ENTREPRENEURSHIP

HENRY T. SY
JOHN GOKONGWEI, JR
TONY TAN CAKTIONG
LUCIO TAN
GEORGE TY
JAIME ZOBEL DE AYALA
MANNY VILLAR
The capacity and willingness
to develop, organize and
manage a business venture
along with any of its risks in
ENTREPRENEURSHIP order to make a profit. The
most obvious example of
entrepreneurship is the
starting of new businesses.
is a written description
of
your business's future,
a document that tells
what you plan to do
and how you plan to do
WHAT IS A BUSINESS PLAN? it.
CONTENTS OF THE BUSINESS PLAN
I. INTRODUCTION
A. The Business Concept and the Business Model
B. The Business Goals: Vision, Mission, Objectives, and performance Targets
C. The Business Offering and Justification
II. EXECUTIVE SUMMARY
III. THE BUSINESS PROPONENTS: Organizers with their Capabilities and Contributions
IV. THE TARGET CUSTOMERS AND THE MAIN VALUE PROPOSITION TO THE
CUSTOMER
V. THE MARKET, MARKET JUSTIFICATION BASED ON THE INDUSTRY DYNAMICS AND
THE MACRO ENVIRONMENTAL FACTORS AFFECTING THE OPPORTUNITIES AND
THREATS IN THE MARKET.
VI. THE PRODUCT AND SERVICE OFFERINGS
VII. THE ENTERPRISE STRATEGY AND ENTERPRISE DELIVERY
SYSTEMS: Business competitiveness
VIII. THE FINANCIAL FORECASTS AND EXPECTED RETURNS,
RISKS, AND CONTINGENCIES
IX. ENVIRONMENTAL AND REGULATORY COMPLIANCE
X. THE CAPITAL STRUCTURE AND FINANCIAL OFFERING:
Returns and Benefits to Investors, Financers, and Business
Partners.
OPPORTUNITY SEEKING
Entrepreneurs are innovative opportunity seekers.
They have endless curiosity to discover new or
different ideas and see whether these will work in
the marketplace.
Keep your eyes open for new business.
ENTREPRENEURIAL MIND FRAME
Allows the entrepreneurs to see things in a very
positive and optimistic light in the midst of crisis or
difficult situation.
ENTREPRENEURIAL HEART FRAME
Surging passion
Driven passion, they are drawn to find fulfillment in the
act and process of discovery.
Is also about Emotional Intelligence –entrepreneurs
efforts to nurture relationship with customers, employees
and suppliers.
ENTREPRENEURIAL GUT GAME
Intuition - The ability of the entrepreneur to sense
without using the five senses.
It also connotes courage “ lakas ng loob”(strong
intestinal fortitude).
MANY SOURCES OF OPPORTUNITIES
1. Macro Environmental Sources
Refers to the ‘big or macro forces’ that affect the area, the
industry, and the market, which the enterprise belongs to.
2. Industry Sources of Opportunities
Next biggest sources of opportunities
3. Market Sources Opportunities
Able to measure the actual demand and supply as well as
the potential demand and supply of the industry
4. Other Sources Opportunities
MACRO
ENVIRONMENTAL
SOURCES
The major
external and
uncontrollable
factors that
influence an
organization's
decision making,
and affect its
performance and
strategies.
1. MACRO ENVIRONMENTAL SOURCES
1. Socio- Cultural Environment-includes- the demographics and cultural
dimensions that govern the relevant entrepreneurial endeavor. The structure,
social status and dynamics of the population at large, as well as the people
beliefs, tastes, customs, and traditions.
2. Political Environment- defines the government systems of the country or the
local area of business. It includes all the laws, rules and regulations that govern
business practices.
3. Economic Environment- defines the supply and demand forces mainly
drive the macro economic environment. Factor that drives the interest and
foreign exchange rates to fluctuate with the movement of market forces.
4. Ecological Environment- includes all natural resources and the ecosystem,
habitat of men, animals, plants and minerals.
5. Technological Environment – new scientific and technological discoveries.
GROUP ACTIVITY:
1. Shows/Create examples opportunities and
threats that are present within the macro
environment of a fast-growing food chain
offering chicken and other Filipino favorites.
2. INDUSTRY
SOURCES OF
OPPORTUNITIES
The next
biggest
sources of
opportunities
after the
macro
environment.
An industry is a group
of companies that are
related based on their
primary business activiti
es. It is according to
product types or
according to the functions
of the product or service.
Industries includes the
computer Industry
(Microsoft vs Apple),
INDUSTRY IS? Beer Industry ( San
Miguel vs Beer na beer).
2. INDUSTRY SOURCES OF OPPORTUNITIES
Participants in an Industry Include:
1. Rivals or Competitors in a particular type of
business
2. Suppliers of Input
3. Consumers Market Segments being served by
rivals or competitors.
4. Substitute products or Services
MARKET SEGMENTATION

is the activity of dividing a

broad consumer or business market,
normally consisting of existing and
potential customers, into sub-groups
of consumers (known as segments)
based on some type of shared
characteristics.
 can be
discovered from
the increased or
decreased
demand as well as
higher or lower
supply.
3. MARKET SOURCES OF OPPORTUNITIES
refers to the
specific target
market segment of
a particular
enterprise. These
are the target
customers that
represents the
immediate customers
of an enterprise.
4. MICROMARKET
refer to the
tastes of
particular groups
of people. The
consumer’s age,
culture, and status
affect their
preferences.
5. CONSUMER
PREFERENCES
6. OTHER SOURCES OPPORTUNITIES
1. Customer preferences change over time.
2. Peoples tastes in clothes, music, shies, entertainment, dance, sports,
hobbies, and even careers have evolved over the years.
3. The longer the customer wants to use the product, the greater the
chances of creating lasting loyalty.
4. New inventions, new systems and work processes, new insights about
human psyche, new applications for old knowledge, new revelations
about how the physical world works.
5. Unexpected occurrences in both the external and internal
environment of the enterprise indicate that significant changes are
happening and opportunities are sprouting.
REFLECTIONS/INDIVIDUAL ACTIVITY
1. What do you think are the opportunities and treats
that you see from the macro environment, industry,
market, micromarket, and consumer perspective of the
business you intend to pursue or already are pursuing?
TRENDS OPPORTUNITIES THREATS

Macro Environment
Industry
Market
Micromarket
Consumer
OPPORTUNITY SCREENING
Opportunity Screening and
Analysis. Developing a sufficiently
detailed understanding of which
markets offer the
greatest opportunity — and
whether that opportunity is
sustainable — can be a complex
task. ... Additionally, shifting trends
which open — or close — the
potential market opportunity must
be fully assessed.
THE 12RS OF OPPORTUNITY SCREENING
1. RELEVANCE
2. RESONANCE
3. REINFORCEMENT OF ENTREPRENEURSHIP INTEREST
4. REVENUES
5. RESPONSIVENESS
6. REACH
7. RANGE
8. REVOLUTIONARY IMPACT
9. RETURNDS
10. RELATIVE EASE OF IMPLEMENTATION
11. RESOURCES REQUIRED
12. RISKS
1. RELEVANCE to vision , mission, and objectives of the entrepreneur. The
opportunity must aligned with what you have as your personal vision, mission,
and objective for the enterprise you want to set up.
2. RESONANCE to values. The opportunity must match the values and
desired virtues that you have or wish to impart.
3. REINFORCEMENT OF ENTREPRENEURIAL INTEREST. How does the
opportunity resonate with the entrepreneur’s personal interest, talents and
skills?
4. REVENUES determine the sales potential of the products or services you
want to offer in the market.
5. RESPONSIVENESS to customer needs and wants. Pursue addresses the
unfulfilled or undeserved needs and wants of customers, then you have a
better chance of succeeding.
6. REACH. Opportunities that have good chances of expanding through
branches, distributorships, dealerships, or franchise outlets in order to attain
rapid growth or better opportunities.
7. RANGE. The opportunity can potentially lead to a wide range of possible
product or service offerings, thus, tapping many market segments of the
industry.
8. REVOLUTIONARY IMPACT.
9. RETURNS. It is the fact that products with low cost of production and
operations but are sold at a higher prices will definitely yield the highest
returns on investments.
10. RELATIVE EASE OF IMPLEMENTATION. Will the opportunity be
relatively easy to implement for the entrepreneur or will there be a lot of
obstacles and competency gaps to overcome?
11. RESOURCES REQUIRED. Opportunities requiring fewer resources from
the entrepreneurs may be more favored than those requiring more resources.
12. RISKS.
THE PRE-FEASIBILITY STUDY
To ascertain the viability of the opportunity. The idea is to
focus on a few key items that could make or break the
business concept.
The ff: factors that are contained in a pre-feasibility study:
1. Market potential and prospects
2. Availability and appropriateness of technology
3. Project investment and detailed cost estimates
4. Financial forecast and determination of financial
feasibility
1. MARKET POTENTIAL AND PROSPECTS
Is based on the estimated number of possible customers who might avail of the
product or service.
1. Segmenting the Market
Look into other specific classifications that are relevant to the market you are
targeting. Using a set of demographics (e.g. gender, age, place of residence,
income class, etc.)
2. Assessing Competition.
Market potential is also affected by the number of establishments supplying
and serving your target customers.
3. Estimating Market Share and Sales
Assess the potential market share he or she can attract.
Define the market coverage or reach he/she wants to serve. The area would
define the total population being targeted.
2. TECHNOLOGY ASSESSMENT AND VIABILITY
1. Quantities Demanded. This would determine the needed capacity of
operations.
2. Quality Specifications Demanded. This would dictate the following:
Quality of input or raw materials
Quality assurance process in transforming input to output
Quality output that meet the operations, standards set; and quality outcomes
for the customers.
3. Delivery Expectations. Knowing how much, how frequent , and when to
deliver to customers.
4. Price Expectations. The selling price of the product or service would be
evaluated by the customers according to the value added should be matched
against competitors.
3. PROJECT INVESTMENT AND DETAILED COST
ESTIMATES
1. Pre-Operating Costs. These are the cost related to the
preparation for the launch of the business.
2. Production/Service Facilities Investment. This refers to the
long-term investment for the actual business establishment,
including investment in land, buildings, machinery, equipment,
computers, software, furniture's, vehicles, etc.
3. Working Capital Investment. This includes the investment
needed to operationalize the business, composed of cash,
accounts receivable, and inventories.
FINANCIAL FORECAST AND DETERMINATION OF
FINANCIAL FEASIBILITY
1. Income Statement. Financial Statement that measures an enterprise performance in
terms of revenue and expenses over a certain period.
REVENUE-EXPENSES = INCOME oR PROFIT/LOSS
2. Balance Sheet. This statement includes the amounts of the company’s total
assets, liabilities and owner’s equity which in totality provides the financial
position of the company on a specific date.
3. Financial Ratios and Measurements