ENTREPRENEURSHIP

WHO IS AN ENTREPRENEUR?

Entrepreneur is a person who

• Develops his own enterprise;
• Takes risk;
• Is innovative
• Converts problems into
opportunities
 ENTREPRENEURSHIP
• Is a proactive process of developing a
business venture to make a profit. It
involves seeking opportunities for a
market, establishing and operating a
business out of the opportunity, and
assessing its risks and rewards through
close monitoring of the operations.
 SOCIETAL AND ECONOMIC BENEFITS
OF ENTREPRENEURSHIP:
1. Entrepreneurship produces more jobs that
equate to an increase in national income.
2. Entrepreneurship amplifies economic
activities of different sectors of society.
3. Entrepreneurship introduces new and
innovative products and services.
4. Entrepreneurship improves people’s living
standards.
5. Entrepreneurship disperses the economic
power and creates equality.
6. Entrepreneurship reduces social conflicts and
political unrest.
7. Entrepreneurship elicits economic
independence and capital formation.
 5 LEVELS OF
ENTREPRENEURIAL
DEVELOPMENT
1. The self-employed
2. The manager
3. The leader
4. The investor
5. The true entrepreneur
 TYPES OF ENTREPRENEUR
• 1. TECHNOPRENEUR- is an entrepreneur who
puts technology at the core of his or her
business model.
• 2. SOCIAL ENTRPRENEUR- is one who takes
advantage of the country’s social problems
and turn them to profitable institutions with
the intention of helping the disadvantaged
community rather than making a profit.
• 3. INTRAPRENEUR- is an entrepreneur in a large
company or corporation who is tasked to think,
establish, and run a new big idea or project.
Intrapreneurs are usually the product managers
or the business development managers of a
company.
• 4. EXTRAPRENEUR- is an entrepreneur who hops
from one company to another as the innovation
champion, providing creative and efficient
solutions.
COMMON AND CORE
COMPETENCIES IN
ENTREPRENEURSHIP
 COMMON TRAITS
1. PROACTIVE
2. AGENTS OF CHANGE
3. RISK TAKERS
4. HAVE A SHARP EYE FOR OPPORTUNITIES
5. SOCIABLE
6. NETWORKERS
7. DECISIVE
8. BALANCED
9. INNOVATIVE
 CORE TRAITS
1. LEADERS
2. COMMUNICATORS
3. SPECIALISTS
4. PROBLEM SOLVERS
ENTREPRENEURSHIP OR
EMPLOYMENT
PROS AND CONS OF
ENTREPRENEURSHIP VS
EMPLOMENT
1. INCOME
ENTREPRENEUR EMPLOYEE
• Income generated • Income generated
passively even when actively
the entrepreneur is
resting
• Income earned
whether the
• Income only earned
when the business is business is
successful successful or
unsucessful
2. HIRING AND FIRING, ORGANIZATIONAL
SETUP AND MAJOR KEY RESULT AREAS

ENTREPRENEUR EMPLOYEE
• Provides jobs • Seeks for a job
• Fully responsible for • Has the goal of
serving customers and satisfying only the
providing employee employer or the direct
satisfaction supervisor
• Has the power to • Fully dependent on the
disengage employer’s
nonperforming performance
employees
3. DAILY TASKS
ENTREPRENEUR EMPLOYEE
• Performs all necessary • Has routine tasks and
variable tasks to works on regular or
establish and manage a normal hours
startup business, which • Follows policies,
usually takes most of procedures and
the entrepreneur’s time memoranda from the
• Prepares policies, employer
procedures, and
memoranda for the
business
4. LEISURE TIME AND VACATIONS
ENTREPRENEUR EMPLOYEE
• Has a flexible • Has a limited
schedule and can number of
take unlimited vacation days
number of imposed by the
vacation days employer
5. TAXATION
ENTREPRENEUR EMPLOYEE

• Taxed on the • Taxed on the

net income gross income
6. COMFORT LEVEL AT WORK
ENTREPRENEUR EMPLOYEE
• Is comfortable in • Maybe comfortable
doing multiple and with routines and
challenging tasks and minimal risks; may
takes accountability also be comfortable
with the risks and in working for the
profits of the company itself
business
1. Income is earned whether the
business is successful or
unsuccessful.
2. He or she is usually comfortable with
routines and minimal risks.
3. He/she is fully responsible for
serving customers, making the
business profitable/sustainable, and
providing employee satisfaction
4. He or she prepares policies, procedures
and memoranda for the business.
5.He or she is fully dependent on the
employer’s performance. If the company
does not perform well, he or she is at risk
of becoming jobless.
6. He or she is comfortable in doing
multiple and challenging tasks and takes
accountability with the risks and profits of
the business.
7. Income is generated on working hours
only.
8. He or she has a flexible schedule and can
take unlimited number of vacation days.
9. He or she is taxed on the gross income.
10. He or she has the power to disengage
nonperforming employees, applying the
due process policy of disengaging
personnel.
 CAREERS IN
ENTREPRENEURSHIP
 MOST COMMON SMALL BUSINESSES
IN THE PHILIPPINES
1. Sari-sari store
2. Rice retailing
3. Food cart business
4. Printing business
5. Buy-and-sell business
6. Street food business
7. Flea market business
8.Online selling business
9. Cellphone loading business
10. Laundry and dry cleaning business
11. Hair styling and makeup business
12. Spa, gym and nail care business
13. Video and photography business
14. Tutorial business
15. Baking business
16. Web site developer and design/blogging
17. Direct selling business
18. Car wash and car care
business
19. Bar café and restaurants
20. Water station and LPG
station
FRANCHISING- is a business
arrangement wherein the
franchisor, who s the owner
of the business, acquires
distribution centers through
the franchisees or the
affiliated dealers.
CHOOSE THREE SUCCESSFUL
ENTREPRENEURS FROM DIFFERENT FIELDS
THAT YOU KNOW OF AND ARE ENGAGED
IN COMMON SMALL AND FRANCHISE
BUSINESS. ASK THESE THREE CHOSEN
ENTREPRENEURS THE FOLLOWING
QUESTIONS USING THE INTERVIEW
METHOD OF RESEARCH:
1. WHAT MOTIVATED YOU TO BECOME AN
ENTREPRENEUR?
2. WHAT DO YOU THINK ARE YOUR
CHARACTERISTICS AND COMPETENCIES THAT
MADE YOU A SUCCESSFUL ENTREPRENEUR?
3. ASIDE FROM THE BUSINESS THAT YOU HAVE,
WHAT OTHER BUSINESSES ARE YOU INTERESTED
IN?
4. WHAT DO YOU THINK OF BEING EMPLOYED?
WHY DIDN’T YOU CHOOSE THAT PATH?
5. WHO ARE YOUR TOP THREE ENTREPRENEURS
ROLE MODELS? WHY DO YOU WANT TO BE LIKE
THEM?
6. HOW MUCH DO YOU LOVE YOUR JOB?
VISIT
http:www.cipe.org/publications/detail/entrepreneurship-
philippines-opportunities-and-challenges-inclusive-growth
GUIDE QUESTIONS:
1. What are the top 3 issues that impede Philippine
entrepreneurs to succeed or even start their own
enterprise
2. What realistic solutions will you suggest to address the
top 3 issues if you will be given a chance to change the
current system and/or business policies in the
Philippines?
3. In your own experience and environment scan, describe
the state of entrepreneurship in the PHILIPPINES?
THE ENTREPRENEURIAL
PROCESS
ENTREPRENEURIAL PROCESS

• Is a step-by-step
procedure in establishing
any kind of business that
an entrepreneur has to
undergo.
ENTREPRENEURIAL PROCESS

it is composed of four aspects:

1.Opportunity spotting and
assessment
2.Developing a business plan
3. Determining the capital needed
4. Running the business
OPPORTUNITY DEVELOPING DETERMINING RUNNING THE
SPOTTING AND A BUSINESS THE CAPITAL BUSINESS
ASSESSMENT PLAN NEEDED

• Evaluate the • Come up • Calculate • Practice

identified with a the intrinsic leadership as a
opportunity business and way of life
description extrinsic
and analysis capital
needed
• Conceptualize • Perform • Calculate • Recognize
and measure industry the existing critical success
the opportunity analysis capital factors

• Identify the • Come up • Calculate the • Identify existing

perceived value with a difference and foreseeable
between the
of the marketing needed capital
problems and
opportunity to plan and the issues
OPPORTUNITY DEVELOPING A DETERMINING RUNNING THE BUSINESS
SPOTTING AND BUSINESS PLAN THE CAPITAL
ASSESSMENT NEEDED
• Do cost-benefit • Prepare the • Develop • Employ risk-mitigating
analysis of the operations contact and controls and
opportunity including the relationship monitoring systems
including risk organizational with suppliers
analysis plan and service
providers
• Match the • Come up with • Device an expansion/
opportunity the financial sustainability strategy
with the plan
entrepreneurs
skills and
objectives
• Scan the • Identify
strengths and strategies and
weaknesses of tactics
the competitors
• Perform
monitoring and
 SCANNING THE MARKETING
ENVIRONMENT
Is the starting point of any new
venture that involves uderstanding
and knowing the intricancies of the
macroenvironment,
microenvironment and internal
environment.
 Seeking, Screening, and Seizing
• The 3S of opportunity spotting and
assessment is the framework that
most of the promising entrepreneurs
use to finally come up with the
ultimate product or service suited for
a specific opportunity.
 S1: Seeking the Opportunity
It involves the development of new ideas from
various sources as follows:
1. Macroenvironmental Sources
a. STEEPLED- this represents the general
environment where the entrepreneur can
identify business opportunities from and
where the future business is about to
operate.
b. Industry- this is the source of current trend on
what is happening in the industry where the
future business will belong to.
c. New discovery or knowledge- these are new
trends that can be the core business model of a
new venture.
d. Futuristic opportunities- these are projected
new opportunities that can possibly affect the
new business while it is rummning.
2. MICROMARKET
a. Consumer preferences, interests, and
perception
b. Competitors
c. Unexpected opportunities from consumers
d. Talents, hobbies, skills and expertise
e. Irritants in the marketplace such as
deterrents, problems, complaints and delays
f. Location
METHODS OF GENERATING IDEAS
1. Focused group discussion (FGD)- a
moderator handles a very open,
free-flowing, and in depth
discussion with a group of people
who can provide insightful ideas
about a new product or service that
will fill a market need.
2. Brainstorming- similar to an FGD
-an activity that allows the participants to
share creative ideas using the following
rules:
a. No destructive criticism or judgement is
allowed
b. Wilder ideas are accepted
c. More ideas are preferred
d. Improvement of others’ ideas is allowed
3. Brainwriting or Internet
brainstorming- same as brainstorming
except that the channel used is not
face-to-face but in writing or online.
The results of brainwriting or Internet
brainstorming usually take longer as
the answers depend on the availability
of the participants in answering the
questionnaires online.
4. Problem inventory analysis- similar
to FGD except that the participants are
already given an inventory of product
or service problems. The participants
will just identify from the list given the
compelling problems of a potential
product or service instead of
generating the ideas from the.
 ACTIVITY

Do an opportunity spotting and

assessment activity in your own locality
or barangay. Identify the potential
opportunities from the
macroenvironmental and
microenvironmental sources.
Demographics The number of Remittance business,
OFW families is cellphone load
increasing in business
Barangay
Catabayungan
 S2-Screening the Opportunity

•Opportunity Screening-
is the process of
cautiously selecting the
best opportunity
RISK APPETITE REFERS TO
THE ENTREPRENEUR’S
TOLERANCE OF BUSINESS
RISKS.
The entrepreneur should say no to an
opportunity if it does not contain any of
the following business opportunity
elements:
• Has superior value to customers
• Solves a compelling problem, issue, a
need or want
• Is a potential cash cow
• Matches with the entrepreneur’s
skills,resources, and risk appetite
OPPORTUNITY ATTRACTIVENESS TEST
(OAT)
• Aims to assist entrepreneurs in
ensuring that the opportunity that
they will venture into is an attractive
and feasible project.
• This test is designed to detail each
entrepreneurial aspect into small
chunks to come up with a sound
entrepreneurial decision.
 COMPONENTS OF OAT
1. The “concept” and the “strategy”-
the entrepreneur should think of
the reason for the business
existence
• Vision statement
• Value creation proposition
Lena, a fresh graduate of TESDA, thinks that
there is an opportunity to open a salon in their
community in Batisan Village, Cabanatuan City.
Her initial findings show that their community
only has one barber shop for men and one
beauty salon for women. Batisan Vilage has 200
families. Majority of the members of the
families are office workers and students.
Moreover, she acquired data through an
informal survey via social media that
familieswant to go to just one barber shop or
beauty salon together on weekends.
The research also revealed that
families also want to have other
services such as nail cleaning and
massage. They also take these
activities as an opportunity to bond
with one another because of their busy
schedules. With this limited
information, Lena needs to be affirmed
about the attractiveness of this
opportunity.
1. Concept and strategy
• Vision statement-Lena envisions her business
as a one-stop beautification and relaxation
shop where families bond, relax, and feel and
look better.
• Value proposition- lena’s business will cater to
the families holistic needs of beautification,
relaxation, and bonding with their loved ones.
It will remove the problem of going to
different shops. Family packages and bundled
services will also be offered to entice more
customers.
2. Opportunity metrics
• Consists of the basic metrics necessary in
starting up a business
• These are considered as the
opportunity’s critical success factors.
These factors will approximately
determine the attractiveness of the new
venture depending on the total scores it
will generate and the risk appetite of the
entrepreneur.
•Prepare a
comprehensive OAT with
three opportunities in
your locality.
S3- SEIZING THE
OPPORTUNITY
INNOVATION is the process
of positively improving an
existing product or service
 3 TYPES OF INNOVATIONS
1. BREAKTHROUGH INNOVATION
-include inventions
-occur infrequently as these establish
the platform on which future innovations
in an area are developed.
-must be protected by a patent, a
trade secret or a copyright.
-e.g. Internet, computer, or the
airplane
2. TECHNOLOGICAL INNOVATION
-occur more freaquently than
breakthrough innovations.
-these innovations are
technological advancements of an
existing product or service.
e.g. Wi-Fi, laptop and jet airplane
3. ORDINARY INNOVATION
-occur ordinarily
-they are commonly originating from
market analysis and technology pull instead of
technology push
-e.g. Internet plans of telecommunication
companies, a wireless mouse, and an airbus for
economical travelers