Entrep

Planning Cluster

A set of characteristics of successful entrepreneurs that basically supports the character traits in the achievement cluster. The concept of planning is inherent in the entrepreneur, being both the owner and manager of the business

Societal Environment.

Composed of social, political, cultural, economic, legal, and technological forces. Studies reveal that there is a positive relationship between the evaluation of the societal environmental and the favorable operating performance of the entrepreneurial venture.

interest rates, inflation rates, fiscal policies, monetary policies, income and exchange rates.

Economic forces or factors include the following;

Government Competitors Suppliers Customers Creditors Employees

The industry environment include

Climate change Natural resources Wildlife

The physical environment includes

Entrepreneurship

The process of staring and running one's own business. Is the art of observing correct practices in managing and operating a self - owned, wealth - creating business enterprise by providing goods and services that are valuable to the costumer

internal environment

The strengths and weaknesses represent its

Technological.

This must include an assessment of the major developments in science and technology that might have either a beneficial or detrimental impact on the business or on the entire industry.

Entrepreneur Lender Investor

Users of Business Plan

Opportunities

are business situations in the form of products or services that must be exploited of their potential in terms of profit and growth

tariffs, tax policy, government stability and unemployment.

(POLITICAL FORCES) The following are some of the factors that may affect the way businesses operate:

Monitoring

- refers to the evaluation of the activities and adopted courses of actions whether they are carried in accordance with the plans.

Opportunity - seeker

. A person who dreams of becoming a successful must be a seeker of business opportunities. He/she must possess the ability to identify with great ease the most appropriate entrepreneurial opportunities. The entrepreneur usually identifies a business opportunity and them thoroughly evaluates its viability.

Entrepreneurship Provides Valuable Goods and Services

. Entrepreneurship creates economic wealth by providing goods and services to the consumer. These goods and services must have a value in order to create wealth otherwise they become wasted. Valuable goods and services highly satisfy the target buyers in terms of quality and price. Businesses that offer goods and services that are valuable from the buyer's perspective are operating within the concept of entrepreneurship.

Economic

. This must include a description by the different factors affecting economic such as Gross Domestic Product, price movements of business inputs, inflation rates, interest rates, foreign exchange, and employment, among others.

Committed

A highly committed entrepreneur displays full commitment to the work or endeavor that he/she is undertaking. He/she does not entertain negativism and skepticism. Accepts full responsibility for what has been promised to the customers, establishes proper coordination with and among workers, so that goods and services are delivered as promised and seeks to prioritize the satisfaction and interest of customer. Commitment is directly related to interest. Lack of interest means lack of commitment.

Systematic in planning and monitoring.

A successful and dynamic entrepreneur does not simply set goals and objectives or monitor entrepreneurial activities in any way he/she wants. Rather, he/she follows a systematic pattern of planning processes and monitoring approaches. Systematic implies that there is a rational a logical approach in performing the activities. There are step - by - step procedures that are scientifically designed to be followed in the preparation of plans and monitoring of activities.

Efficient and Quality - oriented.

A successful entrepreneur highly values efficiency and the concept of quality in all business undertakings. Always performs the required tasks in accordance with existing standards of excellence or continuously improves on his/her past performance and strives to do things better and faster with minimal cost. The concept of efficiency in an entrepreneurial endeavor is related to the cost involved in the production of goods and services on the other hand, deals with defect. Successful entrepreneurs generally work for zero defects in their products and services.

Economic forces.

A type of forces that have direct or indirect effects on the entrepreneurial venture.

Social Forces.

Are elements in society resulting from human interactions that can influence the thoughts, behavior, attitude, actions, and even the beliefs and customs of the people. Social forces include the following; values, traditions, lifestyle patterns and professional career roles

Environmental and Industry Analysis

As explained earlier, it is important to describe the general conditions within which the entrepreneurial venture will operate.

Technological Forces.

Basically refer to the trends and developments in the computer and information technology that have impact on business.

THE SOCIETAL ENVIRONMENT

Changes in the physical environment have a direct impact on the societal environment and the effect can be felt on the industry environment. According to Wheenlen and Hunger (2010), the changes in the physical environment have an impact on the societal environment first in terms of resources availability and cost, later, on the industry environment in terms of growth or decline of particular industries.

Skills

Considered as personal abilities to do things well. Are acquired and developed by a person through constant and correct practice.

Technological Discovery and Advancement

Discovery and advancement in the use of technology are another good source of entrepreneurial ideas and opportunities. Most people welcome technological discoveries and advancement but cannot identify or determine entrepreneurial opportunities stemming from them. On the other hand, a person with entrepreneurial interest looks at the possibility of business opportunity in any new discovery or advancement in technology.

Entreprendre, to undertake

Entrepreneur comes from the French word______ means

Changes In The Environment

Entrepreneurial ideas arise from the changes that happen in the external environment with entrepreneurial implications. Not everyone welcomes changes in the external environment. However, a person with an entrepreneurial drive views these changes positively. He/she determines what business opportunity they may provide.

Information seeker

Entrepreneurs constantly make decisions that will affect the operations of their business ventures. These must be base not on their whims and caprices but on specific and relevant economic, financial, industry data. Successful entrepreneurs, in other words, primary seek a strong basis to make sound decisions.

Entrepreneurship is an Art of Correct Practice

Entrepreneurship is an art not a science. It not governed by fixed and absolute rules, whereas science. Thus, there is a constant change which denotes movement and innovation. Entrepreneurship, therefore, is not static or stagnant. It continuously grows, develops, improves, and expands; the change does not stop. As an art entrepreneurship is closely related to creativity. This creativity results in new ideas which are the backbone of entrepreneurship.

Entrepreneurship is a Wealth creating Venture.

Entrepreneurship is an undertaking wherein wealth is created. It is a business endeavor where the resources of the enterprise have been utilized fully to maximize the investment of the entrepreneur. The venture improves the life of the entrepreneur in terms of economic, financial, social, moral, and psychological.

Technological Discovery and Advancement

For example, a person with sufficient knowledge in the repair and installation of a mechanical engine discovers that the additional engine parts he installed during the repair have considerably reduced fuel consumption. That person could simply rest on his laurel for having contributed to fuel consumption.

Past experience.

For example, an auditor who has learned the appropriate auditing and management advisory skills and techniques in a prominent auditing firm can start his/her entrepreneurial venture by opening his/her own auditing office. In a similar manner, a good engine mechanic who has worked in a leading car manufacturer may find it appropriate to open his/her vehicle repair shop. Thus his/her relevant job experiences in the past can lead to that entrepreneurial venture.

Government's Thrust Programs and Policies.

For example, the use of firecrackers to celebrate New Year's Eve is strictly prohibited. People without entrepreneurial drive will view the ordinance as a plain restriction. An entrepreneur, however, will take it as a business opportunity to come up with a new product that will serve as a substitute for firecrackers.

Climate

For example: the normal weather conditions in Baguio City is definitely different from Davao City. Therefore, a business may be feasible in Baguio City but not in Davao City

Political Forces

Future legislation may have adverse effects on the proposed business. For example, the government's move against smoking for health reasons may adversely affect the tobacco industry.

Tell a compelling story Exhibit confidence and professionalism Cover the basics Adopt a cooperative attribute when answering questions Always be ready to deliver an elevator pitch in case you need to give one might encounter a potential investors while attending a social event

HOW TO PRESENT BUSINESS PLAN

Production Plan

If the new venture is a manufacturing concern, the entrepreneur must prepare a production plan that describes the complete manufacturing process. If the manufacturing will be carried out by the business, the entrepreneur must include the following in the production plan: a description of the layout of the physical plant; the machinery and equipment needed to perform the manufacturing operations; names, addresses, and terms of payment of the suppliers of raw materials; production costs; and future capital equipment needs.

A business plan makes you think about all aspects of your business. A business plan may help you secure financing for your business. A business plan helps you communicate your ideas to others.

Importance of Business Plan

Importance to Filipino Importance to the Local Community Importance to the Philippine Economy

Importance of entrepreneurship

Technical skills

In this age of advanced computer and information technology, entrepreneurs must be fully equipped with the right ___.

Technical Skills.

In this age of advanced computer and information technology, entrepreneurs must be fully equipped with the right technical skills. The result or final output of cognitive skills may not be very effective unless put into reality through the application of technical skills. For entrepreneurs these skills relate to their knowledge and proficiency in a specialized field. Technical skill must be studied and learned in the most practical way, "hands-on".

Introduction Environmental Analysis Description of the business Production Plan Operation Plan Marketing Plan

MAJOR SECTIONS OF A BUSINESS PLAN

Political, Economic, Social and Technological.

PEST is an acronym for ________. This analysis is used to assess these four external factors in relation to your business situation. Basically, a PEST analysis helps you determine how these factors will affect the performance and activities of your business in the long-term

Past experience.

Past experiences and exposure are also a good source of entrepreneurial ideas. The expertise and skills developed by a person who has worked in a particular field may lead to the opening of a related business enterprise.

Political forces.

Political environment of a country impacts any business organization and can also introduce a risk factor can cause the business to suffer losses or compromise over its profit stream. It is very important that a business should plan for the variability in the policies and regulations of the government to maintain a stable business environment.

Character traits

Refers to the mark of attributes that distinguishes an entrepreneur from the owner of an ordinary small business

Character Traits

Refers to the mark or attributes that distinguishes an entrepreneur from the owner of an ordinary small business. Based on the studies conducted by Small Enterprise Research and Development Foundation (SERDF) of the Department of Trade and Industry (DTI), there are ten entrepreneurial characteristics grouped into three major clusters: achievement cluster, planning cluster, power cluster.

cognitive skills

Refers to the mental ability to learn new things and generate new ideas, and express knowledge in both oral and written forms

Cognitive Skills.

Refers to the mental ability to learn new things and generate new ideas, and express knowledge in both oral and written forms. The human brain is responsible for the development of cognitive skills, which are essential in making systematic and effective plans and monitoring them.

Entrepreneurial Skills.

Refers to the set of cognitive, technical and interpersonal skills that is required in the practice of entrepreneurship

Entrepreneurial Skills

Refers to the set of cognitive, technical, and interpersonal skill that is required in practice through constant and correct practice.

Interpersonal skills

Relationship and interaction of the entrepreneur to the following: workers, suppliers, creditors, prospective customers and other members of the business communjty

Interpersonal Skills.

Relationship and interaction of the entrepreneur to the following; workers, suppliers, creditors, prospective customers, and other members of business community

strengths, weaknesses, opportunities, and threats

SWOT stands for

Entrepreneurship is an art of correct practice Entrepreneurship is a wealth creating venture Entrepreneurship provides valuable goods and services Entrepreneurship Entails opening and managing the self-owned entreprise Entrepreneurship is a risk taking venture

Salient features of Entrepreneurship

Change in the environment Technological Discoveries and Advancements Government's thrust, program and policies People's interest Past experiences

Sources of Entrepreneurial Ideas

Knowledge Aptitude Practice/ Experience

Sources of skills

Risk - taker.

Successful entrepreneurs are business risk - takers. There is risk in entrepreneurship because of uncertainty. No one can predict exactly what will happen tomorrow. Risk is inseparable from entrepreneurship. It is inherent in all entrepreneurial ventures.

Self - confident.

Successful entrepreneurs are known to have a high level of self - confidence. They project a favorable image of themselves which is founded on respect and good deeds in the business community. Entrepreneurial self - confidence is actually a manifestation of the entrepreneur's string trust or belief in him/her.

Persuasive and Positive Networker

Successful entrepreneurs are persuasive and can easily influence and win over to their side the other stakeholders in business such as customers, suppliers, and prospective creditors. They are able to establish good and positive networking with almost all of the players in the business community.

• Information technology • Business plan preparation • Technical writing skills • Marketing • Management and finance

Technical skills of an entrepreneur includes in the following:

internet social media new inventions and research and development activities.

Technological forces may include the following;

• Ability to understand written materials • Ability to learn and apply new information • Ability to solve problems • Ability to create new ideas • Ability to innovate new products

The Cognitive skills of an entrepreneur include the following.

Physical Resources.

The availability of raw materials is another major factor that can influence the success or failure of the business venture. Although the climate of the place may be conducive to the business, it may still fail if the resources are not available. The availability or lack of raw materials will determine the cost of the products.

Goal setter.

The basic concept of planning is setting goals and objectives. Goals and objectives are the guiding points that direct all actions, efforts and struggles of the entrepreneur. Being a goal - setter, a successful entrepreneur sets clear, specific, and well - defined short - and - long term goals and objectives .

Entrepreneurship is a Risk taking Venture

The basic concept of risk in entrepreneurship can be expressed in this statement "Risk is inherent in an entrepreneurial venture". In other words, once an entrepreneurial venture is born because of new ideas or opportunities, risk comes simultaneously with the venture.

Climate.

The climatic condition in a particular region where the business will be established must be evaluated. The entrepreneur, therefore, must consider the prevalent climatic condition of the area where he/she intends to open the business to determine whether it can withstand or is fit to the climatic conditions in the area

PHYSICAL ENVIRONMENT

The first layer of the environment. It is composed of the natural elements that are inherent in the Earth. It is divided into climate, physical resources and wildlife.

People's Interests.

The interest, hobbies, and preferences of people are rich sources of entrepreneurial ideas. For example, the increasing number of Internet cafes at present could attribute to the strong attachment of young people to computers. The rise of amusement parks, nightspots, and nature farms could be a response to the need of people for fun and relaxation. However, an entrepreneur must be keen in identifying the cycle of interest and trends of his/her target market since these tend to continuously change. He/she must be ready to address the change properly and immediately to avoid possible negative effects on the operations of the business.

▪ Skills in verbal communication ▪ Skills in listening ▪ Skills in leading ▪ Skills in negotiating

The interpersonal skills of an entrepreneurs include the following:

Introduction

The introduction presents the general perspective of the business. It may consist of one to two pages. It includes, among others, the following sections; • Proposed name of the business • Address of the business • Name of the owner or owners • Description of the business • Location of the business • Funding requirements and source

Government's Thrust Programs and Policies.

The priorities, projects, programs, and policies of the government are also good sources of entrepreneurial ideas. The term government refers to local government or the national government and its branches. There are also instances when the national government responds to the call of international agencies or the world market. Whenever there are changes in the policies and programs of the government, new entrepreneurial ideas are likely born.

Economic forces, sociocultural forces, political forces and technological environment

The societal environment include

Wildlife.

The wild plants and animals in Philippine forest are continuously abused. The tress cut for timber is not properly replaced. Wild animals are hunted and killed. These abused lead towards imbalance in the Philippine ecological system of the local community and our country in general.

Aggressive risk taker Moderate risk taker Conservative risk taker

There are three types of risk - taker:

Sociocultural Technological Political Economic

These environmental factors include the following.

Political.

This condition must take into account existing laws and regulations, as well as future legislation that could directly affect the business. A legislative increase in minimum wage, for instance, would have a substantial impact on a labor - intensive business employing low - wage workers. Stricter health and safety regulations might increase the cost of production; if there will be required changes in the manufacturing process or in the packaging of products.

Introduction

This cover page provides a brief summary of the business plan's content. It must contain the following: (a) the name and address of the business venture; (b) the name of the entrepreneur and his contact information; (c) a brief description of the company and the nature of the business, (d) the amount of financing needed. The entrepreneur might also want to include a statement of confidentiality, especially if his business idea involves a novel or cutting edge technology

Entrepreneurship Entails Opening and Managing the Self - Owned Enterprise.

This feature highlights two important elements: the concept of opening a self - owned enterprise and the concept of managing it. The entrepreneurs open his/her business under the principle of entrepreneurship. It must be self -owned in order to qualify as an entrepreneurial endeavor. A business is considered self - owned when the person managing its daily activities, whether big or small.

Sociocultural.

This includes, among others, a description of shifts in the characteristics of the population, including the rise of the Filipino middle class and the growing elderly population; lifestyle trends, including the increasing emphasis on health and sustainable living; and shifting consumer preferences, including the demand of the products and services.

Marketing Plan

This section describes the target market for the new product or service. Who will want to buy and use the product or avail of the service? Why would they want to do so? Once the target market is defined, then the entrepreneur must describe how the product or service will be priced, promoted, and distributed to its target customers. If the entrepreneur conducted market research, then highlights of the study must be presented to justify marketing strategies.

Achievement cluster Planning cluster Power cluster

Three major cluster of character traits

Opportunity seeker Committed Persistent Risk taker Efficient and Quality Oriented

Under achievement cluster

Persuasive and Positive Networker Self confident

Under power cluster

Physical Environment Societal Environment Industry Environment

Under the Changes in Environment

Goal setter Information seeker Systematic in planning and monitoring

Under the planning cluster

Entrepreneur

Which signifies the start of a new business undertaking The American Heritage Desk Dictionary defines an entrepreneur as a person who strongly advocates and correctly practices the concepts and principles of entrepreneurship in operating and managing the self-owned entrepreneurial venture. This definition puts emphasis on the concepts of advocacy and corrects practices

Description Of The Business

Worth including in this section is the venture mission statement, which could serve as a guide in decision - making. The entrepreneur must also include information about the product or service offered by the company, the location of the business, its major physical assets, and some background information about the business owner and its management team. With regard to the location of the business, it might be important to indicate whether the office or plant is in a commercial zone, is accessible to traffic, and big enough for potential expansion

goals objectives

are long - term while are short term

Weaknesses

are poor attributes or deficiencies that give advantages to the business. Both the strength and weakness in the SWOT analysis are within the control of the entrepreneur.

Threats

are possible external events in the environment that may provide harm to the business. Both the opportunities and threats in the SWOT analysis is outside the business environment

Skills

considered as personal abilities to do things well.

Achievement cluster

consists of entrepreneurial character traits that are directly related to the entrepreneur's desire to be an achiever in the field of entrepreneurship. Entrepreneurs are achiever by nature and they strive to achieve. Successful entrepreneurs constantly set things to be achieved and repeatedly find ways to achieve them.

External environment

constitutes everything outside a firm that might affect the ability of the enterprise to attain its goals. These forces are uncontrollable and it affects all companies in the industry.

character; cash flow, collateral, and equity contribution.

four Cs of credit;

Power Cluster.

includes a set of character traits that reflect the degree of the interpersonal relations maintained by successful entrepreneurs in the community. It establishes the relationships of the entrepreneurs with the supplier of raw materials, financial institution, customers, competitors, the government, employees and all other stakeholders.

Environmental scanning

is a constant and careful analysis of the internal and external environment of a business venture in order to detect opportunities, threats, trends, important lessons, and weaknesses which can impact the current and future strategies of the business. It is an important part of the business process as it is the responsibility of a venture to keep a check on things which can put negative impacts on their business and their consumers.

business plan

is a document prepared by the entrepreneur. That describes all the relevant information, internal and external elements and strategies for starting a business or in expanding an existing venture, amidst a dynamic business environment. It integrates the different functional plans such as marketing, manufacturing, finance, and human resource management, taking into consideration the overall strategy of the business.

SWOT analysis

is designed to facilitate a realistic, factbased, data-driven look at the strengths and weaknesses of an organization, its initiatives, or an industry. The organization needs to keep the analysis accurate by avoiding pre-conceived beliefs or gray areas and instead focusing on real-life contexts. Companies should use it as a guide and not necessarily as a prescription.

Moderate risk taker

is more calculative in taking risks. He/she analyzes the situation before taking leap

Aggressive risk taker

is not scared to take any risks in business

conservative risk taker

is not very eager to take any kind of risk. He/she is satisfied with managing a small business and a regular clientele.

business plan

is prepared using a scientific approach in determining possible business situations considering the different perspective of people who are interested in the business. Though the perspective of the entrepreneur has the major influence on the business plan, he/she nonetheless must still consider the views of the customers, creditors, and even the employees and staff. He/she must gather sufficient and relevant information to support any perception or conclusion

Persistent

is the foundation of commitment. As persistence advances in the life of an entrepreneur, commitment increases its strength. Trials, sacrifices and failures challenge the entrepreneur to be persistent. He/she learns to, take repeated or different actions in order to overcome the obstacles, make personal sacrifice or exert extraordinary effort to complete the required task, and stick to his/her own judgment in time of opposition and failure. The term "quit" and "surrender" are not included in the vocabulary of successful entrepreneurs. They exhaust all possible means to keep their businesses a float in the market.

external environment

opportunities and threats represent its

The salient features of entrepreneurship

provide better understanding of the whole concept. They also act as the point of references in determining whether a particular business endeavor is operating within the realm of entrepreneurship.

Internal environment

refers to all the inlying forces and conditions present within the company, which can affect the company's working. These forces are controllable and it affects the company only.

Strength

refers to the strong attributes or capabilities of the business that provide great advantage in exploiting the business opportunity.

The plan

serves as the blueprint of the actions to be undertaken by the entrepreneur.

Planning

simply refers to the setting of goals and objectives.

SWOT analysis

to give a clear understanding of a situation and related internal and external factors.

Environmental Analysis

• Conditions of the general environment (i.e., Sociocultural, technological, economic, and political - legal conditions.) • Conditions of the specific environment (i,e., supply and demand conditions, competition)

Operation Plan

• Description of the company's operations • Flow of orders for goods and services.

IMPORTANCE TO THE PHILIPPINE ECONOMY

• It encourages competitiveness and challenges entrepreneurs to keep improving their products and services. • It helps find an entrepreneurial niche in the world market. • It helps hasten the economic recovery process of the Philippines during financial crackdown. • It facilitates the smooth flow of money in the local market. • It assists the national government in its desire to have favorable economic ratings in the world market.

IMPORTANCE TO THE LOCAL COMMUNITY

• It provides employment in the community. • It creates new demand in the market. • It makes substantial contribution to the raising and collection of taxes. • It facilitates the movement of the factors of production. • It creates a new business opportunities. • It promotes a peaceful and loving community. • It increases constructive competition.

IMPORTANCE TO THE FILIPINO

• It provides guidelines in their wealth-creating ventures. • It helps improve their financial and social life. • It helps broaden their creativity. • It helps make their lives happy, fruitful, and successful.

Production Plan

• Manufacturing process • Physical plant • Machinery and equipment • Suppliers of raw materials • Future capital equipment needs

Marketing Plan

• Product • Place • Price • Promotion • People • Packaging • Process

Description of the Business

• Products and/ or service • Size of the business • Mission statement and core values • Location of the business and its major physical assets • Background of the business owners/entrepreneurs.