Content Standard. The learner demonstrates understanding of core concepts and theories in cookery lessons.
Performance Standard. The learner independently demonstrates core competencies in cookery as prescribed in the TESDA Training Regulation.
Objectives.
At the end of this module, you are expected to:
Recognize the Personal and Entrepreneurial characteristics (PECS);
Identify job opportunities through customers’ needs and wants and/market analysis;
LEARNING OUTCOME 1: Assess Personal Entrepreneurial Competencies
Entrepreneur
An entrepreneur is comprehensively defined by Zimmerer & Scarborough (2005) as someone who “creates a new business in the face of risk and uncertainty to achieve profit and growth by identifying significant opportunities and assembling the necessary resources to capitalize on them” (p.3). They are the ones who act on their business ideas.
Personal Entrepreneurial Competencies. There have been many studies to characterize “the entrepreneurial personality.” However, there is no isolated set of traits that guarantees success; instead, there are identified behaviors found common to most successful entrepreneurs. There is a well-known research on human behavior done by McClelland and McBer, which identified 10 behavioral patterns organized into three general clusters: the achievement, planning, and power clusters (SERDEF, 2007; 1998). It was found out that these behaviors were also typical entrepreneurial behaviors. The entrepreneurial qualities, more commonly known as the Personal Entrepreneurial Competencies (PECs) are as follows:
Achievement Cluster
Opportunity seeking – Entrepreneurs have a good eye for spotting business opportunities and act on these opportunities appropriately.
Persistence - Entrepreneurs do not easily give up in the face of obstacles. They will take repeated or different actions to overcome the hurdles of business. This includes making a personal sacrifice or extraordinary effort to complete a job.
Commitment to work contract - Entrepreneur do their best to satisfy customers and to deliver what is promised. They accept full responsibility for problems when completing a job for customers.
Risk-taking - Entrepreneurs are known for taking calculated risks and doing moderately challenging tasks.
Demand for efficiency and quality - Entrepreneurs see to it that the business meets or exceeds existing standards of excellence and exerts efforts to improve past performance and do things better. They set high but realistic standards.
Planning Cluster
Goal setting - An Entrepreneur knows how to set specific, measurable, attainable, realistic, and time-bound (SMART) goals. It is easy for them to divide large goals into short-term goals.
Information seeking - Entrepreneurs update themselves with new information about their customers, the market, suppliers, and competitors. This is rooted in their innate sense of curiosity.
Systematic planning and monitoring - Entrepreneurs develop and use logical, step-by-step plans to reach their goals. They monitor progress towards goals and to alter strategies when necessary.
Power Cluster:
Persuasion and networking - Entrepreneurs know how to use the right strategies to influence or persuade other people. They have naturally established a network of people whom they can turn to to achieve their objectives.
Self-confidence - Entrepreneurs have a strong belief in themselves and their abilities. They have self-awareness and believe in their own ability to complete a difficult task or meet a challenge.
LEARNING OUTCOME 2: Understand Business Environment and Business Ideas
Business Environment and Market
This is visible in the environment you belong in, particularly here at Bagong Barrio, where business establishments are visible. The business environment may consist of both tangible and intangible factors that may affect either the external or internal business practices. As you move around the area, it may include the land area available for economic zones, such as nearby wet markets, buildings as well as the transportation network, like tricycles and jeepneys. which are considered as tangible factors. They also include the demography of clients and suppliers, the competitors in the locale/area, and the available technology for production. The intangible factors, on the other hand, include the subculture, industry trends, economic and government activity, or the political situations in the area.
Natural and Physical Environment. This concerns the physical location of a business’ store. The natural environment also pertains to the natural and man-made structures that may enhance the beauty of the location, such as a park or a sea front view, or serve as barrier to the location, such as a dump site or high rise structures that obstruct a view. The living condition in an area also serves as a standard for the ambience you want to create for your store.
Demography. This pertains to the number of people living in the area, their age, gender, socio-economic status, family size, religion and even growth trends. These are invaluable information that can help entrepreneurs in matching their product to the target market, in deciding for the marketing strategy, pricing and product packaging among others.
Culture. Culture or sub-culture, being the totality of the way of life, ideas and customs of a set of people or society, primarily influence the types of products that are acceptable to a particular locality. For example, the influence of the Japanese culture gave rise to minimalist designs. A sub-culture also shapes the ‘emotional’ environment of an area. For instance, the feeling of ‘fear’ for a specific location may serve as a barrier for a business; a place where one does not feel safe because of the prevalence of crime will discourage entrepreneurs.
Government Regulations. The laws and policies of the national and local government units also influence the business operations. Some examples of policies that directly affect entrepreneurs are the imposition or removal of taxes for products, the establishment of economic zones and assistance in product labeling and packaging of products. In addition, improvement of facilities and roads improve transportation network that facilitates transfer of products from one area to another or promotes accessibility for consumers.
Economy. This pertains to the management of resources and study of the system of production, distribution, and consumption of goods and services. A country’s economy influences both the entrepreneurs and consumers as it relates to the financial matters of business like taxes and interest rates and to the quality of life, cost of utilities and services, among others. Even small scale entrepreneurs must learn to study economic indicators to improve business forecasts, such as when to buy certain materials and supplies, when to open a store or introduce new products based on consumer spending, or when to hire employees. Some examples of economic indicators include the (a) Gross Domestic Product (GDP) which increases when a country’s economy is doing good; (b) Unemployment rate which indicates that more unemployed people usually signal an economy getting worse; and (c) Price Indexes and Inflation rates which determine the buying power of consumers.
Technology. Technological changes are inventions based on the application of science that create new product or process improvements. Some examples of technological changes are mobile tools that enable online connection, new business tools for analysis and database, social networks and modern, digital equipment. These advances in technology result to efficiency and productivity at a lesser cost. It can be observed that sending message through e-mail provides a cheaper and faster means compared to hand-delivered mails (snail mails). An entrepreneur can benefit from technological changes by identifying the appropriate technological solution available in the area or locale.
Spotting and Identifying Business Opportunities
Idea Generation.
The first step in identifying a good business opportunity is to look for many opportunities. This is called the idea generation phase (SERDEF, 2007). The following are good sources of business ideas (Hisrich, Peters, & Shepherd, 2008; Looser & Schlapfer, 2001).
1. Personal hobbies and interests
2. Everyday experiences, travel, and adventures
3. Suggestions from family members and friends
4. Problems that need solutions
5. Problems with existing products
6. Books, magazines, news
7. Observing, listening around you
Screening Business Ideas. Once you have generated a number of business opportunities and ideas, the next step is to select and screen these. Though there can be many ways to do this, a good way to proceed is to screen your ideas based on
1) your personality and personal preferences and
2) the characteristics of a good business (SERDEF, 2007).
Consider the following criteria:
1. Personality and Personal Preferences
a. Personal Preference
b. Education, Skills, and Experience
c. Work Experience d. Support from family and friends
2. Characteristics of a good business
a. Demand for Product
b. Availability of skills, raw materials, technology, and capital
c. Profitability
d. Sustainability