Entrepreneurship PDF

Entrepreneurship SAMSON ALBERT D. SALAS Regional Science High School For Region 02 Entrepreneurship Recognize a Potential Market SAMSON ALBERT D. SALAS Regional Science High School For Region 02 OBJECTIVES At the end of this lesson, you are expected to:  Learn and understand th...

Entrepreneurship SAMSON ALBERT D. SALAS Regional Science High School For Region 02 Entrepreneurship Recognize a Potential Market SAMSON ALBERT D. SALAS Regional Science High School For Region 02 OBJECTIVES At the end of this lesson, you are expected to:  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.  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.  Entrepreneurial Ideas The creation of an entrepreneurial idea leads to the identification of entrepreneurial opportunities, which in turn results in the opening of an entrepreneurial venture.  The Entrepreneurial Process of Creating New Venture Identification Creation of an Opening of an of entrepreneurial entrepreneurial entrepreneurial idea venture opportunities  Essentials in Entrepreneur’s Opportunity – Seeking The basic foundation that the entrepreneur must have in seeking opportunities: 1. 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.  Essentials in Entrepreneur’s Opportunity – Seeking The basic foundation that the entrepreneur must have in seeking opportunities: 2. 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.  Essentials in Entrepreneur’s Opportunity – Seeking The basic foundation that the entrepreneur must have in seeking opportunities: 3. Entrepreneurial gut game  refersto the ability of the entrepreneur of being intuitive.  also known as intuition  means confidence in one’s self and the firm belief that everything you aspire can be reached  Sources of Opportunities 1. Changes in the environment  Entrepreneurial ideas arise when changes happen in the external environment.  External environment refers to the physical environment, societal environment, and industry environment where the business operates.  Sources of Opportunities 1. Changes in the environment 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.  Sources of Opportunities 1. Changes in the environment 1.2 The Societal environment includes the various forces like a. Political forces b. Economic forces c. Sociocultural forces d. Technological environment  Sources of Opportunities 1. Changes in the environment 1.3 The Industry environment of the business includes: a. Competitors b. Customers c. Creditors d. Employees e. Government f. Suppliers  Sources of Opportunities 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.  Sources of Opportunities 3. Government’s thrust, programs, and policies  Thepriorities, projects, programs, and policies of the government are also good sources of ideas.  Sources of Opportunities 4. People’s Interest  The interest, hobbies, and preferences of people are rich sources of entrepreneurial ideas.  Sources of Opportunities 5. Past experiences  Theexpertise and skills developed by a person who has worked in a particular field may lead to the opening of a related business enterprise. Forces of Competition Model  Also known as the five forces of competition.  Competition – it is the act or process of trying to get or win something. Forces of Competition Model These are the five forces competing within the industry:  Buyers  Potential new entrants  Rivalry among existing firms  Substitute products  Supplier Forces of Competition Model These are the five forces competing within the industry: 1. Buyers  are the ones that pay cash in exchange for your goods and services.  One example is the influence of the price or in the bargaining strategy.  The buyer has a strong and magnified bargaining power. Forces of Competition Model The threat of its bargaining power will be less if the following factors are noticed: 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. Forces of Competition Model These are the five forces competing within the industry: 2. Potential New Entrants  New Entrant - is defined as companies or businesses that have the ability to penetrate or enter into a particular industry. Forces of Competition Model The threat of New Entrant will be noticed 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 Forces of Competition Model These are the five forces competing within the industry: 3. Rivalry among Existing Firms  Rivalry - is a state or situation wherein business organizations are competing with each other in a particular market. Forces of Competition Model 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 Forces of Competition Model These are the five forces competing within the industry: 4. Substitute Products  Substitute - is one that serves the same purpose as another product in the market. Forces of Competition Model A substitute product can give a big threat in the industry environment if the following factors are noticed: 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 Forces of Competition Model These are the five forces competing within the industry: 5. Suppliers  Suppliers - are the one that provide something that is needed in business operations. Forces of Competition Model The threat can be noticed 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 TIME! COMPLETE ME Complete the table below by supplying it with products that you consider similar. Write the product and not the brand in their respective columns. Then describe and differentiate its characteristics and uses. No. Primary Products Substitute Product (Product Name) (Product Name) Example Butter – Expensive price used as Margarine – Lesser price used also as bread spread bread spread 1. 2. 3. 4. 5.