ENTREPRENEURSHIP REVIEWER (SIENA, DENISE)

Entrepreneur was coined by JEAN BAPTISE-SAY a nineteenth century economist

- Comes from the french word “entrependre” means “Undertake”

- Pronounciation according to International Phonetic Alphabet
[ahn – truh – pruh – nur]

Entrepreneur – individual who rather than working as an employee will run a small business and take all
the risk and reward given business venture.

DEFINITION OF ENTREPRENEUR
- Who take risks in creating, investing, and developing small business hoping to have a profit out
of goods and services they offered.
- An undertaker of economic enterprises

TWO TRAITS OF A SUCCESSFUL ENTREPRENEUR

1.) CREATIVENESS
- Being able to create new ideas that will provide opportunities and ways to solve a problem
[ ALWAYS CURIOUS ]
2.) INNOVATIVENESS
- Is something that is created from an existing idea or product.
[ UNSATISFIED CUSTOMERS ]

HOW TO STRENGTHEN YOUR ENTREPRENEURIAL ABILITIES

- These are many ways to alter your characteristics, improve your business skills and situation and
also address the necessary environmental and community concerns.

READ
- Research on books about businesses that can be found in most libraries; also read business
related articles on the internet, in newspapers and magazines.

ATTEND TRAINING
- Find and attend university or privately funded training programs in business management,
technical skills or motivation and entrepreneurship

LEARN FROM SUCCESSFUL BUSINESS PEOPLE

- You should be able to find successful business people who will talk to you about their
businesses.

SEEK HELP FROM OTHERS

- Talk about the area that need improvement with your friends and family. Also join different
business association.

DEVELOPING A BUSINESS PLAN

OPPORTUNITY SEEKING
- An entrepreneur is quick to see and seize opportunities
- Contains entrepreneurial mind frame, heart flame, and gut game

MIND FLAME
- Allows the entrepreneur to see things in a very positive and optimistic light in the midst
of crisis or difficult situation.

HEART FLAME
- Driven by passion, they are drawn to find fulfillment in the act and process of discovery

GUT GAME
- Ability of the entrepreneur to sense without using the five senses. This also known as
intuition.
OPPPORTUNITY SCREENING
- A process used to evaluate innovative product ideas, strategies and marketing trends.
- Used to determine compatibility with overall business objectives and whether the idea
would be offer a viable return on investment.

12 Rs in Opportunity Screening
• Relevance
• Resonance
• Reinforcement of entrepreneurial interests
• Revenues
• Responsiveness to customer needs and wants
• Reach
• Range
• Revolutionary Impact
• Returns
• Relative of Ease of Implementation
• Resources Required
• Risks

OPPORTUNITY SEIZING
- A thriving business is all about seizing opportunities
- Unfortunately, most of us people let opportunity slip-by every day because we are
untrained or unaware of the signals that life throws out way.

KEY CONCEPTS THAT MAKE UP ENTREPRENEURSHIP

TYPES OF BUSINESS OWNERSHIP
1) Sole Proprietorship
2) Partnership
3) Corporation
4) Cooperatives

SOLE PROPRIETORSHIP
- Owned by one person
- Gets all Profits, takes all the Losses (unlimited liability)
- Easiest and least expensive to set up
- Easiest for tax purposes
PARTNERSHIP
- TWO or more individuals share costs and responsibilities
- Terms in partnership recorded in partnership agreement
- “Silent partners” - partners that usually will front a lot of capital, but do not want to
participate in business decisions – receive profits in return
- All partners contribute capital goods or expertise.
- Share in the management
- Combine skills and administrative abilities of a number of people.

Two types of Partnership

1. General Partnership
- all partners have unlimited liability ( can held responsible for other partner’s business
related debts.
2. Limited Partnership
- Partners have limited liability ( only responsible for their share )

CORPORATION
- Formal Sector
- Business with legal status
- Can be a small or multinational
- Some owned by, families, small groups
- Ownership often broken into small units, shares which are sold through a stock exchange
- Those who buy shares – “shareholders”
- Since there are many owners, a board of directors runs the corporation.
- Shareholders have limited liability, not responsible for debts
- Get profits as dividends.

TYPES OF CORPORATION
1. Private Corporation
- Only few people control stocks
- Not publicly traded

2. Public Corporation
- Sell shares to raise money
- 1 share = 1 vote
- Those with most shares influence company decisions (usually original owner, executives)

3. Crown Corporation
- Business owned by the federal or provincial government
- Federal – Bank of the Philippines
- Provincial – Transit, Lottery, Museum
COOPERATIVES
- Owned by workers/ those who use it
- Run by board of directors
- Each member only gets one vote
- Profits shared based on use

UNIQUE SELLING PROPOSITION AND VALUE PROPOSITION

USP
1. Unique - It clearly sets you apart from your competition, positioning you the more logical
choice.
2. Selling - It persuades another to exchange money for a product or service.
3. Proposition - It is a proposal or offer suggested for acceptance

VALUE PROPOSITION
- The value proposition is usually a block of text (a headline, sub headline and one
paragraph of text) with a visual (photo, hero shot, graphics).

1. Headline. What is the end-benefit of the products and services you’re offering? In 1
short sentence. You can mention the product and/or the customer. It should be an
attention grabber.
2. Sub-headline. or a 2-3 sentence paragraph. A specific explanation of what you do/offer,
for whom and why is it useful/beneficial.
3. Visual. Images communicate much faster than words. Show the product, the hero shot
or an image reinforcing your main message.

MARKETING PLAN

Marketing is an important part of starting and running a business. It helps you to sell
your goods or services in the right way and to the right people.
 Marketing is the ability to identify the needs of potential customers and to satisfy those
needs better than your competitors, in order to make a profit.

TARGET MARKET

The target market is the individuals or group of people that are interested in a particular
products or services and are willing and able to pay for it.

CLIENT – are the people who buy the products and services that a certain business offer
CUSTOMER – buy goods and services to satisfy economic wants and needs

Economic needs – anything that is required to live

Economic want – is a unfilled desire of a customer

CUSTOMER REQUIREMENTS

• Demographics
• Psychographics
• Behavioristic
• Geographic

1. Demographics are data that describe a group of people in terms of their age, marital
status, family size, ethnicity, gender, profession, education, and income.
2. Psychographics are data that describe a group of people in terms of their tastes,
opinions, personality traits, and lifestyle habits.
3. Behavioristic are data that describe a group of people in terms of their behavior.
4. Geographic are data that describe a group of people in terms of their location.

CUSTOMER PROFILE
- A customer profile is a description of the characteristics of the person or company that is
likely to purchase a product or service.

MARKET SIZE
How many customers are ready to buy your products and services offering in terms of their:
- age
- gender
- occupation
- status
- location
- income

MARKETING MIX
- is a set of controllable and connected variables that a company gather to satisfy customer
better than its competitor. It is known as the P’s in the marketing

7 Ps of MARKETING MIX
• Product
• Price
• Promotion
• Place
• People
• Process
• Physical evidence

PRODUCT
- Can be goods or services, tangible and intangible in nature that enterprises offer to its
customers for their satisfaction.
 - It is a bundle of satisfaction in which the buyers receive as the result or lease or
purchase.
- Some products are often identified by their brand names in order to distinguish them
from other products in the market.
Two Kinds of Products
1. GOODS – are sale of the physical products from the manufacturer to the consumer or
end user. These are tangible products that can measure the satisfaction after using it.
Example: clothes, food, furniture and appliances.

2. SERVICES – are intangible products that the satisfaction of the customer can be
measured in future preferences.
Example: laundry business, salon services, repair shop
PRICE
- the price of the product is basically the amount that a customer pays for to enjoy it.
- It determines the value of a good or service to the buyers.

PROMOTION
- it can boost brand recognition and sales. Promotion is comprised of various elements
like:
• Direct selling
• Public Relations
• Advertising
• Sales Promotion

PLACE
- making the product available in the right quantities and locations where customers want
them.
- Placement or distribution is a very important part of the marketing mix. You have to
position and distribute the product In a place that is accessible to potential buyers.

PEOPLE
- the company’s employees are Important in marketing because they Are the ones who
deliver the service.
- It is important to hire and train the Right people to deliver superior service To the
clients.
- People can be considered as product by providing satisfaction to the consumer.

PHYSICAL EVIDENCE
- involves designing and producing container or wrapper for a product.

PROCESS
- The procedures involved in delivering the product or service