ENT122.pdf

Asian Institute of Computer Studies (AICS)
1
MODULE 1
Lesson 1: Entrepreneurship and Entrepreneur …….…………....2-3
Lesson 2: Entrepreneurship in the Philippines ……….……. ….3
Lesson 3: Relevance of Entrepreneurship to Senior
High School students ….…………………………………………........................3-4
Activities and Assessment ………….………………………….…………….……6-7
MODULE 2
Lesson 1: Entrepreneurial Process ….……….…………………...….……8-9
Lesson 2: Characteristics of an Entrepreneur ….…….…....…9-10
Lesson 3: Characteristics of a Filipino Entrepreneur ….….10
Lesson 4: Entrepreneurial Decision Making.………………......…10-11
Activities and Assessment …………………….……………….……….…..…12-13
MODULE 3
Lesson 1: Sources of Ideas for Entrepreneurial
Ventures.………………………………………………………………………………….………14
Lesson 2: Methods for generating or testing
New ideas.….…………………………………………………………………………………...14-15
Lesson 3: Creativity: A new way of looking at things ….…15-16
Activities and Assessment …………….………….……………….……...…
MODULE 4
Lesson 1: Opportunity recognition process ……………………….19-20
Lesson 2: Opportunity Assessment ……….….……………………….20-21
Activities and Assessment ………….………………………………………….22-23
MODULE 5
Lesson 1: What is Business Plan? ………………….……………………………………. ….…….24
Lesson 2: Why write a Business Plan and Who reads it? ........……....……24-25
Lesson 3: How to present a Business Plan? ………………………………………….….26
Activities and Assessment.….………………………………….………………………………….……27-28
MODULE 6
Lesson 1: What is marketing Plan? ………,,,,,,,,,,,,,……………………….…......….……29-30
Lesson 2: What are the steps in preparing a Marketing Plan? ….…....30
Lesson 3: What must consider in Developing Marketing Strategy
and Action plan? …………………………………………………………………………………………………….30-31
Activities and Assessment …………………………………………….………………………….….…32-33
MODULE 7
Lesson 1: What is Operational Plan? .….………………………………………………......….34-36
Activities and Assessment …………………………………………………………….………….……37-38
3rd
Quarter Project …………………………………………………...……………………….………….….…39

2
What is Entrepreneurship?
Overview:
Some people make a big deal out of the fact that there are many successful
businesses founded by entrepreneurs who do not have a college degree. Often
cited are Apple Founder Steve Jobs, Microsoft founder Bill gates, Facebook co-
founder Mark Zuckerberg, and Uber co-founder Travis Kalanick. In the Philippines,
we have Philippine Airlines and Asia brewery owner Lucio Tan, National Bookstore
owner Socorro Ramos, Zest-O corporation President Alfredo Yao, and Mang Inasal
founder Edgar Sia II. Some of these individuals went to college but decided to drop
out after spotting a business opportunity. The others came from poor families, and
could not afford college education, but succeeded in growing their businesses,
nevertheless.
However, we must not lose sight of the fact that other equally successful
businesses were founded by individuals who earned their college degrees.
Examples are Jollibee founder Tony Tan Caktiong, Lamoiyan Corporation founder
Cecilio Pedro, and ECHOstore co-founder Pacita Juan. Clearly, educational
background, while important, is not the defining element for entrepreneurial
success. There are other factors that come into play.
In this module, we identify the different types of entrepreneurs. We also
describe the various stages that entrepreneurs undergo in implementing their
business plans, which usually start as mental constructs or intentions. In this light,
we identify the factors that influence entrepreneurial intentions. After this, we
discuss how entrepreneurs formulate their decisions based on three types of
mental processes. Finally, we examine the role of cognitive adaptability in
managing risks brought about by an uncertain and dynamic business environment.
Entrepreneurship and Entrepreneur
Entrepreneurship is...
• The act of creating a business or businesses while building and scaling it to
generate a profit.
• An important driver of economic growth and innovation.
• What people do to take their career and dreams into their hands and lead it
in the direction of their own choice.
• About building a life on your own terms. No bosses. No restricting schedules.
And no one holds you back.
An entrepreneur is...
• A person who sets up a business with the aim to make a profit and creates a
new business, bearing most of the risks and enjoying most of the rewards.
• The Term “entrepreneur” comes from the French word entreprendre which
means “to undertake”
• An innovator, a source of new ideas, goods, services, and business/or
procedures.
• Playing a key role in any economy, using the skills and initiative necessary to
anticipate needs and bring good new ideas to market.
Type of Entrepreneur by Joseph Schumpeter
1. Megaentrepreneurs – Individuals who are willing to absorb huge risks of
using enormous amounts of capital in their business ventures.
At the end of this module, you are expected to:
• Discuss the relevance of the course.
• Identify the different types of entrepreneurs.
• Explore job opportunities for Entrepreneurship as a career.
U N I T O N E
MODULE
1
Inclusive dates:

3
2. Microentrepreneurs – Individuals who are engaged in micro or small
businesses as an alternative as an alternative formal employment.
Understanding what an entrepreneur is can help more people recognize the
value they contribute to the world. Entrepreneurs take the idea and execute it
while entrepreneurship is about execution of ideas.
Entrepreneurship in the Philippines
The notion of the entrepreneur as simply one who forms and manages
business is apparent in government programs that attempt to develop small-scale
industries. In the Philippines, many entrepreneurial development-training
programs rest on such assumptions. But even without the presence of government
support, the statistics for the past fifty years or so on the number of business
establishments formed every year would generally show an increasing trend. They
were mostly in food processing, property development, and trade (including
shopping malls).
In 2005, the top 50 Philippine corporations in terms of sales could be
broken down into 22 private domestic firms, 23 foreign firms, and 5 government-
owned and/or controlled corporations (BizNews Asia 2007as cited by Batalla, V.,
2011). The 22 companies could be identified with 11 families and individuals,
mostly Filipinos of Chinese ethnic background. The 11 families and individuals were
The Zobel family (Ayala), The Lopez clan (ABS-CBN), Lucio Tan (Asia Brewery),
Henry Sy (SM), John Gokongwei (Cebu Pacific), Alfonso Yuchengco (Mapúa
Institute of Technology), Eduardo Cojuangco Jr. (San Miguel Corporation), Jose Yao
Campos (Unilab Group of Companies), George Ty (Metrobank), Mariano Que
(Mercury Drug), and Tony Tan-Caktiong (Jollibee).
Relevance of Entrepreneurship to SHS students
Importance of Entrepreneurship
1. Entrepreneurship generates new wealth in an economy.
2. Entrepreneurship decreases poverty.
3. It creates opportunities, ensures social justice, instills confidence and
1. stimulates the economy.
4. Entrepreneurship improves productivity
5. Entrepreneurs create jobs.
6. Entrepreneurs innovate.
7. Entrepreneurs create innovation and social change
8. Entrepreneurs give to society
Relevance of Entrepreneurship to SHS Students
1. To prepare students for livelihood even before college.
2. Entrepreneurship education aids students from all socioeconomic
backgrounds to think outside the box and nurture unconventional talents
and skills.
3. Entrepreneurship develops their initiative and helps them to be more
creative and self-confident in whatever they undertake and to act in a
socially responsible way.
4. It exposes students to numerous opportunities to learn how to think
critically and analyze the pieces on the board.
5. Being aware of all the important factors and seeing how they affect each
other is the foundation of a smart decision-making process.
6. Students must be exposed to real-world examples and learn from their
own experience.
7. Entrepreneurship education requires students to be innovative, creative,
and collaborative with others.
8. Entrepreneurship education provides budding entrepreneurs with the
skills and knowledge to come up with business ideas and develop their own
ventures.
Job Opportunities for Entrepreneurship as a Career
If you are an aspiring entrepreneur, there are different career paths you
can take to turn your dream into a reality. Which path you choose will depend on
your experience, skills, finances, and flexibility, as well as your goals for the future
(Doyle, A., 2020). Career opportunities you might pursue according to Michalowicz
(2011) as cited by Edralin, D. M., 2016):

4
Entrepreneurship Career
Opportunities for the Academic Track
Entrepreneurship Career
Opportunities for the TECHVOC Track
• Business Consultant
• Sales
• Research and Development
• Not-for-profit fundraiser
• Teacher
• Talent recruiter4
• Business reporter
• New venture creation
• Career in existing entrepreneurial
ventures
Fine Arts
• Artist
• Graphic Designer
• Photographer
• Art gallery manager
• Film director
Fashion Designer
• Designer wear production
• Fashion marketing, planning and
concept management
• Fashion media design management
• Fashion accessory design, quality
control and promotion brands
• Costume designer
• Fashion consultant and personal
stylist
• Technical designer and graphic
designer
• Fashion coordinator
Sports
• Health club manager
• Strength, wellness, or conditioning
coach
• Fitness program or event planning
manager
• Professional or amateur team
manager
• Sports facility manager
• Corporate fitness director
• Rehabilitation center director
• Nutrition center manager
Other TECHVOC Track
• Cook/Chef
• Automotive mechanic
• Electrician
• Technical support Associate
• Mechanical Technologist
Note: Most would-be entrepreneurs, however, remain self-employed, preferring
to be the boss.
Reasons why many would like to become an entrepreneur (www.scu.edu):
1. Achievement, Challenge, & Learning
2. Independence & Autonomy – you can set your own goals, pick their own
partners, and face the consequences of your decisions.
3. Income Security and Financial Success
4. Recognition and Status
5. Family
6. Dissatisfaction with Current Work Arrangements
7. Community and Social Motivation
Reference links:
Above Image retrieved from:
https://thefinancialexpress.com.bd/education/understanding-entrepreneurship-
1541654371
(www.reference.com)
(www.europeanentrepreneurship.com)
Batalla, V. (2011). Entrepreneurship and Philippine Development. Retrieved from:
https//www.academia.edu/26552052/Entrepreneurship_and Philippine_ Development

5
Hayes, A. (2020). Entrepreneur Retrieved from: https://www.investopedia.
com/terms/e/entrepreneur.asp
Entrepreneurship: Characteristics, Importance, Types, and Functions of Entrepreneurship,
Retrieved from: https://www.yourarticlelibrary.com/
What Is the Importance of Entrepreneurship? Retrieved from:
https://www.reference.com/business-finance/importance-entrepreneurship-
a80aee8f21d6b6c1
Why We Need to Study and Learn Entrepreneurship? Retrieved from:
https://www.europeanentrepreneurship.com/need-study-learn-entrepreneurship-
education/
Picture Analysis image retrieved from: https://images.app.goo.gl/ZN4XNyQEaDxz6aA76
Habaradas, R. B., Tullao Jr., T. S. (2017) Pathways to Entrepreneurship. Quezon City,
Phoenix Publishing house Inc

6
Important Reminders
• Tear this activity sheet and submit on the scheduled date along
with the other activity (ies) the instructor may have asked the students to
do on a separate paper.
• If you are sending something you’ve done online such as MS
presentation (s), pictures, pdfs and alike as an attachment, then you may send
them to my email at ____________________________________________
following this format: (SECTION_LASTNAME_FIRSTNAME_ACTIVITYNAME), or
send a digital copy from your flash drive together with this activity sheet.
ACTIVITY 1:
Picture Analysis
Analyze the picture below then answer the corresponding guide questions.
Write your answer on another set of paper.
Guide Question: What appropriate product and/or business that can be
conceptualized during this COVID -19 pandemic? Write as many in bullet form on
another set of paper.
ACTIVITY 2:
What Motivates Me to become an Entrepreneur
Using the table below, list down at least 5 sentences why you wanted to be an
entrepreneur someday.
The following motivates me to become an entrepreneur someday:
1.
2.
3.
4.
5.

7
MODULE 1: Assessment
Test I. Multiple Choice. Write the letter of your chosen answer on the space
provided.
______1. Who acts as a coordinating agent in a capitalist economy?
A. Manager C. Entrepreneur
B. Finance Officer D. Broker
______2. Which of the following is not a definition of Entrepreneurship?
A. It creates opportunities, ensures social justice, instills confidence, and
stimulates the economy.
B. It is an important part of the economic growth strategies of many local
and national governments around the world.
C. Refers to a person who sets up a business with the aim to make a profit.
D. The act of creating a business or businesses while building and scaling it
to generate a profit.
______3. Which of the following is a relevance of Entrepreneurship to SHS
Students?
A. It generates new wealth in an economy.
B. It aids students from all socioeconomic backgrounds to think outside the
box.
C. It creates opportunities and ensures social justice.
D. It creates job.
______4. Which statement is not correct about the status of entrepreneurship in
the Philippines?
A. The number of business establishments formed every year would
generally show an increasing trend.
B. N-entrepreneurs are people who can secure resources such as
technology and information to gain distinct, sustainable, competitive
advantages.
C. In 2005, the top 50 Philippine corporations in terms of sales could be
broken down into 25 private domestic firms, 20 foreign firms, and 5
government-owned and/or controlled corporations.
D. The 22 companies could be identified with 11 families and individuals,
mostly Filipinos of Chinese ethnic background.
______5. Which of the following words is not associated with entrepreneur?
A. innovative C. collaborative
B. impulsive D. Creative
Test II. Enumeration. Give what is asked based on the list below.
✓ Give at least 3 business resources
✓ Give at least 3 importance of Entrepreneurship to the economy
✓ Give at least 3 relevance of Entrepreneurship to you as a student
✓ Give at least 3 known families who owned Big Corporations here in the
Philippines
✓ Give at least 3 characteristics of Entrepreneur

8
What is Entrepreneurship?
Overview:
This question has been long debated with little agreement. However, as
cited by Longenecker, J.G., et.al. (2016), Stephen Spinelli and Robert Adams
described entrepreneurs as having and exhibiting “desirable and acquirable
attitudes and behaviors” such as commitment and determination, leadership,
opportunity obsession, risk-takers, motivation to excel, creativity, self-reliance, and
adaptability. According to (www. Ideas for leaders.com), competencies such as risk
seeking, assertiveness ad vision are considered typical of a successful
entrepreneur. But these as yardstick, it is wrongly concluded that only certain types
of people make good entrepreneurs or are capable pf worthwhile innovations.
Is there such a thing as a ‘natural-born entrepreneur’?
Accordingly, there is not. Specific techniques and habits must be practiced
and developed by all would-be entrepreneurs. Aside from business competencies,
entrepreneurs need interpersonal and self-leadership skills too; however, these
are often overlooked. Entrepreneurial behavior‟ can be learned and developed
The question is not who entrepreneurs are, but what they do, and more
important than business skills can be other competencies that provide a foundation
for those business skills.
Furthermore, according to www.ideasforleaders.com, there are three
levels of competencies, which all entrepreneurs need:
1. Personal competencies – These are your abilities to ground yourself so that
you are secure and self-assured in whatever situationyou may find yourself
Ex. creativity, determination, integrity, self-criticism.
2. Interpersonal competencies – These are your ability to lead, influence,
communicate, supervise, negotiate, and control people at all levels. It is
the ability to get along with people and motivate people to perform jobs.
Entrepreneurs must effectively manage people.
Ex. communication, engagement, delegation
3. Business competencies – These are set of abilities and knowledge that sets
a company apart from its competitors It also refers to the key
characteristics that successful entrepreneurs should have to be successful
Ex. business vision, financial management, networking
Entrepreneurial Process
It is important to formulate a strategy, which should include an articulation
of a plan and how this is going to be implemented. This entrepreneurial discipline
is often referred to as the entrepreneurial process, which involves several stages
from the awareness of an opportunity to the realization of a business idea. The
steps include the following:
Discovery – refers to the recognition of a business idea or the detection of
opportunities that could make money for the entrepreneur.
Development of concept – gives more details on how the general business idea can
be realized
• Describe the entrepreneurial process
• Describe the typical characteristics of Filipino entrepreneurs.
• Explain how entrepreneurs think and how they make decisions
• Explain the role of risks and failure in the entrepreneurial
process
U N I T O N E
MODULE
2
Inclusive dates:

9
Organizing resources – Describes the process of identifying, sourcing, and financing
human, non-human and other resources needed for the conduct of business.
Implementation – The process of carrying out the business plan. It covers several
activities, including the management of human, physical, technological, and
financial business of the business
Reaping the returns – pertains to the strategies related to the expansion of the
business firm. I t also covers mechanisms for addressing conditions in the business
environment that may affect the future of the firm.
Characteristics of an Entrepreneur
While the entrepreneurial process is important in the success of business
ventures, many entrepreneurship scholars have argued and presented evidence
that entrepreneurial traits are likewise important in the performance of a business
venture. In this section, we present the effects of these personality characteristics
on entrepreneurial performance based on two criteria. The first pertains to how
personal traits connect with the way entrepreneurs create ‘value-added’ and the
second involves the link between these personal qualities and the formation of
entrepreneurial intentions.
Entrepreneurial Traits and Creation of value added
Level of education – Studies have shown that entrepreneurs need some
formal education to be able to seize the opportunities presented by inventions,
innovations, and other technological developments. This may be true for
megaentrepreneurs since they need some degree of technological know-how to
understand the commercial potentials of modern inventions and innovations. In
developed countries, like the United States, some of the more successful
entrepreneurs are engineers who can recognize business opportunities being
offered by the latest developments in ICT. On the other hand, since
entrepreneurship in developing countries is more often being used as an
alternative to formal employment, many microentrepreneurs usually have limited
educational qualifications. In addition, engaging in small enterprises does not
require high level of schooling.
Employment Status – Individuals who become entrepreneurs in developed
countries are usually former employees of companies in the formal sector. The
choice of pursuing entrepreneurship can be viewed as a step in the entrepreneur’s
professional development.
Entrepreneur’s wealth – the wealth of the entrepreneur is also an
important factor. Usually megaentrepreneurs source their funds from their own
wealth and from their families. Some generate capital for their business from the
wealth they have accumulated from their past employment. They can also borrow
money from their wealthy parents.
Risk appetite – Important factor in undertaking any business venture. Risks
are associated with uncertainties in business operations. These uncertainties can
threaten the survival and stability of a business enterprise. Usually, entrepreneurs
are risk-takers. Otherwise they will not engage in business and will just be
comfortable with the certainties of being formally employed.
Entrepreneurial traits and Entrepreneurial Intentions
Every individual who sets up a business venture started out by intending
to do so. Thus, we examine entrepreneurial intentions, which are planned actions
formulated in the mind of individuals which are geared toward the objective of
establishing a business venture from potential business opportunities. The
question is “how are these intentions formulated?” Based on studies, there are two
broad set of factors that may influence the formation of entrepreneurial
intentions: internal and external factors.
Internal Factors – Include mainly the qualities of individuals such as:
a. Demographics
b. Personal Traits
c. Psychological characteristics
d. Individuals skills
e. Prior knowledge
f. Social Ties

10
External Factor
a. Environmental support
b. Environmental influence
Characteristics of Filipino Entrepreneurs
Like other entrepreneurs in developing countries, several Filipinos go into
entrepreneurship because they see it as an opportunity for income creation and
employment. Likewise, they get into business enterprises because of their
apparent capabilities to undertake entrepreneurial activities, the prestige
associated with entrepreneurship, and the positive exposure given by various
forms of media to successful entrepreneurs. However, this attitude is tempered by
a fear of business failure.
In terms of Gender, it is interesting to note that there are more females
than males that are engaged in the early stage entrepreneurial activities in the
Philippines. However, in the more advanced stages of entrepreneurial activity, the
gender proportion of entrepreneurs and managers become more even. This
implies that males tend to be more resilient in staying in business, as females
withdraw at the intermediate stage.
In terms of age, entrepreneurship in the country attracts more young
individuals. Given the extent of youth unemployment in the country,
entrepreneurship becomes a viable employment option for the young. This result
is consistent with the conclusion of entrepreneurship in other developing
countries.
In terms of Educational Attainment, almost half of entrepreneurs in the
early stage development have finished secondary schools. However, entrepreneurs
that owns firms at the mature age of entrepreneurship have higher levels of
education. This is aligned with empirical results in other countries showing that
mature firms and those that create higher ‘value-added’ have more educated
managers and entrepreneurs.
Majority of those engaged in early stage entrepreneurial activities in the
Philippines are in consumer services including retail, food, personal beauty care,
appliance and electronic repair, cleaning services, and laundry services. According
to the report, many of these establishments are operated within the households,
implying a limited scale of operation. Several Filipino entrepreneurs are also
engaged in manufacturing, extractive enterprises, and business services
(advertising, architecture, consultancy, microfinance, and others).
Entrepreneurial Decision Making
Critical Thinking – refers to the systematic and rational way of providing an
answer to a question. It also explains what is going on. In businesses, a critical
thinking is useful in explaining how a firm can survive and remain stable. Many
tools in business analysis make use of analytical thinking. For example, SWOT
(Strengths, weaknesses, opportunities, and threats) analysis.
Creative Thinking – refers to thought processes that bring about the
discovery of new ideas. Unlike critical thinking, it does not follow a systematic or
analytical process since it looks at things from different perspectives. Sometimes,
creative ideas start from a dream, an insight, or from mere observation.
Strategic thinking – involves thought processes that assess current
situation that can be useful in the formulation of plans. It is like critical thinking
since it uses an orderly and logical system in its assessment. But is also resembles
creative thinking in its growth and future orientation.
Risks, Cognitive Adaptability and Entrepreneurial Decisions
In the process of implementing a business plan, an entrepreneur will be
faced with numerous situations, challenges and opportunities that will require
flexibility and decision-making.
➢ Risks – described as uncertain situations and developments that can
increase the probability of loss or business failure.
✓ Internal risks – dangers coming from the management of
resources of a business enterprise.
✓ External Risks – Threats coming from various environments
outside the business firm.
• Risk Management – process of identifying, assessing, and responding to
these risks.
➢ Cognitive Adaptability – refers to the ability of individuals to be involved in
the process of producing several ways of decision-making based on the
identification and management of changes in their environment. It

11
requires qualities of flexibility, dynamism, and self-control on the part of
the entrepreneur.
Reference Links:
Above image retrieved from: https://images.app.goo.gl/RKDqbtfjGv77UAeJ6
(www.free-management-ebooks.com).
baseread.com).
(yourbusiness.azcentral.com).
(www.mustangbols.com).

12
Important Reminders
ACTIVITY 1:
Entrepreneurial Process
Imagine yourself having a business of your own. Identify the process you
used in setting – up your business by using the entrepreneurial process as a guide.
Discovery
Development of Concept
Organizing Resources
Implementation
Reaping the returns
ACTIVITY 2:
S.W.O.T. Analysis
Identify the Strengths, Weaknesses, Opportunities and Threats of your
chosen business.
Strengths
Weaknesses
Opportunities
Threats

13
Test I. Essay. In 3-7 sentences, Answer the questions below. Your output will be
graded based on this rubric:
5 – Excellent 4 – Good 3 – Adequate 2 – Marginal 1 – No credit /
unacceptable
Criteria 5 4 3 2 1
Quality of writing (Informative, well organized
etc.)
Grammar usage and Mechanics (spelling,
punctuations, grammatical errors)
Following the instructions.
Questions:
1. Would you rather be an entrepreneur or a manager in a big corporation?
Explain your answer.
2. Would you describe yourself primarily as a critical thinker, a creative
thinker, or a strategic thinker? Give specific examples that will support your
answer. Which of these thought processes, do you think, is most effective
in formulating entrepreneurial decisions?

14
Generating Ideas: Harnessing Logic and Creativity
Overview:
A plan to pursue a business usually come from a novel idea. This business
idea, in turn, is a product of various thinking processes, including critical thinking
and creative thinking. In this module, we explore various activities and examples of
how the use of logic ad systematic analysis- what we refer to as critical thinking –
can be means of generating idea for entrepreneurial ventures. Similarly,
nonsystematic, discontinuous, and lateral thinking – collectively known as creative
thinking – can also inspire individuals to introduce new products and services to
the market. Aside from generating ideas, creativity can also be used in creative
problem solving.
Sources of Ideas for Entrepreneurial Ventures
Several practicing entrepreneurs and business coaches have identified a
host of sources, from which we can find business ideas. These can be categorized
into four major sources.
a. From the existing product or services
b. From the process
c. From the person and from prior employment
d. From relations
Methods for generating or testing new Ideas
There are several methods of generating business ideas. We will classify
them into logical thinking and creative thinking.
Generating Business Ideas through Logical Thinking
Logical thinking – refers to the systematic and rational way of providing an
answer to a question. It is systematic since it follows steps in responding to an
inquiry. It is rational because it adheres to the rules of logic in connecting the
relationships of variables and making conclusions.
Statistical analysis – refers to a systematic analysis of data generated from
a survey of individuals.
• Market analysis – knowing the various factors that affect the
demand for a particular product or services.
• SWOT analysis
• Delphi Technique – systematic way of generating ideas from
selecting group of individuals using various rounds of consultation
or session.
Generating Ideas through Creative Thinking
Brainstorming – refers to an unstructured discussion of a group to elicit
ideas. Since this process is unstructured, the facilitator and participants should
entertain all ideas coming from the participants, even those that are illogical and
“out of this world.” After a fixed period of discussion, the various ideas are
processed and synthesized to come out with an answer to the question posed at
the start of the brainstorming session.
Problem inventory analysis – is like brainstorming. It uses the group
discussion method to elicit ideas from participants. It is different from the usual
brainstorming because it is directed to identifying all possible problems
• Identify the various sources of ideas for entrepreneurial ventures.
• Discuss alternative methods for generating ideas for a new venture
• Discuss emerging trends that could be the source of new venture ideas
• Explain the factors that contribute to creative thinking
• Explain the role of creativity in generating new venture ideas
• Utilize some techniques in creative problem solving
U N I T O N E
MODULE
3
Inclusive dates:

15
encountered with a specific product or service. After identifying all the possible
problems and issues with the product or service, the participants are tasked to give
alternative solutions to the problems.
Free association method – is another technique used in discovering
business ideas. It is a method that has been used in psychology to elicit the
unconscious thoughts of individuals by expressing their thoughts associated with
words and ideas given by the therapist. It has several applications in different fields,
including business, since it can draw from participants ideas that are associated or
linked with a given idea or word. From the process of association, the group can
come out with an idea or set of ideas that can be the basis for business ventures.
• Checklist method – listing all possibilities that ideas can be connected
to, reprocessed, and associated with. For example, Alex Osborn’s
SCAMPER (Substitute, Combine, Adapt, Magnify, put to other use,
Eliminate, and Rearrange)
Generating Ideas through Trends in Business Environment
✓ Bargaining powers of Competitors and Suppliers
✓ Major shifts in government involvement in business
✓ Sociodemographic changes
✓ Technological developments
Creativity: A new way of looking at things
Creativity can be described as the capacity of individuals to originate new
ideas from ideas the individual has been previously expose. The birth of a new idea
is done by connecting an idea with other ideas and transforming these connections.
There are many ways of connecting these ideas. It can be done by comparing them,
linking them, looking at similarities and differences and looking for trends. In the
checklist method mentioned above, there are several ideas that can emerge from
a single idea. For example, a simple product like pan de sal can be replaced with
pan de leche or pan de lemon. It can also be mixed with other ingredients like pan
de coco and toasted siopao.
Many scholars, psychologists, and business coaches have been telling us
that creativity can be learned and develop. You must be keen observant of
everything. Look at ways on how to something can be improved or altered. Connect
your ideas with other observations you have made before.
Factors that influence creativity
A. Problem Solving Factors – an individual who is not satisfied with existing
products and services may think of creative ideas to improve them or
simply differentiate these products and services
B. Motivational Factors – a highly motivated individuals are willing to do
something to address the dissatisfaction, they plan and more importantly
is willing to take the risks.
C. Situational Factors – A creative person is an action person since they know
how to implement their plan. Creativity surfaces when the eagerness to
implement a plan is tempered by ability of an individual to convince others
to cooperate with them in implementing the plan.
D. Organizational Factors – Includes among others, management support, risk
taking incentives, flexible rules, degrees of freedom and positive
evaluation. An organization with foresight and that is forward looking can
attract creative individuals since it has an appetite for risks than a company
that emphasizes short-term profits.
Creative Problem solving
Creative Problem Solving (CPS) is a procedure of answering a problem with
mechanisms and techniques incorporating creativity. Scientific method is also a
procedure in answering a problem with the use of rational thinking. However, the
solution under CPS may not be as clear cut as in solving problem using scientific
method.
The following six steps are followed in Osborn-Parnes model. They look
very simple and easy to do, but each stage requires various creative processes
1. Setting the objective – This involves the identification of an objective
that an individual wishes to achieve. This stage can become
cumbersome since the individual has to differentiate an objective from

16
a variety of goals, challenges, issues, and problems. Such
differentiation may involve creative processes.
2. Revisiting the objective – This stage involves the search for studies,
reports, analyses, and papers related to the objective set.
3. Identifying the problem – Based on the objective set and the review of
related studies, the individual has a clearer view in what problem to
pursue. This process as mentioned earlier may involve divergent
thinking processes in seeking the possible issues, challenges, problems
that may emerge from the objective set.
4. Looking for a solution – Once the problem has been identified, another
series of divergent thinking of generating ideas for the solution of the
problem is needed.
5. Selecting a solution – Once enough options are given from the
divergent thinking process, a convergent evaluation process of
weighing the significance, relevance, and feasibility of these options is
undertaken
6. Accepting the solution – In our chosen problem, we have selected a
solution.
Reference Links:
Above image retrieved from: https://images.app.goo.gl/K6zaemQFQeMTk6L79
https://www.mindtools.com/pages/article/newCT_02.htm

17
Important Reminders
ACTIVITY 1:
SCAMPER
In this activity you must come up with new ideas while trying to develop or
improve a product or service using the SCAMPER technique. Your output will be
unacceptable
Criteria 5 4 3 2 1
Organization (Different relationships are identified and
organized)
Information (Accuracy of given information)
Creativity
Following the instruction of the activity.

18
unacceptable
Criteria 5 4 3 2 1
etc.)
Questions:
According to the confluence approach, one of the factors that influence creativity
is an environment that supports creative ideas. Do you think your school provides
an atmosphere conductive for creative thinking among its students? Why or why
not?

19
Recognizing, Assessing, and Exploiting Opportunities
Overview:
Beyond knowing how entrepreneurial intentions and ideas are made, there
is a need to recognize and assess these intentions and ideas as business
opportunities. In this module we will discuss the various stages in recognizing and
assessing opportunities and how these opportunities and how these opportunities
are translated into entrepreneurial ventures. For these opportunities to be realized
as business ventures, the individual needs to commit resources and should have to
capacity to absorb the uncertainties of any business undertaking.
Opportunity recognition Process
Before we proceed with the process of recognizing opportunities for
entrepreneurial ventures, we need to define the concept of opportunity. According
to Cambridge Dictionary, an opportunity is “a situation or occasion that makes it
possible to do something that you want to do.” These are there elements in this
simple definition. First, youwant to do something. In this case you want to establish
your own business enterprise. Second, there are conditions for the realization of
the objective. Third, you must make decisions or act on these, conditions to realize
your objective.
Opportunity recognition often entails phases that potential entrepreneurs
take before introducing a product or service to the market.
Five stages of opportunity recognition according to Hills, Shrader and Lumpkin.
✓ Precondition – A preparatory stage, during which the individuals assesses
his knowledge of the market. His prior knowledge of the market is
extensively shaped by his educational background. Aside market is
extensively shaped by his educational background. Aside from formal
training, personal experiences including travel, and previous employment
can also provide the individual with valuable information on the market
that he wants to enter
✓ Conception – This is the gestation phase, during which entrepreneurial
intentions and ideas are generated, using logic, creative thinking, or both.
As discussed previously, creativity is the capacity of the mind to reprocess
and recreate new ideas by connecting ideas from existing products or
services. For example, connecting ideas on the various ways of preparing
bread can lead to a creative idea.
✓ Visioning – this third stage provides the individual a hunch that can serves
as an opportunity for business. This comes about as ideas become clearer
and how the logic of connections leads the individual to a new idea. In our
previous example on connecting ideas, the preparation of bread can lead
us to an idea of toasted siopao, which takes off from the classic steamed
siopao.
✓ Assessment – This stage involves the evaluation on whether the idea can
be realized or not. Aside from the resources needed and technology to be
used, the paramount question to the individual is whether the idea can
really be actualized. In our stated example, the relevant question at this
stage is whether we can really toast siopao?
• Explain the process of recognizing opportunities
• Explain the important factor in opportunity recognition
• Create an opportunity assessment plan
• Discuss the different pathways to seizing opportunities
• Explain the product planning and development process
U N I T O N E
MODULE
4
Inclusive dates:

20
✓ Realization – The last phase suggests the production of a prototype. This is
the stage when the mental construct or idea is now felt in its tangible or
physical form. Thus, the idea of toasted siopao is produced by baking the
dough with fillings instead of steaming the traditional siopao.
Factors in opportunity recognition
A framework on recognizing opportunities crafted by Hisrich, Peters, and
Shepherd (2010).
➢ Market Awareness – refers to personal exposure to market and its
components including customers and suppliers.
➢ Entrepreneurial Readiness (entrepreneurial alertness) – refers to the
variety of features of an individual to start a business venture. It covers all
types of resources that the individual possesses including financial,
physical, and human resources.
➢ Connections (networks) – Business opportunity recognition is heightened
when the individual has a diversity of networks.
Opportunity Assessment
Once an idea has been generated and an opportunity has been recognized
from it, there is need to assess whether this opportunity is feasible to implement.
Opportunity assessment refers to the process of evaluating the likelihood that the
opportunity can be realized.
➢ Product or Service – What is the unique feature of the product or service?
Why will the consumer purchase this commodity? What need or want is
the product or service trying to fill? What is the competitive edge of this
commodity compared with existing products or services?
➢ Market Opportunity – Is it easy to enter the market? If there are barriers
to entry, can they be overcome/ How strong is the bargaining power of
existing players in the market? How different is the product or service that
you want to introduce compared to the existing products and services in
the market? What segment of the market is your product or service
targeting?
➢ Costing and Pricing – The price of a product or service would depend on
the cost of raw materials and other factors of production.
➢ Profitability – Primary motivation of venturing into a business is to earn
profit. Thus, a non-profitable business enterprise, however creative the
busines idea is, is not worth pursuing. It is Based on how the market will
receive your product and cost of producing it.
➢ Resource Requirements – There are two types of inputs used in production
(a) Intermediate inputs, also called raw materials that need further
processing and (b) factor inputs, also called the processing inputs which
include labor, capital, and technology.
➢ Risks – These are uncertain situations that can increase the probability of
loss or failure of a busines venture. Risk can be from within (Internal Risks),
which emanate from the management of resources and from the outside
(External Risks), which arise from various environments affecting business.
➢ Entrepreneurial Commitment – Commitment of the individual to pursue
the realization of its business idea. This may include the motivations of the
individual, skills, experience, resources, and the amount of time he can
devote in the operation of the business.
Opportunity Pathways
Once the opportunity is already identified, the individual can subject it to
an assessment as described above, proceed with its implementation, or put the
business idea on hold. If the decision is to proceed, the individual has two options
to follow or pathways in transforming opportunity into a business venture.
These two are called:
1. Rational approach – also called traditional approach. It uses systematic
procedures in proceeding with the implementation of a business
opportunity.

21
2. Intuitive approach – starts with the recognition of an opportunity and
proceeds directly to the grabbing of the opportunity after sensing that it
can be done.
Product planning and development process
This section summarizes the development process of a product from
inception, introduction to the market, and final decline. Hisrich, Peter and
Shepherd (2010), identified the various stages that a product or service undergo in
its product life. It takes two phases, pre-commercialization phase, and
commercialization phase.
Pre-commercialization phase
➢ Idea stage – refers to the formation of business ideas
➢ Concept stage – refinement of ideas and visualization of an idea that can
serve as business opportunity
➢ Product development stage – production of prototype
➢ Test marketing stage – evaluation and feedback from potential customers
Commercialization phase
➢ Introduction – The product is formally introduced in the market.
➢ Growth – The is recognized by the market
➢ Maturity – The product is widely accepted with the emergence of brand
loyalty and patronage from its target market.
➢ Decline – The product has may start to lose its market power.
Reference Links:
Above image retrieved from: https://images.app.goo.gl/Wypw4SpgtKD65m4a6

22
Important Reminders
ACTIVITY 1:
Product planning and development process
Imagine yourself having a business of your own. Identify your business’
product planning and development process
1.1 Pre-commercialization phase
Idea Stage
Concept Stage
Product Development Stage
Test Marketing Stage
1.2 Commercialization stage
Introduction
Growth
Maturity
Decline

23
Test I. Matching Type. Column A contains list of products and column B contains
the list of services. Match as to which service in Column B is related to the product
in Column A. Write the letter of your answer in the space provided.
Answer Column A Column B
1. Car A. Usability and Durability
2. Xerox Machine B. Repairs and Maintenance
3. Smart Phone C. Leasing or pay per copy
4. Credit Car D. Entertainment
5. Organic products E. Consistent Quality
6. Television F. Bills payment
7. Accessories G. Healthy Lifestyle
8. Books H. Boost Immune System
9. Vitamins I. Accuracy of information
10. Basic goods J. Fashionable Design

24
The Business Plan
Overview:
After recognizing and assessing opportunities, the entrepreneur must
formalize his/her attempt to exploit these opportunities in the form of a business
plan. In this module, we emphasize the importance of a business plan for a variety
of users. We then proceed to describe the major sections of the busines plan after
identifying the information needed for each section. We ed by providing guidelines
on how to preset a business plan to relevant stakeholders.
What is a Business Plan?
Prepared by the entrepreneur, a business plan is a document that
describes the various external and internal elements involved in starting a business
or in expanding an existing venture, amidst a dynamic business environment.
During the first few years of business operations, the business plan serves as a
guide for short-term and medium-term decision-making and managerial action.
Like a road map, it directs the entrepreneur to his desired destination. It answers
the following questions: Where am I now? Where am I going? How will I get there?
Why write a Business Plan and who read it?
Business plans are important because of the following reasons
✓ It helps determine whether proposed or existing business venture is viable
given its target market
✓ It guides the entrepreneur in mobilizing the resources needed by the
business
✓ It serves as a tool in helping get financing for the business
The business plan may be read by different people, including employees, suppliers,
customers, bankers, and potential investors. Therefore, the business plan must be
written to meet the information needs of these different stakeholders.
User of Business Plan Why the business plan is important to
this user
Entrepreneur • Serves as a road map for managing
the business
• Identifies the resources needed to
operate and grow the business
• Allows the entrepreneur to
anticipate potential business risks
Lender • Allows the lender to assess whether
the entrepreneur will be able to
meet debt and interest and
payments
• Provides information about
collateral or tangible assets that can
be secured for the loan
U N I T O N E
MODULE
5
Inclusive dates:
• Define what a business plan is
• Explain why business plans are important to its users.
• Identify the information needed in preparing a business plan
• Describe the major sections of a business plan.
• Explain why some business plan fails.

25
• 4 C’s of credit: Character, cash flow,
collateral, and Equity contribution.
Investor • Allows the investor to gauge
whether projected returns are
acceptable
• Provides information about the
character of the entrepreneur and
about the capacity of the venture’s
management team
What information is needed for the major sections of the
Business Plan?
Preparing a business plan could take much time and effort. The process
would be easier, though, if the entrepreneur knows where to get the information
needed for the business plan’s major sections.
Market Information Needs Operations Information Needs Financial Information Needs
• General environmental
trends
• Specific industry trends
• Local market
conditions
• Market potential
• Demographic and/or
psychographic profile
of target market
• Location
• Manufacturing or
service operations
• Equipment and/or
furniture required
• Space requirements
• Labor requirements
• Raw materials needed
and potential suppliers
• Utilities
• Rental rates
• Cost of equipment
• Cost of utilities
• Personnel costs
• Cost of insurance
• Registration and
license fees
Major sections of a Business Plan
Major sections Typical content
Introductory page • Business name and address
• Names and addresses of the
business owners/entrepreneurs
• Nature of the business
• Statement of financing needed
• Statement of confidentiality of the
report (optional)
Executive summary • Highlights of the business plan
summarized in two or three pages
Environmental and Industry analysis • Conditions of the general
environment (i.e., sociocultural,
technological, economic, and
politico-legal conditions)
• Conditions of the specific
environment (i.e., supply and
demand conditions, competition)
Description of the business • Products and/or services
• Size of business
• Mission statement and core values
• Location of the business and its
major physical assets
• Background of the business owners/
entrepreneurs
Production plan • Manufacturing process
• Physical plant
• Machinery and equipment
• Suppliers of raw materials
• Future capital equipment needs
Operations plan • Description of the company’s
operations
• Flow of orders for goods and services
Marketing plan • Pricing

26
• Distribution
• Promotion
• Sales forecasts
Organizational plan • Form of ownership
• Principal shareholders or partners
• Organizational chart/lines of
authority
• Background of the management
team
• Roles and responsibilities of
management
Financial plan • Assumptions
• Pro forma balance sheet
• Pro forma income statement
• Cash flow projections
• Sources and uses of funds
• Breakeven analysis
Assessment of risk • Potential risks – internal and
external
• Strategies for preventing or
minimizing risks
• Response to risks should they occur
Timetable/ Milestones • Formal registration of the business
• Completion of product or services
design
• Completion of prototypes
• Hiring of initial personnel
• Reaching agreements with suppliers
and distributors
• Actual production
• Initial orders, sales, and deliveries
Appendices • Market research data
• Detailed financial projections
• Curriculum vitae of the management
team
• Price lists from suppliers
• Profile of competitors
How to present a Business Plan
Writing the business plan is only the first step in getting its reader to act
favorably. A well-written business plan might make a potential investor or lender
more inclined to provide financing for the business, but an effective oral
presentation is essential in closing the deal. Some guidelines that will help the
entrepreneur when making the presentation are as follows:
✓ Tell a compelling story
✓ Exhibit confidence and professionalism
✓ Cover the basics
✓ Adopt a cooperative attitude when answering questions
Reference Links:
Above image retrieved from: https://www.wmky.org/post/entrepreneurs-encouraged-
write-business-plan
https://psa.gov.ph

27
Important Reminders
ACTIVITY 1:
Major Sections of Business Plan
Identify the major sections of a business plan based on the given
statements.
_______________1. For manufacturing business, this section describes the flow of
goods and services from production to the customer. For Service business, this
section must describe the procedures in completing a business transaction.
_______________2. This section provides documentation of the venture’s form of
ownership.
_______________3. Prepared after the total plan has been written, must stimulate
the interest of its reader, especially if he or she is a potential investor.
_______________4. This section is the venture’s mission statement, which could
serve as a guide in decision making.
_______________5. This section determines the investment that must be poured
into the business and indicates whether the business is an economically viable
undertaking.
_______________6. This cover page provides a summary of the business plan’s
content.
_______________7. Ensures that the main body of the business plan is concise
enough to include only the most essential information, several items could instead
be appended to the document.
_______________8. This section describes the target market for the new product
or services.
_______________9. It describes the complete manufacturing process.
_______________10. Section that discusses the risk that might prevent the
business from achieving its objectives.

28
unacceptable
Criteria 5 4 3 2 1
etc.)
Questions:
1. Given the uncertainty and dynamic nature of the business environment, is
a business plan necessary? Cite the reasons for your answer.
2. Why is it important for start-up businesses to come up with monthly cash
flow projections, especially during the first year?

29
The Marketing Plan
Overview:
In this module, we look more closely at the marketing plan and spell out
the steps that must be taken in preparing it. We also examine the components of
the marketing mix and discuss what must be considered in developing a marketing
strategy and its accompanying action plan.
What is a Marketing Plan?
A marketing plan is a document containing the marketing objectives,
marketing strategies, and the activities that will be undertaken to execute these
strategies. The plan must consider the overall goals of enterprise, which must take
precedence over the specific marketing objectives.
It must also be based on valid assumptions about the financial resources,
physical resources, and human resources that will be available to the business
venture. Thus, planning for an aggressive advertising campaign at the early stages
of the venture might not necessarily serve the interest of the business that has
scarce resources.
Just like any plan, the marketing plan must have specific and measurable
objectives that will allow the entrepreneur to monitor performance ad control
business activities. It must also be able to anticipate certain scenarios that will
allow the entrepreneur to adjust his strategies accordingly.
Competitor Analysis
The marketing strategies that the entrepreneur will execute must be based
on an intelligent assessment of the business environment.
A. Pricing strategies – must consider the purchasing power of the customers
as well as the price levels of similar products available in the market.
B. Distribution strategies – must consider transportation costs or the costs of
operating a retail outlet.
a) 4P’s of marketing – Product, Price, Place (distribution), and
promotion (also known as the marketing mix)
C. Competitor’s Strategies – an important component of the industry analysis
is a documentation of the current strategies of competitors. The
entrepreneur can get hold of the company catalogs, flyers, and brochure,
reading newspaper and magazines articles, and interviewing customers,
suppliers, and distributors.
Comparison of the Marketing Strategies of Major Competitors
Company
A
Company
B
Company
C
Your
Company
Target Market
Product/ Service strategies
Pricing strategies
Distribution strategies
Promotion strategies
U N I T O N E
MODULE
6
Inclusive dates:
• Define what a marketing plan is
• Explain the relevance of the industry analysis to the market
planning process
• Identify the steps in preparing the marketing plan
• Determine the elements that must be considered on developing
strategy for each component of the marketing mix.

30
Once the strategies have been summarized, the entrepreneur can now proceed to
identify his competitors’ strengths (or benchmarks that must be met or surpassed)
and weaknesses (or gaps in the execution of the strategy).
The MADI questions of Dr. Ned Roberto provides a useful way of identifying unmet
or unsatisfied customer needs and expectations. This will require the entrepreneur
to interview customers or to conduct a focus group discussion (FGD) to determine
the following about products or services that now exist in the market:
➢ M – What is Missing?
➢ A – What is Annoying?
➢ D – What is Disappointing?
➢ I – What is Irritating?
Strengths and Weaknesses of Major Competitors
Company A Company B Company C
Strengths
(Benchmarks)
Weaknesses
(Execution
gaps)
What are The Steps in Preparing a Market Plan?
Preparing a market plan involves the following steps:
✓ Assessing the business situation
✓ Defining the target market
Step 1: decide what a general market or industry you wish to enter
Step 2: Divide the market into smaller groups based on customer
characteristics
a. Demographics
b. Psychographic
c. geographic
✓ Setting the marketing goals and objectives
Marketing objectives must be S – Specific, M – Measurable,
A – Attainable, R – Realistic, and T – Time-bound
✓ Developing marketing strategy and action programs
➢ Product – must include a description of the product or service that
will be offered by the business.
➢ Pricing
o Cost-based pricing – calculating both variable cost (direct
labor, raw material, commission given to a salesperson, or
the cost of packaging) and fixed cost (cost of things such
as facilities and equipment that do not change with the
number of units that are produced.
o Competition-based pricing – considering the existing
products or services in the market is a must.
o Value-based pricing – awareness of the value attached by
customers to products or services.
➢ Place
o Channel directness -
o Customer’s convenience
o Cost effectiveness
➢ Promotion – It is essential for the entrepreneur to make his
product known to his potential consumers. He can do this by
utilizing traditional media such as print, radio, and television, or by
tapping new media such as the internet.
✓ Preparing the budget for the action plan

31
Extended Marketing Mix
The marketing mix is the combination of elements used by a business to
enable it to meet the needs and expectations of customers.
It is called a marketing mix because each element of the marketing mix is
related to the others. The challenge for marketing is to ensure that the elements
of the mix work together to achieve the marketing objectives. Traditionally the
marketing mix has been taken to comprise four elements: (product, price,
promotion, and place).
However, in recent years it has become more common to add three new
elements to the traditional marketing mix, making a combined 7p’s. This is the so-
called extended marketing mix.
The 7p's extended marketing mix therefore comprises the following elements:
✓ Product: the good or service that the customer buys
✓ Price: how much the customer pays for the product
✓ Place: how the product is distributed to the customer
✓ Promotion: how the customer is found & persuaded to buy
✓ People: the people who contact customers in delivering the product
✓ Process: the systems and processes that deliver a product to a customer
✓ Physical: the elements of the physical environment the customer
experiences
Reference Links:
https://www.tradepressservices.com/marketing-plan-delivering-results/
https://www.techasia.com10-popularecommerce-sitesphilippines
https://www.tutor2u.net/business/reference/the-extended-marketing-mix-
7ps#:~:text=The%20extended%20marketing%20mix%20(7P's,%3B%20people%3B%20proc
ess%20and%20physical.&text=This%20is%20the%20so%2Dcalled%20extended%20market
ing%20mix.
https://blog.hurree.co/blog/marketing-mix-7ps
www.plushandplay.com

32
Important Reminders
ACTIVITY 1:
Preparing Marketing Plan
Prepare a sample marketing plan for a product idea. Your output will be graded
based on this rubric:
unacceptable
Criteria 10 8 5 2 1
Content Quality (Informative, well organized
etc.)
Accuracy of facts

33
unacceptable
Criteria 5 4 3 2 1
etc.)
Questions:
1. Why is it important to define the target market when preparing a
marketing plan?
2. What is the difference between cost-based pricing and value-
based pricing? Which pricing scheme is more advantageous for the
entrepreneur? Explain your answer.

34
The Organizational Plan
Overview:
After the entrepreneur identifies the needs of his target market and spells
out his strategy and action plan, he can now proceed to the legal and organizational
aspects of setting up the business. In this module, we discuss the advantages and
disadvantages of the different forms of ownership. We also emphasize the need to
highlight the qualifications, skills, and business experience of the proposed
business’s principal owners and its management team. We also touch on the
important role played by business advisers, who could fill in some competency gaps
of a new business.
What is an Organizational Plan?
The organizational plan is the section of the business plan that identifies
the form of ownership the business venture will take. It provides background of the
management team; describes the organizational structure, including the
management team’s roles, responsibilities, and reporting relationships; outlines
the planning, decision making, monitoring, and evaluation processes; and spells
out the role of the board of advisers, among others. This section of the business
plan must provide sufficient information to assure potential investor and creditors
that the money they are asked to pour into the business will be in good hands.
Forms of Ownership
One of the important decisions an entrepreneur must make is the form of
ownership the business will take. He could choose form any of the three basic legal
forms ownership.
Legal forms of Business Ownership
Things to
consider
Sole proprietorship Partnership Corporation
Ownership One person No limit on number of
partners
No limit on number
of stockholders
Cost and ease
of starting the
business
Low; easy Low; relatively easy High; more difficult
Liability of the
owners
Unlimited, risk
shouldered by
owner alone
Unlimited for the
general partner;
limited for limited
partners
Stockholders
typically not liable
beyond their
investment
Share of profits
and losses
Owners receives all
the profits and all
the losses
Depends on partners’
investments and on
agreement of partners
Stockholders can
share in profits
through dividends
Management
control
Owner makes all
decisions
General partners have
equal control, and
majority rules
Majority
stockholders have
control form a legal
standpoint
Ability to raise
capital
Limited Moderate High
Transferability
of ownership
Fully transferable Typically requires
consent of partners
Stockholders can sell
or buy stock at will
U N I T O N E
MODULE
7
Inclusive dates:
• Define what an organizational plan is
• Explain the advantages and disadvantages of the different legal
forms of ownership
• Discuss the organizational structure of the business
• Explain how the board of advisers can provide support to the
management team of a new business venture

35
Continuity of
business
Owner’s death
dissolves the
business
Death or retirement of
the general partner
dissolve the
partnership
Death or withdrawal
of owner(s) does not
affect he business’s
legal existence
Organization structure
This section of the organizational plan will show the reader of the business
plan who the principal owners of the business are, who constitutes the
management team, and who provides valuable advice to the business owners
and/or management team. In a small entrepreneurial venture, the organization
structure could be as simple as the owner-manager being at the helm of enterprise
with a few individuals directly reporting him. As the workload increases, though,
the business will need additional employees, with more defined roles and
responsibilities.
Business Owners
One section of the organization plan could be a listing of the business
owners and their qualification. Their previous entrepreneurial experience, if any,
and the extent of their investment in the business could also signal who among
them would have a strong influence in determining the general directions the
business will take.
Showing detail about the business owner
Name of major
owners (partners
or shareholders)
Qualifications Previous
Entrepreneurial
Experience
Capital
Contribution
The Management Team
If the enterprise has a management team that is largely distinct from the
business owners, it is best to highlight their qualification, skills and managerial
experience, especially in relation to the position, for which they will be handling.
About the Management Team
Name of the
Manager
Job title, duties,
and
Responsibilities
Qualifications Managerial
Experience

36
Business Advisers
It is rare for a new (or proposed) venture to have all the expertise it needs
to grow the business at the onset. It is best to be candid about this. The business
owners, however, reinforce their management team by having a board of advisers
or consultant – a group of individuals that the company invites to provide their
inputs and insights on how to run the business.

37
Important Reminders
ACTIVITY 1:
Creating Organizational Plan
Prepare a sample of your Business’ Organizational plan. Your output will be graded
based on this rubric:
unacceptable
Criteria 10 8 5 2 1
Content Quality (Informative, well organized
etc.)
Accuracy of facts

38
unacceptable
Criteria 5 4 3 2 1
etc.)
Questions:
1. What are the advantages and disadvantages of each form of business
ownership?
2. How can a young entrepreneur compete with older, more
experienced entrepreneurs? Is it enough to have a novel business
idea? Explain your answer.

39
3r
Quarter Project
GENERAL PROJECT INSTRUCTIONS
In 1-6 members, create a product and introduce it to the market through Online
Selling. While doing this activity, gather the necessary information needed in
making a Business plan.

40

ENT122.pdf

Recommended

Recommended

More Related Content

Similar to ENT122.pdf

Similar to ENT122.pdf (20)

More from mskriz

More from mskriz (15)

Recently uploaded

Recently uploaded (20)

ENT122.pdf