ENTREPRENEURSHIP

Entrepreneurship

the process of identifying, developing, and bringing a business idea to life, often involving innovation, risk-taking, and the management of resources to achieve success. It plays a critical role in economic growth and job creation.

Entrepreneur

is a person who recognizes opportunities and gaps in the market. They are people who own, operate, and take risk of business venture.

Joseph Schumpeter

an Austrian-American economist, is considered the father of entrepreneurship for his key contributions to its study and economic development

“entrepreneur” comes from the French entreprendre

meaning “to undertake,” referring to those who take risks in business

Economists and Scholars

• Jean-Baptiste Say (1767–1832): An entrepreneur moves resources from areas of lower productivity to areas of higher productivity and greater returns.

• Peter Drucker (1909–2005): Entrepreneurs seek change, respond to it, and turn it into opportunities.

• Israel Kirzner (1930–): Entrepreneurship is about being alert to profit opportunities.

Modern Practitioners and Influencers

• Steve Jobs (1955–2011): Innovation separates leaders from followers.

  Contribution: Revolutionized industries through Apple, focusing on vision and user-centered design.

• Richard Branson (1950–): Business opportunities are plentiful, like buses. Contribution: Founder of Virgin Group, known for adventurous and diverse business ventures.

• Elon Musk (1971–): Persistence is crucial; never give up unless forced. Contribution: Redefines entrepreneurship with high-risk ventures in energy, space, and transportation.

• Muhammad Yunus (1940–): Everyone is inherently an entrepreneur.

  Contribution: Founder of Grameen Bank, promoting social entrepreneurship and microfinance to reduce poverty
  Howard Schultz (1953–): True success is shared. Contribution: Expanded Starbucks globally, emphasizing customer experience and community.

Personality Factors

A. Initiative: Takes action without being prompted.

B. Proactive: Identifies and seizes opportunities.

C. Problem Solver: Maintains good relationships while resolving issues.

D. Perseverance: Continues working despite challenges.

E. Persuasion: Can influence others to buy or support ideas.

F. Planner: Creates plans beforehand and monitors their progress.

G. Risk-Taker: Willing to take calculated risks.

ENVIRONMENTAL FACTORS

• Political conditions

• Climate

• Legal system

• Economic and social conditions

• Market environment

Common Competencies of Entrepreneurs

1. Decisive: Makes firm decisions.

2. Communicator: Persuasive and convincing.

3. Leader: Inspires and guides employees.

4. Opportunity Seeker: Spots business opportunities early.

5. Proactive: Anticipates and prepares for future challenges.

6. Risk-Taker: Confidently pursues business ventures.

7. Innovative: Continuously generates and improves valuable ideas for the business.

Core Competencies in Entrepreneurship

1. Economic Activity – Entrepreneurship creates value by using resources efficiently.

2. Innovative – Entrepreneurs seek new ideas and use creativity.

3. Profit Potential – They earn income from business operations.

4. Risk Bearing – They take and manage business risks wisely.

Innovative

Create new and improved ideas, products, or methods.

Imitating

Copy and apply ideas from successful entrepreneurs.

Fabian

Cautious about change; adopt new ideas only when proven effective.

Drone

Resist change and stick to traditional business methods.

Social

Focus on solving social issues and driving community change.

Sales Person

Markets and persuades customers to buy products.

Mid-level manager

Turns business ideas into action.

Business Advisor

Helps identify and solve business problems.

R&D Specialists

Develops new business concepts and innovations.

Teacher

Teaches entrepreneurship-related lessons in various subjects.

Recruiter

Selects suitable employees using management knowledge.

Business Reporter

Writes and analyzes business news and trends.

Small Business Manager

Oversees daily operations of small enterprises.

Management Analyst

Improves company efficiency through analysis.

Business Consultant

Offers expert advice to entrepreneurs and startups.

Relevance of Entrepreneurship to an Organization

• Develops Management Skills – Enhances leadership and decision-making.

• Creates Organizations – Leads to more businesses and job opportunities.

• Improves Living Standards – Increases income and quality of life.

• Boosts Economic Growth – Contributes to overall community development.

Determining a Viable Business Idea

1. Research the market

Research your market using the internet, libraries, industry reports, and media (blogs, trade journals, newspapers) to learn about costs, competitors, market size, and whether it’s viable.

2. Determine if there’s a paying customer.

to build a successful business, your idea must solve a customer’s problem. First, identify who your ideal customers are, their income level, buying habits, and how they decide to purchase. Gather this information through online surveys, interviews, and existing data. After analyzing the results, you'll understand who your paying customers are.

3. Solicit honest feedback. Bounce

Share your business idea with family, friends, and peers to get real and practical advice. Also talk to potential customers, local business owners, and even competitors (without revealing too much) to learn about fair pricing and what people currently pay or charge for similar services.
4. Consider your marketing strategy.

Since your time and budget may be limited, make sure your marketing efforts are cost-efficient. The good news is many modern marketing methods are now affordable.

5. Evaluate the costs of your venture

Share your business idea with family, friends, and peers to get real and practical advice. Also talk to potential customers, local business owners, and even competitors (without revealing too much) to learn about fair pricing and what people currently pay or charge for similar services.

Cost of Materials

Calculate how much you’ll spend on inventory, ingredients, or product components.

Cost of labor

If you work yourself, estimate the value of your time. If hiring others, determine how much time and money their work will require

Overhead

Include daily business expenses such as utilities, rent, insurance, admin support, and marketing in your pricing.

Pricing

After computing all costs, set your price. Make sure it covers expenses and provides profit, or your business won’t survive.

Ways to Ensure Success and Profitability in Starting a Business:

• Start by identifying a customer you want to attend.
  Think about the people you enjoy being around and would like to help. If you can improve their lives and get paid for it, that’s a strong start

• Exchange ideas to your customers. don’t just guess what they want—ask them directly. Many businesses fail because they assume customer needs instead of understanding them.

• Let your customers create your business Customers often know exactly what solutions they need, so use their input to guide your products

• Presell your product. Decide how much to charge for your solution by asking customers what they would pay

• Launch the business with sufficient funds. This gives you an early group of customers you can work with to make sure your product meets their needs

• Create your MVP and let your customers develop it. If you’ve set expectations well, they will provide feedback to help improve it. This leads to a better product and stronger customer loyalty

• Scale your business. You’re no longer guessing if it will work—you know it will because your customers have already confirmed it.

Market Analysis

the process of studying a market’s size, customer groups, buying behaviors, competitors, and economic conditions, including possible challenges and regulations

MARKET NEEDS

what a market wants or requires, whether practical or emotional.

Main customer needs

• Price – The cost a customer must pay for a product; it represents the product’s value.

• Quality – How well a product or service meets the customer’s expectations.

• Price – The cost a customer must pay for a product; it represents the product’s value.

• Quality – How well a product or service meets the customer’s expectations.

Customer Description

Identifying the individual or organization that buys, uses, or benefits from a product or service..

Customer Perception

How customers view, understand, and feel about a business, brand, product, or service.

Market Trends

general direction in which the market or financial environment is moving over time.

Market Projection

estimate of future market size, characteristics, and possible developments within the target audience

Market Competition

battle among businesses offering similar products or services to gain higher profits, sales, and market share.

CONDUCTING Market analysis

• Identify why you are doing the study.

• Review the current state and future trends of your industry.

• Define who your ideal customers are.

• Examine your competitors.

• Collect more relevant information.

• Interpret the data you gathered.

• Use your conclusions to guide your business decisions

Marketing Research process

is the systematic approach of collecting, examining, and understanding information about products or services intended for potential customers in the market (De Guzman, 2018, p. 25).

Data Collection

is a crucial tool in any research study. Collecting inaccurate data can lead to errors and make the results unreliable (Edralin, 2016, p. 80).

TIPS FOR DATA COLLECTING

• Organize the data immediately after gathering it.

• Be clear about the purpose of the data and focus on collecting relevant information.

• Gather more data than necessary to ensure accuracy.

• Generate additional data if needed.

• Take note of significant or noteworthy information.

Survey

are the most widely used method for collecting primary data, typically through questionnaires or interviews. These can be conducted via mail, phone, internet (e.g., Google), email, in-person, or online platforms like Skype or Viber.

Interview

is a reliable and direct method of gathering important information from target customers. It is usually conducted in person, where the researcher asks questions about the customer’s problems or opinions. Interviews typically last 15–40 minutes, and in a structured interview, only a predetermined set of questions is asked.

Personal Interviews

are the classic approach for conducting interviews. They help the researcher build rapport with participants, encouraging cooperation and yielding the highest response rates in surveys. They also allow for clarification of unclear answers and follow-up questions when needed.

Telephone Interviews

are cheaper and faster, but the response rate is lower than face-to-face interviews, though still higher than mailed questionnaires.

Focused group discussion

is an effective way to generate and evaluate ideas and concepts. It involves moderated group interviews or brainstorming sessions that gather insights about users’ needs and behaviors.