RIZAL TECHNOLOGICAL UNIVERSITY

Boni Ave., Mandaluyong City

College of Business and Entrepreneurial Technology

MIDTERM EXAMINATION

NAME: SANTOS, ANDREW MIGUEL L. DATE: APRIL 14, 2020

SECTION: CBET- 01- 401A PROFESSOR: MS. ROLLYN TOLIVER

1. What are the role of Entrepreneurship in COVID-19 crisis in the world?

This COVID-19 Pandemic creates a chaos, dilemma and a lot of suffering for

everyone. It also affects our daily lives specifically our daily needs because of one’s

country policy called ‘lockdown’, in order to limit the movement of people so that the

virus will not spread. Due to this crisis, there is a big role of entrepreneurship that brings

a huge impact for everyone. One essential role of entrepreneurship is wealth creation

for an entrepreneur because this amid COVID-19 crisis there is rapid flow of goods and

services that generates more revenue for entrepreneur especially for companies that

manufactures so called ‘basket of goods’. However, during these situation there are

some entrepreneur that used to engaged in ‘profiteering’ in order to earn more money

particularly some goods like alcohol, thermal scanner and facemasks. The reason for

that is because of the principle of demand and supply, if there is an increase in price

then there is an increase also in supply, simply because they are confident that they will

earn more money and encourage to stacked up more supply. In this situation, many
 RIZAL TECHNOLOGICAL UNIVERSITY
Boni Ave., Mandaluyong City
College of Business and Entrepreneurial Technology

entrepreneurs will take this as an advantage to generate more income rather to be

humane. We used to exercise our explicit business-mind than having an empathy for

others. Another vital role that entrepreneurship plays is innovation because during this

crisis there are some products that are out of supply, just like facemask, therefore we

must find a solution or alternative in order to fill in the gap during this situations. As an

entrepreneur, we need to innovate a facemask in our own way, just like what I observed

in our market particularly in dry good section, they utilize the ‘retaso’ in order to create

an alternative facemask and from that innovation they earn an income. Furthermore,

innovation for me catalyzes a huge role during this crisis because it is more of finding

a solution to that problem despite of adversities. As we all know we need test kits,

however foreign countries invented a test kits but it is quite expensive, then the

University of the Philippines took an initiative to invent locally made test kits that is

way cheaper than the other test kits. Test kits are merely a product and the inventors of

it can increase or decrease its price, in short they are the ones who will dictate it. At the

other hand, you must be fair for its price and not to be a capitalist during this Pandemic.

Every entrepreneur in this situation is part of healing, we must have more of compassion

not profit-driven. In the end we are the one who will suffer if someone take advantage

of the other.
 RIZAL TECHNOLOGICAL UNIVERSITY
Boni Ave., Mandaluyong City
College of Business and Entrepreneurial Technology

2. What would happen if all the stores are closed at this time of crisis

If you want straightforward answer then all of us will die because of hunger but in

specific sense there is no work or man-power during the crisis therefore employees will

not have compensation especially ‘the work no pay’ ones. If that’s the case, they cannot

provide their basic needs during this situation, in worst scenario they will be in hunger.

The aid of national and local government cannot fill the needs of every household due

to limited funds and corruption, that’s why every families are used to endure for what

is happening. Aside from that, it causes a lot of problem for an entrepreneur specially

MSME’s (Micro, Small and Medium Enterprise) because they are having only a small

to medium capital that cannot cover the advances of its employees. It affects the primary

purpose of business, to earn profit because every stores must follow the implementing

rules and regulation of the government, uncertainly because of Pandemic many

businesses income will result to net loss. Based on what I’ve found out that phenomena

is called ‘stores apocalypse’. Every one of us needs a basic necessities especially food

and water during this crisis, if that is the case many of us will die and we will not die

because of virus but because of emptiness of our stomach. Actually, it creates a butterfly

effect for every one of us, from household to entrepreneur to government. Moreover,

during this time our economy is freeze because not all business ventures are moving due
 RIZAL TECHNOLOGICAL UNIVERSITY
Boni Ave., Mandaluyong City
College of Business and Entrepreneurial Technology

to restrictions settled by government. That is why there is a debate if the enhance

community quarantine will be lifted or extended because many businesses will be

affected if there is an extension of it. There are having comprehensive discussion about

it that is why it is hard for our President to decide. As we can see in our television many

families are begging for help from our government because they have no work, therefore

they cannot provide a food in the middle of their table. As a matter of fact, they used to

rally outside just to raise their concerns. As I imagined that scenario maybe every one

of us will used to fight against each other just to get some food and other basic needs.

The non-privileged ones will continue to suffer and will wait for his death, at the other

hand the privilege ones who will continue to survive. That situation will show or reveal

the words like ‘greediness’, ‘power’ and ‘social status’. I hope that we will not be there

and we will survive this COVID-19 virus. It goes hand in hand to defeat this invisible

enemy that destructs the humanity.

 RIZAL TECHNOLOGICAL UNIVERSITY
Boni Ave., Mandaluyong City
College of Business and Entrepreneurial Technology

3. What is the impact of COVID-19 Pandemic in MSME’s?

First let’s define what MSME is, MSME is Micro, Small and Medium Enterprise in

which engaged in industry, agri-business or services that has an asset size of up to 100

million and an employment size with less than 200 people. As we can see from the

definition it is clear that MSME is undersized business, it is not large entity like

corporations. Therefore, it is expected that it has limited capital and lesser manpower.

Based on what I’ve gathered from Philippine Business and Entrepreneurs’ Expo, the

percentage of all MSME’s here in the Philippines is 99.57% or having a total of 915,726,

from that figure we can see that MSME sector is wholly dominant in our country

because from urban areas they are used to put up industrial or service business and for

rural areas they used to promote agri-business because of their rich natural resources.

As we breakdown the 99.75%, the micro businesses constitute 89.63% equivalent to

829,795, it is anticipated that they will partake the huge percentage knowing the

business setting here in the Philippines, we all know that micro businesses are easy to

put up, in fact you just need small amount of capital and then you can easily start your

business, almost of them are sole proprietor. Moreover, the small businesses gather 9.5%

equivalent to 86,955, then it follows by medium businesses having a 0.44% constitute

4,018 and large businesses with 0.43% equivalent to 3,958. It is clear from the figures
 RIZAL TECHNOLOGICAL UNIVERSITY
Boni Ave., Mandaluyong City
College of Business and Entrepreneurial Technology

that we represented that the business activity here in our country is active. But the main

question is, what is the impact of COVID-19 Pandemic to MSME’s?

As we based on the figures that I’ve shown to you it is clear that micro businesses

are largely affected having a percentage of 89.63%, due to the crisis they are the one

who will suffer a lot because they are having a small capital and lesser workforce,

actually all of them are affected but the micro businesses are in the edge of it. If the

micro businesses will get burden because of their big percentage, it can affect greatly

our economy; same case with small, medium and large enterprise. As we further

discussed the impact of COVID-19 to MSME’s, the MSME’s employs 61.6% of total

labor force, therefore many employees are affected. Another thing, MSME’s

contribution to the GDP is 36.7%, it is firm to say they play an important role in our

economy, due to this crisis maybe our economy will get weaker. From our exports they

shared 59%, so it is hard enough to fill in the gap from the percentage lost because of

this Pandemic. I hope that this Pandemic will end from now and then on, in order to

secure the hopes and aspiration of every Filipino’s.

 RIZAL TECHNOLOGICAL UNIVERSITY
Boni Ave., Mandaluyong City
College of Business and Entrepreneurial Technology

4. As an entrepreneur, how can you help your community?

According to Investopedia, an entrepreneur is an individual who creates a new

business, bearing most of the risks and enjoying most of the rewards. The entrepreneur

is commonly seen as innovator, a sources of new ideas, goods, services and business or

procedures. According to its definition it is clear that an entrepreneur is innovator, it

means he or she did not stop to innovate for the things that can make difference for his

community and for his business. Being an entrepreneur is both risk and reward because

bearing the risk is part of business venture, if there is no risk, therefore there is no higher

income, and every risk constitutes high rewards. An entrepreneur is not stagnant because

he is dynamic at all costs, his mind is boundless, and he anticipate everything in order

for him to succeed. Basically, being an entrepreneur does not end for profit-making in

which it is the main goal of every businesses, actually this is the reason why we establish

a business. The question is, after you earned your money, does it mean that is the sole

purpose of your business? And how your business will go around beyond from its

purpose?

Many business venture nowadays are successful because they are not merely focus

on profit-making but how they can an impact for their community. As we all know,

community are the stakeholders and customers also, then they are the reason why the
 RIZAL TECHNOLOGICAL UNIVERSITY
Boni Ave., Mandaluyong City
College of Business and Entrepreneurial Technology

businesses are existing. Apart from that, every businesses helps the community by

giving them a jobs because every families cannot survive without an income, therefore

there is an entrepreneur who needs man-power in able to produce a products, from that

way they employ people and create their future for their families. Furthermore, an

entrepreneur makes a difference by having their ‘corporate social responsibility policy’

because of that policy they are also giving donations to the foundations, giving free

seminars to aspiring entrepreneurs, fund-raising projects and etc.. From that way, they

are also building a community, a community that is sustainable in every aspect. In

addition to that, as far as I remembered there is so called ‘social entrepreneur’ these type

of entrepreneur is helping other people by teaching them to create the certain product

and that product will be sold in the market. The best example for this is UNLAD

CORPORATION, actually they are helping other people by giving them jobs, they are

teaching on how create a garments and also eco-farming. In this way, they are not also

contributing to its business but for everyone. An entrepreneur impacts the community

by striving to help them and creates a difference for them. I hope that every entrepreneur

strive for that, not just for the show but for the empathy.
 RIZAL TECHNOLOGICAL UNIVERSITY
Boni Ave., Mandaluyong City
College of Business and Entrepreneurial Technology

5. As a student who has knowledge in Entrepreneurial Minds, what type of

business and products will you make that are suitable at this moment?

It is clear that this COVID-19 Pandemic creates a huge problem for everyone.

Actually, it distorts the humanity and continues to disrupt human lives. Based on the

recent report by Worldometers as of April 14, 2020 to be exact there is 1,930,979

confirmed cases, 120,074 deaths and 453,716 are recovered. These numbers are

continually rising because of non-available of antidote for it and lack of execution and

prevention for every country. Due to this, we all know that business establishments are

currently suspended especially the non-essential ones, only the essential ones are

capable of operating but there is limited movement also. The lockdown imposed by our

government caused many problems for every one of us, in fact it hinders our sources of

income, goods and services and safety. It is not available to go outside because of the

said virus, actually it travels 5 kilometers away thru micro-droplets that is why it is hard

to go outside anymore. As a student who has knowledge in Entrepreneurial Minds, I

will think about the best products or services that are suitable at this moment. As far as

I remembered during our discussion, we must precisely think what are primary needs of

every customer and from that we will come up a good product and services. Based on

what I observed, many of us are using mobile phones especially during this crisis
 RIZAL TECHNOLOGICAL UNIVERSITY
Boni Ave., Mandaluyong City
College of Business and Entrepreneurial Technology

because none of us will consider to go outside due to strict implementation of ‘enhance

community quarantine’ usually most of us will spent our day playing mobile games and

using social media sites because we are bored and in need of constant communication.

But before you can play and surf the net, you must have a load. Loading station is

important nowadays because most of us considered a ‘load’ as a need not just want

because we are living in this modern world that’s why it is not considered anymore a

want. This loading station has no hassle at all, in fact you can pay electronically or you

can transact to your classmates, friends or relatives etc. that you will pay it after

quarantine period. Furthermore, it also help the students to participate during online

classes especially for the one who have no WIFI connection, from that way they can

also catch up to the lessons and assignments that will be given. Another type of business

is suitable at this moment that can do by a student is being an online tutor specifically

in accounting, in that way we can also earn money and also gaining more experience at

same time. Teaching others can also improve your understanding on the specific concept,

as a matter of fact 90 percent of people teaching others can master the concept and

learning it easily.