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

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 entrepreneurship in
general, including its economic importance.
 Define who is an entrepreneur.
 Explain the key concepts of common and core
competencies in entrepreneurship.
 Delineate clearly between entrepreneurship and
employment.
 Explore opportunities for entrepreneurship as a
career.

3. 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.

4. 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.

5. 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.

6. 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”.

7. 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.

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

9. 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 the core
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.

10. 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 company to
another to act as the innovation champion,
providing creative and efficient solutions

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

12. Common and Core Competencies in
Entrepreneurship
 Proactive
 Agents of change
 Risk takers
 Have a sharp eye for opportunities
 Sociable
 Networkers
 Decisive
 Balanced
 Innovative

13. Core Traits of Entrepreneurs
Leaders
Communicators
Specialists
Problem solvers

14. 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

15. Important Career
Factors
Entrepreneur Employee
2. Hiring and Firing,
Organizational Setup, and
Major Key Result Areas
 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

16. 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

17. Important Career
Factors
Entrepreneur Employee
4. Leisure Time
and Vacations
 Has a flexible schedule
and can take unlimited
number of vacation
days (applicable only
if the business has
stabilized already)
 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

18. 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

19. 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

20. 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

21. 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

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

23. 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

24. 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

25. Other Additional Business Opportunities
Dealerships
Direct selling
Distributorship