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ENTREPRENEURSHIP
Module 5
ENTREPRENEURIAL APPLICATION BY
OPENING A SMALL BUSINESS

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ENTREPRENEURSHIP – Grade 11

Module 5: Entrepreneurial Application by Opening a Small

Business

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nor claim ownership over them.

Regional Director: Gilbert T. Sadsad

Assistant Regional Director: Jessie L. Amin

Development Team of the Module

Writer: Marijo S. Balin

Editor: Cynthia C. Competente

Reviewers: Edwin L. Mias

Christie L. Alvarez

Illustrator/ Layout Artist: Jaypee M. Ignacio

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I. Title of Material/Introduction

ENTREPRENEURIAL APPLICATION BY OPENING A SMALL

BUSINESS

This module will give you the different activities that must be performed in
opening a small business.

II. Objectives

At the end of this lesson, the learner should be able to

1. Implement the business plan,

2. Operate the business, and
3. Sell the product/service to potential customers.

III. Vocabulary List

Business Contract – a written/ verbal agreement between two parties in a

business.

Business Permit – regulates safety, structure and appearance of the

business community.

Business Transaction – is an activity or event that can be measured in

terms of money and which affects the financial position or operations of the
business entity.

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IV. Pre-Test

Multiple Choice. Write the letter of your answer.

1. Which of the following below should be prepared prior to the
opening of a small business ?
a. Municipal or City Permit c. Business Contract
b. Store d. All of the above

2. All of the following are duties of the student/ owner of the business
EXCEPT one.
a. Negotiate the location of the business.
b. Purchase the necessary materials, equipment, and fixtures
required in the operation of the business.
c. Record the opening entry and other business transactions in
the journal.
d. Conduct a regular inspection of the small business.

3. The student - entrepreneurs can eventually proceed to selling once

they already have the finances. Do you agree with this?
a. Yes, because they have all the rights to decide.
b. No, they have to prepare first the requirements in opening
the business.
c. It depends on them.
d. No, it depends on the teacher.

4. Why there is a need to call for a parent’s meeting before the

opening of business among students?
a. To minimize doubts and uncertainties of the parties about the
amount of capital requirements of the proposed business.
b. To define the responsibilities of the parties in relation to
business venture.
c. There is no need to inform the parents since students are
already adult-learners.
d. Both a & b

5. What is the purpose of going to BIR ?

a. Business tax purposes c. Sanitation purposes
b. Business permit purposes d. No purpose at all

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V. Learning Activities

1. Perform Preliminary Activity.

2. Perform Activity 1 - Completion of the Initial Business Requirements
3. Perform Activity 2 - Preparation of the Physical Structure of the Business
4. Perform Activity 3 - Handling of Daily Business Transactions
5. Perform Activity 4 - Submission of Final Requirements
6. Perform optional activities (if needed).

Preliminary Activity

Submit the business plan to the teacher for checking. Be guided with the scoring rubric
below.

SCORING RUBRIC FOR BUSINESS PLAN

Grading Excellent Good Fair Inadequate

Criteria 4 points 3 points 2 points 1 point

Executive Summary Summary was Summary was Summary

Summary generated brief, provided brief, provided was brief
excitement, an overview of an overview of and
was brief, the business, the business, provided
provided an and outlined and outlined only an
overview of the main points. some main overview of
business, and points. the business
outlined main OR an
points. outline of
main points.
Product or Description of Description of Description of Description
Service Plan the product or the product or product or of product or
service and its service and its service and service was
unique features unique features features were provided,
was highly was effective provided, but but unique
effective and and detailed. without features
detailed. sufficient were not.
detail.
Management Member(s) of Member(s) of Member(s) of Members of
Team Plan management management management managemen

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 team were team were team were t team were
identified, and identified, and identified, and identified,
their their some their but their
qualifications qualifications qualifications qualification
and and and s and
experiences experiences experiences experiences
described in a described. listed, but not were not
way that led described. included.
credibility to
the business.
Industry and Analysis Analysis Analysis Analysis
Market identified and identified and identified failed to
Analysis described described target provide at
target target consumer and least one
consumer and consumer and competitors. aspect of
competitors, as competitors. Characteristics required
well as industry Characteristics of a desirable information.
and/or product of a desirable business
outlook. business location were
Characteristics location were also identified.
of a desirable also identified.
business
location were
also identified.
Operational Section Section Section Section
Plan contained contained contained contained
detailed information information information
information regarding at regarding at regarding
regarding all least four least three less than
requested aspects of aspects of three
information. requested requested aspects of
information, information, requested
with some with some information,
degree of degree of with little or
detail. detail. no detail.
Organizationa Legal Legal Legal Section
l Plan description description description failed to
corresponded corresponded presented identify at
with lesson on with lesson on didn’t least one
entrepreneursh entrepreneursh correspond aspect of
ip. ip. with lesson on required
Philosophies Philosophies entrepreneurs information.
and policies and policies hip and/or

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 were well were well philosophies
thought out thought out and policies
and described and presented. were
in detail. presented but
lacked thought
or detail.
Marketing Desired Desired image Some Advertiseme
Plan company was described. advertisement nt methods
and/or product Some methods were provided
image was advertisement described and weren’t
described. methods were appropriate for described
Advertisement described and product. and/or were
methods were appropriate for Desired image inappropriat
described and product. was not e for
appropriate for discussed. product.
product. Image
wasn’t
discussed.
Financial Plan Possible Possible Possible Section
financing financing financing failed to
sources were sources were sources were identify at
identified and identified and identified and least one
business business business aspect of
financial financial financial required
outlook was outlook was outlook was information.
described in described. mentioned.
detail.
Growth Plan Business plan Business plan Expansion Business
outlined outlined plans were plan didn’t
practical, yet practical plans outlined, but adequately
ambitious, for expansion. not very describe
plans for practical or plans for
expansion. well thought expansion.
out.
Detail Plan was Plan was Business plan Business
presented in generally was presented plan was
great detail and presented in in some detail somewhat
it was great detail and with some lacking in
consistently appeared to thought behind detail and
obvious there have great it. seemed to
was great thought behind lack much
thought behind it. thought
it. behind it.

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 Professionalis Plan was Plan was Plan was Plan wasn’t
m presented in presented in presented in presented in
paragraph paragraph sentence sentence
format and had format and had format and format
no spelling or few spelling or had few and/or had
grammatical grammatical spelling or many
errors. errors. grammatical spelling or
errors. grammatical
errors.
Effectiveness Plan was Plan was Plan described Plan lacked
highly effective effective in the business overall
in describing describing the and its effectivenes
the business business and operations, but s, as it failed
and its its operations, didn’t garner to describe
operations, as as well as much support. business or
well as eliciting garnering garner
support. some support. support.

Activity 1 Completion of the Initial Business Requirements

With the same group on the previous lessons, perform the following tasks:

1. Prepare all the documentary requirements in opening the business and

submit the same to the teacher for checking.

CHECKLIST for Activity 1

Completion of the Initial Business Requirements

Direction. Put a check(/) to the appropriate box. Take note of the optional.

Requirements Accomplished
Yes No
1. Approved business plan

2. Letter of the students to the school

administrator, properly noted by the
instructor/teacher, seeking approval for the
opening of a small business within the campus

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 3. School campus permit from the Office of the
Director of Student Affairs for the opening of a
small business outside the campus (optional)

4. Parent’s consent and agreement defining the

duration of the project and responsibilities of
the teacher and the school, among others

5. Approved business trade name from the

Department of Trade and Industry (DTI)
(optional)

6. Permit or Inspection report from the

government regulatory agencies (optional)

7. Approved and properly stamped journals and

ledgers by the Bureau of Internal Revenue
(BIR) (optional)

8. Municipal or city permit (optional)

2. Process all the mandatory documentary requirements to facilitate the

issuance of the business permit.
3. Narrate to the class or write on a clean bond paper their experiences in
processing the business requirements.

Activity 2 Preparation of the Physical Structure of the Business

With the same group on the previous lessons, do the following tasks:

1. Negotiate the location of the business.

2. Finalize the contract when necessary.
3. Purchase the necessary materials, equipment, and fixtures required in the
operation of the business.
4. Record the opening entry and other business transactions in the journal.
5. Narrate to the class or write on a clean bond paper their experiences in this
activity.

Activity 3 Handling of Daily Business Transactions

Perform the following tasks:

1. Open the business once the instructor gives the final go signal.
2. Coordinate closely with instructor.

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 3. Record the daily transactions of the business in the journal.
4. Evaluate the trend of the sales.
5. Record the comments and suggestions of the customers.
6. Record own observations about competing products.
7. Post in the ledger all the entries recorded in the journal.
8. Prepare the trial balance, income statement, and balance sheet.
9. Narrate to the whole class or write on a clean sheet of paper their routine
activities and learning experiences.

Activity 4 Submission of Final Requirements

With the same group on the previous lessons, accomplish the following tasks:

1. Make a final financial evaluation of their entrepreneurial ventures by

performing simple financial statement analysis.
2. Evaluate their business plans against what happened during the actual
business operations.
3. Inform their parents or guardians in writing about the status of their
entrepreneurial ventures and submit the letter to the teacher duly signed by
their parents or guardians.
4. If the business has been registered with the DTI, BIR, and municipal or city
government, inform the offices once the business is discontinued.
5. Submit to the teacher all the requirements of the entrepreneurship subject.

OPTIONAL ACTIVITIES

A. If the opening of a small business by group is not possible due to lack of time and
financial matters, a culminating activity can be done inside the campus. A bazaar
showcasing different products and services can be opened. It can be a one or two-day
expo bazaar only.

Narrative report with documentation and financial report should be

requirements for the final output.

B. In case the students decided to have Online Selling, the teacher may allow them
also. Narrative report with documentation and financial report should be requirements
for the final output.

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VI. Practice Tasks

The learning activities done may serve as the practice tasks.

VII. Post Test

Evaluation of the business documents submitted and performance during the

implementation of the business.

VIII. Assignments

The teacher can give follow-up monitoring of the business and feedbacking of
the learning activities done.

IX. ANSWER KEY

Pre-test
1. D 2. D 3. B 4. D 5. A

No answer key for the rest of the activities since this is more on
performance tasks.

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References:

Aduana, Nick L (2017).Entrepreneurship in Philippine Setting for Senior High School,

Quezon City, Philippines : C & E Publishing Inc. pp.327- 334

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