Entrepreneurial Reviewer PDF

**RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION** **1. Development of Managerial Capabilities -** this means that one of the benefits an entrepreneur gets is to develop his managerial skills. **2. Creation of Organizations -** which means that because of entrepreneurship many organization will...

**RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION** **1. Development of Managerial Capabilities -** this means that one of the benefits an entrepreneur gets is to develop his managerial skills. **2. Creation of Organizations -** which means that because of entrepreneurship many organization will exist. **3. Improving Standard of Living -** this means that entrepreneurship can lift up the economic status of an individual. **4. Means of Economic Development -** this means that not only the life of the entrepreneur is improved but also the society where the business is located. **CONCEPT OF ENTREPRENEURSHIP** The word \"**entrepreneur**\" was derived from the French verb **enterprendre**, which means \"**to** **undertake**\" This is pinpointing to those who \"**undertake**\" the risk of enterprise. The enterprise is created by an entrepreneur and the process is called \"**Entrepreneurship**.\" Entrepreneurs are **innovators**. They are willing to take the risks and generate unique ideas that can provide profitable solutions to the needs of the market and the society. **FACTORS AFFECTING ENTREPRENEURSHIP** 1\. Personality Factors which include: **a**. **Initiative**-doing things even before being told. **b. Proactive-** which means he can classify opportunities and seize it. **c. Problem Solver -** which means he can retain good relations with other people. **d. Perseverance-** meaning he will pursue things to get done regardless of challenges. **e. Persuasion**-means that he can entice people to buy even if they don\'t want to. **f. A Planner** he makes plans before doing things and does not fail to monitor it. **g. Risk-taker**-which means that he is willing to gamble but he will calculate it first. 2\. Environmental Factors which include **political, climate, legal system, economic and social conditions and market situations.** **COMMON COMPETENCIES IN ENTREPRENEURSHIP** **1. Decisive -** an entrepreneur must be firm in making decisions. **2**. **Communicator** - an entrepreneur must have a convincing power. **3. Leader**- an entrepreneur must have the charisma to be obeyed by his employees **4. Opportunity seeker**-an entrepreneur must have the ability to be the first to see business chances. **5. Proactive** an entrepreneur can control a situation by making things happen or by preparing for possible future problems. **6. Risk Taker-**an entrepreneur has the courage to pursue business idea **7. Innovative -** the entrepreneur has big business ideas and he does not stop improving and thinking of new worthwhile ideas for his business. **CORE COMPETENCIES IN ENTREPRENEURSH**IP **1. Economic and Dynamic Activity -** Entrepreneurship is an economic activity because it involves the creation and operation of an enterprise with a view to creating value or wealth by ensuring optimum utilization of limited resources **2. Innovative-**The entrepreneur constantly looks for new ideas, thus he needs to be creative. **3. Profit Potential**-The entrepreneur can be compensated by his profit coming from the operation. **4. Risk bearing**-The entrepreneur needs to gamble but wise enough to offset the risk. **TYPES OF ENTREPRENEURS** **1. Innovative Entrepreneurs -** They are those who always make new things by thinking of new ideas. They have the ability to think newer, better and more economical ideas. **2. Imitating Entrepreneurs-**They are those who don\'t create new things but only follow the ideas of other entrepreneurs**.** **3. Fabian Entrepreneurs**-They are skeptical about changes to be made in the organization. They don\'t initiate but follow only after they are satisfied. **4. Drone Entrepreneurs** They are those who live on the labor of others. They are die-hard conservatives even ready to suffer the loss of business. **5. Social Entrepreneurs** They are those who initiate changes and drive social innovation and transformation in the various fields such as education, health, human rights, environment and enterprise development. **CAREER OPPORTUNITIES OF ENTREPRENEURSHIP** **1.Business Consultant**- with the expertise of in the field of entrepreneurship, he can be a very good source of advices to other entrepreneurs and would be business men. **2. Teacher** - a graduate of an entrepreneurship can use his knowledge in teaching **3. Researcher-**the entrepreneur can be employed as a researcher by an enterprise. **4. Salesman**-the entrepreneurship graduate can apply as a salesman. **5. Business Reporter**-the entrepreneur being expert in the field, can be employed as a business reporter. -- -- -- -- **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 a new venture is presented in the diagram below. (Nick L. Aduana, Etrepreneurship in Philippine Setting for Senior High School, 2017, C&E publishing page 46, Aduana, 2017) **Figure 1. The Entrepreneurial Process of Creating New Venture** **Essentials in Entrepreneur's Opportunity -- Seeking** These are the basic foundation that the entrepreneur must have in seeking opportunities: **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. **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. **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 everything you aspire can be reached. 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. The following are some sources of opportunities: 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 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. 1.2 The Societal environment includes the various forces like a\. Political forces -- includes all the laws, rules, and regulations that govern business practices as well as the permits, approvals, and licenses necessary to operate the business. b\. Economic forces -- such as income level and employment rate. c\. Sociocultural forces -- customs, lifestyles and values that characterize a society. d\. Technological environment -- new inventions and technology innovations. 1.3 The Industry environment of the business includes: a. Competitors b\. Customers c\. Creditors For example, one factor in the physical environment that can easily change is the climate. The temperature is very high during summer but very low during the rainy season. An individual with entrepreneurial drive can be extremely imaginative and inventive in identifying opportunities. He/she can venture on a business that responds to the needs of the people during summer and rainy season. 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. For example, an individual with knowledge in repair and installation of a machine engine discovers additional engine parts that considerably reduce fuel consumption. 3. **Government's thrust, programs, and policies** The priorities, projects, programs, and policies of the government are also good sources of ideas. For example, the use of firecrackers to celebrate New Year's Eve is strictly prohibited. People without entrepreneurial interest will view the ordinance as a plain restriction. However, for an entrepreneur, it is a business opportunity to come up with a new product that will serve as a substitute for firecrackers. 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. For example, an accountant who has learned the appropriate accounting and management skills and techniques in a prominent accounting firm can start his/her business venture by opening his/her own accounting firm. It is also known as the "five forces of competition". An industry environment is a competitive environment. Regardless of what product or services you have, competition is always present. **Competition** -- it is the act or process of trying to get or win something. For example, the prices are lower when there is a competition among the stores. These are the five forces competing within the industry: 1. **Buyers** The 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. The threat of its bargaining power will be less if the following factors are noticed: **2. Potential New Entrants** A new entrant is defined as companies or businesses that have the ability to penetrate or enter into a particular industry. For example, in the level of capital requirements, if the business requires huge capital, new entrants should decline to join the business. This gives a threat to the business. This can be noticed if there is the presence of the following factors: **3**. **Rivalry among Existing Firms** Rivalry is a state or situation wherein business organizations are competing with each other in a particular market. For example, it depends on the marketing strategy of your competitor, like giving freebies and special offers. The intensity of rivalry among existing firms is characterized to the following factors: **4. Substitute Products** *Substitute* is one that serves the same purpose as another product in the market. For example, the consumers decide to use margarine as a substitute for butter. In case the price of butter increases, preferably the consumer will gradually switch to margarine. A substitute product can give a big threat in the industry environment if the following factors are noticed: The Suppliers are the one that provide something that is needed in business operations such as office supplies and equipment. In an example where supplies and services being offered is unstable the intensity of the threat is strong in this kind of the competitive force in the industry. This can be noticed if there is the presence of the following factors: **Buyers** -- are the ones who pay cash in exchange for your goods and services. **Competition** -- it is the act or process of trying to get or win something. **Entrepreneurial process** - can be defined as the steps taken in order to begin a new enterprise. It is a step-by-step method one has to follow to set up a business. **Entrepreneurial ideas** - an innovative concept that can be used for financial gain that is usually centered on a product or service that can be offered for money. **Essentials of entrepreneur's opportunity -- seeking** -- these are the basic foundation that the entrepreneur must have in seeking opportunities, such as entrepreneurial mind frame, heart flame and gut game. **External environment** - refers to the physical environment, societal environment, and industry where the business operates. **Government** - refers to the local government (municipality, city, or provincial) or the national government and its branches. **New entrants** -- the one who enters something. **Opportunity -- seeking** -- the process of considering, evaluating, and pursuing market-based activities that are accepted to be beneficial for the business. **Rivalry** -- is a state or situation in which people or groups are competing with each other. **Sources of opportunity** - can be attained by assessing and looking at changes in the environment; technological discovery and advancement; government's thrust, programs, and policies; people's interest, and past experiences. **Substitute** -- anything that takes the place or function of another. **Suppliers** -- are the ones who provide something that is needed or wanted. **\>Lesson 3** **What is Unique Selling Proposition (USP) and Value Proposition (VP)?** This part allows the entrepreneur to prepare himself on how to advertise and sell his product even if it is similar to others. In this lesson, you will find out the answers and understand more about the market. **Value Proposition (VP)** - is a business or marketing statement that summarizes why a consumer should buy a company\'s product or use its service. This statement is often used to convince a customer to purchase a particular product or service to add a form of value to their lives. In creating Value Proposition, entrepreneurs will consider the basic elements: Target Customer Needs/opportunity Name of the product Name of the enterprise/company There are many competitors in the market who establish superiority over other entrepreneurs. Entrepreneurs should think of other alternatives to make their products better. An important aspect in Value Proposition is that it must be truthful and that it should establish credibility to the consumers. Example: Potential value proposition is most common in small businesses of your locality. Aling Charing Sari-Sari Store opens only from 6:00 am to 6:00 pm, but Aling Charing noticed that there are customers who go to a nearby town to look for a convenience store at around 10:00 pm to 6:00 am. She believes that this is a great opportunity for her store to operate 24/7. In this example, the proposed value proposition is: "Charing sari-sari Store, open 24/7". The business describes a sari-sari store -- a basic retail store. The assurance from this value proposition is because of the phrase "open 24/7", Aling Charing's sari-sari store opens 24/7, which makes it different from other competitors. **Unique Selling Proposition (USP)** -- refers to how you sell your product or services to your customer. You will address the wants and desires of your customers. As an entrepreneur, you should think of marketing concepts that persuade your target customers. You may ask the following questions in doing this: What do the customers want? What brand does well? What does your competitor sell well? Some tips for the entrepreneur on how to create an effective unique selling proposition to the target customers are: Identify and rank the uniqueness of the product or services character Be very Specific Keep it Short and Simple (KISS) As an entrepreneur, present the best feature of your product or service that is different from other competitors. Identifying the unique selling proposition requires marketing research that you will learn from the other modules. In promoting your products or services, make sure that it is very specific and put details that emphasize the differentiator against the competitors. Keep it short and simple and think of a tagline that is easy to remember. Right now, the proposed unique selling proposition is: "Charing sari-sari store, open 24/7" Readers get confused between value proposition and unique selling proposition. The two propositions are used to differentiate the products from competitors. For example, Jollibee is known to have a Filipino taste burger. This brand has a unique selling point because of its tagline "Langhap Sarap" Unique Selling Proposition and Value Proposition are two of the most famous tools used to explain why prospect customers buy each product and service. Base on each definition, we learn that USP and VP are frameworks of each business industry. The two propositions are valuable for the entrepreneurs. Make sure that you\'re focusing on a solution that is a need, and make sure that you are targeting a customer segment that\'s large enough and cares enough about your solution so that you can build a viable business. We\'ll talk more about determining the size of your target market in our next lesson. After you understand the value proposition and the unique selling proposition, now it's time to understand the target market, customers requirement and market size. As you might expect, the market is right at the center of our word cloud for this lesson. Understanding your market is critical in building your business model. There are three factors that will determine your customers. A. **Target Market** Market Targeting is a sage in market identification process that aims to determine the buyers with common needs and characteristics. Prospect customers are a market segment that an entrepreneurial venture intends to serve. In targeting a specific market, it will exclude people if it will not fit your criteria. Rather, target marketing allows you to focus your marketing money and brand message on a specific market that is more likely to buy from you than other markets. Choose a product that is more affordable, efficient, and effective to reach potential clients and generate business. Commonly used methods for segmenting the markets are follows.: **1.Geographic segmentation** -- the total market is divided according to geographical location. **2. Demographic Segmentation** -- divided based on consumers Variables to consider a\. Gender b. Age c. Income d. Occupation e\. Education f. Religion g. Ethnic group h. Family size **3. Psychological Segmentation** -- divided in terms of how customers think and believe Variables to consider a\. Needs and wants b. Attitudes c. Social class d. Personality traits e\. Knowledge and awareness f. Brand concept g. Lifestyle **4. Behavioral Segmentation** -- divided according to customers' behavior pattern as they interact with a company. Variables to consider a\. Perceptions b. Knowledge c. Reaction d. Benefits e. Loyalty f. Responses **B. Customer Requirements** Customer requirements are the specific characteristics that the customers need from a product or a service. There can be two types of customer requirements: 1.**Service Requirement** **2.Output Requirement** **Service Requirement**: An intangible thing or product that cannot be touched but the customer can feel the fulfillment. There are elements in service requirement like on-time delivery, service with a smile, easy-payment etc. It includes all aspects of how a customer expects to be treated while purchasing a product and how easy the buying process goes **Output Requirements**: Tangible thing or things that can be seen. Characteristic specifications that a consumer expects to be fulfilled in the product. Costumers will avail services as a product, then various service requirements can take the form of output requirements. For example, if the consumer hires a multi cab, then on-time arrival becomes an output requirement. Customer buys gadgets (phone speaker) the specification like the loudness and clarity are the output requirements. B. **Market Size** The entrepreneur's most critical task is to calculate the market size, and the potential value that market has for their start-up business. Market research will determine the entrepreneurs' possible customers in one locality. **What is Market Size?** Market size is like a size of the arena where the entrepreneurs will play their business. It is the approximate number of sellers and buyers in a particular market. Companies are interested in knowing the market size before launching a new product or service in the area. In determining the market size, the entrepreneur will conduct a strategic marketing research from reliable sources using the following method. The first step is to estimate the potential market -- approximate number of customers that will buy the product or avail your services. The second step is to estimate the customers who probably dislike to buy your product or avail the services. The third step is for the entrepreneur to estimate the market share, that means plotting and calculating of the competitor's market share to determine the portion of the new venture. Market size becomes the most important factor if you ever need to raise funding for your business. Market Research or Marketing Research Process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the market ( Market Research or Marketing Research Process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the market ( Market Research or Marketing Research Process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the market ( Market Research or Marketing Research Process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the market ( Market Research or Marketing Research Process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the market Market Research or Marketing Research Process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the market Market Research or Marketing Research Process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the market Market Research or Marketing Research Process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the market Market Research or Marketing Research Process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the market Market Research or Marketing Research Process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the market Market Research or Marketing Research Process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the market Market Research or Marketing Research Process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the market Market Research or Marketing Research Process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the mark DATA COLLECTION is the most valuable tool in any type of research study. Inaccurate data collection may cause mistakes and ultimately lead to invalid results. ( DATA COLLECTION is the most valuable tool in any type of research study. Inaccurate data collection may cause mistakes and ultimately lead to invalid results. ( Market Research or Marketing Research Process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the market **Market Research or Marketing Research** Process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the market. 4 CO\_Q1\_Entrepreneurship SHS Module 4 DATA COLLECTION is the most valuable tool in any type of research study. Inaccurate data collection may cause mistakes and ultimately lead to invalid results. (Edralin, 2016, p. 80) TIPS in COLLECTING DATA Organize collected data as soon as it is available Know what message you want to get across and then collect data that is relevant to the message Collect more data Create more **DATA** **COLLECTION** is the most valuable tool in any type of research study. Inaccurate data collection may cause mistakes and ultimately lead to invalid results. **TIPS in COLLECTING DATA** Organize collected data as soon as it is available Know what message you want to get across and then collect data that is relevant to the message Collect more data Create more data Take note of interesting or significant data \(3) three different data collection techniques\| SURVEY (Questionnaire), INTERVIEW and FOCUS GROUP. **DISCUSSION** -- and evaluate their suitability under different circumstances **SURVEYS** are the most common way to gather primary research with the use of questionnaires or interview schedule. These can be done via direct mail, over the phone, internet (e.g. Google) or email, face-to-face or on the Web (e.g. Skype or Viber). When designing or constructing your own research questionnaire, remember the following guidelines. (Edralin, 2016) Keep it as simple as possible Make sure it is clearly appealing and easy to read Cluster or block related questions Move from complex questions to more specific questions Make sure questions are concise and easily understood Avoid questions that are difficult to answer Make sure response scales used are consistent with categories that are mutually exclusive **INTERVIEW** is one of the most reliable and credible ways of getting relevant information from target customers. It is typically done in person between the researcher/entrepreneur and a respondent where the researcher asks pertinent questions that will give significant pieces of information about the problem that he will solve. The interview is also helpful even when the business has already started because the customers' feedback provides the entrepreneur a glimpse of what the customers think about the business. Interviews normally last from 15 to 40 minutes, but they can last longer, depending on the participants' interest in the topic. In a structured interview, the researcher asks a standard set of questions and nothing more. **Personal interviews** are the traditional method of conducting an interview. It allows the researcher to establish relationship with potential participants and therefore gain their cooperation. It generates highest response rates in survey research. They also allow the researcher to clarify indefinite answers and when necessary, seek follow-up information. **Telephone interviews** are less expensive and less time-consuming, but the disadvantages are that the response rate is not as high as the face-to-face interview, but considerably higher than the mailed questionnaire. **FOCUS** **GROUP DISCUSSION (FGD)** - is an excellent method for generating and screening ideas and concepts. It can be moderated group interviews and brainstorming sessions that provide information on user's needs and behavior. The following are considerations in the use of focus group discussions in market research: The length of the session is between 90 and 120 minutes. Conduct focus groups discussion with 8 to 10 participants per group. Assign an expert moderator / facilitator who can manage group dynamics. Use a semi-structured or open-format discussion Strive for consistency in the group's composition (for example, it may not be advisable to have business customers and retail customers in the same focus group, their needs are very different) (Lee 4 CO\_Q1\_Entrepreneurship SHS Module 4 DATA COLLECTION is the most valuable tool in any type of research study. Inaccurate data collection may cause mistakes and ultimately lead to invalid results. (Edralin, 2016, p. 80) TIPS in COLLECTING DATA Organize collected data as soon as it is available Know what message you want to get across and then collect data that is relevant to the message Collect more data Create more data Take note of interesting or significant data v