ENTREPRENEURSHIP
AN INTRODUCTORY
LESSON
JHIZEL CEREZO
Entrepreneurship, Finance and Marketing
AGRIBUSINESS
FRANCHISE MODEL
ENTREPRENEURSHIP
• A French loan word
• The art and science of converting ideas into
marketable goods and services that helps
improve the quality of man’s life.
• It involves the systematic utilization of four (4)
essential elements: man, money, materials and
machines. (now, 12 M’s of BPOM, see annex A)
• As a science, it involves coordinated, arranged
and systematized knowledge and as an art, it
uses a great deal of knowledge of the elements
and principles of design.
ENTREPRENEURSHIP
• the process of identifying and starting a new
business venture; sourcing and organizing
resources and taking the risks and rewards
associated with it.
• ELEMENTS OF ENTREPRENEURSHIP
• NEW VENTURE /innovated product, service, new idea
• RESOURCES –sourced and organized (man, money, machine,
method, materials, etc see 12 M’s BPOM)
• TAKE RISKS AND REWARDS
ROLE OF ENTREPRENEURHSIP
1. CREATES EMPLOYMENT
ROLE OF ENTREPRENEURHSIP
2.CONTRIBUTES TO A MORE
EQUITABLE DISTRIBUTION OF
INCOME
ROLE OF ENTREPRENEURHSIP
3. CREATES SOCIAL BENEFITS
ROLE OF ENTREPRENEURHSIP
4. UTILIZES AND MOBILIZES
RESOURCES
ROLE OF ENTREPRENEURHSIP
5. REDISTRIBUTES INDUSTRIAL
ACTIVITIES IN THE COUNTRYSIDE
ROLE OF ENTREPRENEURHSIP
6.GENERATES FOREIGN EXCHANGE
ROLE OF ENTREPRENEURHSIP
7. NURTURES TALENTS
ROLE OF ENTREPRENEURHSIP
8. ESTABLISHES INDUSTRIAL LINKAGES
ROLE OF ENTREPRENEURHSIP
9. ENCOURAGES HEALTHY COMPETITION
ROLE OF ENTREPRENEURHSIP
10.PROMOTES THE USE OF MODERN
TECHNOLOGY
ROLE OF ENTREPRENEURHSIP
11. ENCOURAGES RESEARCHES AND
STUDIES and INVENTIONS OF
EQUIPMENT AND MACHINES
IN A NUTSHELL
“There are business opportunities
everywhere. It is the enterprising people
among us who are able to think of
setting up a business no matter how
small.”
“These business enterprises contribute to
the country’s economic growth as well
as to one’s own personal growth.”
ANONYMOUS
THANK YOU!
Vision is the art of seeing the invisible….
ANNEX A: 12 M’S OF BPOM
BPOM stands for Business Planning, Operations and Management
12 M’s
1. Macro and micro trend analysis
2. Market study
3. Method
4. Man
5. Machineries and equipment
6. Materials
7. Moment
8. Media
9. Money
10. Material evidences
11. Material environment
12. Move plan (Move out or move up)
BRIEF EXPLANATION OF 12 M’S
1. Macro-micro trends analysis. This is a situationer report
pertaining to the demographic, natural or geographic,
social, technological, economic and politico-legal aspects
of the industry where the enterprise is operating. ( (it is also
called industry and competitive analysis). Includes: 5 force
and SWOT analyses
2. Market aspects. Include the 4 Ps (now 7Ps of marketing
mix): product, price/pricing, place and promotion, (other
3, people, process and physical evidence), customer
behavior, 9 IMC’s (integrated marketing communication
channels: advertising, personal selling, direct marketing,
sales promotions, public relations, guerilla marketing, viral,
digital marketing and relationship marketing)
BRIEF EXPLANATION OF 12 M’S
3. Methods. This includes operational strategies and
programs, stages or process flow of operation,
includes the Manual of Operations, physical set up.
4. Man. Includes the organizational chart, managerial
and staff employee functions, duties and
responsibilities, skills and competencies, HR policy
manual.
5. Machineries and equipment. Models and
output/productive capacity, ICT device/computer
version and features, specifications and operating
capacity of machines and equipment (POS terminals).
BRIEF EXPLANATION OF 12 M’S
6. Materials. Include raw materials sources, suppliers,
origins, distribution channels, supply chain management,
logistics, inventory management and systems.
7. Moment. This section includes discussion about operation
or production schedule, project implementation/Gantt
chart, activity flow with highlights (period of completion),
PERT-CPM analysis.
8. Media. This section includes communication channels
involving social media (FB, instagram, twitter, blogs and
forums and website content) and corporate
communication processes: upward, downward and
horizontal communication within the organization.
BRIEF EXPLANATION OF 12 M’S
9. Money. Includes financing and financial management
such as sourcing of funds (savings, credit and stock
financing), budgeting (sales, operations and expense
budget preparation), forecasting or projections (sales and
profits planning), ratio analysis, financial statements (BS, IS,
cash flows), break even analysis, payback and NPV
analysis.
10. Material Evidences. This contains documents supporting
the business plan. It includes: owner’s /proponents’
curriculum vitae, organizational chart, legal documents like
business permits and BIR tax forms, bylaws and articles of
partnership or corporation (if partnership or corporation),
research studies, survey results, bibliographical references
for journal and book researches. This also includes record
keeping and database management
BRIEF EXPLANATION OF 12 M’S
11. Material environment. Includes disposal
management systems, sustainability concerns and
studies, bio-diversity, green marketing, ecological
balance issues, corporate governance issues
affecting the geographical/natural environmental
aspect of business operations.
12. Move plans. This involves move out (exit strategy)
or move up (innovation strategy) or both, that is spin
off operations and reengineering operations leading
to modernization. This aspect includes risk/loss
concerns and contingency measures.
4 TYPES OF BUSINESS ENTRY
1.
2.
3.
4.
INHERIT A BUSINESS
BUY AN EXISTING BUSINESS
ADOPT A FRANCHISE
START A BUSINESS. This needs:
a. FEASIBILITY STUDY (new entrepreneurial venture)
b. BUSINESS PLAN
Five Types of Business, Enterprises and Industries
1. Extractive industry – open sea fishing, mining, logging
2. Genetic industry – hog raising, agribusiness, aquaculture, cattle
raising, plantations,
3. Manufacturing – production, finishing,
4. Merchandising – wholesale and retail selling of merchandise
5. Service industry – personal, entertainment, healthcare, travel,
hotel
THANK YOU