Module 2 Entrepreneurship Potential Market PDF

MODULE 2 ENTREPRENEURSHIP PREPARED BY: JUDITH D. MENDOZA Dear Lord and Father of all, Thank you for today. Thank you for ways in which you provide for us all. For Your protection and love we thank you. Help us to focus our hearts and minds now on what we are about to learn. Inspire u...

MODULE 2 ENTREPRENEURSHIP PREPARED BY: JUDITH D. MENDOZA Dear Lord and Father of all, Thank you for today. Thank you for ways in which you provide for us all. For Your protection and love we thank you. Help us to focus our hearts and minds now on what we are about to learn. Inspire us by Your Holy Spirit as we listen and write. Guide us by your eternal light as we discover more about the world around us. We ask all this in the name of Jesus. Amen. Lesson 1 POTENTIAL MARKET Learning Competencies: 1. RECOGNIZE A POTENTIAL MARKET The learners… 1.1 Identify the market problem to be solved or the market need to be met; and 1.2 Propose solution/s in terms of product/s and service/s that will meet the need using techniques on seeking, screening, and seizing opportunities: OBJECTIVES: At the end of the lesson, the learners are expected to 1. Learn and understand the sources of opportunities for business. 2. Determine the essentials in the entrepreneur’s opportunity seeking 3. Identify market problems and propose potential products OBJECTIVES: At the end of the lesson, the learners are expected to 4. Know the problem in which a business opportunity arises from. 5. Identify, screen and proposed solution to meet the problem 6. Select the best product or service that will meet the market’s need with a consideration of LESSON 1: Recognize a Potential Market Figure 1. The Entrepreneurial Process of Creating New Venture Identification Creation of of entrepreneur Opening of entreprene ial Entrepreneuri urial Ideas Opportunitie al venture s ESSENTIALS TO AN ENTREPRENEUR’S OPPORTUNITY SEEKING Mind frame Heart flame Gut game  ENTREPRENEURIAL MIND FRAME allows the entrepreneur to see things in a very positive and optimistic light in the midst of crisis or difficult situations. (EMOTIONAL INTELLIGENCE)  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  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 SOURCES OF OPPORTUNITIES There are many ways to discover opportunities. looking at the big picture, some have noticed the emerging trends and patterns for business opportunities. While others are trying to find out their target market. 1. CHANGES IN THE ENVIRONMENT Entrepreneurial ideas arise when changes happen in the external environment. A person with an entrepreneurial drive views these changes positively.  EXTERNAL ENVIRONMENT refers to the physical environment, societal environment, and industry environment where the business operates.  1.1 THE PHYSICAL ENVIRONMENT INCLUDES Natural Climate resources Wildfire The weather Such as Includes all , minerals, birds, reptiles, conditions forests, water, and fertile land fish, etc. that that occur in live in the wild nature and can be used for economic gain. 1.2 THE SOCIETAL ENVIRONMENT 1.3 THE INDUSTRY ENVIRONMENT a. Competitors b. Customers c. Creditors d. Employees e. Government f. Suppliers 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 3. GOVERNMENT’S THRUST, PROGRAMS, and POLICIES The priorities, projects, programs, and policies of the government are also good sources of ideas. 4. PEOPLE’S INTEREST The interest, hobbies, and preferences of people are rich sources of entrepreneurial ideas, like the increasing number of Internet Cafés at present could lead to the strong attachment of young people to computers. 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. FORCES OF COMPETITION MODEL 1. Buyers The buyers are the ones that pay cash in exchange for your goods and services. The buyer has a strong and magnified bargaining power. 2. Potential New Entrants A new entrant is defined as companies or businesses that have the ability topenetrate or enter into a particular industry. 3. Rivalry among Existing Firms Rivalry is a state or situation wherein business organizations are competing with each other in a particular market. 4. Substitute Products. Substitute is one that serves the same purpose as another product in the market. 5. Suppliers. The Suppliers are the one that provide something that is needed in business operations such as office supplies and equipment.