ENTREPRENEURSHIP

MODULE 2-
RECOGNIZING THE POTENTIAL MARKET
This module will discuss the proper and efficient ways of starting a business
THE ENTREPRENEURIAL PROCESS- is a step by step procedure in
establishing any kind of business that an entrepreneur has to undergo.
4 ASPECTS :
1. OPPORTUNITY SPOTTING & ASSESSMENT-Most difficult.
Entrepreneurs at this point take note of interesting trends in their
environment.
- Customers are reliable sources of opportunity information because
market originates from them.
2. DEVELOPING A BUSINESS PLAN- a business plan is a comprehensive
2. DEVELOPING A BUSINESS PLAN- a business plan is a comprehensive
paper that details the marketing,operational,human resource, financial,
strategic direction and tactics of the business.
3. DETERMINING THE CAPITAL NEEDED-It is mandatory to calculate the
resources needed to establish the business and compare this against
the entrepreneur’s current resources.
4. RUNNING THE BUSINESS- this is the part where the entrepreneur
should use the resources allocated for the new venture.
 SCANNING THE MARKETING ENVIRONMENT
-is the starting point of any new venture that
involves the understanding and knowing the
intricacies of the macroenvironment,
microenvironment & internal environment.
- In scanning the general environment,an
entrepreneur can recognize various
opportunities
 SCANNING THE MARKETING ENVIRONMENT
3S OPPORTUNITY:
-Opportunity is an entrepreneur’s business idea
that can potentially become a great product or
service
S1- SEEKING THE OPPORTUNITY
-is the first step and the most difficult process
S1- SEEKING THE OPPORTUNITY
SOURCES:
1. MACROENVIRONMENTAL SOURCES
a. STEEPLED-
Socioculturl,technological,economic,environment
al,political,legal,ethical and demographic factors.
This represents the general environment where
the entrepreneur can identify business
opportunities.
b. INDUSTRY- is the source of current trend where
the business will belong to.
c. NEW DISCOVERY OR KNOWLEDGE-new trends
that can be core business model of a new
venture.
d. FUTURISTIC OPPORTUNITIES- projected new
opportunities that can possibly affect the
business while it is running.
2. MICROMARKET
a. Consumer preferences,interests and
perception-the current needs and wants of
potential customers should be discovered
right away.
b. COMPETITORS- recognizing & understanding
potential competitors.
c. UNEXPECTED OPPORTUNITIES FROM
CUSTOMERS
d. TALENTS,HOBBIES,SKILLS AND EXPERTISE-
e. IRRITANTS IN THE MARKETPLACE SUCH AS
DETERRENTS,PROBLEMS,COMPLAINTS AND
DELAYS
f. LOCATION
STEEPLED ANALYSIS
1. SOCIOCULTURAL FACTORS
Locality’s traditions,customs,beliefs,norms &
perceptions. examples:
 Education level
Health consciousness
Attitude toward imported goods and services
STEEPLED ANALYSIS
2. TECHNOLOGICAL FACTORS-innovations of an
existing technology
Basic infrastructure level
Spending on research and development
Communication infrastructure
STEEPLED ANALYSIS
3. ECONOMIC FACTORS-which includes
income,expenses,resources that can influence the
cost of doing business.
Growth rates
Inflation rates
Unemployment trends
Price fluctuations
STEEPLED ANALYSIS
• 4. ENVIRONMENTAL & ECOLOGICAL FACTORS
• Weather
• Climate change
• Laws regulating environment pollution
• Air and water pollution
STEEPLED ANALYSIS
5. POLITICAL FACTORS-mostly induced by
government policies & procedures
• Corruption level
• Tax policy
• Rule of law
• Government stability
STEEPLED ANALYSIS
6. LEGAL FACTORS- government laws and
regulations that restrict or allow the business
activities.
Copyright,patent,IP
Consumer protection
Employment law
Data protection law
Anti trust law
STEEPLED ANALYSIS
7. ETHICAL FACTORS
-ethical advertising & sales practices
-accepted accounting,marketing & management
standards
-attitude towards counterfeiting & breaking
patents
STEEPLED ANALYSIS
8. DEMOGRAPHIC FACTORS- characteristics of
people in the target market
-population growth
-gender
-social classes
Family size & structures