ENTREPRENEURSHIP

Quiz Number 1

Name:_____________________________________

Instruction: Read the statements carefully then write True if the statement is correct
& write False if you think the answer is not correct.
____________1. Entrepreneur means “to undertake.”
____________2. Entrepreneurship is a process of actions of an entrepreneur who is
always in search of opportunities.
____________3. The greatest significance of entrepreneurship is to help
identify and develop the managerial capabilities of entrepreneurs.
____________4. Entrepreneurship will lead to the creation of organizations.
____________5. Entrepreneurship can improve the life of the entrepreneur only.
____________6. Coward people will become successful entrepreneur.
____________7. An entrepreneur is a “Risk Taker”.
____________8. Entrepreneurship is not an economic activity.
____________9. Entrepreneurs are innovative.
____________10. Profit potential is the compensation of the entrepreneur.
____________11. An entrepreneur can become a business consultant.
____________12. An entrepreneur can also be a researcher.
____________13. An entrepreneur can also become a salesman.
____________14. Entrepreneurship graduates can become a business
reporter.
____________15. The entrepreneur could easily see the results of his efforts.
II. Direction: Answer the questions given below by encircling the letter of the correct
answer.
________1. The entrepreneurs who create new ideas are called?
a. Innovative
b. Imitating
c. Fabian
d. Drone
________2. The entrepreneur who lives on the labor of others is called?
a. Drone
b. Fabian
c. Imitating
d. Innovative
________3. These are entrepreneurs who are to follow the path shown by innovative
entrepreneur.
a. Innovative
b. Imitating
c. Social Entrepreneurs
d. Fabian
________4. Which of the following is NOT a function of an entrepreneur?
a. Skills management
b. Risk taking
c. Conduct research
d. Make no changes with his product
________5. Entrepreneur means:
a. Risk taker
b. To undertake
c. To research
d. To improve standard of living
________6. It is a personality factor which means “doing things even before being told”
a. proactive
b. perseverance
c. persuasion
d. initiative
________7. It is a personality factor which means convincing customers to buy the
product
a. Proactive
b. Persuasion
c. Self-confidence
d. Risk taker
________8. Which of the choices is NOT part of the environmental factors?
a. Political
b. Weather condition
c. climate
d. family background of the manager
________9. All except one does NOT belong to the group?
a. Unfair trade practices
b. Strikes
c. Political protest
d. Product
________10.The entrepreneur who is skeptical about the changes in the company is called?
a. Fabian
b. Social entrepreneur
c. Drone
d. Imitating
________11. Which is NOT a career for an entrepreneur?
a. Business consultant
b. Sales
c. Research and Development
d. Domestic Helper

________12. They are entrepreneurs who drive social innovation and transformation in various fields.
a. drone
b. Social entrepreneur
c. Fabian
d. Imitating
________13. Which of the statements below is true?
a. Entrepreneur has limited career opportunities
b. Entrepreneurs are prone to constant high income
c. Entrepreneurs are contributor to the development of the society
d. Entrepreneurs are the reasons for unemployment problem
________14. Which of the statement is NOT true?
a. An entrepreneur will patiently wait for his efforts to bear fruit.
b. The profit of the entrepreneur is immediate.
c. All entrepreneurs are successful
d. Entrepreneurs are researchers
________15. Which of the following is NOT true?
a. Entrepreneurship create organizations
b. Improves the life of the entrepreneur alone
c. Entrepreneurs improves the economy
d. None of the choices
Quarter 1 – Module 2 Recognize a Potential Market
Entrepreneurial Ideas The creation of an entrepreneurial ideas leads to the identification of entrepreneurial
opportunities, which in turn results in the opening of an entrepreneurial venture. The entrepreneurial process of
creating a new venture is presented in the diagram below. (Aduana, 2017)

Figure 1. The Entrepreneurial Process of Creating New Venture

Essentials in Entrepreneur’s Opportunity Seeking
These are the basic foundation that the entrepreneur must have in seeking
opportunities:
Entrepreneurial mind frame. This allows the entrepreneur to see things in a
very positive and optimistic way in the midst of difficult situation. Being a risk - taker,
an entrepreneur can find solution when problems arise.
Entrepreneurial heart flame. Entrepreneur's driven passion, they are
attracted to discover satisfaction in the act and process of discovery. Passion is the
great desire of an entrepreneur to achieve his/her goals.
 Recognize a Potential Market
 Creation of
 entrepreneurial
 Ideas
 Identification of
 entrepreneurial
 Opportunities
 Opening of
 entrepreneurial
 Venture
Entrepreneurial gut game. This refers to the ability of the entrepreneur of being intuitive. This also known as
intuition. The gut game also means confidence in
one’s self and the firm believes that everything you aspire can be reached.
Sources of Opportunities
There are many ways to discover opportunities. Looking at the big picture some
have noticed the emerging trends and patterns for business opportunities. While
others are trying to find out their target market. Some are the following sources of
opportunities:
1. Changes in the environment
Entrepreneurial ideas arise when changes happen in the external environment. A person with an entrepreneurial
drive views these changes positively.
External environment refers to the physical environment, societal environment, and industry environment
where the business operates.
1.1 The physical environment includes
a. Climate- the weather conditions.
b. Natural resources- such as minerals, forests, water, and fertile
land that occur in nature and can be used for economic gain.
c. Wildlife- includes all mammals, birds, reptiles, fish, etc., that live in
the wild.
1.2 The Societal environment includes the various forces like
a. Political forces- includes all the laws, rules, and regulations that
govern business practices as well as the permits, approvals, and
licenses necessary to operate the business.
b. Economic forces- such as income level and employment rate.
c. Sociocultural forces- customs, lifestyles and values that characterize a society.
d. Technological environment-. New inventions and technology innovations.
1.3 The industry environment of the business includes:
a. Competitors
b. Customers
c. Creditors
d. Employees
e. Government
f. Suppliers
For example, one factor in the physical environment that can easily change is the climate. The temperature is
very high during summer but very low during the rainy season. An individual with entrepreneurial drive can be
extremely imaginative and inventive in identifying opportunities. He/she can venture a business that responds to
the needs of the people during summer and rainy season.
2. Technological discovery and advancement
A person with entrepreneurial interest sees possibility of business
opportunities in any new discovery or because of the use of latest technology.
For example, an individual with knowledge in repair and installation of a
machine engine discovers that additional engine parts that considerably reduce fuel
consumption.
3. Government’s thrust, programs, and policies
The priorities, projects, programs, and policies of the government are also
good sources of ideas.
For example, the use of firecrackers to celebrate New Year’s Eve is strictly
prohibited. People without entrepreneurial interest will view the ordinance as a plain
restriction. However, for an entrepreneur, it is a business opportunity to come up with
a new product that will serve as a substitute for firecrackers.
4. People’s interest
The interest, hobbies, and preferences of people are rich source of
entrepreneurial ideas. Like the increasing number of Internet Café at present could
be lead to the strong attachment of young people to computers.
5. Past experiences
The expertise and skills developed by a person who has worked in a particular field may lead to the opening of
related business enterprise.
For example an accountant who has learned the appropriate accounting and management skills and techniques
in a prominent accounting firm can start his/her business venture by opening his/her own accounting firm.
Forces of Competition Model
It is also known as the “five forces of competition,” An industry environment is a competitive environment.
Regardless of what product or services you have, competition is always present.
Competition – it is the act or process of trying to get or win something.
For example, the prices are lower when there is a competition among the
stores.
These are the five forces competing within the industry:
• Buyers
• Potential new entrants
• Rivalry among existing firms
• Substitute products
• Supplier
1. Buyers
The buyers are the one that pays cash in exchange to your goods and services. For example, the influenced of
the price or in the bargaining strategy. The buyer has a strong and magnified bargaining power. The threat of its
bargaining power will be less if the following factors notice:
a. There are several suppliers available in the market.
b. The buyer has the potential for backward integration.
c. The cost of switching the supplier cost is minimal.
d. The product represents a high percentage of the buyer’s cost.
e. The buyer purchases large portions of the seller’s product or services.
2. Potential New Entrants
A new entrant is defined as the one who enters something. For example, the level of capital requirements, if the
business requires huge capital, new entrants should decline to join the business. This gives a threat to the
business. This can be notice if there is the presence of the following factors:
a. Substantial capital requirement.
b. Strict government policy.
c. Difficulty in accessing distribution channels.
d. Economies of scale.
e. High cost of product differentiation.
f. High switching cost
3. Rivalry among Existing Firms
Rivalry is a state or situation in which people or groups are competing with each other. For example it depends
on the Marketing strategy of your competitor, like giving freebies and special offers. The intensity of rivalry
among existing firms is characterized to the following factors:
a. Diversity of rivals.
b. Number of competing firms.
c. Characteristics of the products or services.
d. Increased capacity.
e. Amount of fixed costs.
f. Rate of industry growth.
4. Substitute Products
Substitute means anything that takes the place or function of another. For example the consumers decide to use
margarine as a substitute for butter. In case the price of butter increases, preferably the consumer will gradually
switch to margarine.
A substitute product can give a big threat in the industry environment if the following factors are notice:
a. Switching cost is low.
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.
5. Suppliers
The Suppliers are the one that provide something that is needed or wanted. For example if the supply and
services being offered is unstable or keep. The intensity of the threat is strong in this kind of the competitive
force in the industry. This can be notice if there is the presence of the following factors:
a. The supplier has the ability for forward integration.
b. Suppliers in the industry are few, but the sales volume is high.
c. Substitute products are not readily available in the market
d. The switching cost is very high.
e. The product or service is unique
Activity 1:COMPLETE ME
Complete the table below by supplying it with products that you consider similar. Write the product and not the
brand in their respective columns. Then describe and differentiate its characteristics and uses.