intro to entreprenuership

1. UNIT I: DEVELOPING A
BUSINESS PLAN
Module 1: Overview of Entrepreneurship

2. Learning Outcomes:
At the end of this module the learners can:
Discuss the relevance of entrepreneurshipin
general, including its economic importance.
Define who is anentrepreneur.
Explain the key concepts of common and core
competencies in entrepreneurship.
Delineate clearly between entrepreneurshipand
employment.
Explore opportunities for entrepreneurship as a
career.

4. What is Entrepreneurship?
Entrepreneurship
It is a proactive process of developing a
business venture to make a profit.
It involves seeking opportunities for
market, establishing and operating a
business out of the opportunity, and
assessing its risks and rewards through
close monitoring of the operations.

7. Here are the societal and economic
benefits of entrepreneurship.
Entrepreneurship produces more jobs that
equate to an increase in national income.
Entrepreneurship amplifies economic
activities of different sectors of society.
Entrepreneurship introduces new and
innovative products and services.

8. Entrepreneurship improves people’s living
standards.
Entrepreneurship disperses the economic
power and creates equality.
Entrepreneurship controls the local wealth
and balances regional development.
Entrepreneurship reduces social conflicts
and political unrest.
Entrepreneurship elicits economic
independence and capital formation.

9. Who is an Entrepreneur?
The word “entrepreneur” has a French
origin and was coined from the words
entre, which means “between”, and
prendre, which means “to take”.

11. Who is an Entrepreneur?
Entrepreneur
A unique individual who has the innate
ability and extraordinary dedication to
establish and manage a business,
acknowledging all the risks and reaping
its rewards.
It entails a holistic business talent to be
considered one, ranging from product
and marketing expertise to operations
agility, and to financial proficiency.

14. Five levels of entrepreneurial
development – Action Coach
The self-employed
The manager
The leader
The investor
The true entrepreneur

17. Level 0 – The Employee
Almost everyone starts out here. However, for most people, the
time they spend as an employee is wasted. Most people play
the “employee” game by continually working harder, longer
hours, and getting more and more specialized. They strive to
learn more and more about their jobs, and they get better and
better at their work.
Very often they move from one company to another or from
one position to another. While they may be getting pay raises,
they usually continue to spend more than they earn throughout
the entire period.
People in this position also miss the entire point behind being
an employee: to learn. Get a job where your boss is a great
mentor so that you can build knowledge (while building capital
that you can use to invest in your own business).

18. Level 1 – The Self-Employed
Those who want a greater sense of freedom, along
with more responsibility and control over their lives,
typically make the jump from employee to self-
employed. However, many people at this level only
end up making a job for themselves. In addition,
they typically don’t trust anyone else to get the job
done, so they end up being trapped by the work that
they’ve created for themselves. The only real
difference now is that they have the headaches of
being both an employee and an employer.

19. Level 2 – The Manager
When a business grows, the owner typically needs to
hire some help. This is the stage when tasks can be
delegated to others. However, the mistake that most
people make at this level is hiring the wrong people
or not providing adequate training for the people
that they hire. As a result, they end up spending
their time putting out fires created by their
employees (while still trying to manage customers
and the business and still doing the work). Many
people at this stage feel that they are working hard
and getting nowhere.

20. Level 3 – The Owner/Leader
The next step in the journey is becoming the owner and leader
of the business. Until now, most people in business have only
been glorified employees.
Entrepreneurs get to this level by hiring people they trust to
manage the business for them so that they can instead focus
on growing the business and maximizing profits. Being a strong
leader is a critical component of this level because the leader
needs to inspire the team and to define the vision and direction
of the business. At this stage, they spend more time working
ON the business rather than IN the business.
At this stage, the income from the business becomes passive
income because the owner does not need to do much for the
business to run.

21. Level 4 – Investor
When a business can run profitably on its
own, then the owner can become an
investor. As an investor, a business owner
can make more money selling businesses
rather than running them. They achieve this
by buying businesses, building them up, and
then selling them to other people. This is the
stage where a business owner can start to
accumulate wealth.

22. Level 5 – The Entrepreneur
This is the level where true capitalists
operate. At this level, entrepreneurs make
money by raising capital and they use other
people’s money to build paper assets (like
stocks, shares, franchises, licenses, and
royalties). Think of it this way: True
entrepreneurs use other people’s money to
make money. Being at this level is the
ultimate goal of every business owner.

23. The world of entrepreneurship these days has
already evolved, and new terms are coined to suit
an entrepreneurs’ field of expertise. Here are some:
Technopreneur
An entrepreneur who puts technology at thecore
of his or her business model.
Social entrepreneur
One who takes advantage of the country’s social
problems and turn them to profitable institutions
with the intention of helping the disadvantaged
community rather than making a profit.

26. Intrapreneur
An entrepreneur in a large company or
corporation who is tasked to think, establish, and
run a new big idea or project.
Intrapreneurs are usually the product managers
or the business development managers of a
company.
Extrapreneur
An entrepreneur who hops from one companyto
another to act as the innovation champion,
providing creative and efficient solutions

29. The Role of Entrepreneurs in the
Society
They innovate
They nurture healthy competition
They allow money to circulate

30. Common and Core Competencies in
Entrepreneurship
Proactive
Agents ofchange
Risktakers
Have a sharp eye for opportunities
Sociable
Networkers
Decisive
Balanced
Innovative

31. Proactive- Entrepreneurs are reactive rather than passive.
They address issues, problems and challenges before they
come rather than when they already happened. They ensure
proper research is done.
Agents of Change - Entrepreneurs are innovation
champions. They see opportunities in hopeless and complex
situations.
Risk takers- Entrepreneurs will not be successful if they do
not take risks. By taking risk, entrepreneurs do not just grab
opportunities left and right.
Have a sharp eye for opportunities- Entrepreneurs have a
talent for recognizing an opportunity even by using the macro
level data only.

32. Sociable- Soft skills are one of the most important
competencies of entrepreneurs as these establish the
relationship with the most important assets of the company.
Networkers- They know the key people to connect with. It can
be an intimidating task, for it takes a lot of guts to pull it off.
Decisive- Entrepreneurs always have a decision about their
business. They do not settle for gray areas or unclear solutions.
They do not have an issue unsolved without a disposition.
Balanced- The minds of an entrepreneurs should have a
balance between the analytical and creative side. Entrepreneurs
always have "Eureka" moments and enjoy them.
Innovative-The minds of entrepreneurs are rich with big ideas
that can add value to their existing business or could become a
game changer in the industry or business where they belong.

33. Core Traits of Entrepreneurs
Leaders
Communicators
Specialists
Problem solvers

34. Leader- Successful entrepreneurs always have a heart of a
leader. To be successful leaders, they must be a source of
inspiration for their employees.
Communicators- Entrepreneurs know how to use all forms of
communication to effectively share ideas and address certain
concerns with their customers or employees.
Specialists- Entrepreneurs are experts in their chosen business. They
are tactical and very keen with details.
Problem Solvers- Entrepreneurs possess critical thinking skills
and look at problems as challenges and puzzles that they need
to solve.

35. Entrepreneurship or Employment
Important Career
Factors
Entrepreneur Employee
1. Income  Income generated
passively even when
the entrepreneur is
resting
 Opportunity income
unlimited, depending
on the success of the
business
 Income only earned
when the business is
successful
 Income generated actively
(i.e., on working hours
only); no work = no pay
 Income usually fixed per
month and increases every
year depending on the
employee performance
 Income earned whether
the business is successful
or unsuccessful
Pros and cons of entrepreneurship vs. employment

36. Important Career
Factors
Entrepreneur Employee
2. Hiring and Firing,
Organizational Setup, and
Major Key ResultAreas
 Provides jobs; is the owner
of the business and conducts
the talent selection
 Fully responsible for
serving customers, making
the business
profitable/sustainable, and
providing employee
satisfaction
 Has the power to disengage
non-performing employees
applying the due process
policy of disengaging
personnel
 Can venture into expansion
of business such as
franchising and buying
other similar businesses
 Seeks for a job; is the one
applying for and is
interviewed by the
company’s hiring officers
 Has the goal of satisfying
only the employer or the
direct supervisor
 Fully dependent on the
employer’s performance; is
at risk of losing his or her
job if the company does not
perform well; may find it
difficult to just leave their
below par employer if this is
their only source of income
 Can only work for the
current employer exclusively

37. Important Career
Factors
Entrepreneur Employee
3. Daily Tasks  Performs all necessary
variable tasks to
establish and manage a
startup business, which
usually takes most of the
entrepreneur’s time;
spend more hours on
work than a regular
employee and
sometimes gets no sleep
 Prepares policies,
procedures, and
memoranda for the
business
 Has routine tasks
and works on
regular or normal
hours
 Follows policies,
procedures, and
memoranda from
the employer

38. Important Career
Factors
Entrepreneur Employee
4. Leisure Time
and Vacations and can take unlimited
number of vacation
days (applicable only
if the business has
stabilized already)
 Has a flexible schedule  Has limited number of
vacation days imposed
by the employer
5. Taxation  Taxed on the net
income; can claim
taxable income
deductions for
allowable expenses
incurred by the
business
 Taxed on the gross
income; cannot use
expenses incurred
related to the job such
as food and
transportation expenses
to claim for deductions
from taxable income

39. Important Career
Factors
Entrepreneur Employee
6. Comfort Level at
Work
 Is comfortable in
doing multiple and
challenging tasks
and takes
accountability with
the risks and profits
of the business;
does not want to be
confined in a box;
thinks outside the
box or sometimes
thinks there is no
box
 May be comfortable
with routines and
minimal risks; may
also be comfortable
in working for the
company itself

40. Careers in Entrepreneurship
List of most common small businesses in the
Philippines:
Sari – sari store
Rice retailing
Food cart business
Printing business
Buy-and-sell business
Street food business

41. Careers in Entrepreneurship
Flea market business or tiangge
Online selling business
Cellphone loading business
Laundry and dry cleaning business
Hair styling and makeup business
Spa, gym, and nail care business
Video and photography business
Tutorial business

42. Careers in Entrepreneurship
Baking business
Web site development and design/blogging
Direct selling business
Car wash and car care business
Bar, café, and restaurant
Water station and LPG (liquefied petroleum
gas) station

43. Franchising
A business arrangement wherein the
franchisor, who is the owner of the
business, acquires distribution centers
through the franchisees or the affiliated
dealers.

44. Entrepreneur Philippines’ franchise
business options in the Philippines:
Franchise or Startup Businesses
Bakeries, bakeshops, and bread products
Bars, cafes, and coffee shops
Beverage and confectionery
Car care
Clothing and accessories
Convenience stores
Drug stores and pharmacies

45. Fast food establishments and restaurants
Food and snacks
Gas stations/petroleum products
General merchandise and retail
Health and wellness (salon, massage, spa,
and gym)
Schools
Services (personal and business)
Waters stations

46. Other Additional Business Opportunities
Dealerships
Direct selling
Distributorship

47. DEALERSHIPS
A dealership is sometimes called a retail distributor.
It is similar to a distributorship, except that a dealer
usually sells only to the public. Unlike other types of
franchisees, including distributors, a dealer is not
usually restricted to carrying one product line. Most
commonly, this type of arrangement is found in the
automotive industry.
may also require regular onsite inspections of the
facility and regular customer and vendor feedback.

48. DIRECT SELLING
is a retail channel set up to market services and products
to consumers through personal or direct means. The
industry of direct selling is vast including jewelry, health,
food, cosmetics, insurance, accessories, homewares,
utilities and more. This channel differs from broader
mass-market retail avenues in an important way. The goal
is not only about bringing consumers directly in contact
with products.

49. DISTRIBUTORSHIPS
A distributor is an independent selling agent who has
a contract to sell the products of a manufacturer, but
is not entitled to use the manufacturer's trade name
as part of its trade name.
The contract may also limit the distributor to selling
only that company's goods, rather than marketing
different products and services from different firms.
The manufacturer sells the distributor the products at
wholesale prices.
A distributor is also sometimes referred to as a
wholesaler. Wholesalers resell the products to dealers.

50. I.
1. Entrepreneurship
2. Entrepreneur
3. Intrapreneur
4. Technopreneur
5. Extrapreneur
6. Problem Solvers
7. Franchising
8. DIRECT SELLING
9. distributor
10. DEALERSHIPS
II. Five levels of
entrepreneurial
development –
Action Coach
1. The Employee
2. The self-
employed
3. The manager
4. The leader
5. The investor
6. The true
entrepreneur
Common and Core
Competencies in
Entrepreneurship
1. Proactive
2. Agents of change
3. Risk takers
4. Have a sharp eye
for opportunities
5. Sociable
6. Networkers
7. Decisive
8. Balanced
9. Innovative
Core Traits of
Entrepreneurs
1. Leaders
2. Communicators
3. Specialists
4. Problem solvers
List of most common small
businesses in the Philippines:
• Sari – sari store
• Rice retailing
• Food cart business
• Printing business
• Buy-and-sell business
• Street food business
• Flea market business or
tiangge
• Online selling business
• Cellphone loading business
• Laundry and dry cleaning
business
• Hair styling and makeup
business
• Spa, gym, and nail care
business
• Video and photography
business
• Tutorial business
• Baking business
• Web site development and
design/blogging
• Direct selling business
• Car wash and car care
business
• Bar, café, and restaurant
• Water station and LPG
(liquefied petroleum gas)
station
Entrepreneur Philippines’
franchise business options in
the Philippines:
Franchise or Startup
Businesses
• Bakeries, bakeshops, and
bread products
• Bars, cafes, and coffee
shops
• Beverage and
confectionery
• Car care
• Clothing and accessories
• Convenience stores
• Drug stores and
pharmacies
• Fast food establishments
and restaurants
• Food and snacks
• Gas stations/petroleum
products
• General merchandise and
retail
• Health and wellness
(salon, massage, spa, and
gym)
• Schools
• Services (personal and
business)
• Waters stations
Other Additional
Business
Opportunities
• Dealerships
• Direct selling
• Distributorship