 Entrepreneurship activities can be incremental or disruptive innovations are a number of

ENTREPRENEURSHIP small charges that transform process flows while disruptive innovations are entirely new
approaches.
Introduction
FACTORS AFFECTING ENTREPRENEURSHIP
Entrepreneurial activities today have become very important and are keys to economic development. Entrepreneurship is a complex phenomenon which is influenced by the interplay of a
Growth industrial, including employment generation, depend upon entrepreneurial behavior of a country. wide variety of factors that include personality and environmental factors.
 Entrepreneurs are the reason for a large quantity of highly developed industries which is result to
greater employment opportunities for unemployment youth. 1. Personal factors
Personal factors, are an entrepreneur core competencies which include:
Relevance of Entrepreneurship to an Organization a) initiative- does things before being asked
1. Lies in the fact that it helps in identifying and developing managerial capabilities of entrepreneurs b) proactive-identifies and utilizes opportunities
 Entrepreneur studies a problem, identifies its alternatives, compares the alternatives in terms of c) Perseverance works against all odds to overcome obstacles and its never complacent
cost and benefit implications and finally the best alternative. with success.
2. Creation of Organizations d) Problem-solver- develops and maintain relationships with customers and financers;
 Results in creation of organization when entrepreneurs assemble and coordinate physical, human conceives new ideas and introduces innovate solutions
and financial resources and direct them towards achievement of objectives through managerial e) Persuasion- convinces customers and financiers to patronize his business
skills. f) Self-confidence- makes decisions and sticks to is decisions
3. Improving of standard of living g) Self-critical- learns from his mistakes and from experiences of others
 By creating productive organizations, entrepreneurship helps in making a wide variety of goods h) A planner- collects information, prepares a plan, and monitors performance.
and services available to the society which results into higher standard of living for the people. i) Risk-taker is - willing to take calculated.
 Profession of luxury cars, computers, mobile phones, rapid growth of shopping malls, etc. point
to the rising standard of people. All these are due to the efforts of entrepreneurs. 2. Environmental factors
4. Means of economic development These factors relate to the conditions in which an entrepreneur has to work. Environmental
 Entrepreneurship involves creation and use of innovative ideas, maximization of output from factors such as political climate, legal system, economic and social conditions and market
given resources and development of managerial skills factors are essential to the economic situations, contribute significantly towards the growth of entrepreneurship.
development of a country Ex. political stability in a country is absolutely essential for smooth economic activity.

CONCEPT OF ENTREPRENEUSHIP CORE COMPETENCIES IN ENTREPRENEURSHIP

 Entrepreneur- derived from the French verb “enterprendre” which means “to undertake” 1. Economic and dynamic activity.
 An enterprise is created by entrepreneur the process of its creation is called  Entrepreneurship is an economic activity because it involves the creation of an enterprise with a
entrepreneurship. view to creating value or wealth by ensuring optimum utilization of scares resources. This value
 A process of action of entrepreneur who is always in search something new to exploit new creation activity is performed continuously in the midst of certain business environment.
ideas into gainful opportunities by accepting the risk and uncertainly of the enterprise. 2. INNOVATION
 Entrepreneurs are innovators, willing to take risk and generate new ideas to create unique and  Entrepreneurship involve a continuous search for new ideas. It compels an individual to
potentially profitable solutions to modern-day problems. Entrepreneurship is not so much a continuously evaluate the existing models of business operations so that more efficient and
skill as a habitual state of mind. effective systems can be evolved and adopted.
 Intrapreneurship- activities within a firm or large organization.  It is continuous effort for synergy to ensure optimization of performance in organizations
3. Profit potential
 Entrepreneurship employs what Schumpeter called “gale of creative destruction” to replace
wholly or partly inferior innovations across markets and industries. The destruction  Profit potential is the level of return of return or compensation to the entrepreneur for taking on
simultaneously creates new products and business models. the risk of developing an idea into an actual business venture. Without profit potential, the efforts
of entrepreneurs will be merely an abstract and a theoretical leisure activity.
4. Risk bearing

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  The essence of entrepreneurship is the willingness to assume risk arising from the creation and New innovations are generally opposed by people because they make them change their existing
implementation of new ideas . new ideas are always tentative and their results may not behaviour patterns. An entrepreneur always first tries new ideas at his her level. It is only after the
instantaneous and positive. successful implementation of these ideas that an entrepreneur makes these ideas available to others for
their benefit.
FUNCTIONS OF AN ENTREPRENEUR  Diosdado Banatao saw the opportunity of setting-up his own company by designing chip sets. In
1. INNOVATION no time, he was able to raise $500,000 as seed capital to put up Monstroni in 1985. His company
An entrepreneur is innovation who tries to develop new technology, products and markets. innovation may determination paid off after they successfully personal computers that were more powerful. He
involve doing new things or doing existing things differently. An entrepreneur uses his, her creative then went on-to build another company called chips and Technologies, which created another set
facilities to do new things and exploits opportunities in the market. He/she does not believe in status quo for enhancing the so-called graphic adapter.
and always in search of charge. 6. Catalyst of economic development
 Emest L. Cu transformed a simple data entry service company into becoming one of the country’s An entrepreneur plays an important role in accelerating the pace of economic development of a country by
largest outsourcing service providers. The core business sources of this company are mostly discovering new uses of available resources and maximizing their utilization.
contracts for generating projects, which involve customer service relationships and IT services.  Mercury drug created a reputation that every filipino household could rely on and there was a store
2. Assumption of risk in nearly every town and city across the country. There are about 700 mercury drug stores, some of
An entrepreneur by definition is a risk taker and not a risk shirker. He/she is always prepared for which are under franchise. All these fulfilled Mariano Que’s goal making safe medication
assuming losses that may arise on account of new ideas and projects undertaken by him/her. This available and accessible to every Filipino Community
willingness to take risks allows an entrepreneur to take initiatives in doing new things and
marching ahead in his/her efforts.
 Corazon D. Ong is a definition who used her knowledge to creative affordable processed meat
products that could compete with the already well known and established processed meat brands, Types of Entrepreneurs
initially. It was only a hobby where she could put to good use her creativity and skill in culinary arts.
She came up with corn beef, hotdogs, meatloaf, hamburger patties and ham an entity that she later 1. Innovative entrepreneurs have the ability to think newer, better and more economical ideas of business
sold as a home business. organization and management. They are the business leaders and contributors to the economic
3. Research development of a country.
An entrepreneur is a practical dreamer and does a lot of ground-work before taking a leap in Inventions take the introduction of a small car “Nano” by Ratan tala, organized retailing by
his/her venture. In other words, an entrepreneur finalizes an idea only after considering a Kishore Biyani and making mobile phones available to the common man by Anil Ambani are the works
variety of options, analysing their strengths and weakness by applying a variety of options, innovative entrepreneurs.
analyzing their applicability, supplementing them with empirical findings and then choosing
the best alternative. It is then that application of research methodology by an entrepreneur. 2. Imitating Entrepreneurs
 Gregorio G. Sanchez, Jr. is a civil engineer by profession formerly engaged in civil construction These entrepreneurs are people who follow the path shown by innovative entrepreneurs. They imitate
works. He went into research and performed experiments using only pots and pans and small tank innovative entrepreneurs because the environment in which they operate is such that it does not permit
as his equipment. His persistence finally led to the development of a food supplement that would them to have creative and innovative ideas on their own.
smoother the bad bacteria in livestock, which he called “LactoPAF probiotic Bacteria .”
4. Development of management skills Such entrepreneurs are found in countries and situations marked with weak industrial and institutional
The work of an entrepreneur involves the use of managerial skills which he/she develops while planning, base which create difficulties in initiating ideas.
organizing, staffing, directing controlling and coordinating the activities of business. His/her managerial
skills get further strengthened when he/she engages himself/herself in establishing equilibrium between In the Philippines, a large number of such entrepreneurs are found in every field of business activity and
his/her organization and its environment. they full fill their need for achievement imitating the ideas introduced by innovative entrepreneurs.
Soccorro Ramos hands-on approach in negotiating with local and foreign publishers as well as Development of small shopping complex as is the work of imitating entrepreneurs.
suppliers gave the bookstore its low purchasing and low-selling power. She became acquainted
with writers, book lovers and other personalities who could provide her with information about the 3. Fabian entrepreneurs
changing times. After several decades, national Book Store has become an institution with 108 These types of entrepreneurs are sceptical about the changes to be made in the organization. They do not
branches dispersed throughout the country initiate any inventions but follow only after they are satisfied with its success rate. They wait for some
5. Overcoming resistance to change time before the innovation becomes well tested by others and do not result in a huge loss due to its failure.
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 This refers to the manufacturing aspects of the product. It includes of what the product is how they will be
4. Drone Entrepreneurs produced/raised using proposed location, production, raw materials and manpower requirements, as well
 Is “a person who lives on the labor of others”. as the detailed civil engineering and lay outing of the project as applicable. It also present the project
 Are those individuals who are satisfied with the existing mode and speed of business activity and show utilities, wastes and wastes management methods and the production system documentation and forms.
no inclination in gaining market leadership.
 Are entrepreneurs are die –hard conservatives even ready to suffer the loss of business. 5. Financial feasibility-
It enables the entrepreneur to know how much capitalization will be needed to finance the project and
Preparing Business Plan who will be the project’s financier’s. It determines the most adaptable financing scheme in terms of the
financiers term and conditions repayment.
Definition of Business Plan It identifies the financial soundness of the business plan with presentation of some assumptions to the
 Is a format of a set of business goals the reasons why they are believed attainable and plan financial analysis including ratios, break even points, sensitivity analysis, project rate of return and
reacting those goals. It may also contain background information about the organization or learn payback period to prove the financial feasibility of the project.
attempting to reach those goals.
Focus of Business Plan 6. socio-economic feasibility
Extremely focused plans target goals that are important to external stakeholders, particularly. This viewing the project’s feasibility only from the point of view or from the standpoint of the projects
They may cover the development of a new product, a new service, a new IT system, a restructuring of proponents/investors. This part presents the project’s feasibility as to how will be beneficial to other
finance, or the refurnishing of a factory people and entities.

Categories of business plan

1. Business Plan for Profit- typically focuses on financial goals. 7. Project implementation and time-table.
2. marketing Plan- targets changes in perception and branding as its primary goals. These include the details of all activities to be considered during the project’s pre-investment and pre-
3. Project plan- Describes the goals of particular project operating phase and also the timetable of each activity. Sometimes, this is included in the management and
4. Business plan- for non-profit and government agency –tends to focus on service goals. Personnel Feasibility to distinguish pre-operating from normal operating activities.
5. operational Plans- describe the goals of an internal organization, working group or department. Although there is no fixed way of writing a business plan, the introduction provides a positive overview of
the entire study. It includes the mission statement which ans. The following questions.
Contents of Business Plans  Who is the customer?
 What do they need?
A business plan has the following parts.  What’s in it for the customer?
1. executive summary – it guides proponents or inventors on the overall feasibility of the proposed  How does the company satisfy its stakeholders?
project at a glance. It summarizes the major highlights and findings of each major aspect of the study. The A description of the product or service must be stated in the production as well as the market, the
conclusion of the study of its focal point. company, anticipated sales and profits summarized from the income statement and required financing.

2. Project background and history How to Develop Your Unique Selling

It narrates the project conceptualization, and details the events that led to the study. It also presents the Proposition
project proponents, the proposed name of the project, the type of business proposal/project and the project
location. What is a Unique Selling Proposition (or USP)?

3. Management and personnel Feasibility. It’s a one to two sentence phrase that lets your customers know why they should buy your product
It pinpoints the project’s general to specific market feasibility topics. It presents the market and analysis of over your competitor’s products.
past, present and future demand and supply situations for the particular product(s). if the conditions
presented are feasible, the a look at the marketing practices of your competitors will be studied. Why should your customers buy from you and not someone else?

4. Product feasibility You need a good reason; otherwise, your lack of one will indicate that you are merely jumping
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 around shouting out “buy mine”, “buy mine” just Market Research- the planning, collection and analysis of data relevant to marketing decision making
like virtually everyone else out there (no wonder and the communication of the results of this analysis to management.
very few businesses ever make it to their 5th
year). Why it should be done?
1. to improve the quality of decision making
Here are 6 different sample “spins” you can put on your product or service that can help lead to your 2. trace problems
Unique Selling Proposition… 3. focus on keeping existing customers
4. understand changes in market place.
1. Do you want to be known for value? 10 methods in identifying customer needs
2. How about selection? 1. analysing with existing data
3. What about quality? - it is easier to collect and analyze the existing data, review past surveys, customer interviews and
4. For speed of service? customer call log, this process does not need more funding if the data is already collected
5. For a no-risk purchase? 2. interviewing stakeholders
6. For a lifetime warranty? - when you don’t have existing data start with the sales and support teams, they know the product
and the customers, they also have list of feature request bug reports and enhancement straight from the
Target Market customers mouth.
 -A specific group of consumers at 3. mapping the customer process
which a company aims its products 4. mapping the customer journey
and services 5. conducting follow me research
 Focusing on a target market makes -it literally means following the customers from work to home, you follow the customer to her
it easier to develop products work place, spending the day to watching to do her job, observe process pain joints and then look for
people want opportunities for improvement, this step took time to and sometimes led to frustrations.

Three basic reasons why people buy things 6. interviewing customers

1. To satisfy basic needs -go directly to the source and ask customers about what problems they have and what feature they
2. To solve problems want, even customers can’t articulate their needs clearly, you can often gain insights that lead to successful
3. To make themselves feel good innovation
7. conducting voice of customer surveys
- this survey collect data from email or from a pop-up on a website, about the attitudes and
How to determine target market? expectations of existing or prospective customers. Use a mix of open and closed ended questions to
produce the most useful data, this yield to identify customers goals, challenges, problems and attitudes and
Creating the target market may require the use of limited product roll-outs and focus groups, allowing recommend for improvement.
product managers to get a feel for which aspects of the product are the strongest 8. analysing the competition
- consider using firms that might present a more objective face to customers who engage with
Roll Out your organization and its competition, consider using the swot rule; identify your competitor’s strengths,
- The process of introducing a new product or service into the marketplace weakness, opportunities and threats., don’t look at your competition in the same industry, but other
industries as well.
Focus Group 9. analysing the cause and effects
- A small group selected from a wider population and sampled, as by open discussion, for its members' - not only positive thinking, negative thinking can also solve problems more effectively., through
opinions about or emotional response to a particular subject or area, used especially in market research or observations, surveys and other data sources you can find the symptoms for the root cause problems.
political analysis 10. recording feedback from customers.
- ask participants to record problems, frustrations, positive experiences or thoughts at intervals
MARKET RESEARCH AND IDENTIFYING CUSTOMER NEEDS throughout a day, week or even a year, this can be low tech, with customers writing their experiences and

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thoughts down on paper and mailing it in, or high tech in which you can send text messages or emailed • the second P in the formula
surveys at particular intervals. • Business products- are those bought and used by companies or organizations for their operations
or creation of their own consumer products. Ex. Equipment, raw materials and industrial services
like repair.
• Sometimes there is a need to lower the prices. At other times, it may be appropriate to raise the
Marketing strategies prices.
Marketing mix – combination of factors that can be controlled by a company to influence
consumers to purchase its products. • Many companies have found that the profitability of certain products or services doesn’t justify
• A start up or company’s strategy combines all of its marketing goals into one comprehensive the amount of effort and resources that go into producing them.
plan. • By raising their prices, they may lose a percentage of the customers, but the remaining
• A good marketing strategy should be drawn from market research on how to focus on the product percentage generates a profit on every sale. Could dis appropriate.
mix in order to achieve maximum profit and sustain the business. The marketing strategy is the • Sometimes there is a need to change the terms and condition of the sale, by spreading price over a
foundation of a marketing plan. series of months or years, it can sell far more than today, and the interest one can charge will
The following questions will help in formulating the marketing strategies; more than make up for delay in cash receipts.
1. Who is producing similar products? • Products and services can be combined together with special offers and promotions. Sometimes it
2. Where are the competitors located? can include free additional items that cost very little to produce but make the prices appear far
3. What is the quality and price of their products? more attractive to customers.
4. What can I do to make a new product that is better than those of the competitors? • In business , an experience of resistance or frustration in any part of the sales or marketing plan,
5. Why should customers or consumers want to change to new product? gives the entrepreneur an opening to revisit the area. Be open to the possibility that current
6. What offers or incentives do competitors give to retailers? pricing structure is not ideal for the current market. Be open to the need to revise the prices, if
7. What are competitors likely do if a new product is introduced? necessary, to remain competitive, to survive and thrive in a fast-changing market place.
The 7 Ps in Business Opportunity Promotion
Product • The third habit in marketing and sales is to think in terms of promotion all the time. Promotion
• Refers to a tangible item that can be acquired and satisfies a need or want in exchange of money includes all the ways to tell customers about the products or services and how to market and to
or something else of value. sell
• Service- in an intangible commodity that addresses a need or want, it may consist of activities, • Small changes in the way the product is promoted and sold will lead to dramatic changes in the
benefits or satisfaction that does not result in material ownership. results. Even the small changes in the advertising can lad immediately to higher sales.
example : massages, manicure and • Large and small companies in every industry continually experiment different ways of
pedicure and medical check-ups. advertising, promoting, and selling the products and services.
Three levels: Promotional elements:
The core- (or core benefit) represents the main purpose of the products or the main reason for buying it. • Advertising – this involves the placement of announcements and persuasive messages in time or
the actual product - pertains to the features, design, brand name and even the packaging. spaced purchased from the mass media by business firms.
and augment product – refers to the additional services provided when you buy the actual product, • Personal selling- this is a type of selling that involves face-to face interaction with customers.
Types of consumer product: • Public relations- this is a form of communication management that seeks to make use of
• Product maybe categorized according to the types of users. publicity and other non-paid forms of promotion and information to influence people's feelings or
• Consumer products- are those used by an end user, belief about the company.
• Can be further categorized into convenience products, shopping, products, specialty products • Sales promotion- these are marketing pressure applied for a limited period of time to stimulate
and unsought products. trial, increase consumer demand, or improve product availability.
Example: a bike may be a shopping product for you but it may be a specialty product for your • Direct marketing- has evolved toward direct digital marketing that provides relevant marketing
friend is a bike enthusiast. communications address to specific individual.
•Business products- are those bought and used by companies or organizations for their Place
operations or creation of their own consumer products. Ex. Equipment, raw materials and • The fourth P in the marketing, where the product or service is actually sold.
industrial services like repair.
Price
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 • Develop a habit of reviewing and reflecting upon the exact location where the customers meet
the salesperson.
• Sometimes change in place can rapid increase in sales.
• Sell the product in many different places, some companies use direct selling, sending salespeople
out to personally meet and talk with the prospects, by telemarketing, catalogs or mail order, some
sell at trade shows or in retail establishments, some companies use manufacturer representative or
distributors
Packaging
• The fifth element in marketing mix
• Develop the habit of standing back and looking at every visual element in the packaging of the
product or service through the eyes of a critical prospect
• Remember, customers form the first impression within the first 30 seconds of seeing the product
• Small improvement in the packaging or external appearance of the product or service can often
lead to completely different reactions from customers
• Think in terms of everything that the customer sees from the first moment of contact with the
company all the way through the purchasing process.
• Packaging refers to the way the product or service appears from the outside. Packaging also refers
to the people and how it is dressed and groomed.
• It refers to the offices, the waiting rooms, the brochures, the correspondence and every single
visual element about the company. Everything counts.
• Every sales person was required to look like a professional in every respect. Every element of
their clothing-including dark suits, dark ties, white shirts, conservative hairstyles, shined shoes,
clean fingernails and every other feature gave off the message of professionalism and
competence.
Positioning
• develops the habit of thinking continually about how products are positioned in the hearts and
minds of your customers.
• How do customers think and talk about the products even if it is not present.
• How do customers think and talk about the company.
• What positioning does it have in the market, in terms of the specific words people use when it is
described and offered to others.
• Attribution theory says that most customers think of the products in terms of single attribute
either” negative or positive
People
• The final P in marketing mix
• Develop the habit of thinking in terms of the people inside and outside of the business who are
responsible for every element of the sales, marketing strategies and activities.
• Entrepreneurs and business people will work extremely hard to think through every element of
the marketing strategy and marketing mix and then pay little attention to the fact that every single
decision and policy has to be carried out by a specific person, in a specific way.
• The ability to select, recruit, hire and retain the proper people, with the skills and abilities to do
the needed job to have done, is more important than everything else put together.

Techniques on seeking, screening, and seizing opportunities (to follow)