APP 2

APPLIED
ENTREPRENEURSHIP
 INTRODUCTION

Credits: CreativeMarket.com

“It’s more fun in the Philippines” is the slogan of the department of Tourism to
attract the tourists coming from other countries. It is really more fun, because our
country is blessed with different beautiful sceneries and tourist’s destination. Do you
know that we have a lot of products, crafts and materials that we can buy and sell?
Putting these to use might help resolve the unemployment problem in our country.
Through entrepreneurship, we can offer products and services that can create many
jobs. In this lesson, we will be learning the things that an entrepreneur should
possess.
In our country, most of businesses are coming from small scale or micro-
finance business enterprise. One of the examples is the sari-sari store, a sole
proprietorship business that can cater the needs of our community. Even the gamers
of DOTA and ML sell their heroes in a high price. When they perform risk taking
ventures with their money, time and effort, they can be considered as entrepreneurs.
Entrepreneurship can be scary because there is no guarantee that the
business will work, and the entrepreneur may end up losing money for the first few
years. The entrepreneur must be willing to take risk in any business venture because
of the many obstacles he might encounter.
LEARNING OBJECTIVES

At the end of this lesson, you are expected to:

define what means to be entrepreneur;
compare the pros and cons of being an entrepreneur;
identify successful entrepreneurs and their achievements;
describe who becomes an entrepreneur;
list the key characteristics of an entrepreneur;
explore ways to build your business potential; and
explain the value of learning about entrepreneurship

MOTIVATING ACTIVITY

Entrepreneur

Grow
Credits: Style of Money / Finance
Blog Progress Invest

State one-word that describes an entrepreneur and explain?

Risk taker. I can describe risk taker in entrepreneur because if you have to
start business you should have to risk. Risking might fear us but itExpand
will lead us
Plan
to success. If we fail once, twice, trice then it’s not over yet we might fail many
times is because there’s something wrong and we need to fix it and risk many
things so that we become successful in business. Entrepreneur is a person to
that will handle the things in business and think what will be going to do in a
small business so that it will become big.
 PROCESSING ACTIVITY
In the picture given above, write your own thoughts about the five essential elements of
entrepreneurship. (Note. One to two sentences will do)
1. Plan
2. – you must plan because without planning things will not work as you imagine. Planning is
important because you can have a plan A and B if things might not work.
3. Progress
4. – after planning you must risk it so that you can see what is the result of the progress. In
order for the business sustain its expenses and for more profits the business will enlarge
the operation of the business.
5. Grow
6. – like planting a flower after you put the water into the seed with soil in few days it will grow.
Like in business after you sell your products your business will grow and be successful.
7. Invest
8. – starting your own business you must invest because without investing your own money
you can’t run a business. You have to risk by investing in your business even its not sure if
you it will be success.
9. Expand
10. – expand the business by your friends, relatives and family. Expanding your business will
lead you into famous business man/woman and also those who seek your product would
definitely get it.

What is your understanding about the word “Business”? (Note: two to three sentences will
do)
- Business is an income generating to earn a living and it will grow that people can
work with the business so they lived in a normal life. This is a buy and sell thingy you
will buy the materials of your product and sell them.

INPUT 1
Credits: Steve Mariotti. Entrepreneurship:
Owning your Future
Let us know the story of one of the successful entrepreneur in the Philippines.

(As told by Henry Sy’s son)

Today, I’m now going to feature the life story of the richest
man in the Philippines. He is no other than Henry Sy, the
retail magnate who owns all established 33 SM Malls and
also a banking magnate who owns Banco De Oro-
Equitable-PCI Bank and majority share in China Bank.
This is another inspiring story as we witness his rags to
riches story on how he built all SM Malls and became one
of the biggest bankers enabling him to become the richest man in our country
surpassing both Lucio Tan and the Ayalas.
Let’s learn and be inspired from another successful entrepreneur story as his
daughter Teresita Sy-Coson narrates the story of his father’s success:
Our company, SM, as many of you may already know, came from the hard work of
my dad, Henry Sy, Sr. It is a rags to riches story that even myself did not realize
until I went to trace his roots in China.
His journey from the thatched hut I saw there to the shopping centers he has today
is something that amazes even myself.
His determination, his discipline and his thriftiness have produced an astute and
street smart businessman who has influenced a lot of people. Including us, his
children.
My father’s perseverance during the different crises our country has gone through
has made our active business pursuits possible for a half century. True, he was
disappointed with the economy many times, but he never saw the reason to quit
and instead pursued his goals relentlessly.
He had many obstacles – both external and internal – in his business, and there
were times he could not understand why things had to be so complicated for him
to pursue his business objectives.
It has been written – and I can attest that it is true – that Henry Sy started from the
bottom.
He came to the Philippines at the young age of 12, and worked in his father’s small
sari-sari store more than 12 hours everyday to help him. It was located on
Echague St., which is now Carlos Palanca Sr. St. in Quiapo, Manila. There, he
devised ways to increase his income by developing small portions of products –
much like the sachets we see today in the supermarkets.
He was able to make multiple sales in order to make extra income, spending so
much time in the store that he had no time to go out and play with friends in the
neighborhood. It did not take a long time for him to realize, however, that he can
only do so much in a sari-sari store environment.
WWII came and the sari-sari store was looted and burned. He did a lot of buying
and selling of odd things during the war to enable the family to survive.
This must have provided him the hands-on training for his stamina in business. At
one time, he was hit by shrapnel while selling, and quite fortunately was brought to
the hospital by his good friend in a kariton.
Without that friend, he could have bled to death. He treasured that friendship and
later expressed his gratitude after the war by making that friend his partner in a
shoe store. The partnership lasted for more than 40 years until the shoe store had
to give away to the building renovations of the lessor.
After the war ended in 1945, he ventured into selling American shoes imported by
enterprising Gis.
He later saw the opportunities of opening a shoe store, and not long after he was
managing three shoe store in partnership with friends.
With the pleasure of a growing family while at the same time pursuing studies at
FEU in the early 50s, he sought more ways to augment his income.
He studied the market and decided to be different. While other young men went to
the US to pursue a higher education, he went on a long business trip to the East
Coast, and came home with a lot of merchandising ideas.
For a time, he was selling a lot of shoes, accessories, and leather goods, hoping to
change the way shoe manufacturers look at the industry.
Sensing a lot of opportunities, he decided to open SHOE MART – “SM” – the first
air-conditioned shoe store that merchandised shoes in a very inviting and classy
format. With the success of that store, he went on to open more shoe stores, but
he could not get enough suppliers.
Many shoe manufacturers at that time could not understand why they had to listen
to this shoe retailer who had very definite ideas on what he wanted to sell. They
did not cooperate by providing him with the volume he needed, and because of
that limitation, he gradually shifted to apparel – and thereafter-other merchandise –
with the help of my mother.
He was continuously learning from his customers, suppliers, and employees. This
on-the-job research gave him enough confidence to expand to a department store
chain. Many things in life grow out of needs, and to meet the needs, you become
determined. With determination you will take extra challenges and do things
differently – which will most likely bring success.
We opened our first department store in 1972, two months after Martial Law was
declared. The business had a slow start, but progressed steadily. During the
Martial Law years, he continued to open more department stores, reaching a point
wherein he could not get space he needed in the existing shopping centers during
that time. He then decided think long term, and invest in properties for malls, which
were patterned after suburban shopping centers, which he had been studying for
some time.
When we started the construction of our first mall in 1983, the Philippines was in
the midst of a debt moratorium and experienced hyper inflation. The economy
decline was further aggravated by the assassination of Ninoy Aquino. Many
bankers predicted our demise because my dad came from nowhere – he may had
a few department stores and shoe stores at that time, but he was not one of the
financial heavy-weights at that time.
Unaffected by criticism, and armed with sheer determination and optimism, he
persisted and opened in 1985 with our department store and supermarket and a
few tenants. Many potential lessees were saying no to lease offers.
At about the same time, given the social unrest of the times, our own Shoemart
Makati was faced with ugly strikes. He almost gave up, but through the
encouragement of his employees and customers, he continued. At that time, he
decided emotionally draining disturbances should not overpower him or detract
him from his goals. Since that time, he has not faltered in his confidence, and
became even more determined to continue the business. He also convinced
everyone of us in the organization to follow his optimism.
Later, we expanded, slowly building malls at that time to get our formula right. The
expansion was not without difficulties. When constructing Sta. Mesa and
Megamall, we were faced with delays in construction due to cement shortages and
the 1989 coups.
When the 1997 Asian crisis came, we were planning our mall expansion, including
the Mall of Asia, which was then envisioned to be the biggest mall in the region.
Because my dad felt the tsunami-like effects of the region wide crisis, which was
unlike any other he had experienced, we had to change plans. We deferred
opening the Mall of Asia, and went on with the opening of other malls.
We grew in numbers instead of size, serving different smaller markets. We have
also expanded our retail business beyond department stores to include
supermarkets, hardware stores, appliance superstores, and other retail formats.
At about the same time, we looked into the banking business – both at our bank
and at the industry. At the time, our main bank, Banco de Oro was a medium sized
bank. Because we were quite conservative in lending, the deluge of bad loans that
characterized the times did not affect us. Given that, we thought it was an
opportune time to grow amidst some instabilities. We reorganized and
strengthened our organizations for about three years and developed growth
strategies that started in the year 2000.
Encouraged by the consolidation program of Central Bank of the Philippines (BSP)
in making Philippine banks more competitive relative to the region, Banco De Oro
made few acquisitions because of the moratorium on banking. It acquired the Dao
Heng Philippines branch, the First eBank, the Banco Santander Philippines
branch, the United Overseas Bank branches, and most recently – Equitable PCI
Bank.
Opportunity is where you find it, not where it finds you. Crisis and weakness
indicate one can look for opportunities. Transforming problems into opportunities
can bring good returns. Prosperity and growth come only to a business that
systematically exploits its potentials and systematically optimizes its performances.
Our business – especially that of shopping centers is a long term business. It takes
at least eight years to pay back. We feel that the country will always be around,
and with Filipinos’ love for shopping, there will always be customers we can sell to.
We also have to continuously innovate. Our other retail formats like supermarkets,
hardware stores, appliance stores, home stores, toy superstores, baby stores, and
Watsons are continuously evolving with the shopping habits of our customers.
Because they frequently visit the store, we make sure we have new products all
the time so that their shopping experience will not be boring.
Our group’s policy is to look for opportunities at all times, and to be ready to act
when it comes. While crises may have brought opportunities, we continue our
plans in good or bad times with some changes to suit our demands of the time.
May Henry Sy’s success rubs off to us as well. As a final note, I would like to leave
this quote from Henry Sy: “There is no such thing as overnight success or easy
money. If you fail, do not be discouraged; try again. When you do well, do not
change your ways. Success is not just good luck: it is a combination of hard work,
good credit standing, opportunity, readiness and timing. Success will not last if you
do not take care of it.”
Source: https://www.lloydluna.com/motivation-from-henry-sy/

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life of Mr. Henry Sy.
- If you will enter in business you should have the determination in your dreams
and you should have to risk like Henry Sy. He work hard until he become
successful and also a costumer focused. So I’ve learned so much from the life
of Henry Sy that even in our young age we have a dream to fulfill our ambition
in life. We don’t have to be afraid to aimed high, to invest in a single centavo,
have a strong determination and hard work.