Let’s have a

Drill
What’s I know
Instruction: Read the statements carefully
write TRUE if the statement is correct and
FALSE if you think the statement is not
correct.
1. An entrepreneur enters
a business because of its
profitability
Ans. TRUE
What’s I know
2. New business ideas
provide business
opportunities.
Ans. TRUE
What’s I know
3. The entrepreneurial
process starts with
identification of
entrepreneurial
opportunities.
Ans. FALSE
What’s I know
4.Discovery and
advancement in the use of
technology are additional
good sources of business
opportunities.
Ans. TRUE
What’s I know
5.Interest and hobbies of the
people are possible good
sources of entrepreneurial
ideas.
Ans. TRUE
RECOGNIZING A

POTENTIAL
MARKET
U n l o c k i n g t h e w o rd s
Market
Target Market
Potential Market
Product
Services
U n l o c k i n g t h e w o rd s
Market - is a place where to parties can
gather to facilitate the exchange of products
and services.

Target Market- refers to a group of potential

customers to whom a company wants to sell
its products and services.

Potential Market- refers to people who

shown some level of interest in buying a
particular product or service.
U n l o c k i n g t h e w o rd s
Product- can be defined as anything that we
can offer to a market for attention,
acquisition, use or consumption that could
satisfy a need or want of the customers.

Services -are special form of products which

consists of activities, benefits or
satisfactions offered for sale that are
intangible and do not result in the ownership
of
anything. A service thus includes banking,
airline travel, communication services, hotel
The Importance of Potential Markets
-Potential markets are an important part of a business’
future growth;

- Ensure the future of your business by identifying new

customers;

- Think proactively about ways for your business to grow

and change;

- Show potential of your business to investors or

collaborators;
- Increase your revenue; and

- Create a plan B that will whether changes in the

economy or market.
H o w t o I d e n t i f y Yo u r P o t e n t i a l M a r k e t s ?
You must ask yourself:
-
What other products do my customers need now?
• What related products will they need in the
future?
• Who else could make use of the products I am
selling now?
• What demographic information does that new
group have in common with my current customers?
• What demographic information does that new
group have in common with each other?
 R e a c h i n g Yo u r P o t e n t i a l M a r k e t
Use this profile to identify:

- The demographic information that people

in group have in common;
- The best forms of media to reach them;
- How they prefer to shop and make
purchases;
- The concerns, struggles, or problems that
you can help them overcome;
- What values matter to them, both in
everyday life and when shopping; and
 W a y s t o D e fi n e Yo u r M a r k e t
• Consider whether the business offers a new solution to
an old problem or complements an emerging trend;
• Have a clear picture of your target market;
• Determine the benefits that your product or service
offers;
• Examine industry data that can confirm whether there
is a s sustained, growing demand for your product or
service;
• Identify the percentage of market share that it is
realistic for you to capture. The more competition you
have, the lower the margins will be; and
 Yo u r m a r k e t c o n s i s t s o f :
❖ Existing customers: People who have already
purchased your product.

❖ Prospects: People who have not yet purchased your

product but are considering it.

❖ Target market users: People in your target market

who are not currently looking for
a solution.
E n t re p re n e u r i a l i d e a s
The creation of entrepreneurial idea
leads to the identification of
entrepreneurial opportunities, which
in turn results in the opening of an
entrepreneurial venture. The
entrepreneurial process of the
creating a new venture is presented
in the diagram below.
 Fi g u r e 1 . T h e E n t r e p r e n e u r i a l
P r o c e s s o f C r e a t i n g N e w Ve n t u r e

Creation of Identification Opening

entrepreneurial of entrepreneurial of
ideas Opportunities entrepreneurial
venture
Essentials in
Entrepreneur’s
Opportunity-seeking

These are the basic foundation that

the entrepreneur must have in
seeking opportunities:

1. Entrepreneurial mind frame

2. Entrepreneurial heart fl ame
3. Entrepreneurial gut game
 Entrepreneurial mind
frame
This allows the
entrepreneur to see things
in a very positive and
optimistic way in the midst
of diffi cult situation. Being
a risk-taker, an
entrepreneur can find
solutions when problem
arise.
 Entrepreneurial heart
fl ame
Entrepreneurs driven by
passion; they attracted to
discover satisfaction in the
act and process of
discovery. Passion is the
great desire of an
entrepreneur to achieve
his/her goal.
 Entrepreneurial gut game

This refer to the ability of

the entrepreneur of being
intuitive. This also known
as intuition. The gut game
also means confidence in
one’s self and the firm
belief that everything you
aspire can be reached.
 Source of
Opportunities

1.Changes in the environmental

2.Technological discovery and
advancement
3.Government’s thrust, programs,
and policies
4.People’s interest
5.Past experiences
ANNU

1. Change in the environment

Entrepreneurial ideas arise when
changes happen in the external
environment. A person with an
entrepreneurial drive views these
changes positively.

External environment refers to the

physical environment, societal
environment , and industry
environment where the business
operates.
 Changes in the environment

The Physical The Societal The Industry

environment environment environment
Physical Environment

a. climate- the weather conditions.

b. Natural resources- such as
minerals, forest, water, and fertile
land that occur in nature and can be
used for economic gain.
c. Wildlife-includes all mammals, birds,
reptiles, fish, ect., that live in the
wild.
Societal Environment

a. Political forces- includes all the

laws, rules, and regulationsthat
govern business practices as well as
the permits, approvals, and licenses
necessary operate the business.
b. Economic forces- such as income
level and employment rate.
c. Sociocultural forces- customs,
lifestyles, and values that
Industry Environment

a. Competitiors
b. Customers
c. Creditors
d. Employees
e. Government
f. Suppliers
ANNU

2 . Te c h n o l o g i c a l d i s c o v e r y
and advancement

A person with entrepreneurial

interest sees possibility of business
opportunities in any new discovery
or because of the use of latest
technology.
ANNU

3. Government’s thrust,
Programs, policies

The priorities, projects,

programs, and policies of the
government are also good
source of ideas.
ANNU

4. People interest
The interest, hobbies, and
preference of people are rich
source of entrepreneurial ideas,
like the increasing number of
cafés at present could lead to the
strong attachment of young
people to computers.
ANNU

5. Past experience
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.
ANNU

Assessment:
1.It is the process of considering, evaluating, and
pursuing market-based activities that are believed
to be advantageous for the firm.

a. Opportunity-seeking
b. Opportunity- seizing
c. Opportunity-screening
d. Sources of opportunity

Ans. Opportunity-seeking
ANNU

Assessment:
2. This is essential to opportunity-seeking which
allows the entrepreneur to see things in a positive
and optimistic light in the midst of crisis or difficult
situation.

a. Entrepreneurial mind frame

b. Entrepreneurial heart flame
c. Entrepreneurial gut game
d. Entrepreneurial heart frame

Ans. Entrepreneurial mind frame

ANNU

Assessment:
3.It is the ability of entrepreneur that can sense
without using the five senses, also known as
intuition.

a. Entrepreneurial mind frame

b. Entrepreneurial heart flame
c. Entrepreneurial gut game
d. Entrepreneurial heart frame

Ans. Entrepreneurial gut game

ANNU

Assessment:
4.One of the essentials of entrepreneur’s
opportunity-seeking that refers to the driven
passion of an individual.

a. Entrepreneurial mind frame

b. Entrepreneurial heart flame
c. Entrepreneurial gut game
d. Entrepreneurial heart frame

Ans. Entrepreneurial heart flame

ANNU

Assessment:
5.What variable of societal environment includes
income level and employment rate?

a. Economic forces
b. Sociocultural forces
c. Political forces
d. Technological forces

Ans. Economic forces

ANNU

Assessment:
6.It is common competencies in entrepreneurship
that entrepreneur must be firm in making
decision.

a. Decisive
b. Leader
c. Opportunity Seeker
d. Risk Taker

Ans. Decisive
ANNU

Assessment:
7. It is commomon entrepreneur has the courage
to pursue business ideas.

a. Risk Taker
b. Leader
c. Opportunity Seeker
d. Decisive

Ans. Risk Takers

ANNU

Assessment:
8. An entrepreneur has convincing power.

a. Risk Taker
b. Leader
c. Communicator
d. Decisive

Ans. Communicator
ANNU

Assessment:
9. It is core competencies in entrepreneurship that
can compensated by his profit coming from the
operation.

a. Leader
b. Communicator
c. Decisive
d. Profit potential

Ans. Profit Potential

ANNU

Assessment:
10. The entrepreneur needs to gamble but wise
enough to offset the risk.

a. Risk bearing
b. Communicator
c. Innovative
d. Profit potential

Ans. Profit Potential

 True or
ANNU

False:
______1. Entrepreneur means “to undertake.”
______2. Entrepreneurship is a process of actions of
an entrepreneur who is always in search of
opportunities.
______3. The greatest significance of
entrepreneurship is to help identify and develop
the managerial capabilities of entrepreneurs.
______4. Entrepreneurship will lead to the creation
of organizations.
_______5. Entrepreneurship can improve the life of
the entrepreneur only.
ANNU

Performance task:
Essay:

1.Give atleast three (3) names of entreprepreneurs

that you know, may it be from your locality or
within the Philippines. Identify what are the
common traits as entrepreneurs.

2. Who among the entrepreneurs that you

mentioned do you admire the most and why?
THANK'S FOR
LISTENING