The document discusses the entrepreneurial process and strategic planning for small businesses. It covers 4 phases of entrepreneurship: identifying opportunities, developing a business plan, determining required resources, and implementing the business plan. Strategic planning involves determining objectives, adopting courses of action to achieve goals, and deploying resources. The document provides details on developing strategies using tools like SWOT analysis and implementing tactical plans. It also discusses strategies for small businesses like flexibility and prioritizing effectiveness over efficiency due to their resource constraints.

1. THE
ENTREPRENEURIAL
PROCESS

2. Definition:
- The process of pursuing a new
venture, whether it be new
products into existing markets,
existing products into new
markets, and/or the creation of
a new organization.

3. 4 DISTINCT PHASES OF THE
ENTREPRENEURIAL
PROCESS:
1.Identification and evaluation of
the opportunity
2. Development of the business
plan
3.Determination of the required
resources

9. A new business idea may mean that
products or services may be improved in
terms of :
1.Performance - like the chair that can carry
more weight;
2.Maintenance cost - like the car battery
that requires less servicing that
competing brands;
3. Acquisition cost - like the latest low
priced model of a certain brand of
cellphone compared to competition;

12. SOUND
BUSINESS
IDEA
NEW
VENTURE
ESTABLISHED
BUSINESS
SUCCESS IN
COMPETITION
SUCCESSFUL
MARKET
ENTRY

13. BUSINESS IDEAS DIFFER IN FORM:
1.An old type of business can be
professionalized
2. A standard product can be customized
3. New technology can be adapted to
manufacture an old product.
4. Imported products can be replaced by
local products
5. Business operations can be
internationalized.

14. Preparation
of the list of
Business Idea
SCREENING
FINAL
SELECTION
PROCEDURE IN DETERMINING
THE BEST BUSINESS IDEA

15. METHODS OF SEARCHING
FOR IDEAS
1.UNANTICIPATED MEANS
- It is when the entrepreneur finds business
ideas without serious effort
- It includes:
a.The person’s work
b.The person’s hobbies
c.The person’s acquaintances
d.A chance event encountered by the
person

19. 2. DELIBERATE SEARCH
-this type of idea generation takes the
form of using search questions and idea
prompting
SEARCH QUESTIONS- when questions are
used to draw out specific answers.
Ex:
1.How can this product be made differently?
2.What will motivate the consumers to buy my
product instead of the competitor’s product?

20. IDEA PROMPTING- encounters with someone
else’s idea, or a customer request, or some
other event may provide cues leading to
business ideas.

21. SCREENING GENERATED
IDEAS
Criteria for Screening:
1.MARKET FEASIBILITY
- Ideas must pass the test of market
feasibility. This means that there
must be some positive indication
about the following:

22. a.Stable and sufficient demand –
demand should remain constant; it
must also be large enough to
justify the investments that will be
needed by the venture.
b.Competitive Strength-
determined in terms of product
offerings, price, distribution
methods, and others.

29. 1.Status quo- means all ideas listed
passed the adapted criteria
2.A shorter list- means some of
the ideas generated were
eliminated.
3.Zero listing- means all business
ideas generated and listed were
eliminated.

34. STRATEGIC
PLANNING FOR
SMALL BUSINESS

35. Strategic Planning
- Refers to the process of
determining the primary
objectives of the
entrepreneurship and then
adopting courses of action and
allocating resources to achieve

36. 3 DISTINCT STEPS IN STRATEGIC
PLANNING
1.Determination of Objectives
- The objectives of the firm are important
components of the firm’s strategic
planning activities.
MISSION STATEMENT – this term refers to
the basic description of the fundamental
nature, rationale and direction of the
firm.

37. The Mission Statement consists of
three concerns:
a. how the entrepreneur intends
to use his resources
b. how the entrepreneur expects
to relate to the ever –
changing environment
c. the kinds of values the
entrepreneur intends to offer to
his customer

40. Strategic Objectives
- Refers to specific performance
targets that the entrepreneurship
hopes to accomplish
- Define, in specific terms, how the
firm’s mission will be realized.

41. Examples:
1.Expand production capacity by 50%
within 2 years
2.Increase sales by 50% by the year
2019
3.Increase market share by 10% every 2
years
4.Increase the number of outlets by
three within 3 years

42. 2. Adoption of Course of
Action
-a strategy indicates how
the entrepreneur will
attempt to accomplish
the goals with the
resources available.

43. Ex.
1. Establish branches in
strategic locations
2. Design a system that will
attract persons with high
potentials to work with the
company

44. Tools in developing realistic
strategies:
1.SWOT Analysis
- An organized method of assessing
a firm’s strengths and weaknesses
and the opportunities and threats
in the external environment that
confront or will confront the firm.

45. STRENGTH – refers to the skill,
competence, a valuable organizational
resource or competitive capability.
Ex:
The strategic location of the firm’s sales
offices
The firm’s exclusive supply contract with
a reliable manufacturer

46. WEAKNESS- refers to something a
company lacks or does poorly (compared
with others) or a condition that puts it at
a disadvantage
- It may or may not make a company
vulnerable to competition.
Ex:
Lack of qualified personnel
Poor design of products
Low employee morale

47. OPPORTUNITY- refers to the chance
offered by the external environment to
improve the firm’s situation significantly.
Ex:
For a motorcycle trading firm: the
escalating cost of fuel
For a small restaurant: the withdrawal
from business of a major competitor
For a tailor residing in a provincial city:
the absence of a reliable tailoring shop.

48. THREATS – refer to a challenge
posed by an unfavorable trend or
development in the external
environment that would lead to, in
the absence of purposeful
entrepreneurial action, the erosion
of the entrepreneurship’s position.

49. Ex:
To the grocery store: the
proposed opening of a mall in the
vicinity
To the restaurant located along
the highway: the proposed
construction of a diversion road
by passing the highway and the
restaurant

50. The Entrepreneurship
S W
T E
R A
E K
N N
G E
T S
H S
S E
S
S
OPPORTUNITIES
SWOT Analysis Forecasts
of Future Performance
THREATS
Strategy

51. IMPLEMENTING STRATEGIC
PLANS
1.IDENTIFYING SPECIFIC METHODS
- Development of tactics – are more
detailed and they are used to
determine how the specific task
can best be accomplished on time
with available resources.

52. Tactical Plans:
1.Identify strategic locations
2.Determine the potentials
of the identified strategic
locations
3.Set a timetable for
installing the branches.

53. 2. DEPLOYING THE RESOURCES
- The specific aim of planning is
to be able to deploy the right
quality and quantity of
resources in the various
activities required to achieve
the objectives.

54. FUNDAMENTAL STRATEGIES FOR
SMALL BUSINESS
1. THE FLEXIBILITY STRATEGY
- When hindrances such as those
prevent small business from
pursuing its objectives, it must
consider the other means.

55. 2. THE STRATEGY OF
EFFECTIVENESS AS A HIGHER
PRIORITY
- Effectiveness is sometimes
sacrificed for the sake of efficiency.
- Turning out the first products and
closing the first sale are more of a
basic concern than making profit.

56. SITUATION
Compete with
large business
Acquire an
existing business
Start a new
business
Compete with
small business
OLD
BUSINESS
NEW
BUSINESS
Buy a franchise

57. STRATEGIES FOR A GOING CONCERN
1.SEGMENT MARKETS- identify the market
segment with which it has an expertise, then
compete.
2.EFFICIENT USE OF RESEARCH AND
DEVELOPMENT
- It must concentrate its efforts to lowering
process costs or to bring new products to the
market.
3. THINK SMALL – emphasis must be on profits
rather than sales growth, specialization rather
than diversification.

58. WHY SMALL BUSINESS
OPERATORS IGNORE
STRATEGIC PLANNING
1. Lack of expertise
2. Inability to get started
3. Uncontrollable, often
intangible variables

59. 4. Resource poverty
5. Focus on daily operations
6. Failure to realize the
importance of strategic
planning