ENTREPRENEURIAL PROCESS/
ENTREPRENEURIAL DISCIPLINE
- is a step-by-step procedure in establishing any
kind of business that an entrepreneur has to
undergo.
STEPS IN THE ENTREPRENEURIAL PROCESS
- Opportunity spotting and assessment /
- Discovery
- Developing a business plan /
- Development of concept
- Determining the capital structure / Organizing
Resources
- Running the business / Implementation
STEPS IN THE ENTREPRENEURIAL PROCESS
1. Opportunity Spotting and Assessment
The stage in which the entrepreneur generates
ideas, recognizes opportunities, and studies the
market.
- Consumers are reliable sources of opportunity
information because markets need originate from
them.
- The entrepreneur’s toughest job is to carefully
assess the opportunity through estimation of
opportunity length, capitalization required, threats,
profitability, and calculation of real and perceived
value.
- Entrepreneurs should also assess if the
opportunity is aligned with personal goals and
attributes.
2. Developing a Business Plan
Business plan - is a comprehensive paper that
details the marketing, operational, human resource,
financial, strategic and tactics of the business
3. Determining the Capital Needs
A big idea can never be translated into reality if the
entrepreneur’s resources are limited.
-Calculate the resources needed to establish the
business.
4. Running the Business
All aspect of the business plan should be critically
observed from the operations, marketing and
sales, human resources, finance and strategy
implementation.
Opportunity spotting and assessment /
Discovery
1. Evaluate the identified opportunity
2. Conceptualize and measure the opportunity
- Conduct surveys to test the market Determine the
consumers’ needs and wants
3. Identify the perceived value of the opportunity to
the company and the customers
4. Identify the perceived value of the opportunity to
the company and the customers
5. Scan the strengths and weaknesses of
competitors
- Research through survey and interviews
6. Match the opportunity with the entrepreneur's
skills and objectives
- Consider your hobbies and skills
Scanning the marketing environment
- is the starting point of any new venture that
involves understanding and knowing the intricacies
of macroenvironment, microenvironment, and
internal environment.
- The process of seeking, screening and seizing is
adapted to create the suited product for an
opportunity.
- The general rule is to find the opportunity first
before coming up with a new product or service.
SEEKING, SCREENING , AND SEIZING
Opportunity- is an entrepreneur’s business idea
that can potentially become a commercial product
or service in the future.
Seeking the opportunity - is the most difficult
process of all, due to the number of options that the
entrepreneur will have to choose from.
Seeking the opportunity
Macroenvironmental sources :
a. STEEPLED- mnemonic for Sociocultural,
Technological, Economic, Environmental, Political,
Legal, Ethical, and Demographic factor.
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 running.\
Micromarket sources :
a. Consumer preferences, interest, and
perception. These are the current needs and
wants of potential customers that should be
discovered right away by budding entrepreneur.
Needs - is recognized when a customer believes
that there is a difference between his or her current
situation versus his or her desired condition.
Want - is recognized when a customer believes that
there is a specific product or service that can
perfectly suit the need
b. Competitors - Recognizing and understanding
potential competitors will aid the entrepreneur to
develop a product or service that is unique and will
surely stand out from the competition.
4Ps of marketing ( product, place, price, and
promotion )
c. Unexpected opportunities from customers -
the most brilliant ventures come from the most
unexpected opportunities
d. Talents, hobbies, skills, and expertise.
-business opportunities do not just come from
outside forces, but also from within the - Technology incentives
entrepreneur. - Legislation regarding technology
e. irritants in the marketplace such as - Communication infrastructure
deterrents, problems, complaints, and delays. - Access to newest technology
- entrepreneurs see opportunities in situations - Internet infrastructure and penetration
where there is recurring problem or sometimes
when there is no more hope in solving the problem. Economic Factors
f. Location - entrepreneurs just have to look at - play a vital role in the scanning of marketing
their ecosystem and they will be able to spot a environment because economic factors directly
business opportunity right away. affects any business venture.
- Growth rates
Methods of Generating Ideas - Inflation rates
1. Focused group discussion (FGD) - in this - Interest rates
method, a moderator handles a very open, - Exchange rates
free-flowing, and in-depth discussion with a group - Unemployment trends
of people who can provide insightful ideas about a - Labor cost
new product or service that will fill a market need. - Stages of business cycle
2. Brainstorming - is an activity that allows the - Trade flows and patterns
participants to share creative ideas. - Level of consumers' disposable income
a. no destructive criticism or judgment is allowed - Monetary policies
b. wilder ideas are accepted - Fiscal policies
c. more ideas are preferred Price fluctuations
d. improvement of others' ideas is allowed - Stock market trends
3. Brainwriting or Internet brainstorming -
this is exactly the same as brainstorming except that Environmental or Ecological Factors
the channel used is not face-to-face, but in writing - should be given much importance in conducting a
or online. business especially when the world has already
4. Problem inventory analysis - this method is suffered severely from human-induced calamities.
similar to the FGD except that the participants are - Weather
already given an inventory of product and service - Climate change
problems. - Laws regulating environment pollution
- Air and water pollution
STEEPLED Analysis - Recycling
Sociocultural - Waste management
Technological - Attitudes toward “green” or ecological products
Economic - Endangered species
Environmental - Attitudes toward and support for renewable
Political energy
Legal
Ethical Political Factors
Demographic factor - are mostly induced by government policies and
administrations, which can have a strong effect in
Socio-cultural Factors the entrepreneur's business.
-represent a general view of locality's traditions, - Government stability and likely changes
customs, beliefs, norms, and perceptions. - Bureaucracy
-affect how a person of the locality behaves and - Corruption level
reacts to marketing and selling activities. - Tax policy
- Health consciousness - Freedom of press
- Education level - Rule of law
- Attitudes toward imported goods and services - Government effectiveness
- Attitudes toward the person's lifestyle - Political rights
Attitudes toward product quality and customer
service Legal Factors
- Attitudes toward saving and investing - related to political factors, legal factors are
- Emphasis on safety government laws and regulations that can restrict or
- Buying habits allow business activities.
- Religion and beliefs Legal Factors and examples :
- Anti-trust law
Technological Factors - Discrimination law
- are composed of innovations of an existing - Copyright, patents / intellectual property rights
technology or an invention of a new one mostly on - Consumer protection
applied science and engineering research areas. - Employment law
- Basic infrastructure level - Health and safety law
- Rate of technological change - Data protection law
- Spending on research and development
Ethical Factors
- serve as an entrepreneur's guide on how to be
ethical in running the business
- Ethical advertising and sales practices
- Accepted accounting, management , and
marketing standards
- Attitude toward counterfeiting and breaking
patents
- Attitude toward development and well-being of
employees
Demographic Factors
- are the characteristics of the people in the market.
Population growth rate
- Age distribution and life expectancy rates
- Gender distribution
- Social classes
- Family size and structure
- Minorities
5 Levels of Entrepreneurial Development
1. SELF-EMPLOYED
 simply put, not comfortable with the
routines of a desk job.
 They do not want to conform to a fixed
working schedule.
 They want to do things in their own way and
start to feel agitated when controlled by the
power.
2. MANAGER
 Entrepreneurs feel the need to step up and
ask some help from the people around them.
 They delegate and hire potential employees
to do the work.
3. LEADER
 Entrepreneurs in this level seeing their
people flourish, stepping up and producing
great result with minimal supervision.
 Entrepreneurs at this stage now focus on
the big pictures and strategic direction of
their business rather than in generating
sales and operating business.
4. INVESTOR
 they look for more opportunities for their
business to grow.
 They may either purchase one or two
businesses that can potentially add value to
the company or sell their established
business to potential entrepreneur.
 important assets of the company--its people and
5. TRUE ENTREPRENEUR
 they aim for quality and excellence in their
work.
 In this level, true entrepreneurs now have
an income that keeps on multiplying even if
they do not put much effort.
 They fully learned and continue to practice,
a four steps of thinking;
 Idealization – dreams enormously and
desire to build an ideal environment.
 Visualization – starts to create plans to
make the dream a reality.
 Verbalization - sharing their ideas with
other people, knowing their vision is already
occurring.
 Materialization- happens when the vision
becomes reality.
Entrepreneur's field or expertise
Technopreneur ; comes from the word
technology and entrepreneur.
Social entrepreneur is one who takes
advantage of the country's social problems and
turn them to profitable institution with the
intention of helping the disadvantaged
community rather than making profit.
Social enterprises work together with the
underprivileged, giving them the connections
and knowledge to produce their goods. This,
in turn, creates healthy demand and a steady
source of income for those in need.
Intrapreneur is an entrepreneur in a large
company and corporation who is tasked to think,
establish, and run a new big idea or project.
Extrapreneur is an entrepreneur who hops
from one company to another to act as the
innovation champion, providing creative and
efficient solutions.
Common Traits of Entrepreneurs
Proactive; Entrepreneurs are reactive rather
than passive. They address issues, problems,
and challenges before they come rather than
when they already happened.
Agents of Change; Entrepreneurs are
innovation champion. They are always enthused
to improve and develop new products and
services and introduce them to the market.
Risk Takers; Entrepreneurs do not just grab
opportunities, they consider potential various
threats they may encounter.
Sharp Eye for Opportunities; Entrepreneurs
have a talent for recognizing an opportunity.
Sociable; Soft skills are one of the most
important competencies of entrepreneurs as
these establish the relationship with the most
its customers.
Networkers; A networker knows the key
people to connect with. Networking can be a
very intimidating task, for it takes a lot guts to
pull it off.
Decisive; Entrepreneurs always have decision
about their business. They do not settle for
gray areas or unclear solutions.
Balanced; The minds of entrepreneurs should  Direct selling
have a balance between the analytical and the
 Distributorship
creative side.

Innovative; The minds of entrepreneurs are

rich with big ideas that can add value to their
existing business or could become a game
changer in the industry or business where they
belong.

Core Traits of Entrepreneurs

Leaders; Successful entrepreneurs always have
the heart of a leader. They act on their
responsibilities that were given to them.

Communicators; Entrepreneurs know how to

use all forms of communication to effectively
share ideas and address certain concerns with
their customers or employees.

Specialist: Entrepreneurs are expert in their

chosen business. They are tactical and very
keen with details.

Problem Solvers; Entrepreneurs possess

critical thinking skills and look at problems as
challenges or puzzles that they need to solve.

Most common small business in the

Philippines

Sari - sari store

Buy-and-sell business
Rice Retailing Street food business

Flea market business or tiangge

Food cart
Online selling business
business
Cellphone loading business
Printing business
Hair styling and make up business
Laundry and dry
Spa, gym, and nail care business
cleaning business
Video ang photography business
Web site
development and Tutorial business
design/blogging Baking business

Direct selling
business

Car wash and car care business

Bar, cafe and restaurant

Water station and LPG station

Franchising; A business arrangement wherein

the franchisor, who is the owner of the business,
acquires distribution centers through the
franchisees or the affiliated dealers.
Franchise business in the Philippines

Other Additional Business Opportunities

 Dealership