LESSON 1: ENTREPRENEURSHIP - OVERVIEW AND CONCEPTS

List of Cebu’s world renowned Entrepreneurs:

1. Kenneth Cobonpue
- multi-awarded furniture designer and manufacturer
- Integrate natural materials through innovative handmade
production processes.

2. Justin Uy
- Known as the Philippines’ Mango King being the organizer of one of
the best Filipino food trading companies today, Profood
International Inc.

3. John Gokongwei
- He had holdings in telecommunications, financial service,
petrochemicals, power generation, aviation, food, beverage, and
livestock farming.

- Third richest person in the Philippines

- “Choose to be an entrepreneur because then you desire a life of

adventure, endless challenge, and the opportunity to be your best
self.”

4. Bunny Pages
- He was selected as the Entrepreneur of the Year in 2015 by the Cebu
Chamber of Commerce and Industry.

5. Augusto Go
- President of the University of Cebu (UC), kept this thought in mind
and succeeded by combining business and education in his own
radical way.

Entrepreneur - An entrepreneur is a person who creates unique ideas that will be

useful for starting a business.

Entrepreneurship - the science of converting processed ideas into a remarkable

business venture.

Usefulness of the Course to the Students:

1. It develops skills that will be needed in starting up a business.
2. It enhances knowledge on how to operate business.
3. It demonstrates how to manage a business.
4. Learners consider becoming an employer rather than an employee.
5. Learners change their attitude towards the course as a means of living.
6. Learners change in personal and career attitudes such as communication,
problem-solving, collaboration, motivation, creativity, and teamwork.
Importance of Entrepreneurship Education:
1. Key economic driver
2. Increase the level of knowledge, competence and improve the quality of life.
3. Alternative career path

Entrepreneurship Common Competencies:

- Competencies are considered as the capability, capacity and ability of the
learner in handling situations in various areas in business operations such as in
marketing, management, production, and finance.

1. Specific goal setting 5. Willingness to learn

2. Self-efficacy 6. Adaptability and flexibility
3. Need for achievement 7. Willingness to take risk
4. Ambition 8. Interpersonal skills

Competencies for Entrepreneurial Success

1. Competency: Integrity
Example: An entrepreneur knows what is good and right. Do what is best for
everyone and do not act without thinking.

2. Competency: Conceptual Thinking

Example: Review outcome projects in order to understand where problems
occurred. Check the impact of the proposed solution to both customers
and employees.

3. Competency: Strategic Thinking

Example: An entrepreneur finds ways to do things faster or at less costs

4. Competency: Decisiveness
Example: An entrepreneur switches to an alternative strategy to reach a
goal. It generates new ideas and innovative solutions.

5. Competency: Customer Relations Service

Example: A good entrepreneur knows what his or her customer needs in
order to satisfy them and have a long term relationship.

Other Competencies:
6. Risk - taking
7. Collaboration
8. Commercial aptitude
9. Optimism
10. People - centered

The common competencies are the skills you need in starting a business. On the
other hand, the 10 competencies discussed are the skills that you need to be a
successful entrepreneur.

A business starts the business with an existing idea or concept, while an

entrepreneur starts the business from his own idea or concept.
LESSON 2: CORE COMPETENCIES IN ENTREPRENEURSHIP

Core Competencies – defining characteristics that make a business or an

individual stand out from the competition.

3 General Conditions in Core Competencies:

1. The activity must provide superior value or benefits to the consumer.

2. It should be difficult for a competitor to replicate.
3. It should be rare.

Core Competence - A core competence is something unique that a business has

or can do strategically well.

Core Competencies of Entrepreneur:

1. Entrepreneur as a missionary 3. Entrepreneur as a marketing man

2. Entrepreneurs are goal-driven 4. Entrepreneurs start small to big.

Factors that Develop Entrepreneurial Activity:

● Entrepreneur’s initiative
● Organization of capital resources
● Development of administrative machinery
● Development of entrepreneurial autonomy
● Development of SWOT analysis
- SWOT (Strengths, Weaknesses, Opportunities, and Threats) is a tool
used in evaluating a business. Entrepreneurs should know how to
analyze their business using this tool.

Ex: A young entrepreneur, who has a business offering milk tea, wants to evaluate
his business in order to know the challenges encountered and identify new
markets.

Examples:
Internal Elements Answers

- unique taste
Strengths
- quality ingredients

- Friendly staff

- low profits

Weaknesses - no business website

- less offerings than competitors

 External Elements Answers

- market boom

Opportunities - expansion of branches

- can implement a loyalty program

- rising cost of ingredients

Threats - negative reviews

- increasing number of competitors

The Making of a Filipino Entrepreneur:

- Most Filipinos start a business when they see that other businesses are
profitable

All growth starts from the beginning. The same applies to the world of business.
There are a lot of entrepreneurs who start their business from a small enterprise
into a big company.

An entrepreneur must be equipped with the following core competencies so that

his planned business will really stand out among other competitors.

LESSON 3: RELEVANCE AND OPPORTUNITIES IN ENTREPRENEURSHIP

Job Opportunity

- Entrepreneurship can help the economy by providing jobs and

employment opportunities to Filipinos.

- There are different career paths that will gain knowledge and experience
for you as a young entrepreneur.

● Advertising, Marketing, and Public Relations

● Business Development
● Design
● E-commerce and Social Media
● Management
● Software, Web or App Developer
● Sales Manager/ Account
● Executive
● Business Consultant
● Product Manager
Tip: The job that best fits you will help you gain experience in the career, field, or
industry where you want to launch your own business.

The Starting Point to Entrepreneurial Success

1. Start to be on your own.

2. Explore the business environment.
3. Be in control.
4. Have a good accountant or trusted financial adviser.
5. Seek the advice of professionals.

Competencies For Entrepreneurial Success

1. Start to be on your own. - After planning, the entrepreneur will start to
open his business using the capital he has.

2. Explore the business environment - Evaluate the business plan using

knowledge in SWOT analysis.

3. Be in Control - Be responsible for controlling not only all transactions but

also people management.

4. Have a good accountant or financial adviser. - Hire an accountant or

financial adviser who may help in transactions related to funds or money.

5. Seek the advice of professionals. - Seek advice from professionals to help

prepare necessary documents like business

Profile of a Successful Entrepreneur

1. Strong desire for independence

2. Strong drive to succeed
3. Strong determination in decision making
4. Develops a feedback mechanism for results

Entrepreneurship can help the economy. Entrepreneurs pursue their mission to

provide jobs and employment opportunities to Filipinos.

The job that best fits you will help you gain experience in the field of career or
industry where you want to launch your own business.

UNIT 2: The Business Plan

Lesson 1: Definition, Purpose, Market Need Identification, and Elements of

Business Plan

The Business Plan

- A business plan is a written description of the business that you will
establish in the future
 - A business plan can be written before or during the first few years of the
enterprise.

- This is to guide the entrepreneur on which strategies would be most

beneficial for the enterprise to take.

Why prepare a business plan?

- The business plan is the blueprint of your proposed business.

1. To test the feasibility of your business idea

2. To give your new business the best chance of success
3. To secure funding
4. To make business planning more effective
5. To attract investors

Remember:

Composing a business plan Is tedious, however it's basic if you want to have an
effective business that will endure the startup stage.

Three Factors of a Good Business Plan:

1. It's realistic
2. It's specific
3. It's followed through

Remember:

A realistic business plan accounts for the feasibility of implementation. If the

business plan is not practical or too good to be true, then, no operational
method can be devised to achieve the strategy.

Identifying Customer Needs:

- Identifying customer needs is the method of determining what a client
needs from a product.

- Customer needs are non-technical, and they reflect the customers'

perception of the merchandise, not the particular style or specifications,
though oftentimes they're closely connected.

1. Gather raw data

2. Interpreting data
3. Organizing the data
4. Reflect the process

Tip:

It's all too easy to collect data about everything you can, but it's important to only
collect the data that you actually need.

Consider these 3 questions:

 ● What information do you actually need?
● What information is available?
● What information will be useful?

Attractive Quality

One-Dimensional Quality

Must-Be Quality

Indifferent Quality

Reverse Quality

Customer Needs Identification Using the 4-step Method:

Situationer
- A group of students is going to identify customer needs, specifically, the
food inside the school premises.

- They conducted a survey and come up with the following answers in the
4-step method.

Steps:
1. Gather raw data

Example: The students gathered data using interviews to identify their needs.
They have 20 respondents.

2. Interpreting Data

Example: The students analyze the data and omit data that are not essential and
aligned with their research.

3. Organizing Data

Example: They categorized the data gathered based on its nature. For instance,
junk foods, beverages, main dishes, side dishes,

4. Reflect the Process

Example: They will decide if the process is enough for the business plan.

Elements of Business Plan:

● Cover Page
● Executive Summary
● Product Description
● Market Need Assessment/Marketing Plan
● Competitive Advantages
● Corporate Social Responsibility
● Operations and Management
 ● Accounting and Finance
● Appendix

★ Cover Page
➔ Name of the Business
➔ Business Logo
➔ Company Members
➔ School Year
➔ Name of Subject and Teacher

★ Executive Summary
- Overview of the total business plan highlighting the significant point
arousing interest on the part of the reader.

- Focus on convincingly giving the summary of the sections in the

business plan.

- Supports the conclusion that the business is profitable and that it is

worth pursuing

★ Product Description
- Description of products or services and their unique features

Answers the questions:

➔ what products/services are you selling?

➔ what are the features and benefits of what you are selling?
➔ how do they differ from the competition?
➔ what makes it unique and desirable?
➔ why do customers by from you?

★ Marketing Plan
- Who the customers are, competition, marketing strategy competitive
edge, pricing

- Product strategies

- Pricing strategies

- Promotional strategies

★ Competitive Advantages
- Describe the strategies how to competitive in the market.

- What sets your business apart from your competition?

- Highlights the benefits a customer receives when they do business

with you. It could be your products, service, reputation, or even your
location.
 ★ Corporate Social Responsibility
- CSR is a business model by which companies make a concerted
effort to operate in ways that enhance rather than degrade society
and the environment

- CSR allows corporations to participate in social issues that affect the

wider society in which they operate

CSR Examples:
➔ Reduce your company's carbon footprint
➔ Raise money or Distribute Food to NGOs
➔ Volunteer with Local Charity
➔ Clean up drive
➔ Raise awareness for a Disease or Disability
➔ Teach in a Local Community
➔ Adopt a community
➔ Provide scholarships

★ Operations and Management

- Explains the process of acquiring and processing products. It
identifies equipment, physical plant, machinery, materials.

- Production workflow

- Industry Association Memberships

- Production process section (general, physical plant, equipment,

assets, special requirements, materials, production, inventory,
feasibility, cost)

- Describes the vision and direction of the company so potential

lenders and partners can develop an accurate impression about
who you are.

Includes:
➔ Company name
➔ Type of business structure
➔ Ownership
➔ Location
➔ Company history
➔ Products / services and target markets
➔ VMGO statements
➔ core values

- Explains the process of acquiring and processing products. It

identifies equipment, physical plant, machinery, materials.

- Production workflow

- Industry Association Memberships

 - Production process section (general, physical plant, equipment,
assets, special requirements, materials, production, inventory,
feasibility, cost)

Accounting and Financial Plan

- A discussion of the necessity of this aspect in the business plan and
how it will affect the business

- Discuss how you gathered funds, how much is your initial capital and
the purpose of it.

- Present your business Cash Flow using the provided Accounting

Format

Conclusions and Recommendations

- A summary of a business plan's strengths designed to convince the
reader of the company's success.

- Highlight the key strengths of your plan, summarize your vision, and
remind the reader why your business is in a position to successfully
execute the plan.

Appendix
● Shows supplementary materials
● Photographs of product, equipment, facilities
● Copyright / trademark documents
● Legal agreements
● Marketing materials
● Research and or studies
● Operation schedules
● Additional financial documentations
● References - ONLY THIS WILL BE ATTACHED
● Bibliography - ONLY THIS WILL BE ATTACHED

Business Plan Technicalities

- Students should use Times New Roman, 12 pt font size, Justified, with
1.5 paragraph spacing, Margin: 1.5 (left side) and 1.0 (rest of the sides).

- The Business Plan should be within a minimum of 10 pages and

should not exceed 20 pages, including the Table of Contents and
Appendices.

- All research information presented should be properly acknowledged

citing the author, the reference title and the date of publication in
the Bibliography section of your Business Plan.

You can either write a business plan in the early stage of your business or for the
growth of your established business.

Identifying customer needs is the method of determining what a client needs from
a product.
 UNIT 3: Business Opportunity Seeking, Screening, and Seizing

Lesson 1 - Opportunity Seeking: Entrepreneurial Imperatives and Sources

Opportunity Spotting and Assessment:

1. Opportunity Seeking
2. Opportunity Screening
3. Opportnity Seizing

Entreprenurial Opportunity Seeking

- Being coined as the "innovative opportunity seekers" in the business
industry, entrepreneurs are equipped with a spirit of inquiry that will help
them decide which products or services are most likely needed in the
marketplace.

Sources of Opportunities

● External / Macroenvironmental Sources

- Any enterprise, company, or organization is not alone in its business
environment. It is always surrounded by an array of factors and
forces that help in shaping opportunities but also pose present
threats to the company

Six Macroenvironmental Sources of Opportunities:

1. Demographic
2. Economic
3. Socio-cultural
4. Technological
5. Ecological
6. Political and Legal

Example: Macroenvironmental Sources of Opportunities

Situationer:
- A group of students intends to put up a milk tea shop near their school. In
establishing such business, they have come up with the following data to
analyze the impact of the different macroenvironmental sources of
opportunities to their desired business:

Macroenvironemtal Sources How can these sources help you?

● Nearby residents are mostly from the 15-50 age

group.

1. Demographic ● Residents are mostly Filipinos.

● A number of the nearby residents are

employed in either the private or public sector.
 Examples:
- Population growth
- Age distribution and life expectancy rates
- Gender distribution
- Social classes
- Family size and structure
- Minorities

● Nearby residents are mostly employed

2. Economic ● The average monthly household income is Php

40, 000 - 50, 000

● A huge percentage of the area population is

attributed to teenagers.
3. Socio-cultural
● Individuals from the 15-18 age group prefer
drinking milk tea over coffee.

● Shops near the area are tied up with various

online delivery services to serve more
customers.
4. Technological
● Most shops are equipped with an online
ordering platform to ease long queues.

5. Ecological ● The city where they belong doesn’t allow the

use of plastic bags.

● Registration with the DTI is needed

6. Political and Legal ● A business permit from the city has to be

obtained prior to the operation of the
business

Sources of Opportunities

● Internal/Microenvironmental Sources - Internal sources pertain to those

factors that can be controlled by the management. It includes factors of
resources available that affect individuals and businesses

Five Microenvironmental Sources of Opportunities:

1. Customers 4. Competitors
2. Suppliers 5. General Public
3. Resellers
 ● Industry and Market Disparities - Certain disparities in the market may
take place in the form of regulations, deregulations, constant changes in
supply chains, and other structural problems

● Industry and Market Disparities - Certain disparities in the market may

take place in the form of regulations, deregulations, constant changes in
supply chains, and other structural problems

● Technological Discoveries and Advancements - Continuous advancements

in technology can be the source of highly innovative opportunities in the
business industry.

Tip: As an entrepreneur, you need to think about the means adopted by shoppers
when purchasing products. You have to devise ways for you not to fall out from
the industry, most especially in today’s digital age.

Opportunity Seeking - is the first step that must be taken by any start-up venture
1.in order to have an idea as to the kind of business opportunity that will be taken
by any budding entrepreneur.

Lesson 2 - Opportunity Screening: The 12Rs

Opportunity Screening
- In this phase, the entrepreneur will lay down a list of several opportunities,
which he will evaluate prior to transforming his business idea into a reality

- It is the process of making both qualitative and quantitative assessments

of a business idea's capability of producing sales growth and promising
financial performance.

The opportunities chosen may likewise be evaluated by:

1. Identifying resources 4. Developing Stategies

2. Analyzing capabilities 5. Reviewing Feedback

3. Evaluating competitive advantage

Evaluating Opportunities
1. Remarkable value to customers
2. Can ideally solve a compelling need, problem, or demand of the market
3. A potential cash cow
4. Corresponds with the entrepreneur's skills, resources, and risk appetite

Two-Stage Approach in Screening Opportunities:

1. Qualitative Assessment - focuses on gathering information, details, and
recommendations from other entrepreneurs in the industry

2. Quantitative Assessment - business idea's viability used to gauge a

business opportunity's feasibility and desirability to attract investors
The 12Rs of Opportunity Screening
1. Relevance to one’s vision, mission, and objective
2. Resonance with one’s values
3. Reinforcement of existing enterprise strategies or entrepreneurial interests
4. Revenues
5. Responsiveness to customer needs and wants
6. Reach
7. Range
8. Revolutionary impact
9. Returns
10. Relative ease of implementation
11. Resources required
12. Risks

Example: The 12Rs of Opportunity Screening

Situationer:
An entrepreneur is planning to partner up with a school under an exclusive
distributorship agreement, whereby the entrepreneur will be the exclusive
distributor of homemade cheesecakes in the school's cafeteria. He used the
following opportunity screening sample matrix in assessing the viability of such
an opportunity:
Remember:
The criteria shown from numbers 1 to 10 are all positive indicators, hence,
specifying that a higher score is better.

The criteria shown in numbers 11 and 12 are both negative indicators, hence, a
lower score is better.

Lesson 3 - Opportunity Screening: Pre-feasibility and Feasibility Study

Pre-feasibility Study
- A pre-feasibility study refers to the analysis of a potential business
opportunity at an early stage

- It is generally conducted to give possible investors the relevant information

they need pertaining to the implementation of a business idea.

- This study is considered as a crucial aspect of opportunity screening, for it

is designed to give an overview of the aspects of logistics, required capital,
key challenges, and all other details deemed significant in pursuing an
entrepreneurial decision

When and Why Do Entrepreneurs Conduct a Pre-Feasibility Study?

- Entrepreneurs conduct this type of study to determine whether a full
feasibility study, which is relatively more costly, must be undertaken or not.
 - Entrepreneurs also make a pre-feasibility study to collect various pieces of
information. before making huge investments into different tasks such as
acquiring permits, gathering resources, hiring staff, and purchasing tools
and equipment.

Factors in Conducting a Pre-feasibility Study

1. Market potential and prospects - Market potential pertains to the size of

the market or consumers who will avail of the product or service.

Ex.
Situationer: An entrepreneur is planning to put up a photo printing shop in an
area surrounded by schools, colleges, and universities. Since photo printing
services are usually availed by students and employees, the following data were
gathered from 485 respondents to determine if the number of his target market in
such an area meets the objectives of his proposed business

Conclusion: The entrepreneur was able to conclude that his proposed business of
putting up a photo printing shop in the said area is viable since 38% of the total
respondents are students, whereas 51% of them are currently employed

2. Assessment of technology and operations viability - In the entrepreneurial

aspect, technology assessment or technology evaluation takes into
account the various implications of a technology or innovation for a
certain business activity, which often involves technology selection.

Remember: Assessment of technology specifically aims to pinpoint if a

technology, along with its other application areas, can generate a successful
business in the future.

3. Investment requirement and production - In all businesses, it is important

for an entrepreneur to assess the amount of money needed to be able to
start a business opportunity.
 4. Financial forecast and determination of financial feasibility - In all
businesses, it is important for an entrepreneur to assess the amount of
money needed to be able to start a business opportunity.

Feasibility Study
- A feasibility study is an in-depth report that covers many important points,
including technical, commercial, legal, and scheduling issues.

- This study is made by delving into the main aspects of the project, and it is
conducted to assist an entrepreneur in determining whether or not a
business opportunity must be pursued or not.

- is an in-depth report that covers many important points, including

technical, commercial, legal, and scheduling matters. Such a study aims to
address questions concerning the viability of a business opportunity, how
much it will cost, and whether it is able to follow the rules and regulations
set by local and national laws

Remeber: A feasibility study can be defined as a comprehensive analysis of the

practicality of the desired business, based on several factors such as the
marketplace, industry, competition, technology, and other financial resources.

Core Questions in a Feasibility Study

● Are both markets and industries attractive?

● Does the chosen business opportunity offer convincing benefits or

advantages compared to other potential ideas?

● Will the team be able to produce the results they seek to deliver to others?

Elements of Feasibility Study

1. Technical feasibility
2. Commercial feasibility
3. Resource feasibility
4. Legal feasibility
5. Operational feasibility

Steps in Conducting a Feasibility Study:

1. Create a brief preliminary analysis
2. Outline the scope of your project
3. Understand the financial and
operational costs
4. Review and analyze the data
Lesson 4 - Opportunity Seizing: Business Position Statement

Opportunity Seizing
- The stage of determining the critical success factors of succeeding in the
industry, while also being cautious about other factors that cause failure to
some businesses

- pertains to the stage of determining the critical success factors of

succeeding in the industry, while also being cautious about other factors
that cause failure to some businesses

Objectives of Opportunity Seizing

Given that opportunity seizing is the final stage of choosing the most feasibility
opportunity, it's relevance in entrepreneurship dwells on two main objectives:

1. to enable the entrepreneur to transform his business opportunity into a

reality, and

2. to address the compelling needs or demands of the market

What are the secrets to opportunity seizing?

1. Stepping out of the comfort zone
2. Make the small ones count
3. Network with creative and business-minded people

Business Position Statement

- A business position statement refers to a brief description of a product or
service catered by the business and specifically how such a product or
service answers the compelling need of the target market.

- It's main purpose is to introduce the product or service to the customers

and to align the branding efforts with the brand and its value proposition.

Remember: A business position statement refers to a brief description of a

product or service catered by the business and specifically how such product or
service answers the compelling need of the target market

Value Proposition vs. Business Position Statement

● Value proposition - is broader in nature and is a direct output of a
business strategy. It refers to a bigger picture which includes all the core
benefits offered to various market segments and the price that a customer
pays to acquire those benefits.

● Business position statement - is more specific and technically deals with a

subset of the value propositionIt is oftentimes used in marketing programs
and activities of the entrepreneur.

Writing a Business Position Statement

1. Keep it Short
- A business position statement is not about the vision and mission of
an enterprise. Therefore, such statements should be concise and
straightforward
 2. Make it unique and remarkable.
- If the entrepreneur wants to stand out in the industry, the business
position statement should be crafted in a unique way.
3. Stick to the core values of the business.
- A business position statement must reflect the primordial values of
the enterprise itself

4. Show how the business is different from other competitors.

- The competition will always be present in any industry. As such, an
effective business position statement should point out what
separates the business from its main competitors

Tip:
The following is a sample format in crafting a business position statement:

"For [state the target market] who [the needs of the target market], [business or
brand name] provides [what differentiates the business from other competitors]
because [why should the target market believe in the business..]"

Example: Crafting a Business Position Statement

Situationer: An entrepreneur is planning to put-up an online marketplace (ABC)
that caters to a wide range of consumer products with delivery services. Following
the template, here is a sample position statement for his business:

"For consumers who want to purchase different products online with competent
delivery services, ABC provides a fully-functional online shopping siteABC sets
itself apart from other online retailers with its basic missiona commitment to
operational excellence to all its valued consumers."

Four Major Components of a Business Position Statement