ACTIVITY 1: WORD CLOUD

The illustration on the right

is called a word cloud
which consists of words
related to “Entrepreneurs”
and “Entrepreneurship”.
Study the words and select
three words or group of
words and write a
sentence/s to describe
what those words have to
do with entrepreneurship
or entrepreneurs.
What is Entrepreneurship?
• 1700s
• 20th century – economist Joseph Schumpeter (1883 – 1950)

Entrepreneurship as a force of “creative destruction”

• Peter Drucker (1909 – 2005) – describes entrepreneur as
someone who actually searches for change, responds to it
and exploits change as an opportunity.
What is Entrepreneurship?
Is the “process of creating or seizing an opportunity, and
pursuing it regardless of the resources currently controlled.”
~ Howard H. Stevenson

“Controlling your own life is

something an entrepreneur
does.”
Explain why your school has decided to offer
a course in Entrepreneurship?
Present your answer through writing the
statement in cartolina or manila paper.

Example:
The best part of being an entrepreneur is that you
can get out of it exactly what you put it. The
harder you work, the bigger the reward.” –
Elizabeth Henson, owner, Elizabeth Henson Photos
Importance of Entrepreneurship
 Creation of new jobs
 Innovation
 Research
 Development
 Wealth
 Four Tenets on Entrepreneurship
1. Entrepreneurship flourishes in communities where
resources are mobile.
2. Entrepreneurship is greater when successful members of
a community reinvest excess capital in the projects of
other community members.
3. Entrepreneurship flourishes in communities in which
success of other community members is celebrated
rather than derided.
4. Entrepreneurship is greater in communities that see
change as positive rather than negative.
Who is an Entrepreneur?
an owner of a business who invests his/her
resources to bring an idea to life, setting the
direction that transforms that idea into reality,
thus providing and gaining value that balances
effort, purpose and profit.
What is an Entrepreneur?
• Someone who exercises initiative by organizing a
venture to take benefit of an opportunity and, as the
decision maker decides what, how and how much of a
good or service will be produced.
• Business leader and innovator of new ideas and
business processes.
• Not necessarily motivated by profit but possesses a
deep passion that drives them to overcome all the
difficulties and challenges when running the business.
 Brings an
Owner who idea to life
Setting
invests
direction
resources
COMPONENTS
OF AN
ENTREPRENEUR
Making
Adding
things
value
happen
 Why be an Entrepreneur?
• Malvin and Mae Hosena founded Follicles Salon in Las
Piñas in 2012 with a Php 250,000 capital.
• Many car owners became Uber or Grab transport
entrepreneurs
• Online companies like Zalora, Lazada and Shopee help
educate digital start-up companies, then distribute
products for them and finally deliver to end users
• Students , employees and millennials can now start
part-time businesses via online channel, which is
without many restrictions.
Wealth Conversion Principle
3S Requisites to Prosperity

SQUAD SPEED

SPREAD
 3Cs Key Factors to Successful
Entrepreneurship

Coordination
Commitment Competency

KFS
 3C Key Factors to Successful Entrepreneurship
Commitment – Strong drive to achieve goals and
objectives through focus and pro-active follow
through.
Coordination – organization of different people or
groups coming from various functions to attain
efficiency, effectiveness and/or impact.
Competency – having a combination of ability,
attitude and behavior to do a particular role or job
repetitively well.
4-Gate Model to Prosperity
 4-Gate Model to Prosperity
Gates Interests and Gatekeepers
Expectations
Preparation Profit and Dividend Owners and
stockholders
Marketing Quality and Good Customers
Price
Execution High Pa and Work- Employees
Life Harmony
Self-Leadership Fulfillment Self
12 Ms to Successful Entrepreneurship
Gate 1: Preparation
- Money, Model, Mentors
Money – cash component that creates the cycle of
wealth conversion and prosperity.
Model – business model or the big picture plan
Mentors – experienced advisers
12 Ms to Successful Entrepreneurship
Gate 2: Marketing
- Mindset, Market, Message
Mindset – belief; innovation is better that
commoditization
Market – set of buyers that an entrepreneur
focuses attention on
Message – brand positioning that will be
communicated to persuade the target
customers
12 Ms to Successful Entrepreneurship
Gate 3: Execution
- Machinery, Management skills
and Methods
Machinery – organization structure
Methods– systems and processes
Management skills – ability to carry out the plans
through people.
12 Ms to Successful Entrepreneurship
Gate 4: Self-Leadership

Moving forward – Having grit to continue the

business despite the obstacles.
Mission – purpose why the business exists.
Mastery – Knowing self, environment, operations.
 Entrepreneurship Key Factors Matrix
Key Factors for Preparation Marketing Execution Self-
success/ 4 gate Leadership
model

Commitment Money Mindset Machinery Moving

Forward
Coordination Model Market Methods Mission
Competency Mentors Message Management Mastery
skills
Summary:
An entrepreneur needs four different types of commitment:
1. Money- to maximize return on investment.
2. Mindset- to have an innovation mindset.
3. Machinery – to create an effective organization.
4. Moving Forward – to keep iterating toward objectives ang
goals.
Summary:
An entrepreneur needs four different tasks of coordination:
1. Model – coordinate the interdependency of a business
model.
2. Market – coordinate choice and penetration of the target
market.
3. Methods – coordinate processes needed to routinize
operations.
4. Mission – coordinate the establishment and fulfillment of
a company’s mission.
Summary:
An entrepreneur needs four different groups of
competencies:
1. Mentors – competency related to sense making and risk
assessment that can be provided or guided by mentors.
2. Message – competency related to customer-focused
communication , expressed in terms of a positioning or a
message.
3. Managements skills – competency related to initiative
and resource management and influencing people skills.
4. Mastery – competency related to adaptability and grit
 How entrepreneurial are you?
EMPRETEC, a United Nations Program for small business
clustered 10 Personal Entrepreneurial Competencies
(PECs) originally identified and researched by McClelland
and McBer.

Entrepreneurial Self-evaluation test – help you to gain

greater understanding as you determine if you have traits
to become a successful entrepreneur.
Competencies:
1. Opportunity Seeking and Initiative
 Does things before asked or forced to by events.
 Acts to extend the business into new areas, products
or services.
 Seizes unusual opportunities to start a new business.

2. Risk Taking
 Deliberately calculates risks and evaluates alternatives.
 Takes action to reduce risks or control outcomes.
Competencies:
3. Demand for Efficiency and Quality
 Find ways to do things better, faster, or cheaper.
 Develops or uses procedures to ensure work is
completed on time or that work meets agreed upon
standards of quality.

4. Persistence
 Takes repeated actions or switches to an alternative
strategy to meet a challenge or overcome and obstacle.
Competencies:
5. Commitment to the Work Contract
 makes personal sacrifice or expends extraordinary
effort to complete a job.

6. Information Seeking
 Personally seeks information from clients, suppliers, or
competitors.
 Consults experts for business or technical advice.
Competencies:
7. Goal Setting
 Sets goals and objectives that are personally
meaningful and challenging.
 Articulates clear and specific long range goals.
 Sets measurable short term objectives.
8. Systematic Planning and Monitoring
 Plans by breaking large tasks down into time-
constrained sub-task.
 Keeps financial records and uses them to make
business decisions.
Competencies:
9. Persuasion and Networking
 Uses deliberate strategies to influence or persuade
others.
 Uses key people as agents to accomplish own
objectives.

10. Independence and Self-Confidence

 Expresses confidence in own ability to complete a
difficult task or meet a challenge.
A
Transfer PEC score to the profile sheet by marking X
Opportunity Seeking
Persistence
Commitment to work
Demand for efficiency
Risk taking
Goal Setting
Information Seeking
Systematic Planning
Persuasion and
Networking
Self-confidence
0 5 10 15 20 25
List down areas for improvement and suggest how
you can improve:
Traits in which you are strong Traits in which you need improvement

Areas for improvement Suggestions

 How will you improve the
Role Play Rubric competency?
Scoring Criteria 5 4 3 2 1
Excellent Good Needs some Needs much N/A
improvement improvement

Relates to audience

Provides a fluent rendition of

scenario
Role-plays scenario with
feelings and expression

Varies intonation

Resolution
 4 CLUSTER CAPACITY REQUIREMENTS
1. Intelligent Quotient (IQ) – for preparation – capacity to
think and reason.
2. Creativity Quotient (CQ) – for marketing – capacity to
innovate.
3. Emotional Quotient (EQ) – for execution – capacity to
sense and empathize.
4. Adversity Quotient (AQ) – for self-leadership – capacity
recover and make progress.
Gate 1 – Preparation: Money, Model and Mentors
The first gate of our 4-Gate Framework is the Preparation
gate.

Idea is the prerequisite for a business venture. Without a

good, doable idea,
• Funding or money cannot be justified
• Model or business model cannot be designed, and
• Mentors that can add value can’t be matched.
 WHY 4 BASIC QUESTIONS ARE IMPORTANT TO INVESTORS
BASIC QUESTIONS Why important to address upfront?
Who is your target This gives an indicator of how big the market is. A bigger
market? market is always preferred for greater scability and
sustainability.
What is being offered? This answers what’s in it for the target market, addressing the
pain points of the consumers. Pain points can be conscious
(actual demand) or unconscious (latent demand) that can be
pointed out by the seller.
Why is the offer This answers why the offer is compelling to the target market.
relevant and unique?

How will this make This answers how the firm can win in the market place and
money for the firm? what’s in it for the investors.
ACTIVITY: WHY 4 BASIC QUESTIONS ARE IMPORTANT TO INVESTORS

BASIC QUESTIONS Why important to address upfront?

Who is your target
market?

What is being offered?

Why is the offer

relevant and unique?

How will this make

money for the firm?
 Simplest
Simplest Ways
Ways to
to Raise
Raise Capital
Capital
Funding from Immediate What are they?
Network
Savings Discretionary funds from unspent money earned
previously by the entrepreneur.
Partnership Includes investment from relatives, friends and
acquaintances.
Loans Money advances, which may be sourced from
individuals, informal channel or financial
intermediaries like banks.
Customer’s Advances Terms of sales advantageous to the seller, such as
cash with order (CWO), asking for down payment
(DP), cash on Delivery (COD), or collecting
franchise fee upfront.
Sources of Funding from Outsiders
Funding from Outsiders What are they?
Angel Investor Money invested by an outside individual to a firm.
Super Angel Big amount of money invested by an outside individual
to a firm.
Venture Capital Amount of money invested by outside investors, typically
over 10 individuals with none owning over 10% of the
investment pool, forming themselves as a venture
investing company.
Private Equities Amount of money invested by outside investors, typically
over 10 individuals, forming themselves as a private
equity investing company, focusing in firms that already
have revenues and profit.
Going Public Amount of money invested via initial public offering (IPO)
from the stock market.
• Most billionaires in the Philippines and elsewhere have taken
their company via IPO, selling at least 20% of their company to
the public at a premium in exchange for cheap funds to finance
their expansion.
• Top three companies in the Philippines n terms of market
capitalization
• SM Investments
• SM Development
• BDO
(total combined capitalization of 3.2 trillion as of February 2018)
• All three companies are owned by Henry Sy
 16 QUESTIONS INVESTORS NEED TO ASK
Inter-related Factors for
Goal
Investors to Maximize ROI
Market To determine if there is a
scalable and sustainable
market.
Key Questions they ask
themselves
• Is the market/industry big with lots
of unserved market?
• Can it be scaled fast?
• Are there customers waiting?
• Are there exclusive agreements?

Product To determine if the value • Is the value proposition(product

and price) compelling to the
proposition is compelling customers to keep buying?
and ownable. • Is the product or technology
already available?
• Is there a potential source of
competitive advantage, i.e a
barrier for competitive entry
(patent, copyright, etc.)?
• Is the margin good for better cash
flow?
 16 QUESTIONS INVESTORS NEED TO ASK
Inter-related Factors for Goal Key Questions they ask
Investors to Maximize themselves
ROI
People To determine if the • Has the entrepreneur done
well in the past?
entrepreneur is • Has the entrepreneur
trustworthy and demonstrated high AQ?
• Is this entrepreneur committed
believable. and is the right person for the
job? (experience, behavior, full
time)
• Does my tuition feel good
about working with the
entrepreneur? (EQ, win-win
attitude, realistic projection,
etc.)
 16 QUESTIONS INVESTORS NEED TO ASK
Inter-related Factors for Goal Key Questions they ask
Investors to Maximize themselves
ROI
ROI (Return on To determine if beyond • Are uncertainties
Investment) market, product and negated? (Government
rules, legal cases, patent,
people, it is a good
etc.)
investment. • Is timing right?
• Are tensions controllable?
(Cost, license, manpower
needs, inventories,
receivables, etc.)
• It is a good deal?
FORMING YOUR TEAM
1. Choosing partners
2. Choosing founding members
3. Choosing mentors
*Entrepreneurs need to realize they need to be effective first,
then efficient, and then create an impact.
• Invaluable tool for any entrepreneur.
• A written document which precisely defines your business
whether it is a single proprietorship, partnership or a
corporation.
• Explains who is in charge and the duties of the staff.
• It identifies your goals and serves as your enterprise
resume.
• Helps allocate resources properly, handle unforeseen
complications, and make the right decisions.
1. To serve as an action plan.
2. To serve as a road map.
3. To serve as a sales tool.
1. To convince oneself that the new venture is worthwhile
before making a significant financial and personal
commitment.
2. To assist management in goal-setting and
long-range planning.
3. To explain the business to other companies with which it
would be useful to create an alliance or contract.
4. To attract employees.
A business plan can help an entrepreneur to allocate
resources appropriately, handle unexpected problems, and
make good business decisions. The business plan helps the
entrepreneur shape her origin vision into a better
opportunity by raising critical questions, researching
answers for those questions, and then answering them.
A well-organized plan is essential part of any loan
application. It should specify how the business would repay
any borrowed money.
1. Company Description
- The location of the business and the kind of
ownership or the legal structure of the business.
2. Mission Statement of the Business
3. Long and Short-Term Goals
4. Organization (Organizing, Controlling and Directing)
- What is the organizational set-up and who is
in-charge of each department? What are the tasks of each
employee? What are your operational procedures?
5. Product (or Service)
- What are the goods you are going to produce or services
you are going to render to create revenue for the business?
6. Price
- What is the selling price of your product or service?
7. Promotion and Positioning
- What are the strategies in promoting your product or
services? What kind of branding and advertising you need to
take to create sales of your product or services? What is your
unique selling proposition?
8. Target Market
- Who is your primary and secondary target market?
How are you going to reach your market?
9. Competitive Analysis
- Who will be your direct and indirect competitors?
How these competitors perform in the market?
10. Financial information
- How much capital you need to create a revenue.
What are your expenses and project sales?
11. SWOT Analysis
- What are the strengths, weaknesses, opportunities
and threats of the company? How do we overcome the
weaknesses and threats? How do we maximize the
strengths and opportunities?
12. Timetable
- When are you going to implement the plan? What is
the schedule for organizing, marketing, production?