Introduction to ENTREPRENEURSHIP Persuasion - means that he can entice people to buy

even if they don’t want to.

Relevance of Entrepreneurship to Organization
A Planner - he makes plans before doing things and does
1. Development of Managerial Capabilities not fail to monitor it.
– this means that one of the benefits an
entrepreneur gets is to develop his managerial Risk-taker - which means that he is willing to gamble but
skills. he will calculate it first.
2. Creation of Organizations
– which means that because of
entrepreneurships many organizations will exist. Common Competencies in Entrepreneurship
3. Improving standard of living
– this means that entrepreneurship can lift up the 1. Decisive - an entrepreneur must be firm in making
economic status of an individual. decisions.
4. Means of economic development
2. Communicator - an entrepreneur must have a
– this means that not only the life of the
convincing power.
entrepreneur is improved but also the society
where the business is located. 3. Leader - an entrepreneur must have the charisma to be
obeyed by his employees.
4. Opportunity seeker - an entrepreneur must have the
Entrepreneurship
ability to be the first to see business chances.
- The word entrepreneur is derived from the
5. Proactive – controlling a situation by making things to
French entreprendre, meaning “to undertake.”
happen or by preparing for possible future problems.
- The entrepreneur is one who undertakes to
organize, manage, and assume the risks of a 6. Risk Taker – they have the courage to pursue their
business. business ideas.
- Is a dynamic process of vision, change, and
creation. 7. Innovative - the entrepreneur has big business ideas
- It requires an application of energy and passion and they do not stop improving and thinking of new
toward the creation and implementation of new worthwhile ideas for their business.
ideas and creative solutions.

Core Competencies in Entrepreneurship

Factors affecting entrepreneurship 1. Economic and Dynamic Activity
Personality actors Environmental Factors - Entrepreneurship is an economic activity because it
• Initiative • Political involves the creation and operation of an enterprise with a
• Proactive • Climate view to creating value or wealth by ensuring optimum
• Problem Solver • Legal System utilization of limited resources.
• Perseverance • Economic
• Persuasion • Social Condition 2. Innovative
• Planner • Market situations
• Risk Taker – The entrepreneur constantly looks for new ideas, thus
he needs to be creative.
Personality factors
3. Profit Potential
Initiative - which means doing things even before being
told. - The entrepreneur can be compensated by his profit
coming from the operation.
Proactive - which means he can classify opportunities
and seize it.
Problem Solver - which means he can retain good
relations with other people. 4. Risk bearing
Perseverance - meaning he will pursue things to get done – The entrepreneur needs to gamble but wise enough to
regardless of challenges. offset the risk.
Types of Entrepreneurs The Entrepreneurial Process of Creating New Venture
1. Innovative Entrepreneurs - They are those who
Creation
always of new things
make Identification ofnew ideas.Opening
by thinking of They of
Entrepreneurial entrepreneurial
have the ability to think newer, better and moreentrepreneurial
economical
Ideas ideas. Opportunities Venture
2. Imitating Entrepreneurs - They are those who don’t
create new things but only follow the ideas of other 02 SOURCES OF OPPORTUNITIES
entrepreneurs. There are many ways to discover opportunities. Looking at
the big picture some have noticed the emerging trends
3. Fabian Entrepreneurs - They are skeptical about and patterns for business opportunities
changes to be made in the organization. They don’t initiate
but follow only after they are satisfied. ESSENTIALS IN ENTREPRENEURS OPPORTUNITY
4. Drone Entrepreneurs - They are those who live on the SEEKING
labor of others. They are die-hard conservatives even These are the basic foundation that the entrepreneur must
ready to suffer the loss of business. have in seeking opportunities:
• Entrepreneurial mind frame.
5. Social Entrepreneurs - They are those who initiate This allows the entrepreneur to see things in a
changes and drive social innovation and transformation in very positive and optimistic way in the midst of
the various fields such as education, health, human rights, difficult situation. Being a risk - taker, an
environment and enterprise development. entrepreneur can find solution when problems
arise.
• Entrepreneurial heart flame.
Career Opportunities of Entrepreneurship Entrepreneur's driven passion, they are attracted
to discover satisfaction in the act and process of
1. Business Consultant - with the expertise of in the field discovery. Passion is the great desire of an
of entrepreneurship, he can be a very good source of entrepreneur to achieve his/her goals.
advices to other entrepreneurs and would be business • Entrepreneurial gut game.
men. This refers to the ability of the entrepreneur of
2. Teacher - a graduate of an entrepreneurship can use being intuitive. This also known as intuition. The
his knowledge in teaching. gut game also means confidence in one’s self
and the firm believes that everything you aspire
3. Researcher - the entrepreneur can be employed as a can be reached.
researcher by an enterprise.
SOURCES OF OPPORTUNITIES
4. Sales - the entrepreneurship graduate can apply as a CHANGES IN THE ENVIRONMENT
salesman. Entrepreneurial ideas arise when changes happen in the
5. Business Reporter - the entrepreneur being expert in external environment. A person with an entrepreneurial
the field, can be employed as a business reporter. drive views these changes positively

TECHNOLOGIAL 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

GOVERNMENT TRUSTS, PROGRAMS AND POLICIES

The priorities, projects, programs, and policies of the
government are also good sources of ideas.
RECOGNIZE A POTENTIAL MARKET
01 ENTREPRENEURIAL IDEAS PEOPLE’S INTEREST
The creation of an entrepreneurial ideas leads to the The interest, hobbies, and preferences of people are rich
identification of entrepreneurial opportunities, which in turn source of entrepreneurial ideas.
results in the opening of an entrepreneurial venture.
The entrepreneurial process of creating a new venture is PAST EXPERIENCES
presented in the diagram below. (Aduana, 2017)
The expertise and skills developed by a person who has Value Proposition (VP) is a business or marketing
worked in a particular field may lead to the opening of statement that summarizes why a consumer should
related business enterprise. buy a company's product or use its service. This
statement is often used to convince a customer to
Factors of Changes in Environment purchase a particular product or service to add a form
PHYSICAL ENVIRONMENT of value to their lives. In creating Value Proposition,
CLIMATE - the weather conditions. entrepreneurs will consider the basic elements:
NATURAL RESOURCES - such as minerals, forests,
water, and fertile land that occur in nature and can be  Target Customer
used for economic gain.  Needs/opportunity
WILDLIFE - includes all mammals, birds, reptiles, fish,  Name of the product
etc., that live in the wild.  Name of the enterprise/company
There are many competitors in the market to
SOCIETAL ENVIRONMENT
establish superiority to them. Entrepreneurs should
POLITICAL FORCES - includes all the regulations, rules,
think some alternative and how it works better. An
and regulations that govern business practices as well as
important aspect in Value Proposition must be truthful
the permits, approvals, and licenses necessary to operate
the business.
that will establish credibility to the consumers.
ECONOMIC FORCES - such as income level and Example: Potential value proposition is most common
employment rate. in small businesses of your locality.
SOCIOCULTURAL FORCES - customs, lifestyles and
values that characterize a society. Aling Charing Sari-sari Store open only from 6:00 am
TECHNOLOGICAL ENVIRONMENT - New inventions to 6:00 pm, but Aling Charing noticed that there are
and technology innovations. customers who go nearby town to look for a
convenience store at around 10:00 pm to 6:00 am.
INDUSTRIAL ENVIRONMENT She believes that this is a great opportunity for her
COMPETITORS EMPLOYEES store to operate 24/7. In this example, proposed
CUSTOMERS GOVERNMENT value proposition: “Charing Sari-sari Store, opens
CREDITORS SUPPLIERS 24/7”.
The business describes sari-sari store – a basic retail
03 FORCES OF COMPETITION MODEL store. The assurance from this value proposition is
It is also known as the “five forces of competition,”
because of the phrase “opens 24/7”, Aling Charing
An industry environment is a competitive environment.
Sari- sari Store opens 24/7, which make it different
Regardless of what product or services you have, from other competitors.
competition is always present. Unique selling proposition (USP) refers to how you
sell your product or services to your customer. You
BUYERS will address the wants and desires of your customers.
The buyers are the one that pays cash in exchange to As entrepreneur, you think of marketing concept that
your goods and services persuade your target customers. The following
POTENTIAL NEW ENTRANT questions you may ask in doing this, What the
A new entrant is defined as the one who enters customers want? What brand does well? What your
something. competitor does well?
RIVALRY AMONG EXISTING FIRMS
Rivalry is a state or situation in which people or groups are Some tips for the entrepreneur on how to create an
competing with each other. effective unique selling proposition to the target
SUBSTITUTE PRODUCTS customers:
Substitute means anything that takes the place or function
of another  Identify and rank the uniqueness of the product
SUPPLIERS or services character
The Suppliers are the one that provide something that is  Very Specific
needed or wanted.  Keep it short and simple (KISS)
As entrepreneur, present the best feature of your
product or services that are different from other
LESSON 3: UNDERSTAND THE MARKET competitors. Identifying the unique selling proposition
requires marketing research that you will learn from
the other modules. In promoting your products or a. Gender e. Education
services, make sure that it is very specific and put b. Age f. Religion
details that emphasize the differentiator against the c. Income g. Ethnic group
competitors. Keep it short and simple and think of a d. Occupation h. Family size
tagline that is easy to remember. Right now, the
proposed unique selling proposition: “Charing Sari- 3. Psychological Segmentation- divided in terms
sari Store, opens 24/7”. for customers think and believe.
Readers get confused between value proposition and  Variables to consider:
unique selling proposition. The two propositions are a. Needs and wants
used to differentiate the products from competitors. b. Attitudes
For example, Jollibee is known to have a Filipino c. Social class
taste burger. This brand has a unique selling point d. Personality traits
because of its tagline “Langhap Sarap” e. e. Knowledge and awareness
Unique Value Proposition and Value Proposition are f. Brand concept
two most famous tools used to explain why prospect g. Lifestyle
customers buy each products and services. Based on
each definition, we learn that USP and VP are 4. Behavioral Segmentation- divided according to
frameworks of each business industry. The two customers behavior pattern as they interact with a
propositions are valuable for the entrepreneurs. company.

After you understand the value proposition and the  Variables to consider:
unique selling proposition,now it’s time to understand a. Perceptions d. Benefits
the target market, customers requirement and market b. Knowledge e. Loyalty
size. c. Reaction f. Responses

A. Target Market
Market Targeting is a sage in market identification B. Customer Requirements
process that aims to determine the buyers with Customer requirements are the specific
common needs and characteristics. Prospect characteristics that the customers need from a
customers are market segment that entrepreneurial product or a service.
venture intends to serve.
There can be two types of customer requirements:
In targeting a specific market, it will exclude people
even if it will not fit your criteria. Rather, target 1. Service Requirement
marketing allows you to focus your marketing money
and brand message on a specific market that is more 2. Output Requirement
likely to buy from you than other markets. Product is Service Requirement:
more affordable, efficient, and effective way to reach
potential clients and generate business. Intangible thing or product that is not able to be
touched but customer can feel the fulfillment. There
Commonly used methods for segmenting the market are elements in service requirement like on-time
are follows. delivery, service with a smile, easy-payment etc. It
1. Geographic segmentation – the total market is includes all aspects of how a customer expect to be
divided according to geographical location. treated while purchasing a product and how easy the
buying process goes.
 Variables to consider:
a. Climate Output Requirements:
b. Dominant ethnic group Tangible thing or things that can be seen.
c. Culture Characteristic specifications that a consumer expects
d. Density (either rural or urban) to be fulfilled in the product. Costumer that will avail
services as a product, then various service
2. Demographic Segmentation – divided based requirements can take the form of output
consumers. requirements. For example, if the consumer hires a
 Variables to consider: multi cab, then on-time arrival becomes an output
requirement. Customer buys gadgets (phone
speaker), the specification like the loudness and
clarity are the output requirements.

C. Market Size
Entrepreneur’s most critical task is to calculate the
market size, and the potential value that market has
for their startup business. Market research will
determine entrepreneur possible customers in one
locality.
What is Market Size?
Market size is like a size of arena where the
entrepreneurs will play their business. It is the
approximate number of sellers and buyers in a
particular market. Companies are interested in
knowing the market size before launching a new
product or service in the area. In determining the
market size, entrepreneur will conduct a strategic
marketing research from reliable sources using the
following method. First step is to estimate the
potential market – approximate number of customers
that will buy the product or avail your services.
Second step is to estimate the customers who
probably dislike to buy your product or avail the
services. Third step is for the entrepreneur to
estimate the market share, that means plotting and
calculating of the competitor’s market share to
determine the portion of the new venture. Market size
become the most important if you ever need to raise
funding for your business.