It’s time to set up

your own
business!
“You have to dream to create a
motivating
target to shoot for.
Dream big and you’ll surprise
a lot of people-maybe
even yourself-with what
you can accomplish.”
-STEVE KLEIN-
Successful self-made entrepreneur
and Canadian Marketin

Learning Objectives
At the end of this chapter, the students can:
1. demonstrate critical thinking in business startup;
2. identify the common sources of startup ideas;
3. describe the types of businesses;
4. state some youth entrepreneurs’ motivation of owning a business
from the developed and the developing countries; and
5. demonstrate critical thinking on the basic business questions.

Who wants to become a millionaire? Becoming rich is a journey not a

destination. The best way to get rich is by starting your own business—to become an
entrepreneur.
Entrepreneurs are people who start and run their own business rather than
remain an employee of someone else’s company. You don’t need to be a good
entrepreneur to start a business; you just need to start a business to become a good
entrepreneur.
But before you choose to enter the small business game, you need to think
carefully about the person you want to be and owning a business will help make you
that person. According to Jeff Sandefer, when you embark upon a heroic journey—a life
filled with meaning and purpose-the first step is to heed the admonition inscribed over
the

entrance to the Oracle of Delphi in ancient Greece: “Know Thyself.” Search out
who you are, and then you will be equipped to discover your heroic calling.

Moreover, apart from becoming a prosperous, what else can you gain from
starting own business? You can achieve financial independence and at the same time
pursue the
dream you’ve always wanted. You can also escape the corporate ladder along with its
stifling bureaucracy by reaching the top faster and achieving a more flexible schedule.
You can also achieve creative independence and have more time for your family.

A business is much more than a job.

It actually means being seriously involved
with your customers who will constantly
rely on your products and services. If you’re ENTREPRENEURS AND

still employed and thinking about quitting A study on entrepreneurship revealed

just to start your own business, consider
first how stable you might be. It’s actually
best to start a business while being
employed and then go full-time later on
when you finally know you’re secure and
stable.
that successful entrepreneurs work an
average of 60 hours per week, but
started at 70-80 hours at first. This
doesn’t mean that you should work
even on weekends, but that you
should put in more working hours if
you want to make it to the top.

Motivations of Owning a Business

Understanding clearly why you want to own a small business and what
motivates you are vital to eventually achieving fulfillment through your business.
Entrepreneurship often provides an attractive alternative for individuals fleeing
from undesirable job situation
 One of the primary reasons for becoming an entrepreneur is to make the world a
better place (make meaning) which includes personal satisfaction, personal fulfillment –
contributing to one’s community, independence and financial rewards.

Entrepreneurial Motivations

Personal Fulfillment Personal Satisfaction

*Recognition and
*Sense of Belonging respect
and working together *Passion for firm’s
product
*Making a difference or sewrviceMaking
*Intelectually Challlenginga
difference
Motivations for Founding Company
Independece
Financial Rewards
*Being my boss *Building personal
*Controlling my own financial wealth
future
*Discretionary time and
flexibiulity

 Personal Fulfillmen – Owning a business should provide significant

personal fulfillment. Being a neophyte entrepreneur and owning your own
business, you should possess the core values that make the world a better place.
John Doerr, one of the most famous venture capitalists of all time inspired the
phrase “make meaning” suffesting that the most impactful and sustainable
businesses aree built on such a foundation. Youf first goal should be to create a
product or service that improves life for others.
Also it is through their businesses that entrepreneurs developn a sense of
belonging. They come to understand that they can do nothingof significant by
themselves. Only by working with others –hopefullu with people thay enjoy—can
entrepreneurs realize personalfulfillment.

 Personal Satisfaction – Closely related to fulfillment is the personal

satisfactionthat business owners frequently experience from their businesses.
Rick Davis, founder and CEO of Davaco-based company, says, “there is nothing
else I would rather do. I love the challenge working with others to see our dreams
come true, and makinga difference in the community. It is fun.”
 Business owners were found outrank all other occupational groups in
terms of overall sontentment. For one thing, entrepreneurs feel rewarded in
working with a particular product or service and being good atr it. They find great
satisfactin from being the best at what they do.

Entrepreneurs are energized from enjoyable association within their

business. There is reward that comes form helping their people develop that one
of his primary roles is to help his employees become better at what they do. HE
takes great pride in the number of his people who have similar expereiences,
business powners enjoy frienships with other business owners, and they learn
from one another. Finally, if they are visible in the community, amall business
owners can garner the respect of their community. So for many entrepreneurs,
the personal satisfactiuon received from business is no small matter in their lives.

 Independence is freedom. Busieness owners have discretion about whaen

they want to engege in nonbusiness activites. They have the freedom to decide
when to work, when to be with family, and when to be engeged in community
activities in ways that employee frequrently cannot.It reflects the importance of
being free to choose the work you do and how you do it, the way you manage
your time, and the way you respond to adversity as cited by the Gallop Poll.

 Financial Rewards – the very reason why people venturing into business is
to earn money. As a general rule, when business es are profitable, everyone
benefits. Jobs are created, taxes are paid, and charities receive donatuons.
Furthermore, like any other job or career, , starting a busienss expect to get in
return to meet ends meet, improve standar of living. Making a profit is certainly
necessary for a firm’s survival and for business expansion.

For economic perspective, however, the financial return of a business

should compensate its owner not only for his/her investments I of personal time
(in the form of a salary equivalent) but also for personal money invested in the
business ( in the form of cah distributed to the owner and the increased value of
the business) and for the risk he or she is taking.
Youth Entrepreneurs Motivations for Starting Businesses
Research study cited several reasons why youth entrepreneurs venture into
businesses.
For the developing countries such as America, Europe and Japan, (Gray, et al,
1995) are the following:
a. to be one’s own boss, with more control over one’s own work and life;
b. to obtain an alternative route for advancement from a dead-end job;
c. to obtain additional money;
d. to provide products not elsewhere available. And
e. in the UK, for example, the youth, especially the graduates, are motivated
primarily by desires for independence and flexibility and not necessarily
money (OECD, 2001).

In contrast, youth in developing countries answered (Chigunta, 2001). are:

a. socio-economic problems as the major reason for starting the business;
b. in order to survice or out of failure to find productive use of their energy in
other avenues;
c. poverty
d. unemployment;
e. need to accumulate wealth;and
f. need to supplement household income;

In some countries, the different life experiences and expectations or different

socialization processes of females and males in society influence their reasons for
starting an enterprise. For example, the data from Zambia suggest that the need to
supplement household income is the motivating factor for starting an enterprise among
female youth proprietors, while among male youth proprietors it is lack of employment.
Recognizing the various reasons why young people decide to start a business is
important for the promotion of youth entrepreneurship. As White and Kenyon (2000)
observe, the challenge lies in promoting entrepreneurship as a genuine career
alternative for young people, especially as a way to achieve greater financial reward
and work satisfaction, rather than focusing on self-employment as a way to escape the
negative circumstances of unemployment and poverty.

What kind of Business should you start?

Several studies have identified sources of ideas for small business startups. A
study conducted by the National Federation of Independent Business(NFIB), which
found that prir work experience accounted 45 percent of new ideas. However, there are
other important sources. As it is indicated below, the NFIB study fopund that personal
interests and hobbies represented 16 percent of the total, and chance happenings
accounted for 11 percent.
Ideas for startup can come from anuwhere but for now we will focus on three
possible source; personal/work experience, hobbies ad personal interests, and
accidental discovery.

Prior work
experience
45%e Personal
interest/hobby
16% Chance
happening
11%
Suggestion
7%
Common Sources of Startup Ideas Education/courses
Family business
Friends/
6%
Relatives
5%
Others
4%
Common Sources of Startup Ideas

1. PERSONAL OR WORK EXPERIENCE

One of the primary sources of startup ideas is personal experience. Often,

knowledge gleaned from a present or former jobs allows a person to see
possibilities from modifying an existing product, improving a service, becoming a
supplier that meets an employer’s needs better than current vendors, or
duplicating a business concept in a deferent location. Or personal contacts (your
network may include suppliers that are interested in working with you or
customers whose needs are not currently being met. Startup concepts may even
result from trying personal circumstances or misfortunes, especially when the
entrepreneur can use work experience or technical skills to address the
challenge at hand. Regardless of the situation, these insights may lead you to an
opportunity with tremendous potential.

2. HOBBIES AD PERSONAL INTERESTS

Sometimes hobbies grow beyond being leisure activities to become

business, and they can add surprising energy to the startup process. People who
love doing things they are interested and enjoy as a way to make income. While
we don’t expect all or even most small businesses to grow into life-changing
technology giants. Facebook story proves that fun side projects can sometimes
grow into significant new companies with serious profit potential.

3. ACCIDENTAL DISCOVERIES

This source of new startup ideas involves something called

serendipity, a facility for making desirable discoveries by accident.
Awareness obviously plays a role here, but anyone may stumble across a useful
idea in the course of day-to-day living. Pleasure Doing Business. Within a few
years, things really started to take off, showing that promising business ideas
sometimes just happen-even when you’re not really looking for them.
 The most important factor in starting up a business is choosing the right kind of
business. Now, that you know what your abilities, interests, hobbies skills and
inclinations are, you know what you’re good at and enjoy doing. And once you know
what you like, you need to plan on how to start and run it, at the same time make money
out of it.
You don’t necessarily have to come up with a totally new or unique business idea
for your business to succeed, In fact, many new businesses are just like existing ones
and even look identical. What’s important is the range of talent and expertise that you
have in making your business successful

What are the basic business questions?

Starting a business should be based on your interests, experiences, abilities,

available resources, amount of free time and financial status. But remember, many
people will do business with products they are familiar with: food, beauty products,
clothes, computers, home appliances, furniture, flowers, etc. They also offer services
they are presumably good at, such as cooking, designing, accounting, writing,
landscaping, etc.
Hence, it’s crucial what exactly you want to set up. Ask yourself the following
questions.
1. What are the three things you are knowledgeable about?
2. What things are you really good at doing?
3. What work do you like doing the most?
4. Which are you more comfortable with? Handling objects or meeting people?
5. How much do you want to deal or be involved with people?
6. How much money do you really want to make?
 7. What resources do you have such as people, property, equipment,
information, etc.?
8. Finally, how much time are you willing to spend in putting up your business?
Depending on the time, it can either be a part-time or full-time business.

Among the questions most frequently asked by many is “What kind of business
is easy to start and is guaranteed to be successful?” This question, however, is
tricky because it is impossible for anyone to immediately and with certainty identify which
business ideas will be profitable. Launching a successful business venture depends on
several factors on your capacity as an entrepreneur, the trends in the business, and
developments in the national and global economy.

At this point, let’s see what kind of businesses are predicted to be the most
successful in this century. As we become more and more of a global village where we
become interconnected with others, the most successful businesses will be those which
can adapt to global trends in trade and commerce. They include:
1. Information technology
This computer-related business requires the ability to think logically,
teamwork, self-motivation, boundless creativity and problem-solving skills.
2. Sales and Personal Services
Apart from good communication skills, entrepreneurs in this field must
have good computers skills, a strong work ethic, knowledge of marketing
dynamics and trends, and a good understanding of human behavior.
3. Business and financial Services
There must be an exceptional ability with numbers and formulas, a
logical approach in problem-solving , and good analytical skills coupled with
adequate computer literacy.
4. Education and Human Services
The welfare of human beings is the primary goal for this business.
This also requires specialized training, good interpersonal skills and
knowledge of a second language.
 5. Media and Entertainment
A good grasp of English grammar and spelling, creativity and
interpersonal skills, awareness of fads and trends is needed. Entertainment is
also becoming more Internet-based, so count in computer skills, too.
6. Tourism and Hospitality
With the advent of tourism as a global industry, the opportunities acre
much bigger. Customer-related work requires constant interaction with people
teamwork, and complete dedication to customer care and quality.
7. Engineering
With technology now becoming more and more a part of our leaves,
doing business in this field is promising. Products and services can include
the computer, consulting, industrial and electrical fields.
8. Food Survives
Food is a basic human need, so whether times are good or not, there
will always be an immense market for food and food services. But with the
increasing sophistication and selling food, you need to know of just what kind
of food to sell but also how to present it to your target market.
9. Health and Well-being Services
Like education, this also requires basic understanding or concern for
others, and more importantly, certification and licensing in many aspects.

The Three Types of Businesses

The following are the types of businesses that you can engage in depending on
what your skills and talents are, namely:
1. People-oriented
If you enjoy organizing,
helping, communicating,
persuading, teaching,
negotiating, performing,
caring and even planning
then this is the kind of business for you.
Business
What business do you like?
You don’t need to limit your business
to a traditional one. You’re definitely
free to choose one that you like.
Some interesting businesses include
party planning, home-based tour
events,
organizing, aquarium cleaning, dog
training, personal genealogy, research
and even maid training.
2. Thing-or item-oriented Business
If you prefer working with objects, food, animals, tools, products, along
with making, repairing. Cleaning, renovating, restoring, or finishing things,
then you can explore possibilities here.

3. Information-oriented business
If you have an ability working with words or numbers, or you like skills
such as creating, analyzing, compiling, evaluating or expressing, consider
entering this kind of business.

If you feel that you have certain skills which indicate of business but you
still want to pursue a thing-oriented business instead, then do so. It all boils
down to what you really like to do.
 Name: ___________________________________________
Grade: __________________ Section: ________________
Date: __________________ Score: _________________

Let’s do it!

Activity 1. Find out your entrepreneurial skills

Find out how good you are in being entrepreneurial by checking the appropriate
answer to each question. This will help determine how good you are can be in setting
up your own business.

1. Do you; like engaging in hard work?

a. Yes b. Somewhat c. No

2. Do you regard yourself as people-oriented?

a. Yes b. Somewhat c. No

3. Do you always set goals?

a. Yes b. Somewhat c. No

4. How many times do you make initiatives?

a. Always b. Often c. Once in a while

5. How many times have you seen your judgment turn out to be good?
a. Always b. Often c. Once in a while

6. Do you like to innovate and/or create new things or ideas?

a. Yes b. Somewhat c. Not really

7. Do you consider yourself as a self-confident person?

a. Yes b. Somewhat c. No

8. How flexible and/or adaptable are you?

 a. Very b. Fairly c. Not really

9. How honest are you?

a. 100% b. 90% c.80%

10. How deep is your desire to win?

a. 100% b. 95% c.90%

11. How profit-oriented are you?

a. 100% b. 80% c.90%

12. How good are your problem-solving skills?

a. 100& b. 80% c.90%

13. Are you a risk =taker?

a. Yes b. Somewhat c. Not really

Note:
Count how many a, b and c answers you choose, and analyzes accordingly:
If you answered mostly “a”, you have excellent entrepreneurial skills
with the best chances of succeeding as fast as possible.

If you answered mostly “b”, you have very good entrepreneurial skills
that can be further refined as you set up your own business.

If you answered mostly “c”, you have good entrepreneurial skills, but
you may need to bolster your skills in areas where you might be weak.
 Activity 2.
My Startup Business

DIRECTIONS: Answer the following questions in detail.

1. If I were to start my own business, the type of business I would want to undertake
is_____________________________because_________________________________
_____________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
_____________________________________________________________________.

2. Draw your finish product/s and put inside the “basket of goods.”

Activity 3. Entrepreneurial Analysis

DIRECTIONS
1. Look for an entrepreneurial article to analyze.
2. The following sources are: Entrepreneurial magazine, Forbes magazine, and other business
publications (Strictly no articles from broadsheets or tabloid.)
3. Paste the article to the space provided. For the summary and reaction, follow the sample format
below.
4. Font: Arial Size 12, double space, justified, black ink
5. Minimum of 2 pages

BUSINESS START-UP
By: Jules Von Olaise
Source: Forbes Magazine, November 2017 Issue

Summary ___________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

Reaction ___________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Paste here your Entrepreneurial Analysis Article