ENTREPRENEURSHIP
business and where it will be headed many years
Definition of an entrepreneur
From an economist’s point of view:
• It is someone who brings resources, labor,
materials and other assets into combinations
that make their value greater than before
• It is also someone who introduces changes,
innovations and a new order.
From a psychologist’s point of view
• A person who is typically driven by certain forces
such as the need to obtain or attain something,
to experiment, to accomplish or perhaps to
escape the authority of others.
From a management perspective
• It is someone who identifies opportunities,
plans, mobilizes resources, manages and
assumes the risks of a business to have a positive
impact on society.
PERSONAL CHARACTERISTICS ATTRIBUTED
ENTREPRENEURS
• Confidence
• Flexibility
• Need to achieve
• Responsibility
• Commitment
• Creativity
• Persevering
• Goal-oriented
• Realistic
• Sincere
• Hardworking
• Visionary
• Disciplined
• Feedback seeking
• Moderate risk-taker
HOW ENTREPRENEURS THINK
• Actuate self-assessment and choose course of
action
• Generate multiple decision models
• Learn from failure
Ways to Start a New Venture
• Start-up – a company which is recently formed,
where the founder establishes a completely new
business from scratch
• Buying an existing business - acquiring either the
shares of an existing company or all of the assets
of an existing enterprise.
• Franchising – when the “owner of the company
that already has a successful product or service,
licenses its trademark, trade name and methods
of doing business to others in exchange for an
initial franchise fee and royalty payments
Important Factors to Consider Before an Entrepreneur
Can Actually Begin an Enterprise
 Focus and Direction – objective grasp of the
from the start of operation.
 Sources and Capital – can be from personal
funds, family and friends, retirement account,
banks/financial institutions, government loan
and/or stock market
 Good Network – like associations and
professional groups, childhood friends, family
members, former classmates can be drivers to
build self-confidence and direction, providers of
information that are not readily accessible to
others, suppliers of raw materials as well as
mentors and coaches.
 Legal Requirements – know the laws and
regulations that govern the type of business that
will be opened to avoid major problems
 Degree of Risk – like limited market, stiff
competition, high cost of financing the business
and few supply of needed labor
 Research and Development – the presence of
TO new technology, science and knowledge transfer
from universities and public research centers to
new and growing businesses, support for the
creation of new-technology based ventures are
good indicators to start a business in the area
 Personal competencies – like creativity,
opportunity seeking, self-confidence,
persistence, commitment, risk-taking and
technical background as well as related
experiences needed to run a business
 Availability of Resources – pertaining to raw
materials, human resources and machineries
and equipment
Entrepreneurial Opportunity
 favorable set of conditions that will enable the
entrepreneurs to create new products or
services by combining resources that will result
not only to a profit but for the common good of
the society and the environment
3 Essential Qualities of Opportunities
 Attractive
 Durable
 Timely
Potential sources of opportunity
 The Unexpected – Opportunities can be found
when situations and events are unanticipated.
 The Incongruous – incongruous situations
happen when there are inconsistencies in the
way they appear.
 The process need – entrepreneurial
opportunities could also surface throughout the
process of discovery such as the process of
research and development done by the
researchers and technicians of a product or
service.
 Industry and market structures – changes in
technology, social value and customers’ tastes
can change the structure of an industry and
market.
  Demographics – changes in demographics will
influence industries and markets, upon their
target market and market segmentation.
 Change – perception is one’s view of reality.
Changes in perception get to the heart of
people’s psychographic profiles if what their
values are, what they believe in, and what they
care about.
 New knowledge – new knowledge can be a
source of opportunities for entrepreneurs.
Philippines Potential Sources of Opportunities
 Positive attitude of Filipino workers
 Low labor cost
 Literacy of the workforce
 Large market potential
 Abundance of natural resources
 Availability of competent middle management
and technical talents
CLASSIFICATION OF ENTERPRISE ACCORDING TO SIZE
 Micro enterprise – asset size not exceeding
P50,000, a home based enterprise, operating in
makeshift or temporary quarters, the owner
heads the enterprise and employs from one and
not more than 10 people.
 Cottage industry – asset of P250, 000 to
P500,000, homebased, often managed and
operated by members of family.
 Small enterprise – has an asset of P500, 000 to
P2.5million, owned by an individual or grouped
and has enough resources to continue operating,
employs 10 to 20 people.
 Medium enterprise – an asset of 5 to 20 million,
employs 100 or more, owned by a single
individual, business partners, or a corporation.
 Large enterprise – an asset of 20 million or more,
often owned and managed by a corporation,
employs 100 or more workers, its board of
directors is responsible for its governance thru
its chief operating officer.
capital required and accepting a fair share of
risks and benefits of the business.
Marketing Mix
• defined as the "set of marketing tools that the
firm uses to pursue its marketing objectives in
the target”.
7P’s
1. Product. The Product should fit the task
consumers want it for, it should work and it should be
what the consumers are expecting to get.
2. Pricing. The Product should always be seen as
representing good value for money.
3. Place. The product should be available from
where your target consumer finds it easiest to shop.
4. Promotion. Advertising, PR, Sales Promotion,
Personal Selling and, in more recent times, Social Media
are all key communication tools for an organization.
5. Process. The delivery of your service is usually
done with the customer present so how the service is
delivered is once again part of what the consumer is
paying for.
6. People. All companies are reliant on the people
who run them from front line Sales staff to the Managing
Director.
7. Physical Evidence. Almost all services include
some physical elements even if the bulk of what the
consumer is paying for is intangible

FORMS OF BUSINESSES BASED ON OWNERSHIP

 Single Proprietorship – is owned and
managed by a single person. They register
with the Department of Trade and Industry
(DTI).
 Partnership – is an association of two or
more persons who acts as co-owners of a
business. Each partner contributes money,
property, or service to the business. They
register with the Securities and Exchange
Commission.
 Corporation – is an artificial being created by
operation of law, having the right of
succession and the powers attributes and
properties expressly authorized by incident
to its existence. They register to the
Securities and Exchange Commission.
 Cooperative – is a duly registered association
of persons, with a common bond of interest
who have voluntarily joined together to
achieve a lawful common social or economic
end making equitable contribution to the