ENTREPRENUERSHIP

Entrepreneurship (Lessons)
3RD QUARTER –LESSONS
(STEM 12-PERSEUS) | QUARTER 3 – SEM 2 2024

KEY COMPONENTS AND RELEVANCE OF QUALITIES OF AN ENTREPRENEUR

ENTREPRENEURSHIP 1) HAVE INITIATIVE - does things before being asked
 ENTREPRENEURSHIP 2) PROACTIVE - identifies and utilizes opportunities
o The concept of developing and managing a 3) PERSEVERANCE -works against all odds to
business venture in order to gain profit overcome obstacles
4) PROBLEM-SOLVER -introduces innovative
IMPORTANCE OF ENTREPRENEURSHIP solutions to obstacles
 ECONOMIC GROWTH 5) PERSUASION - convinces customers an financiers
o The success of the products and services created to patronize his business
and sold by entrepreneurs’ cascades to other 6) SELF-CONFIDENCE -having a firm belief in your
businesses and markets. own capabilities and your chances of success.
7) SELF-CRITICAL -learns from his mistakes and from
 WEALTH GENERATION experiences of others
o Entrepreneurs frequently target new markets and 8) A PLANNER -collects information, prepares a plan,
tap audiences outside the focus of established and monitors performance
firms. This creates new sources of revenue and 9) CREATIVITY -the ability to come up with clever,
profits. workable solutions
10) COMMUNICATION SKILLS - the ability to express
 SOCIAL CHANGE yourself and to understand others so that ideas can
o The innovative goods and services entrepreneurs be shared
offer improve outdated processes and 11) RELATION SKILLS -the ability to get along with
technologies. others, to inspire cooperation, confidence and loyalty

 COMMUNITY DEVELOPMENT RECOGNIZING POTENTIAL MARKET

o Entrepreneurs foster a sense of community among SOURCES OF ENTREPRENEURIAL
people with common goals and interests, whether OPPORTUNITIES
in a single neighborhood or across continents. a) CHANGES IN THE ENVIRONMENT - External
KINDS OF ENTERPRISES environment refers to the physical environment,
a. MICRO ENTERPRISES societal environment, and industry environment
o Have no more than 1-9 employees with an where the business operates
asset of not more than 3 million pesos  Physical Environment -Climate, Wildlife,
Natural Resources
b. SMALL ENTERPRISES  Societal Environment -Political Forces,
o Have 10-99 employees with an asset of 3-15 Economic Forces, Sociocoltural Forces,
million pesos Technological Forces
 Industry Environment -Competitors,
c. MEDIUM ENTERPRISES Customers, Creditors, Suppliers, Government
o Have 100-199 employees with an asset of 15- Employees
100 million pesos
b) TECHNOLOGICAL DISCOVERY AND
MSME IN THE PHILIPPINES ADVANCEMENT -A person with entrepreneurial
o Is defined as any business activity or enterprise interest sees possibility of business opportunities in
engaged in industry, agri-business and/or services any new discovery or because of the use of latest
that has: technology.
 An asset (less land) of up to PHP 100 Million
 An employment size with less than 200 c) GOVERNMENTS THRUST PROGRAMS. AND
employees. POLICIES -The government can make changes in
fiscal policy which leads to changes in taxes, trade,
a) MICRO (below 3 Million) - 1-9 employees subsidies, regulations, interest rates, licensing and
b) SMALL (3-15 Million) - 10-99 employees more.
c) MEDIUM (15-100 Million) 100-199 employees
d) LARGE (above 100 Million) - 200 above employees d) PEOPLE'S INTERESTS -The interest, hobbies, and
preferences of people are rich sources of
entrepreneurial ideas Successful entrepreneurs are
the ones that continuously try to boost their
relevance by connecting with the latest trends
ENTREPRENUERSHIP
Entrepreneurship (Lessons)
3RD QUARTER –LESSONS
(STEM 12-PERSEUS) | QUARTER 3 – SEM 2 2024

o PSYCHOLOGICAL SEGMENTATION - Needs

e) WORK EXPERIENCE - The expertise and skills and Wants, Attitudes, Personality, Social Class,
developed by a person who has worked in a Lifestyle
particular field may lead to the opening of related
business enterprise. MARKET SIZE
o Market size is like a size of arena where the
5 FORCES OF COMPETITION entrepreneurs will play their business. It is the
1. Buyers approximate number of sellers and buyers in a
2. New Entrants particular market.
3. Existing Firms
4. Suppliers
4 M’S OF PRODUCTION
5. Substitute
1. MANPOWER
o Talks about human labor force involved in the
MARKET VALUE PROPOSITION & UNIQUE manufacture of products. It is measured as the
SELLING PROPOSITION most serious and main factor of production.
 VALUE PROPOSITION (VP)
Criteria to be considered in choosing manpower:
o It is a business or marketing statement that
 Educational qualifications
summarizes why a consumer should buy a  Work experience
company's product or use its service.  Status of employment
o It is used to convince a customer to purchase a  Number of workers required
particular product or service  Skills and expertise required for the job

 UNIQUE SELLING PROPOSITION (SP)

o A statement you choose to embody your 2. MATERIALS
products so they can be easily remembered o This refers to the raw components necessary in the
 "Basta Radyo, Bombo" production of a product. Materials mainly form part
 "Hari ng Padala" LBC of the finished product. Just in case the resources
 "Ang burger ng Bayan" Angel’s Burger are below standard, the finished product will
 "Kapuso ng bawat Pilipino." GMA unsatisfactory as well.
 "Pambansang Litsong Manok" Andok’s
Criteria to be considered in choosing materials:
 "Nakasisiguro gamot ay laging bago." Mercury
 Cost
 "Ito ang tama" Red horse Beer
 Quality
 "We've got it all for you." SM
 Availability
 "Tamis Anghang" UFC Banana Ketchup
 Credibility of suppliers
 "Abot mo ang Mundo" Globe Telecom
 Waste that the raw materials may produce.
 "Kailangan pa bang i-memoriza yan?" Love
Radio
 "It's time every Juan flies." Cebu pacific Air 3. MACHINE
 "Hindi umaatras ang may tunay na lakas." o Is about manufacturing equipment used in the
Cobra production of goods or delivery of services.

Criteria to be considered in choosing machines:

MARKET TARGETING  Types of products to be produced
o It is a specific group of potential customers that a  Production system to be adopted
business aims to reach with its products or  Cost of the equipment
services.  Capacity and efficiency of the equipment
o It allows you to focus your marketing money and  Availability of spare parts
brand message on a specific market that is more  Skills required in running the equipment.
likely to buy from you

MARKET SEGMENTS METHOD

o GEOGRAPHIC SEGMENTATION -Climate, o It is the process or way of transforming raw
Dominant ethnic group, Culture, Density materials to finished products. The resources
o DEMOGRAPHIC SEGMENTATION -Gender, undergo various stages before it is finalized and
Age, Income, Occupation, Education, Religion, become set for delivery to the target buyers.
Ethnic Group, Family Size
ENTREPRENUERSHIP
Entrepreneurship (Lessons)
3RD QUARTER –LESSONS
(STEM 12-PERSEUS) | QUARTER 3 – SEM 2 2024

Criteria to be considered in choosing production is to attract people to buy your product over
method: others.
 Product to produce  Special Offers
 Mode of production  Advertising
 Manufacturing equipment to use  Personal selling
 Required skills to do the work.  Sales promotion
 Public relations
 Direct Marketing
The product is the physical output of the whole
production process.

MARKET MIX
 PRODUCT
o Product refers to any goods or services that are
produced to meet the consumers' wants, tastes TYPES OF ADVERTISING
and preferences. 1) Broadcast Media (Television, Radio)
 Design 2) Print Media (Newspaper, Magazine)
 Quality 3) Support Media (Bus Benches, Directories)
 Features 4) Direct Marketing (Direct Mail, Cold Calling,
 Technology Email Marketing)
 Value 5) Product Placement
 Services 6) Social Media Advertising
 Warranties
 Returns

 PRICE
o The value of money in exchange for a product or
service. This is the amount or value that a
customer gives up to enjoy the benefits of having
or using a product or service.
 List price
 Discount
 Allowances
 Payment period
 Payment methods (degree of
convenience)
 Credit terms

 PLACE / DISTRIBUTION
o The location where the buyer and seller exchange
goods or services. It is also called as the
distribution channel.
 Retail/Wholesale
 Channels
 Coverage
 Locations
 Inventory
 Transport

 PROMOTION
o The complete set of activities, which communicate
the product, brand or service to the user. The idea