ENTREPRENEURSHIP QUARTER 1 – MODULE 2 RECOGNIZE A POTENTIAL MARKET

In this module, you will know the following:

• Associate the market problem to be solved or the market need to be met;
• Look solution/s in terms of product/s and service/s that will meet the need using techniques on seeking, screening, and
seizing opportunities:
• Break down the market need;
• Detect the possible product/s or service/s that will meet the need of your locality.
• Screen the proposed solution/s based on viability, profitability, and customer need in developing a Business Plan.
• Choose the best product or service that will meet the market need.

This is your guidelines on how to develop a Business Plan. By identifying and appealing to particular group of consumers
you need to check on the possible product needed in your locality. Business industries offers products and services. The
activity of making, buying, or selling goods or providing services in exchange of money is called business. Product is
something that is made or grown to be sold or use, or something that is result of a process. Services are those intangible
products where there is a skill involve and has a value.
After completing this module, you need to:
• Learn and understand the sources of opportunities for business.
• Determine the essentials in the entrepreneur’s opportunity seeking
• Identify market problems and propose potential products or services that will meet the market needs.
• Know the problem in which a business opportunity arises from.
• Identify, screen and proposed solution to meet the problem
• Select the best product or service that will meet the market’s need with a consideration of generating profit.
WHAT I KNOW
Lets check first what you already know. True or False. On the space provided before the number write T if the statement
is true and F if the statement is false.
_____ 1. Entrepreneur enter a business because of its profitability.
_____ 2. New business ideas provide business opportunities.
_____ 3. Entrepreneurial process starts with identification of entrepreneurial opportunities.
_____ 4. Not all changes in the external environment provides business opportunities.
_____ 5. Discovery and advancement in the use of technology are additional good source of business opportunities.
_____ 6. Interest and hobbies of the people are possible good source of entrepreneurial ideas.
_____ 7. Industry environment of business is under technological discovery and advancement sources of opportunities.
_____ 8. The variables in the physical environment include the economic forces.
_____ 9. Entrepreneurial heart flame refers to the ability of the entrepreneur to sense without using the five senses.
_____ 10. Entrepreneurial mind frame permits the entrepreneur to see things in a very positive and optimistic light.
_____ 11. The business operates in the industry environment.
_____ 12. Opening a Halo – halo business during summer seasons.
_____ 13. Environmental scanning is conducted only when a new business is opened.
_____ 14. When the barriers to the competitive forces are high, the effect to the growth of the business is likewise high.
_____ 15. Entrepreneurs need not observe and evaluate the priorities of the government.
WHAT’S IN
In the previous lesson, you already know about the difference between businessman and entrepreneur. Knowing all the
entrepreneurial concepts will not assure a person of becoming a successful entrepreneur and not all business people are
entrepreneurs. Some says being an entrepreneur is a calling; a lot of qualities must be possessed to be considered
successful and sustainable. So, if you are given a great opportunity to venture into the field of entrepreneurship, it may be
a long process to undertake and the willingness to take a risk. Also, you’re not only the one who’s in progress but at the
same time, you’re helping for the development growth of our economy.

FIX ME Direction: Arrange the scrambled letters to form a correct word.

1. UPSIERSPL ________________ 6. UTSBETIUST ________________
2. NISSUBES ________________ 7. ICEVERS ________________
3. KERTAM ________________ 8. PECITIONMTO _______________
4. EDICRRSTO __ ______________ 9. IMCLTEA ________________
5. SUTEMOSRC _______________ 10. NTERTSAN ________________

Entrepreneurial ideas
 The creation of an entrepreneurial ideas leads to the identification of entrepreneurial opportunities, which in turn results
in the opening of an entrepreneurial venture. The entrepreneurial process of creating a new venture is presented in the
diagram below. (Aduana, 2017)
Creation of Identification of Opening of
entrepreneurial entrepreneurial entrepreneuria
Ideas Creation of Opportunities l Venture

Figure 1. The Entrepreneurial Process of Creating New Venture

Essentials in Entrepreneur’s Opportunity Seeking
These are the basic foundation that the entrepreneur must have in seeking opportunities:
Entrepreneurial mind frame. This allows the entrepreneur to see things in a very positive and optimistic way in the midst
of difficult situation. Being a risk - taker, an entrepreneur can find solution when problems arise.
Entrepreneurial heart flame. Entrepreneur's driven passion, they are attracted to discover satisfaction in the act and
process of discovery. Passion is the great desire of an entrepreneur to achieve his/her goals.
Entrepreneurial gut game. This refers to the ability of the entrepreneur of being intuitive. This also known as intuition. The
gut game also means confidence in one’s self and the firm believes that everything you aspire can be reached. Sources of
Opportunities
Sources of Opportunities:
There are many ways to discover opportunities. Looking at the big picture some have noticed the emerging trends and
patterns for business opportunities. While others are trying to find out their target market. Some are the following
sources of opportunities
1. Changes in the environment Entrepreneurial ideas arise when changes happen in the external environment. A person
with an entrepreneurial drive views these changes positively. External environment refers to the physical environment,
societal environment, and industry environment where the business operates.
1.1 The physical environment includes
a. Climate- the weather conditions.
b. Natural resources- such as minerals, forests, water, and fertile land that occur in nature and can be used for
economic gain.
c. Wildlife- includes all mammals, birds, reptiles, fish, etc., that live in the wild.
1.2 The Societal environment includes the various forces like
a. Political forces- includes all the laws, rules, and regulations that govern business practices as well as the permits,
approvals, and licenses necessary to operate the business.
b. Economic forces- such as income level and employment rate.
c. Sociocultural forces- customs, lifestyles and values that characterize a society.
d. Technological environment- New inventions and technology innovations.
1.3 The industry environment of the business includes:
a. Competitors b. Customers c. Creditors d. Employees e. Government f. Suppliers
For example, one factor in the physical environment that can easily change is the climate. The temperature is very high
during summer but very low during the rainy season. An individual with entrepreneurial drive can be extremely
imaginative and inventive in identifying opportunities. He/she can venture a business that responds to the needs of the
people during summer and rainy season.
2. Technological discovery and advancement
A person with entrepreneurial interest sees possibility of business opportunities in any new discovery or because of the
use of latest technology. For example, an individual with knowledge in repair and installation of a machine engine
discovers that additional engine parts that considerably reduce fuel consumption.
3. Government’s thrust, programs, and policies
The priorities, projects, programs, and policies of the government are also good sources of ideas. For example, the use of
firecrackers to celebrate New Year’s Eve is strictly prohibited. People without entrepreneurial interest will view the
ordinance as a plain restriction. However, for an entrepreneur, it is a business opportunity to come up with a new product
that will serve as a substitute for firecrackers.
4. People’s interest
The interest, hobbies, and preferences of people are rich source of entrepreneurial ideas. Like the increasing number of
Internet Café at present could be lead to the strong attachment of young people to computers.
5. Past experiences
The expertise and skills developed by a person who has worked in a particular field may lead to the opening of related
business enterprise. For example an accountant who has learned the appropriate accounting and management skills and
techniques in a prominent accounting firm can start his/her business venture by opening his/her own accounting firm.
 Forces of Competition Model It is also known as the “five forces of competition,” An industry environment is a competitive
environment. Regardless of what product or services you have, competition is always present
Competition – it is the act or process of trying to get or win something. For example, the prices are lower when there is a
competition among the stores.
These are the five forces competing within the industry:
• Buyers • Potential new entrants • Rivalry among existing firms • Substitute products • Supplier
Buyers The buyers are the one that pays cash in exchange to your goods and services.
For example, the influenced of the price or in the bargaining strategy. The buyer has a strong and magnified bargaining
power. The threat of its bargaining power will be less if the following factors notice:
a. There are several suppliers available in the market. b. The buyer has the potential for backward integration.
c. The cost of switching the supplier cost is minimal. d. The product represents a high percentage of the buyer’s cost.
e. The buyer purchases large portions of the seller’s product or services.
2. Potential New Entrants A new entrant is defined as the one who enters something. For example, the level of capital
requirements, if the business requires huge capital, new entrants should decline to join the business. This gives a threat to
the business. This can be notice if there is the presence of the following factors:
a. Substantial capital requirement. b. Strict government policy. c. Difficulty in accessing distribution channels.
d. Economies of scale. e. High cost of product differentiation. f. High switching cost
3. Rivalry among Existing Firms Rivalry is a state or situation in which people or groups are competing with each other.
For example it depends on the Marketing strategy of your competitor, like giving freebies and special offers. The intensity
of rivalry among existing firms is characterized to the following factors:
a. Diversity of rivals. b. Number of competing firms. c. Characteristics of the products or services.
d. Increased capacity. e. Amount of fixed costs. f. Rate of industry growth.
4. Substitute Products Substitute means anything that takes the place or function of another. For example the consumers
decide to use margarine as a substitute for butter. In case the price of butter increases, preferably the consumer will
gradually switch to margarine.
A substitute product can give a big threat in the industry environment if the following factors are notice:
a. Switching cost is low. b. Preferences and tastes of the customers easily change.
c. Product differentiation is highly noticeable d. The quality of substitute products dramatically improves.
e. The price of substitute product is substantially lower.
5. Suppliers The Suppliers are the one that provide something that is needed or wanted.
For example if the supply and services being offered is unstable or keep. The intensity of the threat is strong in this kind of
the competitive force in the industry. This can be notice if there is the presence of the following factors:
a. The supplier has the ability for forward integration. b. Suppliers in the industry are few, but the sales volume is high.
c. Substitute products are not readily available in the market d. The switching cost is very high.
e. The product or service is unique.
WORD HUNT Think of words or terms related to the topic and find the words in the grid horizontally, vertically, or
diagonally. Write the words or terms on the space provided below.
V E N T U R E A B C D E F A B C D E F S
A B N P O H W Q G S D L O S J E T U E Q
B C T R P R O D U C T S R L R E H R B E
C V R E P G O Y T R E P T G S T V A C N
V H E N O V R F D A B C U D E I O G V T
H K B E R C T K R F G E N H C J R K H R
K I C I T H U L V D E O C E U A T U K E
I D V D U K N S J Y I R Z O Q E U Y I P
D G H G N O U A O F G T U X N X N D R
G L K L I P W L R E P U R E P O J O G E
L H Z H T S P K L I O N H L I O M E L N
H A X Q I M I L G C V R I V A L R Y H E
A D S J E T U R E A B B S T I T U H A U
S S U B S T I T U T E S J E T U R F J R
V T U R E A B Q R S J E T U T U R E A B
1. _________________ 2. ____________________ 3. ___________________ 4. ___________________ 5.____________________
6. ___________________ 7. __________________ 8. ___________________9. ____________________ 10. ____________________

COMPLETE ME Complete the table below by supplying it with products that you consider similar. Write the product and not
the brand in their respective columns. Then describe and differentiate its characteristics and uses.
 No Primary Product ( Product name ) Substitute Product ( Product name )

Example Butter - expensive price used as bread spread. Margarine – lesser price also used as bread spread

ASSESSMENT:
Direction: Encircle the letter of your choice.
1. It is the process of considering, evaluating, and pursuing market-based activities that are believed to be advantageous for
the firm.
A. Opportunity seeking C. Opportunity screening B. Opportunity seizing D. Sources of opportunity
2. This is essential to opportunity seeking which allows the entrepreneur to see things in a positive and optimistic light in the
midst of crisis or difficult situations.
A. Entrepreneurial mind frame [Link] heart flame [Link] gut game [Link] heart frame
3. It is the ability of entrepreneur that can sense without using the five senses, also known as intuition.
A. Entrepreneurial mind frame [Link] heart flame [Link] gut game D. Entrepreneurial heart frame
4. One of the essetials of entrepreneur’s opportunity seeking that refers to the driven passion of an individual.
A. Entrepreneurial mind frame [Link] heart flame [Link] gut game D. Entrepreneurial heart frame
5. What variable of societal environment includes income level and employment rate?
A. Economic forces B. Political forces C. Sociocultural forces D. Technological forces
For questions 6 and 7 refer to the following statements:
A. Preferences and tastes of the customers easily change. B. The buyer has the potential for backward integration.
C. The cost of switching the supplier cost is minimal. D. Product differentiation is highly noticeable.
6. Which are the factors of the substitute product that pose a great threat in the industry environment?
A. A,B,C,D C. A and D B. A and C D. B and C
7. Which are the factors that influenced the buyer to have a less threats because of the bargaining power?
A. A only C. A and D B. A and C D. B and C
8. They are the one that pays cash in exchange to your goods and services.
A. Buyers C. sellers B. Competitors D. suppliers
9. The intensity of rivalry among existing firms is characterized to the following factors except one:
A. Diversity of rivals. B. Number of competing firms.
C. Characteristics of the products or services. D. The product represents a high percentage of the buyer’s cost.
10. The following are the forces competing within the industry except one:
A. Potential new entrants and Substitute Products B. Buyers and Suppliers
C. Rivalry among existing firms D. Needs and Wants
11. Which of the following good sources of entrepreneurial ideas determine the interest, hobbies and preferences of
people.
A. Changes in the environment C. People’s enterest
B. Technological discovery D. Past experiences
12. Societal environment includes the following, except:
A. Economic forces C. Political force s B. Sociocultural forces D. Natural resources
13. Which among the following is the result of identifying entrepreneurial opportunities?
A. Creation of entrepreneurial ideas C. Sources of opportunity
B. Opening of entrepreneurial venture D. Entrepreneurial process
14. What entrepreneurial idea will you recognized, if you consider the new discovery and advancement of technology as
source of opportunity?
A. Changes in the environment B. Technological discovery and advancement
C. Government’s thrust, programs, and policies D. People’s interest
15. Source of entrepreneurial idea where expertise and skills developed by a person from its previous work can lead to the
opening of a related business enterprise.
A. Government’s thrust, programs, and policies B. Past experiences
C. People’s interests D. Technological discovery and advancement
Additional Activities
Conduct a short interview of any successful entrepreneur in your locality. Ask the following question: • What is the nature of
your business? • Who are your customers? • What industry are you operating? • How much was your starting capital? •
How many years in operation? • How many manpower involved from the start of operation until now?
Name :____________________________________________________________Subject: ENTREP
Section:_______________________Grade:________________ Date:________________________
 Entrepreneurship
Quarter 1 – Module 2
 Recognize a Potential Market
Welcome to the second module of entrepreneurship. This module will allow you to
learn independently the knowledge and skills in recognizing a potential market. It
will guide you to identify the market problems to be solved or the market needs to
be met; and let you propose solution/s in terms of product/s and service/s that will
match the need using techniques on seeking, screening, and seizing opportunities.
Also in this module we are going to identify the market problem and propose
solutions with regards to products and services, to continue discover the ideal
buiness you are going to offer to your community. Basically, in return to your hard
time of selling your product you can generate profit.
In this module, you will know the following:
• Associate the market problem to be solved or the market need to be met;
• Look solution/s in terms of product/s and service/s that will meet the need using
techniques on seeking, screening, and seizing opportunities:
• Break down the market need;
• Detect the possible product/s or service/s that will meet the need of your locality.
• Screen the proposed solution/s based on viability, profitability, and customer
need in developing a Business Plan.
• Choose the best product or service that will meet the market need.

This is your guidelines on how to develop a Business Plan. By identifying and

appealing to particular group of consumers you need to check on the possible
product needed in your locality. Business industries offers products and services.
The activity of making, buying, or selling goods or providing services in exchange of
money is called business. Product is something that is made or grown to be sold or
use, or something that is result of a process. Services are those intangible products
where there is a skill involve and has a value.

After completing this module, you need to:

• Learn and understand the sources of opportunities for business.

• Determine the essentials in the entrepreneur’s opportunity seeking
• Identify market problems and propose potential products or services that will
meet the market needs.
• Know the problem in which a business opportunity arises from.
• Identify, screen and proposed solution to meet the problem
• Select the best product or service that will meet the market’s need with a
consideration of generating profit.

What I Know
Lets check first what you already know. True or False. On the space provided before
the number write T if the statement is true and F if the statement is false.
_____ 1. Entrepreneur enter a business because of its profitability.
_____ 2. New business ideas provide business opportunities.
_____ 3. Entrepreneurial process starts with identification of entrepreneurial
opportunities.
_____ 4. Not all changes in the external environment provides business
opportunities.
_____ 5. Discovery and advancement in the use of technology are additional good
source of business opportunities.
_____ 6. Interest and hobbies of the people are possible good source of
entrepreneurial ideas.
_____ 7. Industry environment of business is under technological discovery and
advancement sources of opportunities.
_____ 8. The variables in the physical environment include the economic forces.
_____ 9. Entrepreneurial heart flame refers to the ability of the entrepreneur to
sense without using the five senses.
____ 10. Entrepreneurial mind frame permits the entrepreneur to see things in a
very positive and optimistic light.
_____ 11. The business operates in the industry environment.
_____ 12. Opening a Halo – halo business during summer seasons.
____ 13. Environmental scanning is conducted only when a new business is
opened.
____ 14. When the barriers to the competitive forces are high, the effect to the
growth of the business is likewise high.
____ 15. Entrepreneurs need not observe and evaluate the priorities of the
government.
What’s In

In the previous lesson, you already know about the difference between
businessman and entrepreneur. Knowing all the entrepreneurial concepts will not
assure a person of becoming a successful entrepreneur and not all business people
are entrepreneurs. Some says being an entrepreneur is a calling; a lot of qualities
must be possessed to be considered successful and sustainable. So, if you are given
a great opportunity to venture into the field of entrepreneurship, it may be a long
process to undertake and the willingness to take a risk. Also, you’re not only the one
who’s in progress but at the same time, you’re helping for the development growth
of our economy.

FIX ME Direction: Arrange the scrambled letters to form a correct word.

1. UPSIERSPL ________________ 6. UTSBETIUST ________________
2. NISSUBES ________________ 7. ICEVERS ________________
3. KERTAM ________________ 8. PECITIONMTO _______________
4. EDICRRSTO __ ______________ 9. IMCLTEA ________________
5. SUTEMOSRC _______________ 10. NTERTSAN ________________

Entrepreneurial Ideas
The creation of an entrepreneurial ideas leads to the identification of
entrepreneurial opportunities, which in turn results in the opening of an
entrepreneurial venture. The entrepreneurial process of creating a new venture is
presented in the diagram below. (Aduana, 2017)

Creation of
entrepreneurial Identification of Opening of
entrepreneurial entrepreneurial
Ideas Creation
Opportunities Venture
of

Figure 1. The Entrepreneurial Process of Creating New Venture

Essentials in Entrepreneur’s Opportunity Seeking
These are the basic foundation that the entrepreneur must have in seeking
opportunities:
Entrepreneurial mind frame. This allows the entrepreneur to see things in a very
positive and optimistic way in the midst of difficult situation. Being a risk - taker, an
entrepreneur can find solution when problems arise.
Entrepreneurial heart flame. Entrepreneur's driven passion, they are attracted to
discover satisfaction in the act and process of discovery. Passion is the great desire
of an entrepreneur to achieve his/her goals.
Entrepreneurial gut game. This refers to the ability of the entrepreneur of being
intuitive. This also known as intuition. The gut game also means confidence in one’s
self and the firm believes that everything you aspire can be reached. Sources of
Opportunities
Sources of Opportunities:
There are many ways to discover opportunities. Looking at the big picture some
have noticed the emerging trends and patterns for business opportunities. While
others are trying to find out their target market. Some are the following sources of
opportunities

1. Changes in the environment Entrepreneurial ideas arise when changes happen in

the external environment. A person with an entrepreneurial drive views these
changes positively. External environment refers to the physical environment,
societal environment, and industry environment where the business operates.
1.1 The physical environment includes
a. Climate- the weather conditions.
b. Natural resources- such as minerals, forests, water, and fertile land that occur in
nature and can be used for economic gain.
c. Wildlife- includes all mammals, birds, reptiles, fish, etc., that live in the wild.
1.2 The Societal environment includes the various forces like
a. Political forces- includes all the laws, rules, and regulations that govern business
practices as well as the permits, approvals, and licenses necessary to operate the
business.
b. Economic forces- such as income level and employment rate.
c. Sociocultural forces- customs, lifestyles and values that characterize a society.
d. Technological environment- New inventions and technology innovations.
1.3 The industry environment of the business includes:
a. Competitors
b. Customers
c. Creditors
d. Employees
e. Government
f. Suppliers

For example, one factor in the physical environment that can easily change is the
climate. The temperature is very high during summer but very low during the rainy
season. An individual with entrepreneurial drive can be extremely imaginative and
inventive in identifying opportunities. He/she can venture a business that responds
to the needs of the people during summer and rainy season.
2. Technological discovery and advancement
A person with entrepreneurial interest sees possibility of business opportunities in
any new discovery or because of the use of latest technology. For example, an
individual with knowledge in repair and installation of a machine engine discovers
that additional engine parts that considerably reduce fuel consumption.
3. Government’s thrust, programs, and policies
The priorities, projects, programs, and policies of the government are also good
sources of ideas. For example, the use of firecrackers to celebrate New Year’s Eve is
strictly prohibited. People without entrepreneurial interest will view the ordinance
as a plain restriction. However, for an entrepreneur, it is a business opportunity to
come up with a new product that will serve as a substitute for firecrackers.
4. People’s interest
The interest, hobbies, and preferences of people are rich source of entrepreneurial
ideas. Like the increasing number of Internet Café at present could be lead to the
strong attachment of young people to computers.
5. Past experiences
The expertise and skills developed by a person who has worked in a particular field
may lead to the opening of related business enterprise. For example an accountant
who has learned the appropriate accounting and management skills and techniques
in a prominent accounting firm can start his/her business venture by opening
his/her own accounting firm.
Forces of Competition Model It is also known as the “five forces of competition,” An
industry environment is a competitive environment. Regardless of what product or
services you have, competition is always present
Competition – it is the act or process of trying to get or win something. For
example, the prices are lower when there is a competition among the stores.
These are the five forces competing within the industry:
• Buyers • Potential new entrants • Rivalry among existing firms • Substitute
products • Supplier
Buyers The buyers are the one that pays cash in exchange to your goods and
services.
For example, the influenced of the price or in the bargaining strategy. The buyer
has a strong and magnified bargaining power. The threat of its bargaining power will
be less if the following factors notice:
a. There are several suppliers available in the market.
b. The buyer has the potential for backward integration.
c. The cost of switching the supplier cost is minimal.
d. The product represents a high percentage of the buyer’s cost.
e. The buyer purchases large portions of the seller’s product or services.
2. Potential New Entrants A new entrant is defined as the one who enters
something. For example, the level of capital requirements, if the business requires
huge capital, new entrants should decline to join the business. This gives a threat to
the business. This can be notice if there is the presence of the following factors:
a. Substantial capital requirement.
b. Strict government policy.
c. Difficulty in accessing distribution channels.
d. Economies of scale.
e. High cost of product differentiation.
f. High switching cost

3. Rivalry among Existing Firms Rivalry is a state or situation in which people or

groups are competing with each other.
For example it depends on the Marketing strategy of your competitor, like giving
freebies and special offers. The intensity of rivalry among existing firms is
characterized to the following factors:
a. Diversity of rivals.
b. Number of competing firms.
c. Characteristics of the products or services.
d. Increased capacity.
e. Amount of fixed costs.
f. Rate of industry growth.
4. Substitute Products Substitute means anything that takes the place or function of
another. For example the consumers decide to use margarine as a substitute for
butter. In case the price of butter increases, preferably the consumer will gradually
switch to margarine.
A substitute product can give a big threat in the industry environment if the
following factors are notice:
a. Switching cost is low.
b. Preferences and tastes of the customers easily change.
c. Product differentiation is highly noticeable
d. The quality of substitute products dramatically improves.
e. The price of substitute product is substantially lower.
5. Suppliers The Suppliers are the one that provide something that is needed or
wanted.
For example if the supply and services being offered is unstable or keep. The
intensity of the threat is strong in this kind of the competitive force in the industry.
This can be notice if there is the presence of the following factors:
a. The supplier has the ability for forward integration.
b. Suppliers in the industry are few, but the sales volume is high.
c. Substitute products are not readily available in the market
d. The switching cost is very high.
e. The product or service is unique.

WORD HUNT Think of words or terms related to the topic and find the words in the
grid horizontally, vertically, or diagonally. Write the words or terms on the space
provided below.
V E N T U R E A B C D E F A B C D
E F S
A B N P O H W Q G S D L O S J E T
U E Q
B C T R P R O D U C T S R L R E H
R B E
C V R E P G O Y T R E P T G S T V
A C N
V H E N O V R F D A B C U D E I O
G V T
H K B E R C T K R F G E N H C J R
K H R
K I C I T H U L V D E O C E U A T
U K E
I D V D U K N S J Y I R Z O Q E U
Y I P
 D G H G N O U A O F G T U X N X N
D R
G L K L I P W L R E P U R E P O J
O G E
L H Z H T S P K L I O N H L I O M
E L N
H A X Q I M I L G C V R I V A L R
Y H E
A D S J E T U R E A B B S T I T U
H A U
S S U B S T I T U T E S J E T U R
F J R
V T U R E A B Q R S J E T U T U R
E A B

1. ____________________ 6. ____________________ 2. ____________________

7.____________________ 3. ____________________ 8. ____________________
4. ____________________ 9. ____________________ 5. ____________________
10. ____________________
COMPLETE ME Complete the table below by supplying it with products that you
consider similar. Write the product and not the brand in their respective columns.
Then describe and differentiate its characteristics and uses.

Primary Product ( ProductSubstitute Product ( Product

name ) name )
Example Butter - expensive price used
Margarine – lesser price also
as bread spread. used as bread spread
Assessment:
Direction: Encircle the letter of your choice. 1. It is the process of considering,
evaluating, and pursuing market-based activities that are believed to be
advantageous for the firm. A. Opportunity seeking C. Opportunity screening B.
Opportunity seizing D. Sources of opportunity
2. This is essential to opportunity seeking which allows the entrepreneur to see
things in a positive and optimistic light in the midst of crisis or difficult situations. A.
Entrepreneurial mind frame C. Entrepreneurial heart flame B. Entrepreneurial gut
game D. Entrepreneurial heart frame
3. It is the ability of entrepreneur that can sense without using the five senses, also
known as intuition.
A. Entrepreneurial mind frame C. Entrepreneurial heart flame B. Entrepreneurial
gut game D. Entrepreneurial heart frame 4. One of the essetials of entrepreneur’s
opportunity seeking that refers to the driven passion of an individual.
A. Entrepreneurial mind frame C. Entrepreneurial heart flame B. Entrepreneurial
gut game D. Entrepreneurial heart frame
5. What variable of societal environment includes income level and employment
rate?
A. Economic forces C. Political forces B. Sociocultural forces D. Technological
forces
For questions 6 and 7 refer to the following statements:
A. Preferences and tastes of the customers easily change. B. The buyer has the
potential for backward integration. C. The cost of switching the supplier cost is
minimal. D. Product differentiation is highly noticeable.
6. Which are the factors of the substitute product that pose a great threat in the
industry environment?
A. A,B,C,D C. A and D B. A and C D. B and C
7. Which are the factors that influenced the buyer to have a less threats because of
the bargaining power?
A. A only C. A and D B. A and C D. B and C
8. They are the one that pays cash in exchange to your goods and services.
A. Buyers C. sellers B. Competitors D. suppliers
9. The intensity of rivalry among existing firms is characterized to the following
factors except one:
A. Diversity of rivals. B. Number of competing firms. C. Characteristics of the
products or services. D. The product represents a high percentage of the buyer’s
cost.
10. The following are the forces competing within the industry except one:
 A. Potential new entrants and Substitute Products B. Buyers and Suppliers C. Rivalry
among existing firms D. Needs and Wants
11. Which of the following good sources of entrepreneurial ideas determine the
interest, hobbies and preferences of people.
A. Changes in the environment C. People’s enterest B. Technological discovery
D. Past experiences
12. Societal environment includes the following, except:
A. Economic forces C. Political forces B. Sociocultural forces D. Natural resources
13. Which among the following is the result of identifying entrepreneurial
opportunities?
A. Creation of entrepreneurial ideas [Link] of opportunity B. Opening of
entrepreneurial venture D. Entrepreneurial process
14. What entrepreneurial idea will you recognized, if you consider the new
discovery and advancement of technology as source of opportunity?
A. Changes in the environment B. Technological discovery and advancement C.
Government’s thrust, programs, and policies D. People’s interest
15. Source of entrepreneurial idea where expertise and skills developed by a person
from its previous work can lead to the opening of a related business enterprise.
A. Government’s thrust, programs, and policies B. Past experiences C. People’s
interests D. Technological discovery and advancement

Additional Activities
Conduct a short interview of any successful entrepreneur in your locality. Ask the
following question: • What is the nature of your business? • Who are your
customers? • What industry are you operating? • How much was your starting
capital? • How many years in operation? • How many manpower involved from the
start of operation until now?
Name :____________________________________________________________Sub
ject: ENTREP
Section:_______________________Grade:________________
Date:________________________