REPORT IN ENTREPRENEURSHIP

CHAPTER 6

THE SEARCH FOR

BUSINESS
OPPORTUNITIES

ESTOPIN, ANTONIO
CABALQUINTO, CHRISTINE JOY
ORDANIZA, ERICA
12 ABM
MRS. KETCHIE DADIZON

ENTREP. TEACHER
ENTREPRENEURIAL ACTIVITIES

Real entrepreneurs have the courage to explore market opportunities.

Basic Features of Consumer Satisfaction

Better Quality
Lower Price
More Conveniences

THE SEAR'S STORY

BUSINESS OPPORTUNITIES IN RURAL COMMUNITIES

Rural Sector -sleeping business potentials

Senate President Neptali Gonzales has learned that other small entrepreneurs have
succeeded in selling their products to foreign markets.

RESOURCES IN THE COMMUNITY

1. Markets 5. Suppliers of inputs

2. Individual Interest 6. Manpower
3. Capital 7. Technology
4. Skills

SWOT ANALYSIS

a tool of evaluating the strengths, weaknesses, opportunities and threats associated with
the particular product or service.

Strength

-cheap and abundant raw materials - management and technological expertise of

the entrepreneur
- sufficient funds
- good quality or service
- availability of technology
- ease of production
- small capital
Weaknesses

- high price -Irregular supply

- poor quality or service - unattractive design
-weak management - high cost of production
- lack of skilled workers
Opportunities

- big demand -poor quality of existing products/ service

- favorable gov't policy/ support -absence of product/ service
- scarcity - possibilities of good profit
Threats

- shortage of raw materials -expectation of unfavorable government

laws such as taxes
- entry of many competitors
- deteriorating peace and order
- increasing cost of production
- emergence of unfair demands of workers
through labor union activities

LINKAGES OF RESOURCES

Backward Integration -ownership/ control of the inputs of production by the enterprise.

Forward Integration -ownership/control of the marketing system by the enterprise.

PRODUCT LIFE CYCLE

Introduction

Low consumer awareness and High costs of development and

acceptance of the product. marketing activities
Increase of sales. Few competitors and high price
Growth

Rise of Sales Price fall

 Increase of profit for the firm and product distribution is expanded
industry
Maturity

Sales are still increasing

Sales curve reaches its peak while profit begin to fall
Decline

Sales curve falls Elimination of product from the

Flat/ horizontal profit curve market
Decline numbers of competitors

THE NEEDS OF COMMUNITY

Ultimate objective of business is profit

Entrepreneurs have to explore the economic and social conditions prevailing in the
community
Entrepreneurs can exploit the insatiable nature of human beings
Business opportunity exist as long as there is improvement in human satisfaction in terms
of price, quality and service
Identify the needs of the people in the community and then maximize the satisfaction of
such needs
A simple market research maybe used in identifying the needs of a community, the
competitors and existing resources

MARKET RESEARCH

Market Research

Best way to evaluate business opportunities

Process of systematically gathering, recording and evaluating data regarding a specific
marketing problem.

STEPS IN MARKETING RESEARCH

1) Defining the problem 5) Analyzing the data

2) Making a preliminary 6) Reaching a conclusion or
investigation decision
3) Planning the research 7) Implementing and evaluating
4) Gathering the data decisions
USES OF MARKET RESEARCH

Profitable market Trends in consumer tasks and

Saleable products/ service preferences
Strengths and weaknesses of Better marketing strategy
competitors Proper business location
Available resources New market opportunities
Business Risks Realistic business objective

LOCATION OF THE BUSINESS

Location -a vital factor in the success of a business.

Prime Location -a great competitive advantage

FACTORS IN SELECTING BUSINESS LOCATION

Population Trend Environment

Income Trends Electricity
Consumers Characteristics Water Supply
Retail Sales Trend Communication Facility
Competition Peace and order
Transportation Facilities Fire Protection
Government Policies Parking Space