Entrepreneurship - Self-Learning Kit

ENTREP
ENTREPRENEURSHIP
SOUTH EAST-ASIA INSTITUTE OF TRADE AND TECHNOLOGY
LEARNING MODULE FOR 2ND SEMESTER SCHOOL YEAR 2020-2021
GRADE 12 ENTREPRENEURSHIP
STUDENT’S NAME: STRAND&SECTION:
TIME COVERAGE
PART 1: LESSON
WEEK NO. 1 DAY NO. 1-2
CHAPTER 1: ENTREPRENEURSHIP: WHAT’S IN A NAME?
At the end of the lesson the student should be able to:
a) Enumerate the different characteristics of an Entrepreneurship;
b) Differentiate Entrepreneur and Entrepreneurship; and
c) Create their own description of an entrepreneur and entrepreneurship.
PART 2: TERMINOLOGIES
• Articulate – means having or showing the ability to speak fluently and coherently.
• Upheaval – is a violent or sudden change or disruption to something.
• Flourishes – means developed rapidly and successfully.
• Initiative – is the act or strategy intended to resolve a difficulty or improve a situation; a fresh approach to
something.
• Derided – means to express contempt for; ridicule.
PART 3: DISCUSSION
This part provides the overview of the concept of Entrepreneurship beyond the business discipline. It articulates
the value of entrepreneurs in the continuous shaping of the economic, social, political, technological and cultural make-
up of the business milieu. It also discusses the effect of entrepreneurial options in personal human development.
WHAT IS ENTREPRENEURSHIP?
• 1700’s – the concept of entrepreneurship was first established and the meaning is evolved ever since.
• JOSEPH SCHUMPETER (1883-1950) – an economist.
o Focus on how the entrepreneur’s drive for innovation and improvement creates upheaval and change.
o He viewed it as a force of “Creative Destruction” or making “new combination” thereby by helping render
“old ways” absolute.
o The established ways of doing business are destroyed by the creation of new and better way to do them.
• PETER DRUCKER (1909-2005) – a business expert.
o Describe entrepreneur as someone who actually searches for change, responds to it and change as an
opportunity.
• HOWARD H. STEVENSON – Sarofim-Rock Professor of Business Administration at the Harvard Business School.
o Entrepreneurship is “the process of creating or seizing an opportunity, and pursuing it regardless of the
resources currently controlled.”
o He has been quoted by Rick Goosen as saying “At Harvard, we define entrepreneurship as the pursuit of
opportunities without regard for the resources controlled”.
o Professor Stevenson, who has co-authored one the leading textbooks in the field, New Business Ventures
and the Entrepreneur, spells out four tenets on entrepreneurship:
▪ Entrepreneurship flourishes in community where resources are mobile.
▪ Entrepreneurship is greater when successful members of a community reinvest excess capital in
the projects of other community members.
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▪ Entrepreneurship flourishes in communities in which success of other community members is

celebrated rather than derided.
▪ Entrepreneurship is greater in communities that see change as positive rather than negative.
WHAT IS AN ENTREPRENEUR?
The businessdictionary.com defines an Entrepreneur:
• As someone who exercise initiative by organizing a venture to take benefit of an opportunity and, as the decision
maker decides what, how and how much of a good or service will be produced.
• The entrepreneur is commonly seen as a business leader and innovator of new ideas and business process.
• An entrepreneur is not necessarily motivated by profit but possesses a deep passion that drives them to overcome
all the difficulties and challenges when running the business.
PART 4: ACTIVITY/ APPLICATION

ACTIVITY: WORD CLOUD
Instructions: The illustration below is called a word cloud which consists of a word and/or group of words related to
“Entrepreneurs” and “Entrepreneurship” Select three (3) words and/or three groups of words from the illustration below.
For each word write a sentence to describe what those words have to do with entrepreneurship or entrepreneurs.
CREATE BUSINESS CHALENGES SUCCESSS REWARD DESTINY WORK LIFE

LEADERSHIP GENERATION COMMUNITY COMMITMENT NEW FUTURE COMPANY VALUES
EXXPRIENCE OPPORTUNITY RISK NEVER MONEY OWN MEANINGFUL
FAILURE
1.
2.
3.
PART 5: QUIZZES/ EVALUATION

PART I: IDENTIFICATION. Identify the word that is being describe in the following item:
_________1. He viewed Entrepreneurship as a force of “Creative Destruction” or making “new combination”

thereby by helping render “old ways” absolute.
_________2. He described entrepreneur as someone who actually searches for change, responds to it and change
as an opportunity.
_________3. Someone who exercise initiative by organizing a venture to take benefit of an opportunity and, as the
decision maker decides what, how and how much of a good or service will be produced.
_________4. For him Entrepreneurship is “the process of creating or seizing an opportunity, and pursuing it
regardless of the resources currently controlled.”
_________5. The concept of entrepreneurship was first established.
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PART II: TRUE OR FALSE. Identify the following statement. Write TRUE if the statement is correct and FALSE if the
statement is incorrect:
_______1. Peter Drucker viewed entrepreneurship as a force of “creative destruction” or making “new
combination”.
_______2. One of the four tenets on entrepreneurship is “Entrepreneurship is greater in communities that see
change as positive rather than negative.”
_______3. Entrepreneur is commonly seen as a business leader and innovator of new ideas and business process.
_______4. An entrepreneur is not necessarily motivated by profit but possesses a deep passion that drives them
to overcome all the difficulties and challenges when running the business.
_______5. Entrepreneurship is greater in communities that see change as negative rather than positive.
_______6. Joseph Schumpeter focus on how the entrepreneur’s drive for innovation and improvement creates
upheaval and change.
_______7. Howard H. Stevenson defines Entrepreneurship as “the process of creating or seizing an opportunity,
and pursuing it regardless of the resources currently controlled”.
_______8. The entrepreneur is commonly seen as a business leader and innovator of new ideas and business
process.
_______9. Entrepreneurship flourishes in communities in which success of other community members is
celebrated rather than derided.
_______10. Entrepreneurship is greater when successful members of a community reinvest excess capital in the
projects of other community members.
PART 6: CONCLUSION/ SUMMARY

• Entrepreneurship is defined by many, one of them is Joseph Schumpeter. He is an economist and he defined
entrepreneurship as the established ways of doing business are destroyed by the creation of new and better way
to do them that is also called “Creative Destruction”. Howard H. Stevenson, a professor in Harvard Business
School, also defined entrepreneurship as “the process of creating or seizing an opportunity, and pursuing it
regardless of the resources currently controlled.” While Entrepreneur for Peter Drucker, and business expert,
describe entrepreneur as someone who actually searches for change, responds to it and change as an opportunity.
It is also defined as someone who exercise initiative by organizing a venture to take benefit of an opportunity and,
as the decision maker decides what, how and how much of a good or service will be produced
(businessdictionary.com).
PART 7: REFERENCE LINK

• What is an Entrepreneur? https://www.youtube.com/watch?v=92ZmzD70sOU
• Reference Book: Entrepreneurship/Eunice Mareth Areola, Janine P. Siggoat, Edward D, Gonzales—1st Ed.
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TIME COVERAGE
PART 1: LESSON
OBJECTIVES: At the end of the lesson the student should be able to:
a) Enumerate the different characteristics of an Entrepreneurship from A to Z;
b) Identify which characteristics are the most important for an entrepreneur to succeed; and
c) Assess themselves on what characteristics of an entrepreneur they already have.
• Contemporaries – is a person or thing living or existing at the same time as another.
• Empathizing – means to understand and share the feelings of another.
• Venture – is a risky or daring journey or undertaking.
• Endeavor – means to try hard to do or achieve something.
PART 3: DISCUSSION
WHAT ARE THE CHARACTERISTICS OF AN ENTREPRENEUR?
Many different types of people are attracted to become entrepreneurs and a wide variety of talents, aptitudes,
and personal traits help to contribute to an entrepreneurial spirit, personality and vision. Here are the characteristics of
an entrepreneur from A to Z as define by Dr. Neil Flanagan and Peter Baskerville:
AMBIGUITY – refers to a situation in which something can be understood in more than one way and it is not clear which
meaning is intended.
BEACHHEAD STRATEGIES – is the strategies that an entrepreneur uses to gain market penetration and customer
acceptance for their products.
COMMITMENT – is the founding drive of the entrepreneur–not just the commitment to do, but the commitment to do
and see it through, and not just the commitment to see it through, but to see it through with everything on the line.
DESTINY – dictates that life is not just a process of accumulating physical assets, nor experiencing physical pleasure, nor
even the cyclical life of comfort and leisure.
EFFECTUAL REASONING – it starts with clearly defined goals that translate into specifically defined goals which translated
into specifically defined objectives that inform strategies and then determine tactics.
GLOBAL – a true entrepreneur recognizes the power of the internet to deliver a global outcome for their enterprise and
so shape their model to include it in their thinking.
HEALTH – states that a good health is a remarkable aspect of entrepreneurial life. For many entrepreneurs, this is simply
because they refuse to be sick, mostly because they can’t afford to be.
INNOVATION – sets the entrepreneur apart from all their commercially engaged contemporaries. Entrepreneurs know
how to add value by making a product better and getting a target market to demonstrate their appreciation of it by parting
with their money.
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JUST DO IT – For entrepreneur, the decision to just do it is often to do it alone. This is what separates entrepreneur from
a highly competent corporate executive, who upon getting knocked back on a proposal will simply shelve the project.
KEEP IT REAL – Entrepreneurs have an objective approach, which, while empathizing with people’s needs, is more
concerned with performance and accomplishment. Entrepreneur are obsessed with the “truth” they are honest and
straightforward in their dealing and expect others to do likewise.
LEADERSHIP – Entrepreneurs lead because they don’t trust another’s decisions too heavily. They lead because others
follow, and others follow because they see their own needs being fulfilled in the entrepreneurial directions and outcomes.
Leadership for the entrepreneur is not about status but function.
MEANING – Entrepreneur has an inherent desire to make the world a better place. Entrepreneur can create the meaning,
which will become the motivation behind their ventures.
NEVER GIVE UP – What others see as a failure, the entrepreneur sees as either a learning experience, as a chance for
character development, or simply a barren environment or proper timing. He continues working with great persistence
until the right time comes.
OPPORTUNISTIC – Entrepreneurs keep their eyes open for significant changes that may trigger a promotion from option
to opportunity.
PEOPLE – Of all the resources entrepreneurs can secure to build an enterprise, it is the people who are the most valuable.
Every person the entrepreneur meets in the course of doing their business is a potential resource.
QUIRKY – Entrepreneurs appreciate quirky or unique behavior. When being quirky added to their products or services,
this could set them apart. This quirky ingredient can only be produced by a person with self-esteem, confident in their
offer and understanding of the fact that it is this very quirkiness that creates a lasting memory in the mind of their
customers.
RISK – Entrepreneurs know that risk is unavoidable, even if that risk leads to the loss of personal assets. That's because
the entrepreneur perceives that a life is lost if it lived without significance, meaning, and seeking to be the best one can
be. Entrepreneurs are fearful of a so-called “risk-free” life that ends in the anguished regret of what might have been, of
what could have been, of what should have been.
SUBJECTIVE ADVANTAGES – Subjective advantages are the advantages that the entrepreneurs achieve because they know
how to perfectly position their offer to a customer's emotional needs.
TIMING – Experienced entrepreneurs know that many successful ventures happened because they launched it in the right
place at the right time. There appears to be a large element of luck in these ventures but what is unseen is the preparation
time that took place prior to the launch.
UNDER THE RADAR – Entrepreneurs quickly learn that they can best achieve their mission by flying "under the radar",
that is securing their entry into markets with minimal notice or perceived threat, ensuring the least negative reaction from
competitors, suppliers, partners or customers.
VALUE-ADDED – The entrepreneur's primary goal in a commercial endeavor is to add value. The entrepreneur makes
money by taking a slice of the added value that they create for their customers via their innovative products and services.
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WORK AND PLAY – is the entrepreneurial promise "to do what you love and to love what you do”. It is nearly impossible
for the entrepreneur to tell when they are working and when they are having fun. This enjoyment of what they do leads
another typical response from entrepreneurs to retire from what? Entrepreneurs have no plans to retire.
X FACTOR – The X factor is that special something that entrepreneurs have which others don't. For each entrepreneur, it
is something different. Some entrepreneurs describe it in terms of attitude, passion, obsession, self-confidence, or
enthusiasm. Just as in any field of human endeavor, some people have it and some don't.
YOU – Entrepreneurs are people so totally engaged with the outside world that they tend to pay little attention to their
one greatest asset — themselves. It is paramount for the entrepreneur to understand and accept what makes tick.
ZEST – Zest or passion is in the life-blood of the entrepreneur. The entrepreneur's zest does not come from amazing
personal wealth, but from the belief that they can create and control their future and not simply live a life at the mercy of
either fate or providence.
PART 4: ACTIVTY/ APPLICATION

ACTIVITY: Characteristics of an Entrepreneur
Instructions: Explain your answer to the question given below:
1. Of the characteristics A-Z of an entrepreneur, which characteristic(s) is/are the most important for an
entrepreneur to succeed? Why?
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
______
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________
PART 5: QUIZ/ EVALUATION

TEST I: SELF-EVALUATION. From the characteristics of an entrepreneur identify five (5) characteristics that you already
have and give some instances where you used it. (2pts)
1.________________________________________________________________________________________________
__________________________________________________________________________________________________
2.________________________________________________________________________________________________
__________________________________________________________________________________________________
3.________________________________________________________________________________________________
__________________________________________________________________________________________________
4.________________________________________________________________________________________________
__________________________________________________________________________________________________
5.________________________________________________________________________________________________
__________________________________________________________________________________________________
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TEST II: IDENTIFICATION. Identify the characteristics of an entrepreneur in each item.
_______1. The entrepreneur's _____ does not come from amassing personal wealth, but from the belief that they can
create and control their future and not simply live a life at the mercy of either fate or providence.
_______2. What others see as a failure, the entrepreneur see as either a learning experience, as a chance for character
development, or simply a barren environment or proper timing.
_______3. For many entrepreneurs this is simply because they refuse to be sick, mostly because they can’t afford to be.
_______4. The founding drive of the entrepreneur; not just the commitment to do, but the commitment to do and see
it through, and not just the commitment to see it through, but to see it through with everything on the line.
_______5. It refers to a situation in which something can be understood in more than one way and it is not clear which
meaning is intended.
_______6. They lead because others follow, and others follow because they see their own needs being fulfilled in the
entrepreneurial directions and outcomes.
_______7. Experienced entrepreneurs know that many successful ventures happened because they launched it in the
right place at the right time.
_______8. Some entrepreneurs describe it in terms of attitude, passion, obsession, self-confidence, or enthusiasm.
_______9. Entrepreneur have an inherent desire to make the world a better place. Entrepreneur can create the _____,
which will become the motivation behind their ventures.
_______10. It sets the entrepreneur apart from all their commercially engaged contemporaries.
_______11. For entrepreneur, the decision to just do it is often to do it alone.
_______12. Entrepreneur are obsessed with the “truth” they are honest and straightforward in their dealing and expect
others to do likewise.
_______13. Entrepreneurs keep their eyes open for significant changes that may trigger a promotion from option to
opportunity.
_______14. The entrepreneur perceives that a life is lost if it lived without significance, lived without meaning, and lived
without seeking to be the best one can be.
_______15. This ingredient can only be produced by a person with self-esteem, confident in their offer and
understanding of the fact that it is this very quirkiness that creates a lasting memory in the mind of their
customers.

• There is no definitive profile. Successful entrepreneurs share certain personal attributes like creativity, dedication,
determination, flexibility, leadership, passion, self-confidence and being smart.

• Qualities of an Entrepreneur: https://www.youtube.com/watch?v=s6cPmBSL-OQ
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TIME COVERAGE
PART 1: LESSON
CHAPTER 2: THE STUDENTS AS AN ENTREPRENEUR: SELF-EVALUATION
a) Analyze why entrepreneurial mind sets are important to entrepreneurial activities;
b) Assess the strength and weaknesses of their own entrepreneurial mind and skills sets; and
c) Identify the reason why entrepreneurial skills set are important to entrepreneurial activities.
• Articulates – means to express (an idea or feeling) fluently and coherently.
• Autonomy – is the freedom from external control or influence; independence.
• Resentful – is the feeling or expressing bitterness or indignation at having been treated unfairly.
PART 3: DISCUSSION
This lesson allows students to perform a self-assessment to determine if they have the traits of an entrepreneur
and learn the corresponding actions, they can take to develop those traits.
How Entrepreneurial are YOU?
A United Nations Program for small business, EMPRETEC have clustered ten Personal Entrepreneurial
Competencies (PECs) originally identified and researched by McClelland and McBer. This entrepreneurial self-evaluation
test will help you to gain a greater understanding as you determine if you have traits to become a successful entrepreneur.
Take time to read all competencies and assess yourself if you possess these traits:
1. Opportunity Seeking and Initiative

• Does things before asked or forced to by events.
• Acts to extend the business into new areas, products or services
• Seizes unusual opportunities to start a new business, obtain financing, equipment, land work space of assistance.
2. Risk Taking
• Deliberately calculates risks and evaluates alternatives.
• Takes action to reduce risks or control outcomes.
• Places self in situations involving a challenge or moderate risk.
3. Demand for Efficiency and Quality
• Find ways to do things better, faster, or cheaper.
• Acts to do things that met or exceed standards of excellence.
• Develops or uses procedures to ensure work is completed on time or that work meets agreed upon standards of
quality.
4. Persistence
• Takes action in the face of a significant obstacle.
• Takes repeated actions or switches to an alternative strategy to meet a challenge or overcome an obstacle.
• Takes personal responsibility for the performance necessary to achieve goals and objectives.
5. Commitment to the Work Contract
• Makes a personal sacrifice or expends extraordinary effort to complete a job.
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• Pitches in workers or in their place to get a job done.

• Strives to keep customers satisfied and places long term good will over short-term gain.
6. Information Seeking
• Personally seeks information from clients, suppliers, or competitors.
• Does personal research on how to provide a product or service.
• Consults experts for business or technical advice.
7. Goal Setting
• Sets goals and objectives that are personally meaningful and challenging.
• Articulates clear and specific long-range goals.
• Sets measurable short-term objectives.
8. Systematic Planning and Monitoring
• Plans by breaking large tasks down into time-constrained sub-tasks.
• Revises plans in light of feedback on performance or changing circumstances.
• Keeps financial records and uses them to make business decisions.
9. Persuasion and Networking
• Uses deliberate strategies to influence or persuade others.
• Uses key people as agents to accomplish own objectives.
• Acts to develop and maintain business contracts.
10. Independence and Self-Confidence
• Seeks autonomy from the rules or control of others.
• Sticks with own judgement in the face of opposition or early lack of success.
• Expresses confidence in own ability to complete a difficult task or meet challenge.

ACTIVITY: SELF-EVALUATION OF ENTREPRENUERIAL MIND AND SKILL SETS
Instructions: Using the list of mind and skill set below score yourself 1-3 where the score of 3 you feel very strongly you
possess that trait and if 1 you feel you don’t.
3 Strongly agree that I possess the trait. 2 Slightly agree that I possess the trait. 1 Never I possess the trait.
MIND SET SCORE SKILL SET SCORE

Self-belief Problem solving
Taking initiative Planning/organization
Risk-taking Risk management
Determination People Skills
Resilience/attitude to failure Communication
Persistence Research
Creativity/innovation Selling
Ethical responsibility Negotiating
Vision Networking
Passion/energy/spirit Customer Service
Confidence Leadership
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Willingness to seek advice and help Ability to multi-task

Coping with change
Financial awareness
1. What are your strongest skills/qualities?

a. c.
b. d.
2. Describe how these will be of benefit to you as an entrepreneur.

a. _______________________________________________________________________________________________
_________________________________________________________________________________________________
b. _______________________________________________________________________________________________
_________________________________________________________________________________________________
c. _______________________________________________________________________________________________
_________________________________________________________________________________________________
d. _______________________________________________________________________________________________
_________________________________________________________________________________________________

EVALUATION: PERSONAL ENTREPRENEURIAL COMPETENCIES SELF-RATING
Instructions:
1. This questionnaire consists of 55 brief statements. Read each statement and decide how well it describe
you. Be honest about yourself. Remember, no one does everything well, nor it is even good to do everything
very well.
2. Select one of the numerical ratings to indicate how well the statement describes you:
5 – Always 4 – Usually 3 – Sometimes 2 – Rarely 1 – Never
PERSONAL ENTREPRENEURIAL COMPETENCIES SELF-RATING RATE

1 I look for things that need to be done.
2 When faced with difficult problems, I spend a lot of time trying to find solution.
3 I complete my work on time.
4 It bothers me when things are not done very well.
5 I prefer situations in which I can control the outcomes as much as possible.
6 I like to think about the future.
7 When starting a new task or project, I gather a great deal of information before getting ahead
8 I plan a large project by breaking it down into smaller tasks.
9 I get others to support my recommendations.
10 I feel confident that I will succeed at whatever I try to do.
11 No matter whom I am talking to, I am a good listener.
12 I do things that need to be done before being asked by others.
13 I try several times to get people to do what I would like them to do.
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14 I keep the promises I make.

15 My own work is better than that of other people I work with.
16 I do not try something without making sure I will succeed.
17 It's a waste of time to worry about what to do with your life.
18 I seek the advice of people who know a lot about the tasks I am working on.
19 I think about the advantages and disadvantages or different ways of accomplishing things.
20 I do not spend much time thinking how to influence others.
21 I change my mind if others disagree strongly with me.
22 I feel resentful when I do not get my way.
23 I like challenges and new opportunities.
24 When someone gets in the way of what I am trying to, I keep trying to accomplish what I want.
25 I am happy to do someone else's work, if necessary, to get the job done.
26 It bothers me when my time is wasted.
27 I weighed my chances of succeeding or failing before I decide to do something.
28 The more specific I can be about what I want out of life, the more chance I have to succeed.
29 I take action without wasting time gathering information.
30 I try to think of all problems I may encounter and plan what to do if each problem occurs.
31 I get important people to help me accomplish my goals.
32 When trying something difficult or challenging, I feel confident that I will succeed.
33 In the past, I have had failures.
34 I prefer activities that I know well and with which I am comfortable.
35 When faced with major difficulties, I quickly go on to other things
36 When I am doing a job for someone, I make a special effort to make sure that person is happy with
my work.
37 I am never entirely happy with the way in which things are done. I always think there must be a
better way.
38 I do things that are risky.
39 I have a very clear pIan for my life.
When working on a project for someone, I ask many questions to be sure I understand what that
40
person wants.
41 I deal with problems as they arise, rather than spend time trying to anticipate them.
42 In order to reach my goals, I think of solutions that benefit everyone involved in a problem.
43 I do very good work.
44 There have been occasions when I took advantage of someone.
45 I try things that are very new and different from what I have done before.
46 I try several ways to overcome things that get in the way of reaching my goals.
47 My family and personal life are more important to me than work deadlines I set for myself.
48 I find ways to complete the tasks faster at work and at home.
49 I do things that others consider easy.
50 I am concerned about meeting my weekly goals as I am for my yearly goals.
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51 I go to several different sources to get information to get help with task or project.
52 If one approach to a problem does not work, I think of another approach.
53 I am able to get people who have strong opinions or ideas to change their minds.
54 I stick with my decisions even if others disagree strongly with me.
55 When I do not know something, I do not mind admitting it.
SCORING SHEET FOR PEC SELF-RATING QUESTIONAIRE

INTRUCTION:
1. Enter the rating from the completed questionnaire on the lines above the item number in parenthesis. Notice that
the item in each column are consecutive. Item 2 below number 1 and so forth.
2. Do the addition and subtraction indicated in each row to complete each PEC score.
3. Add all the PEC scores to complete the total score.
4. The Correction Factor (CF), the total of items 11, 22, 23, 33, 44, and 55 is used to determine whether or not a
person tries to present favorable image of himself. If the total scores of this factor is 20 or greater, then the total
scores on the ten PECs must be corrected to provide a more accurate assessment of the strength of the PECs scores
for the individual.
5. Use the following numbers when figuring the correct score:
If the Correction Factor Score is subtracted the following number
24 or 25 7
22 or 23 5
20 or 21 3
19 or less 0
6. Transfer PEC score to the profile sheet by marking as “X” at the appropriate point on the horizontal line for each
PEC.
7. Draw heavy vertical line connecting the “Xs” for each PEC and you have constructed your PEC profile.
“MY PERSONAL ENTREPRENEURIAL COMPETENCIES”
SCORE PEC
+ + - + + 6 =
OPPORTUNITY SEEKING
1 12 23 34 45
+ + - + + 6 =
PERSISTENCE
2 13 24 35 46
+ + + - + 6 =
COMMITMENT TO WORK
3 14 25 36 47
+ + + - + 6 =
DEMAND FOR EFFICIENCY
4 15 26 37 48
- + - + + 6 =
RISK TAKING
5 16 27 38 49
- + + + + 6 = GOAL SETTING
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6 17 28 39 50
+ - + + + 6 =
INFORMATION SEEKING
7 18 29 40 51
+ + + + + 6 =
SYSTEMATIC PLANNING
8 19 30 41 52
- + + + + 6 = PERSUASION AND
9 20 31 42 53 NETWORKING
- + + + + 6 =
SELF-CONFIDENCE
10 21 32 43 54
- - - + + 18 =
CORRECTION FACTOR
11 22 33 44 55
Based on PEC Assessment, list the entrepreneurial traits in which you are very strong and traits where require some
improvement:
TRAITS IN WHICH YOU ARE STRONG TRAITS IN WHICH YOU NEED IMPROVEMENT
LIST DOWN AREAS FOR IMPROVEMENT AND SUGGEST HOW YOU CAN IMPROVEMENT
AREAS FOR IMPROVEMENT SUGGESTIONS

• To be a successful entrepreneur, there are many skills, qualities and attributes that a person must possess. Among
the traits that have been defined as necessary for succeeding as an entrepreneur are discipline, self-confidence,
communication skills, humility, organizational abilities, and flexibility.

• Entrepreneurship Module (Additional Information)
file:///C:/Users/HP/Desktop/SEA%20MODULE/Copy%20of%20Agricultural%20Crop%20Production%20-
%20MODULE%201.pdf
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TIME COVERAGE
PART 1: LESSON
CHAPTER 3: THE EVOLUTION OF ENTREPRENEURSHIP USING THE LENS OF ECONOMIC DEVELOPMENT THEORIES
a) Explain the Theory of Economic Development in relation to Entrepreneurship;
b) Identify the different connection of the theory of economic development; and
c) Differentiate Mercantilism and Laissez-Faire.
• Stagnant – means showing no activity; dull and sluggish.
• Import – means to bring (goods or services) into a country from abroad for sale.
• Export – means to send (goods or services) to another country for sale.
• Globalization – is the process by which businesses or other organizations develop international influence or
start operating on an international scale.
PART 3: DISCUSSION
The transition in the understanding and concretization of Entrepreneurship using the lens of theories in economic
development is expounded in this lesson. It highlights the value of appreciating entrepreneurship in the context of
historical and disciplinal basis. This lesson will likewise touch on the globalization challenges faced by an entrepreneur as
well as the ethical orientation to which a business individual must commit.
THE THEORY OF ECONOMIC DEVELOPMENT
MERCANTILISM
The theory of mercantilism was the first major economic theory known in the
world. It drove the economic system during the 16th to 18th centuries in the "known"
world.
• It was based on the idea that a nation's wealth will increase only if the
government regulated all the nation's commercial interests. The government,
according to mercantilism, should take care of all the economic activities of a
country.
• The Theory of Mercantilism holds that the wealth of a nation can be measured
by its ready supply of capital, generally held in the concrete form of gold or
silver.
• Mercantilism states that the global supply of wealth is a fixed amount and that
therefore any gain of wealth by one nation must necessarily represent a loss by
another. National strength was based on limiting imports through high tariffs
and exporting as many goods as possible.
Due to its system of "me first" and "no imports", mercantilism could not be maintained forever, because the reality
was that it led to a stagnant global economy. Each country wanted to export and no one wanted to import. After some
time, many people began to revolt against the idea of mercantilism and stressed the need to conduct free trade among
nations. The continued pressure resulted in the implementation of laissez-faire economics in the nineteenth century.
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Mercantilism therefore in many ways opposes the later laissez-faire capitalism promoted by economists such as Adam
Smith.
LAISSEZ-FAIRE THEORY
Toward the 18th Century, Adam Smith wrote "An Inquiry into the Nature and Causes of the
Wealth of Nations" where he documented industrial development in Europe. He expounded
the need to minimize the role of government intervention and taxation in the free markets.
THE LAISSEZ-FAIRE THEORY

• An "invisible hand" that guides supply and demand, reflecting the concept that each
person, by looking out for herself, creates the best outcome for all.
• ALONG WITH OTHER PHILOSOPHERS: “It is not from the benevolence of the butcher, the
brewer, or the baker, that we can expect our dinner, but from their regard for their own
interest." By selling their products, the butcher, brewer, and baker will make money. If they
meet the customers' needs, they will be rewarded financially, which is the point of being in
business. While engaged in enterprises to earn money, they provide the products that people
need and want.
According to Smith, this creates wealth not only for the people in business but also for the whole country where the
citizens work to provide for themselves and others and where they take care of their own financial needs.
SOCIALISM
Karl Marx disagreed with Adam Smith and the laissez-faire theorists. He interpreted
human history as a class struggle between workers and employers.
• He declared that free enterprise (laissez-faire) would lead to increasingly severe losses
and would eventually bring about revolution by the workers.
• They called for an economy where the government owned all the property and
distributed everything equally among all the people through socialism.
Today, experts realize that there is not one single theory that can explain economic growth.
In 1934 Joseph Schumpeter, an economist, explained that

economic growth is started by people (whom he called entrepreneurs) who produce goods not
only for personal profit but also for the good of everyone around them. Moreover,
• He called entrepreneurs the backbone of the economy.
• Entrepreneurs, according to him, are people who find joy in creating or producing goods;
who find self-fulfillment in getting things done; and who have a strong need for achievement.
This entrepreneur-centered theory is widely used to answer the need for socio-economic
development.
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ACTIVITY: WORD CONNECTION
Instruction: Give 5 words each from the given item that is related to the words given below:
MERCANTILISM LAISSEZ-FAIRE
SOCIALISM ENTREPRENEUR

TEST I: ESSAY. Explain the following briefly:
1. Differentiate Mercantilism and Laissez-Faire.

_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
2. What is the view of Joseph Schumpeter about Entrepreneur?

_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
TEST II: IDENTIFICATION. Identify the following statement and choose the correct answer from the box below:
MERCANTILISM JOSEPH SCHUMPETER KARL MARX LAISSEZ-FAIRE SOCIALISM
_______1. The first major economic theory known in the world.

_______2. He disagreed with Adam Smith and the laissez-faire theorists. He interpreted human history as a class
struggle between workers and employers.
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_______3. An economist explained that economic growth is started by people (whom he called entrepreneurs) who
produce goods not only for personal profit but also for the good of everyone around them.
_______4. This theory holds that the wealth of a nation can be measured by its ready supply of capital, generally
held in the concrete form of gold or silver.
_______5. They called for an economy where the government owned all the property and distributed everything
equally among all the people through _____.
_______6. He called entrepreneurs the backbone of the economy.
_______7. He declared that free enterprise (laissez-faire) would lead to increasingly severe losses and would
eventually bring about revolution by the workers.
_______8. An "invisible hand" that guides supply and demand, reflecting the concept that each person, by looking
out for herself, creates the best outcome for all.
_______9. According to him, this creates wealth not only for the people in business but also for the whole country
where the citizens work to provide for themselves and others and where they take care of their own
financial needs.
_______10. This theory states that the global supply of wealth is a fixed amount and that therefore any gain of wealth
by one nation must necessarily represent a loss by another.

• The theory of economic development discuss by this lesson are Mercantilism, Laissez-Faire and Socialism.
Mercantilism states that the global supply of wealth is a fixed amount and that therefore any gain of wealth by
one nation must necessarily represent a loss by another. National strength was based on limiting imports through
high tariffs and exporting as many goods as possible. Laissez-Faire according to Smith, this creates wealth not only
for the people in business but also for the whole country where the citizens work to provide for themselves and
others and where they take care of their own financial needs. Karl Marx disagree with Adam Smith they called for
an economy where the government owned all the property and distributed everything equally among all the
people through socialism. In 1934 Joseph Schumpeter, an economist, explained that economic growth is started
by people (whom he called entrepreneurs) who produce goods not only for personal profit but also for the good
of everyone around them.

file:///C:/Users/HP/Desktop/SEA%20MODULE/BGP_Entrepreneurship-in-Education.pdf
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TIME COVERAGE
PART 1: LESSON
a) Identify the factors that affect entrepreneurship in the Philippines describe by BSMBD;
b) Describe globalization; and
c) Explain the connection of globalization and entrepreneurship.
• Free trade – is an international trade left to its natural course without tariffs, quotas, or other restrictions.
• Commodity – is a raw material or primary agricultural product that can be bought and sold.
• Enterprise – refers to a business or company.
PART 3: DISCUSSION
GLOBALIZATION AND ENTREPRENEURSHIP

At present, we are experiencing and economic phenomenon called
“global capitalism” commonly called globalization.
GLOBALIZATION is characterized by free circulation of capital

worldwide and regulation by market forces or “free trade” where
there is an easy or “free flow” of goods from one country to
another because the taxes coming into a country has been lowered
or even removed.
This surge of a global economy was made possible by loosening and even suppressing the regulations established
by most countries to control trade, investments and financial transactions. Deregulations is accompanied by
“Privatization” or the transfer to private hands of publicly owned corporation, industries, bank and other services leading
to globalization.
Globalization was initiated in the 1950’s in the United States, then it swept through Europe in the 1970’s, Asia in
the 1980’s and it is still progressing. Indeed, in a similar matter of trade and exchange of goods, the world has become
much smaller.
FOLLOWING ARE THE REASON FOR THE FAST DEVELOPMENT OF GLOBALIZATION:

1. Globalization has emerged because of the advances in information, communication, and transportation (ICT)
technologies.
2. There are new techniques of production and new forms of organization that has given flexibility to the location of
industrial activities and reduced the share of wages in production.
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In the international scene, the most influential organization, notably the International Monetary Fund (IMF), the
World Bank (WB), and the World Trade Organization (WTO) are promoting the emergence of a global market. Politically,
the United States dominates the world scene and the dollar is the national currency. The collapse of the Soviet Union and
the unification of Germany have been removed obstacles to the spread of capitalism.
This situation made the world “Smaller” not physically but in the sense that travel time of information and
transportation have been made faster. For example, with the use of the telephone, mobile phone and the internet, you
can communicate with another person from any part of the world in a matter of seconds. That is why news travel very
fast. One can see television events in other part of the globe as they unfold. In addition, travel time has become shorter
because airplanes, boats, trains and other modes of transportation have become faster. About 15 years ago, it took 20-24
hours by plane to reach Western Europe like Frankfurt, Germany to Philippines. Now, one can reach the same destination
in 12 hours by commercial airplane.
All these developments have dramatically reduced the geographical barriers for the emerging international class
entrepreneur, manager and financers. The cost economic and financial transaction that crisscross around the world at
remarkable speeds have been greatly reduced. Trade transactions, as well as specular ventures, are now possible without
physical and time constraints.
Labor is becoming a dispensable commodity. It is Easy for multinational
companies to close down its factory in one country and transfer to another
country. The feeling pervades that the process of globalization and economic
integration is unavoidable. In many societies, the politician, the ordinary citizen
and some extent, the intellectuals share the convictions that the economy and
its current evolution are the forces shaping human affairs and future of
humanity.
The business in the community, if taken as a whole, become a sort of
huge basket that supports all the lives of the people there. These businesses
provide the people with all the goods they need to carry on their lives while making their money circulate and grow within
the community as well as within the country, or region and the whole world. Entrepreneurship improves the wellbeing of
all.
Entrepreneurship helps provide the following:

• Products and necessities that sustains life;
• Freedom from servitude, ignorance, social deprivation and misery and;
• Self-esteem for the entrepreneur: to be the person with the sense of self-worth and self-respect and being of service
to the community.
Enterprises and communities need each other to survive. Enterprises in the community often help each other too.
For example, the products of one enterprise can be raw material needed by the other enterprise. Thus, money circulates.
The combined efforts and cooperation of everyone in the community create more opportunities for citizen to work and
earn.
National well-being brings about development because people are assured of having the necessary goods on time,
within reach, as needed, even as money circulates and entrepreneurs make profit. Enterprises are the big factor in any
country’s development and national well-being. People get to have jobs, pay taxes, improve the circulation of money and
have goods to buy and share.
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The following are the indicators proving that a country has reached national well-being and true development:
1. Owners live within the community where their enterprise is located.
2. Enterprises serve the needs of the residents for products and services and make a living from doing this
3. The community has adequate supply of raw materials that the enterprise would need.
4. The community offers the enterprise a steady source of labor and in turn, is provided gainful employment by the
business.
5. The community willingly patronizes the enterprises and its products and
services.
6. Local government executives are supportive of the business enterprises.
7. Local Government executives are considerate and friendly to business owners.
8. Local Government executives assure the business peace and order at all times.
9. There is an abundance of water and power supply.
True development takes care of the whole persons, enabling the person to find
the richest possible expression of self. The lives of the entrepreneur and those of the
people around the entrepreneur are improved by the proper development.
Entrepreneurship makes development possible.
The department of trade and industry’s bureau of small and medium business development (BSMBD) describes
the following factors that affect entrepreneurship in the Philippines:
1. Top global executives believe that the growing number of consumers in emerging market will be the most important
factor of global business during the next five years.
2. With the AFTA and tariffs near zero, the Filipino entrepreneur’s market has grown from 92 million Filipinos to half
billion Southeast Asian. A huge market opens many opportunities.
3. Filipino enterprises will be exposed to intensive competition from lower-cost imports and locally based foreign firms.
4. With the trade liberalization, there is no such thing as a domestic market alone. Either an enterprise has to rise up
and compete or it dies.
5. Competitiveness depends on two major factors.
a. The business environment in the country (which is beyond the entrepreneur’s
control) and
b. The controllable condition within the enterprises
6. Entrepreneurs must do something to improve the conditions under their control.
7. Entrepreneurs must be more focused in building their niche markets.
8. Entrepreneurs must be more adaptive than their competitors are.
9. Entrepreneurs must be able to use appropriate technology. All these leads to
productivity, which helps the Filipino enterprises to compete in the global market.
The WTO is the only one international organization that deals with the global rules of trade between nations. Its
main function is to ensure that trade flows as smoothly, predictably and freely as possible. This is expected to bring about
more prosperous, peaceful and the accountable economic world. Virtually all decision in the WTO are taken by consensus
among all the member countries and they are ratified by the member’s parliaments. Trade friction is channeled into the
WTO’s dispute settlement process, which interprets agreements and commitments and how to ensure that countries
trade policies conform to them. That way, the risk of disputes spilling over into political or military conflict is reduced.
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By lowering the trade barriers, The WTO’s system breaks down other barriers between peoples and nations. At
the heart of the system- known as the multilateral trading system- are the WTO’s agreements, negotiated and signed by
the large majority of the worlds trading nations and ratified in their respective parliaments. These agreements are the
legal ground-rules for the international commerce. Essential, they are contracts, guaranteeing member countries
important trade rights. They also bind governments to keep their trade policies within agreed limits to everybody’s
benefits.
The Agreements are negotiated and signed by the government. But their purpose is to help producers of goods
and services, exporters and importers conduct their business. The goal is to improve the welfare of the peoples in the
member’s countries.

Instruction: Identify the meaning of the abbreviated words:
1. IMF _____________________________________________________________________________________
2. WB _____________________________________________________________________________________
3. WTO ____________________________________________________________________________________
4. APEC ____________________________________________________________________________________
5. ASEAN ___________________________________________________________________________________
6. AFTA ____________________________________________________________________________________
7. BSMBD __________________________________________________________________________________

Instruction: Give 5 factors that affect entrepreneurship in the Philippines describe by BSMBD and explain it briefly:
1. ______________________________________________________________________________________
Explanation: _____________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
2.______________________________________________________________________________________
Explanation: _____________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
3. ______________________________________________________________________________________
Explanation: _____________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
4. ______________________________________________________________________________________
Explanation: _____________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
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5. ______________________________________________________________________________________
Explanation: _____________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

The transition in the understanding and concretization of Entrepreneurship using the lens of theories in economic
development is expounded in this lesson. It highlights the value of appreciating entrepreneurship in the context of
historical and disciplinal basis. In this lesson will likewise touch on the globalization challenges faced by an entrepreneur
as well as the ethical orientation to which a business individual must commit.

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TIME COVERAGE
WEEK NO. DAY NO. 1-4
PART 1: LESSON
a) Identify the roles of different international organizations in helping the build an entrepreneurial
movement around the globe;
b) Enumerate the members of the following organization; and
c) Explain the following organization briefly.
• Array – is an ordered series or arrangement.
• Endeavors – refers to earnest and industrious effort, especially when sustained over a period of time.
• Nomenclature – is the term or terms applied to someone or something.
• Liberalization – is the removal or loosening of restrictions on something, typically an economic or political system.
• Consensus – is a general agreement.
PART 3: DISCUSSION
THE WORLD BANK

It offers an array of instruments including loans and grants to finance poverty
reduction and economic development efforts around the world.
THE BANK HAS TWO TYPES OF LENDING INSTRUMENTS:

Investment loans finance goods, works, and services in support of economic. Social
development projects in a broad range of sectors. They typically run for five to ten
years. Originally concentrated on financing hardware, engineering services, and
bricks and mortar, investment lending has come to focus more on institution
building, social development, and developing the public policy infrastructure
needed to facilitate private sector activity.
PROJECTS ARE CATEGORIZED ACCORDING TO THE FOLLOWING:

• Urban poverty reduction (involving private contractors in new housing construction)
• Rural development (formalizing land tenure to increase the security of small farmers)
• Water and sanitation (improving the efficiency of water utilities)
• Natural resource management (providing training in sustainable forestry and farming)
• Post-conflict reconstruction (reintegrating soldiers into communities)
• Education (promoting the education of girls)
• Health (establishing rural clinics and training health care workers)
Development Policy Loans provide quick-disbursing external financing to support policy and institutional reforms.
They typically run for one to three years. Originally designed to provide support for macroeconomic policy reforms,
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including trade policy and agriculture development policy loans have evolved to focus more on structural, financial sector,
and social policy reform, and on improving public sector resource management.
ASEAN
The Association of Southeast Asian Nations or ASEAN was established on August 8, 1967,
in Bangkok by the five original member countries, namely: Indonesia, Malaysia,
Philippines, Singapore, and Thailand. Brunei Darussalam joined on January 8, 1984,
Vietnam on July 28, 1995, Laos and Myanmar on July 23, 1997, and Cambodia on April
30, 1999
The ASEAN Declaration states that the aims and purposes of the ASEAN are:
To accelerate the economic growth, social progress, and cultural development in the
region through joint endeavors in the spirit of equality and partnership in order to strengthen the foundation for a
prosperous and peaceful community of Southeast Asian nations. To promote regional peace and stability through abiding
respect for justice and the rule of law in the relationship among countries in the region and adherence to the principles of
the United Nations Charter.
AFTA
At the Fourth ASEAN Summit in Singapore in January 1992, ASEAN initiated the ASEAN Free Trade Area, or AFTA,
which laid out a comprehensive program of regional tariff reduction, to be carried out in phases up to 2008. This deadline
was subsequently moved to 2003. Over the course of the next several years, the
program of tariff reductions was broadened and accelerated, and a host of "AFTA
Plus" activities was initiated, including efforts to eliminate non-tariff barriers and
quantitative restrictions, and harmonize customs nomenclature, valuation, and
procedures, and develop common product certification standards. In addition,
ASEAN later signed framework agreements for the intra-regional liberalization of
trade in services, and for regional IPR cooperation.
When the AFTA agreement was originally signed, ASEAN had only the
original six members (Brunei, Indonesia, Malaysia, Philippines, Singapore, and
Thailand). The other countries which joined ASEAN later (Vietnam in 1995, Laos and
Myanmar in 1997, and Cambodia in 1999) also signed the AFTA agreement in order
to join ASEAN. They were given longer time frames in which to meet AFTA's tariff
reduction obligations.
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APEC
The Asia-Pacific Economic Cooperation, or APEC, is the premier forum for facilitating economic growth, cooperation,
trade, and investment in the Asia-Pacific region.
• It is the only inter-governmental grouping in the world operating on the basis
of non-binding commitments, open dialogue and equal respect for the views of
all participants.
• Unlike the WTO or other multilateral trade bodies, APEC has no treaty
obligations required of its participants.
• Decisions made within APEC are reached by consensus and commitments are
undertaken on a voluntary basis.
• APEC was established in 1989 to further enhance economic growth and
prosperity for the region and to strengthen the Asia-Pacific community.
• It has worked to reduce tariffs and other trade barriers across the Asia-Pacific
region, creating efficient domestic economies and dramatically increasing
exports.
• The key to achieving APEC's vision are what are referred to as the "Bogor Goals" of free and open trade and
investment in the Asia-Pacific by 2010 for industrialized economies and 2020 for developing economies. These goals
were adopted by national leaders at the 1994 meeting in Bogor, Indonesia.
APECs 21 Member-Economies are Australia; Brunei Darussalam; Canada; Chile; People's Republic of China; Hong Kong,
China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The Republic of the
Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States of America; and Vietnam.

ACTIVITY: “I BELONG”
Instructions: Identify the country that belongs to the following organization. Write your answer on the given space below:
25 | P a g e

TEST I: MODIFIED TRUE OR FALSE. Identify the following statement. Write TRUE if the statement is correct and if the
statement is false change the underline word/s to make the statement correct. (2pts)
_______1. The World Bank offers array of instruments including loans and grants to finance poverty
reduction and economic development efforts around the world.
_______2. APEC was established in 1989 to further enhance economic growth and prosperity for the region
and to strengthen the Asia-Pacific community.
_______3. AFTA means ASEAN Freedom Trade Area.
_______4. The Association of Southeast Asian Nations or ASEAN was established on August 8, 1997.
_______5. APEC it has worked to reduce tariffs and other trade barriers across the Asia-Pacific region,
creating efficient domestic economies and dramatically increasing exports.
TEST II. ESSAY. Explain the following briefly:
1. THE WORLD BANK
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
2. ASEAN
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
3. AFTA
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
4. APEC
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
• The World Bank (WB) offers an array of instruments including loans and grants to finance poverty reduction and
economic development efforts around the world.
• ASEAN (The Association of Southeast Asian Nations) The principal objective of ASEAN, as stated in the Declaration, is
to accelerate economic growth, social progress and cultural development in the region through joint endeavors in
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the spirit of equality and partnership. This way, the foundation for a prosperous and peaceful community could be
laid.
• AFTA (ASEAN Free Trade Area) The objective of AFTA is to increase the ASEAN region's competitive advantage as a
production base geared for the world market.
• The Asia-Pacific Economic Cooperation (APEC) forum, established in 1989, has become the pre-eminent economic
forum in the Asia-Pacific region. Its primary purpose is to promote sustainable economic growth and prosperity in
the Asia-Pacific region.

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TIME COVERAGE
PART 1: LESSON
a) Identify entrepreneurship in the Philippines;
b) Distinguish the Trade Opportunity of the Philippines; and
c) Enumerate the barriers to entrepreneurship development.
• Revenue – refers to income, especially when of a company or organization and of a substantial nature.
• Prevalence – is the fact or condition of being prevalent; commonness.
• Bullish – is characterized by rising share prices; confident or optimistic about something.
• Inadequate – pertains to lacking the quality or quantity required; insufficient for a purpose.
PART 3: DISCUSSION
THE MSME DEFINED
The Philippines, through the Small and Medium Enterprise Development Council, has categorized enterprises
according to size in terms of assets and employment as follows:
In terms of employment generated, the large firms contribute about 30% to employment whereas the combined
firms of micro, small and medium contribute 70% of total employment. In terms of value added, the combined firms of
micro, small, and medium enterprises contribute only 32% compared to the 68% of the large firms.
The Philippine Government is very supportive of micro, small and medium enterprises as exemplified by the
Magna Carta for Micro, Small and Medium Enterprises the legal framework, which was enacted way back in 1991 as (RA
6897) then amended in 1997 as RA 8289. In 2007, the law was once again amended as RA 9501. This law created the Small
Enterprises Development Council to discuss and prepare the policies and programs for implementation by various
agencies involved in MSME development.
As shown in the 2009 data (National Statistics Office) below, the Philippines is a country of micro-entrepreneurs.
Of the three island groups, Luzon had the most number of micro, small, and medium enterprises with 517,788 or 68% of
total MSMEs. The Visayas had 106,930 or 14% while Mindanao had 137,718, 18% of total MSMEs, based on 2009 data. By
region, the National Capital Region, Region IV-A (CALABARZON), and Central Luzon lead with the most number of MSMEs.
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The Autonomous Region in Muslim Mindanao (ARMM), CARAGA Region, and the Cordillera Administrative Region (CAR)
lag behind with the least number of MSMEs.
DTI 2008-2010 Road Map

The Department of Trade and Industry, the Secretariat of the MSMED Council prepared the DTI Road MAP as follows:
• Promote services exports and nurture the capabilities of competitive exporting enterprises that produce high-
quality products.
• Sustain a more focused and aggressive export promotion campaign to maintain if not expand existing, as well as
target new and emerging, markets.
• Realize foreign market access arising from bilateral, regional, and multilateral negotiations.
• Improve the business environment that directly impacts on exporters.
• Pursue a country-imaging program to promote the Philippines as a source of quality and competitive products
and services.
TOTAL TRADE OPPORTUNITIES (TOR) OF THE PHILIPPINES

In 2006, the Philippines has shown high possible revenue streams from fashion with 136 total TOR received while coconut
products and motor vehicle parts received the lowest at 13 Total TOR each received. See table below:
BUSINESS OPPORTUNITIES AND PROSPECTS (2006)

REVENUE STREAM TOTAL TOR
Fashion 136
Food 106
Home Furnishing 51
Construction Materials 49
Giftware and Holiday Decors 47
Marine Products (including Carageenan) 36
IT Products 27
Mineral Products 21
Coconut Products 18
Organic Products 13
Motor Vehicle Parts 13
Others 28
Total Trade Opportunity Report (TOR) Received 545
ENTREPRENEURIAL ACTIVITIES IN THE PHILIPPINES AS

REPORTED BY GEM (Philippine Report 2006-2007)
 Four out 10 adult Filipinos aged 18-64 are engaged in business - equivalent to 19 million of the whole country's
population. As a result, the Philippines ranks second among countries with the most individuals owning a business.
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 About 9.5 million comprise the established businesses (EB) in the country. This prevalence rate makes the
Philippines rank No. 1 globally among those with high EB levels.
 For every Total Early-Stage Entrepreneurial Activity (TEA), one is likely to survive as an established business.
 The Philippines ranked 6th globally among those with high rates of discontinued business.
 There is no strong demographic barrier in the country.
 Globally, the country has the least gender gap among business owners — women are more active in starting a
business than men.
 Attitude and outlook are bullish — ranked 5th globally and highest in Asia in this aspect.
 Eight out of 10 adults are also considering starting a business as a desirable career choice.
Entrepreneurial Challenges
❖ Most businesses remain small in scale and are motivated by necessity.
❖ Low start-up capital — only PHP 10,000 or less with capital dipping at
less than PHP 1,000.
❖ There is a dearth of "angel investors" — only 1% of the country's whole
population is classified as non-owner investors.
❖ There is a lack of entrepreneurial education and training.
❖ There is a lack of support from concerned government agencies.
❖ There is the lack of access to financing.
Barriers to Entrepreneurship Development

Entrepreneurs, especially in the rural areas, face the following non-financial barriers:
1. Difficulty finding information on local regulations, 4. Issue of graft and corruption
taxation, and environmental laws.
2. Inadequate infrustrature facilities. 5. Resistance to technological advancement
30 | P a g e
3. Lack of support from local government 6. Inadequate digital connections and internet facilities
ACTIVITY: “ENTREPRENEURSHIP IN THE PHILIPPINES: A PHOTO COLLAGE”
Instructions: Collect picture from newspapers, magazines, and internet about your view on how barriers in
entrepreneurship affects their development here in the Philippines. Create your opinion through posting a photo collage
in the given space below and explain your collage briefly.
EXPLANATION OF YOUR COLLAGE:

___________________________________________________________________
_______________________________________________________________________________________________
_
_______________________________________________________________________________________________
_
_______________________________________________________________________________________________
_
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_______________________________________________________________________________________________
_
_______________________________________________________________________________________________
_
_______________________________________________________________________________________________
_

Give a possible solution in each Barriers to Entrepreneurship Development:
1. Difficulty finding information on local regulations, taxation, and environmental laws.

SOLUTION: ___________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
2. Inadequate infrustrature facilities

SOLUTION: ___________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
3. Lack of support from local government

SOLUTION: ___________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
4. Issue of graft and corruption

SOLUTION: ___________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
5. Resistance to technological advancement

SOLUTION: ___________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
6. Inadequate digital connections and internet facilities

SOLUTION: ___________________________________________________________________________
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_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

• Poverty incidence in the Philippines remains above 20 percent of the population and the Philippines government
address this issue through entrepreneurship. Entrepreneurship can provide the solution by creating wealth, jobs,
and social empowerment. In this lesson provides an overview of the entrepreneurial activity in the Philippines, its
opportunities and challenges.

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TIME COVERAGE
PART 1: LESSON WEEK NO. 6 DAY NO. 1-2
CHAPTER 4: PEAK INTO THE RISE OF FILIPINO ENTREPRENEURS
a) Identify some Positive Developments in the Philippines;
b) Understand the Importance of Local Communities in the Philippines; and
c) Explain Entrepreneurship in the Philippines based on the class discussion and personal readings.
• Ventures – is a risky or daring journey or undertaking.
• Countryside – is the land and scenery of a rural area.
• Grassroots – is the most basic level of an activity or organization.
• Local Community – refers to a group of interacting people sharing an environment.
PART 3: DISCUSSION
Some Positive Developments in the Philippines

• SHARMA (1977) found that entrepreneurs in the Philippines were independent and highly motivated to take risks,
with a great desire to maximize their potentials. The same study also asserted that the "Filipino entrepreneur is
college educated and hails from a business-oriented family." (p.223)
• ELNAMAKI, (1988), reported a declining level of small business self-employment in the Philippines.
• According to ZWIERCZEK and JATUSRIPATAK (1994), who examined cultural features of entrepreneurship in the
Philippines, entrepreneurs in this country appear to have greater advantages than elsewhere in Southeast Asia.
The authors described their samples as technically skilled, innovative, and opportunistic.
• CHEN (1997) focused on small-scale retailers in the country.
• While the ETHNIC CHINESE in the Philippines have been very active in small business development, indigenous
Filipinos have tended to exhibit a lesser incidence of entrepreneurship.
• Since the 1980s, several measures have been taken to broaden the appeal of entrepreneurship and to assist
Filipino entrepreneurs. Despite efforts to promote and finance business ventures, several constraints have
hindered small enterprise development in the Philippines.
• The unequal regional development shows gaps in infrastructural and support services for entrepreneurial
activities at the regional level. This problem should be addressed by government executives who have access to
development funds.
• This unfortunate scenario explains why people in the countryside leave for the cities, believing that the metropolis
is heaven, only to be frustrated to find no promised land. Had there been jobs in the countryside, these people
will not take the risk of going to parts unknown.
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Local Communities: We are in This Together

• E.F. SCHUMACHER (Small is Beautiful, 1973) stated that developing the countryside is the best way for a country
to grow in a sustainable way.
• Former Tanzanian President JULIUS KAMBARAGE NYERERE has said, "Development is people development,
development of themselves, their lives, their environment... It will not occur unless governments are absolutely
committed to attacking poverty at its roots in the rural areas...power and development will occur, if and only if,
the people can organize their power in their own interests. If real development is to take place, the people have
to be involved" (From Nyerere's book Uhuru na Maendeleo (Freedom and Development), 1973).
• The One Town One Product (OTOP) program of the DTI:
✓ An example of developing communities at the grassroots.
✓ It advocates the promotion of local tourism and the town's products.
✓ The concept of OTOP-Philippines is adapted from Japan's successful One Village One Product (OVOP)
project, WI was started in 1979 by Governor Morihiro Hiramatsu of Oita Prefecture as a form of people's
participation in the regional development of that country.

ACTIVITY: “ENTREPRENEURSHIP IN THE PHILIPPINES: A PHOTO COLLAGE”
Instructions: Collect pictures from newspaper, magazines, and internet about your view of entrepreneurship in the Philippines.
Create your opinion through posting a photo collage in the given space below and explain your collage briefly.
35 | P a g e
EXPLANATION OF YOUR COLLAGE:

TEST I: IDENTIFICATION. Identify the following:
_______1. He stated that developing the countryside is the best way for a country to grow in a sustainable way.
_______2. An example of developing communities at the grassroots.
_______3. He has said, "Development is people development, development of themselves, their lives, their
environment... It will not occur unless governments are absolutely committed to attacking poverty at its roots in
the rural areas...power and development will occur, if and only if, the people can organize their power in their
own interests. If real development is to take place, the people have to be involved".
_______4. He reported a declining level of small business self-employment in the Philippines.
_______5. He found that entrepreneurs in the Philippines were independent and highly motivated to take risks,
with a great desire to maximize their potentials.
_______6. He focused on small-scale retailers in the country.
_______7. The ____________ in the Philippines have been very active in small business development, indigenous
Filipinos have tended to exhibit a lesser incidence of entrepreneurship.
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_______8. What does OTOP stands for?

_______9. It advocates the promotion of local tourism and the town's products.
_______10. He examined cultural features of entrepreneurship in the Philippines, entrepreneurs in this country
appear to have greater advantages than elsewhere in Southeast Asia. The authors described their samples as
technically skilled, innovative, and opportunistic.

• Entrepreneurship can provide the solution by creating wealth, jobs, and social empowerment. If we are to
address the issue of poverty with some degree of success, history tells us we have no choice but to actively
encourage entrepreneurial ventures. In the Philippines, entrepreneurship is viewed as important to empowering
the poor, enhancing production, and as an impetus to innovation.

• Entrepreneurship in the Philippines: Opportunities and Challenges for Inclusive Growth
https://www.cipe.org/resources/entrepreneurship-philippines-opportunities-challenges-inclusive-growth/
37 | P a g e
TIME COVERAGE
PART 1: LESSON
CHAPTER 5: ETHICAL ISSUES IN ENTREPRENEURSHIP
a) Explain how Ethics is a key ingredient to their success as entrepreneurs;
b) Define Ethics on their own way of understanding; and
c) Cite Example of people whom they think have “character”.
• Ethics – is a set of moral principles that govern a person's behavior or the conducting of an activity.
• Code of conduct – states the rules, values, ethical principles and vision for your business. Having a code of
conduct in your workplace provides staff with clear standards and expectations of how to do their job.
• Integrity – is the quality of being honest and having strong moral principles; moral uprightness.
PART 3: DISCUSSION
In real life, entrepreneurs encounter ethical problems all the time. This is why it is good to discuss ethics early on
in the budding entrepreneur’s life. Entrepreneurs are faced with complex moral problems related to basic fairness, costing
and pricing dilemmas, distribution choices, and outright answers to these ethical questions, airing these ethical dilemmas
would be a good first step to making the students aware of what they will encounter in real life.
The Importance of Ethics in Business

• DAVID MCCLELLAND (McClelland, D. C.: 1961, The Achieving
Society, D. Van Nostrand, New York) was among the first
contemporary scholars to ask serious ethical questions about
entrepreneurship issuing a call for more study.
• He observed, "We do not know at the present time what makes

an entrepreneur more or less ethical in his dealings but obviously
there are few problems of greater importance for future research."
• Entrepreneurs are today urged to look seriously into ethics

because more and more people realize that the saying "We are our brother's keeper" is true. Capital and money
in the enterprise become depleted but the character of the
entrepreneur outlasts these material resources.
• Ethics is internally imposed by the character of the entrepreneur.

Honesty cannot be imposed from outside the person; honesty is part of
the person's character, carried over from the person's upbringing and
character development. Without ethics, the person will fall under the
weight of corruption, which in some readings, is termed lack of conscience or lack of character.
38 | P a g e
The government can impose laws and organizations can draw up a code of conduct for the employees. But these
are intended for people who violate them. Those who have integrity obey these laws and ordinances as part of their
character, of who they are. Doing the right thing works from an internal core and forms an upright character. External
codes and laws can force people to do right but fail to change the internal core of one's character.

ACTIVITY: IMORTANCE OF ETHICS IN BUSINESS
Instructions: Draw a poster that shows importance of Ethics in Business. Draw it on the given space below and explain it briefly.
EXPLANATION: ___________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
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ESSAY: Read the questions. Briefly, write your answer in the space provided in each item.
1. Discuss in your own way of understanding about the term “CHARACTER”.

__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
2. Cite 3 examples of people whom you think have “character.” You can also explore movies or TV series that
show people have “character.”
a. CHARACTER: _____________________________________________________________________________
• What makes these people different from others? ___________________________________________
_____________________________________________________________________________________
• What makes them who they are? ________________________________________________________
_____________________________________________________________________________________
• What problems do they face which attempt them to lose their character and become unethical in their
relationship with other? _______________________________________________________________
_____________________________________________________________________________________
b. CHARACTER: _____________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
c. CHARACTER: _____________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
3. Explain why ethics is difficult to maintain in society. ________________________________________

____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
40 | P a g e

• Business ethics, also called corporate ethics, is a form of applied ethics or professional ethics that examines the
ethical and moral principles and problems that arise in a business environment. It can also be defined as the
written and unwritten codes of principles and values, determined by an organization’s culture, that govern
decisions and actions within that organization. It applies to all aspects of business conduct on behalf of both
individuals and the entire company. In the most basic terms, a definition for business ethics boils down to
knowing the difference between right and wrong and choosing to do what is right.

• Business Ethics: https://courses.lumenlearning.com/boundless-business/chapter/business-ethics/
41 | P a g e
TIME COVERAGE
PART 1: LESSON
a) Understand why Ethical Entrepreneur are important for the right and sustainable development of
the country;
b) Create their own Code of Conduct; and
c) Discuss the reason why ethics is important in Entrepreneurship.
• Dilemmas – is a situation in which a difficult choice has to be made between two or more alternatives, especially
equally undesirable ones.
• Ethical – is the act of avoiding activities or organizations that do harm to people or the environment.
• Utilize – is to make practical and effective use of.
PART 3: DISCUSSION
Reasons Why Ethical Entrepreneurs are Important for the Right and Sustainable
Development of a Country
• We do not only want to grow and develop; but to grow and develop in the right way,
which is the sustainable way. Sustainable development is centered not on science, not
on technology but on man.
• Human beings (employees, customers, suppliers, the members of the community
where the business is located) need to live healthy, dignified, and productive lives in
harmony with nature.
• Thus, an entrepreneur must run his business taking into account his responsibilities not
only towards himself but also towards others and towards the gifts of nature that he
often utilizes for his business.
• In other words, he must run his business based on high ethical standards.
Consider an entrepreneur who exploits his employees, overworks them, and underpays them.
42 | P a g e
• Will these workers give their best efforts in producing goods and services?
• Will they serve customers efficiently and cheerfully?
• How long will they stay in their jobs?
Or take a quick-buck operator, a businessperson out to earn a lot of money in one or two deals by cheating customers
through overpricing and deceptive product information.
• Do you think such an entrepreneur will thrive in business for long?
• How can that be possible when buyers eventually lose their interest due to the poor quality of the goods being
sold, failure to deliver on promises, shoddy service, short- lived demand, and other negative reasons?
Doing business, the ethical way builds consumer loyalty, keeps good employees and makes them happy and
productive, and creates a stable environment that minimizes unexpected problems. A country whose base of job-
generating, income-producing entrepreneurs stick to high standards of conduct is likely to sustain its socio-economic
growth because it is one that maximizes prosperity, harmony, productivity, and natural resources.

ACTIVITY: “EMPLOYEE-CUSTOMER SATISFACTION”
Instructions: Interview an employee of any company. Ask the employee if he is happy or proud to belong to his company
and why. Probe into how the company is treating the employee and his co-workers as well as its customers.
EMPLOYEE-CUSTOMER SATISFACTION
NAME OF EMPLOYEE
NAME OF COMPANY
POSITON
Is he/she happy or proud to his/her company? Why?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
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How the company is treating the employee and his co-workers as well as its customers?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
ACTIVITY 2: “CODE OF CONDUCT”

Instructions: Imagine you are about to form a corporation. List down the values that your company would upholds as
priorities. Write a brief code of conduct for your imaginary company.
1. ______________________________________________________________________________________________
________________________________________________________________________________________________
2. ______________________________________________________________________________________________
________________________________________________________________________________________________
3. ______________________________________________________________________________________________
________________________________________________________________________________________________
4. ______________________________________________________________________________________________
________________________________________________________________________________________________
5. ______________________________________________________________________________________________
________________________________________________________________________________________________
6. ______________________________________________________________________________________________
________________________________________________________________________________________________
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ESSAY: Instruction: Read and analyze the question. Answer the question based on your own understanding and write
your answer in the space provided below:
1. Why do you think we are discussing ethics in entrepreneurship?

___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
2. How can ethics affect the growth and development of a business?

___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________

• Sound Entrepreneurial ethics helps to develop relationships built on mutual trust and respect. Without this
trust, businesses will not survive, thus investments will not be made. Successful business empires have gained
credibility and reliance as a result of their sound ethical entrepreneurial practices.

• Entrepreneur Ethics And Importance Of Ethics In Key Areas Of Business
https://www.desientrepreneurs.com/entrepreneur-ethics-
importance/#:~:text=Sound%20Entrepreneurial%20ethics%20helps%20to,their%20sound%20ethical%20entrepr
eneurial%20practices.
• Why Are Good Ethics So Important to Businesses?
https://www.chartercollege.edu/news-hub/why-are-good-ethics-so-important-businesses
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TIME COVERAGE
PART 1: LESSON
a) Differentiate ethics from law;
b) Enumerate the advantages of ethical behavior in business; and
c) Create a slogan that conveys the importance of ethical behavior in business.
• Perception – is the ability to see, hear, or become aware of something through the senses.
• Compensate – to pay (someone) for work performed.
• Efficiently - (especially of a system or machine) achieving maximum productivity with minimum wasted effort or
expense.
PART 3: DISCUSSION
DEFINING ETHICS
To define ethics, it is important to understand first the closely related concepts of "values" and "morality* with which
ethics is often confused.
• Values are the qualities or ideas which each of us cares about, upholds, and considers important.
o They can be morally or ethically based or simply based on our natural wants and needs. They can be
good or bad, reasonable or unreasonable.
o We tend to act according to the things we value.
• Morality is one's individual perception of right and wrong, good and evil.
o The 16thcentury philosopher Immanuel Kant believes that the moral law is within each of us, guiding us
in our actions.
o While one's perception of morality does not directly affect others, it does influence the attitudes and
values of a society.
• Ethics is a set or system of behavior based on moral ideals.
o It is a product of society; no wonder many ethical issues deal with the relationship between the
individual and the group.
o Some of the most basic ethical concepts include honesty, integrity, justice, equality, and respect.
46 | P a g e
ETHICS DIFFERENTIATED FROM THE LAW

Behaving ethically is often confused with behaving lawfully. They are closely related but not quite the same.
ETHICS LAW
✓ Ethics is about what is right and what is wrong. ✓ Law is about what is lawful and what is unlawful.
✓ The law will go after violators and mete out
✓ Ethics will not punish anyone who breaks its
sometimes too harsh penalties, penalties that may
rules.
break ethical standards.
✓ A law is made with ethics as a guiding principle; it is
✓ We can always wish that all ethical behavior would
ethics "codified" for the purpose of regulating and
be upheld by law. But this does not always happen.
maintaining order in society.
EXAMPLE: Someone can produce and sell good-quality products at very

reasonable prices, consistently giving his customers good value for their
money. But if he neglected to register his business with the appropriate
agencies of government, this otherwise ethical entrepreneur is breaking
the law.
Why Ethical Business is Good Business

Ethics are moral guidelines that govern good behavior. Meaning, behaving ethically is doing what is morally right.
Behaving ethically in business is widely regarded as good business practice.
THE ADVANTAGES OF ETHICAL BEHAVIOR IN BUSINESS

Cited by Brian Hill writing for the Chron website (http://smallbusiness.chron.com) and adapted here:
BUILD CONSUMER LOYALTY

• Consumers are getting increasingly educated and aware of their rights.
• They may let a company take advantage of them once, but will not tolerate being
treated shoddily and unfairly again. They would write letters, e-mail, make phone
calls, complain to the DTI (Department of Trade and Industry), and post their bad
experience on Facebook and other social media.
• A good experience with a business can easily spread by word of mouth and
online. Remember that companies need a broad base of loyal customers, repeat
customers attracted to the business because they have been served efficiently
and given a good deal, for what they pay.
• A reputation for doing ethical business will help build this large and loyal customer base.
47 | P a g e
KEEP GOOD EMPLOYEES

• Employees, the efficient and talented ones, will stay long with a company only
if they believe in it, are proud of it, and are happy in it.
• They would want to be compensated fairly for the work and commitment they
put in.
• They would want their managers to be transparent and truthful about what is
going on in the business that would affect them.
• They would want to stick with a company with a prestigious name.
• Entrepreneurs who observe good ethical practices have a better chance of retaining the most talented and
hardworking people.
IMPROVE PRODUCTIVITY IN THE WORKPLACE

• When employees are well compensated and happy and proud to belong to a company,
morale in the workplace rises.
• People are motivated to do their best and to cooperate willingly in all the company’s
productivity programs.
• Only happy employees can make customers happy — an application of the principle "You
cannot give what you do not have."
AVOID LEGAL PROBLEMS

In its eagerness to make a profit:
• A business may ignore worker safety.
• Underpay their employees or refuse to give them legally mandated benefits.
• It may violate environmental regulations such as having a proper waste disposal system. Or possibly ignore proper
labeling and packaging laws.
• Install "jumpers" to reduce their utility costs.
The penalty for these violations may be severe, including fees, fines and sanctions
and even imprisonment, not to mention a severely blemished reputation that
would be very hard to erase from the public's mind.
An ethical business builds, in the long run, a stable environment that minimizes unexpected problems and maximizes
harmony, prosperity, and productivity. Henry Ford is quoted to have said, "A business that makes nothing but money is a
poor kind of business." so, it makes good business sense to be good, or as Anita Roddick (of Body Shop fame) asserts,
"Being good is good business."
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ACTIVITY: “SLOGAN MAKING”
Instructions: Create a slogan that conveys the importance of Ethical behavior in business. Use the given space below to
write the slogan.
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MODIFIED TRUE OR FALSE. Instructions: Identify the following statement. Write TRUE if the statement is correct and if
the statement is false change the underline word/s to make the statement correct. (2pts)
_______1. Morality is one's individual perception of right and wrong, good and evil.
_______2. Henry Ford is quoted to have said, "A business that makes nothing but money is a poor kind of business."
_______3. When employees are well compensated and happy and proud to belong to a company, morale in the
workplace decreases.
_______4. Behaving ethically in business is widely regarded as bad business practice.
_______5. Morality are the qualities or ideas which each of us cares about, upholds, and considers important.
_______6. The law will not punish anyone who breaks its rules.
_______7. Entrepreneurs who observe good ethical practices have a better chance of retaining the most talented
and hardworking people.
_______8. A reputation for doing ethical business will help build this large and loyal customer base.
_______9. Values is about what is lawful and what is unlawful.
_______10. One's perception of morality does not directly affect others; it does influence the attitudes and values of
a society.
• Ethics is the moral principles that govern a person's behavior or the conducting of an activity. Morals are
concerned with the principles of right and wrong behavior and the goodness or badness of human character.
Law is the system of rules that a particular country or community recognizes as regulating the actions of its
members and may enforce by the imposition of penalties.

• Ethics vs Morals vs Law
https://www.linkedin.com/pulse/ethics-vs-morals-law-dr-arturo-perez
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TIME COVERAGE
PART 1: LESSON
a) Identify the most Basic Business Ethics concepts;
b) Understand Ethics and Corporate Social Responsibility; and
c) Construct their own definition of Honesty, Integrity and Fairness.
• Dependability – is the quality of being trustworthy and reliable.
• Authoritarianism – is the enforcement or advocacy of strict obedience to authority at the expense of personal
freedom. Lack of concern for the wishes or opinions of others.
PART 3: DISCUSSION
BUSINESS ETHICS CONCEPTS: APPLICATIONS

The most basic business ethics concepts are three: honesty, integrity, and fairness.
MOST BASIC BUSINESS ETHICS CONCEPTS

• Honesty should be the hallmark of a company's
dealings with its employees, customers, and other
publics.
HONESTY
• Honesty to customers and the public is manifested
through:
✓ Truthful and ethical advertising.
✓ Proper labeling and naming of what goes into a
product.
✓ Charging a reasonable cost for the quality of the
product or service it sells.
• It is also keeping its word to everyone it deals with

and in everything it does.
• Honesty applies to every part of running a business

while making a profit.
51 | P a g e
• Integrity is related to honesty.

✓ A person with integrity keeps agreements and
promises. The basic business ethics concept of
INTEGRITY integrity means keeping one's word and
following through.
• Dependability and telling the truth are basic integrity

ethics concepts that are used in all aspects of
business from serving customers to hiring and firing
employees.
• Integrity is saying "no" to graft and corruption.
• Integrity may also be manifested by companies by

increasingly empowering their people.
• An integrity perspective may mean a shifting away

from forcing employees to act in certain ways to
more freedom to take initiatives, from
authoritarianism to shared responsibility and power.
• Fairness is paying employees just wages for their

work and dedication, giving clients and customers
value for their money and not overcharging them nor
sneakily downsizing the product that is sold to them.
FAIRNESS • It is paying their suppliers on time and giving them

support when they need it.
• Fairness is encouraging a healthy competitive

atmosphere in the market.
• Fairness in business dealings means being objective

and interested in creating a win-win situation for both
parties whether that is employer-employee or
company-client or company-supplier, or business
versus its competitors.
• In business relationships, fairness means never taking

unfair advantage of others through manipulation,
concealment, abuse of privileged information,
misrepresentation of material facts or any other
unfair-dealing practice.
52 | P a g e
Ethics and Corporate Social Responsibility

• Ethics and social responsibility go together like horse and carriage.
• A socially responsible firm is often an ethical firm just as an ethical firm is often socially responsible. But not always.
There are companies running big and well-publicized social-responsibility Programs found to be engaged in
ethically dubious acts. These companies may just be out to gain brownie points in public relations and image
building but not sincerely committed to ethical business practices.
• What is good for the business is not always good for society.
• Take the case of a liquor or tobacco business. Producing and selling these products do not necessarily violate
business ethics but is it socially responsible? The same applies to casinos and other companies that make a
business out of gambling.

ACTIVITY: “MOST BASIC BUSINESS ETHICS CONCEPTS”
Instructions: Construct your own definition using the acronym below by giving a word that is related to it. Explain each
word briefly.
H- _________________________________________________________________________
O- _________________________________________________________________________
N- _________________________________________________________________________
E- _________________________________________________________________________
S- _________________________________________________________________________
T- _________________________________________________________________________
Y- _________________________________________________________________________
I- _________________________________________________________________________
N- _________________________________________________________________________
T- _________________________________________________________________________
E- _________________________________________________________________________
G- _________________________________________________________________________
R- _________________________________________________________________________
T- _________________________________________________________________________
Y- _________________________________________________________________________
53 | P a g e
F- _________________________________________________________________________
A- _________________________________________________________________________
I- _________________________________________________________________________
R- _________________________________________________________________________
N- _________________________________________________________________________
E- _________________________________________________________________________
S- _________________________________________________________________________
S- _________________________________________________________________________

IDENTIFCATION: Direction: Identify what basic business ethics is being describe:
_______1. It is manifested through truthful and ethical advertising.
_______2. It is also related to honesty.
_______3. It is saying “no” to graft and corruption.
_______4. It is paying just wages for the employees work and dedication.
_______5. It is encouraging a healthy competitive atmosphere in the market.
_______6. It is also keeping its word to everyone it deals with and in everything it does.
_______7. Dependability and telling the truth are basic ________ ethics concepts that are used in all aspects of
business from serving customers to hiring and firing employees.
_______8. It means never taking unfair advantage of others through manipulation, concealment, abuse of privileged
information, misrepresentation of material facts or any other unfair-dealing practice.
_______9. It may also be manifested by companies by increasingly empowering their people.
_______10. This can be manifested through charging reasonable cost for their quality of the product or service it sells.

• Business ethics, also called corporate ethics, is a form of applied ethics or professional ethics that examines the
ethical and moral principles and problems that arise in a business environment. It can also be defined as the
written and unwritten codes of principles and values, determined by an organization’s culture, that govern
decisions and actions within that organization. It applies to all aspects of business conduct on behalf of both
individuals and the entire company. In the most basic terms, a definition for business ethics boils down to
knowing the difference between right and wrong and choosing to do what is right.

• Business Ethics
https://courses.lumenlearning.com/boundless-business/chapter/business-ethics/
• What are Business Ethics?
https://corporatefinanceinstitute.com/resources/knowledge/other/business-ethics/
54 | P a g e
TIME COVERAGE
PART 1: LESSON
CHAPTER 6: BUSINESS PLAN
a) Explain how business plan is helpful in determining when an idea has the potential to become a
successful business;
b) Identify the importance of each parts of business plan; and
c) Determine the three primary purposes of business plan.
• Invaluable – means extremely useful; indispensable.
• Proprietorship – is a business or property, etc., owned by a proprietor.
• Unforeseen – means not anticipated or predicted.
• Tackling – to make determined efforts to deal with (a problem or difficult task).
PART 3: DISCUSSION
Creating a business plan may be challenging but having one far outweighs its benefits with no plan at all. It serves
as a map, a communication tool what to do and what not to do. This lesson outlines the basics of a business plan and
determine when a business opportunity exists.
WHAT IS A BUSINESS PLAN?

• A Business Plan is an invaluable tool for any entrepreneur.
• It is a written document, which precisely defines your business whether it is
a single proprietorship, partnership or a corporation.
• It describes the experiences and talents of those who are starting the
business.
• The details of business financial plan. It explains who is in charge and the
duties of the staff.
• It identifies your goals and serves as your enterprise resume.
• It helps you allocate resources properly, handle unforeseen complications,
and make the right decisions.
A BUSINESS PLAN HAS THREE PRIMARY PURPOSES:

1. To serve as an action plan.
This will help an entrepreneur pull apart the pieces of starting a business and examine each piece by itself.
By breaking down tasks into smaller one is more viable than tackling a big challenging task at once.
55 | P a g e
2. To serve as a road map.

It is an invaluable tool to help the entrepreneur on track of its goal. It guides the business
to achieve what it intends to pursue.
3. To serve as a sales tool.

A business plan serves a tool in attracting investors. A well-
written business plan can convince potential financiers to put money in the business.
A comprehensive business plan is crucial for start-up business. It defines the entrepreneur's vision and serves as the
company's resume. On top of the reasons mentioned above, there are further reasons for writing a business plan.
• To convince oneself that the new venture is worthwhile before making a significant financial and personal
commitment.
• To assist management in goal-setting and long-range planning.
• To attract investors and get financing.
• To explain the business to other companies with which it would be useful to create an alliance or contract.
• To attract employees.
BUSINESS PLAN:
• A business plan can help an entrepreneur to allocate resources appropriately, handle unexpected problems, and
make good business decisions.
• The business plan helps the entrepreneur shape her original vision into a better opportunity by raising critical
questions, researching answers for those questions, and then answering them.
• A well-organized plan is essential part of any loan application. It should specify how the business would repay any
borrowed money.
BASIC PARTS OF A BUSINESS PLAN

Here is a brief overview of the way a typical business plan would be organized:
1. COMPANY DESCRIPTION
• The location of the business and the kind of ownership or the legal structure of the business.
2. MISSION STATEMENT OF THE BUSINESS
3. LONG AND SHORT-TERM GOALS
4. ORGANIZATION (ORGANIZING, CONTROLLING AND DIRECTING)

• What is the organizational set-up and who is in-charge of each department? What are the tasks of each employee?
What are your operational procedures?
5. PRODUCT (OR SERVICE)
• What are the goods you are going to produce or services you are going to render to create revenue for the
business?
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6. PRICE
• What is the selling price of your product or service?
7. PROMOTION AND POSITIONING

• What are strategies in promoting your product or services? What kind of branding and advertising you need to take
to create sales of your product or services? What is your unique selling proposition?
8. TARGET MARKET
• Who is your primary and secondary target market? How are you going to reach your market?
9. COMPETITIVE ANALYSIS
• Who will be your direct and indirect competitors? How these competitors perform in the market?
10. FINANCIAL INFORMATION

• How much capital you need to create a revenue? What are your expenses and projected sales?
11. SWOT ANALYSIS

• What are the strengths, weaknesses, opportunities and threats of the company? How do we overcome the
weaknesses and threats? How do we maximize the strengths and opportunities?
12. TIMETABLE
• When are you going to implement the plan? What is the schedule for organizing, marketing, production?

ACTIVITY: “BUSINESS FORMATION: ITS ADVANCE AND DISADVANATAGE”
Instructions: Construct your own definition using the acronym below by giving a word that is related to it.
B-
U-
S-
I-
N-
E-
S-
S-
P-
L-
A-
N-
57 | P a g e

Instructions: Explain the importance of each part of business plan. Write the answer on the given space below:
1. COMPANY DESCRIPTION ___________________________________________________________________________
__________________________________________________________________________________________________
2. MISSION STATEMENT OF THE BUSINESS _______________________________________________________________

__________________________________________________________________________________________________
3. LONG AND SHORT-TERM GOALS _____________________________________________________________________

__________________________________________________________________________________________________
4. ORGANIZATION (ORGANIZING, CONTROLLING AND DIRECTING) ____________________________________________

__________________________________________________________________________________________________
5. PRODUCT (OR SERVICE) ____________________________________________________________________________

__________________________________________________________________________________________________
6. PRICE ___________________________________________________________________________________________
__________________________________________________________________________________________________
7. PROMOTION AND POSITIONING _____________________________________________________________________

__________________________________________________________________________________________________
8. TARGET MARKET __________________________________________________________________________________

__________________________________________________________________________________________________
9. COMPETITIVE ANALYSIS ____________________________________________________________________________

__________________________________________________________________________________________________
10. FINANCIAL INFORMATION _________________________________________________________________________

__________________________________________________________________________________________________
11. SWOT ANALYSIS _________________________________________________________________________________

__________________________________________________________________________________________________
12. TIMETABLE _____________________________________________________________________________________

__________________________________________________________________________________________________

• A business plan is a written description of your business's future, a document that tells what you plan to do and how you
plan to do it. If you jot down a paragraph on the back of an envelope describing your business strategy, you've written a
plan, or at least the germ of one. Business plans are inherently strategic.
• An Introduction to Business Plans
https://www.entrepreneur.com/article/38290
• How to Write a Business Outline Plan Step By Step
https://www.thebalancesmb.com/business-plan-outline-2947032
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TIME COVERAGE
PART 1: LESSON
CHAPTER 6: BUSINESS PLAN
a) Identify SWOT ANALYSIS;
b) Construct their own SWOT analysis; and
c) Compare and analyze their prices, customer service, kind of customer, community involvement,
promotion, quality, public image and financial success of the two (2) business that sell similar
product.
• Leveraging – is the use (something) to maximum advantage.
• Pivot – is the central point, pin, or shaft on which a mechanism turns.
PART 3: DISCUSSION
SWOT ANALYSIS
• A SWOT analysis is a compilation of your company's strengths, weaknesses, opportunities and threats.
• The primary objective of a SWOT analysis is to help organizations develop a full awareness of all the factors involved
in making a business decision.
• Perform a SWOT analysis before you commit to any sort of company action, whether you are exploring new initiatives,
considering opportunities to pivot or altering a plan midway through its execution.
• Use your SWOT analysis to discover recommendations and strategies, with a focus on leveraging strengths and
opportunities to overcome weaknesses and threats.
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ACTIVITY: “MY OWN BUSINESS”
Instruction: What one particular business do you want to put up? What are the reasons you want to start up this kind of
business?
The kind of business I want to start-up is ___________________________________

_____________________________________________________________________
_____________________________________________________________________
Because ______________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
ACTIVITY 2: “SWOT ANALYSIS”

Instruction: Create a SWOT analysis on the business you want to put up.
STRENGTH OPPORTUNITIES
WEAKNESSES THREATS
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ACTIVITY 3: “BUSINESS COMPETITION”
Instruction: Look for two (2) businesses that sell similar products (or services). Then compare and analyze their prices,
customer service, kind of customer, community involvement, promotion, quality, public image and financial success.
BUSINESS COMPETITION BUSINESS #1: BUSINESS #2:
PRICES
CUSTOMER SERVICE
KIND OF CUSTOMER
COMMUNITY INVOLVEMENT
PROMOTION
QUALITY
PUBLIC IMAGE
FINANCIAL SUCCESS
• A SWOT analysis is a compilation of your company's strengths, weaknesses, opportunities and threats. The
primary objective of a SWOT analysis is to help organizations develop a full awareness of all the factors involved
in making a business decision.

• SWOT Analysis: What It Is and When to Use It
https://www.businessnewsdaily.com/4245-swot-
analysis.html#:~:text=A%20SWOT%20analysis%20is%20a,in%20making%20a%20business%20decision.
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TIME COVERAGE
PART 1: LESSON
CHAPTER 7: DEVELOPING MARKETING MIX
a) Identify products, services, and experiences;
b) Differentiate Consumer products and Industrial products; and
c) Give an example for each classification of product and services.
• Patronize – is the treat in a way that is apparently kind or helpful but that betrays a feeling of superiority.
• Intangible – means unable to be touched or grasped; not having physical presence.
PART 3: DISCUSSION
In this lesson, the importance of product, service, and experience will be elaborated. The different pricing
schemes will be identified. The various channels of distribution will be determined. Moreover, the essence of promotion
tools in influencing consumers will be defined.
THE PRODUCT
DIFFERENTIATING THE PRODUCT, SERVICE, AND EXPERIENCE
PRODUCT:
• The product is the first variable in the marketing mix.
• It serves as a major element in the entire consumer offerings.
• The product has been defined as all things, may be goods or services, which are being offered to the market for
information, purchase, and/or utilization that would answer and satisfy the needs and wants.
• Products are not just confined with the offerings that consumers can touch like bags, clothes, or shoes. Products
also include services, individuals, ideas, happenings, locations, and institutions or a combination of these.
SERVICE
• According to Kotler and Armstrong, service refers to activities, benefits, or gratifications offered for sale that is
essentially intangible and does not result in the ownership of anything.
• Nowadays, the companies can offer both tangible products and services.
• There are no services attach into the products. In another point, there are companies that offer service only like
tutorial service of a teacher or massage service in a spa. It is a simple service only.
EXPERIENCES
• Experiences of customers with brands should be considered as important value in delivering services.
• Many customers patronize products and services because of the excellent experience with the brand's services.
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✓ For instance, a customer regularly shops at a department store that he or she thinks to provide the most
pleasurable shopping experience, considering that there are many department stores existing in the market
that offers the same array of brands.
• Marketers should realize the importance of customer experiences because many customers Patronize brands
based on the outcome of their experiences using the products or services.
• Many marketing experts believe that the success of the company relies on how well it manages the customer's
experiences.
There are two broad classifications of products and services. The first classification is consumer products and the second
classification is industrial products
TYPES OF CONSUMER PRODUCTS:

Consumer products refer to any products that are purchased by customers for their consumption.
• Convenience products — these are products or services that consumers buy regularly or usually. Products under this
type are bought without a great deal of comparison and exert minimal buying efforts. The price of the convenience
products is usually low and/or affordable. Thus, marketers often put these products in many places where the
customer can easily see and buy them any time they need and want them.
Examples: candies, detergent soap, toothpaste...
• Shopping products — these are products or services that consumers buy infrequently. Customers often make
comparisons regarding its suitability, quality, style, and price to other brands. Customers exert efforts on getting
information on the brands before deciding to buy.
Examples: dress, laptop, cellphones.
• Specialty products — these are products that have unique attributes and brand recognition for which consumers are
ready to exert special effort.
Examples: a limited-edition car that only is only available in a certain country. Thus, for the buyer to purchase the
special type of car, the buyers have to go to the particular I country where the car is being sold.
• Unsought products — these are products or services that consumers are either not aware of the brand existence or
have awareness of the brand however not usually consider buying it.
Examples: funeral services and insurance policies.
INDUSTRIAL PRODUCT CLUSTERS:

Industrial products refer to any products that are purchased by individuals or institutions for the purpose of
implementing the business.
• Materials and parts — these are raw materials or manufactured materials and parts.
Examples: cotton, paper, oil, iron, tires
• Capital Items — these are products that help the companies in operation and production, installation, and
accessory equipment.
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Example, generators, manufacturing plant, lift trucks, computers.
• Supplies and services — these include operating supplies, repair, and maintenance
Examples: coal, paint, computer repair.

ACTIVITY: “2 CLASSIFICATIONS OF PRODUCTS AND SERVICES”
Instruction: Give an example for each classification of products and services:
CONSUMER PRODUCT EXAMPLE

1. Convenience Product
2. Shopping Product
3. Specialty Product
4. Unsought Product
INDUSTRIAL PRODUCT EXAMPLE
1. Materials and Parts
2. Capital Items
3. Supplies and Services

MULTIPLE CHOICE. Instruction: Encircle the letter of the correct answer.
1. All things may be goods or services, which are being offered to the market for information, purchase, and/or
utilization that would answer and satisfy the needs and wants.
a. Product b. Price c. Place d. Promotion
2. Activities, benefits or gratifications offered for sale that is essentially intangible and does not result in the
ownership of anything.
a. Price b. Product c. Service d. Promotion
3. It refers to the name, term, signs, symbols, design, or combinations of these, which serve as identification of the
products, services, or institutions that separate them from their competitors.
a. Labeling b. Branding c. Packaging d. Tagline
4. It serves as the identification or ID card of the brand because it tells many things about the product's name,
origin, symbol, content, dimension, and usage.
a. Branding b. Packaging c. Tagline d. Labeling
5. It pertains to the process of designing and producing container or wrapper for products.
a. Tagline b. Labeling c. Packaging d. Branding
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6. The amount of money charged for a product or service.

a. Price b. Product c. Promotion d. Place
7. A group of interdependent organizations that participate in the process of making products or services available
for the consumption of the buyer or user.
a. Suppliers b. Distribution channel c. Consumer group d. Business men
8. Activities involved in selling goods or services directly to final consumers for their personal, business use.
a. Retailing b. Wholesaling c. Pricing d. Promoting
9. Any paid form of communication on goods, services, ideas, individuals, or institutions through the use of media
with the intent of the advertiser
a. Advertising b. Promoting c. Sales Promotion d. Public Relations
10. A direct communication to prospective and specific consumers using mail, telephone, fax, email, and other non-
personal tools to gain immediate response
a. Personal Selling b. Sales Promotion c. Direct Marketing d. Advertising

• It has been said that the success of marketing campaigns relies on the skills of marketers in selecting the right
marketing mix. The product should answer the needs, wants and expectations of the customers. It should be
priced reasonably and be distributed at the right place. The sum of all of these, the product, price, and distribution
should be properly communicated to the targeted audience.

• 10 Steps to Building the Perfect Marketing Mix for Your Business
https://wearegrow.com/10-steps-to-building-the-perfect-marketing-mix-for-your-business/
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TIME COVERAGE
PART 1: LESSON
a) Enumerate stages in New Product Development;
b) Differentiate Design, Style, Quality and Features; and
c) Identify the Strategies in Establishing Products and Services.
• Lure – is a tempt (a person or animal) to do something or to go somewhere, especially by offering some form of
reward.
• Aesthetics – concerned with beauty or the appreciation of beauty.
• Utilize – to make practical and effective use of.
• Superiority – is the state of being superior.
• Procurement – is the action of obtaining or procuring something.
PART 3: DISCUSSION
Defining the benefits is the first thing that marketers should consider in developing products and services. Through
product attributes, the benefits are being communicated and delivered to the customers. Attributes are seen through
product design and style, quality, and features.
DEVELOPING PRODUCTS AND SERVICES

DESIGN AND STYLE. To add value to the product, companies enhance the design and style of the product. In this way,
brands will be more distinct and look special in the eyes of the buyers.
• Style pertains to the physical appearance of the product.

o Style may catch or drop the attention of the buyer.
o It is very important that marketers study the styling composition of their products to lure the market's
attention.
• Design has a larger concept than style.

o The design is more than attracting the attention of the customer through pleasant aesthetics of the brand.
Some products may seem attractive; however, it is not an assurance of a better performance.
o Designs determine the usefulness of the products that goes with its style.
o Designers of products should not dwell more on the attributes or technical specification of the products.
They should focus on how consumers will utilize and benefit from the product.
QUALITY. This is one of the major considerations of marketers in positioning a product.

• Quality has a direct relationship with product performance.
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• It is considered as determinants of customer value and satisfaction.

• Quality is beyond producing a defect-free product.
• Quality should be able to satisfy the consumer's needs.
FEATURES. To establish product distinction, companies may consider developing product features.
• It will help the company to attain competitive advancement.
• Companies often introduce valued new features to create market superiority.
o EXAMPLE: many brands of instant noodles offer different features like adding vita_ mins, new flavors, and
user-friendly packaging. In this way' companies may establish superior features compared to other
brands.
ESTABLISHING PRODUCTS AND SERVICES

In establishing products and services, marketers must think of the following product Strategies:
a. BRANDING – it refers to the name, term, signs, symbols, design, or combinations of these, which serve as
identification of the products, services, or institutions that separate them from their competitors.
• A good branding can add value to the product. Customers provide value to the brand and establish brand
relationships. Thus, companies should provide clear and remarkable branding to their products and services.
b. PACKAGING — it pertains to the process of designing and producing container or wrapper for products. The
fundamental role of the package is to secure the product's condition. However, in this highly competitive market,
packaging has become an essential tool in marketing.
• Packaging can attract the attention of the customers, help describe the product, and create sales for the
company.
• Needless to say, good packaging promotes strong recognition of the brand. That is why many companies
invest much effort to have good packaging.
• The packaging is one of the most important promotional tools in marketing a brand.
c. LABELING – From simple tags to intricate graphics, label plays a vital role in creating an identity to the brands.
• It serves as the identification or ID card of the brand because it tells many things about the product's
name, origin, symbol, content's dimension, and usage.
• As part of packaging, label and brand logos can help brands to achieve positioning and add personality to
the product.
• Most companies develop and enhance their brand and/or company logo to attain uniqueness, which is
essential to competition.
• Ideally, it should be fresh, pleasant and promising. Important variables of the label are the fonts, color,
and visual art.
d. PRODUCT SUPPORT SERVICE – As part of the customer's overall brand experience, support service is essential in
building healthy relationship with customers.
• Many marketers today believe that marketing does not stop by making sales. It is important to ensure
ultimate customer's experience by maintaining customer's happiness even after the sales.
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DISCOVERING NEW PRODUCT DEVELOPMENT STRATEGY

• Many companies acquire new products through procurement of companies that produce commodities.
EXAMPLE: a leading hamburger fast food corporation bought a company that operates the largest pizza food
chain in the market. All the signature pizza products of the newly acquired company will be treated as new
products of the corporation.
• Companies may also develop new products through enhancement of its original product.
o Companies may improve the old products to keep up with the latest trends in the market.
o Companies can make a modification of products to make it new based on the recommendations of
research and development office of the companies.
• Research and development office play an important role in creating a successful new product.
o Through their researches and studies on consumer insights, marketing environments, and competitive
landscape, the company can modify product features, benefits, and promotions.
o Companies can produce and develop products with superior value to customers.
• Every marketer should have a strong grip on the concept of new product development to successfully give birth and
nourishes the growth of new products. Certain stages have to be considered in doing this.
STAGES IN NEW PRODUCT DEVELOPMENT INCLUDES:

1. Idea Generation Stage
• Great products come from simple ideas that are careful polished by skillful hands of the marketing team.
• Marketers should be resourceful in generating and gathering ideas for new products.
• Potential ideas for new products may come from sources like market research, customers, employees,
consultants, distributors, and suppliers.
2. Idea screening Stage

• All ideas may seem promising. However, marketers should dive into the idea and explore it to find out
if the idea has the potential to bring triumph to the company.
• The process may be rigorous, but it pays to be meticulous as early as this stage.
• Marketers should look at the most feasible and practical ideas to develop. Pursuing non-viable ideas is
a waste of time, efforts, and resources.
3. Concept Development and Testing Stage

• After selecting potential ideas, it will go through the process of conceptualization and testing.
• Concepts may undergo different forms.
i. From product idea, the marketers will transform it into product concept, a more detailed
description of a product idea. Then, the product concept should be visualized as actual and potential
product using the consumer's lenses.
ii. The product concepts will be tested by a group of target customers as participants to see the
feasibility.
iii. Marketers may present the concepts to the target customers using symbols or concrete concept.
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iv. The insights that marketers will get from the participants will be an essential in developing new
products.
4. Marketing Strategy and Development Stage

• In this stage, marketers will develop a marketing strategy based on the tested and treated new product
concept.
• The marketers should identify critical strategic marketing elements like target audience, marketing
objectives, product positioning, pricing, distribution plan, and promotional tools.
5. Business Analysis Stage

• In this stage, the marketers should focus on the review of product sales, cost, and profit. It is not enough
to think of the feasibility of the product.
• Marketers should also consider the financial worth of the new product to the company.
6. Product Development Stage

• In this stage, the prototype of the new product is being designed and produced.
• The produced prototype will face series of testing.
i. It will be presented to selected people representing the target segment of the market to make
sure that the product is ready, and there is no need for further modification.
7. Test Marketing Stage

• The companies will select a specific geographical area to check the product's marketability.
• In this stage, the performance marketing mix strategy will be monitored and evaluated.
i. The result of the observation will be the basis if the product needs adjustments or completely
passes the tests and ready for grand launching in the national market.
8. Commercialization
• In this stage, the new product is assumed to be ready for the national launching.
• Marketers must be conscious on the timing of the launch, the distribution and availability of the product,
and the promotional tools to be used.
STAGES IN NEW PRODUCT DEVELOPMENT
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ACTIVITY: “STYLE AND DESIGN OF THE PRODUCT”
Instruction: If you would be given a chance to create a style and design to a specific product what would it looks like?
Draw the design and style of the product on the given space below. Explain the style and design briefly.

TEST I: IDENTIFICATION. Identify the following. Write your answer on the space provided.
_______1. This is one of the major considerations of marketers in positioning a product.

_______2. It determines the usefulness of the products that goes with its style.
_______3. It will help the company to attain competitive advancement.
_______4. It is considered determinants of customer value and satisfaction.
_______5. It serves as the identification or ID card of the brand because it tells many things about the product's name,
origin, symbol, content' dimension, and usage.
_______6. It refers to the name, term, signs, symbols, design, or combinations of these, which serve as identification
of the products, services, or institutions that separate them from their competitors.
_______7. It pertains to the process of designing and producing container or wrapper for products.
_______8. As part of the customer's overall brand experience, ___________ is essential in building healthy
relationship with customers.
_______9. In this stage, the new product is assumed to be ready for the national launching.
_______10. Great products come from simple ideas that are careful polished by skillful hands of the marketing team.
TEST II: IDENTIFICATION. Identify the stages in new product development. Explain each stage briefly.
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• In marketing, a product is anything that can be offered to a market that might satisfy a want or need. In retail,
products are called merchandise. In manufacturing, products are purchased as raw materials and sold as finished
goods. Commodities are usually raw materials such as metals and agricultural products, but the term can also
refer to anything widely available in the open market. In project management, products are the formal definition
of the project deliverables that form the objectives of the project.

• Definition of 'Product' https://economictimes.indiatimes.com/definition/product
• What Is a Product? https://courses.lumenlearning.com/boundless-marketing/chapter/what-is-a-product/
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TIME COVERAGE
PART 1: LESSON
a) Enumerate the four (4) major stages in Product Life Cycle (PLC);
b) Identify the general pricing approach that includes sets of factors; and
c) Determine Product Life Cycle (PLC).
• Profitable – means beneficial or useful.
• Perceptions – is a way of regarding, understanding, or interpreting something; a mental impression.
PART 3: DISCUSSION
A marketing fact reveals that every product has a life cycle, and not all products h a same life expectancy. Some
brands may live long. Some brands may have a short-lived. Marketing experts should be ready to face any outcome of
their marketing plan. If things turn sour for the brand, the company must be willing to recalibrate its strategies to attain
the marketing goals.
Determining Product Life Cycle (PLC)

• Product life cycle (PLC) is an important concept that should be understood by all marketing practitioners.
• PLC concept provides marketers full description of the stages that the product will go through, from the conception
of the product to the final stage.
There are four (4) major stages in Product life cycle:
1. Introduction Stage — this stage includes research and development, market testing and launching of the product.
2. Growth Stage — this stage is characterized by having sales increase at a fast rate.
3. Maturity Stage — this is the stage when sales are near their peak. However, the rate of growth is gradually going
down. This may be a result of having new competitors in the market.
4. Decline stage — this is the final stage of the cycle. The sales of the brand begin to fall, and the profits of the company
start to drop.
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Marketers often extend the life of the product by strategizing the marketing mix. Marketers may do the following
strategies:
1. Marketing experts may use advertising and other promotional tools to get new market or remind the current
market on the product existence.
2. To attract customers, marketers may reduce the price of the product by offering best deals or special discounts.
3. Companies may develop products by adding new value. Example, offering new use, adding new features, or
improving the specification.
4. Marketers may discover new markets by making the product launch new geographical areas.
5. Redesign packaging that will show the new position of the product or rebrand the product.
THE PRICE: SETTING PRICES FOR PRODUCTS AND SERVICES

• Price is one of the key factors that most of the customers look at in a brand.
• It is considered as a major determinant of consumer buying decision.
• As defined by many marketing experts, the price is the amount of money charged for a product or service.
• Providing consumers with products at right prices is one of the trade secrets of many companies in having
profitable sales.
• Setting prices to products and services is a major decision to all companies.
There are internal and external factors that should be considered in pricing decisions. Marketers must carefully weigh
these factors to arrive at a right decision.
INTERNAL FACTORS:
1. Marketing objectives
2. Marketing Mix Strategy
3. Costs (production cost, operational costs, supply costs)
4. Organization
EXTERNAL FACTORS:
1. Nature of the market and demand
2. Competition
3. Other environmental factors (economy, government, social, cultural)
• For new products, setting a price is critical. It may gain or lose valuable marketing opportunities.
• Cost is a major determinant in setting the price floors.
• The perceived value of the customers is also important in pricing the product.
• On the other hand, competition is always an object in setting prices.
o Competitive positioning of the brand is an important factor in pricing.
o Companies should analyze the competitive value of the product using the lens of the consumers.
o It will enable the company to position the product in the market with maximum precision.
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UTILIZING GENERAL PRICING APPROACHES

• The price a company charges may play between one that is too low to produce a profit and too high to produce any
demand.
• Marketers must realize that the costs of the product set the floor for a price while perceptions of the consumers on
the value of the product set the ceiling.
• To find the right price with these extreme possibilities, the marketers should determine competitor's price and other
external and internal factors.
Companies may set prices through the use of general pricing approach that includes one or more of three sets of factors.
1. COST-BASED PRICING — an approach or strategy in pricing that utilizes production costs as its basis for determining
the price to products. There are two methods to cost-based pricing:
• Cost-plus pricing— this is an approach to pricing in which standard markup is added to the product cost.
• Break-even pricing— this is an approach to pricing in which companies set the price to break-even on the
cost of making and marketing products or to reach the target profit.
2. VALUE-BASED PRICING — many companies set the price of the products based on products perceived value.
• This pricing approach utilizes the perception of the consumers on the value of the product instead of the
seller's cost in determining the price.
• The process of this pricing approach in identifying the price is entirely opposite of how cost-based pricing
approach determines the price of the product as shown in Figure.
3. Competition-based pricing — many consumers based their judgment of the product's value on the prices that the
competitors set for same products.
• This approach to pricing pays less attention to the demand of the product or the cost of the product in
setting the price. The main basis of the company in fixing the price of their product is the competitors'
prices.
• The company may charge more or less than, if not the same, its direct competitors.
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APPLYING NEW PRODUCT PRICING STRATEGIES

• The pricing strategy applied to a product may change depending on the stages that it passes through in the product
life cycle.
• Perhaps the most challenging for a company is to set the price of the product for the very first time.
• Pricing is crucial to a product entering the initial stage.
The companies in this situation may use one of the two broad strategies.
1. Market Skimming Pricing

• This pricing strategy works by setting a high price for the new product to skim maximum revenue from a set
of consumers who are eager to pay the high price.
2. Market Penetration Pricing

• This pricing strategy suggests that to attract a large number of consumers and to have a large number of
market share, the company should set the price low for new products.

ACTIVITY: “FOUR MAJOR STAGES IN PRODUCT LIFE CYCLE”
Instruction: Describe the following stages in PLC (Product Life Cycle):
INTRODUCTION STAGE
GROWTH STAGE
MATURITY STAGE
DECLINE STAGE
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Instruction: Define the following.
1. PRODUCT LIFE CYCLE ________________________________________________________________

____________________________________________________________________________________
2. PRICE _____________________________________________________________________________
____________________________________________________________________________________
3. MARKET SKIMMING PRICING _________________________________________________________

____________________________________________________________________________________
4. COMPETITION-BASED PRICING ________________________________________________________

____________________________________________________________________________________
5. COST-BASED PRICING ________________________________________________________________

____________________________________________________________________________________
6. VALUE-BASED PRICING _______________________________________________________________

____________________________________________________________________________________
7. Market Penetration Pricing ___________________________________________________________

____________________________________________________________________________________
8. – 20 COMPLETE THE GRAPH BELOW

• The life cycle of a product is associated with marketing and management decisions within businesses, and all
products go through five primary stages: development, introduction, growth, maturity, and decline. Each stage
has its costs, opportunities, and risks, and individual products differ in how long they remain at any of the life cycle
stages.

• Exploit the Product Life Cycle https://hbr.org/1965/11/exploit-the-product-life-cycle
• What is a Product Life Cycle? https://articles.bplans.com/what-is-a-product-life-cycle/
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TIME COVERAGE
PART 1: LESSON
a) Identify the Product-Mix pricing strategies;
b) Enumerate the functions of distribution channel; and
c) Create and develop a marketing mix plan.
• Profitable – means beneficial or useful.
• Distribution channels – is a chain of businesses or intermediaries through which a good or service passes until it
reaches the final buyer or the end consumer.
• Middlemen – is an intermediary or agent between two parties especially: a dealer, agent, or company
intermediate between the producer of goods and the retailer or consumer.
PART 3: DISCUSSION
When the product is part of the product mix, the pricing strategy of the product should be changed often. In this
situation, the company seeks for a set of prices that maximize the profits on the whole product mix. The pricing is difficult
and complicated because different products have demands and costs plus, the pressure of the degrees of competition.
IDENTIFYING PRODUCT-MIX PRICING STRATEGIES

FIVE (5) PRODUCTS MIX PRICING CASES.
• PRODUCT LINE PRICING — many companies develop product lines instead of single products.
o In this strategy, the company should decide on the price steps to set between the products in a line.
o The price step should be considered the cost differences between the products in the line, customer
evaluations of their different features, and the price of the competitors.
• OPTIONAL-PRODUCT PRICING — this strategy works by offering to sell optional or accessory product along with
the main product.
• CAPTIVE-PRODUCT PRICING —this strategy works by setting a price for products that should be used along with
the main product.
o Example: the razor is the main product, and the razor blade is the captive product. Companies price the
main product low because they make money on the captive price.
• BY-PRODUCT PRICING — this strategy works by setting a price for by-products to make the main product's price
more competitive.
77 | P a g e
o Example: a clothing company may decide to sell their fabric scrap or “retaso” to rag makers. The earning
in the sale of fabric scrap can be profitable and can cover the high cost of fabrics used for producing the
main product. This will allow the company to sell the main product in lower price.
• PRODUCT BUNDLE PRICING — the companies using this pricing strategy often combine several products of their
products and sell the bundle at a reduced price.
THE PLACE: EXPLORING DISTRIBUTION CHANNEL

• Marketing experts agree that one key determinant of a good marketing of products and services are making them
accessible and available at the right place. Thus, paying too little attention to distribution channels in marketing
is not wise.
• Distribution channel or marketing channel is a group of interdependent organizations that participate in the
process of making products or services available for the consumption of the buyer or user.
• Equally important as the other elements of marketing mix, a distribution channel helps the company to make its
products or services accessible and available to the consumers.
APPRECIATING THE FUNCTIONS OF DISTRIBUTION CHANNEL

Each member of marketing channel has an important function in the process. However, generally, members perform the
following key functions:
• PROVIDES INFORMATION. Middlemen provide information on the market to the manufacturer.

o Since the middlemen are present in the market, they are a good source if information such as the changes
in the demographics, psychographics, media habits, preferences of Customers and the trends in the
competition.
• MAINTAIN PRICE STABILITY. Middlemen maintain price stability in the market.

o Sometimes middlemen maintain the old price of the product even though the manufacturer has increased
the price of the product. This is due to the stiff competition among middlemen. To do this, the middlemen
keep the overhead cost low.
• BOOSTS PROMOTION. Middlemen design promotion for products they carry in their territory.
o They create sales promotional activities to build and keep healthy relationship with their customers.
• FINANCES MANUFACTURERS' OPERATION. Middlemen fund the operation of the manufacturer through advance
payment for goods and services that can be used as working capital.
• MATCHES BUYERS AND SELLERS. Middlemen match the needs of buyers and sellers.
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o Some sellers have no idea where to reach potential buyer of their product and same with the buyers; they
do not know where to reach potential seller of the products they need.

ACTIVITY: “DEVELOPING A MARKETING MIX PLAN”
1. Pair Up and develop a marketing mix plan for organic tomato ketchup.
2. Product print advertisements promoting the organic tomato ketchup.
INSTRUCTION 3. Create a sale promotion gimmick for the launching of the organic tomato ketchup.
4. Create a sale promotion gimmick for the launching of the organic tomato ketchup.
5. Put it on the other piece of paper (short bond paper).
PRODUCT
1. Design and style
2. Features
3. Branding
4. Packaging
5. Labeling
6. Product support service
PRICE
1. Pricing objectives
2. Pricing strategy
PRICE
1. Distribution
2. Distribution channel
3. channel levels

Instruction: Identify the following. Write the answer on the given space provided.
_______1. This strategy works by offering to sell optional or accessory product along with the main product.
_______2. In this strategy, the company should decide on the price steps to set between the products in a line.
_______3. The companies using this pricing strategy often combine several products of their products and sell the
bundle at a reduced price.
_______4. This strategy works by setting a price for products that should be used along with the main product.
_______5. This strategy works by setting a price for by-products to make the main product's price more competitive.
79 | P a g e
_______6. Marketing experts agree that one key determinant of a good marketing of products and services are
making them _________ and _________ at the right place.
_______7. Middlemen fund the operation of the manufacturer through advance payment for goods and services that
can be used as working capital.
_______8. Middlemen provide information on the market to the manufacturer.
_______9. Middlemen maintain price stability in the market.
_______10. Middlemen match the needs of buyers and sellers

• Most products are part of a broader product mix. Consequently, they must be priced accordingly. Product Mix
Pricing Strategies address this issue. Selling more is always a challenge, especially in the competitive retail
landscape. As a result, it can be helpful to take advantage of a diverse range of distribution channels. Why?
Because channel expansion creates opportunities to reach new customers, build brand recognition and increase
profits.

• PRODUCT MIX PRICING STRATEGIES – PRICING THE PRODUCT MIX
https://marketing-insider.eu/product-mix-pricing-strategies/
• HOW TO PRICE YOUR PRODUCT: 5 COMMON STRATEGIES
https://www.bdc.ca/en/articles-tools/marketing-sales-export/marketing/pages/pricing-5-common-
strategies.aspx
• THE BENEFITS OF EXPLORING NEW DISTRIBUTION CHANNELS
https://dotcomdist.com/the-benefits-of-exploring-new-distribution-channels/
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TIME COVERAGE
PART 1: LESSON
CHAPTER 8: SETTING UP, LAUNCHING, and OPERATING AN ENTERPRISE
a) Identify the top three fund sources of when settings-up a business;
b) Enumerate the issues, concerns, and related matters in fund sources when setting-up a business; and
c) Create their own reflection about starting a business.
• Scaling – means to grow or expand in a proportional and usually profitable way.
• Venture – is a business enterprise involving considerable risk.
PART 3: DISCUSSION
This hands-on learning experience integrates the entrepreneurship core courses previously taken up by the
students. The teacher becomes a guide and a mentor in this phase of the entrepreneurship students’ life, which requires
students to legitimately register, launch, operate their own start-up business venture, produce and market through the
semesters with a choice to either continue with the aim of scaling it further after their course or liquidate or close it before
graduation.
TOP THREE FUND SOURCES OF WHEN SETTING-UP A BUSINESS

• Students can source more funds from the following:
• Personal savings and parents' cash support contributions from team members, and
• contributions from relatives and friends.
When sourced from personal savings or from parents 'support Positive points:
1. Students find ready and easy access to funds if these are available.
2. Students learn to bootstrap and maximize the use of limited resources.
3. If the project is personal, gains (if any) are enjoyed singly.
4. Parents and family members become engaged and help the student.
5. Parents may serve as mentors. But this should be cleared with the teacher and
should be done in the context of the prescribed roles and functions of mentors
(not as parents).
ISSUES, CONCERNS, AND RELATED MATTERS:

1. Resources are generally limited; these limits and scales down the development process.
2. Students bear all the risks and burdens of funding the enterprise.
3. Parents are burdened, especially if their "investment" is not returned by the students.
4. Parents become over-eager and overdo their roles, especially since they are funding the venture.
5. Start-up costs are treated as part of learning and experience and might be used solely for product research,
product testing, and other development activities, with less money left for actual setting up of the business.
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When sourced from -team members Positive points:

1. Students can pool their resources.
2. Students learn to distribute equity exposure, giving the project bigger resources to scale up development,
operations, or production.
3. Students learn to be responsible and accountable for the funding of the project.
4. Students learn to handle difficulties, situations, and issues by themselves.

1. Overly protective parents who source the student's monetary contribution start to think
they have a right to be involved in the venture and start dictating their demands.
2. Students fail to discuss the dynamics of shared contributions and the extent of parental
involvement, especially when the students are still minors.
3. Problems also arise when members do not contribute as expected or as agreed upon.
4. Students resolve this by preparing a certificate of contributions and a document that
states their roles, functions, responsibilities, and accountabilities.
5. Parents become over-eager and overdo their roles, especially since they are funding the
venture.
6. Start-up costs are treated as part of learning and experience and might be used solely
for product research, product testing, and other development activities, with less
money left for actual setting up of the business.
When sourced from relatives and friends
POSITIVE POINTS:
1. Some relatives provide funds as a gift, without obligation to return. That eases the burden and fear of the students
in going into "unknown" territory like setting up their own business.
2. Some relatives give an angel investment or become a silent co-investor; this can be treated as an informal loan
with an obligation to return after a specific time of use is over.
3. Students learn to become conscious in meeting obligations.

1. Students may not be able to return the investment as promised.
2. Students may have a difficult time returning the favor.
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ACTIVITY: “STARTING A BUSINESS STEP 1”
Instruction: Answer the following questions. Write your answer on the space provided below.
1. Let the students discuss how much they would need to start their business.
2. Let the students discuss how they plan to source the funds they will need to set up their
project.
3. Let the students discuss the pros and cons of borrowing from different sources or asking for money from
parents, relatives and friends, or digging into their own pockets to subsidize their setting-up costs.
4. Let the student report on their findings.
83 | P a g e

Instruction: Enumerate the following. Write your answer on the space provided below.
A. When sourced from personal savings or from parents 'support Positive points:
1. ________________________________________________________________________________________
2. ________________________________________________________________________________________
3. ________________________________________________________________________________________

1. ________________________________________________________________________________________
2. ________________________________________________________________________________________
3. ________________________________________________________________________________________
B. When sourced from -team members Positive points:

1. ________________________________________________________________________________________
2. ________________________________________________________________________________________
3. ________________________________________________________________________________________

1. ________________________________________________________________________________________
2. ________________________________________________________________________________________
3. ________________________________________________________________________________________
C. When sourced from relatives and friends:

1. ________________________________________________________________________________________
2. ________________________________________________________________________________________
3. ________________________________________________________________________________________

1. ________________________________________________________________________________________
2. ________________________________________________________________________________________
3. ________________________________________________________________________________________

• Personal savings or parent support, team members and relatives and friends are top three fund sources of when
setting-up a business. During the life of most any business, the owner will need to seek out cash to help with its
growth or to keep it going through a rough patch. So, planning how to fund a business is hardly a trivial or brief
topic.

• The 5 Most Common Funding Sources https://www.growthink.com/content/5-most-common-funding-sources
• 10 Ways to Fund Your Small Business https://www.entrepreneur.com/article/270556
84 | P a g e
TIME COVERAGE
PART 1: LESSON
CHAPTER 8: SETTING UP, LAUNCHING, and OPERATING AN ENTERPRISE
a) Understand the importance of registering a business;
b) Familiarized the registration process and recognize the various dynamics of securing and complying
with the legal requirements in real time from various government agencies; and
c) Enumerate the issues, concerns and related matter in applying business permits and licenses.
• Sole Proprietors – it refers to a person who owns the business and is personally responsible for its debts.
• Partnerships – is an arrangement between two or more people to oversee business operations and share its
profits and liabilities
• Corporations – is a company or group of people authorized to act as a single entity (legally a person) and
recognized as such in law.
PART 3: DISCUSSION
BUSINESS REGISTRATION, PERMITS, AND LICENSES

• Businesses in our country must be registered with the proper authorities.
• Here is the process, as disclosed by the Philippine Business Registry (PBR) on the Internet:
SOURCE: http://www.dti.gov.ph/dti/index.php?p=459
• The PBR is a government-initiated project that integrates the services of all agencies involved in business
registration:
o DTI
o Security and Exchange Commission (SEC)
o Bureau of Internal Revenue (BIR)
o Social Security System (SSS)
o Pag-IBIG Fund
o PhilHealth
o Local Government Units (LGU’s)
o Other permit/license-issuing agencies to facilitate business registration
It allows applicants to get any one or any combination or all of the following business registration at a single location
within 30 minutes:
AGENCY INFORMATION/ DATA
DTI Business Name and Certificate Number
BIR Tax Identification Number
SSS Employer’s registration Number
PhilHealth Employer’s registration Number
Pag-IBIG Employer’s ID Number
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*Not applicable if registering through the SEC. The Company Name and the BIR TIN shall be provided to the partnership
or corporation upon registration with the SEC.
• PBR is a teller-assisted service.

o For a sole proprietorship, applicants can go to a nearest DTI Office and look for the PBR tellers to avail of
such service.
o For SEC-registered companies, authorized representatives who already got a copy of their company's
SEC Registration Certificate can proceed to the PBR Kiosk at the SEC Head Office, Mandaluyong City.
HOW TO APPLY BUSINESS PERMITS AND LICENSES

SOLE PROPRIETORS
Walk-in application at the DTI Office
1. The applicant fills out the PBR application form and submits to DTI teller for encoding.
2. Applicant's Taxpayer Identification Number (TIN) is required to proceed since PBR number (PBN) is based on the
TIN. If there's an existing TIN, PBR will validate against records. If there's no TIN yet, PBR will generate one for the
client.
3. The applicant pays for the BN registration at the Cashier and presents the receipt to the teller.
4. The teller submits an application to SSS, Philhealth, and Pag-IBIG, then prints and hands over Business Name
Certificate, a copy of BN Application form, and Official receipt.
5. The teller provides the employer's registration numbers (ERNs) from SSS, Philhealth, and Pag-IBIG through a filled-
out application form. An e-mail notification indicating the ERNS issued by these agencies can also be retrieved by
an applicant in his/ her email account.
6. The applicant may proceed to the said agencies to get certificate or employer's ID. Just present the PBR-generated
ERNs.
*PBR applications for sole proprietorship may be done through DTI offices nationwide.
PARTNERSHIPS OR CORPORATIONS
Walk-in application at PBR Kiosk at the Securities and Exchange Commission (SEC) Main Office
1. Fill out PBR application form and submit it to the teller, including a photocopy of complete SEC registration
documents (SEC registration documents, Articles of Partnership/ Corporation) and original copies of documents
(for verification purposes only).
2. Teller submits an application to SSS, Philhealth, and Pag-IBIG and provides the employer's registration numbers
(ERNs) from the said agencies.
3. The applicant may proceed to the said agencies to get certificate or employer's ID. Just present the PBR-generated
ERNs.
86 | P a g e
*Note: Initially, only companies registered through the SEC Head Office shall be accepted since these companies already
have pre-generated TINS.
ISSUES, CONCERNS, AND RELATED MATTER:
1. There are mixed dynamics in securing and complying with the legal requirements. Some government agencies are
"student friendlier" than others.
2. Some government agencies opine that student registrations of start-ups are clogging their system and therefore,
these students should not be required by schools to register their ventures in real time and in government offices.
3. The problem is when the students start to test-sell their products. They are then required to issue official receipts on
their transactions for tax purposes and for a proper recording system.
4. Generally, students opt to register their venture as single proprietorship because of the steep financial and
reportorial requirements of other forms of business legal structure. This generally puts the burden to the student
registering the business under one name, usually the leader's name. This puts a burden on the one whose name
appears in the single proprietorship papers. To solve this, a separate document is usually prepared by team members
to define the roles, responsibilities, and accountabilities of each one. In addition, members prepare and sign an "Oath
of Commitment" to ensure everyone's active participation in the business venture.
5. There is generally a sense of fear when it comes to taxation requirements. Students should be assured that they
should not be overly anxious on the reportorial compliance and tax dues. The income tax levels are classified in terms
of "threshold" (or grading of overall sales and income) that defines tax liabilities or payment dues; most of the student
ventures fall within the tax-exempt level or shall only pay the minimum tax and levies.
6. Some government agencies suggest that students go through a dummy practice of registration and other procedural
requirements until the business can be scaled and can be ready enough to operate as an actual enterprise.
7. Meanwhile, professors teaching the subject have reiterated that it is good for the students to register their
practicum ventures so they can claim legitimacy and follow proper licensing requirements. This will secure and
protect both the business owners (the students) and their customers or clients.
8. Schools or CHED may look into forging some arrangements for some exemptions or reduced fees to support student
start-ups. Some savings from these is already much help for students as they can channel their meager resources to
product development and operations instead. Some students have learned to seek help from local government units
and were charged the minimum or bare fees for their student business ventures.
9. In many instances, RA 9178, the Barangay Micro Business Enterprises Law Act or BMBE Law, does not work for
student ventures. Students complain that the local government units at the barangay level are not aware of that
law. In addition, some students could not comply with the many requirements of the BMBE law.
87 | P a g e
Launch and Operate Own Business either Individually or by Team

Students learn about the successful launching of the following:
1. Stand-alone business.
2. School initiated venue or school incubation set-ups as venues for business operation.
3. Defined business model: manufacturing, processing/operations, retail merchandising and selling, service, b2b,
supplier chain, or subcontracting work.
The teacher guides the students so that they can:
1. Choose the most appropriate business model for the project the students want to set up.
2. Discuss the importance of the relationships and interconnectedness of the following management functions:
organization, marketing, production, and finance.
3. Value the presence of organizational policies and rules for order, time management, good discipline practices,
teamwork, including security and safety on situations and concerns at hand and related matters.
4. Find the right location for the business operation or for selling the products.
5. Prepare the budget and cash flow for the first 2 to 3 months of operation.
6. Use the dynamics of push forces or the active marketing of products together with the use of technology.
7. Learn industry practice by starting on the supplier chain side.
8. Acquire entrepreneurial behavior, deepen entrepreneurial values, hone business skills, and build on
entrepreneurial competencies as students learn through their practical experience of being in business.
9. Increase individual awareness on the following components of entrepreneurship: social responsibility, ethics in
business, good practices, and the sustainability of the environment affecting the whole human chain in relation
to operating and doing business.
10. Value and benefit from networking, joining associations or organizations to increase visibility and connections
with peoples and institutions or joining business competitions.
11. Create a deeper understanding of decision-making in relation to one's flexibility to seize the moment of
opportunity or take action on challenges and situations at hand as well as the importance of having the foresight
and showing an appreciation of intricacies of being in business.
1. Students learn the distinct nature of retail mall selling and business operations.
88 | P a g e
2. Students learn the process of undergoing mall screening, business presentations and complying with mall
operational requirements.
3. Students get to see the relationship of sales projection with production and scheduling, inventory management,
cash flow working capital requirements, labor or manpower and the machine requirements, marketing, and
promotions and other related operational concerns.
4. Students learn the dynamics of merchandising and visual displays, experiential shopping, and many others that
are largely dependent on foot traffic, shopping and buying behavior of consumer at a given point in time and day
as well as season.
5. Students learn the advantages and benefits of having a policy on good customer relations; information services
or after sales service.
6. Students continue to grow using modern technology applications for effective sales activation through viral
marketing using mobile phones, Facebook, Twitter and the like.
7. Students get to appreciate the value of organizing and the creative production of marketing events from consumer
awareness to engagement and lastly to consumer affinity to one's business and product.
8. Students recognize the connection of production schedules to budgeting and costing; defining strategies for peak
and low period; sales forecasting and inventory management; product handling and preservation; quality
standards; application of management tools like for example the principles of "just-in-time"; FIFO (First in, first
out) especially in the food business etc.
9. Students recognize the value of hard-earned money; proper use and allocation of resources.
10. Students get to understand the need for transparency and systematic recording of all transactions at a specific
time; separating business account and personal account as a good business practice; as well as the importance of
maintaining financial statements.
11. Students see the importance of fairness, integrity and ethical business practices.
• Enterprise Set-up
• Enterprise Launch
• Beginning Operations
• Decisions for the Future of the Enterprise
• The Enterprise and Its Place in the Grand Scheme of Things
89 | P a g e

ACTIVITY: “STARTING A BUSINESS STEP 2”
Instruction: Follow the policies of the school and your teacher. Answer the following.
Interview someone who has an experience in registering a business. Ask the registration process
that they undergo. Write your answer in the space provided below.
After the activity, report what you have learned in the process and to document the learning points
for future use.
90 | P a g e

Instruction: Answer the following question briefly.
1. Why it is important to register a business?

_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
(Follow up question) What will be the effect of it in the business?

_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
2. Give three (3) issues and concerns in registering a business permit and license. What are some possible way to
solve this problem?
a. Issues and concern: _________________________________________________________________________

___________________________________________________________________________________________
Possible Solution: ____________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
b. Issues and concern: _________________________________________________________________________

___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
c. Issues and concern: _________________________________________________________________________

___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________

• Doing business in the Philippines, either as single proprietorship, partnership or corporation, calls for licenses or
permits from government. An investor or businessman needs to obtain a business license in the locality where he
will establish his business, as well as register his business with the Department of Trade and Industry in case of
sole proprietorship, or with the Securities and Exchange Commission in the case of partnerships and corporations.

• Steps to get Business Permit in DTI (Part 2):
https://www.youtube.com/watch?v=sdmF9U86PKo
• SECURING BUSINESS PERMITS AND BUSINESS REGISTRATION
91 | P a g e
http://invest.cfo.gov.ph/pdf/part2/securing-business-permits-and-business-registration.pdf
• Department of Trade and Industry Philippines (DTI)
http://www.dti.gov.ph/dti/index.php?p=459
• Starting a Business in the Philippines (World Bank and IFC)
http://www.doingbusiness.org/data/exploreeconomies/philippines/starting-a-business
• Philippine Business Registration Information
http://www.alpellas.corüphilip,pines-business-registration.html
• Business Registration in the Philippines Made Easier
http://business.inquirer.net/50595/business-registration-in-philippines-nou.Ltnade-easier
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Entrepreneurship - Self-Learning Kit

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ENTREP

▪ Entrepreneurship flourishes in communities in which success of other community members is

The businessdictionary.com defines an Entrepreneur:

PART 4: ACTIVITY/ APPLICATION

CREATE BUSINESS CHALENGES SUCCESSS REWARD DESTINY WORK LIFE

PART 5: QUIZZES/ EVALUATION

_________1. He viewed Entrepreneurship as a force of “Creative Destruction” or making “new combination”

PART 6: CONCLUSION/ SUMMARY

PART 7: REFERENCE LINK

PART 4: ACTIVTY/ APPLICATION

PART 5: QUIZ/ EVALUATION

TEST II: IDENTIFICATION. Identify the characteristics of an entrepreneur in each item.

PART 6: CONCLUSION/ SUMMARY

PART 7: REFERENCE LINK

How Entrepreneurial are YOU?

1. Opportunity Seeking and Initiative

• Pitches in workers or in their place to get a job done.

PART 4: ACTIVTY/ APPLICATION

MIND SET SCORE SKILL SET SCORE

Willingness to seek advice and help Ability to multi-task

1. What are your strongest skills/qualities?

2. Describe how these will be of benefit to you as an entrepreneur.

PART 5: QUIZZES/ EVALUATION

PERSONAL ENTREPRENEURIAL COMPETENCIES SELF-RATING RATE

14 I keep the promises I make.

SCORING SHEET FOR PEC SELF-RATING QUESTIONAIRE

“MY PERSONAL ENTREPRENEURIAL COMPETENCIES”

PART 6: CONCLUSION/ SUMMARY

PART 7: REFERENCE LINK

THE THEORY OF ECONOMIC DEVELOPMENT

THE LAISSEZ-FAIRE THEORY

In 1934 Joseph Schumpeter, an economist, explained that

PART 4: ACTIVTY/ APPLICATION

PART 5: QUIZZES/ EVALUATION

1. Differentiate Mercantilism and Laissez-Faire.

2. What is the view of Joseph Schumpeter about Entrepreneur?

MERCANTILISM JOSEPH SCHUMPETER KARL MARX LAISSEZ-FAIRE SOCIALISM

_______1. The first major economic theory known in the world.

PART 6: CONCLUSION/ SUMMARY

PART 7: REFERENCE LINK

GLOBALIZATION AND ENTREPRENEURSHIP

GLOBALIZATION is characterized by free circulation of capital

FOLLOWING ARE THE REASON FOR THE FAST DEVELOPMENT OF GLOBALIZATION:

Entrepreneurship helps provide the following:

PART 4: ACTIVITY/ APPLICATION

PART 5: QUIZZES/ EVALUATION

PART 6: CONCLUSION/ SUMMARY

PART 7: REFERENCE LINK

THE WORLD BANK

THE BANK HAS TWO TYPES OF LENDING INSTRUMENTS:

PROJECTS ARE CATEGORIZED ACCORDING TO THE FOLLOWING:

PART 4: ACTIVITY/ APPLICATION

PART 5: QUIZZES/ EVALUATION

TEST II. ESSAY. Explain the following briefly:

1. THE WORLD BANK

PART 6: CONCLUSION/ SUMMARY

PART 7: REFERENCE LINK

DTI 2008-2010 Road Map

TOTAL TRADE OPPORTUNITIES (TOR) OF THE PHILIPPINES

BUSINESS OPPORTUNITIES AND PROSPECTS (2006)

ENTREPRENEURIAL ACTIVITIES IN THE PHILIPPINES AS

Barriers to Entrepreneurship Development

2. Inadequate infrustrature facilities. 5. Resistance to technological advancement

PART 4: ACTIVITY/ APPLICATION