AFA- HORTICULTURE

(PERSONAL ENTREPRENEURIAL
COMPETENCIES (PEC’S)
ACROSS MARKET AND
ENVIRONMENT)
Module 1

This instructional material was collaboratively

developed and reviewed by educators from public
and private schools, colleges, and/or universities. We
encourage teachers and other education
stakeholders to email their feedback, comments, and
recommendations to the Department of Education at
action@deped.gov.ph.

We value your feedback and

recommendations.

Department of Education
Republic of the Philippines
Technology and Livelihood Education – Grade 9
AFA-Horticulture
Learner’s Material
First Edition, 2014

Republic Act 8293, section 176 states that: No copyright shall subsist in any
work of the Government of the Philippines. However, prior approval of the
government agency or office wherein the work is created shall be necessary for
exploitation of such work for profit. Such agency or office may, among other things,
impose as a condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand

names, trademarks, etc.) included in this book are owned by their respective
copyright holders. Every effort has been exerted to locate and seek permission to
use these materials from their respective copyright owners. The publisher and
authors do not represent nor claim ownership over them.

Published by the Department of Education

Secretary: Br. Armin A. Luistro FSC
Undersecretary: Dina S. Ocampo, Ph.D.

Development Team of the Learner’s Material

Consultant: Andres Z. Taguiam, Phd.
Authors: Ofelia F. Bernardo, May Martinez-Leano, Mario S. Donio,
William V. Engay, Levi P. Siazar
Validators/Reviewers: Pedrito S. Nituoral, Rey G. Aleman
Language Editor: Naida U. Rivera,
Illustrator : Erich David Garcia
Subject Specialists and Management: Emmanuel S. Valdez, Albert B. Erni,
Layout Artists/Encoders: Jocelyn M. Gamo, Joel G. Castillo

Department of Education-Instructional Materials Council Secretariat

(DepEd-IMCS)
Office Address: 5th Floor Mabini Building, DepEd Complex
Meralco Avenue, Pasig City
Philippines 1600
Telefax: (02) 634-1054 or 634-1072
E-mail Address: imcsetd@yahoo.com
 Table of Contents

Module - 1 Personal Entrepreneurial Competencies (PEC’S)

Across Environment and Market

Entrepreneurship and Personal Entrepreneurial

Competencies (PEC’S) .............................................................. 2
Introduction .................................................................................................. 2
Learning Competencies/Objectives ............................................................. 2
Pre-Diagnostic Assessment ......................................................................... 3
Reading Resources and Instructional Activities .......................................... 4
What to know? ............................................................................................ 4
What started businesses? ............................................................................ 5
Need-Based Business Opportunities ........................................................... 5
Supply of Raw Materials is Abundant in the Locality .................................... 6
What Makes up a Successful Entrepreneur? ............................................... 6
Characteristics of Successful Entrepreneurs .............................................. 6
Lifestyle of Successful Entrepreneurs .......................................................... 8

The Personal Entrepreneurial Competencies (PEC’S)

of Successful Entrepreneurs ................................................. 16
Understanding the Market and Environment
of Businesses......................................................................... 16
Introduction ............................................................................................... 16
Learning Competencies/Objectives ........................................................ 16
Pre-Diagnostic Assessment ...................................................................... 17
Reading Resources and Instructional Activities ..................................... 18
What to know? ......................................................................................... 18
Common Characteristics of a Business Market ........................................ 19
The Legal Forms of Business ................................................................... 19
The Different Industries in the Country Today ......................................... 20
Checking the Needs, Wants, and Demands of the
Market Through Environment Scanning Process .................................. 21
Determining the 4M’S of Production.......................................................... 21
The Importance of Acquiring a Start-up Capital ...................................... 22
Factors in Selecting the Best Business Location ...................................... 23
Hiring and Training Personnel ................................................................... 24
Registration of a New Business .............................................................. 24
Practicing Simple Record Keeping ............................................................ 24
What to process? ................................................................................... 24
What to reflect and understand? ............................................................. 26
Supplementary Reading: The SWOT ...................................................... 26
What to reflect and understand? ............................................................... 27
What to transfer? .................................................................................... 27
Supplementary Reading: The Business Plan .......................................... 27
Summative Assessment............................................................................ 37
Summary/Synthesis/Feedback ................................................................. 39
References................................................................................................ 39
 INTRODUCTION

This Learner’s Materials on Conducting Pre-Agricultural Farm Operations

contains various Learning Competencies designed to develop the knowledge,
skills, and attitude of Grade 9 Technology and Livelihood (TLE) students. It covers
four (4) modules namely: Personal Entrepreneurial Competencies (PECs) across
the environment and market, 2. Preparing farm tools, implements, and simple
equipment, 3. Preparing and maintaining farm tools, implements, simple
equipment, and facilities, and 4. Securing farm tools, implements, simple
equipment, and facilities. Each module is subdivided into several lessons with the
following parts: I – Introduction, giving an overview of the lesson; II – The Learning
Competencies/Objectives contain specific topics about a certain Learning
Competency; III – The Pre-Diagnostic Assessment provides evaluation of the prior
learning of students; IV – the Reading Resources and Instructional activities
include the content and activities about what the students must know, what to
process, what to reflect and understand, and what to transfer. These activities
could be done in school, at home, and in the community. V – The Summative
Assessment evaluates how much the students have learned; and VI – The
Summary/Synthesis/Feedback give generalization and enhancement on a specific
module. A glossary section is at the back page of the Learner’s Materials as further
reference, and a List of References to acknowledge the sources of the ideas taken
from them.

Conducting pre-agricultural farm operations is one of the Core

Competencies in Agricultural Crop Production NC II. Students must be able to take
the five (5) core competencies to finish the course. The teacher must conduct
Institutional Assessment towards the end of the school year to evaluate the
underpinning knowledge, skills, and attitudes of the students based from the set of
criteria in the Training Regulations/prepared by Technical Education and Skills
Development Authority (TESDA)

1
 AFA - HORTICULTURE GRADE 9
Module 1

PERSONAL ENTREPRENEURIAL COMPETENCIES (PEC’S)

ACROSS MARKET AND ENVIRONMENT

Content Standards Performance Standard

The learner demonstrates The learner recognizes his/her Personal

understanding of one’s Personal Competencies (PEC’s) across horticultural
Competencies (PEC’s) across products and services and prepares an
horticultural products and activity plan that aligns with that of a
services practitioner/entrepreneur in Horticulture

ENTREPRENEURSHIP AND PERSONAL

ENTREPRENEURIAL COMPETENCIES (PECS)

Introduction

Everybody loves to earn money and accumulate wealth and in the present
times, we have many ways to achieve it. The most common way is to offer good
quality agricultural products and services to your friends and to other people in the
community and even in the online arena that can cover a global market. All the
business activities undertaken in selling products and services to people is known as
entrepreneurship and the one who manage these business activities is an
entrepreneur. Students are encouraged to develop skills required in entrepreneurial
activities. Many wealthy people in the country had started in small and community-
based entrepreneurial activities.

Learning Competencies/Objectives

1. Identify the different factors to be considered in setting up a business

2. Assess one’s PEC’s, in terms of, characteristics, lifestyle features , and skills
3. Assess practitioner’s entrepreneurial competencies, in terms of,
characteristics, attributes, lifestyle, skills, and traits

2
Pre-/Diagnostic Assessment:

Direction: Choose the letter of the correct answer. Write your answer on your test
booklet.
1. Which of the following is a common activity of an entrepreneur?
A. Advocate against global warming
B. Deliver goods and services to the market
C. Volunteer in a community clean-up activity
D. Preach in different churches or group of churchgoers
2. The saying “Necessity is the mother of all inventions” means ____________.
A. Necessity is invented by mothers
B. Our mother told us what we really need
C. Basic commodities are made for mothers
D. Basic commodities are made to satisfy our needs
3. What really makes up a successful entrepreneur?
A. Ability to study a market
B. Ability to act like a customer
C. Knowledge, skills, and money
D. Knowledge, skills, and attitude
4. People who always feel positive in every effort in order to achieve something
are known to have ______________.
A. Courage C. Self-confidence
B. Optimism D. Self-control
5. A set of skills that entrepreneurs must possess to take control of the
challenges in business is known as _____________.
A. Personal business capacities
B. Personally preferred competencies
C. Professional enterprise competencies
D. Personal entrepreneurial competencies
6. Information seeking and goal setting belongs to what PEC’s cluster?
A. Achievement cluster C. Planning cluster
B. Empower cluster D. Power cluster
7. Which of the following best describes a risk-taker?
A. Accomplish targets on time as agreed with customers
B. Paying keen attention to the needs and demands of people
C. Anticipating a loss and countering it with feasible alternatives
D. Acting as the prime mover of resources in the achievement of
objectives
8. Systematic planning and monitoring includes the following except one.
A. Set calculated goals and objectives
B. Make a well organized plan with clearly defined methods
C. Be logically flexible for the emergent constraints, challenges, and
needs

3
 D. Periodic gap-proof monitoring and response activities must be
scheduled to determine emergent constraints, challenges, and
needs
9. When entrepreneurs face a significant obstacle with a well planned action,
they have Personal Entrepreneurial Competency known as ___________.
A. Initiative C. Persuasion
B. Persistence D. Risk-taking
10. Luis is good in convincing his customers that his product is not only of best
quality but also safe to use. Many of his customers bought and even return to
buy more of the product because they want to share it to their friends. What
personal entrepreneurial competency does Luis has?
A. Persuasion
B. Goal setting
C. Self-confidence
D. Demand for efficiency and quality

READING RESOURCES AND INSTRUCTIONAL ACTIVITIES

What to KNOW:

Activity #1:

Before immersing ourselves into the exciting discussion about setting up

and running a business in the most sustainable ways, we will first do inspiration-
drawing activity through the conduct of casual interviews with entrepreneurs in the
community. Look for a partner in doing this. Identify 3 retailers, 3 service providers,
and 1 producer. Use the template below for the interview and in tracking the
answers of the selected entrepreneur-respondents. Discuss the responses with
your partner and present to your class a brief analysis/report of the interview.

Responses of Entrepreneurs
Interview
Producer
Guides Service Comments
Retailers (commercial
Providers
scale)

Students’ guide For For example, Producer of Our reactions

questions to be example, Plant Rental Vegetables, to
used but not Fruit and Services, Fruits,Seedlings entrepreneurs
limited to the Vegetables Landscaping of Fruit Trees, responses
following: Vendors, Services, Ornamental and
Ornamenta Landscape Flowering
l Plants Maintenance Plants,
Retailers Services

4
 Why did you
choose this
business?
How did you
start it?
What are the
challenges you
met?
How did you
counter all
those
challenges?
Did you
experience
losses? How
did you
respond to
losses?
Can you share
some
strategies in
keeping
customers?
What personal
qualities help
this business
flourish up to
now?
Are you afraid
of your
competitors?
Why?
Can you give
us some pieces
of entrep-
based advice?

WHAT STARTED BUSINESSES?

Need-based business opportunities

A popular adage that says, “Necessity is the mother of all inventions” simply

5
means that we develop technologies to produce something that will answer
mankind’s diverse needs. In 1980’s the most popular way of long distance
communication is through a snail mail, telegraph, or long distance telephone calls
which is not only expensive but also consume much of our time. Because there is a
need for faster communication flows as global economy has grown into scale,
cellular phones came to the market to answer our communication-related needs.
Today, global communication is already at the tip of our fingers.

SUPPLY OF RAW MATERIALS IS ABUNDANT IN THE LOCALITY

Business investors are happy if the raw materials and other resources are
readily available in the community. Aside from secured volume of quantity, this
opportunity is cheaper as when the entrepreneur outsource production inputs from
other places.

WHAT MAKES UP A SUCCESSFUL ENTREPRENEUR?

Knowledge alone does not guarantee success in a business. Skills developed

can greatly help in the production process but it is not an assurance to the
sustainability of the business as well. It takes right attitude combined with adequate
knowledge, competitive skills, and upheld passion to make significant revenues,
profit, and sustainability of the chosen business.

Accomplished entrepreneur have so much to share to business enthusiasts

like us. Many are not born with a silver spoon meaning most of them came from poor
families. They have passion to produce and sell to an identified market or even to
serve target clients which contributed to their success. Likewise, they accumulated
wealth because they possess entrepreneurial characteristics, lifestyles, and skills,
suited to their chosen businesses.

CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS

The set of characteristics common to entrepreneurs who excel in their

businesses are the following:

Be a someone who always feel positive in every effort in

1 Optimism
order to achieve something.
Once the plan to do entrepreneurial activities is ready to
2 Self-confidence be started, assure yourself to overcome risks and many
other forms of business constraints.
In any situations that needs to be handled, never react
3 Self-control immediately. Instead respond to the situation in the most
legal and beneficial ways.
4 Courage Be a risk-taker with alternative courses of action on hand.

6
 Business risks are always there however, one’s
readiness to face, reduce or eliminate it depends on how
brave you can be.
Sustain every effort you have started. Profit may dwindle
5 Commitment in the most unacceptable way but never hesitate to
invoke your right to persist and regain a lost glory.
Do not stay inside a box which means go out and flaunt
your potential to be effectively different. Use your
6 Creativity imagination to create marketable ideas and push it. If you
thought of a potentially good ones, be the first to act upon
it. Chances are, others’ have thought about it, too.
Be precise in your principles or standards. Goals coated
Well-defined
7 with well defined values provide guidance to what your
values
business must achieve with reduced inconveniences.
Competitive entrepreneurs are fueled to succeed.
8 High energy level Passion in the endeavor is an energy enhancer. Success
in business comes from being passionately energetic.
Guide, direct and influence people according to what
benefits the business. People and the many ways you
9 Leadership ability
may lead them can spell success or failure of your
business.
As a business leader, you are accountable to everyone
Desire for
10 and everything in the business including your strategies.
responsibility
Value everything and everyone as you value oneself
One’s ability to choose good decision may be innate or
Decision-making experience-based. Learn the art and the systematic and
11
skills methodical process of decision-making. Good decisions
must be sensible and culture-sensitive
Pay close attention to what the market generally is saying
Desire for
to your products or services. The ultimate consumer of
12 immediate
the product and services must be heard and become the
feedback
bases of further product or services development
Develop a competitive attitude. Right pricing and quality-
Strong desire to based product development or service delivery will draw
13
achieve more business revenues. Work with the goals in mind
and take the best way to achieve them
Bad experiences in business should never be taken as
Ability to learn traumatic. Options that supposedly had prevented those
14
from past failures to happen must be noted and archived. Benchmarked on
past experiences to know which decision to take.

Elizabeth Bowen (1899 - 1973) an Irish novelist and short-story writer, wrote,
“The best that an individual can do is to concentrate on what he or she can do, in the
course of a burning effort to do it better”.

7
LIFESTYLE OF SUCCESSFUL ENTREPRENEURS

People who plan to live in the world of

entrepreneurship will live a life different from “ENTREPRENEURSHIP
that of an ordinary citizen. They adapt to the IS LIVING A FEW YEARS OF YOUR LIFE
new lifestyles gradually and professionalize LIKE MOST PEOPLE WON’T. SO THAT,
every task embedded into it. They follow YOU CAN SPEND THE REST OF YOUR
established standards and even customize LIFE LIKE MOST PEOPLE CAN’T.”
Annonymous
some to fit to the tasks particular to a business
type. As the business is sustained and
entrepreneurs developed expertise in all tasks including constraints and problem
solution, excellent decision making is easier to achieve.

According to Valdez, et.al, the following are the common lifestyle features of
an entrepreneur:
It is one of the highest lifestyle considerations that
entrepreneurs must adapt. Although inspired by their freedom
A sense of freedom
to lead and control all elements of the business, they must
and control
exercise careful in choosing the right course of actions and
decisions to take.
Choosing their own time for work is a privilege of
Flexibility of time entrepreneurs. This feature will allow them to choose their
most productive time.
Entrepreneurs are the greatest asset of their businessses, a
check and balance between the actual accomplishment of
tasks and physical and mental work capacity must be
Energy and stamina
established. Rest and relaxation can help maintain good
physicality and overall health. Proper stress management is
also of primal importance.
A family does not only serve as inspiration but also as a group
of people to oversee the welfare of the entrepreneurs.
Family support
Suggestions and recommendations of a family member must
be carefully considered.
Remember that seeking advise from specialist is helpful in
Professional support decision making process. There are people more informed
than us in a particular area of expertise.

8
 THE PERSONAL ENTREPRENEURIAL COMPETENCIES (PECS) OF
SUCCESSFUL ENTREPRENEURS

There are two major reasons why

many people failed in their attempt to do
entrepreneurial activities. First, people who
are starting entrepreneurial activities may
only have insufficient experiences to address
the problems posed by the numerous
external business constraints. Second, they
lack sufficient skills to lead the people and
make the products and services competitive
in the market. Low profit of the business will
create consequent problem and many more
problems in the future. Thus, anyone who
wants to succeed in a business arena must
be equipped with the different Personal
Entrepreneurial Competencies or PEC’s, a
set of skills that entrepreneurs must possess
to take control of the challenges in business.
PEC’s are the key abilities of entrepreneurs’
success in business.

PEC’s are clustered into three clusters according to its area of application:

Achievement Cluster
 Pay attention to the needs and demands of people
 Never procrastinate. Act immediately on marketable ideas
Opportunity  The common business are well competed in the market
Seeking and while unique ones offer lower competition resulting to higher
Initiative revenues and profit
 Calculate risks by identifying the most beneficial alternative
courses of action to minimize effect of risks in the net profit
Risk Taking  Be proactive. Anticipate a loss and counter it with feasible
alternatives
 In business realities, seasoned entrepreneurs sometimes
take riskier business to get higher profits
Demand for  Perform business tasks better, faster, cheaper, but do not
Efficiency and put safety and quality aside
Quality  Accomplish tasks by meeting or exceeding standards of
excellence
 Face a significant obstacle with a good plan of action
 Identifies a good alternative to every decision to meet

9
 challenge or overcome an obstacle
Persistence  Act as the prime mover of resources in the achievement of
goals and objectives
 Offer personal sacrifices or give extraordinary efforts in
Commitment completing tasks
to the Work  Accomplish targets on time, as agreed, to keep customers
Contract satisfied
Planning Cluster
 Gather data and information or feedbacks from clients,
suppliers, and competitors and use those for the
Information improvement of products or services
Seeking  Study the market personally for innovation of new product
development
 Talk with experts for technical advice
 Sets goals and objectives which are specific and must
guarentee customer satisfaction
Goal setting  Set calculated goals and objectives
 Make a well organized plan with clearly defined methods
Systematic  Be logically flexible for the emergent constraints, challenges,
Planning and and needs
Monitoring  Periodic gap-proof monitoring and response activities must
be scheduled to determine emergent constraints, challenges,
and needs
Power Cluster
Persuasion  Always ready to give facts and benefits to convince
and customers to patronize products and services offered.
Networking  To accomplish the business objectives, key people can be
used as agents or chanels to hasten product and services
delivery to customers
Independence  Develop self-trust in the attainment of goals and objectives
and self-  Do not need external approval before acting constraints and
confidence challenges. Being, consultative does not purely mean
dependence on others advice. An entrepreneur must be
brave enough to use one’s ability to chose which alternative
course of action is the appropriate decision.

What to Process:

Activity #2:

This is a self examination activity. After knowing the different characteristics

that an entrepreneur must possess, examine yourself if you have these

10
characteristics too. Simply put check (/) if that particular characteristic is present in
you or an x (X) if you do not possess it. Comment on your own status by giving
possible options that can help you acquire it.

Realizations
Do I have this?
Characteristics of an entrepreneur (What are my options?)
YES(/) NO (X)
1 Optimism
2 Self-confidence
3 Self-control
4 Courage
5 Commitment
6 Creativity
7 Well-defined values
8 High energy level
9 Leadership ability
10 Desire for responsibility
11 Decision-making skills
12 Desire for immediate feedback
13 Strong desire to achieve
14 Ability to learn from past failures

What to REFLECT and UNDERSTAND:

Activity #3:

Consider the PEC’s of successful entrepreneurs. Compare these

competencies with you. As a growing individual can you develop these in yourself?

Do I have Realizations
this? (If Yes how can I
Competencies of an entrepreneur improve this?)
YES NO
(If NO what will I do to
(/) (X) acquire it)
Opportunity Seeking and Initiative
Risk Taking
Demand for Efficiency and Quality
Persistence
Commitment to the Work Contract
Information Seeking
Goal setting
Systematic Planning and Monitoring

11
 Persuasion and Networking
Independence and self-confidence

What to TRANSFER:
Activity #4:

Let us match the result of our activity #1 with the standard characteristics,
lifestyle, and skills of our interviewees. Do you think that their businesses will be
sustained? Support your answer and present it to the class. Use the template in
Activity #2 and Activity #3 to help you analyze and forecast the sustainability of
their businesses.

Responses of Entrepreneurs
Producer
Service
Retailers (commercial
Providers
scale)
Personal Entrepreneurial
REFER TO THE RESPONSES IN
Competencies (PEC’s)
ACTIVITY #1. Check if the Respondents
above possess the PEC’s enumerated in
the first column. Put check (/) if
observed and x (X) in not observed
Opportunity Seeking and Initiative
Risk Taking
Demand for Efficiency and Quality
Persistence
Commitment to the Work Contract
Information Seeking
Goal setting
Systematic Planning and
Monitoring
Persuasion and Networking
Independence and self-confidence
GENERAL ANALYSIS
Sustainability of business (Do you
think the entrepreneur-respondent
can sustain their businesses?
Enumerate your justifications)

12
 Responses of Entrepreneurs
Producer
Service
Retailers (commercial
Providers
scale)
Lifestyles of Entrepreneurs
REFER TO THE RESPONSES IN
ACTIVITY #1. Check if the Respondents
above possess the lifestyle features
enumerated in the first column. Put
check (/) if observed and x (X) if not
observed
A sense of freedom and control
Flexibility of time
Energy and stamina
Family support
Professional support
GENERAL ANALYSIS
Sustainability of business
(Do you think the entrepreneur-
respondent can sustain their
businesses? Enumerate your
justifications)

Finally, make a matrix of recommendations in order to sustain the

respondents’ respective business:

Recommendations
(Give recommendations, as options 1 and 2, for
Entrepreneur-Respondent the sustainability of the respondents
entrepreneurial activities)
Option 1 Option 2
Retailer
Service Providers
Producer (Commercial Scale)

Summative Assessment
Direction: Choose the letter of the correct answer. Write your answer on your test
booklet.

1. Which of the following is a common activity of an entrepreneur?

A. Advocate against global warming
B. Deliver goods and services to the market
C. Volunteer in a community clean-up activity
D. Preach in different churches or group of churchgoers

13
2. The saying “Necessity is the mother of all inventions” means
A. Necessity is invented by mothers
B. Our mother told us what we really need
C. Basic commodities are made for mothers
D. Basic commodities are made to satisfy our needs
3. What really makes up a successful entrepreneur?
A. Ability to study a market
B. Ability to act like a customer
C. Knowledge, skills, and money
D. Knowledge, skills, and attitude
4. People who always feel positive in every effort in order to achieve something
are known to have
A. Courage C. Self-confidence
B. Optimism D. Self-control
5. A set of skills that entrepreneurs must possess to take control of the
challenges in business is known as
A. Personal business capacities
B. Personally preferred competencies
C. Professional enterprise competencies
D. Personal entrepreneurial competencies
6. Information seeking and goal setting belongs to what PEC’s cluster?
A. Achievement cluster C. Planning cluster
B. Empower cluster D. Power cluster
7. Which of the following best describes a risk-taker?
A. Accomplish targets on time as agreed with customers
B. Paying keen attention to the needs and demands of people
C. Anticipating a loss and countering it with feasible alternatives
D. Acting as the prime mover of resources in the achievement of
objectives
8. Systematic planning and monitoring includes the following except one
A. Set calculated goals and objectives
B. Make a well organized plan with clearly defined methods
C. Be logically flexible for the emergent constraints, challenges, and
needs
D. Periodic gap-proof monitoring and response activities must be
scheduled to determine emergent constraints, challenges, and
needs
9. When entrepreneurs face a significant obstacle with a well planned action,
they have Personal Entrepreneurial Competency known as
A. Initiative C. Persuasion
B. Persistence D. Risk-taking
10. Luis is good in convincing his customers that his product is not only of best
quality but also safe to use. Many of his customers bought and even return
to buy more of the product because they want to share it to their friends.
14
 What personal entrepreneurial competency does Luis has?
A. Persuasion
B. Goal setting
C. Self-confidence
D. Demand for efficiency and quality

SUMMARY/SYNTHESIS/FEEDBACK

We have studied the different elements necessary in setting up a business

as well as acknowledged the different factors influencing the different
entrepreneurial activities. Of course, most of us perceive business as a complex
activity. The market is so diverse and if we fail to consider one factor which directly
affects our business, we will have to face lots of challenges as consequences.
Albeit challenging, we must remember that wealth accumulation as a return of our
legal investments will also give others opportunities through employment or avail
from our products and services.

The different characteristics, lifestyle, and Personal Entrepreneurial

Competencies or PEC’s of successful entrepreneurs we learned will surely inspire
us to do our best to start our own business. Be optimistic and take the risks. Use
the PEC’s we learned and progress into a life full of challenges that will hone us to
become one of the most successful entrepreneurs, one of these days. Good luck!

References:

http://www.businessdictionary.com
Microsoft® Encarta® 2009. © 1993-2008 Microsoft Corporation
Albarico J.M., Celarta C.B, Fernando E., and Valdez E.S. 2011.
Agriculture and Fishery Arts I. United Eferza Academic Publications, Co.,
BagongPook, Lipa City, Batangas 4217.

15
 PERSONAL ENTREPRENEURIAL COMPETENCIES
(PEC’S)
ACROSS MARKET AND ENVIRONMENT

Content Standards Performance Standard

The learner demonstrates understanding The learner independently generates
of Market and Environment across a business idea related to
Horticultural products and services Horticulture based on the analysis of
environment and market in
Horticulture

UNDERSTANDING THE MARKET

AND ENVRINOMENT OF BUSINESS

Introduction

Entrepreneurs with enough knowledge and background in the market and

environment where their businesses operate will have better strategies and
decisions and will find it easier to sustain business activities. The intended market
of a particular product and service must be carefully studied before and during the
actual operations of the business. Many entrepreneurs failed because of a very
simple reason; there is no enough information gathered about the target market,
consequently, they incurred so much losses leading to bankruptcy.

Learning Competencies/Objectives
1. Determine the common characteristics of a business market
2. Identify the legal forms of business
3. Describe the different industries in the country today
4. Map and analyze the opportunities offered by the industries in the community
5. Check the needs, wants. and demands of the market through environmental
scanning process
6. Determine the 4M’s of production
7. Discuss the importance of acquiring a start-up capital
8. Make a business plan
9. Apply the standards in selecting the best business location
10. Assess the internal and external environment of the business through
Strength, Weaknesses, Opportunities, and Threats method of business
assessment
11. Practice simple record keeping

16
 Pre-/Diagnostic Assessment:

Direction: Choose the letter of the correct answer. Write your answer on your test
booklet.
1. It is a group of people with economically important needs and demands
which opens entrepreneurial opportunities to everyone.
A. Environment C. Geography
B. Ethnicity D. Market
2. This type of business is owned by only one person.
A. Cooperative C. Partnership
B. Corporation D. Sole Proprietorship

3. Which of the following is not considered an emerging industry in the

Philippines?
A. Agribusiness C. Creative Industries
B. Power and utilities D. Renewable Energy
4. In the 4M’s of production, which M refers to the persons in the business
known as the labor force?
A. Machines C. Materials
B. Manpower D. Money
5. The process of recording the money received and spent by the operations of
the business is known as
A. Bookkeeping C. Administering
B. Booking D. Posting
6. Which combination is focused to the assessment internal of the business?
A. Opportunities and threats C. Strengths and Threats
B. Strengths and weaknesses D. Weaknesses and Threats
7. Which combination is focused to the assessment external of the business?
A. Opportunities and threats C. Strengths and Threats
B. Strengths and weaknesses D. Weaknesses and Threats
8. Place the indicators found inside the box at the right into the third column of
the matrix at the left. Group the indicators correctly.

Group Part Of Business Plan A. Competitors analysis

B. Product description
A C. Maintenance and repair
Production
______ D. Promotional strategies
Plan
_ E. Sources of equipment
B F. Terms and conditions of purchase
Marketing
______
Plan
_

17
Which of the following is the correct grouping of the six indicators in the box?

A. C.

Group Part Of Business Plan Group Part Of Business Plan

A Production Plan A, B, D A Production Plan C, D, A

B Marketing Plan C, E, F B Marketing Plan B, E, F

B. D.

Group Part Of Business Plann Group Part Of Business Plan

A Production Plan A, C, E A Production Plan C, E, F

B Marketing Plan D, B, F B Marketing Plan A, B, D

9. Which business principle is applicable in products and development and

marketing?
A. Pay attention to the needs and demands of the market.
B. Your own needs and demands are the same with others.
C. Follow the result of a national survey of needs and demands.
D. Ask researchers in other communities about their needs and demands.
10. What is the reason why an aspiring entrepreneur must make a sound and
impressive business plan?
A. A sound and impressive business plan commands tax rebates.
B. A sound and impressive business plan attracts more customers.
C. A sound and impressive business plan is likely to be approved for a
loan package.
D. A sound and impressive business plan can improve a particular
segment of a market.

Reading Resources and Instructional Activities

What to KNOW:

Activity #1:

Let us do simple community mapping activity to develop a barangay-based market

profile. Use the template below in posting accurate and relevant data of our
barangay.

18
 Dimension Data to be gathered Data
Market Number of households
demographics
Number of Retailers of various products
Number of wholesalers of various
Number of
products
businesses
Number of producers (specify products)
Number of service-based businesses

1. COMMON CHARACTERISTICS OF A BUSINESS MARKET

Market refers to a group of people with economically important needs and

demands which opens entrepreneurial or business opportunities to everyone.

Market is a socially, politically, and economically organized people whose

needs and demands are based on tradition, culture, and technology. Enumerable
business opportunities are open in a market. Their needs and demands are
enormous depending on the class of people being referred to.
These classes of people are known as market segments. These may be
high-end, middle-end, and low-end market segments. Each segment will have
varying needs of various products and services.

Entrepreneurs must be skillful enough to address needs and demands of the

market. Many successful entrepreneurs’ secret of success is just paying attention
to the markets’ needs and demands and later they accumulated so much wealth. A
need or demand-based business will always have a share of market.

2. THE LEGAL FORMS OF BUSINESS

There following are 3 legal forms of business and their characteristics,

advantages and disadvantages:

Forms Characteristics Advantages Disadvantages

Sole  Owned by only 1  Very easy to  Owner-manager is

Proprietorship person who is establish required to render
responsible for the  Decision comes full operation time
whole business from 1 person only  No one else can
 The owner can share in the
assume the role of financial burden of
manager, finance the owner
officer, and worker  In case of financial

19
 instability, the firm
can dissolve
easily.
 2 persons have  Comparatively  Decision making is
combined easy to establish shared between
resources and  There is check and the two owners
skills balance among  In times of partner
Partnership  Any of the 2 partners only conflict, the
partner can act as business is at risk
financier or  Limited funding
manager may constraint
 They can also business
share operations
responsibilities and
roles in the
business
operations
Corporation  2 or more persons  Business risks are  The complex
own the business shared by many organizational set-
 Aside from the people up impose a long
owners, many  If business is line of more
people known as good, growth is expensive ways of
shareholders, are maximized due to control
engaged in a bigger capital  Complex decision
corporation through  Burdens in the making process
their investment operations are will delay operation
known as shares or shared by various
stocks specialized
individuals

3. THE DIFFERENT INDUSTRIES IN THE COUNTRY TODAY

There are many established and emerging industries in the country. Having
mapped all of those in the community will give a would-be entrepreneur a chance to
examine what entrepreneurial opportunities it would bring to the community. Once
these opportunities are identified, entrepreneurs will lay down their plan of actions
and then start the business activities.
The following are the key industries distributed all over the country. Some or
may be all of them are located in your locality:
1. Agribusiness
2. Cyber services
3. Health and Wellness
4. Hotel, Restaurant and Tourism
5. Mining
6. Construction
7. Banking and Finance
8. Manufacturing
20
 9. Ownership Dwellings and Real Estate
10. Transport and Logistics
11. Wholesale and Retail Trade
12. Overseas Employment
13. Creative Industries
14. Diversified/Strategic Farming and Fishing

We also have emerging industries:

15. Creative Industries

16. Diversified/Strategic Farming and Fishing
17. Power and Utilities
18. Renewable Energy

CHECKING THE NEEDS, WANTS, AND DEMANDS OF THE MARKET

THROUGH ENVIRONMENTAL SCANNING PROCESS

The needs and demands of the community can be determined through

environmental scanning. In this process, an aspiring entrepreneur must make a
thorough examination of the target market before a particular business is set. Many
elements of the target market can change from month to month or year to year,
thus, updated data and information of the following must be gathered shall become
the bases of setting up the planned business.

a. Demographic data such population size, growth rate.

b. List of competitors which is available in the Department of Trade and Industry.
c. List of Suppliers which can also be sourced from Department of Trade and
Industry.
d. Result of a Reliable Mini-Survey using considerable samples of target market.

DETERMINING THE 4M’S OF PRODUCTION

Raw materials, whether local or outsourced, are processed into goods to be

sold to an identified market or segments of the market. This economic activity is
referred to as production.

Success in production is strictly determined with four (4) factors popularly

known as the 4M’s:

Refers to all persons in the business who are also

Manpower popularly called labor force. That means the word
manpower includes the entrepreneur himself.

21
 It known to be the life juice of the business and has to do
with the economic status of the business. These can be
Money in paper bills or coins, generally used to pay for goods
and services, repayment of debts, and saving or restoring
purchasing power of the business.
These can raw materials or finished products which shall
Materials undergo certain process or combined which shall end as
the expected output of production.
Any semi or fully-automated devices that are used in
Machines converting raw materials into marketable products or
outputs.

4. THE IMPORTANCE OF ACQUIRING A START-UP CAPITAL

Business capital, usually in the form of money, is an indispensable factor to

start a new business. It is considered a working capital because it will keep the
operations going. Entrepreneurs must secure enough capital to start and to sustain
business operations.

Raising the needed capital is not a problem for the wealthy families.
However, if you do not have the cash on hand yet, you need to consider favorable
sources. Would-be entrepreneurs must carefully choose which capital source to
take. Money lenders which offer high interest are always not a good choice. The
following are the possible sources of the start-up capital for any types of
businesses to be established:

SOURCES ADVANTAGES DISADVANTAGES

Personal No interest payment to be paid in Usually it takes some

Savings case of bankruptcy, no one will time to save enough
run after the entrepreneur for money to start a
legal actions business

Entrepreneur has full control over

future net profit generated.

Family Savings Low or no interest at all will be In rare cases, if

charged to the would-be problem exist between
entrepreneurs parties, capital may be
taken in partial or at

22
 Monthly amortization may not be once by parents.
charged depending on the
agreements.

External There are many well-reputed Monthly amortization

Sources, such lending institutions, not must be paid even
as, banks and loansharks, in the community. amidst financial
credit difficulties of an
cooperatives Lending institutions can enterprise.
confidently lend adequate capital
in exchange of a sound feasibility
study.

Well-reputed lending institutions in the community can offer the following

types of loans according to term of repayment:

In this type of loan, monthly ammortizations which will

include a low interest will be paid in a year or less.
Short-term loans Advanced or on-time payment of monthly
ammortization increases trust and confidence of a
bank on the enrepreneur. This good relationship will
offer more opportunities to the entrepreneur.

Intermediate loans
Term of payment can range from one to tree years.

Depending on the soundness of the feasibility or the

established trust and confidence of the bank on the
Long-term loans
entrepreneur, terms of payment can stretch from four
to ten years where lending policies of banks or credit
cooperatives apply.

5. FACTORS IN SELECTING THE BEST BUSINESS LOCATION

The following must be considered in choosing the right business

location:

a. Nearness to target markets.

b. Availability and quality of raw materials and supplies.
c. Accessibility to consumers and transportation.
d. Consider zoning and local ordinances.
e. Availability of power and fuel sources.
f. Taxation, such as municipal tax policies, other local fees and rates.

23
 6. HIRING AND TRAINING PERSONNEL

Before the actual operations of the business begin, hiring the right person
for the right task must be considered. Your business plan will tell you how many
workers you need for the start and how many will be hired again as the operations
progress. Excess personnel will be an extra cost of the business and this condition
must be avoided.

7. REGISTRATION OF A NEW BUSINESS

New business must be registered in the name of legalities. Before you let
your well-planned business rocks the market, the following official processes must
be undertaken:

a. Register your official business name in the Department of Trade and Industry
(DTI).

b. Apply for a Mayor’s Permit to operate the business and the Municipal Business
License of the business.

c. Register your business at the Securities and Exchange Commission (SEC).

The Articles of Incorporation and By-Laws are required for all corporations and
for partnership.

d. Register your business in the Bureau of Internal Revenue whereupon your

business will be assigned a Tax Identification Number (TIN).

e. Register your employees with the PhilHealth, PAG-IBIG, and Social Security
System (SSS). Registration in other agencies which provide welfare and other
benefits must also be consulted and legally followed.

8. PRACTICING SIMPLE RECORD KEEPING

Entrepreneurs must be knowledgeable on the operations of the business.

Although you are already the manager of the business, still you need to develop
expertise in what all your workers are actually doing. This practice helps you
monitor the progress of your business and to carefully track the profit and losses.

Record keeping coexists with bookkeeping. The latter is the process of

recording the money received and spent by the operations of the business. The
following are the most important activities in bookkeeping:
a. Keep and maintain records on a daily basis.
b. Identify source of receipts.
24
 c. Record all incurred expenses.
d. Keep complete records in all assets.
In order to maintain proper recording of business transactions keep
supporting documents namely; sales slips, paid bills, invoices, receipts, deposit
slips, checks issued and cancelled. Payrolls must be kept too.

Generally, the benefits of recording system and the good records kept are
the following:
a. Easy monitoring of the success or failure of your business.
b. Information needed to make decisions is provided and accessible.
c. Information needed to take bank financing package is available.
d. References for budgeting are at hand.
e. Easy preparation of income tax return.
f. Easy computation of sales taxes.
g. Profit distribution is facilitated by organized record keeping.

What to PROCESS:

Activity #2:
Use the data in Activity #1 in this activity. Analyze and identify business
opportunities as well as challenges these data can offer to aspiring entrepreneurs.

Business Challenges to
Data to be
Dimension Data Opportunities Aspiring
gathered
Offered Entrepreneurs
Market Number of
demographics households
Number of
Retailers of
various products
Number of
wholesalers of
various products
Number of
Number of
businesses
producers
(specify
products)
Number of
service-based
businesses

25
 What to REFLECT and UNDERSTAND

Activity #3:

Choose one business opportunity identified in column 4. Carefully study the

potential of that business idea. Use the SWOT guide below to accomplish this task.
Present your SWOT Sheet to the class for critiquing and feed backing. Be sure to
record feedbacks given by the teacher and classmates.

Supplementary Reading:

The SWOT
HELPFUL HARMFUL
INTERNAL STRENGTH WEAKNESSES
EXTERNAL OPPORTUNITIES THREATS

Business ideas must be carefully analyzed prior to its actual operations. A

popular way of doing this is to do business idea assessment through the use of the
SWOT analysis. SWOT stands for Strengths,
Weaknesses, Opportunities, and Threats. This technique will signal us either to
continue the business idea because it is viable and profit is expected or to consider
other options because the factors dominates the positive ones and this condition
signals imminent losses for the proposed business. A SWOT sheet can look like
this:

STRENGTHS WEAKNESSES
Enumerate all strengths of the Enumerate all weaknesses of the
business here business here

(These are internal positive qualities (These are negative indications that
of the business idea that offers deters the good future of the business
advantages and benefits to the idea probably contributory to business
aspiring entrepreneurs) losses)

OPPORTUNITIES THREATS
Enumerate all opportunities of the Enumerate all threats of the business
business here here

(These are externat indications that (These are external indications of

26
 offer chance for progress or unfavorable situatons leading business
advancement of the business) to problems and other difficulties that will
put profits into risks)

Bear in mind these simple rules for successful SWOT analysis.

a. Be realistic about the strengths and weaknesses of your business

when conducting SWOT analysis.
b. SWOT analysis should distinguish between where your business is
today, and where it could be in the future.
c. SWOT should always be specific. Avoid any grey areas.
d. Always apply SWOT in relation to your competition i.e. better than or
worse than your competition.
e. Keep your SWOT short and simple. Avoid complexity and over
analysis
f. SWOT is subjective.

What to REFLECT and UNDERSTAND

Activity # 4:

Refer to your SWOT Sheet and make further analysis and this time the
ultimate task is make decision whether to pursue the proposed business idea or
consider other alternative businesses. There are two possible facets after the final
decision will be made. First, pursue the business because the SWOT reveals more
positive indications than negative ones or, second, disregard the business idea
because there are more negative indications. Consequently, try another business
idea and subject it into the same process of analysis.

Make a presentation of your task and be proud to inspire others that you
now have chosen a viable business idea chosen from the opportunities obtained
from the data generated by the simply community mapping we did.

What to TRANSFER:

Activity #5:

Since you have chosen 1 viable business idea already, it is just-in-time to

develop an impressive Business Plan. Refer to the guide given below and read the

27
sample business plan provided. Your own plan must not be limited to few pages
only, as the example is presented. All data and information must be given in order
to come up with a completely sound and impressive business plan.

Supplementary Reading

THE BUSINESS PLAN

A business plan refers to the intention of aspiring or experienced

entrepreneurs which precisely defines their business, identifies their goals and
objectives, a current and pro forma balance sheet, an income statement, and a
cash flow analysis. A business plan can help so much in the proper allocation of
resources, initially handle and counter forecasted complications, and make the right
decision for the business operations. A good business plan contributes to the
approval or rejection of any loan package because it provides specific and
organized information about your proposed business and how you will repay
borrowed money. A business plan is equivalent to a business resume.

A business plan has five major parts, namely, the executive summary,
marketing plan, production plan, organization and management plan, and financial
plan.

Below is a detailed guide in the development of a comprehensive business

plan.

PART OF A BUSINESS PLAN DEVELOPMENT GUIDES

BUSINESS Focus Guide Questions
PLAN

BUSINESS Business address

NAME Telephone/Contact Number
Contact Person

CONTENTS The usual table of contents

BACKGROUND Brief History

OF THE Information of the business
BUSINESS Form of ownership
Organizational set-up
Industry where it plays

28
 Brief statement of business social
BENEFITS TO responsibility
THE Economic, community, and human
COMMUNITY resources development

 Brief Description of the Project  What is the nature

EXECUTIVE  Brief Profile of the Entrepreneur of the project?
SUMMARY  Project’s Contributions to the  What are the
Economy entrepreneur’s
competencies and
qualifications?
 What are the
project’s
contributions to the
local and national
economy?

 Description of the Product  What is the

MARKETING  Comparison of the Product with Its product?
PLAN Competitors  How does it
 Location compare in quality
 Market Area and price with its
 Main Customers competitors?
 Total Demand  Where will be the
 Market Share business be
 Selling Price located?
 Sales Forecast  What geographical
 Promotional Measures areas will be
 Marketing Strategy covered by the
project?
 Marketing Budget
 Within the market
area, to whom will
the business sell its
products?
 Is it possible to
estimate how much
of the product is
currently being
sold?
 What share or
percent of this

29
 market can be
captured by the
business?
 What is the selling
price of the
product?
 How much of the
product will be
sold?
 What promotional
measures will be
used to sell the
product?
 What marketing
strategy is needed
to ensure that sales
forecasts are
achieved?
 How much do you
need to promote
and distribute your
product?

 Production Process  What is the

PRODUCTION  Fixed Capital production
PLAN  Life of Fixed Capital process?
 Maintenance and Repairs  What buildings and
 Sources of Equipment machinery (fixed
 Planned Capacity assets) are needed
 Future Capacity and what will be
 Terms and Conditions of Purchase their cost?
of Equipment  What is the useful
 Factory Location and Layout life of the building
 Raw Materials and machinery?
 Cost of Raw Materials  How will
Raw Materials Availability maintenance be
done and are spare
 Labour
parts available
 Cost of Labour
locally?
 Labour Availability
 When and where
 Labour Productivity
can the machinery
 Factory Overhead Expenses
be obtained?

30
 Production Cost  How much capacity
will be used?
 What are the plans
for using spare
capacity?
 When and how will
the machinery be
paid for?
 Where will the
factory be located
and how will the
factory be
arranged?
 How much raw
materials are
required?
 How much will the
raw materials cost?
 What are the
sources of raw
materials? Are they
available
throughout the
year?
 How many direct
and indirect labour
are needed and
what skills should
they have?
 What will be the
cost of labour?
 Are workers
available
throughout the
year? If not, what
effect will this have
on production?
 How will the
workers be
motivated?
 What factory
overhead expenses
are involved?

31
  What is the
production cost per
unit?

 Form of Business  How will the

ORGANIZATION  Organizational Structure business be
AND  Business Experience and managed and
MANAGEMENT Qualifications of the Entrepreneur operated?
PLAN  Pre-Operating Activities  What is the
 Pre-Operating Expenses business
 Office Equipment experience and
 Administrative Expenses qualifications of the
entrepreneur?
 What pre-operating
activities must be
undertaken before
the business can
operate?
 What pre-operating
expenses will be
incurred?
 What fixed assets
will be required for
the office?
 What administrative
cost will be
incurred?

 Project Cost  What is the total

FINANCIAL PLAN  Financing Plan and Loan capital
Requirement requirement?
 Security for Loan  Is a loan needed?
 Profit and Loss Statement What will be the
 Cash Flow Statement equity contribution
 Balance Sheet of the
 Loan Repayment Schedule entrepreneur? And
 Break-even Point (BEP) how much?
 Return on Investment (ROI)  What security
 Financial Analysis (collateral) can be
given to the bank?
 What does the

32
 Profit and Loss
Statement indicate?
 What does the
Cash Flow
Statement indicate?
 What does the
Balance Sheet
indicate?
 What is the loan
repayment
schedule?
 What is the break-
even point (BEP)?
 What is the return
of investment
(ROI)?
 Is the project
feasible?

The template is applicable to both production and marketing businesses.

There are entrepreneurs who want to venture in marketing alone, thus, the
resulting business plan is done sans the production part. However, in the
marketing part, the source of products to be marketed must be clearly stated
including the details of the product outsourcing process.
Below is a sample business plan with its major parts presented briefly:

BUSINESS PLAN
Jean’s Garden

Contents: (Note to the readers: The table of content is not presented here.)

Background of the Business:

Jean’s Garden started as a backyard/home-based hobby which gradually

grew into commercial propagation of landscaping plants both ornamental and
flowering. Today it includes trading plants propagated by other gardeners.

It is a sole proprietorship business whereupon the owner assumes multiple

tasks which include ordering, receiving, and arranging plants, cashiering, attending
to walk-in customers, identifying and contacting possible repeat customers, and
maintain plants in the store.

This business aptly belongs to the agribusiness industry in the southern part
of the country.
33
Benefits to the community:

A landscape area will add beauty to the surroundings. It will please

everybody’s eyes and encourages them to appreciate, love, and care for the
beauty of the plants growing in nature.

Quality of plants is always assured to the customers. Landscapers’ use of

quality landscaping plants will increase the aesthetic effect of landscapers’ output.
This will lead to the increase of people’s appreciation of the importance of
landscaping and thereby creates more landscaping opportunities for both the
landscapers and the traders of landscaping plants.

Executive Summary

Brief Description of the Project:

Jean’s Garden is a landscaping plants trading business that offers variety of

quality landscaping plants both ornamental and flowering types. It is located in a
rented space at the heart of General Santos City. This business sells competitively-
priced plants to cater the demand of small and large scale landscaping services of
the city and the adjacent municipalities.

The owner-entrepreneur is a plant hobbyist who wishes to see all types of

plants in her backyard. Her collection ranges from partial shade, outdoor and even
plants in very dry semi-arid parts of the world. Her family is into the challenging yet
successful breeding program of desert rose or Adenium sp. of single, double, and
triple/multiple petals.

This trading business aims to provide commercial landscapers with quality,

affordable, and well-hardened landscaping plants. The business also aims to create
a trading network between commercial landscapers and other landscaping-related
service providers in the General Santos City and other nearby cities and
municipalities.

Marketing Plan

The target market will include the small and large-scale commercial
landscapers of General Santos City and other nearby cities and municipalities.
Walk-in customers like tourists, homeowners, and plant collectors who will buy few
pieces only are likewise valued as important customers who can possibly create
word of mouth about the business to other enthusiasts.

34
Production Plan

Production or propagation of plants happens in other gardens which are the

potential suppliers of Jean’s Garden. Outsourcing of landscaping plants will be
done regularly by contacting the owner about availability list.

Plants will be delivered by the producers/propagators to the store as soon as

the ordering processes is completed and finalized.

Organization and Management Plan

This business is a sole proprietorship. The owner-proprietor is a plant

hobbyist-collector for 20 years already. This trading business of landscaping plants
requires suppliers where some of the plants will be outsourced. It also considers
and values a network of customers which can be landscapers or walk-in tourists
and local collectors.

Financial Plan
FINANCIAL REQUIREMENTS
Jean’s Landscaping Plants Trading
Total Project Costs
Particulars Amount(PhP)
Fixed Asset:
Dipper 20
Pale 60
Watering hose 120
Subtotal: 200.00
Working Capital(1month)
Direct Materials 23,000.00
Direct Labor 3,000.00
Overhead Expenses 1,800.00
Operating Expenses 200.00
Subtotal: 28,000.00
Total Project Costs 28,200.00

Underlying Assumption:

1.) 360 pcs of assorted ornamental and flowering plants are assumed to be sold per
month.
Katsura (100 pcs), Pandakaki (100 pcs), Bougainvillea (100 pcs), Adenium (60pcs)
2.) Purchased price for:
Katsura (P20.00), Pandakaki (P25), Bougainvillea (P25), Adenium (single P200),

35
 Adenium (double P250), Adenium (triple P300)
3.) Operating hours per day is 8-9 hours from Mondays to Sundays and 30 days a
month (P100/day paid for sales personnel).
4.) Fixed asset are subject to depreciate in 3years.

PROJECTED SALES AND INCOME

Jean’s Landscaping Plants Trading
(1 Month Operation)
Particulars Amount(PhP)
Sales:
Bougainvillea (P50 @100pcs) 5,000.00
Katsura (P50 @100pcs) 5,000.00
Pandakaki (P50@ 100pcs) 5,000.00
Adenium (single P250@20pcs) 5,000.00
(double P300@20pcs) 6,000.00
(triple P350@20pcs) 7,000.00
Total 33,000.00
Less Cost of Sales:
Direct Materials(Garden Inputs) 0
Bougainvillea (P25 @100pcs) 2,500.00
Katsura (P20@100pcs) 2,000.00
Pandakaki (P25@100pcs) 2,500.00
Adenium (single P200@20pcs) 4,000.00
(double P250@20pcs) 5,000.00
(triple P300@20pcs) 7,000.00
23,000.00
Direct Labor
(P100/day x 30 days) 3,000.00
Overhead Expenses 1,800.00
Depreciation(FA/EUL) 66.67
Total 27,866.67
Gross Profit 5,133.33
Less Operating Expense 200.00
Net Income Before Tax 4,933.33
Return on Investment(Ave. Net
18%
Income/TPC)
Payback Period(TPC/Ave. Net Income+
Depreciation) 72 days or 2months and 12 days
Gross Profit Ratio(Gross Profit/Total
Sales) 15%
Net Margin(Net Income/Total Sales) 18%

36
G. Critical analysis

During rainy days rate of visit of walk-in customers is low

consequently sales for this period is equivalently low. However the booming real
estate business in General Santos City will commend higher demand in
landscaping, thus, there will be more orders of landscaping plants.

Summative Assessment

Direction: Choose the letter of the correct answer. Write your answer on your test
booklet.

1. It is a group of people with economically important needs and demands which

opens entrepreneurial opportunities to everyone.
A. Environment C. Geography
B. Ethnicity D. Market
2. This type of business is owned by only 1 person.
A. Cooperative C. Partnership
B. Corporation D. Sole Proprietorship
3. Which of the following is not considered an emerging industry in the
Philippines?
A. Agribusiness C. Creative Industries
B. Power and utilities D. Renewable Energy
4. In the 4M’s of production, which M refers to the persons in the business
known as the labor force?
A. Machines C. Materials
B. Manpower D. Money
5. The process of recording the money received and spent by the operations of
the business is known as
A. Bookkeeping C. Administering
B. Booking D. Posting
6. Which combination is focused to the assessment internal of the business?
A. Opportunities and threats C. Strengths and Threats
B. Strengths and weaknesses D. Weaknesses and Threats
7. Which combination is focused to the assessment external of the business?
A. Opportunities and threats C. Strengths and Threats
B. Strengths and weaknesses D. Weaknesses and Threats

37
8. Place the indicators found inside the box at the right into the third column of
the matrix at the left. Group the indicators correctly.
Group Part Of Business Plan G. Competitors analysis
H. Product description
A Production I. Maintenance and repair
Plan _______ J. Promotional strategies
B Marketing K. Sources of equipment
Plan _______ L. Terms and conditions of purchase

Which of the following is the correct grouping of the six indicators in the box?

A. C.

Group Part Of Business Plan Group Part Of Business Plan

A Production Plan A, B, D A Production Plan C, D, A

B Marketing Plan C, E, F B Marketing Plan B, E, F

B. D.

Group Part Of Business Plann Group Part Of Business Plan

A Production Plan A, C, E A Production Plan C, E, F

B Marketing Plan D, B, F B Marketing Plan A, B, D

9. Which business principle is applicable in products and development and

marketing?
A. Pay attention to the needs and demands of the market.
B. Your own needs and demands are the same with others.
C. Follow the result of a national survey of needs and demands.
D. Ask researchers in other communities about their needs and demands.
10. What is the reason why an aspiring entrepreneur must make a sound and
impressive business plan?
A. A sound and impressive business plan commands tax rebates.
B. A sound and impressive business plan attracts more customers.
C. A sound and impressive business plan is likely to be approved for a loan
package.
D. A sound and impressive business plan can improve a particular segment
of a market.

38
 SUMMARY/SYNTHESIS/FEEDBACK

Now we know that the market and environment are the two major factors
that dictate any business activities. It is so diverse however, this diversity offers
numerous opportunities for businesses.

An aspiring entrepreneur must consider a lot of factors prior to setting up a

business. Careful examination on the needs and demands must be made.
Competition must be clearly addressed because it may either lead to accumulation
of profit or, worse, incurring losses depending on how entrepreneurs manage their
businesses.

Other important task of entrepreneurs is to determine how much capital is

needed to start a business. Selection of the best business location is crucial too.
Record keeping or bookkeeping is also a skill that entrepreneurs must possess so
he can personally ascertain the financial status of the business.

Entrepreneurs play a very important role in the national growth and

development. Aside from tax payment to the government, an entrepreneur is
responsible of the human resources development. Employment, whether casual,
probationary, and permanent, offers workplace trainings which help employees’
personal and professional growth.

Entrepreneurs must not only possess passion of the business but personally
learn the works of their employee as well. The benefit of this best practice is that
entrepreneurs will find it easier to track the operations of the business including its
profitability.

Finally, getting all these business prerequisites into the heart and mind of
entrepreneurs and together with adequate knowledge, skills and work values, their
businesses will be sustained.

References

http://www.businessdictionary.com Retrieved November 23, 2013

Microsoft® Encarta® 2009. © 1993-2008 Microsoft Corporation

Albarico J.M., C.B, Celarta, E., Fernando, and E.S.Valdez 2011.

Agriculture and Fishery Arts I. United Eferza Academic Publications, Co.,
BagongPook, Lipa City, Batangas 4217.

39