of 15
dedicated professionals working with us to serve our clients and drive our
business forward."

DO NOT ANSWER THE ACTIVITY JUST

RELAX AND BE READY FOR THE MIDTERM
EXAM! 