LESSON_1.PDF

Lesson 1 Part I: Enterprise Development in the Philippines Learning Objectives: ▪ Explain the principle of enterprise development, MSMEs and Entrepreneurship. ▪ Describe the entrepreneurial process in developing business plan proposals. ▪ Describe the roles of entrepreneurship in community de...

Lesson 1 Part I: Enterprise Development in the Philippines Learning Objectives: ▪ Explain the principle of enterprise development, MSMEs and Entrepreneurship. ▪ Describe the entrepreneurial process in developing business plan proposals. ▪ Describe the roles of entrepreneurship in community development. Introduction This lesson is focused on the principles of enterprise development, including the complex processes involved in creating business plan proposals. It provides a clear definition and discussion on the given principles. Topic Outline I. Enterprise Development II. MSMEs in the Philippines III. Entrepreneurship and Entrepreneurial Mindset IV. Aspects of the Entrepreneurial Process V. Developing/Creating a Business Plan Enterprise Development ▪ The concept of enterprise development lies in investing knowledge, and time, attracting investment, building business linkages, employing more people for an enterprise to compete in the global economy. ▪ It encompasses the process of improving the company’s image and increasing the capital by bringing more value to the customers. The main intention of the enterprise development is leading tom positive societal change through stimulating economic activity. Enterprise Development (cont’d) ▪ Such an approach is especially beneficial for small and medium-sized suppliers as it enables them to improve their sustainability through gaining experience in transnational cooperation, the ability to get larger deals and is relatively inexpensive. https://inveritasoft.com/blog/enterprise-development-the-concept-and-functions-in-a-nutshell  MSMEs in the Philippines The magna carta for small, medium, enterprises defines MSMEs using asset size as follows: MICRO Up to Php3,000,000.00 SMALL 3,000.001.00 – 15,000,000.00 MEDIUM 15,000,001.00 – 100,000,000.00 dict.gov.ph Entrepreneurship & Entrepreneurial Mindset Nature and Development of Entrepreneurship Entrepreneur ▪ An individual who takes initiative to bundle resources in innovative ways and is willing to bear the risk and/or uncertainty to act. Being an entrepreneur today ▪ Involves creation process ▪ Requires devotion of time and effort ▪ Involves rewards of being an entrepreneur ▪ Requires assumption of necessary risk Entrepreneurship & Entrepreneurial Mindset (cont’d) Nature and Development of Entrepreneurship Entrepreneurial action ▪ Behavior in response to a judgmental decision under uncertainty about a possible opportunity for profit. Aspects of the Entrepreneurial Process Identify and Evaluate the Opportunity ▪ Opportunity Assessment ▪ Creation and Length of Opportunity ▪ Real and Perceived Value of Opportunity ▪ Risk and Returns of Opportunity ▪ Opportunity versus Personal Skills and Growth ▪ Competitive Environment Aspects of the Entrepreneurial Process (cont’d) Opportunity Assessment 1. Changes in the Environment ▪ These are external environment such as physical (climate and natural resources), societal (political, economic, sociocultural, and technological), and industry (government, competitors, suppliers, customers, creditors, and employees). 2. Technological Discovery and Advancement ▪ Recent development and innovation in the technology that provides meaningful contribution in the society in making lives better and easier. Entrepreneurship in the Philippine Setting, by Nick L. Aduana Aspects of the Entrepreneurial Process (cont’d) Opportunity Assessment 3. Government’s Thrust, Programs, and Policies ▪ Priorities, projects, and other government interventions that can either be a threat or opportunity for the entrepreneur. 4. People’s Interest ▪ Changes in the preferences, hobbies, and interests of the society mainly due to change age structure of the population. Entrepreneurship in the Philippine Setting, by Nick L. Aduana Aspects of the Entrepreneurial Process (cont’d) Opportunity Assessment 5. 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. Entrepreneurship in the Philippine Setting, by Nick L. Aduana Aspects of the Entrepreneurial Process (cont’d) Creation and Length of Opportunity Entrepreneurial Creation of Identification of Character Traits, Entrepreneurial Entrepreneurial Skills, and Ideas Opportunities Competencies Opening of Figure 1: Entrepreneurial Entrepreneurial Character Traits, Skills, and Competencies Venture Influencing the Opening of Business Entrepreneurship in the Philippine Setting, by Nick L. Aduana Aspects of the Entrepreneurial Process (cont’d) Creation and Length of Opportunity ▪ Changes in the physical environment have a direct impact on the societal environment and the effect can be felt later in the industry environment. According to Wheelen and Hunger (2010), the changes in the physical environment have an impact on the societal environment first in terms of resource availability costs, and later, on the industry environment in terms of growth or decline of particular industries. ▪ However, it is perceived that all the changes that happen in the different layers of the environment surrounding the enterprise directly affect the business. Entrepreneurship in the Philippine Setting, by Nick L. Aduana Develop a Business Plan I. Title page II. Table of Contents III. Executive Summary IV. Major Sections A. Description of Business B. Marketing Plan C. Product and Operations Plan D. Organizational Plan E. Financial Plan F. Summary Develop a Business Plan (cont’d) Marketing Plan A. Product(s) to Sell ▪ Describe your proposed products(s) and explain in details its key features and benefits the target market will gain from purchasing your product. Develop a Business Plan (cont’d) Marketing Plan A. Product(s) to Sell Sample Background and Description Shornack & Co. will have two (2) offset printing machines with specifications of 36” x 48” and 30” x 40.” These machines will be used in the production of the following: 1. Industrial/packaging/label materials such as wrappers and carton packaging products, boxes and containers of manufactured goods; 2. Promotional printed materials such as advertising brochures, leaflets and fliers, posters, and tarpaulins. As the demand for the company’s offset printing job increases together with the introduction of new technology for the printing industry, and with increase in competition, Shornack & Co. will continue to add new lines of products and services that will cater the changing needs of the company’s current and future customer. Develop a Business Plan (cont’d) Marketing Plan A. Product(s) to Sell Products/Services offered by Shornack & Co. Develop a Business Plan (cont’d) Marketing Plan B. Target Market 1. Area Coverage ▪ The area coverage/location answers the question “Where will you put up your proposed business? ▪ Explain why you chose to put up your business in such location. Develop a Business Plan (cont’d) Marketing Plan B. Target Market 2. Consumer/Customer ▪ Describe your prospective target market (who), needs and wants definition, buying behavior and decision making process, and preferences. ▪ Market segmentation, Market Targeting, and Market Positioning should be explained here thoroughly. Develop a Business Plan (cont’d) Marketing Plan B. Target Market Develop a Business Plan (cont’d) Marketing Plan B. Target Market Sample Description of the Target Market First, you need to identify them (Market Segmentation) Business Firms and Establishments situated in Lala Land ▪ Advertising Firms ▪ Amusement Places ▪ Banks, Financial/Lending Investors, Foreign Exchanges, and Pawnshops ▪ Car Dealers ▪ Restaurants and Food Establishments ▪ Retailer/sari-sari stores, Shopping Centers/Market and General Merchandise Develop a Business Plan (cont’d) Marketing Plan B. Target Market Sample Description of the Target Market Second, you need to select which market to enter (Market Targeting) ▪ Business firms within 1st district of Lala Land (e.g. hotels, advertising firms, merchandise stores and resellers, internet cafes, pawnshops) engaging in businesses that use marketing and promotional materials. Third, you need to come up with a strategy that will position your business to your selected market. (Market Positioning) “The Express Print Specialist” Develop a Business Plan (cont’d) Marketing Plan C. Conduct a Survey / Research 1. Presentation of the Findings ▪ Present all the results of the survey questionnaire in a tabulated format with an appropriate heading or title for each table and provide a brief explanation for each findings below the table. 2. Interpretation/Analysis and Recommendation of the Survey Results ▪ Summarize all the results of the survey questionnaire and provide a conclusion and recommendation at the end of the analysis. Develop a Business Plan (cont’d) Marketing Plan D. Demand and Supply Analysis 1. Demand ▪ Generate the demand and explain how you can come up with the figures based on your research in terms of the location and population of your target market. (This should include computation analysis on the figures generated through the research conducted by the group) Develop a Business Plan (cont’d) Marketing Plan D. Demand and Supply Analysis 2. Supply ▪ Explain how you were able to extract the supply based on the total number of business firms engaged in the same industry. (This should include computation analysis on the figures generated through the research conducted by the group) Develop a Business Plan (cont’d) Marketing Plan D. Demand and Supply Analysis 3. Demand – Supply Gap Analysis ▪ Provide the figures (numbers and percentage through computation) generated by the gap being presented between the demand and supply. Develop a Business Plan (cont’d) Marketing Plan D. Demand and Supply Analysis 4. Present Suppliers and Competition 4.1 Suppliers ▪Kindly provide the total number of your suppliers and the raw materials that you will need from them. ▪Explain the mode of payment in purchasing raw materials from them. 4.2 Competition ▪Provide the necessary information about your competitors (Please include the total number of competitors and describe the background of their product(s) and their market). Develop a Business Plan (cont’d) Marketing Plan E. Industry Analysis (Porter’s Five Forces Model) ▪ The Forces of Competition Model, otherwise known as the “Five Forces of Competition,” was popularized by Michael Porter, a prominent figure in competitive strategy formulation. The industry environment is a competitive environment. The business, therefore, cannot do nothing else but to compete. The Five Forces competing within the industry are as follows: 1.Potential New Entrants 2.Buyers 3.Substitute Products 4.Supplier 5.Rivalry among existing firms https://www.investopedia.com/terms/p/porter.asp Develop a Business Plan (cont’d) Marketing Plan F. Projected Sales in terms of the following: ▪ Per Month (in terms of volume per unit of your products) ▪ In Volume and in Pesos (monthly sales in thousands) Develop a Business Plan (cont’d) Marketing Plan G. Marketing Programs / Strategies ▪ This will answer the question “How will you market your product to your target market?” and this should include advertising and promoting your product to your customers. Develop a Business Plan (cont’d) Marketing Plan H. Marketing and Selling Expenses ▪ Provide the schedule of expenses in marketing/selling your proposed product. ▪ Identify the cost of selling merchandise, including preparing the merchandise for sale, such as picking, packaging, warehousing and order charges Develop a Business Plan (cont’d) Organization Plan A. Legal Form of Business ▪ Identify the form of the entrepreneurial venture if it is sole proprietorship, partnership, and corporation (for simplicity of organization, kindly use either sole proprietorship or partnership form of business Develop a Business Plan (cont’d) Organization Plan B. Organizational Structure ▪ Kindly indicate the structure of your entrepreneurial venture (Who will manage the business? Who are the officers? Who are the workers/laborers for the proposed business?) Develop a Business Plan (cont’d) Organization Plan C. Qualification of Officers ▪ Provide the basic qualifications of the officers who will run the proposed business Develop a Business Plan (cont’d) Organization Plan D. Office Equipment ▪ Provide the list/breakdown of the office equipment (with specifications/descriptions) such as fax machine, photocopier, printer, etc. that will be used inside the office. Develop a Business Plan (cont’d) Organization Plan E. Gantt Chart of Activities ▪ Provide a complete and detailed activities that describes the start of business conceptualization up to the implementation of the business (including registration and securing of business permit) Develop a Business Plan (cont’d) Organization Plan F. Administrative Expenses ▪ Provide the total breakdown of expenses for the following: ▪Office Equipment ▪Office Supplies (notebooks, bond papers, staple wire, etc.) ▪Furniture and Fixtures ▪Total Expenses including Pre-operating Expenses (securing of business permit and licenses) Thank You! For your Attention  References: ▪ inveristasoft/blog/enterprisedevelopment-the-concept and functions in a nutshell ▪ https://dict.gov.ph/ ▪ https://www.investopedia.com/terms/p/porter.asp ▪ Entrepreneurship in the Philippine Setting, by Nick L. Aduana Note: All images used are sourced from the internet and are intended solely for classroom discussion purposes.