RECOGNIZE A POTENTIAL MARKET
Entrepreneurial Process of Creating New 1. CHANGES IN THE ENVIRONMENT
Venture Entrepreneurial ideas arise when
changes happen in the external
i. Creation of entrepreneurial ideas
environment.
ii. Identification of entrepreneurial
opportunities
1.1 PHYSICAL ENVIRONMENT
iii. Opening of entrepreneurial venture
INCLUDES:
Essentials in Entrepreneur's Opportunity – a) Climate
Seeking - Weather conditions
b) Natural resources
• Entrepreneurial mind frame - Minerals, forests, water, and
• Entrepreneurial heart flame fertile land occur in nature and
• Entrepreneurial gut game can be used for economic gain
Entrepreneurial Mind Frame c) Wildlife
-includes all mammals, birds,
This allows the entrepreneur to see things in a reptiles, fish, etc., that live in
very positive and optimistic way in the midst of the wild
a difficult situation, being a risk-taker, an 2. TECHNOLOGICAL DISCOVERY AND
entrepreneur can find solutions when problems ADVANCEMENT
arise
Entrepreneurial Heart Flame 1.2 SOCIETAL ENVIRONMENT
Entrepreneurs are driven by passion; they are a. Political forces
attracted to discovering satisfaction in the act Includes all the laws, rules, and
and process of discovery. Passion is the great regulations that govern business
desire of an entrepreneur to achieve his/her practices as well as the permits,
goal approvals, and licenses necessary to
operate the business
Entrepreneurial Gut Game
This refers to the ability of entrepreneurs of b. Economic forces
being intuitive. This is also known as intuition. Income level and employment
The gut game also means confidence in one’s rate
self and the firm belief that everything you
aspire can be reached c. Sociocultural forces
Customs, lifestyles, and values
Sources of opportunities
that characterize a society
1. Changes in the environment
d. Technological Environment
2. Technological discovery and advancement New inventions and technology
3. Government's thrust, programs, and policies innovations
4. People's interest
5. Past Experiences
The Industry environment Forces of Competition Model
For example, one factor in the Also known as the "five forces of
physical environment that can competition ". An industry environment
easily change is the climate. The is a competitive environment.
temperature is very high during Regardless of what product or service
summer but very low during rainy you have, competition is always
reason. An individual with present. Competition- it is the act or
entrepreneurial drive can be process of trying to get or win
extremely imaginative and something
inventive in identifying
opportunities. He/she can venture 1. Buyer
on a business that responds to the The one that pay cash in exchange
needs of the people during summer for goods and services.
a. Competitors The threat of its bargaining power
b. customers will be less if the following factors
c. creditors are noticed:
d. employees a. There are several suppliers
e. Government available in the market
f. Suppliers b. The buyer has the potential for
backward integration.
3. GOVERNMENT’S THRUST, PROGRAMS,
c. The cost of switching supplier
AND POLICIES
cost is minimal.
The priorities, projects, programs and d. The product represents a high
policies of the government are also percentage of the buyer’s cost.
good sources of ideas. e. The buyer purchases large
portions of the seller’s product or
4. PEOPLE’S INTEREST services
The interest, hobbies, and preferences 2. Potential New Entrants
of people are rich sources of A new entrant is defines as
entrepreneurial ideas, as the increasing companies or business that have
number of Internet Cafe at present the ability to penetrate or enter
could lead to strong attachment of into a particular industry.
young people to computers
a. substantial capital requirement
5. PAST EXPERIENCES -refers to paid-up capital
stock/shares at least Five
The expertise and skills developed by a Million Pesos (P5,000,000.00)
person who has worked in a particular b. Strict government
filed may lead to opening of a related c. Difficulty in accessing
business enterprise. distribution channels
d. Economic of scale
e. High cost of product
differentiation
f. High switching cost
3. Rivalry among existing firms
5. Supplier
State or situation wherein the The one that provide something
business organizations are that is needed in the business
competing with each other in a
operations such as office supplies
particular market.
and equipment
a. diversity of rivals
b. number of competing firms Supplies and services being offered
c. characteristics of the is unstable the intensity of the
products or services threat This can be noticed if there
d. increased capacity is the presence of the following
e. amount of fixed cost factors:
f. rate of industry growth a. the supplier has the ability for
forward integration
4. Substitute Products b. suppliers in the industry are
Substitute is one that serves the few, but the sales volume is
same purpose as another product in high
the market. c. substitute products are not
A substitute product can give readily available in the market
threat in the industry environment d. the switching cost is very high
if the following factors are noticed: e. the product or service is
a. switching cost is low unique
b. preferences and tastes of the
customers easily change
c. product differentiation is highly
noticeable
d. the quality of substitute
products dramatically improves
e. the price of substitute product
is substantially lower
GUIDELINES FOR SUCCESSFUL
3. MAYOR'S BUSINESS PERMIT
BUSINESS PLAN IMPLEMENTATION
For getting the license to operate
OBJECTIVES in the city or municipality and
payment of your local business
Should be crystal clear and specifically taxes
spelled out, since it will be used as a
building block for the rest of the 4. BIR REGISTRATION
implementation plan.
For getting TIN, official receipts and
TASKS invoices, registering your book
accounts, and paying your national
This part must be accomplished to internal revenue taxes
achieve the objectives. You should
enumerate tasks and assignments, with 5. SSS, PHILHEALTH AND PAG-IBIG
descriptions specifically plainly and FUND REGISTRATION
generally stated
For registering yourself or your
TIME ALLOCATION company as an employer and for
remitting your employee's
Each task should be paired with an contribution together with your
appropriate time frame for completion. employer's share
The time allocation should be forceful
but reasonable in order to ensure not SPECIAL REQUIREMENTS
just completion but competent work. BANGKO SENTRAL NG PILIPINAS
(BSP)
PROGRESS BANKS, LENDING, MONEY
CHANGER
The overall management team leader FINANCING
needs to be in charge of monitoring
COMPANY, PAWNSHOP, MONEY
each task's progress and the completion
REMITTANCE
percentage of each objective. When
delays occur, try to get to the root of
the problem. BUREAU OF FOOD AND DRUGS
(BFAD)
BUSINESS REGISTRATION FOOD & DRUGS
REQUIREMENTS
COMMISION ON HIGHER
1. SEC REGISTRATION EDUCATION
For partnership or corporation
SCHOOL
Security and Exchange Commission
2. DTI REGISTRATION
For registering your business trade
name
