ENTREPRENEURSHIP REVIEWER are vital for the business.

We should
Francis Carlo M. Abelar learn to deliver more than what is
12STEM-14 expected of our services.
Ms. Kristene Ayap  Organization: An entrepreneur must
know how to manage the business,
ENTREPRENEURSHIP which also includes the financial aspect
of it.
 “Capacity and willingness to develop,
organize, and manage a business venture Characteristics of an Entrepreneur
along with any of its risks in order to make a
1. Mind; Open-minded and Innovative
profit." (Business Dictionary)
2. Eyes; Vision and direction
 “Process of designing, launching, and running
3. Ears; Listens to people
a new business, which is often initially a small
4. Mouth; Communicates well
business” (Wikipedia)
5. Nose; Smells what sells
 “The activity of setting up a business or
6. Hands; Action-oriented
businesses, taking on the financial risks in the
7. Heart; Passionate
hope of profit” (Oxford Dictionaries)
8. Guts; Risk-taker
Entrepreneur 9. Skin (Thick); Tough
10. Legs; Perseverance
 “A person who organizes and operates a
business or businesses, taking on greater Core Competencies of an Entrepreneur
than normal financial risks in order to do so” 1. Cognitive Skills
 “Someone who exercises intiative by  Must know how to understand written
organizing a venture to take benefit of an materials.
opportunity and, as the decision maker,
 Learn and Apply new Information
decides what, how, and how much of a good
 Solve problems
or service will be produced. (Business
 Create new ideas
Dictionary)
2. Technical Skills
 “Not necessarily motivated by profit but
2.a. Information Technology
regard it as a standard for measuring
Research and Development
achievement or success” (Schumpeter)
2.b. Feasibility Study and Business Plan
 An Entrepreneur... [ACRO]
Technical Writing
 Attitude: Must be optimistic, You must 2.c. Organization and Management
learn to believe in your business and you Marketing, Operations, and Finance
must have determination. You must 3. Interpersonal Skills
have wit. You should allow yourself to
 Non-verbal/Verbal Communication
learn the hard way.
 Listening
 Creativity: An entrepreneur pushes for
 Leading
new ideas. He/she pushes himself to the
 Negotiating
limits and at the same time thinks
outside the box. Competitive Advantage of an Entrepreneur
 Relationship: An Entrepreneur must
1. Customer Focus
establish a good relationship with both
the clients and suppliers, both of which

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  It is where you can serve your
customers/clients directly and
effectively.
2. Quality Performance
 You should give the highest quality
performance to your customers/ clients.
 Should be part of the business culture.
3. Integrity and Responsibility
 A solid reputation for honesty and
dependability to good customer service
and excellent product quality.
 Trust is the foundation of all
relationships, including business
relationships.
4. Innovation
 Originality
 Good at developing other’s ideas/
Improving existing products
 Taking inventions or innovations
elsewhere and putting them into use,
which requires marketing, sales and
organization.
5. Niche Market
 Targeting a specific group of customers
who have identifiable but very narrow
range of product/service interests and
compromise.
 Covers specialized products.
 Has a particular geographical area.
5 Levels of Entrepreneurial Development
1. Self-Employed
 You do EVERYTHING alone.
 You have all the time in the world.
2. The Manager
 Makes a team.
 Finds leaders.
 Hire people/staff.
3. The Leader
 Knows how to efficiently run a business.
 Knows which characteristics to find in a
person applying.
4. The Investors
 Grows and expands the company
 Knows how to learn from others
5. The True Entrepreneurs
 Invests – Financially free
The Field of Expertise of an Entrepreneur
a. Technopreneurs
 Pulls technology as the core of his
business model.
b. Social Enterprise
 Takes advantage of the country’s social
problems and turns them into profitable
institutions with the intention of helping
the disadvantaged community than
making profit.
 Covers the 3P’s: People, Profit, and
Planet
c. Intrapreneurs
 An entrepreneur in a large company
who is tasked to think, establish, and run
a new big idea or project.
 Usually the product managers or the
business development managers of a
company.
d. Extrapreneurs
 They hop from one company to another
to pirate these.
Chapter 1: The Business Plan (Format and Process
Development)
What is a Business Plan for?
 Used to convince prospective business
investors about the soundness and potential
of their business.
 They need to convey the capabilities and
competencies of their owners and managers.
 Must be able to “sell” the proponent and the
business proposition to the audience.
Contents of a Business Plan
 The Business Concept and the Business
Model
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  Business Concept – contains the essence
of the enterprise in a concise but
powerful manner. It stresses the value
of the product offering to the target
customers who would most likely but it.
 Business Model – is a formula on how
the enterprise exactly plans to make
money out of the business.
 The Business Goals
 Shows the future and lone-term
prospects of the enterprise. It is
composed of the vision, mission,
objectives, key result areas, and
performance indicators of the
enterprise.
 The Executive Summary
 Contains everything that is relevant and
important to the business audience.
 A synthesis of the entire plan. Must
contain the major argumentations of
the business proponent on why the
business will work and succeed,
 Describe the products/services of the
enterprise, their features and attributes,
and why they are the right ones to
deliver to the customers.
 Should discuss and justify the Enterprise
Strategy (ES) and Enterprise Delivery
System (EDS)
 Should render all the major institutional,
market, operations, and organizational
strategies previously cited into financial
strategies and forecasts.
 Investment requirements should be
presented along with the summaries of
the projected income statements,
balance sheets, cash flows, and funds
flow and their analyses and conclusions.
Yields and returns, along with risks and
contingency measures, should round up
this section.
 Should contain a section on the
environmental and regulatory
compliance of the proposed business, as
well as the more proactive programs to
become a more responsible corporate
citizen.
 Should present the capital structure of
the proposed business and show how
this structure will respond to the
investment programs and financial
forecasts of the enterprise.
 Can only be written last in order to
capture findings and insights of the
other parts, but for presentation
purposes, it is placed in the first part.
The Business Proponents/ The Four Types of
Stakeholders
1. Resource Mobilizers and Financial Backers:
they will want to know who else are on board
to share the burden of raising money to see
the whole thing through.
2. Technology providers and applicators: they
will want to know if there will be sufficient
funds to pay for the technology.
3. Governance and Top Management: They will
want to know the strategies and performance
indicators are being proposed.
4. Operating and Support Team: they will want
to know what programs, activities, tasks, and
resources would be in place.
Target Customers and the Main Value Proposition
 The Business proponent must be very precise
about the target audience or target
customers. Target Customers must be
sufficient size, sufficient paying capacity, and
have sufficient interest to purchase the
products being offered by the enterprise. The
Main Value Proposition is the unique selling
proposition of the enterprise.
 Knowing where they are concentrated, the
business should pinpoint what the customers
buy, how they buy, when they buy, there they
buy, and what convinces them to buy.
Enterprise Strategy and Enterprise Delivery System
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  The business plan should expound on the 7. Recruiting
Enterprise Strategy (ES) by mapping the
Financial Forecasts: Expected Returns, Risks, and
competitive landscape and by situating the
Contingencies
enterprise and its competitors as to their
strategies and chosen positioning.  Covers the Expected Return on Sales (RoS),
 The Enterprise Delivery System starts from expected Return on Assets or Investments,
the Input (resources mobilized), proceeds to and expected Return on Stockholder’s
the Throughput (the transformation process equity.
where input are converted to output), and
Environmental and Regulatory Compliance
produces the Output (the products/services).
 The output are then marketed to the  The business plan must articulate the laws,
customers (in case of goods) or experienced rules, and regulations governing the business,
by the customers (services) and the industry that the enterprise is in. It
 Customer satisfaction level, profits generated, should ascertain that all the necessary
and the performance of people from the permits, licenses, and authority to use
transaction are outcomes of the EDS. proprietary intellectual capital had either
been secured or would definitely be secured.
6 M’s of Operation
Capital Structure and Financial Offering: Returns
 Designed to cover the input portion of the EDS
and Benefits to Investors, Financiers, and Partners
Design Framework.
 Include:  Contains the capital structure and financial
1. Money offerings of the enterprise including some
2. Men discussion on who are the investors, the
3. Machines financiers, and the partners of the enterprise.
4. Materials
Chapter 2: Opportunity Seeking, Screening, and
5. Methods
Seizing
6. Management
Opportunity Seeking
7 P’s of Marketing
 Entrepreneurs are innovative opportunity
1. Positioning
seekers. They have endless curiosity to
2. Product
discover new or different ideas and see
3. Packaging
whether these ideas will work in the
4. Place
marketplace.
5. People
 They create value by introducing new
6. Promotion
products or services or finding better ways of
7. Price
making them.
8R’s of Human Resource
Entrepreneurial Mind Frame, Heart Flame, and Gut
1. Reviewing Game
2. Rewarding
 The Entrepreneurial Mind Frame allows the
3. Retooling
entrepreneur to see things in a very positive
4. Recycling
and optimistic light in the midst of crisis or
5. Resonating
difficult situations. They use these problems
6. Routing
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 as inspirations of creating something
innovative.
 The Entrepreneurial Heart Flame is the
surging passion. They are drawn to find
fulfillment in the act and process of discovery.
 The Entrepreneurial Gut Game refers to the
ability of the entrepreneur to sense without
using the five senses (aka Intuition). It also
connotes Courage or confidence in one’s self
and the firm belief that everything is within
reach.
The Many Sources of Opportunities
1. The Macro Environmental Sources of
Opportunities (SPEET)
a. Socio-Cultural Environment
 Includes the demographics and
cultural dimensions that govern
the relevant entrepreneurial
endeavor.
 Helps the entrepreneur assess the
The Product Chain and Value-Added Chain
trends and dynamics of the bigger
consumer population, their
beliefs, tastes, customs, and
traditions.
b. Political Environment
 Defines the governance system of
the country or the local area of
Market Source of Opportunities
business.
 Includes all laws, rules, and
regulation that govern business
practices as well as permits,
approvals, and licenses necessary
to operate the business.
c. Economic Environment
 Covers the supply and demand,
import and export, foreign
exchange rate, and purchasing
Micromarket
power.
d. Ecological Environment
 The growing awareness in the
world today make this factor more
and more important for countries
and industries.
e. Technological Environment
 The new scientific and
technological discoveries which
often lead to the launch and
commercialization of new
products.
2. Industry Sources of Opportunities
 Defining the industry makes it easier for
opportunities to pop up.
 Some participants in an industry include:
a. Rivals or Competitors in a
particular type of business (ex.
Jollibee vs. Mcdo (Food Industry),
Samsung vs. Apple (Devices
Industry), etc.)
b. Suppliers of input to rivals.
c. Consumer market segments
d. Substitute products or services
e. All other support and enabling
industries.
 The Product Chain focuses on the volume
produced or converted at each link of the
chain. The Value-Added Chain focuses on the
economic rather than the volume aspect of
the chain.
 Market Trend Analysis is conducted by
determining critical variable which would
affect the direction of the industry.
 Market traits, characters, and behavior to
match the product offerings of an enterprise.
 Market Source of Opportunities can be
discovered from increased or decreased
demand as well as higher or lower supply.
 Refers to the specific target market segment
of a particular enterprise. These are the target
customers that represent the immediate
customers of an enterprise, meaning those
who are currently buying the goods or services
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 offered by the enterprise and its direct
competitors.
 The need for segmentation would be crucial in
micro market analysis because the definition
of value for money differs from group to
group.
Consumer Preferences, Piques, and Perceptions
Opportunity Screening
 Consumer Preferences: refer to the taste of
particular groups of people.
 Consumer Piques/Dislikes: refer to things
that irritate customers.
 Consumer Perceptions: it is where
sometimes, a product is changed by the way
consumers perceive them.
Other Sources of Opportunities
12 R’s of Opportunity Seeking
1. Consumer Preferences change over time.
2. People’s tastes in clothes, music, shoes,
entertainment, dance, sports, etc. have
evolved over the years.
3. What piques customers is a great source of
opportunities.
4. Before the customer is won over, there is first
a battle for the mind. Next, there is a battle
for the heart. Finally, there is a battle for the
wallet.
5. The longer the customer wants to use the
product, the greater the chance of creating
lasting loyalty.
6. Opportunities abound in shaping consumer
perceptions or occupying spaces in their
minds or places in their hearts that have not
yet been filled.
7. New Inventions, System, and Work
Processes, New insights about the human
psyche, new applications for old knowledge,
new revelation about how the physical world
works, new interpretations, new
combinations based on the convergence of
previous technologies, new outlooks about
how life should be led, and a host of other
new things are tremendous sources of
opportunities.
8. Determining Personal Preferences and
competencies lay the foundation for a new
business venture.
9. Unexpected occurrences in both the external
and internal environment of the enterprise
indicate the significant changes are
happening and opportunities are sprouting.
 After opportunity seeking comes the rigorous
process of Opportunity Screening because of
the many opportunities possible for the
entrepreneur; It is important to come up with
a short list of a few very promising
opportunities which could be scrutinized in
detail.
1. Relevance: to vision, mission, and objectives
of the entrepreneur.
2. Resonance: to values. The opportunity must
match the values and desired virtues that you
have or wish to impart.
3. Reinforcement of Entrepreneurial Interests
4. Revenues: where you determine the sales
potential of the products or services;
highlights the business worth of your effort.
5. Responsiveness: highlights how you act for
the customer’s needs and wants.
6. Reach: Opportunities that have good chance
of expanding through branches,
distributorships, dealerships, or franchise
outlets in order to attain rapid growth.
7. Range: The opportunity can potentially lead to
a wide range of possible product or service
offerings, thus, tapping many market
segments of the industry.
8. Revolutionary Impact: where you think the
product will be most likely the “next big thing”
or a game changer.
9. Returns: includes high profile recognition or
image projection.
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 10. Relative Ease of Implementation: The
doability or asks if the opportunity be
relatively easy to implement.
11. Resources Required
12. Risks
The Pre-Feasibility Study
 Ascertains the viability of the opportunity.
 The idea is to focus on a few key items that
could make or break the business concept.
 The entrepreneur must go down to the details
and take time to consider the following
factors:
 Market Potential and Prospects
 Availability and Appropriateness of
Technology
 Project Investment and Detailed Cost
Estimates
 Financial Forecast and Determination of
Financial Feasibility
Market Potential and Prospects
 Based on the estimated number of possible
customers who might avail of the product or
service.
Segmenting the Market
 Using a set of demographics will be the most
basic approach in determining the target
segment.
 You might have to look into other specific
classifications that are relevant to the market
you are targeting.
Assessing Competition
 Market Potential is affected by the number of
establishment supplying and serving your
target customers.
 This process would determine how saturated
the market is in the given area of coverage.
 The more suppliers and competitors there are
within the area, the greater level of saturation.
Estimating Market Share and Sales
 You must quantify the market potential in a
systematic way.
 Define the market coverage or reach he or she
wants to serve.
 Determine the broad market segment within
the area or total targeted population.
Technology Assessment and Operations Viability
 The entrepreneur would be able to determine
whether the product or services offering will
meet customer demands or not.
 The Four target customer expectation
affecting the scale:
1. Quantities Demanded: determines the
needed capacity of operations.
2. Quality Specification Demanded:
dictates the quality input or raw
materials, quality assurance, quality
output, and quality outcomes.
3. Delivery Expectations: knowing how
much, how frequent, and when to
deliver to customers.
4. Price Expectations: The selling price of
the product or services would be
evaluated by the customers according to
the value they would receive.
Investment Requirements and Production/
Servicing Costs
 Where the entrepreneur determines how
much money is needed to start the business
opportunity with consideration to the
technologies and operating levels required.
 Pre-Operating Costs: costs related to the
preparation for the launch of the business.
Includes the Pre-feasibility study, in-depth
feasibility study, market research, product
development, organizational development,
and initial promotional costs.
 Production/Service Facility Investment:
refers to the long-term investment for the
actual business establishment, including
investment in land, buildings, machinery,
equipment, computers, software, etc.
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  Working Capital Investment: needed to
operationalize the business, composed of
cash, accounts receivables, and inventories.
Financial Forecasts and Determination of the
Financial Feasibility
 Refers to the monetary transactions that the
business is expected to engage in.
 Income Statement: financial statement that
measures an enterprise’s performance in
terms of revenue and expenses over a certain
period. REVENUES – EXPENSES = INCOME
OR PROFIT (LOSS)
 Balance Sheet: Assets: represent all the
investment in the enterprise including the
initial investments that you considered in the
pre-feasibility study. Includes cash (on hand or
in bank), accounts receivable, inventory of
goods, equipment, and machinery, etc.
ASSETS = LIABILITIES + EQUITY
 Financial Ratios and Measurements: covers
the payback period or how long will it take for
him to get back what he or she has invested in
the enterprise.
𝑰𝒏𝒄𝒐𝒎𝒆 𝑷𝒂𝒚𝒃𝒂𝒄𝒌 𝑷𝒆𝒓𝒊𝒐𝒅
𝑻𝒐𝒕𝒂𝒍 𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕
=
𝑨𝒏𝒏𝒖𝒂𝒍 𝑵𝒆𝒕 𝑰𝒏𝒄𝒐𝒎𝒆 𝑨𝒇𝒕𝒆𝒓 𝑻𝒂𝒙𝒆𝒔
 Return on Sales (RoS): calculates how much
profit the enterprise is earning for each peso
sold.
𝑵𝒆𝒕 𝑷𝒓𝒐𝒇𝒊𝒕 𝒂𝒇𝒕𝒆𝒓 𝑻𝒂𝒙𝒆𝒔
 𝑹𝒆𝒕𝒖𝒓𝒏 𝒐𝒏 𝑺𝒂𝒍𝒆𝒔 =
𝑺𝒂𝒍𝒆𝒔
Opportunity Seizing
 The Entrepreneur has an ideas as to where he
or she will locate the business and how he or
she will market the product or service.
 Must be able to determine the crucial success
factors that enable other players in the same
industry.
Crafting a Position Statement
 The entrepreneur is advised to look at other
competitors in the market place. Details such
as their major buyers, attributes or features
that make their products more attractive will
give the entrepreneur an idea.
 Where the Main Value Proposition (MVP) is
introduced.
Conceptualizing the Product or Service Offering
 After making an assessment of the competing
products, the entrepreneur must then
conceptualize his or her own products. A
concept is an idealized abstraction of the
product or service to be offered to the
preferred market of the entrepreneur.
Designing, Prototyping, and Testing the Product
 Designing: the entrepreneur must render the
concept and translate it into its very physical
and very real dimensions.
 Prototyping: Building a prototype of the
product that will be ready for actual testing.
 Testing: wherein the entrepreneur tests his
product or services to a specific group of
people, entailing their opinions and outlooks
on the product.
Implement, Organizing, and Financing
 A good planner and programmer must make
several important choices to achieve desired
end results.
1. Choose Correct Technology – the one
that would produce the output that
would meet quality specifications.
2. Choose the right people – who can
perform the technical and managerial
functions.
3. Design the Operating Workflow –
assures the effective, economical, and
efficient production of the output.
4. Specify Systems and Procedures – that
would governs the enterprise, motivate
and discipline the work force and satisfy
customers.
5. Design the Organization Architecture –
will allow people to function at their
best.
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