REVIEWER FOR ENTREP

I. INTRODUCTION TO ENTREPRENEURSHIP

Definition

• Entrepreneurship refers to the process of creating, organizing, and operating a business

venture to generate profit while taking on financial risk.

• The word "entrepreneur" originates from the French word "entreprendre", meaning "to
undertake."

• Entrepreneurs are individuals who take risks to introduce new products, services, or concepts
to the market.

Significance of Entrepreneurship in Society

1. Employment Creation – Entrepreneurs hire workers, reducing unemployment rates.

2. Economic Development – Business expansion boosts the economy by increasing investments.

3. Technological Advancement – Entrepreneurs drive innovation and efficiency.

4. Market Dynamics – Increased competition improves product quality and pricing.

5. Socio-Cultural Changes – Entrepreneurship addresses social and cultural issues with sustainable
solutions.

TYPES OF ENTREPRENEURSHIP

Definition

• Different entrepreneurship types exist based on business goals, industry, and innovation.

1. Agripreneurship – Focuses on agriculture-based businesses such as farming, organic food

production, and agro-processing.

o Example: Edita Dacuycuy – Established the first organic dragon fruit farm in the
Philippines.

2. Buyer Entrepreneurship – Involves purchasing and merging existing businesses.

o Example: Tony Tan Caktiong – Acquired Greenwich, Chowking, and Red Ribbon under
Jollibee.

3. Ecopreneurship – Businesses aimed at sustainability and environmental conservation.

o Example: Jamico Yco Jamlang – Founded The Bamboo Company promoting eco-friendly
products.

4. Imitator Entrepreneurship – Replicates successful business models with modifications.

 o Example: Bin Lin – Co-founder of Xiaomi, which adapted Apple’s design into budget
smartphones.

5. Intrapreneurship – Entrepreneurs work within a company to develop new innovations.

o Example: Paul Buchheit – Created Gmail while working at Google.

6. Large Business Entrepreneurship – Large firms that continuously innovate and expand.

o Example: Ernest Cua – CEO of Globe Telecom.

7. Scalable Startup Entrepreneurship – Small businesses designed for rapid growth and high
profits.

o Example: Roland Navarro de Ros – Founded Kumu, a leading Philippine social

entertainment app.

8. Small Business Entrepreneurship – Local or family-run businesses with limited employees.

o Example: Nericel Bonus – Gained success with live thrift clothing sales (ukay-ukay).

9. Social Entrepreneurship – Focuses on solving social problems through business.

o Example: Bryan Benitez McClelland – Founder of Bambike, an eco-friendly bike

manufacturer.

10. Technopreneurship – Uses technology for business solutions and innovation.

o Example: Diosdado Banatao – Created microchips used in personal computers.

SMALL, MEDIUM, AND MICRO-SIZED ENTERPRISES (SMME)

Definition

• SMMEs are businesses classified by their capital investment and size.

Type of Enterprise Capital Requirement

Micro Less than P50,000

Cottage P50,001 – P500,000

Small P500,001 – P5,000,000

Medium P5,000,001 – P20,000,000

FORMS OF BUSINESS OWNERSHIP

Definition
 • The type of business ownership determines legal structure, decision-making, and financial
liability.

Type Advantages Disadvantages

Sole Proprietorship – Owned by one Easy to start, full control, low Unlimited liability, limited
person. tax. capital.

Partnership – Owned by two or more Shared resources, easy to Unlimited liability,

people. raise capital. disagreements.

Corporation – Legally separate from Limited liability, easier to Expensive to set up, complex
owners. attract investors. regulations.

Cooperative – Owned by members for Democratic control, tax Profit distribution issues,
mutual benefit. benefits. complex structure.

ENTREPRENEURIAL COMPETENCIES & MOTIVATION

Definition

• Entrepreneurs require specific skills and motivations to succeed in business.

Core Competencies of an Entrepreneur

1. Leadership – Inspires and guides the business.

2. Communication – Effectively conveys business ideas.

3. Sociability – Builds strong networks and relationships.

4. Adaptability – Adjusts to market changes.

5. Collaboration – Works well with stakeholders.

6. Resilience – Overcomes challenges and setbacks.

7. Proactiveness – Anticipates and solves problems.

8. Innovation – Introduces new ideas and products.

9. Risk-taking – Willing to face business uncertainties.

10. Passion – Drives motivation for long-term success.

Motivation Theories in Entrepreneurship

• Entrepreneurial motivation refers to the driving force behind business success.

1. Extrinsic Motivation – Driven by external rewards (e.g., money, gifts, incentives).

2. Intrinsic Motivation – Driven by passion and personal fulfillment.

 o Achievement Motive – Desire to succeed.

o Power Motive – Desire to influence others.

o Affiliation Motive – Desire for strong social connections.

Key Terms to Remember:

• Entrepreneurship – The process of starting a business venture.

• Entrepreneur – An individual who takes business risks to create profit.

• SMME – Small, medium, and micro-sized enterprises.

• Sole Proprietorship – A business owned by one person.

• Partnership – A business co-owned by two or more people.

• Corporation – A legally separate business entity.

• Cooperative – A member-owned business for mutual benefit.

• Technopreneurship – Entrepreneurship focused on technology-based solutions.

• Social Entrepreneurship – Business aimed at solving social issues.

• Risk-taking – The willingness to take financial or operational risks.

II. IDEA GENERATION

Definition

• Idea Generation is the creative process of developing new methods to solve problems and
improve business conditions.

• It involves brainstorming, research, discussions, and evaluating potential solutions.

• Ideas do not need to be practical at first but must be explored for feasibility.

Stages of Generating Business Ideas

1. Dreamer Stage – Ideas flow freely without fear of criticism; encourages imagination and
unconventional thinking.

2. Designer Stage – Ideas are analyzed and assessed for feasibility.

3. Detailer Stage – Potential problems are identified and addressed before implementation.

Core of Entrepreneurial Ideas

• Entrepreneurial Mind Frame – Entrepreneurs stay optimistic during crises, taking risks without
discouragement.
 • Entrepreneurial Heart Flame – Entrepreneurs have passion and dedication to fulfilling their
vision.

• Entrepreneurial Gut Game – Entrepreneurs rely on intuition and courage to pursue business
ideas.

Ways to Generate Ideas

• Imitate successful business models.

• Address existing problems with innovative solutions.

• Transform waste into valuable products (recycling initiatives).

• Listen to customers, competitors, and market trends.

• Turn hobbies into business ventures.

• Improve existing products by maximizing strengths and overcoming weaknesses.

OPPORTUNITY SEEKING, SCREENING, AND SEIZING

Definition

• Opportunity Seeking is the process of identifying potential business ideas based on market
trends and needs.

• Opportunity Screening involves evaluating and selecting the most viable business
opportunities.

• Opportunity Seizing is executing the selected opportunity with a strategic plan.

Methods for Identifying Business Opportunities

1. Environmental Changes – Observing global, political, social, and economic shifts.

o Physical Environment – Climate, natural resources, and geography.

o Social Environment – Political, economic, and technological trends.

o Industry Environment – Competitors, suppliers, customers.

2. Technological Progress – New tech innovations create business opportunities.

3. Government Initiatives – Policies, incentives, and business programs.

4. People's Interests – Market demand based on hobbies, passions, and customer feedback.

5. Personal Experiences – Work knowledge leading to unique business ideas.

Opportunity Screening: The 12 Rs

1. Relevance – Does the idea align with business goals?

 2. Resonance – Does it reflect personal values?

3. Reinforcement – Does it match interests and skills?

4. Revenues – Is there market demand and profit potential?

5. Responsiveness – Does it solve customer problems?

6. Reach – Can it expand into franchises or distributors?

7. Range – Can it offer multiple products/services?

8. Revolutionary Impact – Is it innovative and market-changing?

9. Returns – Does it provide a high return on investment?

10. Ease of Implementation – Can it be executed with minimal obstacles?

11. Resources Required – Does it require manageable resources?

12. Risk Assessment – Can risks be mitigated effectively?

Opportunity Seizing Strategies

• Learn from successful businesses and apply their strategies.

• Avoid the mistakes of failed businesses.

• Use market analysis tools to evaluate risks and opportunities.

MARKET AND COMPETITOR ANALYSIS TOOLS

PESTEL Analysis – Examines external factors affecting business.

1. Political – Government policies, taxation, trade laws.

2. Economic – Market conditions, inflation, unemployment.

3. Social – Consumer behavior, cultural trends.

4. Technological – Innovations and digital advancements.

5. Legal – Regulations, labor laws, trade restrictions.

6. Environmental – Climate concerns, sustainability.

Competitor Analysis

• Identifies direct and indirect competitors.

• Evaluates competitor strategies, pricing, and market share.

• Helps in differentiating the business.

SWOT Analysis – Internal and external business assessment.

 • Strengths – Competitive advantages.

• Weaknesses – Business limitations.

• Opportunities – Market expansion chances.

• Threats – Industry challenges and competition.

TYPES OF INNOVATION IN BUSINESS

Definition

• Innovation refers to developing new ideas, products, or methods that increase efficiency and
revenue.

Three Types of Innovation

1. Process Innovation – Improves efficiency and operations.

o Example: Self-checkout systems in supermarkets.

2. Product/Service Innovation – Enhances or creates new market offerings.

o Example: Plant-based meat alternatives (Beyond Meat, Impossible Foods).

3. Disruptive Innovation – Redefines industries with new value propositions.

o Example: Budget airlines providing low-cost flights.

RISKS IN BUSINESS INNOVATION

Definition

• Risks refer to potential obstacles that businesses face when implementing new ideas.

Types of Business Risks

1. Economic Risk – Market downturns affecting revenue.

2. Financial Risk – Poor financial management leading to debt.

3. Security and Fraud Risk – Cybersecurity threats in online transactions.

4. Compliance Risk – Failure to follow laws and regulations.

5. Human Risk – Employee mistakes or ethical misconduct.

6. Reputational Risk – Negative customer perception damaging brand image.

7. Competitive Risk – Losing market share to rivals.

INTELLECTUAL PROPERTY PROTECTION

Definition

• Intellectual Property (IP) refers to legal protections for business innovations and branding.

Types of Intellectual Property

1. Patent – Exclusive rights to an invention (e.g., Apple’s touchscreen technology).

2. Copyright – Protection for original works (e.g., books, music, films).

3. Trademark – Recognizable brand symbols, phrases, or logos (e.g., Coca-Cola logo).

Key Terms to Remember:

• Idea Generation – The process of creating new business concepts.

• Opportunity Seeking – Identifying potential markets and trends.

• Entrepreneurial Mind Frame – The ability to stay positive in risk-taking.

• PESTEL Analysis – A tool for evaluating external business factors.

• SWOT Analysis – A tool for assessing business strengths and weaknesses.

• Disruptive Innovation – A breakthrough that transforms industries.

• Patent – Legal protection for inventions.

• Copyright – Legal protection for creative works.

• Trademark – Legal protection for branding elements.

MARKETING ASPECTS OF NEW VENTURES

Definition

• Marketing refers to the process of promoting, selling, and distributing a product or service to
potential customers.

• The modern consumer has greater power due to social media, online reviews, and instant
communication with brands.

• Businesses must be transparent, customer-focused, and responsive to market demands.

III. MARKET RESEARCH AND DEVELOPMENT

Definition
 • Market Research is the process of gathering and analyzing consumer data to determine the
viability of a product or service.

• Helps businesses identify customer needs, market trends, and potential competition.

Types of Market Research

1. Primary Research – Involves direct data collection from customers.

o Quantitative Research – Uses numerical data and statistics.

▪ Customer Surveys – Conducted via online forms, polls, and feedback

questionnaires.

▪ Binary/Rating Scale Questionnaires – Uses yes/no questions or rating scales.

▪ Sampling – Uses random selection to represent a larger group.

o Qualitative Research – Explores customer motivations and behaviors.

▪ Focus Group Discussion – Gathers 6-10 individuals to discuss a topic.

▪ Individual Interviews – One-on-one discussions for detailed responses.

▪ Ethnographic Research – Observing customers in their natural environment.

▪ Case Study Research – In-depth examination of real-world cases.

▪ Open-Ended Questionnaires – Questions that require detailed answers.

2. Secondary Research – Uses existing data from other sources.

o Public Sources – Government reports, public records.

o Commercial Sources – News articles, market research studies.

o Company Websites – Competitor product information.

o Other Sources – Customer reviews, analyst reports, feedback forms.

Steps in Conducting Market Research

1. Define the Problem – Identify key questions to answer.

2. Define Buyer Persona – Create a profile of the ideal customer.

3. Prepare Questions and Conduct Research – Gather relevant data.

4. List Major Competitors – Analyze strengths and weaknesses.

5. Analyze the Results – Interpret findings for insights.

6. Develop a Research Report – Present findings to stakeholders.

7. Make Decisions – Use insights to strategize business moves.

PRODUCT AND SERVICE DEVELOPMENT

Definition

• Product and Service Development (PSD) is the process of designing, testing, and launching new
products or services based on market demand.

Types of Customer Requirements

1. Service Requirements – Intangible aspects like customer service, convenience, and reliability.

2. Output Requirements – Tangible product features like quality, performance, and durability.

Steps in the PSD Process

1. Trend Analysis & Observations – Identifying gaps and opportunities in the market.

2. Consumer & Market Research – Understanding customer needs.

3. Actionable Insights – Brainstorming ideas for improvement.

4. Concept Development & Refinement

o Ideation – Evaluating ideas.

o Prototyping – Creating test models.

o Testing – Assessing functionality and appeal.

o Refinement – Making adjustments before launch.

5. Implementation & Launch – Introducing the final product to the market.

6. Result Assessment – Gathering feedback for future improvements.

COSTING AND PRICING STRATEGIES

Definition

• Cost refers to the total expenses incurred in producing a product or service.

• Costing is the process of allocating costs to determine product pricing.

Types of Costs

1. Direct Materials – Raw materials used in production.

2. Direct Labor – Wages of employees directly involved.

3. Overhead Costs – Expenses like rent, utilities, and factory equipment.

Formulas
 • Product Cost = Direct Materials + Direct Labor + Overhead Costs

• Product Cost per Unit = Total Product Cost / Number of Units Produced

Service Costing

• Used for non-physical services like healthcare, consulting, and logistics.

• Includes fixed, semi-variable, and variable costs.

Pricing Strategies

1. Premium Pricing – High pricing to reflect exclusivity.

2. Economy Pricing – Low pricing for affordability.

3. Price Skimming – High initial price, then gradual reduction.

4. Penetration Pricing – Low starting price to attract customers.

5. Psychological Pricing – Pricing techniques like "₱99" instead of "₱100".

6. Bundle Pricing – Offering multiple products together at a discount.

7. Dynamic Pricing – Adjusting prices based on demand and competition.

MARKETING STRATEGIES & MIX

Definition

• Marketing Strategy refers to the overall plan used to attract and retain customers.

Target Market Segmentation

1. Demographic – Age, gender, income.

2. Geographic – Location-based.

3. Psychographic – Personality and interests.

4. Behavioral – Purchasing habits.

8 Ps of Marketing

1. Product – The item being sold.

2. Price – Cost strategy.

3. Place – Where the product is sold.

4. Promotion – Advertising methods.

5. People – Employees and brand representatives.

6. Physical Evidence – Proof of quality and reliability.

 7. Process – Steps in delivering the product/service.

8. Positioning – How the brand is perceived in the market.

Key Terms to Remember:

• Market Research – Gathering data to assess demand and competition.

• Product Development – Creating and refining a product.

• Costing – Determining expenses for production.

• Pricing Strategies – Methods for setting product prices.

• Target Market – A specific group of potential buyers.

• Marketing Mix – The 8 Ps used for business growth.