entrepreneurship

Entrepreneurship

Definition

Entrepreneurship: The art of observing correct practices in managing and operating a self-owned wealth-creating business enterprise by providing goods & services that are valuable to customers.

Business

General Definition

Business: An organization or enterprising entity engaged in commercial, industrial, or professional activities (Investopedia).

Economic Activity

Involves the exchange, purchase, sale, or creation of goods and services with the goals of profit and customer satisfaction.

Entrepreneur vs. Businessman

Definitions and Differences

Businessman:

Market player

Profit-oriented

Conventional thinker

Creates a space in existing markets

Entrepreneur:

Market leader

People-oriented

Unconventional thinker

Creates a brand new market

Quote by Joseph Schumpeter

Entrepreneurs innovate not just by using inventions but by introducing new means of production, products, and organizational forms.

Brief History of Entrepreneurship in the Philippines

Overview

The Philippines is recognized as an entrepreneurial country with significant business establishments.

Statistics (As of 2023)

Total business establishments: 1,246,373

Micro businesses: 1,241,733 (99.63%)

Small, Medium, & Large Enterprises: 119,315

Historical Context

Early interaction of Filipinos with foreign traders.

Introduction of bartering systems.

Development into a family-centered, Catholic, capitalistic, and democratic society.

Small and Medium Enterprises (SMEs) as embodiments of entrepreneurship.

Regulatory Framework

1935 Constitution: Initial regulations surrounding entrepreneurship.

Philippine Development Plan (1972-1976): Focus on reinforcing SME sector.

Magna Carta for Micro, Small, and Medium Enterprises of 2008 (RA 9501): Promotion and development framework.

Role of the Department of Trade & Industry (DTI)

Primary agency for promoting and developing MSMEs through assistance in financing, marketing, human resource development, and advocacy.

Importance of Entrepreneurship

Economic Development and Society

Creates Employment: Generates job opportunities.

Develops New Markets: Introduces innovative products and services.

Introduces Innovation: Essential for advancing technology and business practices.

Generates New Sources of Materials: Supplies variety in consumer goods.

Provides More Alternatives for Consumers: Enhances consumer choice.

Stimulates Investment Interest: Encourages investment in new ventures.

Serves as Role Model: Influences future entrepreneurs and businesses.

Utilizes and Mobilizes Indigenous Resources: Optimizes local materials for products.

Brings Social Benefits: Contributes to community development.

Improves Quality of Life: Enhances living standards.

Recap & Summary Statements

Entrepreneurship Main Concepts

Art of Correct Practices: Managing and operating self-owned wealth-creating business enterprises that offer valuable goods/services.

Micro, Small & Medium Enterprises (MSMEs): Crucial for the Philippine economy, representing 99.63% of all registered businesses as of 2023.

Entrepreneur Characteristics

Calculated Risk-Taking: Avoiding unnecessary risks.

Commitment: Dedication to societal welfare and the business.

Feedback-Seeking: Importance of assessing performance for improvements.

Drive to Achieve: Pursuing challenging business goals.

Self-Confidence: Believing in collective capabilities.

Opportunity Orientation: Recognizing opportunities in life.

Innovativeness: Ability to create unique offerings.

Responsibility: Being accountable for business success.

Tolerance for Failure: Learning from unsuccessful attempts.

Entrepreneurial Skills & Competencies

Skills Required

Cognitive Skills: Learning and generating ideas.

Interpersonal Skills: Interaction with stakeholders (workers, customers, suppliers).

Technical Skills: Proficiency in specific fields relevant to the business.

Competencies

Opportunity Competencies: Identifying and seizing market opportunities.

Relationship Competencies: Building connections with individuals/groups.

Conceptual Competencies: Understanding and applying concepts effectively.

Organizing Competencies: Managing resources and team dynamics.

Strategic Competencies: Setting and executing business strategies.

Commitment Competencies: Driving efforts and determination in business ventures.

Social Entrepreneurship

Definition

Social entrepreneurship: An entrepreneurial venture focused on achieving positive social impact.

Importance

Addresses societal issues and contributes to community improvement.

Examples of Social Enterprises in the Philippines

Pro-Enviro: Produces natural and organic personal care products, employs marginalized sectors, and supports local farmers.

Bambike Revolution Cycles: Employs marginalized sectors and promotes sustainable community development.

BamBuHAY: Innovates eco-friendly products and employs marginalized individuals.

Messy Bessy: Offers safe cleaning products and supports education and employment for at-risk youth.

Bayan Brew: Supports local farmers and uses indigenous ingredients.

Lesson 2

Theories on Entrepreneurship

Definition of Theory

Theory: A generalization that explains a set of facts or phenomena and provides a framework for understanding complexities.

It is important to understand that theories are not absolute truths; they can be supported or disproven through systematic observation and comprehensive research.

Entrepreneurship Theories: These theories are substantial because they are grounded in economic events and phenomena that influence the business landscape.

Major Entrepreneurship Theories

Innovation Theory

Founder: Joseph Schumpeter

Concept: Economic development is significantly driven by innovation and structural changes within the industry.

Types of Innovations: Entrepreneurs introduce various innovations that can be categorized into:

Product innovation: Development of new or improved products.

Production method innovation: Introduction of new ways to produce goods.

Market innovation: Changes in strategies regarding how products reach consumers.

Supplier innovation: Innovations that enhance supply chain management.

Industry structure innovation: Transformation in the competitive dynamics of industries.

Keynesian Theory

Founder: John Maynard Keynes

Concept: This theory highlights the critical role of government intervention in stimulating economic growth and fostering entrepreneurship.

Historical Context: Developed during the turbulent times of The Great Depression (1929-1939).

Proposition: Advocates for increased government expenditures and tax reductions as measures to stimulate demand, thereby fostering an environment conducive to entrepreneurship.

Alfred Marshall Theory

Concept: Marshall emphasizes that entrepreneurs are the key drivers of economic activity.

Functions of Entrepreneurs: They play a vital role in assembling essential factors of production: land, labor, capital, and organization.

Market Understanding: Entrepreneurs need an in-depth understanding of the industry in which they operate to innovate and grow effectively.

Risk and Uncertainty-Bearing Theory

Founder: Frank Hyneman Knight

Concept: Entrepreneurs are viewed as essential agents in the production process, linking producers with consumers.

Risk Profile: This theory posits that while all business activities involve some level of risk, entrepreneurs distinguish themselves through their willingness to take on risks and manage uncertainties.

Types of Uncertainties: Uncertainty is considered a crucial factor when producing goods and services, significantly impacting the decision-making process in entrepreneurship.

Other Theories on Entrepreneurship

Weber's Sociological Theory: Stresses the importance of cultural and societal factors in shaping entrepreneurial activity.

Kaldor's Technological Theory: Points to the significance of technological advancements as a catalyst for production enhancement and economic growth.

Leibenstein's Gap-Filling Theory: Illustrates how entrepreneurship addresses gaps in the economic marketplace, filling inefficiencies left by existing market players.

Kirzner's Learning-Alertness Theory: Focuses on the importance of learning and alertness as essential traits for successful entrepreneurs, enabling them to identify opportunities within market gaps.

Recap of Theories on Entrepreneurship

Innovation Theory

Keynesian Theory

Alfred Marshall Theory

Risk and Uncertainty-Bearing Theory

Entrepreneurial Ideas

A key facet of entrepreneurship is the generation and identification of novel ideas that can lead to successful business ventures.

Creation of Entrepreneurial Idea

Identification of Entrepreneurial Process

Creation of New Ventures

Understanding Entrepreneurial Opportunities

Opening of Entrepreneurial Ventures

Sources of Entrepreneurial Ideas

Changes in the Environment: Various shifts can prompt new business ideas:

Physical Environment: Climate, natural resources, and wildlife can create entrepreneurship opportunities.

Societal Environment: Socioeconomic factors, political climates, and technological changes play critical roles in shaping entrepreneurial landscapes.

Industry Environment: This includes influences from government, competitors, suppliers, customers, and employees that impact entrepreneurship.

Technological Discovery & Advancement: Entrepreneurs can find new opportunities by leveraging advancements in technology and innovations that disrupt existing markets.

Government Thrust, Programs, and Policies: Government initiatives and policies can foster entrepreneurship by providing incentives or frameworks that encourage new business growth.

People's Interests: Understanding trends and cycles of interests among consumers allows entrepreneurs to adapt their ventures to align with market demands, ensuring longevity and sustainability.

Past Experiences: Skills and expertise gained from previous work experiences can inspire entrepreneurs to explore related ventures, capitalizing on their knowledge and background.

Recap of Sources of Entrepreneurial Ideas

Changes in the Environment

Technological Discovery & Advancement

Government's Thrust, Programs & Policies

People's Interests

Past Experiences

Lesson 3

Entrepreneurship Overview

Facilitator: Ms. Djhaemy T. Nazareno

Theories on Entrepreneurship

Focus on different theories that explain entrepreneurial behavior and success.

Connection between various factors and entrepreneurship.

Importance of understanding these theories for aspiring entrepreneurs.

Technology and Entrepreneurship

Examination of how technological advancements influence entrepreneurship.

Adaptation of entrepreneurs to new technologies in business practices.

Innovation driven by technological changes.

Government and Entrepreneurship

Role of government support and policies in fostering entrepreneurship.

Regulations that affect business operations and growth opportunities.

Government initiatives aimed at encouraging new businesses.

People’s Interests and Entrepreneurship

Importance of understanding consumer interests for business success.

Market demand driven by changing preferences and consumer trends.

Aligning business strategies with consumer desires.

Past Experiences and Entrepreneurship

How prior experiences shape entrepreneurial decisions.

Learning from successes and failures in previous ventures.

Utilizing personal history to inform future business strategies.

Environment and Entrepreneurship

Understanding how external environments impact business success.

Elements of the environment influencing entrepreneurship:

Physical Environment

Societal Environment

Industry Environment

Changes in the Environment

Constant evolution within various environments affects enterprise strategies.

Entrepreneurs must adapt to physical and societal shifts.

Environmental Scanning

Definition: Gathering and evaluating information regarding environmental changes.

Importance of assessing the physical, societal, and industry factors in decision making.

Significance of Environmental Scanning

Identifies trends, threats, and opportunities within the environment.

Helps in understanding factors for successful entrepreneurial ventures.

Informs strategic planning and direction for businesses.

Environmental Scanning Tools

Key methodologies for analyzing business environments:

SWOT Analysis: Strengths, Weaknesses, Opportunities, Threats.

PESTEL Analysis: Political, Economic, Social, Technological, Environmental, Legal factors affecting business.

SWOT Analysis

Developed by George Albert Smith Jr and Roland Christensen.

Components:

Strengths:

Business capabilities providing a competitive advantage.

Weaknesses:

Internal deficiencies that need addressing.

Opportunities:

External business conditions that present potential for growth.

Threats:

External challenges that could negatively impact the business.

Example: Jollibee’s SWOT Analysis

Strengths:

Emotional brand resonance, diverse menu, unwavering quality, global expansion.

Weaknesses:

Challenges in foreign markets, consistency maintenance, heavy dependence on the Philippine market.

Opportunities:

Acceptance of global cuisine, technological integration, strategic collaborations.

Threats:

Competition, economic uncertainties, health trends.

PESTLE Analysis Overview

Framework for understanding macro-environmental factors affecting businesses:

Political: Global presence, regulatory compliance.

Economic: Consumer income, trade policies.

Social: Changes in consumer preferences, health concerns.

Technological: Automation, digital marketing.

Legal: Compliance with laws and regulations.

Environmental: Climate change, sustainable practices.

Environmental Scanning as a Business Tool

Necessary for evaluating market conditions and changes affecting growth.

Practical Exercise

Task: Conduct a SWOT Analysis for your proposed business by February 12.

Steps:

Identify strengths, weaknesses, opportunities, and threats related to your ideas.

SWOT Analysis Template

For Product/Service:

Strengths: List 4 strengths.

Weaknesses: List 4 weaknesses.

Opportunities: List 4 opportunities.

Threats: List 4 threats.

Draw a circle and label with the product/service name.

Lesson 4

ownership, where the owner has complete control but also personal liability.

Nature of Entrepreneurial Ventures:

What to Sell:

Merchandising: Engaged in buying and selling products—includes retail and wholesale operations.

Services: Providing services, which can be professional (like legal services) or non-professional (like cleaning services).

Manufacturing: Engaged in buying raw materials to produce finished goods, involves production processes and supply chain management.

Agricultural Enterprises: Focused on producing agricultural goods and livestock—includes farming, aquaculture, and forestry ventures.

Hybrid: Combines characteristics of multiple business types, such as fast-food chains and full-service restaurants, to diversify offerings and maximize market reach.

Lesson 5

Entrepreneurship and Business Structure

Types of Business Structures

Sole Proprietorship

Described as an entrepreneurial venture owned and managed by a single person.

Partnership

Formed by two or more people engaging in an entrepreneurial venture.

Corporation

An enterprise with at least five but not more than fifteen members.

Industry Overview

Service Industry

Focuses on providing services rather than goods.

Merchandise Industry

Involves the buying and selling of goods.

Manufacturing Industry

Entails the production of goods through processes and raw materials.

Guess the Picture Series

Picture Descriptions

First Guess

Second Guess: MANPOWER

Depicts various aspects related to workforce management.

Material Types

Includes plant-based and animal-based materials such as milk, grains, rubber, fruits, etc.

Encompasses mineral-based materials like metals, gemstones, and non-metallic minerals.

Production Factors

The Four Ms of Production

Manpower

Considered the most critical factor; involves recruiting and managing qualified employees effectively.

Materials

Raw materials required for production; factors affecting selection include:

Cost

Quality

Availability

Credibility of suppliers

Materials waste

Types of raw materials: Direct (e.g. silk, wood) and Indirect (e.g. glue, paint).

Machine

Manufacturing equipment; considerations include:

Cost

Equipment capacity

Availability of spare parts

Equipment efficiency

Method

Techniques used in converting raw materials to finished products; considerations include the type of product, equipment, and required skills.

Production System

Overview of the Production System

Input: Materials and resources entering the production process.

Process: Transformation of raw materials into finished products, incorporating Four Ms of production.

Output: Final products that result from the production process.

Market Identification

Understanding the Market

Market Segmentation:

Strategy used to divide the market into smaller segments with distinct needs, recognizing that the entire market cannot be served simultaneously.

Market Segmentation Types:

Geographic: Based on climate, culture, and other location-related factors.

Demographic: Based on gender, age, income, etc.

Psychological: Focuses on needs, wants, attitudes, and personality traits.

Behavioral: Involves perceptions, brand loyalty, and lifestyle characteristics.

Important Points for Consideration

Accessibility of the market segment to the entrepreneur.

Size of the market segment.

Distinctiveness of the market segment.

Lesson 6

Whose Line is it?

This section is presented as a recurring theme throughout the document, suggesting the use of well-known brands and slogans to illustrate points.

Advertising and Marketing Strategies

Advertisements

Includes references to various companies and their promotional taglines such as:

Coca-Cola: "Taste the Feeling™"

Jollibee: Noted as a cultural staple with the phrase "Bida ang saya!"

SM Supermalls: "We got it all for you"

Highlights the effectiveness of brief, impactful phrases in marketing.

Product Promotions

Limited Offers: Describes promotional strategies like discount offers on products:

Example: 10% off on Power Bula, highlighting engagement with the consumer through aggressive marketing.

Unique Selling Proposition (USP)

Definition and Importance

Unique Selling Proposition identifies what makes a product unique compared to competitors.

Communicated through slogans or taglines, providing a focused message about product features that appeal to consumers.

A good USP should:

Be simple and concise

Be assertive

Address customer desires

Crafting an Effective USP

Identify Customer Recall: Think about how to leave a memorable impression on customers.

Analyze Competitors: Understanding competitor offerings is vital for differentiation.

Customer Benefits Focus: Highlighting the value or benefits that customers will receive.

Creativity and Originality: Strive to develop unique and original propositions.

Unique Value Proposition (UVP)

Value Expectations

UVP outlines what customers can expect from a product or service:

It clarifies the benefits and overall value your enterprise promises.

Helps customers understand what distinguishes your offerings from alternatives.

Distinctions Between USP and UVP

USP vs. UVP:

USP: A focused statement that quickens purchasing decisions.

UVP: A broader description covering the complete benefits of the product or service. It comprehensively presents emotional and functional benefits to the consumer.

Final Reflections

Students are encouraged to review the effectiveness of taglines and overall marketing messages.

Emphasis on the significance of clearly defined UVP and USP for business successes.

Lesson 7

Promotion Strategy

Short-Term Objectives:

Effectively communicate product benefits and information to attract consumers and drive sales.

Long-Term Objectives:

Cultivate brand loyalty and enhance consumer awareness through sustained promotional efforts.

Promotion Methods:

Employ diverse techniques including advertising, publicity, personal selling, sales promotions, and direct marketing to reach targeted audiences with tailored messages.

People in Marketing

Short-Term Sales Targets:

Recruit skilled personnel dedicated to production, marketing, and sales to achieve operational efficiency.

Selection Criteria:

Focus on candidates' skills, experience, and alignment with the company’s vision and goals to build a capable team that drives success.

Packaging Techniques

Short-Term Sales Targets:

Align packaging choices with product characteristics: Select appropriate materials (e.g., plastic, can, carton) based on the product's nature.

Design user-friendly packaging that facilitates easy opening, storage, and environmental considerations.

Ensure labeling is attractive, accurate, and compliant with relevant regulations.

Positioning Strategy

Essential Perspective:

Strategically define the product based on customer needs and preferences, allowing differentiation from competitors.

Customer-Driven StEntrepreneurship

Definition

Entrepreneurship: The art of observing correct practices in managing and operating a self-owned wealth-creating business enterprise by providing goods & services that are valuable to customers.

Business

General Definition

Business: An organization or enterprising entity engaged in commercial, industrial, or professional activities (Investopedia).

Economic Activity

Involves the exchange, purchase, sale, or creation of goods and services with the goals of profit and customer satisfaction.

Entrepreneur vs. Businessman

Definitions and Differences

Businessman:

Market player

Profit-oriented

Conventional thinker

Creates a space in existing markets

Entrepreneur:

Market leader

People-oriented

Unconventional thinker

Creates a brand new market

Quote by Joseph Schumpeter

Entrepreneurs innovate not just by using inventions but by introducing new means of production, products, and organizational forms.

Brief History of Entrepreneurship in the Philippines

Overview

The Philippines is recognized as an entrepreneurial country with significant business establishments.

Statistics (As of 2023)

Total business establishments: 1,246,373

Micro businesses: 1,241,733 (99.63%)

Small, Medium, & Large Enterprises: 119,315

Historical Context

Early interaction of Filipinos with foreign traders.

Introduction of bartering systems.

Development into a family-centered, Catholic, capitalistic, and democratic society.

Small and Medium Enterprises (SMEs) as embodiments of entrepreneurship.

Regulatory Framework

1935 Constitution: Initial regulations surrounding entrepreneurship.

Philippine Development Plan (1972-1976): Focus on reinforcing SME sector.

Magna Carta for Micro, Small, and Medium Enterprises of 2008 (RA 9501): Promotion and development framework.

Role of the Department of Trade & Industry (DTI)

Primary agency for promoting and developing MSMEs through assistance in financing, marketing, human resource development, and advocacy.

Importance of Entrepreneurship

Economic Development and Society

Creates Employment: Generates job opportunities.

Develops New Markets: Introduces innovative products and services.

Introduces Innovation: Essential for advancing technology and business practices.

Generates New Sources of Materials: Supplies variety in consumer goods.

Provides More Alternatives for Consumers: Enhances consumer choice.

Stimulates Investment Interest: Encourages investment in new ventures.

Serves as Role Model: Influences future entrepreneurs and businesses.

Utilizes and Mobilizes Indigenous Resources: Optimizes local materials for products.

Brings Social Benefits: Contributes to community development.

Improves Quality of Life: Enhances living standards.

Recap & Summary Statements

Entrepreneurship Main Concepts

Art of Correct Practices: Managing and operating self-owned wealth-creating business enterprises that offer valuable goods/services.

Micro, Small & Medium Enterprises (MSMEs): Crucial for the Philippine economy, representing 99.63% of all registered businesses as of 2023.

Entrepreneur Characteristics

Calculated Risk-Taking: Avoiding unnecessary risks.

Commitment: Dedication to societal welfare and the business.

Feedback-Seeking: Importance of assessing performance for improvements.

Drive to Achieve: Pursuing challenging business goals.

Self-Confidence: Believing in collective capabilities.

Opportunity Orientation: Recognizing opportunities in life.

Innovativeness: Ability to create unique offerings.

Responsibility: Being accountable for business success.

Tolerance for Failure: Learning from unsuccessful attempts.

Entrepreneurial Skills & Competencies

Skills Required

Cognitive Skills: Learning and generating ideas.

Interpersonal Skills: Interaction with stakeholders (workers, customers, suppliers).

Technical Skills: Proficiency in specific fields relevant to the business.

Competencies

Opportunity Competencies: Identifying and seizing market opportunities.

Relationship Competencies: Building connections with individuals/groups.

Conceptual Competencies: Understanding and applying concepts effectively.

Organizing Competencies: Managing resources and team dynamics.

Strategic Competencies: Setting and executing business strategies.

Commitment Competencies: Driving efforts and determination in business ventures.

Social Entrepreneurship

Definition

Social entrepreneurship: An entrepreneurial venture focused on achieving positive social impact.

Importance

Addresses societal issues and contributes to community improvement.

Examples of Social Enterprises in the Philippines

Pro-Enviro: Produces natural and organic personal care products, employs marginalized sectors, and supports local farmers.

Bambike Revolution Cycles: Employs marginalized sectors and promotes sustainable community development.

BamBuHAY: Innovates eco-friendly products and employs marginalized individuals.

Messy Bessy: Offers safe cleaning products and supports education and employment for at-risk youth.

Bayan Brew: Supports local farmers and uses indigenous ingredients.

Lesson 2

Theories on Entrepreneurship

Definition of Theory

Theory: A generalization that explains a set of facts or phenomena and provides a framework for understanding complexities.

It is important to understand that theories are not absolute truths; they can be supported or disproven through systematic observation and comprehensive research.

Entrepreneurship Theories: These theories are substantial because they are grounded in economic events and phenomena that influence the business landscape.

Major Entrepreneurship Theories

Innovation Theory

Founder: Joseph Schumpeter

Concept: Economic development is significantly driven by innovation and structural changes within the industry.

Types of Innovations: Entrepreneurs introduce various innovations that can be categorized into:

Product innovation: Development of new or improved products.

Production method innovation: Introduction of new ways to produce goods.

Market innovation: Changes in strategies regarding how products reach consumers.

Supplier innovation: Innovations that enhance supply chain management.

Industry structure innovation: Transformation in the competitive dynamics of industries.

Keynesian Theory

Founder: John Maynard Keynes

Concept: This theory highlights the critical role of government intervention in stimulating economic growth and fostering entrepreneurship.

Historical Context: Developed during the turbulent times of The Great Depression (1929-1939).

Proposition: Advocates for increased government expenditures and tax reductions as measures to stimulate demand, thereby fostering an environment conducive to entrepreneurship.

Alfred Marshall Theory

Concept: Marshall emphasizes that entrepreneurs are the key drivers of economic activity.

Functions of Entrepreneurs: They play a vital role in assembling essential factors of production: land, labor, capital, and organization.

Market Understanding: Entrepreneurs need an in-depth understanding of the industry in which they operate to innovate and grow effectively.

Risk and Uncertainty-Bearing Theory

Founder: Frank Hyneman Knight

Concept: Entrepreneurs are viewed as essential agents in the production process, linking producers with consumers.

Risk Profile: This theory posits that while all business activities involve some level of risk, entrepreneurs distinguish themselves through their willingness to take on risks and manage uncertainties.

Types of Uncertainties: Uncertainty is considered a crucial factor when producing goods and services, significantly impacting the decision-making process in entrepreneurship.

Other Theories on Entrepreneurship

Weber's Sociological Theory: Stresses the importance of cultural and societal factors in shaping entrepreneurial activity.

Kaldor's Technological Theory: Points to the significance of technological advancements as a catalyst for production enhancement and economic growth.

Leibenstein's Gap-Filling Theory: Illustrates how entrepreneurship addresses gaps in the economic marketplace, filling inefficiencies left by existing market players.

Kirzner's Learning-Alertness Theory: Focuses on the importance of learning and alertness as essential traits for successful entrepreneurs, enabling them to identify opportunities within market gaps.

Recap of Theories on Entrepreneurship

Innovation Theory

Keynesian Theory

Alfred Marshall Theory

Risk and Uncertainty-Bearing Theory

Entrepreneurial Ideas

A key facet of entrepreneurship is the generation and identification of novel ideas that can lead to successful business ventures.

Creation of Entrepreneurial Idea

Identification of Entrepreneurial Process

Creation of New Ventures

Understanding Entrepreneurial Opportunities

Opening of Entrepreneurial Ventures

Sources of Entrepreneurial Ideas

Changes in the Environment: Various shifts can prompt new business ideas:

Physical Environment: Climate, natural resources, and wildlife can create entrepreneurship opportunities.

Societal Environment: Socioeconomic factors, political climates, and technological changes play critical roles in shaping entrepreneurial landscapes.

Industry Environment: This includes influences from government, competitors, suppliers, customers, and employees that impact entrepreneurship.

Technological Discovery & Advancement: Entrepreneurs can find new opportunities by leveraging advancements in technology and innovations that disrupt existing markets.

Government Thrust, Programs, and Policies: Government initiatives and policies can foster entrepreneurship by providing incentives or frameworks that encourage new business growth.

People's Interests: Understanding trends and cycles of interests among consumers allows entrepreneurs to adapt their ventures to align with market demands, ensuring longevity and sustainability.

Past Experiences: Skills and expertise gained from previous work experiences can inspire entrepreneurs to explore related ventures, capitalizing on their knowledge and background.

Recap of Sources of Entrepreneurial Ideas

Changes in the Environment

Technological Discovery & Advancement

Government's Thrust, Programs & Policies

People's Interests

Past Experiences

Lesson 3

Entrepreneurship Overview

Facilitator: Ms. Djhaemy T. Nazareno

Theories on Entrepreneurship

Focus on different theories that explain entrepreneurial behavior and success.

Connection between various factors and entrepreneurship.

Importance of understanding these theories for aspiring entrepreneurs.

Technology and Entrepreneurship

Examination of how technological advancements influence entrepreneurship.

Adaptation of entrepreneurs to new technologies in business practices.

Innovation driven by technological changes.

Government and Entrepreneurship

Role of government support and policies in fostering entrepreneurship.

Regulations that affect business operations and growth opportunities.

Government initiatives aimed at encouraging new businesses.

People’s Interests and Entrepreneurship

Importance of understanding consumer interests for business success.

Market demand driven by changing preferences and consumer trends.

Aligning business strategies with consumer desires.

Past Experiences and Entrepreneurship

How prior experiences shape entrepreneurial decisions.

Learning from successes and failures in previous ventures.

Utilizing personal history to inform future business strategies.

Environment and Entrepreneurship

Understanding how external environments impact business success.

Elements of the environment influencing entrepreneurship:

Physical Environment

Societal Environment

Industry Environment

Changes in the Environment

Constant evolution within various environments affects enterprise strategies.

Entrepreneurs must adapt to physical and societal shifts.

Environmental Scanning

Definition: Gathering and evaluating information regarding environmental changes.

Importance of assessing the physical, societal, and industry factors in decision making.

Significance of Environmental Scanning

Identifies trends, threats, and opportunities within the environment.

Helps in understanding factors for successful entrepreneurial ventures.

Informs strategic planning and direction for businesses.

Environmental Scanning Tools

Key methodologies for analyzing business environments:

SWOT Analysis: Strengths, Weaknesses, Opportunities, Threats.

PESTEL Analysis: Political, Economic, Social, Technological, Environmental, Legal factors affecting business.

SWOT Analysis

Developed by George Albert Smith Jr and Roland Christensen.

Components:

Strengths:

Business capabilities providing a competitive advantage.

Weaknesses:

Internal deficiencies that need addressing.

Opportunities:

External business conditions that present potential for growth.

Threats:

External challenges that could negatively impact the business.

Example: Jollibee’s SWOT Analysis

Strengths:

Emotional brand resonance, diverse menu, unwavering quality, global expansion.

Weaknesses:

Challenges in foreign markets, consistency maintenance, heavy dependence on the Philippine market.

Opportunities:

Acceptance of global cuisine, technological integration, strategic collaborations.

Threats:

Competition, economic uncertainties, health trends.

PESTLE Analysis Overview

Framework for understanding macro-environmental factors affecting businesses:

Political: Global presence, regulatory compliance.

Economic: Consumer income, trade policies.

Social: Changes in consumer preferences, health concerns.

Technological: Automation, digital marketing.

Legal: Compliance with laws and regulations.

Environmental: Climate change, sustainable practices.

Environmental Scanning as a Business Tool

Necessary for evaluating market conditions and changes affecting growth.

Practical Exercise

Task: Conduct a SWOT Analysis for your proposed business by February 12.

Steps:

Identify strengths, weaknesses, opportunities, and threats related to your ideas.

SWOT Analysis Template

For Product/Service:

Strengths: List 4 strengths.

Weaknesses: List 4 weaknesses.

Opportunities: List 4 opportunities.

Threats: List 4 threats.

Draw a circle and label with the product/service name.

Lesson 4

ownership, where the owner has complete control but also personal liability.

Nature of Entrepreneurial Ventures:

What to Sell:

Merchandising: Engaged in buying and selling products—includes retail and wholesale operations.

Services: Providing services, which can be professional (like legal services) or non-professional (like cleaning services).

Manufacturing: Engaged in buying raw materials to produce finished goods, involves production processes and supply chain management.

Agricultural Enterprises: Focused on producing agricultural goods and livestock—includes farming, aquaculture, and forestry ventures.

Hybrid: Combines characteristics of multiple business types, such as fast-food chains and full-service restaurants, to diversify offerings and maximize market reach.

Lesson 5

Entrepreneurship and Business Structure

Types of Business Structures

Sole Proprietorship

Described as an entrepreneurial venture owned and managed by a single person.

Partnership

Formed by two or more people engaging in an entrepreneurial venture.

Corporation

An enterprise with at least five but not more than fifteen members.

Industry Overview

Service Industry

Focuses on providing services rather than goods.

Merchandise Industry

Involves the buying and selling of goods.

Manufacturing Industry

Entails the production of goods through processes and raw materials.

Guess the Picture Series

Picture Descriptions

First Guess

Second Guess: MANPOWER

Depicts various aspects related to workforce management.

Material Types

Includes plant-based and animal-based materials such as milk, grains, rubber, fruits, etc.

Encompasses mineral-based materials like metals, gemstones, and non-metallic minerals.

Production Factors

The Four Ms of Production

Manpower

Considered the most critical factor; involves recruiting and managing qualified employees effectively.

Materials

Raw materials required for production; factors affecting selection include:

Cost

Quality

Availability

Credibility of suppliers

Materials waste

Types of raw materials: Direct (e.g. silk, wood) and Indirect (e.g. glue, paint).

Machine

Manufacturing equipment; considerations include:

Cost

Equipment capacity

Availability of spare parts

Equipment efficiency

Method

Techniques used in converting raw materials to finished products; considerations include the type of product, equipment, and required skills.

Production System

Overview of the Production System

Input: Materials and resources entering the production process.

Process: Transformation of raw materials into finished products, incorporating Four Ms of production.

Output: Final products that result from the production process.

Market Identification

Understanding the Market

Market Segmentation:

Strategy used to divide the market into smaller segments with distinct needs, recognizing that the entire market cannot be served simultaneously.

Market Segmentation Types:

Geographic: Based on climate, culture, and other location-related factors.

Demographic: Based on gender, age, income, etc.

Psychological: Focuses on needs, wants, attitudes, and personality traits.

Behavioral: Involves perceptions, brand loyalty, and lifestyle characteristics.

Important Points for Consideration

Accessibility of the market segment to the entrepreneur.

Size of the market segment.

Distinctiveness of the market segment.

Lesson 6

Whose Line is it?

This section is presented as a recurring theme throughout the document, suggesting the use of well-known brands and slogans to illustrate points.

Advertising and Marketing Strategies

Advertisements

Includes references to various companies and their promotional taglines such as:

Coca-Cola: "Taste the Feeling™"

Jollibee: Noted as a cultural staple with the phrase "Bida ang saya!"

SM Supermalls: "We got it all for you"

Highlights the effectiveness of brief, impactful phrases in marketing.

Product Promotions

Limited Offers: Describes promotional strategies like discount offers on products:

Example: 10% off on Power Bula, highlighting engagement with the consumer through aggressive marketing.

Unique Selling Proposition (USP)

Definition and Importance

Unique Selling Proposition identifies what makes a product unique compared to competitors.

Communicated through slogans or taglines, providing a focused message about product features that appeal to consumers.

A good USP should:

Be simple and concise

Be assertive

Address customer desires

Crafting an Effective USP

Identify Customer Recall: Think about how to leave a memorable impression on customers.

Analyze Competitors: Understanding competitor offerings is vital for differentiation.

Customer Benefits Focus: Highlighting the value or benefits that customers will receive.

Creativity and Originality: Strive to develop unique and original propositions.

Unique Value Proposition (UVP)

Value Expectations

UVP outlines what customers can expect from a product or service:

It clarifies the benefits and overall value your enterprise promises.

Helps customers understand what distinguishes your offerings from alternatives.

Distinctions Between USP and UVP

USP vs. UVP:

USP: A focused statement that quickens purchasing decisions.

UVP: A broader description covering the complete benefits of the product or service. It comprehensively presents emotional and functional benefits to the consumer.

Final Reflections

Students are encouraged to review the effectiveness of taglines and overall marketing messages.

Emphasis on the significance of clearly defined UVP and USP for business successes.

Lesson 7

Promotion Strategy

Short-Term Objectives:

Effectively communicate product benefits and information to attract consumers and drive sales.

Long-Term Objectives:

Cultivate brand loyalty and enhance consumer awareness through sustained promotional efforts.

Promotion Methods:

Employ diverse techniques including advertising, publicity, personal selling, sales promotions, and direct marketing to reach targeted audiences with tailored messages.

People in Marketing

Short-Term Sales Targets:

Recruit skilled personnel dedicated to production, marketing, and sales to achieve operational efficiency.

Selection Criteria:

Focus on candidates' skills, experience, and alignment with the company’s vision and goals to build a capable team that drives success.

Packaging Techniques

Short-Term Sales Targets:

Align packaging choices with product characteristics: Select appropriate materials (e.g., plastic, can, carton) based on the product's nature.

Design user-friendly packaging that facilitates easy opening, storage, and environmental considerations.

Ensure labeling is attractive, accurate, and compliant with relevant regulations.

Positioning Strategy

Essential Perspective:

Strategically define the product based on customer needs and preferences, allowing differentiation from competitors.

Customer-Driven Strategy Focus Areas:

Prioritize customer satisfaction with high-quality products.

Minimize customer costs associated with acquiring products.

Utilize customer insights to enhance promotional efforts.

Ensure quality assurance in personnel and services to maintain brand integrity.

Emphasize safety and sustainability in packaging solutions.

Simplify the decision-making process for consumers regarding product positioning.

Integrated Marketing Mix

Sales Targets:

Implement a cohesive approach across all 7Ps to maximize the impact of marketing efforts.

When correctly applied, the marketing mix can significantly modify and enhance consumer purchasing behavior, leading to greater sales success and market presence.

rategy Focus Areas:

Prioritize customer satisfaction with high-quality products.

Minimize customer costs associated with acquiring products.

Utilize customer insights to enhance promotional efforts.

Ensure quality assurance in personnel and services to maintain brand integrity.

Emphasize safety and sustainability in packaging solutions.

Simplify the decision-making process for consumers regarding product positioning.

Integrated Marketing Mix

Sales Targets:

Implement a cohesive approach across all 7Ps to maximize the impact of marketing efforts.

When correctly applied, the marketing mix can significantly modify and enhance consumer purchasing behavior, leading to greater sales success and market presence.