Entrepreneurship Week 4.1

ENTREPRENEURSHIP MODULE 2RECOGNIZING THE POTENTIAL MARKET

This module will discuss the proper and efficient ways of starting a business

THE ENTREPRENEURIAL PROCESS- is a step by step procedure in establishing any kind of business that an entrepreneur has to undergo. 4 ASPECTS : 1. OPPORTUNITY SPOTTING & ASSESSMENT-Most difficult. Entrepreneurs at this point take note of interesting trends in their environment. - Customers are reliable sources of opportunity information because market originates from them. 2. DEVELOPING A BUSINESS PLAN- a business plan is a comprehensive

2. DEVELOPING A BUSINESS PLAN- a business plan is a comprehensive paper that details the marketing,operational,human resource, financial, strategic direction and tactics of the business. 3. DETERMINING THE CAPITAL NEEDED-It is mandatory to calculate the resources needed to establish the business and compare this against the entrepreneur’s current resources. 4. RUNNING THE BUSINESS- this is the part where the entrepreneur should use the resources allocated for the new venture.

SCANNING THE MARKETING ENVIRONMENT -is the starting point of any new venture that involves the understanding and knowing the intricacies of the macroenvironment, microenvironment & internal environment. - In scanning the general environment,an entrepreneur can recognize various opportunities

SCANNING THE MARKETING ENVIRONMENT 3S OPPORTUNITY: -Opportunity is an entrepreneur’s business idea that can potentially become a great product or service S1- SEEKING THE OPPORTUNITY -is the first step and the most difficult process

S1- SEEKING THE OPPORTUNITY SOURCES: 1. MACROENVIRONMENTAL SOURCES a. STEEPLEDSocioculturl,technological,economic,environment al,political,legal,ethical and demographic factors. This represents the general environment where the entrepreneur can identify business opportunities.

b. INDUSTRY- is the source of current trend where the business will belong to. c. NEW DISCOVERY OR KNOWLEDGE-new trends that can be core business model of a new venture. d. FUTURISTIC OPPORTUNITIES- projected new opportunities that can possibly affect the business while it is running.

2. MICROMARKET a. Consumer preferences,interests and perception-the current needs and wants of potential customers should be discovered right away. b. COMPETITORS- recognizing & understanding potential competitors. c. UNEXPECTED OPPORTUNITIES FROM CUSTOMERS

d. TALENTS,HOBBIES,SKILLS AND EXPERTISEe. IRRITANTS IN THE MARKETPLACE SUCH AS DETERRENTS,PROBLEMS,COMPLAINTS AND DELAYS f. LOCATION

STEEPLED ANALYSIS 1. SOCIOCULTURAL FACTORS Locality’s traditions,customs,beliefs,norms & perceptions. examples:  Education level Health consciousness Attitude toward imported goods and services

STEEPLED ANALYSIS 2. TECHNOLOGICAL FACTORS-innovations of an existing technology Basic infrastructure level Spending on research and development Communication infrastructure

STEEPLED ANALYSIS 3. ECONOMIC FACTORS-which includes income,expenses,resources that can influence the cost of doing business. Growth rates Inflation rates Unemployment trends Price fluctuations

STEEPLED ANALYSIS • 4. ENVIRONMENTAL & ECOLOGICAL FACTORS • Weather • Climate change • Laws regulating environment pollution • Air and water pollution

STEEPLED ANALYSIS 5. POLITICAL FACTORS-mostly induced by government policies & procedures • Corruption level • Tax policy • Rule of law • Government stability

STEEPLED ANALYSIS 6. LEGAL FACTORS- government laws and regulations that restrict or allow the business activities. Copyright,patent,IP Consumer protection Employment law Data protection law Anti trust law

STEEPLED ANALYSIS 7. ETHICAL FACTORS -ethical advertising & sales practices -accepted accounting,marketing & management standards -attitude towards counterfeiting & breaking patents

STEEPLED ANALYSIS 8. DEMOGRAPHIC FACTORS- characteristics of people in the target market -population growth -gender -social classes Family size & structures