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Entrepreneurship
Entrepreneurship
is the appropriation and management of human physical and financial resources
for the purpose of creating, implementing, and developing solutions that meet the
needs of the individual or society.
the act of creating a business or businesses while bearing all the risks with the
hope of making a profit.
very important component of a capitalist economy. It thrives in economic system
that support innovation and hard work.

Economic Development
A schemed aimed at improving the living standards of the nation’s citizenry

Human Resources

Natural Resources

Capital Formation

Technology

Entrepreneur
the person who undertakes entrepreneurial activities.

Identifies an economic need

Considers offering a business solution

Proceeds to assemble the resources required

Assumes the risk of either succeeding or failing

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 Core Competencies in Entrepreneurship
It refers to an entrepreneur’s traits or personal attributes rather than physical
assets or financial resources.
There is
no definitive profile on who can become a successful entrepreneur.
Entrepreneurs come in various ages, gender, race, and social class. They even
differ in education and experience. However, research suggests that most
successful entrepreneurs share certain personal attributes.

Personal Entrepreneurial Competencies (PECs)

First Cluster: Achieving Behaviors
Traits that are directly related to the entrepreneur’s desire to be an achiever in
the field of entrepreneurship. Does not settle for mediocrity but instead aspires
for quality.
Traits under Achieving Behaviors:

An Opportunity Seeker and Initiative

Persistent

Committed

Efficient and Quality-Oriented

A Risk Taker

Second Cluster: Planning Behaviors

Traits that support the achieving behavior. A plan serves as a blueprint to be
undertaken by the entrepreneur.
Traits under Planning Behaviors:

A Goal-Setter

An information seeker

Systematic in planning and monitoring

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 Third Cluster: Power Behaviors
Traits that reflect the degree of the interpersonal relations maintained by
successful entrepreneurs in the community. Ability to maintain the highest
degree of interrelationship in the business community and influence others over
his/her line of reasoning.
Traits under Power Behaviors:

A persuasive and positive networker

Independent and self-confident

Career Opportunities
Self-Employed
Working for oneself as a freelancer or the owner of a business rather than for an
employer.

Wage Employment
People who are employed to earn income thru wages or salaries given by their
employers.

Career Opportunities under Wage Employment

Mid-Level Management
At big companies, the C-level folks develop ideas, the ground force does the
work, and mid-level management converts the idea into execution.

Graduates with entrepreneurial degrees are well suited for this opportunity

Business Consultant
People who can go to a client site, identify problems and fix them.

Sales

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 Someone who works in sales or runs the department needs to know how
businesses run.

Research and Development

To work in R&D, you need to understand business concepts, procedures, and
practices.

Not-for-Profit Fundraiser
Being able to raise funds requires understanding the importance of business and
networking relationships.

Teacher
Teach the core competency of courses.

Recruiter
Having had courses that cover operations management, leadership, and a variety
of others, you most likely have a keen senses of what type of person is needed to
fulfill a position.

Business Reporter
If you can write articles, or pick up a quick class to learn it, you are in a prime
position to take the lead on covering a local business beat.

Career Opportunities under Self-Employed

New Venture Creation
Launching a company

Buying a business or franchise

Starting a new venture in a family enterprise

Commercializing a technology

Careers in Existing Entrepreneurial Venture

Start-up small business

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 Corporate entrepreneur

Strategic entrepreneurial unit

Education

Research

Public policy and accelerators

Logical & Creative

Logical Thinking
Systematic and rational way of providing an answer to a question.

Statistical Analysis

Market Analysis

SWOT Analysis

Delphi Technique

Creative Thinking
Looks at things from different perspectives.

Brainstorming

Problem Inventory Analysis

Free Association Method

Checklist Method

Opportunity
A situation or occasion that makes it possible to do something that you want to
do.

Three elements:

You want to do something

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 There are conditions for the realization of the
objectives

You must make decisions or take action on these

conditions to realize your objective.

In business, it is an exploitable set of circumstances with uncertain outcome

requiring a commitment of resources and involving exposure risk.

5 Strategies of Opportunity Recognition

Preconditioning
The individuals assesses his knowledge of the market.

Conception
Entrepreneurial intentions and ideas are generated using logic, creative thinking,
or both.

Visioning
Provides the individual a hunch that can serve as an opportunity for business.

Assessment
Involves the evaluation on whether the idea can be realized or not.

Realization
Suggest the production of prototype.

Opportunity Pathways
Rational Approach
Uses a systematic procedures in proceeding with the implementation of a
business opportunity.

Intuitive Approach

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 Starts with the recognition of an opportunity and proceeds to the grabbing of the
opportunity after sensing that it can be done.

Product Planning and Development

Summarizes the development process of a product from its inception, introduction
in the market, and final decline.

Pre Commercialization Phase

Idea Stage
Refers to the information of business ideas.
Starts with an entrepreneurial intent and proceeds with the development of the
business idea using of logic and creativity.

Product Development Stage

After the visualization of the idea the business idea is concretized with the
production of a prototype.

Concept Stage
The refinement of ideas and visualization of an idea that can serve as business
opportunity, the initial customer evaluation also happens.

Test Marketing Stage

The product or service is introduced in the market after a series of evaluation
and feedback from potential customers.

Business Plan
Gives you control over your business.
the planning process helps you learn about the different things that could affect
your success.
Helps you seek finance.

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 if you’re seeking finance for your business, you will need to show banks and
investors why they should invest in your business.

Process for Developing your Business Plan

1. Begin the Plan with a Summary

2. Describe your company (it’s Business, Goals, and Objectives)

3. Analyze your market and determine your marketing strategy

4. Describe your product/service and how they are produced

5. Describe your management organization

6. Describe your operations

7. Summarize your financial needs

8. Determine your proposed financing

9. Outline your plan(s) for the future

10. Other considerations

Marketing
Marketing is a process through which a product or service is launched and
promoted to possible customers.

Without Marketing no potential customers would be aware of it, sales may

collapse and may end the operation of companies.

Marketing Plan
A business document outlining the marketing strategy and tactics.

A marketing plan is not a static document, It needs to change and evolve as the
business grows, and as new and changing marketing trends develop.
A marketing plan is a comprehensive document that outlines an organization's
marketing strategy and tactics for achieving its business objectives. It serves as
a roadmap that guides the marketing efforts of a company over a specific period,
typically one year.

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 A well-structured marketing plan includes a detailed analysis of the market, target
audience, competition, and sets out specific marketing strategies, goals, and
budgets to promote products or services effectively.

Steps in Preparing the Marketing Plan

Step 1: State your marketing objectives
Step 2: Identify demographics of your target market
Step 3: Identify your competition
Step 4: Describe your product/service
Step 5: Define place (distribution strategy)
Step 6: Choose your promotion strategy
Step 7: Develop a pricing strategy
Step 8: Create a marketing budget

Marketing Process
it starts with identifying the customers’ needs where you tasked to create a
meaningful value proposition.

Value Proposition
is a business or marketing statement that summarizes why a consumer should
buy a company's product or use its service. This statement is often used to
convince a customer to purchase a particular product or service to add a form of
value to their lives.

Tips on How to Create Value Proposition

1. Prepare a situation analysis that details the problem of the
customers.

2. Make a value proposition straight to the point, simple, and

specific.

3. Highlight the value of the product or service.

4. Adapt to the language of your market.

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 5. Add credibility – enhancing elements such as actual
testimonials from customer partners, and other stakeholders,
putting specific assurance elements and social acceptability
metrics found in social media or press materials.

Unique Selling Proposition (USP)

It refers to how you sell your product or services to your customer. You will
address
the wants and desires of your customers.
How to create an effective unique selling proposition to the target customers
are:

1. Identify and rank the uniqueness of the product or services character

2. Be very Specific

3. Keep it Short and Simple (KISS)

Market Segmentation
This is the process of grouping similar or homogenous customers according to
demographic, psychographic, geographic, and behavior.

Demographic Segmentation
This is also called socioeconomic segmentation. It is the process of grouping
customers according to relevant socioeconomic variables for the business
venture.

Examples are:

Income range and social class

Gender and age group

Religion and ethnicity

Geographic Segmentation

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 This is simply grouping customers according to their location. This is critical in
the analysis of the target market as this encompasses the cultures, beliefs,
preferences, politics, and lifestyle of a certain geography.

Psychographic Segmentation
This is the process of grouping customers according to their perceptions, way of
life, motivations, and inclinations.

Perceptions – is a process wherein individual receives external stimuli using the

five senses
Physiological motivations involve the needs of the person. They seek to avoid pain
and give pleasure.

Aspirations are what the customers wants to achieve.

Deprivations involves the customer’s recognition of certain voids to fill

Behavioral Segmentation
This is the process of grouping the customers according to their actions.

Customer Requirements
Service Requirement
An intangible thing or product that cannot be touched but the customer can feel
the fulfillment. There are elements in service requirement like on-time delivery,
service with a smile, easy payment etc. It includes all aspects of how a customer
expects to be treated while purchasing a product and
how easy the buying process goes.

Output Requirement
Tangible thing or things that can be seen. Characteristic specifications that a
consumer expects to be fulfilled in the product. Costumers will avail services as
a product, then various service requirements can take the form of output
requirements.

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 Market Size
It is the approximate number of sellers and buyers in a particular market.
Companies are interested in knowing the market size before launching a new
product or service in the area.

In determining the market size, the entrepreneur will conduct a strategic marketing
research from reliable sources using the following method:

The first step is to estimate the potential market – approximate number of

customers that will buy the product or avail your services.

The second step is to estimate the customers who probably dislike to buy your
product or avail the services.

The third step is for the entrepreneur to estimate the market share, that means
plotting and calculating of the competitor’s market share to determine the
portion of the new venture.

Market size becomes the most important factor if you ever need to raise funding
for your business

Marketing Mix
a combination of tools you can use to satisfy customers and meet company
objectives.
Consumers sometimes call a marketing mix "the offering" or "the offer."

Seven Ps of Marketing Mix

Product
A marketer can satisfy consumer needs and wants through product.
A product consists of both good and service.
Product is a package of benefits of both physical and psychological that a
marketer wants to present, or a pack of expectations that consumer desire to
realize.
Goods can be categorized into business goods or consumer goods.

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 A buyer of consumer goods may not have thorough knowledge of the goods he
buys and uses.
Examples of services include hair salons and accounting firms.

Services can be divided into consumer services, such as hair styling or

professional services, such as engineering and accounting.

Three Levels of a Product

Core Customer Value
The fundamental need or want that consumers satisfy by consuming the product
or service.

Actual Product
The actual product is the product features and its design. Products typically have
lots of features but very few actual benefits to the customer.

Augmented Product
The augmented product is any non-physical parts of the product. Typically the
augmented product includes such things as warrant and customer service.

Place

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 Place is where you sell your product and the distribution channels you use to get
it to your customer.
Much like price, finding the right place to market and sell your product is a key
factor in reaching your target audience. If you put your product in a place that
your target customer doesn’t visit – whether on or offline – then you will likely not
meet your sales target.

Price
Price is the worth that is assigned to a product or service which a consumer
must pay in order to received it. It is the outcome of a difficult set of calculations,
doing research and understanding the market and risk-taking ability.
To identify a successful price, you will want to thoroughly understand your target
audience and their willingness to pay for your product.

Most Common Pricing Strategy

Cost Based Pricing
Adding a standard mark-up to costs

Competition Based Pricing

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 Entrepreneurs must make sure consider the prices of existing products or
services in the market.

Value Based Pricing

Entrepreneurs must be aware of the value attached by customers to products or
services.

Bundling
this refers to two or more products or services in one reduced price.

Penetration Pricing
setting low prices to increase market share, but the entrepreneur will eventually
increase the price once the desired market share is achieved.

Skimming
opposite of penetration pricing where prices are initially high and then they are
lowered to offer the product or service to a wider market (real estate companies
who offered top-tier projects is now offering low-cost housing of same quality to
serve the middle market segment.

Product Line Pricing

pricing different products or services within parallel product array using varying
price points.

Psychological Pricing
considers the psychology and positioning of price in market (ex. Price of haircut is
at P199 because customers tend to think odd prices are considerably lower than
what they are)

Premium Pricing
setting a very high price to reflect elitism and superiority. (ex. Prices of signature
clothes, bags, perfumes)

Cost Plus Pricing

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 mark-up is based on a certain percentage of cost (ex. The entrepreneur wants to
set a 50% mark- up on the coconut juice which is P14 x 50%= P7; the new price is
P14 + P7 = P21)

Promotion
Promotion is a very important decision to make in communicating with the
consumer. Obviously,
defining consumer, the best way to reach them, and what the message should be
are the basic component of this marketing mix.

Promotion Mix
Advertising
purchased promotion.
Radio - Advertising by means of radio gives the advantage of selecting the
territory and audience to which the message is to be directed. It is also cheaper
than TV advertising.
Television – This is the latest and the fast-developing medium of advertising and
is getting increased popularity these days. It is more effective as compared to
radio as it has the advantages of sound and sight. On account of pictorial
presentation, it is more effective and impressive and leaves a lasting impression
on the mind of the viewer.
Print – The print media carry their messages entirely through the visual mode.
These media consist of newspapers, magazines and direct mail.
Electronic – You can also advertise electronically through your company website
and provide important and pertinent information to clients and customers. You can
protect some parts of your website through passwords and give access to
member customers. You can also send advertisements via direct e-mail as part of
your promotional strategy.
Word of Mouth – Word-of-mouth advertising is important for every business, as
each happy customer can steer dozens of new ones your way. And it's one of the
most credible forms of advertising because a person puts their reputation on the

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 line every time they make a recommendation and that person has nothing to gain
but the appreciation of those who are listening.

Generic – The promotion of a particular commodity is without reference to a

specific producer, brand name or manufacturer. Producers join together to expand
total demand for the commodity, thereby helping their own sales. These activities
are often self-funded through assessments on marketing called check-off
programs.
Public Relations/PR - In public relations, the article that features your company is
not paid
for. The reporter, whether broadcast or print, writes about or films your company
as a result of information he or she received and researched.

Sales Promotion
is any initiative undertaken by an organization to promote an increase in sales,
usage or trial of a product or service (i.e., initiatives that are not covered by the
other elements of the marketing communications or promotions mix).

Direct Marketing
is a promotional method that involves presenting information about your company,
product, or service to your target customer without the use of an advertising
middleman. It is a targeted form of marketing that presents information of potential
interest to a consumer that has been determined to be a likely buyer.

People
People, in the marketing mix, refers to anyone directly or indirectly involved in
the business side of the enterprise. That means anyone involved in selling a
product or service, designing it, marketing, managing teams, representing
customers, recruiting and training.
They interact with customers throughout their journey and become the “face” of
the organization for the customer.
Their knowledge of the company’s products and services and how to use them,
their ability to access relevant information and their everyday approach and
attitude needs to be optimized.

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 People can be inconsistent but with the right training, empowerment and
motivation by a company, they can also represent an opportunity to differentiate
an offering in a crowded market and to build valuable relationships with
customers.

Physical Evidence/Packaging
Physical evidence means more than just proof of purchase, While it does include
this important aspect, physical evidence also encompasses the overall existence
of your brand. Think website,
branding, social media, the logo on your store, the packaging of your products
and the post-purchase thank you email.

Provides tangible cues of the quality of experience that a company is offering.

It can be particularly useful when a customer has not bought from the business
before and needs some reassurance or is expected to pay for a service.

Five Basic Functions of Packaging

Protection
One of the major functions of packaging is to provide for the effects of time and
environment for the natural and manufactured products. The protection function
can be divided into some classes.

Natural Deterioration

Physical Protection

Safety

Waste Reduction

Containment
This involves merging of unit loads for shipping. It starts with spots of adhesives
on the individual
shippers that stick them together, straps of steel and plastic, entire coverings of
shrinkable or stretchable plastic films and paper or corrugated wraps that
surround an entire pallet of product.

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 Information
The packaging conveys necessary information to the consumers. The common
information
that packaging provides include general features of the product, ingredients, net
weight of the contents, name and address of the manufacturers, maximum retail
price (MRP).

Utility of Use
The convenience packaging has been devised for foods, household chemicals,
drugs, adhesives, paints, cosmetics, paper goods and a host of other products.
This type of packaging includes dispensing devices, prepackaged hot metals, and
disposable medical packaging.

Promotion
Companies use attractive colors, logos, symbols and captions to promote the
product that can influence customer purchase decision.

Packaging Decisions
Packaging Concept
This defines what the package should be or do for the particular product in terms
of size, shape, materials, color, text, and brand mark and tamperproof ability.

Engineering Tests
This will ensure that the package stands up under normal.

Visual Tests
This is to ensure that the script is legible and colors are harmonious.

Dealer Tests
This is to ensure that the dealers find the packages attractive and easy to handle.

Consumer Tests
This is to ensure favorable consumer response.

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 Positioning/Process
It involves how your business runs, how the service is delivered, how the product
is packaged, how your customers move down the sales funnel, checkout,
shipping, delivery, etc.
Essentially the process describes the series of actions or the fundamental
elements that are involved in delivering the product or service to the customer.

Three Basic Concepts for Positioning

Functional Positions
deal with solving a problem, providing benefits and getting a favorable perception
from investors, stockholders and consumers.

Symbolic Positions
deal with self-image enhancement, ego identification, belongingness, social
meaningfulness and affective fulfilment.

Experiential Positions
deal with providing sensory or cognitive stimulation.

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 Developing a Brand Name
Brand Name is a name, symbol, or other feature that distinguishes a seller's
goods or services in the marketplace. Your brand is one of your greatest assets
because your brand is your customers' over-all experience of your business.
Brand strategy is a long-term design for the development of a popular brand in
order to achieve the goals and objectives.
A well-defined brand strategy shakes all parts of a business and is directly linked
to customer needs, wants, emotions, and competitive surroundings.

Experts believe that a good brand can result in better loyalty for its customers, a
better corporate image and a more relevant identity.
Branding is a powerful and sustainable high-level marketing strategy used to
create or
influence a brand. Branding as a strategy to distinguish products and companies
and to build
economic value to both customers and to brand owners (Pickton and Broderick,
2001).

Commonly Used Branding Strategies

Purpose
Every brand makes a promise. But in a market in which customer confidence is
little and budgetary observance is great, it’s not just making a promise that
separates one brand from another, but having a significant purpose," (Allen
Adamson)
How can you define your business purpose? According to Business Strategy
Insider, purpose can be viewed in two ways:
a. Functional. This way focuses on the assessments of success
in terms of fast and profitable reasons. For example, the
purpose of the business is to make money.
b. Intentional. This way focuses on fulfillment as it relates to
the capability to generate money and do well in the world.

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 Consistency
The significance of consistency is to avoid things that don’t relate to or improve
your brand. Consistency aids to brand recognition, which fuels customer loyalty.

Emotion
There should be an emotional voice, whispering "Buy me". This means you allow
the customers to have the chance to feel that they are part of your brand. You
should find ways to connect more deeply and emotionally with your customers.
Make them feel part of the family and use emotion to build relationships and
promote brand loyalty.

Flexibility
Marketers should remain flexible too in this rapidly changing world. Consistency
targets at setting the standard for your brand, flexibility allows you to adjust and
differentiate your approach from your competition.

Employee
Involvement It is equally important for your employees to be well versed in how
they communicate with customers and represent the brand of your product.

Loyalty
Loyalty is an important part of brand strategy. At the end of the day, the emphasis
on a positive relationship between you and your existing customers sets the tone
for what potential customers can expect from doing business with you.

Competitive
Awareness do not be frightened of competition. Take it as a challenge to improve
your branding strategy and craft a better value in your brand.

Organizational Plan
It is a comprehensive document that outlines how an organization intends to
achieve its goals and objectives.

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 It serves as a roadmap for the organization, providing a clear direction and guiding
principles for decision-making and resource allocation.
One of the section of the business plan that identifies the form of ownership the
business venture will take.

Describes the organizational structure, including the management team’s role,

responsibilities, and reporting relationships.
This section of the business plan must provide sufficient information to assure
potential investors and creditors that the money they are asked to pour into the
business will be in good hands.

Legal Forms of Business Ownership

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 Organizational Structure
Organizational structure refers to the framework or hierarchy that defines how an
organization is
arranged in terms of roles
, responsibilities, reporting relationships, and communication flows.
It outlines how various functions, departments, and individuals within the
organization interact and
work together to achieve common goals. Organizational structure can significantly
impact an
organization's efficiency, communication, decision-making, and overall
effectiveness.

Business Owners
One section of the organization plan could be listing of the business owners and
their qualifications. Their previous entrepreneurial experience, if any the extent of
their investment in the business could also signal who among them would have a
strong influence in determining the general direction the business will take.
Individuals or entities that have a financial stake in the company. They have
invested capital in the business and, in return, expect to earn profits or achieve
other financial and strategic objectives. Business owners can take several forms,
depending on the business's legal structure:

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 In a sole proprietorship, the business owner is a single individual who has
complete ownership and control over the business.
In a
partnership, the owners are the partners who share ownership and
responsibility for the business.
In a
corporation, the owners are the shareholders who hold shares of stock in the
company.

Management Team
It consists of individuals who are responsible for the day-to-day operations and
strategic execution of the business. These individuals are typically hired or
appointed by the business owners to manage various aspects of the company.

Organizational Chart
It is a visual representation of an organization's hierarchical structure. It outlines
the relationships,
roles, and reporting lines among employees, departments, and positions within the
organization.
Organizational charts are valuable tools for understanding the chain of command,
lines of communication, and the overall structure of an organization.

Business Adviser
It is rare for a new (or proposed) venture to have all of the expertise it needs to
grow the
business at the onset. The business owners, however, reinforce the management
team by
having a board of advisers or consultants.
A business adviser is a professional or expert who provides guidance, advice,
and insights
to individuals, entrepreneurs, business owners, and organizations to help them
make

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 informed decisions, solve problems, improve operations, and achieve their
business goals.
Business advisers offer expertise in various aspects of business, including
strategy, finance, marketing, operations, human resources, and more. Their role is
to provide objective and actionable advice to assist their clients in achieving
success.

Operation Plan
The operations section of your business plan is where you explain – in detail –
your company's objectives, goals, procedures, and timeline.
The operations plan is the section of your business plan that gives an overview of
your
workflow, supply chains, and similar aspects of your business
. Any key details of how your business physically produces goods or services will
be included in this section.

Production
The Production process, also referred to as the transformation or conversion
process, is the stage of
production where the materials are
transformed into the final product with the aid of manpower and machine. The
output represents the final product from the production process and distributed to
the customers.

The Three Important Elements in the Production

System
Input
Include raw-materials, machines, labors, etc.

Production Process

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 Also called as conversion process: operations may either manual/mechanical or
chemical.

Output
Finishes goods and service.

Manufacturing
is the process of translating raw materials into finished goods that are
acceptable to the customer’s standards. It consist of three elements:

1. Inputs -the materials or ingredients to be used in creating the product.

2. Process - The transformation phase where inputs are processed by

manpower
and machines to come up with the final product.

3. Output - the final product of the process stage, which is intended to be sold
to target customers.

4M’S of Operations
Manpower
Manpower talks about human labor force involved in the manufacture of
products. It is measured as the most serious and main factor of production. The
entrepreneur must determine, attain and
match the most competent and skilled employees with the jobs at the most
appropriate time period.
Educational qualifications and experience, status of employment, number of
workers required, skills and expertise required for the job are some of the
manpower criteria that must be highly considered by the entrepreneur.

Human Resource Management

Human resource management (HRM) is the process of employing people, training
them, compensating them, developing policies relating to them, and developing

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 strategies to retain them.

Job Description
It enumerates the duties and responsibilities of the potential employee,
including the scope, limitations, and terms and conditions of employment.

Job Title
it is the heading of the job description which summarizes what the employee
will do.
Work schedules, responsibilities, work hours, and salary, must also be clearly
indicated in the job description.

Employee Qualification
In hiring suitable employees for the job needed, entrepreneurs will have to look for
the following criteria:

1. Educational background

2. Work experience

3. Specific skill or knowledge

4. Work attitude

Preparatory Selections of Job Applicants

The entrepreneur can initially choose from his or her personal list of trustworthy
people whom he or she thinks can contribute to the business venture. If this list
does not exist, he or she can turn to employment agencies or manpower agencies
that can do the job.

Headhunters – help companies find a set of people suited for their

requirements.

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 Manpower agencies – recruit temporary employees under a short
contract, usually in a six-month period

One viable option is to consider recommendations and referrals from friends,

relatives, or business partners with an untainted reputation. another move is to
look for his or her business networks.
Last, one of the revolutionary ways of preselecting potential employees is through
digital media.

Selection of Job Applicants

Preliminary screening can easily be done because the entrepreneur will just need
to refer to the required qualifications and eliminate those who did not qualify.
Some established business even conduct qualifying examinations in Math,
English, and Logic before they hire an employee. Some, may give qualitative
examination and interview .

Job Offer
Once the entrepreneur or the hiring manager has been convinced already of the
credentials and the interview answers of the candidate, the JOB CONTRACT is
now prepared.
Job contract – generally summarizes the terms and conditions of the
candidate's employment with the business. It usually includes the following
details:

1. rank or positions

2. list of responsibilities and its scope and limitations

3. salary and benefits including the leaves.

4. work schedule

5. duration of the contract and resignation procedure.

Employee Development

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 Training people is one of the biggest investments of an entrepreneur. He or she
must devise strategies on how to keep employees satisfied working in the
company.
Employee orientation – this is usually a one – to – two - day session that
summarizes the history of the business, its vision and mission, policies, and
procedures, cultures, and norms of the business.

Key performance indicators and key result area should be

introduced in the orientation.

Buddy system - is a training program wherein an expert

member is assigned to assist a new employee
in his or her
function.

Mentor – mentee program is a training program for

supervisors wherein they will be
mentored by a senior
executive
or senior officer of the business.

Materials
It simply refers to the raw materials necessary in the production of a product.
Materials mainly form part of the finished product. Just in case the resources are
below standard, the finished product will unsatisfactory as well.
The entrepreneur may consider cost, quality, availability, credibility of suppliers
and waste that the raw materials may produce.

Machine
Machine is about manufacturing equipment used in the production of goods or
delivery of services.
In the process of selecting the type of equipment to purchase, the entrepreneur
may consider types of products to be produced, production system to be adopted,
cost of the equipment, capacity of the equipment, availability of spare parts in the

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 local market, efficiency of the equipment and the skills required in running the
equipment.

Telecommunications and Information Technology

Landline Phones
Order taking, telemarketing, and teleconferencing with business partners and
customers.

Mobile Phones
Mobile application for order taking, mobile application for payments, mobile
marketing, social media and marketing, teleconferencing with business partners
and customers, marketing research, mobile banking, and internet promotions.

Laptop and Desktop Computers

Marketing research, preparing reports such as financial statements, business
case, inventory reports, and legal and compliance reports.

POS Machines
charging customers’ debit or credit card, tracking sales, storing data, analyzing
purchases.

Accounting and Inventory Software

accounting all business transactions and profitability, monitoring sales and
inventory.

Website
order taking, 24/7 marketing, having online conversations with customers,
tracking customer activities online, collecting customer information.

Method
Method or production method is the process or way of transforming raw
materials to finished products. The resources undergo some stages before it is

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 finalized and become set for delivery to the target buyers.
The selection of the method of production is dependent on product to produce,
mode of production, manufacturing equipment to use and required skills to do the
work.

Service Delivery Process

Service entrepreneurs must prepare a detailed flowchart of the service business,
which is also called a service blueprint. every process in the blueprint must be
relevant to the service business to maximize wastage.

Distribution Method
Distribution is the process of bringing the products or services to customers.
Supply chain or distribution channel was coined because distribution is not a
straight process from the entrepreneur to customers.

Product
The product is the physical output of the whole production process. It should be
valuable and beneficial to the consumers and should satisfy their basic needs and
wants. A product can be heterogeneous or homogeneous. A heterogeneous
product has dissimilar characteristics, parts, and physical appearance. It can be
easily identified from other products. Entrepreneurial ventures that produce
heterogeneous products include makers of furniture, bags, and home decors.

On the other hand, a homogeneous product has a physical appearance, taste, or

chemical content that can hardly be distinguished from that of the other products.
Businesses that produce homogeneous products include makers of soft drinks,
and medicines.

Product Development
This is the process of developing, testing, and commercializing a product or
service with the ultimate objective of solving the problem of the primary target
market. It is composed of four
sequential steps:

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 1. developing a product or service description,

2. creating a prototype

3. testing the prototype

4. validating the market.

Product or Service Description

A product or service description simply describes how a product or service
works and how it benefits the customers. A clear product or service description
is important because this will serve as the blueprint of all business operations.

Creating a Prototype of the Product or Service

PROTOTYPE – this is a preliminary model or sample of a new product or service
that is created to test a product concept or service process.
Creating a prototype is the stage where the entrepreneur can experiment,
develop, and make some improvements in the potential product or service.
Creating a prototype lessens implementation or commercialization risks.

Testing the Product Prototype

Testing the prototype will uncover the final loopholes that need to be fixed before
commercialization.
Testing the prototype is mandatory to ensure that the product or service will not
fail the customers and will deliver its definitive purpose.
It gives the entrepreneur a leeway to examine and scrutinize the prototype and
provide feedback as to what can be improved before the launch.

Testing Methods
Focus Group Discussion
the participants will provide insights about the new product or service. The
objective of FGD is to identify errors, deficiencies, and issues that may impede the
success of the product.

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 Legality and Ethical Test
Prior to launching, the entrepreneur must ensure that the product or service
complies with all relevant laws and regulations and has a necessary license or
permit.

Safety Test
The entrepreneur must ensure that the product is safe to us, safe to be consumed,
and safe to be applied.

Product Costing Test

The entrepreneur must examine every stage of the manufacturing process or
every process of the service blueprint to evaluate and finalize the cost involved.

Component Test
Each component of the product or service must be tested independently to
identify component failures for goods or service failures for services.

Competitor’s Product/Service Test

the entrepreneur must test a similar line of products or the competitors' product or
service itself to compare and get the best practices to be applied to the new
product or service.

Validation of Market Acceptability

Validation of market acceptability is the process of finding out if the intended
primary target market will be buying the product or availing the service.
Market acceptability is a critical factor that entrepreneur must validate before
launching the product or service, because this can strongly suggest if the
business will be successful or not.

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