ENTREPRENEURSHIP  manager

 freelancer (working online)

HISTORY OF ENTREPRENEURSHIP  franchiser
 The original entrepreneurs were traders and merchants.  family business owner
 Human trading came from Mesopotamia 6000 BC.
 Initially, they used trading of weapons, foods and spices. TYPES OF BUSINESS
1. Service business - provides intangible products
BARTER - the oldest system of trading; exchange of goods 2. Merchandising business - business buys at whole-
and services between two parties without any involvement sale price and sells at retail price; known as buy and
of cash sell business
3. Manufacturing business - buys products with the
ADVANTAGES DISADVANTAGES intention of using them in making a new product
No complications in selling Cannot detect the value of 4. Hybrid business - business that may be classified as
and buying (hassle free) commodities exchanged more than one type of business
No possible hoarding of ________________________________________________
commodities
Entrepreneurship – the process of using resources
RELEVANCE OF ENTREPRENEURSHIP effectively and transforming them into profitable venture.
 Business produced and distributes goods and services Market – a place usually in the open air where different
 Business creates job opportunities goods are bought and sold.
 Business provides income  To sell in an organized way and on a large scale.
 Business contributes to national well-being  The number of people who have the capacity to buy
the merchandise
ENTREPRENEURSHIP - process of offering something and Merchandise – the goods that are sold
assuming the risks and rewards (M.P. Peters) Economy – the system according to money, industry, and
trade are organized.
ENTREPRENEUR - a person that notice opportunities and Feasibility study – a plan of possible outcomes of a
take the initiative to mobilize resources and distributes the proposed project.
economic goods and services
Also, entrepreneurship is defined as:
ENTREPRENEURIAL COMPETENCIES The act to promote entrepreneurship in the country was
1. Interpersonal skills - can work well with people from also enacted under Republic Act 9501 where the
diverse backgrounds government recognizes the specific needs of entrepreneur
2. Strong initiative - entrepreneurs are often driven to and the need to promote entrepreneurship, supports
work hard entrepreneurs, and encourages and establishment of small
3. Ambition - entrepreneurs are motivated for the and medium enterprise [SME] in order to spur economic
success of being successful development.
4. Adaptability and flexibility - can adapt changes, Entrepreneurship is both an art and science of
creative and often develop solution to problems converting ideas into marketing goods and services to
5. Willingness to take risks - skilled in developing improve man’s quality of life.
alternative plans
6. Willingness to learn - willing to pursue opportunities Importance of Entrepreneurship
that allow him to acquire new skills 1. It generates /provides employment. > this offers
opportunity for unemployed citizens to land a job.
ENTREPRENEURIAL SKILLS 2. It helps in the economic growth of the country. >
 communication skills Developing small entrepreneurs can contribute greatly
 human-relation skills in the economic development of the country.
 mathematics skills 3. It eradicates poverty. > With more employment and a
 problem solving and decision-making skills better economic growth in the country, citizens will
 technical skills have a better standard in living.
 basic business skills 4. It improves our social images across the country. >
Good entrepreneurship image makes the country a
JOB OPPORTUNITIES better picture to other countries.
 sales representatives
 call center agent (inbound/outbound)
 Role of the Government in Entrepreneurship
The government plays a very important role in
determining the success of a business. With the proper and
adequate assistance programs, the government can develop
a larger entrepreneurial economy.
1. Maintain peace and order
The government sees and assures peace in all region
to prevent rebellions that would shatter the flow of the
business.
2. Maintain political stability
Businesses are stabilized if there is no frequent
change in government policies.
3. Monitoring price stability
The government policies prevent the abrupt changing
of price because it will be difficult for investors to plan
costs of production and projects when prices are
fluctuating.
4. Taxes
The government makes tax programs based on the
ability to pay scheme since tax incentives encourage
entrepreneurs.
5. Infrastructure
Develop and improve roads, bridges,
transportations, and communications because these
contributes to the fast and convenient way of
transporting and delivering products to customers.
6. Provide Education and Training
Money, machine and materials are productive if the
entrepreneurs are educated and trained so that they will
enhance their skills and talents. Train entrepreneurs
properly for real development is people development.
7. Public Administrations
Simplify business requirements and place these
government offices in an accessible and permanent
location with efficient and courteous employees.
8. Production Technology
Technology and livelihood resource centers should
be accessible to the masses at a minimal price if not for
free for aspiring and practicing entrepreneurs.
9. Marketing Assistance
Encourage the poor to become entrepreneurs and
provide assistance in the form of promotions,
identification of buyers, and ways of reaching buyers.
10. Financial Assistance
Provide adequate and cheap credit facilities for the
aspiring entrepreneurs.
Good Qualities of Entrepreneur
1. Risk taker
2. Goal – Oriented
3. Persistent and hardworking
4. Full of energy
5. Open to criticism
6. Responsible
7. Confident and self- reliant
8. Knowledgeable
9. Human management ability
10. Innovative
11. Achievement – oriented
Tips in Becoming a Creative or Innovative Entrepreneur
1. Read the latest development in a variety of fields.
2. Join professional groups and associations.
3. Attend professional meetings and seminars.
4. Travel to new places.
5. Talk to people who express equal interest in the
object.
6. Inspect and read magazines, newspapers, and
journals for article related to the subjects.
7. Go multinational by surfing the internet for new
trends in the field about the subject.
8. Develop a good habit. A positive attitude will help.
9. Be a dreamer. Practice imagining through day
dreaming.
10. Put it to practice. Educate yourself by seeking advice
from the other people.
Some Filipino Successful Entrepreneurs
1. Henry Sy – SM
2. Tony Tan Caktiong – Jollibee
3. John Gokongwei Jr. – URC, Cebu Pacific
4. Socorro C. Ramos – National Bookstore
5. Cecilio Kwok Pedro – Proctor and Gamble, Phils. (now
Unilever and Colgate – Palmolive)
6. Mariano Que – Mercury Drug
7. Alfredo M. Yao – Zest-o
8. Corazon P. Ong – CDO Foodsphere
9. Gregorio G. Sanchez – Lacto Paft
10. George Yang – McDonald
11. Ben Chan – Bench
12. Jose Concepcion Jr. – chairman of RFM Corp.
13. Andrew Tan – Megaworld Properties
14. Lucio Tan – Airlines, Tobacco, Liquior, and Real Estate
15. Alfonso T. Yuchengco – RCBC, Chairman of Mapua
Institute
“Necessity is the mother of all inventions.”
Standards
 Entrepreneurship starts when you recognize that there
are saleable good and services based on the needs of
the people and available resources.

NEED
 Something people must have for survival or to strive for
a certain necessity.
 Lack or scarcity of these basic needs lends to malnutrition
and death.
WANT
 Simple anything that would satisfy a person’s desire
whether necessary or not.
DEMAND
 Refers to the level of desire or need in particular good or
service.
 A want becomes a demand when there is an increasing
number of people who wished to acquire the purchasing
power to buy it.
GOODS
 Refer to tangible materials in nature such as shoes, shirts
and food.
PRODUCTS
 These are produced to satisfy the needs and wants of
people. It may also refer in tangible materials such as
insurance policy, educational plan, and housing loans.
SERVICE BUSINESS
 In contrast to goods and products, deals with providing
labor and physical services to consumers instead of
offering them tangible or intangible goods.
 Examples are medical and dental check-up and surgery,
landscaping and architectural fitting, transportation,
household services like carpentry, plumbing, and interior
designing.
Feasibility Study - is a a plan of possible capabilities of a
project to be carried out. It will help the entrepreneur
identify the problems to be solved.
1. Market Feasibility determines the size, nature,
demand, supply, and price of the product to be sold.
2. Technical Feasibility analyses the manufacturing
process, machinery capacity, design, supplies,
quantity, labor requirements, operating cost, and
overhead cost of business.
3. Socio-Economic Feasibility is the study of the
characteristics of the individual or groups of
individual in the society as factor in the production,
distribution, and consumption of goods and
services.
4. Management Study is concerned with the staffing,
operating, supervisory, controlling a, and evaluating
the aspects of the business.
5. Evaluation of the project study determines the
significance of the project which is about to be put
or provide innovation to a previous product.
________________________________________________
MARKETING PLAN
 Business Plan - is a comprehensive paper that details the
situation analysis, objectives, strategies and tactics, and
how to monitor and control the enterprise.
 Value Proposition and Unique Selling Proposition - a
value proposition (VP) simply states why a customer
should buy a certain product or service.
TIPS ON HOW TO CREATE AN EFFECTIVE VALUE
PROPOSITION TO THE TARGET CUSTOMERS
1. Prepare a situation analysis that details the problems of
the customers.
2. Make your value proposition straight to the point, simple
and specific.
3. Highlight the value of your product/service so that
customers will easily get what benefits you can provide.
4. Adapt to the language of your market.
5. Add credibility-enhancing elements such as actual
testimonials from customers, partners and other
stakeholders, putting specific assurance elements and social
acceptability metrics found in social media or press material.
6. Differentiate your value proposition with your
competitors.
TIP ON HOW TO CREATE AN EFFECTIVE UNIQUE SELLING
PROPOSITION TO TARGET CUSTOMERS
1. Identify and rank the uniqueness of the product/service
attribute.
2. Be very specific
3. KISS (keep it short and simple)
CUSTOMER REQUIREMENTS
• Customer requirements are specific features and
characteristics that the customers need from a product or
a service.
• They must know who buys, and what, when, where, how
and most importantly, why they buy.
• These requirements can be used to formulate the value
proposition and the unique selling proposition, as
addressing the requirements would increase the
competitive edge of the business
• Entrepreneurs must be vigilant with the customer change
in customer requirements.
TARGET MARKET
1. Primary Target Market
A primary target market is the segment of a
marketplace a business believes will give it the best
chance to sell. A primary target market may not be the
largest segment of a marketplace.
 2. Secondary Target Market
A secondary target market is also necessary to
spread out that capital expenditure and the risks as
well.
MARKET SEGMENTATION - is the process of dividing the
market of potential customers based on different
characteristics:
 scope of product (international or national)
 market demographics (age, gender, ethnic or
religion background, family life cycle, income,
marital status, education)
 spending habits (lifestyle, social class, activities and
interests, technologically driven)
BEHAVIORAL SEGMENTATION
• Behavioral segmentation is the process of grouping
the customers according to their actions.
• These behaviors are instigated by occasions, desired
benefits, loyalty and usage of products or availability
of services.
MARKET SIZE
• Market size is simply the size of arena where the
entrepreneur’s business will play.
• It is the approximation of the buyers and sellers in a
particular market.
METHODS OF STRATEGIC RESEARCH
1. To estimate the potential market
2. to eliminate the customers
3. to estimate the market share
________________________________________________
RELEVANCE OF ENTREPRENEURSHIP
1. Development of managerial capabilities
The greatest significance of entrepreneurship lies in
the fact that it helps in identifying and developing
managerial capabilities of entrepreneurs.
These managerial capabilities are used by
entrepreneurs in creating new technologies and
products in place of older technologies and products
resulting in higher performance.
2. Creation of organizations
Entrepreneurship results in the creation of
organizations when entrepreneurs assemble and
coordinate physical, human and financial resources
and direct them towards achievement of objectives
through managerial skills.
3. Improving standard of living
By creating productive organizations,
entrepreneurship helps in making a wide variety of
goods and services available to the society which
results into higher standard of living for the people.
4. Means of economic development
Entrepreneurship involves creation and use of
innovative ideas, maximization of output from given
resources, and development of managerial skills.
CONCEPTS OF ENTREPRENEURSHIP
The word “entrepreneur” was derived from the French
verb “enterprendre”, which means “to undertake”. This
refers to those who “undertake” the risk of new enterprises.
Entrepreneurship is a process of actions of an
entrepreneur who is always in search of something new to
exploit new ideas into gainful opportunities by accepting the
risk and uncertainty of the enterprise.
When describes activities within a firm or large
organization, it is referred to as intrapreneurship. This may
include corporate venturing, when large entities spin off
organizations.
Entrepreneurship employs what Schumpeter called the
“gale of creative destruction” to replace wholly or partly
inferior innovations across markets and industries. This
destruction simultaneously creates new products and new
business models.
Entrepreneurship ranges in scale from solo projects
(even involving the part- time entrepreneur) to major
undertakings that create many job opportunities.
FACTORS AFFECTING ENTREPRENEURSHIP
Entrepreneurship is a complex phenomenon which is
influenced by the interplay of a wide variety of factors that
include personality and environmental factors.
1. Personality factors - are entrepreneur core
competencies which include:
 Initiative – does things before being asked
 Proactive – identifies and utilizes opportunities
 Perseverance - works against all odds to overcome
obstacles and is never complacent with success
 Problem-solver – develops and maintain
relationship with customers and financiers,
conceives new ideas and introduces innovative
solutions
 Persuasion – convinces customers and financiers
to patronize the business.
 Self – confidence – makes decisions and sticks to
his decisions
 Self – critical – learns from his mistakes and from
experiences of others
 Planner – collects information, prepares a plan,
and monitors performance
 Risk- taker – is willing to take calculated risk
2. Environmental factors
 These factors relate to the conditions in which an
entrepreneur has to work.
 Entrepreneurial factors such as political, climate,
legal system, economic and social conditions and
 market situations, contribute significantly
towards the growth of entrepreneurship.
CORE COMPETENCIES IN ENTREPRENEURSHIP
1. Economic and dynamic activity
Entrepreneurship is an economic activity because
it involves the creation and operation of an enterprise
with a view to creating value or wealth by ensuring
optimum utilization of scarce resources. This value
creation activity is performed continuously in the midst
of uncertain business environment.
2. Innovation
Entrepreneurship is a continuous effort for synergy
to ensure optimization of performance in organizations.
3. Profit potential
Profit potential is the level of return or
compensation to the entrepreneur for taking on the risk
of developing an idea an actual business venture.
4. Risk bearing
An entrepreneur has to have patience to see his/her
efforts bear fruit. In the intervening period, time gap
between the conception and implementation of an idea
and its results, an entrepreneur has to assume risk. If an
entrepreneur does not have the willingness to assume
risk, he/she will never succeed.
FUNCTIONS OF AN ENTREPRENEUR
The following are important functions performed by an
entrepreneur:
1. Innovation
An entrepreneur is basically an innovator who
tries to develop new technology.
Ernest L. Cu transformed a simple data entry
service company into becoming one of the country’s
largest outsourcing service providers. The core
business sources of this company are mostly
contracts for generating projects, which involve
customer service relationships and IT services.
2. Assumption of Risk
A risk taker and not a risk shirker. The willingness
to take the risk allows an entrepreneur to take
initiatives in doing new things and marching ahead
in his/her efforts.
Corazon D. Ong is a dietitian by profession who
used her knowledge to create affordable processed
meat products that could compete with the already
well-known and established processed meat
brands. She founded CDO Foodsphere in 1975.
3. Research
An entrepreneur finalizes an idea only after
considering a variety of option, analyzing their
applicability, supplementing them with empirical
findings, and then choosing the best alternative.
Gregorio G. Sanchez Jr., is a civil engineer by
profession formerly engaged in civil construction
works. He went into research and performed
experiments using only pots and pans and a small
tank as his equipment. His persistence finally led to
the development, which he called “LactoPAFI
Probiotic Bacteria.”
4. Development of management skills
The work of an entrepreneur involves the use of
managerial skills which he/she develops while
planning, organizing, staffing, directing, controlling
and coordinating the activities of business.
Socorro Ramos’s hands – on approach in
negotiating with local and foreign publishers as well
as suppliers gave the bookstore its low purchasing
and low- selling power. National Book Store has
become an institution with 108 branches dispersed
throughout the country.
5. Overcoming resistance to change
An entrepreneur paves the way for the
acceptance of his/her ideas by others. This is a
reflection of his/her will power, enthusiasm and
energy which helps him/her in overcoming the
society’s resistance to change.
Diosdado Banatao saw the opportunity of
setting – up his own company by designing chip sets.
He went on to build another company called Chhips
and Technologies, which created another chips set
for enhancing the so-called graphic adapter.
6. Catalyst of economic development
An entrepreneur plays an important role in
accelerating the pace of economic development of
a country by discovering new uses of available
resources and maximizing their utilization.
Mercury Drug created a reputation that every
Filipino household could rely on, and there was a
store in nearly every town and city across the
country. There are about 700 Mercury Drug stores,
some of which are under franchise. All these fulfilled
Mariano Que’s goal of making safe medication
available and accessible to every Filipino
community.
TYPES OF ENTREPRENEURS
1. Innovative Entrepreneurs
These entrepreneurs have the ability to think
newer, better, and more economical ideas of
business organization and management. They are
the business leaders and contributors to the
economic development of a country.
Inventions like the introduction of a small car
“Nano” by Ratan Tata, organized retailing by Kishore
Biyani, and making mobile phones available to the
common man by Anil Ambani are the works of
innovative entrepreneurs.
2. Imitating Entrepreneurs
They imitate innovative entrepreneurs because
the environment in which they operate is such that
it does not permit them to have creative and
innovative ideas on their own.
3. Fabian Entrepreneurs
These types of entrepreneurs are skeptical
about the changes to be made in the organization.
They do not initiate any inventions but follow only
after they are satisfied with its success rate.
4. Drone entrepreneurs
Drone is “a person who lives on the labor of
others”. Drone entrepreneurs are die – hard
conservatives even ready to suffer the loss of
business.
5. Social Entrepreneurs
Social entrepreneurs drive social innovation
and transformation in various fields including
education, health, human rights, workers’ rights,
environment and enterprise development.
Cecilio Pedro developed multi-flavored
toothpastes for children that came brightly
packaged in tubes and boxes adorned with “Sesame
Street” characters. Today, the market for the
budget-friendly toothpaste brands has expanded to
neighboring countries like China, Vietnam, and
Indonesia.