Entrepreneurial Process PDF

LESSON 2 RECOGNIZE THE POTENTIAL MARKET MR. JEYMAR P. BACARON Course Facilitator  Objectives: Learn and understand the sources of opportunities for business. Determine the essentials in the entrepreneur’s opportunity seeking. Identify market problems an...

LESSON 2 RECOGNIZE THE POTENTIAL MARKET MR. JEYMAR P. BACARON Course Facilitator  Objectives: Learn and understand the sources of opportunities for business. Determine the essentials in the entrepreneur’s opportunity seeking. Identify market problems and propose potential products or services that will meet the market needs. Know the problem in which a business opportunity arises from. 3  Objectives: Identify, screen and propose solutions to meet the problem. Select the best product or service that will meet the market’s need with a consideration of generating profit. 4 5 6 7 8 9 10 11 12  COMPONENTS AND STEPS IN THE ENTREPRENEURIAL PROCESS 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34  The entrepreneurial Process of Creating New Venture 35  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 solutions when problems arise. 36  Entrepreneurial heart flame Entrepreneurs are driven by 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. 37  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 belief that everything you aspire can be reached. 38  Sources of Opportunities 39  Changes in the environment The Societal environment The Industry environment of the business 40  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. 41  Government’s thrust, programs, and policies The priorities, projects, programs, and policies of the government are also good sources of ideas. However, for an entrepreneur, it is a business opportunity to come up with a new product that will 42 serve as a substitute for firecrackers.  People’s interest The interest, hobbies, and preferences of people are rich sources of entrepreneurial ideas. 43  Past experiences The expertise and skills developed by a person who has worked in a particular field may lead to the opening of a related business enterprise. 44  Forces of Competition Model 45  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. 46  These are the five forces competing within the industry: Buyer Potential of new entrants Rivalry among existing firms Substitute products 47 Supplier  There are several suppliers available in the market. The buyer has the potential for backward integration. The buyer has the potential for backward integration. 48  Potential New Entrants A new entrant is defined as companies or businesses that have the ability to penetrate or enter into a particular industry. 49  Strict government policy Difficulty in accessing distribution channels 50  Rivalry among Existing Firms Rivalry is a state or situation wherein business organizations are competing with each other in a particular market. 51  Rivalry among Existing Firms Diversity of rivals Number of competing firms Characteristics of the products or services Rate of industry growth 52  Substitute Products Preferences and tastes of the customers easily change The price of substitute product is substantially lower Product differentiation is highly noticeable 53  Suppliers Suppliers in the industry are few, but the sales volume is high Substitute products are not readily available in the market Product differentiation is highly noticeable 54 THANK YOU