CRISHA JEAN DALIMOCON
and keeps them there.
MODULE 1 INTRODUCTION
ENTREPRENEURSHIP
Entrepreneurship teach us to:
• creates opportunity
• ensures social justice
• instills confidence
• stimulates the economy
• take risks
• fail and to persevere
• become creative, inventive and innovative.
Entrepreneurship is a key driver of our
economy.
-The 1987 Philippine Constitution recognizes
entrepreneurship as an engine of economic
growth.
-Article XII Section 1 highlights the role of
private enterprises in supporting equitable
distribution of income and wealth, sustaining
production of goods and services and
expanding productivity, therefore raising the
quality of life.
Entrepreneurship is more than just an
economic term — it is a way of thinking.
-People exposed to entrepreneurship
frequently express that they have more
opportunity to exercise creative freedoms,
higher selfesteem, and an overall greater sense
of control over their own lives.
-Entrepreneurship is a way of inspiring
creative individuals to pursue opportunities
despite its risks.
WHAT MAKES SOMEONE
ENTREPRENEUR?
Personal Attributes
•Creativity is the spark that drives the
development of new products or services or
ways to do business. It is the push for
innovation and improvement.
•Dedication is what motivates the
entrepreneur to work hard. Planning of an
ideas must be joined by hard work to succeed.
•Determination is the extremely strong desire
to achieve success. It includes persistence and
the ability to bounce back after rough times.
•Flexibility is the ability to move quickly in
response to changing market needs. It is being
true to a dream while also being mindful of
market realities.
•Leadership is the ability to create rules and
to set goals.
•Passion is what gets entrepreneurs started
OF •Self-confidence comes from thorough
planning, which reduces uncertainty and the
level of risk.
•“Smarts” consists of common sense joined
with knowledge or experience in a related
business or endeavor.
WHY SHOULD BECOMING AN
ENTREPRENEUR BE ANY DIFFERENT?
Required Education -educational
requirements for entrepreneurs are
nonspecific.
-all entrepreneurs need capital, so the ability
to write an effective business plan is vital.
Required Skills -tolerance for risk taking and
a willingness to leave the security of a
conventional and tedious job
-the ability to multitask is a key.
Career Outlook -earnings for entrepreneurs
vary drastically, and income is often unstable,
especially in the early days of a new business
Career Opportunities in Entrepreneurship
Business
1. Consultant Business -consultants provide
advice about business issues, such as the
development and implementation of business
plans, how to streamline operations or how to
expand into a new market.
2. Management analysts -The person who
evaluates a business' systems, procedures and
operations, they may also review a business'
financial matters, such as the ratio of income
AN to expenditures.
3. Sales Personnel -Someone who works in
sales or runs the department needs to know
how businesses run. They need to know how
to represent a company, manage accounts,
and follow up on leads.
4. Research and development -To work in
R&D, you need to understand business
concepts, procedures, and practices. With all
of the training and education someone has
received learning about entrepreneurship,
they are well prepared for this type of position.
5. Not-for-profit fundraiser -Being able to raise
funds requires understanding the importance
of business and networking relationships. It is
a great place for someone with this type of
degree because you will have experience in
studying advanced concepts that can be used
to your advantage on the job.
6. Intrapreneur -an intrapreneur is an inside
entrepreneur, or an entrepreneur within a
large firm, who uses entrepreneurial skills
without incurring the risks associated with
those activities.
Lesson 2: Entrepreneurial Mind
Entrepreneurial mind frame -allows the
entrepreneur to see things in a very positive
and optimistic light in the midst of crisis or
difficult situations.
-In fact, in Chinese writing, the word crisis is
composed of two characters. The first
character means danger while the second
character means opportunity.
-Passion is the great desire to attain a vision
or fulfill a mission. It is about wanting
something so much that a person would be
willing to totally devote oneself to the quest.
The Entrepreneurial heart flame is also
about emotional intelligence or EQ, which is
often manifested in the entrepreneurs’ efforts
to nurture relationships with customers,
employees, and suppliers.
-The entrepreneur also looks after the
interests of his or her people by motivating
and encouraging them to be the best that they
can be. This creates caring culture within the
organization that brings about synergy among
the people working toward a common vision.
The Entrepreneurial gut game refers to the
ability of the entrepreneur to sense without
using five senses. This is also known as
intuition. The gut game also connotes courage
or, in the local dialect, “lakas ng loob” (strong
intestinal fortitude).
New Product Development
Successful new products spring from the
convergence of: (1)the creative mind; (2)the
technical mind; and (3)the business mind.
1. The creative mind conceptualizes and
designs a product that consumers find some
use for. It likewise produces a product that is
pleasing to see, touch, smell, hear, and taste.
2. The technical mind is the technology
originator. The entrepreneur may not
necessarily possess the technical mind but
this is what drives him or her to convert new
knowledge into something highly functional
and operational.
3. The business mind harnesses the
potentials of new products by creating the
market space for them. It also organizes
sufficient forces and resources to develop,
launch, and commercialize the new product in
order to maximize its market value.
5 Essential Characteristics of The
Entrepreneurial Mind
1.Creativity -The seed of entrepreneurship is
the ability to see things differently. Whether
it's with new products or new processes,
entrepreneurs are driven by the uncanny
knack to see holes in the marketplace and
devise innovations to fill them
2. Suspicion of predictors -Entrepreneurs
tend not to labor under the assumption that
data is the sole predictor of an outcome.
Especially in new markets and with new
products where data is largely interpretive or
extrapolated, entrepreneurs are undaunted by
the typical predictors that may put off fainter
hearts.
3. Comfort with uncertainty -Similarly, a
distrust of prediction and analysis creates an
atmosphere where uncertainty rules. Indeed,
uncertainty is the very essence of
entrepreneurship.
4. Openness to experimentation -A comfort
with experimentation goes beyond educated
trial and error. The ability to experiment with
products, processes and outcomes, no matter
where the results may lead, is the key element
of this quality.
5. Functional humility -Egos can destroy the
very best ideas. Entrepreneurs who are
committed to solving a business problem or
reinventing a product or service display a
functional humility.
MODULE 2 THE DEVELOPMENT OF A
BUSINESS PLAN
Lesson 1: What is a Business Plan?
-The business plan is a written document
prepared by the entrepreneur that describes
all the relevant external and internal elements
involved in starting a new venture. It is often
an integration of functional plans such as
marketing, finance, manufacturing, and
human resources.
Who should write the Business Plan?
-The business plan should be prepared by the
entrepreneur; however, he or she may consult
with many other sources in its preparation.
Lawyers, accountants, marketing consultants,
and engineers are useful in the preparation of
the plan.
Scope and Value of the Business Plan-Who
reads the Plan?
-The business plan may be read by employees,
investors, bankers, venture capitalists,
suppliers, customers, advisors, and
consultants. Who is expected to read the plan
can affect its actual content and focus.
Three perspectives that should be
considered in preparing a business plan:
1. Perspective of an Entrepreneur
2. Marketing perspective
3. Perspective of an Investor
Writing the Business Plan
-It should be comprehensive enough to give
any potential investor a complete picture and
understanding of the new venture, and it
should help the entrepreneur clarify his or her
thinking about the business.
Outline of a Business Plan
I. Introductory Page
II. Industry Analysis
III. Description of Venture
IV. Production Plan
V. Operations Plan
VI. Marketing Plan
VII. Organizational Plan
VIII. Assessment of Risk
IX. Financial Plan
X. Appendix
LESSON 2: DETAILED OUTLINE OF A your business?
BUSINESS PLAN
1. Introductory Page
-The introductory page should contain the
following:
a. The name and address of the company
b. The name of the entrepreneur(s) -contact
number, email address, and website address if
available.
c. Brief description of the company and the
nature of the business.
2. Executive Summary
-This section of the business plan is prepared
after the total plan is written.
-About two to three pages in length, the
executive summary should stimulate the
interest of the potential investor.
Executive Summary should answer the
questions:
• What is the business concept or model?
• How is this business concept or model
unique?
• Who are the individuals starting this
business?
• How they will make money and how much?
3. Environmental and Industry Analysis
Examples of these environmental factors are:
• Economy- The entrepreneur should
consider trends in the GNP, unemployment by
geographic area, disposable income, and so
on.
• Culture- An evaluation of cultural changes
may consider shifts in the population by
demographics
• Technology- Technological development will
require the entrepreneur to make careful short
term marketing decisions
• Legal Concerns- The entrepreneur should
be prepared for any future legislation that may
affect the product or service, channel of
distribution, price, or promotion strategy.
• Industry demand- Demand as it relates to
the industry is often available from published
sources
• Competition- Most entrepreneurs generally
face potential threats from larger corporations.
4. Description of Venture
-The description of venture should be detailed
in this section of the business plan.
-This will enable the investor to ascertain the
size and scope of the business.
Describing the Venture:
• What is the mission of the new venture?
• Why will you be successful in this venture?
• What is your product(s) and/or service(s)?
• Where will the business be located?
• Why is this building and location right for
5. Production Plan
-If the new venture is a manufacturing
operation, a production plan is necessary.
This plan should describe the complete
manufacturing process.
Production Plan should describe the:
physical plant layout; machinery and
equipment needed to perform the
manufacturing operations; raw materials and
suppliers’ names, addresses, and terms;
costs of manufacturing; and any future
capital equipment needs.
6. Operations Plan
-This section goes beyond the manufacturing
process (when the new venture involved
manufacturing) and describes the flow of
goods and services from production to the
customer.
-A nonmanufacturer such as a retailer or
service provider would also need this section
in the business plan to explain the
chronological steps in completing a business
transaction.
It might include:
• inventory or storage of manufactured
products;
• Shipping;
• inventory control procedures; and
• customer support services.
7. Marketing Plan
-The marketing plan is an important part of
the business plan since it describes how the
product(s) and/or service(s) will be
distributed, priced, and promoted.
-Marketing research evidence to support any
of the critical marketing decision strategies as
well as for forecasting sales should be
described in this section. Specific forecasts for
a product(s) and/or service(s) are indicated to
project profitability of the venture.
8. Organizational Plan
-The organizational plan is the part of the
business plan that describes the venture’s
form of ownership, that is, proprietorship,
partnership, or corporation.
-If the venture is a partnership, the terms of
the partnership should be included.
-If the venture is a corporation, it is important
to deal the shares of stock authorized and
share options, as well as the names,
addresses, and resumes of the directors and
officers of the corporation.
9. Assessment of Risk
-Every new venture will be faced with some
potential hazards, given its particular industry
and competitive environment.
-It is important that the entrepreneur make an
assessment of risk in the following manner.
The entrepreneur should:
• indicate potential risks to the new venture;
• be a discussion of what might happen if
these risks become reality; and
• discuss the strategy that will be employed to
prevent, minimize, or respond to the risks
should they occur.
10. Financial Plan
-It determines the potential investment
commitment needed for the new venture and
indicates whether the business plan is
economically feasible.
-Financial planning is the process of
estimating the capital required and
determining its competition.
-It is the process of framing financial policies
in relation to procurement, investment and
administration of funds of an enterprise.
11. Appendix
-The appendix of the business plan generally
contains any backup material that is not
necessary in the text of the document.
-Reference to any of the documents in the
appendix should be made in the plan itself.