ENTREPRENEUR

Lesson 1: INTRODUCTION TO ENTREPRENEURSHIP

Businesses Amidst the Pandemic – In collaboration with the Philippine Department of Finance,
the Asian
- 2/3 firms – suspended activities
- Operating cut operations by half
- The smaller the firm size, the lower share
- Wholesale and retail trade most affected
- Half of the firms temporarily closed in NCR

- One-third of the enterprises already had no cash and savings to cover operations; another one-
third reported running out of cash and funds within 1-3 months
- The most significant financial problem for enterprises was paying staff wages and social security
charges
- Microenterprises faced the most serious shortage of working capital, while large firms had
sufficient liquidity to survive for over 6 months

Entrepreneurship – refers to all the processes and activities involved in establishing, nurturing,
and sustaining a business enterprise. It is an economic activity that involves setting up,
operating, and taking the financial risks of a business.

According to Ronaldo Batisan, it is a proactive process of developing a business venture to

make a profit. Entrepreneurship involves seeking opportunities for a market, establishing and
operating a business out of the opportunity, and assessing its risks and rewards through close
monitoring of the operations.

Societal and Economic Benefits of Entrepreneurship

1. Produces more jobs
2. Amplifies economic activities of different sectors
3. Introduces new innovative products
4. Improved people’s living standards
5. Disperses economic power and increases equality
6. Controls the local wealth and balances regional development
7. Reduces social conflicts and political unrest
8. Elicits economic independence and capital formation
Entrepreneur – from the French term “entreprendre” (entre means between, and prendre means to
take). A person who sets up a business or business, taking on financial risks in the hope of profit. A
person who attempts to create a new product, service, and goods to be sold in the market

- Unique, with innate ability and extraordinary dedication

- Has holistic talent
- Strong leadership

5 Levels of Entrepreneurial Development

1. Self-employed
2. Manager
3. Leader
4. Investor
5. True entrepreneur

Entrepreneurs’ Field of Expertise

- Technopreneur – An entrepreneur who puts technology at the core of his or her business model
- Social Entrepreneur – one who takes advantage of the country’s social problems and turns
them into profitable institutions with the intention of helping the disadvantaged community
rather than making a profit. Their profits are principally used to fund social programs
o Charity – nonprofit; not generating income or revenue
o For-Profit Company - CSR and social impacts are considered as ‘add-on' to the core
business agenda
- Intrapreneurs – Highly trained and specialized, whereas an entrepreneur may have broader
views and knowledge of the industry in which they work. Entrepreneurs in a large company or
corporation are tasked to think, establish and run a new business idea or project
- Extrapreneur –offer their innovative solutions to problems with others so that everyone
benefits. An entrepreneur who hops from one company to another to act as innovation
champion, providing creative and efficient solutions.

Common and Core Competencies of an Entrepreneur

Common Traits
1. Proactive – more reactive than being passive
2. Agents of Change - entrepreneurs can adapt to different changes to their environment.
3. Risk Takers – entrepreneurs do not just take opportunities left and right, but they look at
different perspectives
4. Sharp eye for opportunities - entrepreneurs see that every event in the environment is an
opportunity
 5. Sociable - communicating and considering the target market and other ideas are crucial to the
life of the business
6. Networkers - creating networks that strengthen the bond of different businesses
7. Decisive - entrepreneurs always have a decision about their business. They do not settle for gray
areas or unclear solutions. They do not leave an issue unsolved without a disposition. They
make sure that all aspects of their business have clear objectives and strategies period last, and
they base their decisions on scientific calculations backed up by their experience and technical
knowledge.
8. Balanced - the minds of entrepreneurs should have a balance between the analytical creative
side. Their brains are always playing with ‘unique ideas’ that no one should have ever thought of
yet. Entrepreneurs always have “Eureka” moments and enjoy them
9. Innovative - the minds of entrepreneurs are rich with big ideas that can add value to their
existing business or could come or game changer in the industry or business where they belong.
They do not stop improving and thinking of new and worthwhile ideas for their business

Core Traits
1. Leaders - successful entrepreneurs always have the heart of a leader. To be successful leaders,
they must be a source of inspiration for their employees. They must be very humble,
approachable, friendly, and know how to listen to people's concerns. Leaders act on the
responsibilities that t where given to them. They use their strengths and limitations to make the
best of the situation, they must also be decisive and know how to make their decisions. They
know how to unite the team and bring out the best in every employee
2. Communicators - they know how to use all forms of communication to effectively share ideas
and address certain concerns with their customers or employees. Effective communication not
only provides people with a clear view of what the business offers, they also help prevent
mishaps in an organization. Communication channels between entrepreneurs and their
employees or customers should always be open to ensure the smooth flow of operations in
their business
3. Specialists - entrepreneurs are experts in their chosen business. They are tactical and are very
keen on details. When asked about the specifics of their products or service, they can easily
answer without heavily relying on people. They understand the totality and specificity of their
business. As a result, they can easily think of innovating and improving the product or service
offerings because they know their intricacies. They enjoy being an action instead of being
behind the scenes.
4. Problem Solvers - Intrapreneurs possess critical thinking skills and look at problems as
challenges or puzzles that they need to solve. They know how to handle issues in any area of the
business, be it finance, operations, or marketing. They listen to the plight of their customers and
employees.

Employment or Entrepreneurship?
5 Factors to Consider
1. Income
 a. Entrepreneur: Income is generated passively even when the entrepreneur is resting.
Unlimited Opportunity income, depending on the success of the business
b. Employee: income generated activity (on working hours only); no work equals no pay
2. Hiring, Firing, Organizational Set Up
a. Entrepreneur: provides jobs; is the owner of the business and conducts talent selection.
Fully responsible for serving customers, making business profitable and sustainable and
providing employee satisfaction.
b. Employee: seeks a job; it's the one applying for a job and is interviewed by the
company's hiring officer. has a goal of satisfying only the employer or the direct
supervisor.
3. Daily Tasks
a. Entrepreneur: performs all necessary variable tasks to establish and manage a start-up
business, which usually takes most of the entrepreneur's time; Spent more hours on
work than a regular employee and sometimes gets no sleep. prepares policies,
procedures, and memoranda for the business.
b. Employee: has routine tasks and works at regular or normal hours. Follows the policies
procedures and memoranda from the employer.
4. Leisure and Vacations
a. Entrepreneur: Has a flexible schedule and can take an unlimited number of vacation
days (applicable only if the business has stabilized already)
b. Employee: has a limited number of vacation days imposed by the employer
5. Taxations
a. Entrepreneur: text on the net income; can claim taxable income deductions for
allowable expenses incurred by the business.
b. Employee: Text on the gross income; cannot use expenses as incurred related to the job
such as food and transportation expenses to claim for the ductions from taxable income
6. Comfortability
a. Entrepreneur: It's comfortable in doing multiple and challenging tasks and takes
accountability for the risk and profits of the business; does not want to be confined in a
box; things outside the box or sometimes thinks there is no box
b. Employee: Maybe comfortable with the routine and minimal risk; may also be
comfortable in working for the company itself.

Engaging in Entrepreneurship
- Franchising
- Intrapreneur
- Acquisition

Lesson 2: RECOGNIZING THE POTENTIAL MARKET

3’s of Opportunity – the 3sof opportunity spotting and assessment is the framework that most
promising entrepreneurs use to finally come up with the ultimate product or service student for
a specific opportunity. An opportunity is an entrepreneur's business idea that can potentially
become a commercial product or service in the future

3s of Opportunity
- Seeking - the first step and it's the most difficult process of all due to the number of options xat
the entrepreneur will have to choose from. It involves the development of new ideas from
various sources as follows;
o Macroenvironment sources
 STEEPLED - this is a mnemonic or socio-cultural, technological, economic,
environmental, political, legal, ethical, and demographic factor. This represents
the general environment where the entrepreneur can identify business
opportunities from and where the future business is about to operate. any
external factor or a combination of external factors from these eight
environmental forces can have a direct effect in opportunity generation and
business sustainability.
 Socio-cultural factors - These factors represent a general view of a
locality 's traditions, costumes, beliefs, norms, and perception.
 Technological factors- these are composed of innovations of an existing
technology or an invention of a new one mostly on applied science and
engineering research areas. Entrepreneurs should always be up-to-date
with technological changes, as they are catalysts for improving a
product or service or replacing them entirely
 Economic factors - these factors play a vital role in the scanning of the
marketing environment because economic factors directly affect any
business venture. These factors include income, expenses, and
resources that can influence the cost of doing business and gathering
income
 Environmental or ecological factors - these factors should be given
much importance in conducting a business especially when the world
has already suffered severely from human induced calamities. this can
of these factors will help the entrepreneur determine if the business
they are entering into will comply with the environmental standards or
will just be a hazard to people, animals, and nature
 Political factors - these factors are mostly induced by government
policies and administrations, which can have a strong effect in the
entrepreneur 's business
 legal factors - related with the political factors, legal factors our
government last week regulations that can restrict or allow business
activities
  Ethical factors - these are the factors that will serve as an entrepreneur
apostrophe as guide on how to be ethical in running the business
 Demographic factors - these are the characteristics of the people in the
target market
 Industry - this is the source of the current trend in what is happening in the
industry to where the future business will belong to. For example, the
entrepreneur should be fully acclimated on what is happening with the rice
industry if he or she wants to establish a rice retailing business
 New Discovery or Knowledge - these are new trends that can be the core
business model of a new venture. For example, is the influx of mobile
application necessitates businesses to have this platform as one of their
transaction channels
 futuristic opportunities - these are projected new opportunities that can
possibly affect the new business while it is running.
o Micromarket
 Consumer preferences, interest, and perception - These are the current needs
and wants of potential customers that should be discovered right away by a
budding entrepreneur. This way, he or she will be able to take a chance on the
opportunity. A ‘need’ is recognized when a customer believes that there is a
difference between his or her current situation versus his or her desired
condition. A ‘want’ on the other hand, is recognized when a customer believes
that there is a specific product or service that can perfectly suit the need
 Competitors - recognizing and understanding potential competitors will aid the
entrepreneurs to develop a product or service that is unique and will surely
stand out from their competitors the 4Ps of marketing (product, place, price,
and promotion) will be competitively positioned if the entrepreneur is familiar
with his or her competitors
 Unexpected opportunities from customers - oftentimes, the most brilliant
ventures come from the most unexpected opportunities. It may happen in
unlikely situations, unlikely places, and with unlikely people. Existing problems
and bottlenecks often give rise to unexpected opportunities. What
entrepreneurs usually do is to be on top of the situation and change the
markets perception of other products or serviced or social entrepreneurs who
turned unnoticed products into superstar products that carry also the value of
social responsibility
 Talents hobbies, skills, and expertise - business opportunities do not just come
from outside forces, but also from within the entrepreneur. The entrepreneur 's
talents, hobbies, skills, or expertise can be a source of business opportunity
 Irritants in the marketplace such as deterrence, problems, complaints, and
delays - generally, entrepreneurs see opportunities in situations where there is
a recurring problem or sometimes when there is no more hope in solving a
problem. When customers are already sick and tired of the same old issue or
problem, that is when the opportunistic entrepreneur should come in and make
a difference.
  Location - often, entrepreneurs just must look at their ecosystem and they will
be able to spot a business opportunity right away
- Screening - is the process of cautiously selecting the best opportunity. The selection will depend
on the entrepreneur's internal intent, the main objective that the business will accomplish in the
entrepreneur apostrophe as life, and the external intent, which will address compelling needs of
the target market. The entrepreneur should apply due diligence and independent judgment in
selecting the opportunities could have potential and eliminate those that are not within the
scope of the entrepreneur apostrophe as risk appetite. The risk appetite refers to the
entrepreneur apostrophe as tolerance of business risks
o Cautiously selecting the best opportunity
o Internal and external intent
o Due diligence and independent judgment in selecting opportunities
o Risk Appetite
o Time must be considered

- Seizing - is the last step and opportunity spotting and assessment. This is the “pushing
through” with the chosen opportunity. Entrepreneurs should make the best out of this
opportunity, and they should exert effort and full dedication for the success of the new
venture. The entrepreneur's idea can be any type of innovation listed below
 o breakthrough innovation - these innovations come out which may also include
inventions, occur infrequently as these establish the platform on which future
innovations in an area are developed
o technological innovation - these innovations occur more frequently than
breakthrough innovations. These innovations are technological advancements of
an existing product or service. These innovations need to be protected too.
o Ordinary innovation - these innovations occur ordinarily as the name implies.
They commonly originate from market analysis and technology pull instead of a
technology push

Product or Service Planning and Development Process

1. Ideal stage - in this stage, the entrepreneur determines what are the feasible products
and/or services that will perfectly suit the opportunity.
2. Concept stage - once we acceptable product or service has already been identified, it
will go through the concept stage. And the concept stage, the developed idea will
undergo a consumer acceptance test period. This test includes getting the initial
reactions of the primary target market and the distribution channel
3. Product development stage - in this stage, the entrepreneur leverages on the
information generated from the prospective customers via the concept stage. Actual
reactions from prospective customers are determined. The entrepreneurial conduct
consumer panel where the actual product samples or actual service samples will be
given or rendered to the panel of potential customers
4. Test marketing stage - is this stage validates the work done from the first three stages
to measure success in the commercialization of the product or service. Actual sales
result will be the foundation of the customers' acceptance level and will be the basis in
commercializing the product or service
5. commercialization stage - is this stage is also called the launch stage. While the product
has now begun to be distributed and sold, this may be done on a limited basis

The Entrepreneurial Process

1. Opportunity Spotting and Process
a. Evaluate the identified
b. Conceptualize and measure the opportunity
c. Identify the perceived value of the opportunity to the company and the customers
2. Developing a Business Plan
3. Determining the Capital Needed
4. Running the Business
a. Practice leadership as a way of life
 b. Recognize critical success factors

Scanning the Environment – The starting point of new ventures. Understanding and knowing
the intricacities of macro environment, microenvironment, and internal environment. Find
opportunities before coming up with a new product or service.

Entrepreneurial mind frame – allows an entrepreneur to see things in a positive and optimistic
light

Methods of Generating Ideas

- Focus Group Discussion
- Brainstorming
- Brainwriting or internet brainstorming
- Problem Inventory Analysis

Elements of Business Opportunity

- Superior value to customers
- Solves a compelling problem, issue, need or want
- Potential cash cow – (Boston Consulting Group Matrix). Your idea will provide you the possibility
to be profitable.