Chapter 5
Chapter 5
The entrepreneurs are not discouraged with the constraints along the causes of our economic malady. It should be
turned into positive note and new solutions must be made to make them different from other individuals. There are lots
of opportunities for entrepreneurs who are hardworking, creative and resourceful, and would like to take the calculated
risk.
Business opportunities are wide open for people who would like to invest their money into gainful business
activities. They need to find out this new venture that interests them and how they can harness their technical
knowledge of the trade.
The search for business opportunity should start with the individual entrepreneur. He has to find out the skills and
talent for that particular type of business activity. His talent and skills are the beginning of his great investment in the
trade. He must have the passion for independence and willingness to work hard and long to keep up with his dream of
being an entrepreneur.
Before venturing into the field of business the new entrepreneur should look into the following factors:
1. Know your Product or Service
First, you must believe on the product or service that you will offer to your customer. If it is a new idea or
concept then you must be able to convince that you have a unique product that would satisfy customers’ needs and
wants. Customers want to try new products but it must be better than those existing in the market.
2. Analyze the Market Potentials
The customer base will determine the success of your business venture. The wider the market potential, the
more chances of growth and success. The entrepreneur must know his needs and wants and figure out how to satisfy
these needs. Analyze customers’ profile as to their buying habits, their income, and social status.
3. Determine the Marketing Strategy
A unique product or service needs effective distribution strategy to get customer into the basket of demand
potential. Continuous supply determines product growth. Customers must have access to the product when they
need it. Outlets must be developed that would answer customers’ demand. The customers must be able to make
suggestions as to product quality and availability as they are the kings and queens of the entrepreneur.
4. Know the Competitors
In launching a product with existing competitors, you must know their strengths and weaknesses. Develop new
product and marketing strategy and turn their weaknesses as new opportunity for your product. Continuous
innovation and research would mean better quality products or service. Make things better and serve your customers
with loyalty and dedication and it will make a great difference.
5. Do not set on your Laurels
The landscape of business is continuously changing. Your initial success in your business activities needs more
proactive analysis for expansion and growth and overcome possible competitions. Develop adverting and promotion
strategy to penetrate the wider market. Develop budget for expansion and diversification either horizontally or
vertically. Get new resources and develop new materials. Invest in research projects that will enhance the quality of
your products.
I. ENVIRONMENTAL SCANNING
The environment of business is vast with opportunities and the entrepreneur must have a greater look into this
potential as well as the conditions prevailing in the community. The entrepreneur’s ultimate objective in diving into
business worlds is to make profit. Investment in money and effort should generate financial gain for the
entrepreneur.
To generate income for his product or service he must be able to deliver customer satisfaction. The following
factors are contributory to the development of customer satisfaction:
1. Business Location for Small Entrepreneurs.
A retail outlet would need a site that is convenient to prospective customers in terms of parking space or
availability of transportation. A restaurant or an entertainment center would need ample parking area where
customers would not worry on where to leave their cars while enjoying their stay. The same could be true with a
grocery store.
In choosing the location, the following factors must be looked into by the entrepreneur:
a. Rent and Space – the cost of rent is a regular monthly expense and it must be sustained with the possible
income that will be generated.
b. Terms and Lease Agreement – the term of lease must be studied carefully as some owners of space might
take advantage of lessee.
c. Types of Goods or Merchandise – a convenient store is located where there are pedestrians passing by. They
need quick and easy access to the store and would not spend a lot of time to purchase their goods.
d. Income Level of Prospective Customer – the type of pedestrians and the income level of customer must be
taken in to account. A good barber shop or a beauty salon with facilities of air conditioning units and other
amenities need to be located in the community with higher income bracket.
e. Prospective Sales Volume – high density sales volume need to be located in shopping area where customers
conversed to buy essential goods. Lower sales volume could be located in the community or secondary
areas like subdivisions or the BARANGAY.
f. Municipal or City Ordinances including taxes and fees – the locations must not violate city or municipal
ordinances and the taxes and fees must be reasonable for the owners of business.
g. Location of the Areas – the area must be free from floods and other calamities that will endanger the
business.
2. Location for Small Industrial Plant or Manufacturing Facilities
Environmental factors in locating a manufacturing plant or industrial facilities need to be studied
carefully as plant location is a great factor in the investment of funds and its profitability in the long run. The
industrial facility must be suitable to the kind of operation. It must comply with government zoning regulations
related to pollution and environmental laws.
2. Shortly after starting your small business, the COVID-19 pandemic happened. What is your strategic plan
towards your business?
ACTIVITY 4. IDENTIFICATION
_____1. It is the objective of the entrepreneur to sustain product quality and market acceptance.
_____2. It refers to the product acceptance before it is rolled out into the production area.
_____3. It refers to the place where the facilities will be located.
_____4. Customers look not only on the product’s quality but also on its appearance and usability.
_____5. Entrepreneurs must look at it as an important component in the production of goods.
_____6. The entrepreneur creates these problems when they fail to sustain growth and expansion.
_____7. This is created when there is market sustained patronage and customer satisfaction.
_____8. These are the conduit of entrepreneur in vertical or horizontal expansion.
_____9. Profitability and market expansion is affected by the entry of another product.
_____10. The entrepreneur must maintain in plant operation product standard and specification.
a. Production process f. Weak product management
b. Product quality g. Plant location
c. Product demand h. Competition
d. Production cost i. Production process
e. Banks and financial institutions j. Technical skills of management