Entrepreneurship 1st Quarter Past Paper 2024-2025 PDF

ENTREP 1ST QUARTER | 1ST SEMESTER | 2024-2025 open. (To evaluate the size of the TOPIC OUTLINE: Lesson 1: Introduction to firm, we base it on asset or size of Entrepreneurship employe...

ENTREP 1ST QUARTER | 1ST SEMESTER | 2024-2025 open. (To evaluate the size of the TOPIC OUTLINE: Lesson 1: Introduction to firm, we base it on asset or size of Entrepreneurship employees) Lesson 2: The Business Plan Lesson 3: Recognizing the Potential - Wholesale and retail trade was the Market sector most adversely affected by the ECQ - Half of firms temporarily closed LESSON 1: INTRODUCTION TO were based in the NCR ENTREPRENEURSHIP ENTREPRENEURSHIP Business in the Midst of the Pandemic - Refers to all the processes and - In collaboration with the Philippine activities involved in establishing, Department of Finance, the Asian nurturing, and sustaining a Development Bank (ADB) business enterprise. It is an conducted ab enterprise survey economic activity that involves during 28 April - 15 May 2020 setting up, operating, and taking - One third of enterprises already had the financial risks of a business. no cash and savings to cover (Batisan, 2016) operations; another one third - Involves seeking opportunities for a reported running out of cash and market, establishing and operating funds within 1-3 months. a business out of the opportunity, - The most significant financial and assessing its risks and rewards problem for enterprises was paying through close monitoring of the staff wages and social security operations. charges - Functions of a business: - Microenterprises faced the most a) Marketing: Let out the news of the serious shortage of working capital, business to the people. while large firms had sufficient b) Finance: Handles the money and liquidity to survive for over 6 savings. months. c) Operations: Handles the products, coordinates with the suppliers, a) Variable cost: you can stop paying keeps inventory closed. anytime. Example: tuition fee d) Human resources: handles people b) Fixed cost: Even when being used management and how to or not, you are obliged to pay every coordinate with partners. time. Example: rent, wifi ENTREPRENEUR Findings: - A person who sets up a business, - Two thirds of firms surveyed taking on financial risks in the hope immediately suspended business of profit. (Oxford Dictionary 2017) activity - A person who attempts to create a - those still operating cut operations new product, service or solution by half while accepting responsibility for - The smaller the firm size, the lower the results. (Forbes 2012) the share of businesses remaining ENTREP 1ST QUARTER | 1ST SEMESTER | 2024-2025 - They create innovations or solutions COMPETITIVE ADVANTAGES NEEDED IN to a problem. ENTREPRENEURSHIP - From the french term Customer Focused “entreprendre” which means “to - Serving customers directly and undertake” effectively - They create value by introducing - Produce products and services new products or services or finding desired by customers better ways of making them. - Ex: starbucks asking the names of customers ENTREPRENEURIAL PROCESS - Also known as the Entrepreneurial Integrity and Responsibility Discipline - A solid reputation for honesty and 1) Discovery dependability to good customer - Recognition of Ideas service and excellent product 2) Development of Concept quality - What is your value proposition (what makes your business Quality Assurance different from others?) - Should not accepts anything less 3) Organizing Resources than the highest-quality - Who are liable for marketing and performance production 4) Implementation Innovation - The actual selling - Taking inventions or innovations 5) Returns developed elsewhere and put them - The money earned to expand the into use, which requires marketing, firm sales, and organization - Ex: Using technology to innovate ENTREPRENEURIAL DECISION MAKING Critical Thinking Niche Market - The systematic and rational way of - Targeting a specific group of providing an answer to a question. customers who have an identifiable - Asks the question “why?” but very narrow range of product or service interests and compromise. Creative Thinking - One strategy for business - Thought process that brings about executives to avoid excessive the discovery of new ideas - competition, develop brand dreams, insights, or observations recognition, and Instant - Asks the question “how?” Differentiation is to choose a specialized market. Strategic Thinking - Example: Gaming industry is not a - Thought process that assesses a specific niche because it can still be current situation - Porter’s, Trend narrowed down into terms of Analysis. Focuses on forecasting. devices - How do we support our data? ENTREP 1ST QUARTER | 1ST SEMESTER | 2024-2025 FIELD OF EXPERTISE or she may have to deal with Social Entrepreneurship internal politics and disputes that - Social Entrepreneur, someone who an entrepreneur would not have to. takes advantage of the country’s social problems and turns them Extrapreneur into profitable institutions with the - They offer their innovative solutions intention of helping the to problems with others so that disadvantaged community rather everyone benefits. than making a profit. They create a - An entrepreneur who hops from solution to a social problem. one company to another to act as - Their profits are principally used to innovation champion, providing fund social programs. creative and efficient solutions. ○ Charity: non-proft, not - This fits perfectly in the modern generating income or revenue. freelancing and “side hustle” ○ For-Proft COmpany: CSR and dynamic economy when millenials Social Impact are considered as no longer want to be bound to one “add-on” to the core business firm or work under the confines of agenda. the traditional employer/employee - These 2 are a combination of relationship. business and social goals. Profits are reinvested to the community or EMPLOYMENT VS ENTREPRENEURSHIP company. - Example: Human nature, Bambike, Employees - Must follow strict Rags2Riches schedules and work orders, they get financial security Technopreneurship - Advantages: Leave - An entrepreneur who puts benefits, guaranteed technology at the core of his or her income, fixed working business model. hours, less - Ex: Cropital responsibility ○ Cropital - is a platform that - Disadvantages: gives farmers access to dependency, limited income, limited scalable and sustainable development scope, financing. Growing money job security through the site by helping farmers at the same time Entrepreneurs - Have more freedom, but they take on more Intrapreneur risks. - Advantages: Growth - Highly trained and specialized, in career, whereas an entrepreneur may have independence, flexible broader views and knowledge of working hours, ability the industry in which they work to earn, change & - They’re place is within the exploration. boundaries of a company, where he - Disadvantages: ENTREP 1ST QUARTER | 1ST SEMESTER | 2024-2025 PART 1: INTRODUCTION Stress, investments, long working hours, - Must be concise but powerful; it financial instability, should get the reader more risks. interested in the topic a) The business concept Employees are more likely to secure - How will the business get revenue? their positions and obtain financial What will be the cost? What will be safety the major investment? How do we Entrepreneurs can't rely on anyone else finance it? for their professional validation and financial state. They don’t even get b) The business goals regular paychecks and must take on - Future and long term prospects of business risks that can lead to financial the enterprise losses. i) Vision: the point of direction where your company wishes LESSON 2: THE BUSINESS PLAN to go ii) Mission: The basic purpose of setting up the enterprise BUSINESS PLAN iii) Objectives: Measurable end - Why should every start-up begging result translation of the with a Business plan? mission and vision To Resonate iv) Performance Indicator (Key - A way for other managers (decision Result Areas): qualitative makers) to understand the core manifestations that the strategies and programs of the objectives are being enterprise. achieved. Later on rendered To Impress into quantitative - Business plans could convey to investors and cautious financiers PART 2: EXECUTIVE SUMMARY the soundness and potential of a - A synthesis of the entire plan and business contains the MAJOR To Guide argumentation on why the - Every entrepreneur must need a business will work and succeed. guide. A business plan would plot - Make the reader more interested the navigational course for them. about the whole content of the CONTENTS OF A BUSINESS PLAN business plan. Careful not to give everything on the executive COVER PAGE summary. - This part is important to guide the - Should be written last. It must reading audience on the structure introduce and contain highlights of contents and for their reference about: as they browse ○ The good qualities of the - Should include the title page, table business proponents and of contents, list of tables, list of partners. figures, and list of appendices ENTREP 1ST QUARTER | 1ST SEMESTER | 2024-2025 ○ The enterprise organization In essence, your target market is and its capabilities. It must usually your audience too except if justify the enterprise the product is meant to be strategy and delivery purchase by one for another person systems - Ex: Mother buy at Gingersnaps ○ It must contain a section for environmental and CREATING A CONSUMER PERSONA regulatory compliance ○ Technology providers, - Creating a consumer persona suppliers and major service would help an entrepreneur and providers with their the readers of the business plan expertise and experience. paint a picture of who the target audience/market is and create granular strategies throughout PART 3: BUSINESS PROPONENTS the whole business plan - Details on people who are working - Describe their demographics, on the business plan and their socio-economic class, lifestage, specific roles to play for the behaviors, interest and affinities, business success. and geographics a) Organizers Where do we get these data that - Capabilities, contributions would describe our target market? b) Stakeholders - Through a Market Research - Resource mobilizers and financial backers, technology providers and Example methods for conducting a applicator, Governance and top market research Surveys management, Operating and - Research method used for support team collecting data from a predefined group of respondents to gain PART 4: TARGET CUSTOMER information and insights into - The entrepreneur should exert all various topics of interest. efforts to know the market that Observation he/she wants to serve. And this will - A technique which involves observing consumers or another be his or her target customer. This target audience in their natural can be possible through environment like watching how conducting a good market shoppers stop outside a fashion research. retailer. - Describe your target market and Focus Group discussion establish a main value proposition. - Involves gathering people from a) Target market similar backgrounds and experiences together to discuss a - Actual individuals who consume or specific topic of interest. Form of avail a certain product or service qualitative research where - Ex: Gingersnaps are for toddlers questions are asked about their b) Target audience perceptions, attitudes, beliefs, - Individuals you communicate to opinion or ideas. and persuade to buy the products. ENTREP 1ST QUARTER | 1ST SEMESTER | 2024-2025 PART 5: THE MARKET b) Enterprise Delivery System (EDS) - Explains the current state of the - Enables the company t implement competitive business environment its strategies where the business would fall as a category THE OPERATIONS MANAGEMENT - It also talks about opportunities and threats bashed with strategies Input that the proponent will do. - Creating the product a) Market Justification - Resources mobilized (money, - Demand and supply men, machines, materials, methods, and management) - Estimate the total market supply and demand. It must also Throughput determine the major critical factor - Transformation process where input are converted to output influencing it. b) Industry dynamics Output - The product or service rendered Outcome - Through the aid of Marketing efforts (7P’s) the enterprise achieves desired outcomes such as: customer satisfaction, profits c) Macro-environmental Factors generated, sales volume attained, - Using the PESTEL Analysis high people productivity. d) Estimated Market Share THE MARKETING MANAGEMENT PART 6: PRODUCTS & SERVICES - Description and quality of the products a) Description - Features and attributes that would most appeal customers b) Evolution c) Justifications - Proof that the products and services would be accepted and carried by the distribution channels. PART 7: ENTERPRISE STRATEGY PART 8: FINANCIAL AND EDS MANAGEMENT FUNCTION a) Enterprise Strategy - This is where the financial forecast, - Mapping the competitive expected returns, risks, and landscape by situating the contingencies are stated. enterprise and its competitors as to - Ex: Income statement, cashflow, their strategies and chosen balance sheet, breakeven, ROI, positionings ROA, ROS ENTREP 1ST QUARTER | 1ST SEMESTER | 2024-2025 PART 9: ENVIRONMENTAL & Entrepreneurial Heart flame REGULATORY COMPLIANCE - The surging passion to find - The company should reduce waste fulfillment in the act and process of and comply with alternative discovery. solutions in providing their - Passion - is wanting something so products much that a person would be willing to devote one’s self totally to the quest NOTE: A business plan serves as a blueprint for all strategies related to the business. It also acts like an arsenal of Entrepreneurial Gut Game ideas/concepts that would be useful for - Total involvement of the achieving short-term and long-term entrepreneur in the exciting game objectives. of business, demanding the keenest of intuitive abilities and the strongest intestinal fortitude. LESSON 3: RECOGNIZING THE POTENTIAL MARKET - Intuition - ability to sense without using the five senses. The ability to jump to insightful conclusions INNOVATION without doing a rigorous process of - Must include opportunity and must thinking. serve a positive and beneficial - Courage - being able to withstand service. adversity. It enables the - It is not just creativity or invention. entrepreneur to plunge into It is when an idea is successfully difficult ventures with all the traps transformed into a product, service, and pitfalls. This is fearlessness, application, collusion on a viable thinks anything is attainable. certain market, even the one inside the company. 2) SCANNING THE MARKETING - Innovation is useless when it is not ENVIRONMENT usable - Involves understanding and knowing the intricacies of the 3’S OF OPPORTUNITY environment (macro, micro, 1) SEEKING OPPORTUNITY internal) - Macro-Environmental Sources - Methods of Generating Ideas: - Industry and Market Sources of ○ FGD Opportunities ○ Brainstorming - Consumer preferences, piques, and ○ Brainwriting or Internet perceptions brainstorming ○ Problem Inventory Analysis Entrepreneurial mind frame - Allows the entrepreneur to see things in a very positive and optimistic light - Comes from a problem ENTREP 1ST QUARTER | 1ST SEMESTER | 2024-2025 but is something we can SOURCES OF OPPORTUNITY anticipate. 1) MACRO Environment - Examples: New Clark city (may Social and Cultural airport, the environment will have - Demographics and cultural dimensions that govern the a propagation in the economy) relevant entrepreneurial behavior. Ecological - Beliefs, taste and behaviors, - The growing awareness in the traditions and customs world today makes this factor - Ex: Trend towards healthier food more and more important for choices(More healthy product countries and industries. offerings are demanded by - Example: Increase usage of customers) - Glocalized - used to describe a eco-bags and other eco-friendly product or service that is containers. Opportunity to start developed and distributed an advocacy for a greener globally but is also adjusted to operation. Save the Planet accommodate the user or advocacies consumer in a local market. Ex: McDonalds Technological - Technology leads to the commercialization of new products - The nature of technology used for production of goods and services is an important factor responsible for the success of a business firm. Political and Legal - It governs business practice as - Examples: Increased usage of well as the permits, approvals, smartphones. (Greater utility of and licenses necessary to operate apps to place orders which may the business. expand market reach.) - Laws, rules, regulations 2) MICRO Environment (Industry & - Example of Political: Mandatory Market) Face shields and masks, Suppliers modernization jeepneys - Supplies provide businesses with - Legal: Supply and Demand the materials they need to carry Import and Export foreign out their business activities. exchange rate purchasing power Employees What happens when both social and - If a business employs staff political interference? without motivation, skills or experience it will affect customer - Criminal factor/environment is service and ultimately sales. formed. This cannot be controlled Competitors ENTREP 1ST QUARTER | 1ST SEMESTER | 2024-2025 - These are your rivals which compete with the firm in market Consumer Perception and resources. - Sometimes, product is change by - Types: the way consumers perceive a) Indirect Competitors them. Convince the customer - Offers different products that the product is the one but with similar benefits. - Ex: Toblerone : Sour patch 4) Other Sources of Opportunities kids (they are still sweets) Something unexpected that b) Direct Competitors happens in a community - Offers the exactly the You possess a set of skills or same product. expertise that could add to the - Ex: Toblerone : Hersheys success of your business (both are chocolates) A sudden disruptive technology New knowledge in the society Public CRISIS (ex. Typhoon Yolanda) - Any group that has an actual or potential interest in or impact on 3) SCREENING OPPORTUNITY a company’s ability to achieve its objective - The Opportunity Attractiveness Test (OAT): a framework to measure Customer how compelling an opportunity is. - The people who buy and use a This test is designed to detail each firm’s product and services are an entrepreneurial aspect into small important part of the external chunks to come up with a sound micro-environment. - Customers have different entrepreneurial decision. preferences and dislikes.` - The Personal Screen: In screening opportunities, the entrepreneur Industry Sources of Opportunities (Micro first has to consider his or her level) preferences and capabilities. - Defining an Industry provides many opportunities. One way to analyze an industry is according to product types and according to functions. 3) Consumer Preferences, Piques, Perceptions Consumer Preference 12 R'S OF OPPORTUNITY SCREENING - Taste of a particular group of people. 1) Relevance to Vision, Mission, - Ex. Clothes people wear, food and Objective of an they eat, music they listen to. Entrepreneur - What is your personal vision of Consumer Dislike who you will be ten years from - Things that irritate customer. now? Will chasing the There is opportunity in knowing opportunity bring you closer to what customers don’t want. achieving your long term goals? - Ex. Providing Solutions Do you want to be known as a ENTREP 1ST QUARTER | 1ST SEMESTER | 2024-2025 programming genius? Or just products, the more attractive is simply a billionaire? the opportunity. 2) Resonance to values - Will the opportunity allow the - It is important that the entrepreneur to come up with a opportunities you choose to wide range of related product pursue match your values. and services? - What virtues do you possess? 8) Revolutionary Impact 3) Reinforcement of - Revolutionary products/service Entrepreneurial interest make the old ones obsolete. - It is best to choose an - Is the opportunity going to be opportunity close to your hobby the next “big thing” in the and enhances your market? Will it be a game competencies, changer? - If you like computers, why not engage in computer-enabled or 9) Returns computer-based business which - Opportunities with low cost of will build your knowledge further production but higher prices on hardware and software. would most probably yield the higher return on sales and return 4) Revenues on investments. - Is the revenue potential of the - Returns are not only monetary. It business worth it for your effort? can be the fame attained by the - It should not be grounded only enterprise of the recognition on the quality of the opportunity awards for the entrepreneur. but also with the capability of the future enterprise to strategize 10) Relative Ease of and develop a saleable product of Implementation service. - The best opportunities are the ones easy for you to implement 5) Responsiveness but hard for others. - Responsiveness to customer - Example: If you come from a needs and wants. family of tailors, then you would - If your chosen opportunity fits have an easier time than most in well with unfulfilled customer setting up a tailoring/clothing desires, then you will have a shop. better chance of succeeding. 11) Resources required 6) Reach - The limitated resources of a - Opportunities that can be start-up entrepreneur puts some expanded by adding similar limit to the pursuance of an products or services, branched, or opportunity. franchise outlets have good - Instead of putting up a big potential for rapid growth. enterprise, why not start with a - Will the opportunity allow your small one? Even Henry Sy started enterprise to have a wide market with a small shoe store. reach or geographic coverage? 12) Risks 7) Range - Some opportunities are riskier - The wider the range of possible since they are untested and they ENTREP 1ST QUARTER | 1ST SEMESTER | 2024-2025 - Theowner must have cash have smaller market. More risk, less attractive. to cover the inventories to - Some opportunities are too be purchased and other cyclical or seasonal and expertise operating expenses. may be hard to come by. Product / service Development OTHER FACTORS TO CONSIDER process Product Life Cycle ○ Idea stage - Refers to the length of time ○ Concept products are introduced to ○ Product development stage consumers into the market until it ○ Test marketing is “removed from the shelves”. ○ Commercialization - It is important for the entrepreneur to determine where their business opportunity stands in the product life cycle in order to plan accordingly. 3 Investment Requirements - How much money is need to start the business 1) Pre-Operating Cost - Cost related to the preparation of the business. - Examples: Pre-feasibility study, Market research, Product development, Initial promotional cost, Organizational development 2) Production/Service for the business - Long-term investment for the business. - Examples: Investment in land, machinery, equipment. Renovation (if leasing) 3) Working Capital - Needed to operationalize the business (cash, inventories, account receivable)