MODULE 1
● Entrepreneur:
a person who organizes and manages any enterprise, especially a
business, usually with considerable initiative and risk takers.
● Mindset:
a mental attitude or perceptions.
● Business Plan:
a written document describing the nature of the business, the
marketing strategy, containing a projected profit and loss statement.
● Entrepreneurial Skills:
- Marketing Skills. It is the ability to introduce your product and
business to the customers.
- Sales Skills. It is the ability to convert prospects into paying
customers.
- Finance Skills. It is the ability to strategies, create income than
losses.
- Planning Skills. It is the ability to plan and set goals.
- Basic Management Skills. It is the ability in managing a business by
providing suitable and effective solutions.
- Leadership Skills. It is the ability to lead people effectively.
- Communication Skills. It is the ability to interact with different people.
● Learner’s Dream Book:
- a physical materialization of the learners’ dreams or goals. It includes
pictures of the dream they want to achieve. Constructing the dream
book, is like a life planning. Life planning is a guided process by
which an individual clarifies goals and challenges, and identifies the
steps needed to move forward.
CORE COMPETENCIES IN ENTREPRENEURSHIP
● 10 Qualities of an Entrepreneur
1.Opportunity Seeking.
- Entrepreneurs seek opportunities, they always look at every situation
as an opportunity.
2. Persistence.
- Persistence describes the ability to push toward the finish line, even
if the finish line seems out of reach.
3. Commitment to work.
- Entrepreneurs are committed of what they’ve said.
4. Demand Efficiency and Quality.
- Satisfying the client’s needs and demands which will achieve through
efficient service and good quality products is a key for a successful
entrepreneur.
5. Risk taking.
- Entrepreneur knows when to take the opportunity and weigh the risk
to avoid the possibility of loses, because of too much risk taking.
6. Goal Setting.
- Successful entrepreneurs set goals accordingly and open their
selves to more possibilities.
7. Information seeking.
- An entrepreneur never stopped on seeking important information that
lead to its success and great innovations.
8. Systematic Planning and Monitoring.
- Every entrepreneur had these in mind. Without definite goals, plan
can be confusing and without regular monitoring of goals,outcome of
plans cannot be achieved.
9. Persuasion and Networking.
- Entrepreneurs build relationship with the customers.They must know
“when” they should pursue potential clients.
10. Self-confidence.
- It is about having trust in what you know and your abilities to handle
the unexpected events in your life. It is also a belief that you are the
one in control of your life and goals..
MODULE 2
CAREER OPPORTUNITIES
● REWARDS IN BUSINESS
1. Higher possibilities for greater income. You can set your target income
freely and work hard for it. Because you are the one who manages your
own business.
2. “Be your own boss”. You are the boss to your own business. You set the
time, making decisions, setting of goals, and everything. So as an
entrepreneurs, it is a challenge for you to lead your business at your own
risk.
3. Opportunity to stretch and use your capacity and creativity. Yourself is
the one who brings out the inner drive you possess to offer great ideas.
4. Opportunity to help others. Through your business you can partner and
help with social enterprise, supplier from the community and provide jobs
opportunities to people out there, neighbors and even to your family
member.
5. Build an entrepreneurial legacy. Mr. Henry Sy who is the founder of SM
which is widely spreading its influence in business that builds legacy and
inspire other people to achieve more through their right attitude and
discipline. The legacy they have made will transferred to their next
generations.
● RISKS IN BUSINESS
`1.Possibility in Failure.As an entrepreneur, there are times that you will
experience failures and it is a challenge to you to face problems and use it
as an opportunity, learn from your mistakes and start over again. That’s
what makes a successful entrepreneur.
2.Unpredictable state in industry. Time to time the supply and demands are
quickly changing. But as an entrepreneur, problems are great opportunities
to seek possibilities.
3. Longer time of working hours. It requires you longer hours in a day to
work than a Regular employee does. But sooner or later, you will gain the
pain through the reward that your business may give you back.
4. Wider range of responsibilities. In a newly start up business, you are the
one who will be responsible in everything from planning, marketing,
managing sales,finance and people.
MODULE 3
ENTREPRENEURS ARE INNOVATIVE OPPORTUNITY SEEKERS.
-They create value out of new potential products and services, flexible in
applying new technology, and creates new market arena or improve an
existing one.
Essential to an entrepreneur’s opportunity seeking
ENTREPRENEURIAL MIND FRAME allows the entrepreneur to see things in
a very positive and optimistic light in the midst of crisis or difficult
situations. Instead of being discouraged, the entrepreneur is able to use
these problematic situations as inspiration in creating something
innovative or new.
ENTREPRENEURIAL HEART FLAME. Driven by passion, they are drawn to
find fulfilment in the act and process of discovery. Passion is that great
desire to attain a vision or fulfil a mission. Despite several
disappointments, the entrepreneur is not easily disheartened, but is rather
driven to persevere even more.
ENTREPRENEURIAL GUT GAME.This refers to the ability of the
entrepreneur to sense without using the five senses. This is also known as
intuition. It also connotes courage or, in the local dialect, “lakas ng loob”
(strong intestinal fortitude). It is the confidence in one’s self..
THE MANY SOURCES OF OPPORTUNITIES:
1. Macro Environmental Sources of Opportunities.refers to the “big or
macro forces” that affect the market, and the industry, which the enterprise
belongs to. They influence how business should be conducted, how
consumers will behave, how supply and demand will move, how different
competitors would position themselves, and how the cost of doing
business will proceed.
Macro Environmental Sources of Opportunities.
1. Socio-Cultural Environment The socio-cultural environment includes the
demographics and cultural cultural dimensions aspect into consideration
helps the entrepreneur assess the trends and dynamics of the bigger
consumer population, their beliefs, tastes, customs, and traditions.
2. Political Environment. The political environment defines the governance
system of the country or the local area of business. It includes all the
laws, rules, and regulations that govern business practices as well as the
permits, licenses and approvals necessary to operate the business.
3. Economic Environment. The forces that mainly drive the
macro-economic environment are the supply and demand. They are the
same factors that drive the foreign exchange rates and interest that
fluctuate with movement of the market forces. Some of the sources of
opportunities are the income levels and the purchasing power of its people
as well as the competitiveness of its industries and enterprises.
4. Ecological Environment. The ecological environment includes all natural
resources and the ecosystem, habitat of men, animals, plants, and
minerals. There is a growing awareness in the world today that will make
this factor more and more important for countries, industries, and
businesses.
5. Technological Environment. New scientific and technological
discoveries, which often lead to the launch and commercialization of new
products with superior attributes or to rendering the old ones obsolete, are
the entrepreneur’s nightmares. In such cases, the entrepreneur is left with
no choice but to invest in new technologies in order to keep up with
competition.
THE MANY SOURCES OF OPPORTUNITIES:
1.Market Sources of Opportunities. Market sources of opportunities can be
discovered from increased or decreased demand as well as higher or lower
Supply.
2.Micro Market. refers to the specific target market segment of a particular
enterprise. These are the target customers that represent the immediate
customers of an enterprise, meaning those who are currently buying the
goods or services offered by the enterprise and its direct competitors.
3.Consumer Perceptions. Consumer preferences refer to the tastes of
particular groups of people.
MODULE 4
-The ultimate goal of doing the opportunity screening is to narrow down
the many opportunities into one or two most attractive ones.
The next step is to conduct a PRE-FEASIBILITY STUDY to ascertain the
viability of the opportunity.
FACTORS that are contained in a pre-feasibility study:
● Market Potential and Prospects
-based on the estimated number of possible customers who might avail
of the product or service.
-For a more realistic number, it would help to narrow down your
estimation to the relevant population or target customers in the area
where you want to operate your business.
● Segmenting the Market
-The most basic approach in determining the target segment is by using
a set of demographics.
● Assessing Competition
-This process would determine how saturated the market is in the given
area of coverage. The more suppliers and competitors there are within a
confined area, the greater the level of saturation.
● Estimating Market Share and Sales
-This process would determine how saturated the market is in the given
area of coverage. The more suppliers and competitors there are within a
confined area, the greater the level of saturation.
FACTORS CONTAINED IN PRE-FEASIBILITY STUDY
● Technology Assessment and OperationsViability
-the entrepreneur must go through the intricacies of detailing the
operations that would be required by the business, which also includes
technology assessment.
CUSTOMER EXPECTATIONS AFFECTING THE SCALE AND COMPLEXITY
OF AN ENTERPRISE’S OPERATIONS:
1. Quantities demanded – needed capacity of operations
2. Quality specifications demanded – from input, process, output and
outcome of the raw materials.
3. Delivery expectations – knowing how much, how frequent, and when to
deliver to customers.
4. Price expectations – the selling price of the product or service would be
● Investment Requirements and Production/Servicing Costs
-The entrepreneur needs to determine how much money is needed to start
the business opportunity with consideration to the technologies and
operating levels required.
THREE INVESTMENT THAT NEED TO BE FUNDED
1. Pre-Operating Costs – costs related to the preparation for the launch of
the business.
2. Service/Production Facilities Investment – it refers to the long-term
investment for the actual business establishment, including investment in
land, buildings, machinery, computers, equipment, software, furniture,
vehicles, etc.
3. Working Capital Investment – this includes the investment needed to
operationalize the business, composed of cash, accounts receivables, and
inventories (work-in-process, raw materials and finished goods).
● Four critical financial statements:
-refer to the monetary transactions that the business is expected to engage
in. The end result of the financial forecasts will indicate the feasibility of the
enterprise.
FOUR CRITICAL FINANCIAL STATEMENTS:
(1)income statement
(2) balance sheet;
(3) cash flow statement; and
(4) funds flow statement
FOUR CRITICAL FINANCIAL STATEMENTS:
1.Income Statement - The income statement is a financial statement that
measures an enterprise’s performance in terms of revenue and expenses
over a certain period. Simply put, the formula is:. REVENUE – EXPENSES =
INCOME OR PROFIT (LOSS)
2.BALANCE SHEET- Assets represent all the investments in the enterprise
including the initial investments that you considered in the pre-feasibility.
Liabilities represent the enterprise’s debts to suppliers, to bank, to
government, to employees, and other financiers. Stockholders’ equity
represents the means that liabilities and stockholders’ equity must
be equal to the total value of the assets.
ASSETS = LIABILITIES + EQUITY
3.FINANCIAL RATIOS AND MEASUREMENT - In any business endeavour,
the investor or the entrepreneur himself or herself will always be interested
in knowing the payback period or how long will it take for him or her to get
back what he or she has invested in the enterprise.
PAYBACK PERIOD can be computed:
PAYBACK PERIOD =. ____TOTAL INVESTMENT________
ANNUAL NET INCOME AFTER TAXES
-In effect, the faster you are able to earn back the money invested, the
better it is for the entrepreneur and the more attractive the business
opportunity becomes.
RETURN ON SALES can be computed:
RETURN ON SALES =. ____NET PROFIT AFTER TAXES__X 100%
SALES
-In effect, the faster you are able to earn back the money invested, the
better it is for the entrepreneur and the more attractive the business
opportunity becomes.
ROA OR ROI FORMULA:
RETURN ON ASSETS =. NET PROFIT AFTER TAXES__X 100%
RETURN ON INVESTMENTS TOTAL ASSETS/INVESTMENT
-The above ratios are but a few of the frequent used financial
Measurements.
●
THE FEASIBILITY STUDY
- For bigger projects that entail millions of pesos worth of investment, a
full-blown feasibility study might be required more than the pre-feasibility
study. A feasibility study is more comprehensive and detailed as compared
to a pre-feasibility study. It is a means to convince the investors to put
money into the business opportunity.
● Opportunity screening
-is the process of evaluating which market offers the best opportunity. In
entrepreneurship it is a process used to evaluate innovative product ideas,
strategies and marketing trends.
MODULE 5
● OPPORTUNITY SEIZING
-is the final stage. The entrepreneur has an idea as to where he or she will
locate the business and how he or she will market the product or service.
● CRAFTING A POSITIONING STATEMENT
-In crafting a positioning statement, the entrepreneur is advised to look at
other competitors in the marketplace. Details such as their major buyers,
the attributes or features of the product that gives the entrepreneur an idea.
Customer profiling is needed their characteristics and traits, behavior and
usage pattern, preferences and dislikes.
● CONCEPTUALIZING THE PRODUCT OR SERVICE OFFERING
-After making assessment of the competing products, the entrepreneur
must then conceptualize his or her own products. A concept is an idealized
abstraction of the product or service to be offered to the preferred market
of the entrepreneur..
-DESIGNING means that the entrepreneur must render the concept and
translate it into its very physical and very real dimensions
(measurement).This entails building a PROTOTYPE of the product that will
be ready for actual TESTING by the entrepreneur and then, later on, subject
to testing by potential customers through focus group discussions (FGD) ,
surveys, product demonstration sessions, and the like.
● DESIGNING, PROTOTYPING and TESTING the PRODUCT
-From conceptualization, the entrepreneur proceeds to the design,
prototyping, and testing of the concept.
● FINANCING, IMPLEMENTING, and ORGANIZING
-Good planning and good programming are essential to have good
implementation. The entrepreneur must begin with the end in mind, or his
or her desired end results, for the chosen opportunity. End results refer to
the final outcomes of the business, such as highly satisfied customers,
huge sales realized, large profits generated, etc.
-People and physical resources are dictated by the sales volume targeted,
the technology to be utilized, and the capabilities needed by the workforce.
The sales volume would then determine the quantities of materials,
supplies, power, space, people,operating expenses, and other
requirements. Technology would define the capital expenditures and It is
important for the entrepreneur to establish the positioning of the business
enterprise in the marketplace. In order to craft a positioning statement, the
entrepreneur is advised to look at other competitors in the marketplace.
Their major buyers, attributes or features that make the competitors’
products attractive should give the entrepreneur an idea.
MODULE 6
● MARKET RESEARCH METHODOLOGIES:
-to help the entrepreneur in gathering relevant market information,
1.Focus Group Discussion
- one of the most common qualitative research tools.This method can also
be used for generating initial insights.
-There are four key decisions to be made: (1)respondent selection; (2)
sample size; (3) data gathering; and (4) data analysis.
-The number of respondents per group should range from six to eight,
depending on the skill of the facilitator and the topic being
Discussed..
-the objective of the FGD must be addressed and conclusive insights must
be drawn to help the entrepreneur improve his or her business.
2. Observation Technique
-is probably one of the best ways of gathering data about customers in
their natural setting without having to interact or talk to them.
-It simply observes people as they go about their usual activity such as
buying and using products and services and assess how they behave.
Having a clear objective in mind will help the researcher focus on the
important things to observe or watch out for.
Two diff. types of Observation techniques:
1. Human observation – humans observe the events as they happen
2. Mechanical observation – mechanical devices are used to record
events for later analysis
3. Survey Research
-is the most preferred instrument for in-depth quantitative research. The
respondents are asked a variety of questions which are often about their
personal information, their motivations, and their behavior.
There are three important concerns in planning a survey:
(1) Sampling techniques; (2) Getting thesample size; and (3) Designing the
questionnaire.
CUSTOMER PROFILING
1.Demographics
-we categorize customers into the following: age,income classes, social
classes/reference groups, ethnic backgrounds, religious beliefs,
occupations, and domiciles.
● Income levels - determine the purchasing power of customers.
● Ethnic backgrounds - and religious beliefs affect the cultural beliefs
of people such as the food they eat, how they save and how they
spend, and their levels of conservatism or progressiveness.
● Social classes and reference groups - often dictate what acceptable
or unacceptable behavior is. These classes or groups often include
family, friends, neighbors, fellow workers, and societal affiliations.
● Occupations - such as those of factory foremen, doctors, taxi drivers,
nurses and teachers also determine what kinds of goods and
services these people would buy.
● Domiciles - or habitats, or areas of residence and environmental
surroundings, oftentimes, define and limit the choices available to
customers.
2.Psychographics
-defines the customer’s motivations, perceptions, preferences, and
lifestyle.
● Motivation - goes to the roots of customer’s needs and wants. This
can be classified into physiological and psychological. Physiological
needs and wants refer to the customer’s personal likes and dislikes
and include the satisfaction of thirst, hunger, and shelter
-Finally, there are lifestyle classifications that talk about what people value
most in their lives. Some talk about their behavioral characteristics as
consumers.
3.Technographic
-classifies people according to their level of expertise in using a product or
a service.
MARKET RESEARCH
-It is a systematic process of collecting, analyzing and interpreting
information. The information could be about a target market, consumers,
competitors and the identifying a new market to launching a new business.
WAYS OF HOW BUSINESSES CAN USE MARKET RESEARCH:
● Identify and develop potential new markets.
● Determine the feasibility of a new business.
● Keep close tabs on marketing trends.
● Test the demand for new products or features.
● Ensure optimal product placement.
● Improve and innovate their business.
● Boost the success of their promotional campaigns.
CUSTOMER PROFILING
-A customer profile is a model of the customer. Based on this profile the
entrepreneur decides on the right strategies and tactics to meet the needs
of that customer.
To profile consumer styles:
(1)the psychographic or lifestyle approach;
(2) the consumer typology approach;
(3) theconsumer characteristics approach.
APPLICATION OF CUSTOMER PROFILING
The entrepreneur can use or apply customer profiling in two ways.
1. The first way is to develop a product or service to test out in the
marketplace.
a. The customers most attracted to the product or service can then be
profiled.
b. After profiling, the next step is to find out how huge this market is for
exploitation purposes.
2. The second way is to profile the different types of customers in a given
industry or area as to their needs and wants.
a.From these types, the entrepreneur could then choose the customer
group with the best potentials.
b. Products or services can be developed by the entrepreneur to match this
chosen customer group.
Market Segmentation
-Customers with similar needs and wants and similar willingness and
ability to pay can be grouped into one customer segment.
Market Aggregation
-Some entrepreneurs prefer to appeal to broader market if possible. They
want market aggregation rather than market segmentation.
Market Mapping
-It refers to grouping customers and products according to certain market
variables. An entrepreneur can use one or a combination of demographics,
psychographics, and technographic to create a market map.
-The purpose of market mapping is to provide the market analyst a better
understanding of the market as a whole and to paint a clearer picture of
where the different competitors are relative to the different market
segments.