Entrepreneurship 1st Quarter Notes PDF

ENTREP REVIEWER 1st Quarter Notes - Entrepreneurship ★ Decisive Entrepreneurship - An entrepreneur must be firm in making...

ENTREP REVIEWER 1st Quarter Notes - Entrepreneurship ★ Decisive Entrepreneurship - An entrepreneur must be firm in making decisions - The word “entrepreneur” was derived from the ★ Communicator French verb ENTREPRENDRE, which means “to - An entrepreneur must have a convincing undertake”. power - This is pinpointing to those who “undertake” the risk of enterprise. The enterprise is created by an entrepreneur and the process is called 5 Types of Entrepreneurs “Entrepreneurship”. ★ Innovative Entrepreneur An entrepreneurial mindset is resilient, resourceful, - Innovators are entrepreneurs who come up and solutions- oriented — even when the conditions with new ideas and turn them into successful say otherwise. People with these mindsets are businesses. They often change the way lifelong knowledge- seekers who are curious and people think and act. These entrepreneurs are creative, and they are critical thinkers. usually very passionate and driven by their unique business idea. They also discover new ways to market their products by using Common Competencies In Entrepreneurship strategies that make their company stand out. In some cases, they not only stand out from the crowd but actually create a new ★ Leadership market. - An entrepreneur must have the charisma to ★ Imitating Entrepreneur be obeyed by his employees - Imitative entrepreneurship means starting a ★ Opportunity Seeker business by replicating or adjusting an - An entrepreneur must have the ability to be existing concept or model. Instead of the first to see business chances investing in research and development, ★ Innovative imitative entrepreneurs replicate or modify - The entrepreneur must have big ideas and products with minor adjustments for different they do not stop improving and thinking of markets. It's important for them to new worthwhile ideas for their business differentiate themselves from existing ★ Proactive businesses to avoid being labeled as - Controlling a situation by making things to copycats. happen or by preparing for possible future ★ Fabian Entrepreneur problems - A Fabian Entrepreneur is cautious and ★ Risk Taker skeptical about change and innovation, - They have the courage to pursue their favoring stability and gradual growth. They business ideas. resist sudden shifts in their business model and market dynamics unless necessary,  prioritizing long-term sustainability over Target Market short-term gains and evaluating new opportunities carefully. - Group of potential customers who a business ★ Drone Entrepreneur aims to reach with its products or services. - A Drone Entrepreneur adheres to traditional This group may share common methods and resists the adoption of new characteristics such as age, gender, income technologies. They prefer the comfort of level, education, interests, or geographic familiar practices over the uncertainty of location that make them more likely to be innovation. These individuals stick to interested in and purchase from a business. conventional methods and traditional business skills, prioritizing operational consistency and customer loyalty. Market Segmentation ★ Social Entrepreneur - A social entrepreneur is interested in starting - Can help you to target just the people most a business for the greater social good and likely to become satisfied customers of your not just the pursuit of profits. Social company or enthusiastic consumers of your entrepreneurs may seek to produce content. environmentally-friendly products, serve an underserved community, or focus on Types: philanthropic activities. ★ Demographic - Defining your customers from observable characteristics Types of Social Entrepreneur - Age, sex, gender, income, education level, race, marital status, family size, occupation, Community Social Entrepreneur nationality region - Prioritizes the needs of a small geographical ★ Geographic region - Based on their location, population density, Non-Profit Social Entrepreneur climate, and suburban, rural, urban - Strives to spend as much money as it can ★ Psychographic towards its mission - Mental and emotional characteristics, how Global Social Entrepreneur customers think and act towards the product - Solves overarching social concepts such as ★ Behavioral poverty, depression, or lack of living - Understanding how your customers act and conditions in more than one region around behave towards the product, online shopping the globe habits, how often they use a certain product, Transformational Social Entrepreneur are they loyal or often switch brands - Looks to scale an operation from a single program to benefit various areas Other Methods of Market Segmentation: 2. Identifying of Entrepreneurial Opportunities ★ Value Segmentation - Target Market (identifying segments) - It is when a company or business finds their - External Factors customers based on their projected value. 3. Opening of entrepreneurial ventures ★ Firmographic Segmentation - Organizing businesses based on shared Sources of Opportunities characteristics such as industry, company size, location, etc. - Can be attained by assessing and looking at ★ Generational Segmentation changes at the environment. - Dividing your target customers into separate groups based on their age and the Changes in the environment generation they belong to. ★ External Environment ★ Lifestage Segmentation - physical environment, societal environment, - Group your target customers based on what and industry environment where the business stage they are in life. operates. ★ Seasonal Segmentation ★ Technological Discovery and Advancement - Focuses on the purchasing habits of people - Opportunities in any new discovery or during certain periods of the year because of the use of latest technology ★ Government’s thrust, programs, and Market Needs policies - Priorities, projects, programs, and policies of - Refer to the functional needs, desires, and the government goals of a target audience. A company may ★ People’s Interest identify an area of the market with unmet - Interest, hobbies, and preferences of people needs and create a product or service that ★ Past Experiences addresses them. - Expertise and skills developed by a person - If that audience has a large amount of need, who has worked in a particular field may lead the company may receive a significant profit. to the opening of related business Some details that entrepreneurs look for to enterprises. determine market needs may include: Age of buyers Definition of Terms Size of the market Customer’s income ★ Sources of Opportunity State of the current market - Can be attained by assessing and looking at Competition changes in the environment; technological How to distribute the product discovery and advancement; government’s thrust, programs, and policies; people’s The Entrepreneurial Process interest, and past experiences. ★ External Environment 1. Creation of Entrepreneurial Ideas - Refers to the physical environment, societal - May depend on an Entrepreneur’s mindset, environment, and industry where the business skills + financial and physical ability operates. It refers to external factors  impacting a business's operations, success, ★ Political and Legal Factors and decision-making. It includes various - Government policies, regulations, taxation, elements beyond the entrepreneur's control. trade policies, and legal frameworks can ★ Government impact business operations. Entrepreneurs - Refers to the local government (municipality, must navigate them to ensure compliance city, or provincial) or the national government and mitigate risks. and its branches. ★ Competition Defining Market Needs - It is the act or process of trying to get or win something. ★ Be Introspective ★ Environmental Factors - This may reveal gaps in the market for - Entrepreneurs must prioritize eco-friendly various products or for services that need Environmental Factors. These practices improvement. Introspection may be a consider environmental regulations, valuable resource for helping you determine sustainable products, and their operational what market needs exist for your business. impact on the Environment due to the ★ Conduct Interviews increasing emphasis on climate change - One strategy for learning more about market awareness. needs involves conducting interviews with ★ Competitive Environment potential customers or members of the target - Includes rivals, market saturation, barriers to audience. These interviews are a qualitative entry, and competitive advantage. Analyzing method for learning what the actual them helps entrepreneurs differentiate and customers think about your particular gain market share. product, service or marketing strategy. ★ Market Trends and Dynamics - You might ask these customers about how - Can create opportunities or threats for much they would pay for a similar product, entrepreneurs. Staying attuned enables them how likely they are to consistently buy your to identify new niches and adapt their product or what changes they'd make to the strategies accordingly. service if they had the opportunity. ★ Economic Factors - Their answers may guide decisions about - Such as the state of the economy impacting improving the product or altering the consumer spending, purchasing power, and marketing strategy. demand for goods and services. ★ Analyze the Competitors ★ Social and Cultural Factors - If you have a few different competitors in your - Such as demographics, societal trends, market, consider analyzing their strategies for cultural norms, values, consumer preferences, marketing. You may notice that certain and lifestyles, are crucial for entrepreneurs to strategies had a more positive impact on the understand to create products and services competitor's target audience than others. that resonate with their target audience. - You can use information from their marketing ★ Technological Factors platforms to better understand how they - Affect how businesses operate, innovate, and approach the target audience. Then, consider compete. Entrepreneurs must stay updated implementing similar strategies to compete to gain a competitive edge. with them in the market. ★ Consider Cultural Components ★ Use a Quantitative Approach - Another aspect of defining market needs - A quantitative approach for defining market relates to particular cultural components. For needs may vary based on the specifics of example, imagine your company wants to your company, target audience, or product. market a product internationally. It's Some methods for evaluating market needs important to conduct research about the through quantitative data include: relevant audience in each country you hope Survey Data: One method of gathering to export your product to. data from customers is by sending out - This may inform your marketing strategy in a survey. You can ask a variety of each location. It can provide insight into the questions about customer different markets interested in the product preferences to determine the types of based on the location, language and market needs that exist within your corresponding culture. It's common for current target audience. cultures to have a variety of needs, so it's Correlational Data: This research imperative to analyze these components. focuses on how two different variables ★ Narrow Your Niche impact one another. For example, you - Some products may appeal to a wide may research how the method of audience. However, when you narrow your marketing influences the number of niche or find ways to appeal to a smaller engagements your website receives. audience, you can become more specific Comparative Data: This research with your marketing strategy. focuses on the comparison between - By narrowing your audience, you may two different variables. For example, increase the success of particular marketing you might compare how effective your campaigns. Additionally, a small portion of marketing strategy is when you your target audience may have different appeal to a large audience versus a market needs than others, which may require smaller, niche audience. you to design specific promotions for that niche group. Entrepreneurial Ventures ★ Determine Emotional Needs - Depending on your particular product or - Starting a business that aims not just to profit service, you might decide to focus on the but also to be an agent of change in the emotional needs of your target audience. world has become more common in this day Emotional needs are one element of market and age. needs that may not apply widely to all - With the economic decline brought upon by products on the market. factors like the CLIMATE CHANGE and the - However, if you decide to appeal to your COVID-19 outbreak, people are now, more audience through emotion, it's important than ever, on the move to make a difference to understand what approach to take. For through SOCIAL ENTREPRENEURSHIP. example, if your target audience focuses on families, you may appeal to the emotions related to positive family relations, such as love or feelings of comfort.  ★ Social Entrepreneurship The Steps to Create a Business Plan - Focus on providing solutions to environmental and societal problems through businesses. 1. Conduct a SWOT Analysis - Business owners aim to help marginalized - SWOT (Strengths, Weaknesses, Opportunities, sectors. and Threats) - Can be non-profit, for-profit, or hybrid models - Helps entrepreneurs make informed decisions - Main goal is to be an agent of change by and develop effective strategies by funding programs that support a good cause. evaluating internal and external factors. - Are after philanthropic change; and profit is just secondary - Play an important role in having innovative SWOT Desc. Identify.. approaches to social issues, such as poverty, Strengths - Things inside a - Identify what education, and healthcare. business that make the business it better than others. does well or what Examples: resources and ★ Bambike capabilities it possesses. - Enterprise located in Intramuros that offers bikes made from bamboo Weaknesses - Internal factors - Identify areas that place a where their ★ Theo & Philo business business could - Philippines’ first bean to bar chocolate maker at a disadvantage be of chocolates made from Philippines cacao or hinder its improved. success. beans - Areas for ★ Bayani Brew improvement may - Bayani Brew offers healthy flavored teas from include limited financial freshly harvested leaves and root crops by resources, lack of our local farmers experience, outdated technology, Business Plan inefficient processes, or poor customer service. - Outlines a company’s core activities and Opportunities - Based on your - Identify goals current strengths market trends, - Startup companies create business plans to and weaknesses, as job openings, start their operations and attract investors well as any external and external initiatives that can factors to - Mature companies use business plans to stay enhance a achieve ahead of their competitors and attract more competitive personal goals. customers position. - Examples of this - A good business plan should include an include identifying executive summary, sections on products niche market and services, marketing strategy, financial demand, expanding into new planning, and a budget geographical areas, and collaborating with competitors.  - Can also be - A strategic roadmap that aligns with your derived from threats business goals and target audience. It should include online and offline marketing Threats - External factors - Identify that could harm or potential strategies, tactics, and budget. disrupt a business's market Provides a clear direction. operations. challenges or Helps prioritize marketing obstacles their business may opportunities. face. Ensures effective resource allocation. Measures success. 2. Defining Your Business Objectives Examples of Marketing Strategies and Tactics: - Specific, measurable, achievable, relevant, Content marketing and time-bound (SMART) goals that align Social media marketing with your business's mission and vision. Search engine optimization (SEO) - May vary based on your industry, target Email marketing audience, and resources, such as increasing Influencer marketing sales revenue, expanding into new markets, improving customer satisfaction, and Marketing Mix reducing costs. 3. Conducting Market Research - A combination of factors that can be - It involves gathering information about your controlled by a company to influence target audience, competitors, and industry consumers to purchase its products. trends to make informed decisions about your offerings, pricing, and marketing. THE 7P’S: ★ Product: It goes without saying that the 4. Identifying Your Target Audience service or product you’re selling should be at - Understanding your target audience is crucial the center of every element of the marketing for business success. It helps create tailored mix. products and services and develop effective ★ Price: The strategy behind the pricing of your marketing campaigns. product needs to be based on what your Improve customer engagement. customers are prepared to pay, costs such as Develop effective marketing retail mark-up and manufacturing, as well as strategies. other considerations. Improve product development. ★ Promotion: Successful marketing strategies Identify market opportunities. include all the promotional activities across the marketing mix, including advertising, 5. Developing a Market Plan direct marketing, and in-store promotional - Outlines a company's strategy, including activities. target market analysis, product description, ★ Place: Where and how your product is competition assessment, and plans to displayed and sold should be directly achieve marketing objectives. informed by your customers. ★ People: Excellent customer service not only converts to sales, but can increase your  customer base by referrals. Acquiring these members of the community. They do this by referrals by people who love your brand can creating job opportunities, putting up grocery also be a great example of how your stores, and offering financial solutions marketing efforts can support your sales through low-interest loans. Unlike process. transformational social entrepreneurs, ★ Process: The process of delivering your community social entrepreneurs focus on product to the consumer should be designed helping groups in small geographical for maximum efficiency and reliability, but locations. may also include features that are in line with - Examples: GK Enchanted Farm, Kariton your brand, such as being environmentally or Klasrum, Bayani Brew, Theo & Philo sustainably focused. ★ Global Social Entrepreneur ★ Physical Evidence: Physical evidence - Another type of social entrepreneurship deals incorporates aspects that proves your brand with global issues and helps solve them. exists and that a purchase took place. They’re part of companies that focus on supporting social missions as part of their core functions. They aim to change the Types of Social Entrepreneur system and make the world more livable. - Examples: Kariton Klasrum, Bambike ★ Non-Profit Social Entrepreneur - A non-profit social entrepreneur is a 6. Creating a Financial Plan tax-exempt group or individual that invests - Outlines a company's financial goals, funds in a chosen charity or developmental objectives, and strategies program. Non-profit social entrepreneurs - Describes the company’s financial situation strive to maintain and use their money to - Includes an analysis of revenue and expenses sustain their advocacy. - Projects future financial performance - Example: Kariton Klasrum - Helps businesses identify potential risks and ★ Transformational Social Entrepreneur opportunities - Entrepreneurs who take the path of - Assists in allocating resources effectively transformational social entrepreneurship - Measures the success of financial efforts establish businesses to meet the needs of - Provides a roadmap for the finance team citizens on a national level. They work on the - Ensures alignment with the company’s country’s issues that are usually not financial goals and objectives addressed by the government or other sectors. As they thrive on helping people, they ★ Income Statement sometimes partner with government - The income statement, also known as the agencies to find the best ways to implement profit (credit) and loss (debit) account, shows programs to solve the nation’s problems. a company's revenue and expenses for a - Examples: GK Enchanted Farm, Kariton specific period. Klasrum - It illustrates how these revenues contribute to ★ Community Social Entrepreneur net income or net profit - This type of social entrepreneur heads Debit - Money Out organizations that work closely with locals. Credit - Money In They operate as a cooperative that assists ★ Balance Sheet ★ Funding Request - Summarizes businesses run by sole, - Detailed financial plan, including startup partnerships, or corporations financial costs, funding requirements, and financial balances. projections. ★ Cash Flow Statement ★ Social Impact Plan - Also known as a statement of cash flows, is a - An explanation of how the business will create financial statement. a positive social impact and metrics for - It shows how changes in balance sheet measuring success. accounts and income affect cash and cash ★ Appendix equivalents. - Any additional information such as resumes, - The analysis is broken down into operating, permits, or other relevant documents. investing, and financing activities. ★ Financial Projections - Financial statements that predict future revenues and expenses, including money coming in and going out, overall income, and balance sheet. Social Enterprise Business Plan Outline ★ Executive Summary - A brief overview of the business idea and its social impact. ★ Business Description - Detailed information about the social issue being addressed and the proposed solution. ★ Market Analysis - Analysis of the target market, including demographics, needs, and potential challenges. ★ Organization and Management - Structure of the business, including the team and their roles. ★ Products or Services - Description of the products or services offered by the enterprise. ★ Marketing and Sales Strategy - Strategies for reaching the target market and generating revenue.