L1 - Entrepreneurship

Entrepreneurship  Specific Goal Setting

• Is a science of converting processed ideas into a • Should be motivated to set goals,
remarkable business venture. particularly business growth objectives.
• Goals that are SMART.
Concept of Entrepreneurship • Specific, Measurable, Attainable, Realistic,
and Time-bound
1. Entrepreneur
• Person  Self-Efficacy
• Derived from the French root word • Believe in their own ability or self-
“entreprendre”, meaning to begin something and confidence.
undertake. • Will persevere even in the face of
• A person that is responsible for setting up a feedbacks, will take negative feedback
business or an enterprise. more positively and use feedback to
improve their performance.
2. Entrepreneurship
• Process of action  Need for Achievement
• The process of developing, organizing, and • Must have a high need for achievement
running a new business to generate profit while take responsibility for outcomes.
taking on financial risk.
 Layers of Competency
3. Enterprise • Universal competencies occupying the
• Object bottom portion of the pyramid.
• A business or company. • Specific competencies located near to the
• Project that is especially difficult, complicated or top.
risky.

Importance of Entrepreneurship in Education

 Entrepreneurship as a key driver to our economy

• It focuses in wealth and high majority of jobs
created by small business started by
entrepreneurially minded individuals.

 Entrepreneurship is a lifelong learning process

• It started as early as elementary school and
progressed through all levels of education.
• Students discover and develop opportunities and
take advantage of these.

 Entrepreneurship will energize school management

• School in the area of entrepreneurship must be
accessible, affordable, and accountable of
producing successful students

 Entrepreneurship will transform learners to be

innovators
• Learners must be equipped with perseverance  Ambition
and determination of an entrepreneurial mindset. • Must be motivated, persistent and
• They must take ownership of their own success. persevere even in the face of situational
challenges.
Entrepreneurial Competencies • Learners embrace new challenges while
achieving to exceed set expectations and
► Competencies standards.
• The capability, capacity, and ability of the learners
in handling situation in various areas in business  Willingness to Learn
operation. • Strong willingness to learn to acquire new
• Capacity for innovation, investment, and skills and competencies.
expansion in new market, product and techniques • Initiate personal career development.
(Fajardo, 2009).
 Strong Initiative
 Locus of Control • High initiative that driven to work hard.
• Determine the state to which a person • They frequently work independently to
agreed that their actions can directly affect achieve task master, regardless of the
a situation or that they can control a result. extra effort necessary to do so.

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  Adaptability and Flexibility 7. Computer Competency
• Must learn how to be a highly flexible and • Must be competent in the use of basic
adaptable often deal very well with a unique computer hardware and software.
ability to choose actions even without all
necessary information. 8. Workplace Competencies
• Entrepreneurs are innovative and creative, • The application of knowledge, skills, attitudes,
often developing novel solutions to values, and behaviors in the workplace.
complicated problems. • Many successful entrepreneurs place great
value on their industry experiences prior to
 Willingness to Take Risks launching their own venture, as workplace
• Not only are successful learners willing to competencies.
take consequences, they can also identify
and calculate risk. 9. High Growth, High Value Entrepreneurship
• Entrepreneurs take evaluated risks and learn • Entrepreneurs typically offer incentive
from past failures. compensations, manage business operations,
build a strong entrepreneurial culture around
 Interpersonal Skills determination and high work ethic, and form
• There are very insightful with regards to the effective boards of directors and advisors.
behavior of others-understanding motives
and actions, quickly aware of strong 10. Innovation & Creation
relationships, and both verbal and non- • Apply their creativity to the formulation of
verbal behaviors. inventive systems and products.
• They have strong interpersonal skills have • They have an "opportunity orientation"-
the skill of working well with people from assessing changes in trends, identifying small
different backgrounds. niche or group of markets, and seeking out
opportunities to improve services and products.
Industry Wide Competencies Work Competencies
11. Marketing
1. Networking/ Collaboration/ Interpersonal • Competent in both executing strategies that
Relationship promote their products and establish client/
• Ability to build professional relationship. customer relationships.
• Perceived as trustworthy. • They conduct market analysis, set pricing
• Can negotiate with competitors, & identify objects and customer objections into sales
mutual goals. acceptance.

2. Creative/ Critical Thinking 12. Business Operations

• Easily identifying what is missing from current • Entrepreneurs perform business operations
product streams and have imagination, creativity that are able to both carry out daily operations,
and empathy. such as scheduling manpower and maintaining
• Can analyze problems and creative innovation inventories of goods and management human
solutions. capabilities.

3. Organizing 13. Risk Assessment & Management

• Plan and prioritize work to ensure time is • Can handle risk management and can take into
managed effectively. account legal actions
• When goals are not met, they tale necessary • Stay informed of business law and regulations,
steps to get projects back-on track and bond to determine ways to prevent
themselves against failure.
4. Checking, Examining & Recording
• Ability to maintain confidential records, easily 14. Financial Management
locate and complete appropriate forms and • Competent at accounting and funds
paperwork, detect errors and make necessary management managing cash flows and
corrections. preparing estimated and projected balance
sheets.
5. Planning
• Must be specific about the direction of their 15. Problem Solving and Decision Making
venture and the strategy they will adopt. • They can generate, evaluate, and implement
solutions to difficult problems.
6. Business Principles • They locate and utilize relevant information,
• Must understand the basic principles of business and when necessary, generate alternative
• Market knowledge, economic principles and solutions.
ethical practices.

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 L2 - Business Plan

Business Plan b. Terms of Lease Agreement

• Business plan does not guarantee the result you want • The term lease must be studied carefully as
to accomplish but it's still a step closer to making things some owners of space might taken
work in advantage. advantage of lessee.
• Lease agreement is a legally building
Factors to Consider of a New Entrepreneur contract between a landlord and tenant.

1. Know your product or service c. Types of Goods or Merchandise

• You must believe on the product or service that • They need quick and easy access to the
you will offer to your customer. store and would not spend a lot of time to
• Unique product that would satisfy customers' purchase their goods.
need and wants.
• Customers want to try new products, but it must d. Income Level of Prospective Customer
be better that those existing in the market. • A good barber shop or a beauty salon with
facilities of air conditioning units and other
2. Analyze the Market Potentials amenities need to be located in the
• The wider the market potential, the more community with hinger income bracket.
chances of growth and success.
• Entrepreneur must know his needs and wants e. Municipal or City Ordinances including taxes
and figure out how to satisfy these needs. and fees
• Analyze customers' profile as to their buying • The location must not violate city or
habits, their income, and social status. municipal ordinances and the taxes and
fees must reasonable for the owners of
3. Determine the Marketing Strategy business.
• A unique product or service needs effective
distribution strategy to get customer into the f. Location of the Area
basket of demand potential. • The are must be free from floods and other
• Customers must have access to the product calamities that will endanger the business.
when they need it.
2. Location for Small Industrial Plant or Manufacturing
4. Know the Competitors Facilities
• Know their strength and weaknesses. • Environmental factors in locating a
• Develop new product and marketing strategy and manufacturing plant or industrial facilities need
turn their weakness as new opportunity for your to be studied carefully as plant location is a great
product. factor in the investment of funds and its
• Continuous innovation and research would mean profitability in the long run.
better quality products or service.
➢ The following are important factors to consider:
5. Do not set on your Laurels
• Laurels means to feel comfortable because you a. Land Area
have been successful in the past. • The contour of the land, its size, and shape
• Landscape of business is continuously changing. must be suitable to the plant site
• Your initial success in your business activities
needs more proactive analysis for expansion b. Facilities for Expansion
growth and overcome possible competitions. • The land area must have ample space for
• Develop advertising and promotion strategy to plant expansion and provisions for parking
penetrate the wider market. facilities for customers and employees.
• Develop budget for expansion and diversification
either horizontally or vertically. c. Power and Utilities
• Availability of power supply and the cost of
Environmental Scanning electricity involve in the operation are
great factors in the production of goods
1. Business Location for Small Entrepreneurs
• A retail outlet would need a site that is d. Building and Other Utilities
convenient to prospective customers in terms of • The building must be within the restriction
parking space or an availability of transportation. code of the municipality or city.
• The utilities like canteen and other
➢ In choosing the location, the following factors must be employees' facilities must be put in place in
looked into by the entrepreneur: compliance with the labor code.

a. Rent and Space e. Plant Site Accessibility

• The cost of rent is a regular monthly • The plant site must be accessible to public
expenses and it must be sustained with the or service transport for its employees and
possible income that will be generated. valued customers.

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SWOT (Strength, Weakness, Opportunities, and Threats) c. Product Cost
• Production cost is the price
• SWOT Analysis is the opportunities carries with it some determinants.
risk involved and this should be look into carefully. • Entrepreneur cannot make
• The strength and weaknesses are internal factors to maximum profitability on products
the entrepreneur while the opportunities and threats whose production cost cannot
are external factors. survive market competitions.

➢ The product must be evaluated along the following d. Supply and Demand
areas: • Intermittent supply to the market
will make customers shift to other
1. Product Strength in the Market must have the products.
following: • The supply chain management must
be put in place to make the products
a. Availability Technology in Product available to valued customers.
Processing
• Technology is an important e. Weak Production Management
component in producing the product • Weak management is created when
as the economies of scale people at the top of the organization
determines the price index. fail to sustain a vigorous effort for
expansion and growth when
b. The source of Raw Materials must be management sets on his initial
Abundant and at Lower Price laurels and ventured on vices and
• The constant supply of raw materials other extra activities that will lose
is an important factors in the his total investment.
production of the product.
3. Sustainable Product Opportunities in the
c. Skilled Workers must be Available Market :
• Technology must have component of
skilled workers that shall operate the a. Product Demand
machineries and other equipment • Product demand is the greatest
but starting with small capital should opportunity of the entrepreneur.
generate profitable operation. • Demand is the essence of profit and
this must be sustained by the
d. Capital Investment in Machinery and entrepreneur before wide
Operating Expenditures competition appeared in the
• A starting venture may have little marketplace.
investment in terms of machinery
and equipment but starting with b. Presence of Poor Quality in the Market
small capital should generate • The presence of poor quality
profitable operation. product in the market place is an
opportunity for the entrepreneur.
e. Expertise and Technical Skills of the
Management Team c. Government Policies and Support
• A good product is the making of a • The government support to local
well-conceived ideas of the entrepreneur is an opportunity for
management team. greater expansion.
• The government should support the
2. Characteristics of Weak Products and Weak local entrepreneur in terms of taxes
Management: and government incentives.

a. Poor quality and High price d. Liberal Credit Terms and Interest Rates
• The entrepreneur should not launch • Liberal credit terms by banks and
a poor product in the market as it other government institution will
will surely fail to advance in the sales generate expansion for local
and profit. entrepreneur.
• Banks and financing institutions
b. Product design and appeal serve as conduit of business in their
• Product design should appeal with expansion program.
no technical make maximum
profitability on products whose 4. Threats to product Profitability and Market
production cost cannot survive. Expansions:

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 a. Entrance Competition b. Demand Analysis
• The entrance of many competitors in 1. Projected consumption in the first year of
the marketplace will give problem to operation, then five years, and ten years'
the entrepreneur. operation.
• Competition will reduce profitability 2. Major segment users of the product and
as the price has to be competitive with their location.
those in the marketplace
c. Supply Analysis
b. The Supply of raw materials 1. Source of Product Supply
• Will be limited as other competitors 2. Foreign Suppliers
will be getting the same supplier. 3. Local Suppliers
• Increased production cost means 4. Factors Analysis of the Past and Future
changes in product price. Supply Chain

c. The Emergence of Leftwing Labor Unions d. Competitive Analysis

• Many companies close shops with the
advent of labor unions leftist 1. Selling Price
philosophy as they want more wages • This refer to the selling price of the
and benefits that the company could product.
not give.
2. Competitions
Business Plan • It refers to the competing product in
• Is a written description of your business' future, a the market as to its quality and
document that tells what you plan to do and how you market acceptability.
plan to do it.
3. Distribution and Cost of Transportation
General Format of a Comprehensive Business Plan • It refers to the transfer or
movements of products from the
I. Introduction producer to the ultimate user.
• It contains the rationale and the background of
the study undertaken. 4. Channel of product distributions
• It should include the importance of the project • This refers to the means of reaching
and the proponent's background and their desire the target market or it is the method
to establish the business. or strategy to penetrate a particular
market segment.
II. Project Summary
5. General Competitive Practice
a. Name of the firm • It is the analysis of how competitors
b. Business location distribute the product to existing end
c. Brief description of the Business users.
1. Brief history of how the business
organized. e. Program Analysis of Marketing Strategy
2. Highlights of the findings in every phase of
the business study. 1. Geographic Segmentation Strategy
• This refers to the place of target
III. Management & Personnel Components market and the approaches to
penetrate the market niche.
1. Legal Structure
2. Board of Directors 2. Psychographic Strategy
3. Company Departments • This refers to educational
4. Skills and Experience Requirements background and the lifestyle of target
5. Number of Employees market.
6. Management Members
7. Supporting Documents 3. Demographic Segmentation Strategy
• This refers to market as sex, age
IV. Marketing Studies income, and the other personal
factors of the target market.
a. Market Profile
• This refers to the market segmentation for 4. Pricing Strategy
the distribution of the product or service. • This has something to do with the
• The study must cover the possible users of price index of any pricing strategy
the product and how to reach the that will attract customers.
particular market segments.

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 5. Channel of Distribution VI. Financial Studies
• The choices could be retailers,
wholesalers, dealership, franchise, or 1. Total project cost
direct marketing. 2. Capital investment required
3. Pre-operation cash flow and its relation to
6. Promotion and Advertising timetable
• Media networking, personal selling, 4. Projected financial estimates
billboard, or any media penetrate 5. Supporting schedules in financial statements and
strategy. income

V. Production

a. Product specification
• It talks about the product or service that the
entrepreneur will offer to its target market.

b. Product process
• It is detailed layout of the production
process as the products goes into the
production line indicating the flow process,
materials, and equipment to be used and
normal timetable that the product will be
finished.

c. Plant Rated Capacity

• This refers to the volume of production per
shift per day or a monthly basis considering
target market consumption.

d. Machinery and Equipment

• It involves the kind of machine to be used,
its sources, spare parts, working guarantees,
rated capacity per day, and the cost
estimates involved in its purchase.

e. Plant Location
• A drawing or plant location and the vicinity
map as to its accessibility to supply or raw
materials, and the transport of finished
product to the market.

f. Building Facilities
• It must describe the type of building that
will be constructed or sketch of the building
plan, electric plants, drainage, and other
utilities.

g. Raw Materials
• It deals with the raw material requirements
and its specification, its source, cost and
terms of payment, availability, and the
possible long-term supply.

h. Power Supply and Utilities

• Utilities refer to the supply of electricity,
water, and its availability in the processing
of the product.

i. Production Cost
• This refers to the direct labor and
administrative cost in the processing the
product.

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L3 - Product : Nature & Sustainability

Product: It's Nature and Sustainability b. Owned-goods services

• Are the repair and maintenance services
→ Entrepreneurs must have a full knowledge as to what rendered by the sellers to the products of
products are needed in the society. the customer.
→ The product will be for the satisfaction of the group of
the target market. c. Non-good services
→ A product can be tangible or intangible in nature that • Is personal service on the part of the
can be offered for satisfaction of the recipients it may seller; most common are the expertise
be an idea, a physical entity (a good), service, or any and profession of the seller.
combination of the three.
Characteristics of Services
Levels of Product
1. Intangibility
1. Tangible Products • Is the services that cannot be displayed,
• Are the basic physical appearance which can be transported, stored, packaged or
an idea having precise specifications and id inspected before buying.
offered under given/ specified description or a
model number. 2. Credibility
• The service provided most of the time
2. Augmented Products counts.
• Include the image and service features of a
certain entity. 3. Inseparability
• It gives emphasis on the tangible benefits that • Is the service provider and services that
the customer will be getting from buying the cannot be separated.
product. • It cannot accomplish the purpose if one is
missing.
3. Generic Products
• Emphasize the impact of the product to the 4. Variability
customer, not the seller. • Is when the service is difficult to
• This will signify the purpose of its existence and standardize because it varies upon the
the primary objective in creating the product. performance of the provider.

Types of Product Consumer Products

• These are goods and services destined/ produced for
1. Goods the final consumer for personal, or household use.
• Are sale of the physical products from the • The use of the goods and services designated it as a
manufacturer to the consumer of final and consumer product.
ultimate user.
• These are tangible products that can 1. Convenience Products
measure the satisfaction with result or • Are purchased with the minimum or less
evidences as manifested through physical effort because the buyer has knowledge
development. of product characteristics prior to
shopping.
a. Durable Goods
• Are sale the physical products that a. Staples
are used over a long period of time. • Are low priced items that are
• Thes products are expensive because routinely purchased on a regular
of the quality of the materials used. basis and are product that are used
every day.
b. Non-durable Goods
• Are the physical products that are b. Impulse
quickly and easily be consumed or • Products are the items that the
worn out, become obsolete, consumer does not plan to buy.
unfashionable or no longer popular.
• Thes products are inexpensive and 2. Shopping Products
can easily be damaged. • Are product that the consumers acquire
through further knowledge and
2. Services information in order to make final
• Are intangible products that satisfaction purchase decision.
can be measured in future preferences. • Consumers will exert effort in searching
or looking for information because these
a. Rented-goods services products have high prices and are bought
• Are the consumer rented facility of infrequently and are categorized as
the sellers in a certain period of time. follows.

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 a. Attribute based shopping products New Product Development Process
• Provide customers with information ▪ The process consists of two sets:
and evaluated product features, ▪ Internal - looks at the company's objectives and
performance, options, warranties and resources.
other factors. ▪ External - looks at the customer's needs and
wants.
b. Priced based shopping products
• Enable customers to judge product Product Satisfying Features
attributes to be the same and look • Product patronage in the market is conditioned by the
around for the least expensive item. strategies and policies employed by the manufacturer
and the marketing organization on the product's
c. Unsought Goods - product not searched for attributes.

3. Specialty Products a. Design

• Are the items with particular brands and • It matters to the elements that collectively
stores to which consumers are loyal. form of good or service that will satisfy
• They are willing to make a significant or customers and gain competitive
specific effort to acquire the brand desired knowledge.
units and will pay a higher or above the
price of similar products. b. Product Colors
• It is the customers rejection or acceptance
of the product
Industrial Product • This could be true in clothing , cars, or
• Are goods or services purchased for use/ consumption furniture and other fixtures.
in the production/ manufacturing of other goods or
services, in the operation of a business or for resale to c. Product Quality
other customers. • This is set of features and attributes of a
product or services that determine its
1. Accessory Equipment ability to satisfy human needs.
• Is selected priced portable goods which last
long period of time, requiring a moderate d. Product Warranties
amount of consumer decision making. • One very important attribute of the
product is warrantee.
2. Raw Materials • It is the state where the buyer is assured
• Are unprocessed basic materials from that the product meets the specifications
extractive and agricultural industries. stated in the product labels.
• Natural environment promoted a good
source of raw materials. Examples:
Durable Goods
3. Industrial or Operating Supplies • Refrigerator, automobile, etc.
• Are inexpensive convenience goods which
are rapidly consumed and are necessary for Non-durable
the day-to-day operation of the firm. • Plastic, food, gas, cloths, etc.

4. Component Materials Owned-good services

• Are semi-manufactured goods which • Auto or computer repair, home care, landscaping, etc.
undergo further changes in form and later
to be a part of the finished products. Non-good service
• Tutor, accounting, doctors, etc.
5. Installations
• Are very expensive materials, non-portable Accessory Equipment
goods which are used in the production • Desk, writers, led lights, decal sticker, etc.
process and do not become part of the
finished product. Raw Materials
• Agricultural - poultry, eggs, vegetable, etc.
6. Fabricated Parts • Natural - oil, minerals, fish, etc.
• Are finished products of other companies
which form part of the manufactures Component Materials
product without further changes in form, • Textile, leather, coated fabrics, polyurethane foams,
but given added feature to make a new etc.
product.
• Fabrication techniques used to shape, cut, Fabricated Materials
or mold raw metal material into a final • Building, tractors, computers, land rights, generators,
product. etc.

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 L4 - Product : Best for Market Need

Tips in Choosing the Business Name a. Brainstorming

• All members of the group can
1. Easy to Recall or Remember contribute in sharing ideas,
• The business name must be understandable so it comments, and suggestions.
is easily stored in the memory.
b. Analyzing Existing Products
2. Pleasant Meaning Creates Pleasant Feelings • A successful product that captures
• It produces positive or favorable feeling upon great market can be analyzed as a
saying or mentioning to the public. basis in creating a new product.

3. Easy to Pronounce c. Reading Trade Publications

• The business name must be cited as freely as it • As inspirational story of a successful
can be. entrepreneur can lead into a
development of a new product.
4. Easy to Spell • Trade publications share
• The business name must be simple. information between people within
• Words that are used in everyday communication a specific industry in order to
will be an advantage. improve their business or field and
to keep up-to-date on market
5. Related to the Product trends.
• The business name must describe the product. • Trade publications can be very
• It represents the features of the product. useful to research within a specific
field.
Product Life Cycle
• The product life cycle concept describes a product's d. Visiting Suppliers' Facilities
sales, profits, customers, competitors, and marketing. • Supplier's raw materials can be
used as a method to innovate and
modify existing product.

e. Surveys
• Getting feedback coming from the
customers and potential market.

2. Idea Screening
• Ideas which are unsuitable, unattractive,
or poor are junked.
• Ideas together with attributes are rated
on the basis of a rating from 1-10.
• Ideas are rated on the following: General,
marketing, and production characteristics.

3. Concept Testing
• Ideas which have passed the screening
Stages of Product Life Cycle stage will now require feedback from the
customer.
I. Product development • It measures consumer enthusiasm by
• The company must think of a new product. asking potential consumer to react a
• A new product is a modification, creation, and picture, statement or oral description.
innovation of an existing product which makes
product more meaningful to the customer. 4. Business Analysis
• Is a review of a market factors, revenues,
➢ The new product planning process involves a series of cost and trends.
steps:
a. Demand Projection
1. Ideas Generation • Sales potential; sales growth; rate
• Searching and looking for a new product or of purchase; distribution intensity.
business opportunities.
• The employees, channel members, b. Cost Projection
competitors, and customers can be a great • Per unit cost; raw materials cost;
source. cost of existing facilities and
resources; breakeven point.
Methods:

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 c. Competition III. Growth
• Market share of company and • The product gains wider consumer acceptance
competitors; strengths and weakness and the objective are to expand distribution and
of competitors; potential the range of available product alternatives.
competitors. • More firms enter the profitable and tested
market.
d. Required Investment • Sales are Increasing at their Fastest Rate.
• Engineering patent search, product
development, testing, promotion, IV. Maturity
distribution. • The product's sales level and companies try to
maintain lower price, better product features for
e. Profitability a long as possible.
• Time to recover initial cost; per unit • Market is saturated, penetrated, and
profits, distribution intermediaries; competitions at its highest level.
control over price; return on • Sales are near their Highest. However, the Rate
investment. of Growth is Slowing Down.

5. Product Development V. Decline

• Ideas are converts into tangible form. Stage • The product's sales fall as substitutes and new
involves: competitors enter the market.
• The Final stage of the Cycle, Sales Begin to Fail.
a. Product Construction
• Type and quality of materials, method
of production, production tome and
cost requirements per unit, plan
capacity, size, and colors.

b. Packaging
• Materials used in promotion or
storage; cost; size and colors.

c. Branding
• Choice of new or existing name,
exclusivity; trademark protection.

d. Product Positioning
• Selecting a market segment

e. Consumer Attitude and Usage Testing

6. Test Marketing
• Involves a selling of a fully developed
product in a selected city and observing the
actual on the spot performance under the
chosen marketing plan.
• Depending on the results, a firm can decide
to go ahead, modify the product or service,
modify the marketing plan or drop or delete
the product.

7. Commercialization
• This involves the actual marketing of the
product in the target market.
• The different activities to introduce the
product to the market must be presented.

II. Introduction
• A new product is introduced into the market
place and the objectives is to generate customer
interest.
• Researching, Developing, and then Launching the
Product.

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