Entrepreneurship

“entrepreneur” is derived from the French verb enterprendre,  Important driver of economic growth and innovation
which means “to undertake” refers to who “undertake” the risk of  What people do to take their career and dreams into their
new enterprises. Enterprise is created by an entrepreneur. The hands and lead it in the direction of their own choice
process of creation is called entrepreneurship.  Building a life on your own terms. No bosses. No restricting
schedules.
Economist considered entrepreneurship as one of the important
 No one holds you back.
resources as part of production
Entrepreneurs take the idea ad execute while entrepreneurship is
Essential Resources in Production
the execution of ideas.
An entrepreneur considers these three essential resources in
Importance of Entrepreneurship
preparing his/her business plan
1. Generates new wealth in an economy
 The land or natural resources 2. Decreases poverty
 Labor 3. Creates opportunities, ensures social justice, instills
 Capital confidence and stimulates the economy
Entrepreneur 4. Improves productivity

 Refers to a businessperson who could be an ordinary Importance of Entrepreneur

businessperson 1. Creates job
 A person who sets up a business with the aim to make profit 2. Innovate
and creates new business 3. Create innovation and social change
 Bearing most of the risks and enjoying most of the rewards 4. Gives back to society
 Innovator, a source of new ideas, goods, services, and
business/or procedures Relevance of Entrepreneurship
 Playing a key role in any economy, using the skills and 1. Prepare students for livelihood even before college
initiative necessary to anticipate needs and bring good new 2. Entrepreneurship education aids students from all
ideas to market. socioeconomic backgrounds to think outside the box and
Entrepreneurship nurture unconventional talents and skills.
3. Entrepreneurship develops their initiative and helps them to
 Act of creating a business or businesses while building and be more creative and self-confident in whatever they
scaling it to generate a profit undertake and to act in a socially responsible way
 4. It exposes students to numerous opportunities to learn how  Serves as role model
to think critically and analyze the pieces on the board  Brings social benefits to the people
5. Being aware of all the important factors and seeing how they  Utilizes and mobilizes indigenous resources
affect each other is the foundation of a smart decision-  Provides more alternatives for consumers
making process.
6. Students have to be exposed to real-world examples and Are Entrepreneurs born or made?
learn from their own experiences
Entrepreneurs as having and exhibiting “desirable and
7. Entrepreneurship education requires students to be
acquirable attitudes and behaviors” such as commitment and
innovative, creative, and collaborative with others
determination, leadership, opportunity obsession, risk-takers,
8. Entrepreneurship education provides budding entrepreneurs
motivation to excel, creativity, self-reliance, and adaptability.
with the skills and knowledge to come up with business
ideas and develop their own ventures. Competencies such as risk-seeking, assertiveness and vision
are considered typical of successful entrepreneur. It is wrongly
Entrepreneurship is a catch word in this era of globalized
concluded that only certain types of people make good entrepreneurs
economy. It is a foundation and catalyst for economic growth and
or are capable of worthwhile innovations.
innovation across nations.
Is there such a thing as a “natural-born entrepreneur”?
Common Elements of Entrepreneurship
None. Entrepreneurs need interpersonal and self-leadership
 Innovation skills too. Entrepreneurial behavior “can be learned and developed”.
 Opportunity seeking and exploitation
 Resource mobilizing The question is not who entrepreneurs are, but what they do,
 Encountering risks and uncertainties and more important than business skills can be other competencies
 Economic and personal rewards that provide a foundation for those business skills.

Roles of Entrepreneurship and Entrepreneurs in Economic 3 Levels of Competencies

Development 1. Personal Competencies – abilities to ground yourself so
 Creates employment that you are secure and self-assured.
2. Interpersonal Competencies – ability to lead, influence,
 Develops new markets
communicate, supervise, negotiate, and control people at all
 Introduces innovation
levels. Ability to get along with people and motivate people.
 Generates new sources of materials
Entrepreneurs must effectively manage people.
 Stimulates investments interest in the new business ventures 3. Business Competencies – set of particular abilities and
being created knowledge that sets a company apart from its competitors.
 Improves the quality of life
 Key characteristics that successful entrepreneurs should have Most would-be entrepreneurs, however, remain self-employed,
in order to be successful. preferring to be the boss.
Core VS Common Competencies in Entrepreneurship Reasons why many would like to become an Entrepreneur
Competencies in Entrepreneurship – making entrepreneurs 1. Achievement, challenge, and learning
successful. 2. Independence and autonomy – you can set your own goals,
pick their own partners, and face the consequences of your
Entrepreneurial Competencies – facilitate opportunity recognition,
decisions
help adapt rapidly to changes, enhances business performance,
3. Income security and financial success
strengthen the firm’s competitive position and stir the achievement
4. Recognition and status
of organizational success.
5. Family
Competence – underlying personal characteristics which leads to 6. Dissatisfaction with current work arrangements
superior performance. Combination of knowledge, skills, attitudes, 7. Community and social motivation
and motives.
How long does it take to start a career in entrepreneurship?
Core Competence – foundation of sharpening a company’s
Depends on the field you chose.
competitive edge and it guides brand reputation, business growth,
and marketing strategy. What are the requirements for a career in entrepreneurship?
Common Competence – describes the knowledge, skills Find the right business idea and get education. Make a
and abilities found in most positions. business plan and define target market. Start networking and selling.

Core Competencies Common Competencies How much can I make with a career in entrepreneurship?
Organizing and planning Analytical and critical thinking
Cash flow management Decision making Vary according to the field they venture into and how well
Personnel Management Leadership the idea sells in the market. If the idea is unique and useful, might
Operations and distributions Communication end up making a lot of money.
Customer relations Computer literacy What skills do I need for entrepreneurship career?
Bookkeeping/Accounting Human relations
Promotions and advertising Managing change Demonstrate good skills and be educated in the field.
Resources management Creative thinking Communication, leadership, analysis, decision making, problem
Financial management Time management solving, critical thinking, and management skills that turn out to be
Information management Conflict management useful.
Which path you choose will depend on your experience, skills,
finances, and flexibility, as well as your goals for the future. Potential Market
 1. Potential Market – part of the total population that has Depending on the size and age of your company, as well as your
shown some level of interest in buying a particular product industry, you may have a clear picture of the potential markets that
or service. Also called Total Addressable Market. are available.
2. A potential market – market you can capture in the future.
Reaching your Potential Market
Includes demographic groups that are not currently your
customers but could become customers.  The demographic information that peoples in a group have in
3. Market Potential – total demand for a product in a given common.
business environment.  The best forms of media to reach them
Importance of Potential Market  How they prefer to shop and make purchases
 The concerns, struggles, or problems that you can help them
 Important part of business’ future growth overcome
 Ensure the future of your business by identifying new  What values matter to them, both in everyday life and when
customers shopping
 Think proactively about ways for your business to grow and  The language that resonates with them
change
 Show the potential of your business to investors or
collaborators
 Increase your revenue
 Create a plan B that will change economy or market
How to Identify your Potential Market?
Consider every target demographic that you currently sell to,
as well as those you have not yet targeted. Identify what they have in
common with each other, new milestones that they will encounter in
their lives that will impact their buying patterns, and where they
overlap or diverse from your current customers.

 What other products do my customers need now?

 What related products will they need in the future? Available Market
 Who else could make use of the products I am selling now?  Willing and capable buyers, have access to a particular
 What demographic information does that new group have in market or service
common with my current customers?  Number of people who are both willing and capable of
 What demographic information does that new group have in buying a particular product to a particular market.
common with each other?
Target Market satisfied by necessities, to cultural, intellectual, and
social needs satisfied by necessaries.
 Group of potential customers to whom a company wants to  Driver of human action which marketers try to
sell its products and services. Generally categorized by age, identify, emphasize, and satisfy, and around which
location, income, and lifestyle. Allows a company to home promotional efforts are organized.
in on specific market factors to reach and connect with 2. Market
customers through sales and marketing efforts.  Two parties can gather to facilitate the exchange of
Penetrated Market goods and services. Usually, buyers and sellers.
Physical like a retail market, where people meet
 Set of customers or clients who already using a particular face-to-face or virtual like online market.
product or service. The potential users of product or service  Does not refer to a particular place but it refers to a
are aware of it, and in many cases are active consumers of it. market for a commodity or commodities.
Arrangement where buyers and sellers come in
The size of potential market gives an estimate of what all a
close contact with each other directly or indirectly
company should do and how much it should invest.
to sell or buy goods
Size of potential market helps a company understand the level  Any place where sellers of particular goods or
of investment it should make further in the market, while taking into services can meet with buyers. Creates the potential
consideration other factors. for a transaction to take place. Must have something
they can offer in exchange to create a successful
If the potential market is very small there is a very small transaction.
fraction of the total population, showing any interest in the product
or category. It is better that the company doesn’t invest further in Existing Customers: already purchased your product
product or category because people won’t buy it.
Prospects: not yet purchased your product but are considering it
Size of the potential market is large there is a huge faction of
Target Market Users: not currently looking for a solution
the total population, which is showing interest in the product, so
further investment can be made on the product development,
marketing, promotions, etc.
The Market Need
1. Need
 Motivating force that compels action for its Define the Market Need for your New Business
satisfaction. Range from basic survival needs
Why is it important to clearly define market needs?
 Demand that the business align to their needs. In order to and do not result in ownership of anything. Includes banking, airline
properly align your marketing efforts – your content – to what buyers travel, communication services, hotel services.
need, you have to have a clear understanding of the many intricacies,
Differences of Product and Services
pains and pressures within your market. To achieve such alignment,
the ability to define market patterns, needs, interests, preferences, Product Service
etc. for comprehensive view of the buying process is critical. Tangible Intangible
Quality standards can be Involves expenditure without
Ways to Define your Market
attained any tangible return benefit
 Consider wether the business offers a new solution to an old It may be an asset sometimes Physical possession is not
problem or complements an emerging trend possible
 Have a clear picture of your target market Physical possession is possible Cannot be stored
 Determine the benefits that your product or service offers Can be stored Cannot be transported
 Examine industry data that can confirm wether there is a Can be transported The producer of the service is
the seller too
sustained, growing demand for your product or service
Producer and the seller may be Assembling has no relevance at
 Identify the percentage of market share that it is realistic for
different persons all
you to capture. The more competition you have, the lower
Assembling is very important Skill of the service provider is
the margins will be the deciding factor in most
 Consider how realistic your pricing is. How can you present cases
your product or service to potential customers so that it Skill of the seller alone cannot Production and distribution of
appears to be a good value, while still affording you a determine sale service will have to be done
healthy profit? simultaneously
Production and distribution It has no relevance in the
There is a need to find the right product or services for you target
need not take place marketing of service
market. Product or services should deliver superior customer value. simultaneously
A product can be defined as anything that we can offer to Packing plays a crucial role in Brand mark and trade name are
market for attention, acquisition, use or consumption that could the marketing of any product important in the marketing of
services
satisfy a need or want. The definition of product does not only
Both brand name and trade It has no relevance
involve tangible goods, but the definition is also extended to include
name are important in
intangible objects because they can be offered to a market. Includes marketing of any product
services, events, persons, places, organizations or even ideas. Labelling is an integral part of
Services are special form of products which consists of marketing. It is required as per
activities, benefits or satisfaction offered for sale that are intangibles law
Identifying and Meeting Customer Needs
 Customer Needs are named and unnamed needs of  To ensure customer satisfaction, entrepreneurs must
customers when they come in contact with different business correctly identify customers’ needs
establishments or they search for the solutions which businesses  To identify needs, entrepreneurs must both listen and ask the
provide. right question
 After identifying needs, always check for additional or
Providing superior customer service means meeting
related needs
customers’ needs by providing them with the products and services
 As an entrepreneur, use you knowledge and experience to
they want or providing effective solutions to their problems.
identify and present the right product, services, and solutions
Innovation comes form identifying customers’ needs and to meet your customers’ needs.
providing solutions that meet those needs.
Why “Identifying Customer Needs” Matters

 Correctly identifying customers’ needs is essential for

ensuring customer satisfaction and loyalty
 Customers have unique needs
 Often, customers either aren’t clear about what they need, or
they don’t really know what they want
 Identifying clients’ needs creates satisfied customers, and
satisfied customers are less likely to have reason to enter into
disputes with the organization or contemplate legal action
How to Meet the needs of Customers

 Identify what the customers’ needs through keyword

research, focus groups, or social listening
 Distribute the information to relevant stakeholders in the
organization
 Craft product features or create content the speaks to the
customers’ needs
 Collect customer feedback in order to meet their
expectations
Key Points