INFO SHEET 2.1-4 Environment and Market

INFORMATION SHEET 2.1: electrification facility in the next six months.
Only by that time

will the entrepreneur think of electrically- powered or generated
Needs and wants of people business such as a photocopier, computer service, digital printing,
etc.
I. Objective/s 3. Examine how the needs are being satisfied. Needs for the
a. Differentiate wants and needs products and services are referred to as market demand. To satisfy
these needs is to supply the products and services that meet the
Everyone has his or her own needs and wants. However, demands of the market. The term market refers to whoever will use
people have different concepts of needs and wants. Needs in or buy the products or service, and these may be people or
business are important things that every individual cannot do institutions such as other businesses, establishments, organizations,
without in a society. These include: or government agencies.
1. Basic commodities for consumption There is a very good business opportunity when there is absolutely
2. Clothing and other personal belongings no supply to a pressing market demand.
3. Shelter, sanitation, and health Businesses or industries in the locality also have needs for goods
4. Education and relaxation and services. Their needs for raw materials, maintenance, and other
services such as selling and distribution are good sources of ideas
Basic needs are essential to every individual so he/she may be for business.
able to live with dignity and pride in the community of people.
These needs can obviously help you generate business ideas. 4. Examine the available resources around you. Observe what
materials or skills are available in abundance in your area. A
business can be started out of available raw materials by selling
Wants are desires, luxury, and extravagance that signify wealth
them in raw form and by processing and manufacturing them into
and an expensive way of living. Wants or desires are
finished products. For example, in a copra-producing town, there
considered above all the basic necessities of life. Some will be many coconut husks and shells available as “waste”
examples are the eagerness or the passion of every individual products. These can be collected and made into coco rags/doormat
which are non- basic needs like: fashion accessories, shoes, and charcoal bricks and sold profitably outside the community.
clothes; travelling around the world; eating in an exclusive A group of people in your neighborhood may have some special
restaurant; watching movies, concerts, plays; having luxurious skills that can be harnessed for business. For example, women in
cars; wearing expensive jewelry, perfume; living in impressive the Mountain Province possess loom weaving skills that have been
homes; and others. passed on from one generation to the next generation. Some
communities there set up weaving businesses to produce blankets,
Needs and wants of people are the basic indicators of the kind as well as decorative items and various souvenir items for sale to
of business that you may engage in because it can serve as the tourists and lowland communities.
measure of your success. Some other good points that you Business ideas can come from your own skills. The work and
might consider in business undertakings are the kind of people, experience you may have in agricultural arts, industrial arts, home
their needs, wants, lifestyle, culture and tradition, and social economics, and ICT classes will provide you with business
orientation that they have. opportunities to acquire the needed skills which will earn for you
extra income, should you decide to engage in income-generating
activities. With your skills, you may also tinker around with
INFORMATION SHEET 2.2
various things in your spare time. Many products were invented
this way.
Generating Ideas for Business
5. Read magazines, news articles, and other publications on
I. Objective/s new products and techniques or advances in technology. You
a. Enumerate the ways which you may generate can pick up new business ideas from Newsweek, Reader’s Digest,
Possible ideas for business Business Magazines, Go Negosyo, KAB materials, Small- industry
Journal. The Internet serves as a library where you may browse
Here are some ways by which you may generate possible ideas for and surf on possible businesses. It will also guide you on how to
business. put the right product in the right place, at the right price, at the
right time.
1. Examine the existing goods and services. Are you satisfied
with the product? What do other people who use the product say Listing of possible businesses to set up in an area may also be
about it? How can it be improved? There are many ways of available from banks or local non-government organizations.
improving a product from the way it is made to the way it is
packed and sold? You can also improve the materials used in
crafting the product. In addition, you introduce new ways of using
the product, making it more useful and adaptable to the customers’ INFORMATION SHEET 2.3
many needs. When you are improving the product or enhancing it,
you are making an innovation. You can also make an invention by
introducing an entirely new product to replace the old one.
Selecting the Right Idea
Business ideas may also be generated by examining what goods II. Objective/s
and services are sold outside by the community. Very often, these a. Screen your business ideas based on the
products are sold in a form that can still be enhanced or improved. given factors
2. Examine the present and future needs. Look at and listen to
Once you have embarked on identifying the business
what the customers, institution, and communities are missing in
terms of goods and services. Sometimes, these needs are already opportunities, you will eventually see that there are many
obvious and felt at the moment. Other needs are not that obvious possibilities that are available for you. It is very unlikely
because they can only be felt in the future, in the event of certain that you will have enough resources to pursue all of them
developments in the community. For example, a town will have its at once. Which one will you choose?
You have to select the most promising one from among a example, in the past, people in the community used
hundred and one ideas. It will be good to do this in stages. personal computers but the transmission of development
In the first stage, you screen your ideas to narrow them in terms of technology was interrupted because people
down to about five choices. In the next stage, trim down were not satisfied with what they had. They still look for
the five choices to two options. In the final stage, choose the changes in their life and corresponding changes in
between the two and decide which business idea worth their environment.
pursuing.
In screening your ideas, examine each one in terms of the As a future entrepreneur, you must be well-versed in this
following factors: kind of advancement and progression of your
environment, particularly in technology, so as to secure
1. How much capital is needed to put up the business? the success of your future business. Always think of
something new, something novel, authentic; reinvent the
2. How big is the demand for the product? Do many existing ones; and create your new version of
people need this product and will continue to need it for a goods/products, and services. For instance, your own hair
long time? straightening is herbal, while in the other salons it is made
of synthetic chemicals.
3. How is the demand met? Who are processing the
products to meet the need (competition or demand)? How This kind of changes being made will affect the existing
much of the need is now being met (supply)? principles in business and industries that can be easily
adapted to the changes in producing the products/services
4. Do you have the background and experience needed to to meet the needs and wants of people in the community.
run this particular business?
5. Will the business be legal, not going against any

existing or foreseeable government regulation?
6. Is the business in line with your interest and expertise?

Your answers to these questions will be helpful in
screening which ones from among your many ideas are
worth examining further and worth pursuing.
INFORMATION SHEET 2.4
Environmental Scanning
I. Objective/s
a. Define environmental Scanning
There is a need to conduct environmental scanning to

identify the needs and wants of people, the niche for your
business mission, and to give attention to trends and
issues. This may also serve as an evaluation of the type of
the entrepreneurial activity appropriate in the community.
Environmental scanning is defined as a process of

gathering, analyzing, and dispensing information for
tactical or strategic purposes. The environmental
scanning process entails obtaining both factual and
subjective information on the business environments in
which a company is operating.
External Environment in the community can be viewed

according to its technological, political, legal,
environmental, economic, and social aspects. For

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INFORMATION SHEET 2.1: electrification facility in the next six months.

Only by that time

5. Will the business be legal, not going against any

6. Is the business in line with your interest and expertise?

INFORMATION SHEET 2.4

There is a need to conduct environmental scanning to

Environmental scanning is defined as a process of

External Environment in the community can be viewed

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