LESSON 1
NURSING ENTREPRENEURSHIP
“Passion is a simple yet profoundly
all-encompassing narrative to describe the
essence of a true entrepreneur. Passion, in
my opinion, is the chief driver of successful
entrepreneurship anywhere in the world.
With passion, an entrepreneur possesses
an inherent fuel and inexhaustible stamina
that constantly drive his actions forward.
This superior energy helps overtake and
surpass various challenges and injects a
certain indescribable strength to continue
pursuing goals when difficulties arise.”
WHAT IS ENTREPRENEURSHIP?
● The process of designing, launching
and running a new business often
initially a small business. (Wikipedia)
● A set of practices adopted with the
purposes of guaranteeing the
generation of wealth and the better
performance of societies.
● Is the process of discovering new
ways of combining resources. When
the market value generated by this
new combination of resources is
greater than the market value these
resources can generate elsewhere
individually or in some other
combination, the entrepreneur
makes a profit.
● It came from French word,
“Extrependre” meaning to undertake.
ENTREPRENEURIAL MINDSET
● Looking for more professionally
satisfying and personally fulfilling
ways to contribute to health care
provisional systems, a small but
growing percentage of nurses is
reclaiming their traditional right to
independent clinical practice.
● They are expanding their roles and
offering a range of services, with the
focus primarily on health promotion,
illness and accident prevention,
rehabilitation and support services
but including clinical specialty
practices and management
consultancies.
● These nurse entrepreneurs are
providing research-confirmed quality
and effective care and establishing a
public image as patient advocates,
careers, counselors and educators
in addition to efficient clinicians.
WHAT IS ENTREPRENEURSHIP?
● Looking for more professionally
satisfying and personally fulfilling
ways to contribute to health care
provisional systems, a small but
growing percentage of nurse is
reclaiming their traditional right to
independent clinical practice.
● Nursing entrepreneurship dates
back to the turn of the century.
● In fact, until World War II many
nurses were in independent practice.
● WWII 1939-1945
HISTORY OF NURSE
ENTREPRENEURSHIP
● 1930 - Canada Nurses were
involved in private duty nursing.
● Their active participation in the
military service, public health
nursing, private-duty and home
nursing made them highly visible in
society.
POST WORLD WAR II
● Social and economic changes led to
the predominant institutionalization
of nursing practice in many
countries.
SOCIO-ECONOMIC FACTORS services: e.g. elderly, AIDS patients,
AFFECTING THE NURSING CAREER chronically ill, deinstitutionalized
BEFORE mental patients.
● An economic crisis that favored ● Greater emphasis on health
decentralization and implementation promotion, illness and accident
of innovative cost-effective prevention, rehabilitation and
approaches, including support services.
entrepreneurship. ● Significant advances in nursing
● World focus on privatization. knowledge.
● Liberalization of trade in services, ● Wider prescriptive referral rights.
including international (e.g. regional ● Direct laboratory access
trade blocs, international trade ● Increasing number of mutual
agreements). recognition agreements
● Facilities for entrepreneurial
projects, i.e. information networks, BEHAVIORS OF ENTREPRENEURS
legislation, public expectations,
credit access (especially for
women). ● Drive and energy
● Changes in societal perceptions of ● Self-confidence
authority. ● High initiative and personal
● Higher level of basic education and responsibility
easier access to further education. ● Internal locus of control
● Increased consumer awareness and ● Tolerance of ambiguity
changing demands, including in ● Low fear of failure
health matters. ● Moderate risk of taking
● Women’s new assertiveness in all ● Long-term involvement
parts of society. ● Money as a measure not merely an
● Greater diversity in women’s roles. end
● Chronic dissatisfaction of nurses in ● Use of feedback
the workplace due to poor public ● Continuous pragmatic problem
image, unsatisfactory working solving
conditions, inadequate ● Use of resources
decision-making authority, inability to ● Self-imposed standards
put into practice the knowledge and ● Clear goal setting
competencies acquired.
● Growing unemployment, CONTEMPORARY VIEWS
underemployment and casualization ● CARL MENGER (1871)
of nurses. - Entrepreneurship involves
● Movement of patients with high obtaining information,
acuity needs to nontraditional calculations and an act of will
settings. and supervision.
● Changing health needs of ● HARVEY LEIBENSTEIN (1970)
populations which were not - Entrepreneurship is reduction
adequately being met by the health of organizational efficiency.
● JOSEPH SCHUMPETER creation through four major
- Entrepreneurship is in its dimensions - individual,
essence, the finding and organizational,
promotion of new environmental, process -
combinations of productive aided by collaborative
factors. networks in government,
● ISRAEL KIRZNER (1975) education and institutions.
- Entrepreneurship is ● ROBERT HISRICH (2001)
identification of market - Entrepreneurship involves
arbitrage opportunity the creation process,
● ALBERT SHAPIRO (1975) requires the devotion of the
- Entrepreneurship involves a necessary time and effort,
kind of behavior that includes assumes the accompanying
initiative taking, organizing financial, psychic and social
and recognizing social risks and receives the
mechanism to turn resources resulting rewards of
and situations so practical monetary personal
account, and the acceptance satisfaction and
of risk and failures. independence.
● KARL VESPER (1980)
- Entrepreneurship is the ROLES OF NURSES
dynamic process of creating ● Business Entrepreneurship offers
incremental wealth. nurses opportunities for
● W. ED MC MULLAN AND WAYNE self-employment using innovative
A. LONG (1990) approaches,
- Entrepreneurship is the ● The innovative approaches.
building of new growth ● The nursing profession can be a
organization business owner offering clinical
● HOWARD STEVENSON (1992) practices nursing services directly,
- Entrepreneurship is the education, research, administrative
pursuit of opportunity beyond or even consulting.
the resources currently under
one’s control.
● JEFFRY TIMMONS (1994)
- Entrepreneurship is the
ability to create and build a
vision from practically
nothing
● PETER DRUCKER (1998)
- Entrepreneurship is the
process of starting one’s own
new and small business.
- It is also the process of NURSE INTRAPRENEUR
innovation and new venture
 ● A salaried employee, often a
government run health service, who
develops, promotes and delivers an
innovative health/nursing
programme or project within a given
healthcare setting such as hospitals
and clinics.
● Intrapreneurship started with
Florence Nightingale but time by
time, there’s a growing demand for
safe, high-quality and effective
health services, more resources are
being devoted to nurses assuming a
wider range of roles, with more
responsibility.
NURSE ENTREPRENEUR
● A nurse entrepreneur is considered
to be a “proprietor of a business that
offers nursing services of a direct
care, educational, research,
administrative or consultative nature.
● There are many opportunities and
business ideas out there for nurses
and other health-care professionals.
● The self-employed nurse is directly
accountable to the client, to whom,
or on behalf of whom, nursing
services are provided.
● A proprietor business that offers
nursing services of a direct care,
educational, research, administrative
or consultative nature.
● Social Entrepreneurship is an
approach that involves the
conception and implementation of
innovative ideas in which the nurse
seeks practical models to promote
social and environmental goals.
● Business nurse have more
individually oriented profiles than the
rest of population and take a positive
attitude toward business
management.
● Individual responsibility and effort
are distinctives features of nurse
entrepreneurs, who are also leaders
by nature.
● They are autonomous and wish to
achieve and create their own sake;
want to be seen as superior to
others and succeed well.
QUALITIES OF NURSE
ENTREPRENEURS
● Risk Takers
● Innovative than other entrepreneurs
● Strong control space
● They can influence outcomes by
ability, effort
CHALLENGES FACED BY NURSES
● Care gaps
● Shifting schedule
● Dysfunctional stressful environment
● Work overload
● Disease-oriented care
● Medico-centered model
● Hospital-care model
● Lack of autonomy and influence on
work
● Reimbursement for health systems
● Collaborative arrangements with
physicians
● Economic crises and recessions
● Personal and ethical conflicts
● Lack of Acceptability and recognition
by the public and by the class itself
● Lack of public policies
● Lack of technical support
● Non-change culture
● Unfair competition
● Gender issues
FILIPINO ENTREPRENEURS
● The Filipino entrepreneur who used
to develop and market products
locally is now faced with local
 competition with both Filipino and
foreign products and services which
are now available in the market.
● The Filipino entrepreneur has to
content with casting out the colonial
mentality of the local market with its
preferences for imported goods.
● Filipino entrepreneurs have the
chance of developing and marketing
export - quality products awing to the
various incentives and support
available.
LESSON 2
STEPS IN RUNNING BUSINESS
5 STEPS TO BECOMING A
NURSEPRENEUR
1. Assessment: Assessing the skills of
nurses and nurse experience in clinical
practice as well as assessing the needs of
the market (client/community).
2. Diagnosis: The second step after the
assessment is to establish the diagnosis. In
the business world, after we know the
needs of the market, the next step is
mapping the potential that we can enter to
respond to market needs. Mapping the
potential in this step is the stage diagnosis.
3. Plan: After we know the market potential
that we can enter, then the next step is
formulate a plan to enter to the real market.
This planning stage is the stage when we
should have clear and detail business
concept.
4. Implementation: This step is a step for us
to take action. Clear business concept must
be embodied in a tangible form. This stage
is the stage that most core in the process of
doing business and of course is the most
difficult stage. All people can have an idea,
but not all people dare to take action.
5.Evaluation: In any system, the evaluation
is an important part and should not be
forgotten. From this evaluation, we can
determine whether the implementation of
our done successfully or not. The same in
the business world, the evaluation will
provide picture to us whether the concept
that we have run successfully or not. If
successful, then we can do improvement,
but if not, change of plans and strategies
can be done.
● A nurse can become a nurse
entrepreneur or intrapreneurs. A
nurse entrepreneur is a nurse who
runs his/her own business or with
some friends in the nursing
business. Instead of nurse
intrapreneurs are nurses whom run
the “business” in a division or part of
an existing company. Being an
intrapreneur is safer, get a career,
and be able to step into an
entrepreneur. Of course this is
different from what is generally
nurses do, and not working in the
hospital that naturally is not the
place “to do business”. Skills and
character of nurse needed are really
different, they must have an
entrepreneurial spirit, start your own,
financially responsible, try new
things, and brave. They as a nurse
is also required to have a sales soul,
customer services, budgeting,
forecasting and management.
Simply, becoming a nurse
intrapreneur better yet, while
working in an institution or business
while working as a nurse, but has a
 side business in the field of
entrepreneurship. Once we are sure
are ready, it can directly engage in
entrepreneurship to mind our own
business.
Components to become a nurse
entrepreneur
- Quality: It is important to be a
creative and able to put the idea
from concept to reality. A nurse
entrepreneur must also have
knowledge of management as the
basis for becoming a nurse
entrepreneur, such as: strategic
planning, business plan
development, marketing,
management information systems,
leadership, and financial
management.
- Role: Entrepreneur as a person who
can organize and manage as well as
deal with a business that is willing to
take risks for the sake of profit.
- Option and Success: Nurses have a
lot of options as a way to act as
entrepreneurs. And of course these
choices in base of skills and
innovation as well as knowledge of
nurses that can be developed to
become a successful nurse.
Business ideas for RNs
1. Start Providing Teaching Services
2. Start a nursing agency/manpower agency
3. Become a hospice/palliative nurse
4. Become a legal consultant
5. Become a successful writer
6. Become a holistic nurse
7. Respite Care Service
8. Child Care
9. Doula Service
10. Childbirth Education Service
11. Lactation Consulting
12. Fertility Consulting
13. Concierge Nurse Service
14. Patient Care Consulting
15. Telehealth Nursing
16. Dietitian Service
17. Wellness Coaching
18. Health Blogging
19. Ebook Sales
20. Public Speaking
21. Massage Therapy
22. Alternative Medical Service
23. Mindfulness Coaching
24. Medical Supply Sales
25. Nurse Product Sales
Lecture 3 Social behavioral approach of
Entrepreneurship
LEARNING THEORIES
● Frameworks that deal with the ways
in which people process and retain
information.
● Commonly used in organizational
development.
● A coherent framework and set of
integrated constructs and principles
that describe, explain, or predict how
people learn.
A. BEHAVIORIST LEARNING THEORY
● Behaviorists view learning as
product of stimulus (S) conditions
and the responses(R) that follow
also known as S-R model of
learning.
 ● They observe responses and then
manipulate the environment to bring
about the intended change.
● They recommend either altering the
stimulus conditions in the
environment or changing what
happens after a response occurs.
Respondent conditioning
● Termed as classical or Pavlovian
conditioning.
● It emphasizes the importance of
stimulus conditions and the
associations formed in the learning
process.
● A neural stimulus (NS) – a stimulus
that has no particular value or
meaning to the learner is paired with
a naturally occurring unconditioned
or unlearned stimulus (UCS).
● Ex.
Someone without much experience
with hospitals (NS) may visit a sick
relative. While in the relative’s room,
the visitor may smell offensive odors
(UCS) and feel queasy and
light-headed (UCR). After this initial
visit and later repeated visits,
hospitals (now the CS) may become
associated to feeling anxious and
nauseated, especially of the visitor
smells odor similar to those
encountered during the first
experience.
Systematic desensitization
● Technique based on respondent
conditioning that is used by
psychologists to reduce fear and
anxiety in their clients.
● Used in treating drug addiction,
phobias, and tension headache.
Stimulus generalization
● Tendency of initial learning
experiences to be easily applied to
other similar stimuli.
● Individuals learn to differentiate
among similar stimuli, the
discrimination learning occurs.
Spontaneous recovery
● Knowing the needs to be given
careful consideration in relapse
prevention programs.
● Although a response may appear to
be extinguished, it may “recover”
and reappear at any time (even
years later), especially when
stimulus conditions are similar to
those in the initial learning
experience.
OPERANT CONDITIONING
Developed by B. F. Skinner (1974; 1989)
● Focused on the behavior of the
organism and the reinforcement that
occurs after the response.
● A reinforce is a stimulus or event
applied after a response that
strengthens the probability that the
response will be performed again.
● According to Skinner, using positive
reinforcement (i.e. reward) greatly
enhances the likelihood that a
response will be repeated in similar
circumstances.
● Using negative reinforcement after a
response is made is a second way
to increase a behavior. It involves
the removal of unpleasant stimulus
 through either escape conditioning
or avoidance conditioning.
● Punishment vs. rewards system
● “Very nice job,dear!”
● It provide quick and effective ways to
change behavior
ESCAPE CONDITIONING
Unpleasant stimulus is being applied, the
individual responds in some way that
causes the uncomfortable stimulation to
cease.
AVOIDANCE CONDITIONING
● The stimulus is anticipated rather
than being applied directly.
● It explains how people become ill so
as to avoid something they do not
want to do so.
** If non-reinforcement proves ineffective,
then punishment may be employed as a
way to decrease responses, although there
are risks in using this approach.
Under punishment conditions, the individual
cannot escape or avoid an unpleasant
stimulus.
“To punish the behavior, not the person.”
B. COGNITIVE LEARNING THEORY
● Stress the importance of what goes
“inside” the learner.
● The key to learning and changing of
an individual is the individual’s
cognition (perception, thought,
memory and ways of processing and
structuring information).
● Grew out of a psychology movement
known as “Gestalt”, derived its name
from a German word that means
literally to mean “shape” or “form”
and is better interpreted as
“organization” or “configuration”.
● Gestalt psychologists believed that
human mind created its own reality,
and it is from this idea that
Cognitivive Learning Theories or
Cognitivism was born.
● Maintain that reward is not
necessary for learning. More
important learner’s goals and
expectations creating disequilibrium,
imbalance and tension that
motivates them to act.
● Rather than focus : discrete stimuli,
gestalt refers to the configuration or
patterned organization of cognitive
elements, reflecting maxim that “ the
whole is greater than the sum of the
parts.”
Each person perceives, interprets, and
responds to any situation in his or her
own way.
1. Information processing cognitive
preferences that emphasizes
thinking processes: thought,
reasoning, the way information is
encountered and stored, and
memory function.
- How information is incorporated and
retrieved is useful for health
professionals to know, especially in
relation to older people’s learning.
- Cognitive psychologists note that
memory processing and the retrieval
of information are enhanced by
organizing information and making it
meaningful.
Cognitive development
 ● Qualitative changes in perceiving,
thinking and reasoning as individuals
grow and mature.
● Cognitions – based on how external
events are conceptualized,
organized and represented without
each person’s mental framework or
schema – framework that is partially
dependent on the individual’s stage
of cognitive development and
readiness to begin.
● Ex : Jean Piaget – observed how a
child’s perception and though
processes at different ages have
contributed to our recognition of
unique ways the youngsters like you
reason out, the changes in their
ability to conceptualize, and their
limitations in understanding,
communicating and performing.
Jean Piaget’s Cognitive development
Stage I – Sensorimotor stage
Stage II – Pre-operational stage – early
childhood
Stage III – Concrete operations stage –
Elementary years
Stage IV – Formal Operations stage –
adolescence teenage years who begin to
think abstractly.
C. SOCIAL LEARNING THEORIES
● Interaction, issues you learned from
your own experience.
● Much of learning occurs by
observation – watching people and
discerning what happens to them.
● A social process, and other
individuals especially “S.O.” provides
compelling examples or role models
for how to think, feel and act.
● Based on Bandura’s work focusing
on Role Modeling.
● He views the learner as the agent
through which learning experiences
are filtered. As he argued, “the
human mind is not just reactive, it is
generally creative and reflective.”
D. PSYCHODYNAMIC LEARNING
THEORY
● Experiences during childhood may it
be positive or negative.
● Largely a theory of motivation
stressing emotions rather than
cognition and responses the
psychodynamic perspective
emphasizes the importance of
conscious and unconscious forces in
guiding behavior, personality
conflicts, and the enduring effects of
childhood experience.
● Behavior may be conscious or
unconscious – that is, individuals
may or may not be aware of their
motivations and why they feel, think,
and act as they do.
● The most primitive source of
motivation comes from the ID and is
based on libidinal energy (the basic
instincts, impulses, and desires we
are born with) including eros (the
desire for pleasure and sex,
sometimes called the life source,
Thanatos (aggressive and
destructive impulses or death wish).
● Elizabeth Kubler Ross – pointed out
that many terminally ill patients’
initial reaction to being told they
have serious illness is to employ the
defense mechanism of denial.
● Ego defense mechanisms
 ● Erik Erikson’s stages of
development

E. HUMANISTIC LEARNING THEORY

● Learning is the assumption that each

individual is unique and that all
individual is unique and that all
individuals have a desire to grow in
a positive way.
● Home, genetics and training
coincide.
● E.g. males are less emotional than
females, some ethnic groups are
inferior to others, making money is
more important than caring for
people, and by adult’s maltreatment
of their children and each other.
● Largely a motivational theory;
motivation is derived from each
personal’s needs, subjective feelings
about the self, and the desire to
grow.
● Transfer of learning is facilitated by
curiosity, a positive self-concept, and
open situations where people
respect individuality and promote
freedom of choice. Social entrepreneurship- DEFINED
● Listening rather than talking.
● Social entrepreneurship is a form of
Examples: entrepreneurship that exhibits
Maslow’s hierarchy of needs characteristics of non-profits,
Carl Rogers – argued what people want is governments and businesses,
unconditional positive self-regard (the combining private-sector focus on
feeling of being loved without strings innovation, risk taking and
attached). large-scale transformation with
- experiences that are threatening, social problem solving.
coercive, and judgmental undermine ● It begins with a perceived social
the ability and enthusiasm of opportunity translated into an
individuals to learn. enterprise concept; resources are
then ascertained and acquired to
execute the enterprise’s goals.
● WIKIPEDIA says an approach
by start-up
 companies and entrepreneurs, in - Institute for OneWorld Health
which they develop, fund and
implement solutions to social, b. JIM FRUCHTERMAN
cultural, or environmental issues. - Benetech
This concept may be applied to a
wide range of organizations, which Both received “genius grants” from the
vary in size, aims, and MacArthur Foundation.
beliefs.For-profit entrepreneurs The identified themselves as hi
typically measure performance using
business metrics
like profit, revenues and increases ● Skoll Foundation and the Public
in stock prices.  Broadcasting Services (2005)
● A social entrepreneurial community, created a two-part miniseries
and through them country, is able to profiling “The New Heroes”, 14
maximize the opportunities social entrepreneurs from around
presented to them. Their work helps the globe.
their communities and their people
through more jobs, increased ● World Economic Forum, which
incomes, improved livelihoods, while annually brings together business,
reducing the environmental impact government, and national leaders
of their activities. Social who are “committed to provide the
entrepreneurs contribute to state of the world”, hosted by Social
community development, so that the Entrepreneurs Summit.
entire community has improved
conditions, not just individuals, - ASHOKA
through sustainable grassroots - Founded by Bill Drayton (1980)
methods. - Leads a profound transformation in
society.
Current Social Entrepreneurs
PHILIPPINE SETTING
● 2006 TEACHFORAMERICA
Founder Wendy Kopp ● The British Council has just
● City year cofounders Michael Brown published a report entitled A Review
and Alan Khazei were profiled in US of Social Enterprise Activity in the
News & World Report as one of Philippines  which finds that social
America’s Top 25 leaders. enterprise is vibrant and growing in
“Empowerment through Integration” – Alan the Philippines, awareness is rising,
Khazei and the country is on the cusp of
important policy changes that could
MUHAMMAD YUNUS see social enterprise have a much
- Founder of the Grameen Bank wider presence and impact in
- Awarded Nobel Peace Prize coming years.
● The Philippines is a populous (107
a. VICTORIA HALE million people) geographically
 dispersed (7,107 islands) and
youthful country (34% of the
population under 14 years old),
where more than a quarter of the
population lives below the poverty
line. It has a strong entrepreneurial
culture, with one million Medium and
Small Enterprises, which account for
99% of all businesses in the country.
● A survey taken in 2007 established
that there were 30,000 social
enterprises in the country, a majority
of which were cooperative or
associations of some form. Few of
these operate at scale, though there
are some notable exceptions.
● Philippines Social Value Bill,
modelled on the UK Social Value
Act, which would include ‘social
value’ in all government
procurement – meaning that bids for
any government contract put out to
competitive tender would have to be
evaluated on the social benefit to
society they would deliver as well as
on their value for money and product
or service quality. This social benefit
might include “support for poor
communities or marginalized groups,
advancement of human rights and
social justice, protection of the
environment, and community
development.”
● Funding for social enterprises is
available from microfinance lenders,
foundations, donors such as the
Asia Development Bank (ADB) and
from social impact investors such as
LGT Venture Philanthropy and IIX
(Impact Investment Exchange Asia).
Another source of funding is the
Filipino ‘diaspora.’ The Philippines
has one of the largest diasporas in
the world, with around 12 million
Filipinos living abroad, and the
economy is heavily reliant on the
remittances they send home. Some
overseas workers have invested in a
fund which provides capital to social
enterprises alongside business skills
support.
● A growing number of support
structures are emerging to support
the sector. These include an
increasing number of universities
and business schools that provide
social enterprise undergraduate and
post-graduate programmes, or social
enterprise modules as part of other
programmes. Other sources of
support include chambers of
commerce and some corporations.
Support seems to work best when
targeted to the needs of individual
enterprises, or accessible to
enterprises as and when they
require it.
● Looking ahead, the British Council’s
Maria Angela Flores said, “We hope
that this report will be a useful
resource for all stakeholders helping
to build the movement here and
expect that it will greatly inform our
future work in embedding social
enterprise in the development
agenda."
Top 10 Richest in the Philippines
The top 10 richest in the Philippines are:
Sy siblings; US$17.2 billion
Manuel Villar; $6.6 billion
John Gokongwei, Jr.; $5.3 billion
Enrique Razon, Jr.; $5.1 billion
Jaime Zobel de Ayala; $3.7 billion
Lucio Tan; $3.6 billion
Tony Tan Caktiong; $3 billion
Ramon Ang; $2.8 billion
Ty siblings; $2.6 billion
Andrew Tan; $2.55 billion
● Known Filipino Entrepreneurs
1. Socorro Ramos
- National Bookstore, Inc.,
● Started working as a salesgirl when
she was 18 years old in Goodwill
Bookstore in Escolta. She was good
in selling, that’s why she became in
charge of the store. When she got
married, they put up the National
Bookstore.
● Vision: Extend NBS not only in
Luzon but also to Visayas and
Mindanao for cheaper access to
books and schools supplies.
● Until later on, it was selling books,
greeting cards, and school supplies.
Today there are 70 NBS branches
found nationwide.
2. TONY TAN CAKTIONG
- Jollibee Foods Corporation
● Jollibee was formerly selling
Magnolia Ice Cream, then it was
recognized as selling chicken and
burgers. He was the President and
CEO of Jollibee, was a name to
remember, not only here in the
Philippines but also in parts of the
world, like USA, Hongkong, China,
Indonesia and Japan.
● The success of Jollibee according to
Mr. Caktiong is sharing to people
what they had achieved.
● Jollibee had been known to be a
happy and hardworking insect. It is
the favorite place of many Filipinos
especially the kids.
3. LUCIO TAN
- Philippine Airlines
● Lucio Tan’s Story from rags to riches
tale. Before working in the tobacco
industry, his business was a scrap.
His dream was to become a scientist
but his fortune was bound to
become an entrepreneur. His hard
work made him successful and
became famous.
● Now he owns Asia Brewery,
Tanduay, Fortune Tobacco,
Philippine Airlines, Allied Bank,
Philippine National Bank (PNB).
4. ATTY FELIPE L.GOZON
- GMA Network Inc.,
● He is the chairman, president and
CEO of GMA Network. He was
credited for the success of GMA
Network in radio and TV
broadcasting, filmmaking and music
recording.
● He was Master Entrepreneur in
2004.
● Because of leadership of Atty.
Gozon, he made GMA as one of the
top networks in the country today.
● Currently, GMA had via-satellite
broadcasting in Asia and other parts
of the world.
5. Late Henry Sy, Sr.
- Shoemart (SM)
● He was born December 25, 1923 in
Xiamen, China. In his early twenties,
he used to sell American shoes.
Then after 3 years he was able to
have his first shoe mart store.
● SM group of companies was one of
the biggest companies in our country
and the man behind it was him.
 ● His self-discipline, perseverance,
and hard work made him what he is
today.
● In almost part of the country, as well
as in Asia there’s an SM mall.
● According to him, success will not
last if you do not care of it.
6. JAIME ZOBEL DE AYALA
- Ayala Corporation
● He was before president and
chairman of Ayala Corporation.
● He was considered as one of the
riches persons tied with Henry Sy in
2007.
● He had received many awards and
the latest was Entrepreneur of the
year 2012.
● His strategy for being successful in
this business was getting partners
with those who are in need in the
community.
● He believes that gaming profits was
not really the concern of every
businessman, but to help the poor
people.
7. Alfredo Yao
- ZEST-O Corporation
● He came from a poor family and
became rich due to hard work and
determination.
● He didn’t finished his education at
Mapua Institute of Technology. He
experienced to work in the printing
press and then ventured to this
business for 20years.
● Then, he shifted to a juice
manufacturing business. Zest-O
became hit to mothers because of its
being convenient to be placed in
every lunch box of the children.
● Today, Zest-O was one of the
leading juice manufacturers in the
country, in China, New Zealand,
Singapore and many others.
8. Late Mariano Que
Mercury Drugstore
Mariano Que first worked in a drugstore.
When he was given the opportunity, he
invested his 100 pesos in his Sulfathiazole
tablets. He sold his products to the people
by making use of the wooden pushcart.
After saving a lot of money, he was able to
built Mercury. It was made known to the
people as selling safe medicines and
opened 24/7.
9. Cecilio Pedro
Lamoiyan Corporation
Cecilio Pedro finished his management
degree in Ateneo de Manila University
He founded the Lamoiyan Corporation
which produces toothpastes like
“Hapee”and “Kutitap”.
10.Late John Gokongwei, Sr.
John’s life story is a “rich-to-rags-to riches”
story. John Jr. was born in China to the
scion of one of the wealthiest families in
Cebu.When the father died, so did the
business and the family fortune was soon
gone. John Jr. supported his family by
peddling items along the streets of Cebu by
bike. Soon, he was trading items by boat to
Lucena City and to Manila by truck.
Eventually, he started importing items from
the US.John Jr. soon realized that importing
carried too much risk and low margins.
Thus, in 1957, he borrowed Php 500,000
from China Bank and started a corn milling
business named Universal Corn Products.
By 1961, Universal started diversifying its
products and launched several popular
brands such as Blend 45. Universal Corn
Products was renamed Universal Robina
Corporation.Today, the Gokongwei family
owns several successful and highly
diversified businesses. Among these
are Robina Land Corporation and Cebu
Pacific
11.Corazon Ong
- CDO FOODSPHERE, Inc.,
● Corazon D. Ong is the founder of
CDO Foods. It was a hobby of Ms.
Ong to make processed meats
products such as corned beef,
hotdog, meatloaf and hamburger
patties. She was a dietician by
profession. So she understood what
the preferences of most Filipinos
are. Today, CDO Foodsphere, Inc.
was recognized as the leading
supplier of meat toppings. Why??
Because nowadays we have many
working mothers and it is convenient
on their part to have foods which can
be cooked easily.
LECTURE 4 – social entrepreneurship
vs. business entrepreneurship
Social entrepreneur
● A person (or small group of
individuals) who founds and/or leads
an organization or initiative engaged
in social entrepreneurship.
● “public entrepreneurs”
● “civic entrepreneurs”
● “social innovators”
● Change agents, creating large-scale
change using pattern-breaking
ideas, addressing root causes of
social problems, processing the
ambition to create systemic change
by introducing a new idea and
persuading others to adopt it.
Characteristics
● Adoption of a mission to create and
sustain social value (beyond
personal value)
● Recognition and relentless pursuit of
opportunities for social value
● Engagement in continuous
innovations and learning
● Action beyond the limited resources
at hand.
● Heightened sense of accountability.
Sustainable Entrepreneurship
Focused on the preservation of nature, life
support and community in the pursuit of
perceived opportunities to bring into
existence future products, processes and
services for gain, where gain is broadly
construed to include economic and
non-economic gains to individuals, the
economy and society. (Dean shepherd and
Holger Patzelt)
Example
● Environment → pollution control
● Energy→ restoration of energy in
marketing and operations
● Human resources promotion of
employee’s health and safety →
employee’s training and
development
● Community → donations of cash,
products, services or employee time
● Products → enhancement of
product safety
Strategies and objectives of social
entrepreneurship
● Eliminate the concept of waste
● Restore accountability.
● Make prices reflect costs.
● Promote diversity.
● Make conversation profitable.
● Insist on accountability of each
nations or companies.
Elements that make enterprises more
sustainable
1. Purpose – create material positive
impact on society and the
environment.
2. Accountability – to have a fiduciary
duty to consider the interests of
workers, the community, and the
environment.
3. Transparency – to report annually to
the public on overall social and
environmental performance with a
credible and transparent third party
standard.
Capitalisms
World’s dominant economic system, having
over recent decades, replaced many
socialistic and centrally planned systems
worldwide. It has expanded its reach across
the globe and is now an engine for
economic growth not only in America but
elsewhere in the world.
Global Thinking
Very important because today’s consumers
can select products, ideas, and services
from many nations and cultures.
Entrepreneurs who expand into foreign
markets must be global thinkers in order to
design and adopt strategies for different
countries.
Diaspora Network
● Relationships among ethnic groups
that share cultural and social norms.
● Through easy communications
technology (internet and skype_ and
the social media (Facebook,
LinkedIn, Twitter, etc.) diasporas are
linking together stronger than ever
before offering potential linkages for
global entrepreneurs.
● This type of “hyper-connectivity”
enables the global entrepreneurs to
collaborate instantaneously and
intimately to their communities of
ethnic origin.
Global Organizations and Agreements
1. WORLD TRADE ORGANIZATION
- Established : January 1, 1995
● Umbrella organization governing the
international trade system.
● Job/task: oversee international trade
agreements, but does not replace
the General Agreement on Tariffs
and Trade (GATT)
● Location: Geneva, Switzerland
● Employs experts: lawyers,
economists, statisticians and
communications experts.
● They assist WTO members on daily
basis to ensure, among other things,
that negotiations progress smoothly
and that the rules of international
trade are correctly applied and
enforced.
2. The North American Free Trade
Agreement
● An international trade agreement
among Canada, Mexico, and the
United States that eliminates the
barriers among the three nations.
● It created the world’s largest free
trade area linking 444 million people
and producing $17 trillion in goods
and services annually.
● It increases USA’s GDP by 0.5 % a
year because it eliminates tariffs and
creates agreements on international
rights for business investors.
TOP 3 IMPORTERS IN USA :
1- CANADA
2- CHINA
3- MEXICO
3. THE EUROPEAN UNION (EU)
● Founded in 1957 as the European
Economic Community and in 199
became a full-pledged economic
union.
● Both an economic and political union
of 27 member states which are
located primarily in Europe.
● Objectives:
- Elimination of custom duties among
all members states
- Free flow of goods and services
among all members
- Creation of common trade policies
toward all countries outside EU
- Free movement of capital and
personnel within the bloc
- Encouragement of economic
development throughout the bloc
- Monetary and fiscal coordination
among all members.
Local Business Organizations
PHILIPPINE CHAMBER OF COMMERCE
AND INDUSTRY
● a non-stock, non-profit and
non-government organization of
small, medium, and large
enterprises, local chambers, and
industry associations representing
various sectors of business
● Formerly known as “Camara De
Commercio De Filipinas” in 1886
composed of 3 largest Spanish
Companies before :
1. La Compania General de Tabacos
de Filipinas,
2. La Fabrica de Cerveza de San
Miguel, and
3. Elizalde y Cia
Goal : founded the Camara primarily to
settle petty disputes between merchants.
History of PCCI
● La Camara began to wane and a
new organization the Chamber of
Commerce of the Philippines (CCP)
led by Filipino and Chinese mestizo
businessmen was formed on July
19, 1903 
● In 1948 Hilarion Henares, Sr., and
20 local industrialists and
entrepreneurs estabished the Small
Industries and Machine Shop
Owners of the Philippines
(SIMSOP). 
● With Henares as SIMSOP president,
which by then was composed of 200
members, held its first national
convention on March 4, 1950, with
the theme “Intensified Manufacturing
and Solid Support for Basic
Philippine Industries.”
 ● It was during this convention that
Gonzalo Puyat, the “Dean of Filipino
Industirlaists,” urged the SIMSOP to
change its name to Camara de
Industria de Filipinas or the
Philippine Chamber of Industries
(PCI).
● SIMSOP now became known as
PCI. Advocated for Philippine- made
products through educational
campaigns aimed at altering the
centuries-old colonial mentality, and
eventually fostered the interest of
Filipinos to become manufacturers
and entrepreneurs ready to take
risks by investing huge capital in
new industries.
● As both the CCP and the PCI
became strong forces in the
business sector, and their functions
and projects overlapped, top officials
of both organizations began to
entertain the idea of a merger. After
the two groups approved of the
unification, 15 charter members from
the PCI and CCP were elected to
formulate the constitution and
by-laws of the newly established the
Philippine Chamber of Commerce
and Industry (PCCI).  4.) Indian Chamber of Commerce
● During the 4th Philippine Business
Conference, the Palace issued
Letter of Instruction No. 780
designating the PCCI as “single
voice of Philippine business,” on
December 7, 1978  by late President
Ferdinand Marcos, Sr.
Vision
● PCCI is the voice of Philippine
business recognized by government
and international institutions. As a
proactive catalyst of development,
PCCI promotes and supports the
drive for globally competitive
Philippine enterprises in partnership
with government, local chambers,
and other business organizations.
Mission
● The main responsibility of PCCI is to
provide focused advocacy for
business growth and sustainable
development by providing business
services for the advancement of
grassroots entrepreneurship,
chamber development, international
trade relations, business innovation
and excellence, and operating
efficiency. These will be achieved
through a professional organization
working in close cooperation with
various stakeholders in public and
private sectors.
Some Philippine Known Business
Organizations
1.) American Chamber of Commerce in
Manila
2.) Canadian Chamber of Commerce
3.) European Chamber of Commerce 
5.) Chinese Filipino Business Club
6.) Japanese Chamber of Commerce and
Industry of the Philippines
7.) Makati Chamber of Commerce and
Industry
8.) Association WTCMM
Successful Businesses in the
Philippines
● SM Investments Corporation
● Philippine Long Distance Telephone
Company (PLDT)
● SM Prime Holdings, Inc
 ● Ayala Land, Inc.,
● JG Summit Holdings, Inc., 1. Ignorance and uncertainty
● BDO Unibank, Inc 2. Lack of experience
● BPI 3. Lack of information about the
resources
4. Restrictions imposed by host country
Methods of Going International 5. Financial risks – incorporate
fluctuating exchange rates,
● IMPORTING → buying and repatriation and capital and seasonal
shipping foreign-produced goods for cash flows.
domestic consumption. 6. Bureaucratic red tape
● EXPORTING → shipping of a
domestically produced good to a PESTEL ANALYSIS
foreign destination for consumption.
A PESTEL analysis is a framework or tool
LICENSING business arrangement in used by marketers to analyse and monitor
which the manufacturer of a product (or a the macro-environmental (external
firm with proprietary rights over certain marketing environment) factors that have an
technology or trademarks) grants impact on an organization. The result of
permission to some other group or which is used to identify threats and
individual to manufacture that product in weaknesses which is used in a SWOT
return for specified royalties or other analysis.
payments.
PESTEL stands for:
3 Basic types of Programs: P – Political
● Patents E – Economic
● Trademarks S – Social
● Technical “know-how” depends on T – Technological
the security of secrecy agreements. E – Environmental
L – Legal

Requirements to conduct market

research or feasibility

● Government regulations
● Political climate
● Infrastructure
● Distribution channels
● Competition
● Market size
● Local customs and culture
Political Factors

● These are all about how and to what

International Threats and Risks
degree a government intervenes in
 the economy. This can include –
government policy, political stability
or instability in overseas markets,
foreign trade policy, tax policy, labour
law, environmental law, trade
restrictions and so on.
● It is clear from the list above that
political factors often have an impact
on organisations and how they do
business. Organisations need to be
able to respond to the current and
anticipated future legislation, and
adjust their marketing policy
accordingly.
Economic Factors
● Economic factors have a significant
impact on how an organisation does
business and also how profitable
they are. Factors include – economic
growth, interest rates, exchange
rates, inflation, disposable income of
consumers and businesses and so
on.
● These factors can be further broken
down into macro-economical and
micro-economical factors.
Macro-economical  factors deal with
the management of demand in any
given economy. Governments use
interest rate control, taxation policy
and government expenditure as their
main mechanisms they use for this.
Social Factors
● Also known as socio-cultural factors,
are the areas that involve the shared
belief and attitudes of the population.
These factors include – population
growth, age distribution, health
consciousness, career attitudes and
so on. These factors are of particular
interest as they have a direct effect
on how marketers understand
customers and what drives them.
Environmental Factors
● These factors have only really come
to the forefront in the last fifteen
years or so. They have become
important due to the increasing
scarcity of raw materials, pollution
targets, doing business as an ethical
and sustainable company, carbon
footprint targets set by governments
(this is a good example were one
factor could be classes as political
and environmental at the same
time). These are just some of the
issues marketers are facing within
this factor. More and more
consumers are demanding that the
products they buy are sourced
ethically, and if possible from a
sustainable source.
Legal Factors
● Legal factors include - health and
safety, equal opportunities,
advertising standards, consumer
rights and laws, product labelling
and product safety. It is clear that
companies need to know what is
and what is not legal in order to
trade successfully. If an organisation
trades globally this becomes a very
tricky area to get right as each
country has its own set of rules and
regulations.
CH-5 Business
entrepreneurship
Business entrepreneur
● any individual who starts and
operates a business while assuming
the risks associated with any such
venture (e.g., using one's own
collateral in exchange for start-up
financing from a lending institution).
Forms of Business Ownership
1. Sole Proprietorship
● One owner has control of the
company/organization.
● Approximately 74% of all businesses
in USA are sole proprietors.
● Advantages:
- Easy to start business
- Owner makes all decisions
- Owner gets to keep all the profits
- Owner is his/her own boss
● Disadvantages:
- Owner is liable in all debts
- Owner must work long hours
- Difficult to start capital all alone
- If owner dies or becomes ill,
business also dies.
- Risk of losing money is not shared
by anyone
2. Partnerships
● Two or more people legally agree to
become one co-owner of a business.
● Each person contributes his/her own
money, properties, labor or skill, and
expects to share the profits and
losses of the business.
Advantages:
● Fairly easy to start business
● More ways to raise capital (to start
and operate the business)
● More skills available
● Shared decision among partners
Disadvantages:
● Each partner is liable in business
debts
● Each partner can make decisions
● Partnership can end if one dies or
become ill
● Shared profits
● Conflicts arise between partners
disagreeing
3. Corporation
● Business owned by a number of
people and operated under written
permission from the state in which it
is located (called Incorporation).
● Unlimited number of shareholders,
no limits on stock classes or voting
arrangements, ownership and
management of the business are
separated.
Advantages:
● Easy to raise capital
● Limited liability
● Ownership can be easily transferred
● Unlimited life of business
 ● Hire specially skilled and
knowledgeable employees
● Risk is shared by many
Disadvantages:
● Can be difficult to start
● Owners do not have as much control
of day-to-day decisions
● Double taxation on the corporation
and individual owners
● Profits are shared.
4. Franchise
● Individual business people buy and
operate a business that already
exists.
● A certain percentage of sales or
profits go back to the original
corporation.
5. cooperatives
● A form of business organization in
which the business is owned and
controlled by those who use its
services. A cooperative may be
organized as a legal entity or it may
be an unincorporated association.
● organized primarily for the purpose
of providing service to their
user-owners, rather than to generate
profit for investors
PURPOSES OF COOPERATIVES:
● To supply members with agricultural
production components such as
fuels, fertilizers, feed and chemicals;
● To provide members with an
organizational structure for jointly
handling and marketing their
products;
● To provide services to members, like
housing, electricity, telephone,
insurance, and health care.
ADVANTAGES
● equality involved in its management
and how democratic it is overall. 
● The members can have all of their
needs met without having to defer to
a single person.
● Members will come and go without
necessarily disrupting the way things
work
● all the members of the cooperative
need to be active within the
cooperative so they can divide the
workload equally among
themselves.
DISADVANTAGES
● fewer incentives for large investors
when attracting capital.
● Not that appealing to those wealthy
investors.
● sometimes experience problems
when they try to get debt capital
from banks and other financial
institutions. 
● do not have professional managers
because they are just too expensive,
For this reason, the co-op can
eventually fail because of poor
management and organization.
Corporate entrepreneurship
● Corporate entrepreneurship evolved
over the last forty years to become a
strategy that can facilitate firms’
efforts to create innovation and cope
effectively with the competitive
realities in today’s world markets.
● Companies or organizations that
exhibit corporate entrepreneurship
 are typically viewed as dynamic,
flexible entities prepared to take
advantage of new business
opportunities when they arise.
● A process that can facilitate efforts
to innovate and can help firms cope
with the competitive realities of the
world market.
Corporate entrepreneurship- DEFINED
● Approaches have as their
commonality the exhibition of
large-scale or otherwise highly
consequential innovations that are
adopted in firm’s pursuit of
competitive advantage.
5 important Practices for establishing
innovation-driven organizations

● Corporate entrepreneurship may be 1. Set explicit innovation goals –

formal or informal activities aimed at mutually agreed by both employee
creating new businesses in and the management so specific
established companies through steps can be achieved.
product and process innovations and 2. A system of feedback and
market developments. (Shaker positive reinforcement – creation
Zahra) of this system is needed by potential
● Corporate entrepreneurship innovators or creators of ideas to
encompasses two major realize that acceptance and reward
phenomena: (1) new venture exist.
creation within existing organizations 3. Individual responsibility –
and (2) transformation of establishing confidence, trust and
organizations through strategic accountability are key features in the
renewal. (Guth & Ari Ginsberg) success of any innovative program.
● A process by which an individual or 4. Provide rewards for innovative
group of individuals in an ideas – reward systems should
association, or organization creates enhance and encourage others to
a new organization instigating risk and to achieve.
renewal or innovation within it. 5. Do not punish failures – real
learning takes place when failed
CORPORATE VENTURING projects are examined closely for
what can be learned by individuals.
● Approaches have as their business
commonality by adding new Rules for an Innovative Environment
business (or portions of new
businesses via equity investments) 1. Encourage action.
to the corporation. 2. Use informal meetings when
● Corporate entrepreneurial efforts possible.
leading to the creation of new 3. Tolerate failure, and use it as a
business organizations within learning experience.
corporate organization. 4. Persist in getting an idea to market.
5. Reward innovation for innovation’s
Strategic Entrepreneurship sake.
 6. Plan the physical layout of the
enterprise to encourage informal
communication.
7. Expect clever bootlegging of ideas –
secretly working on new ideas on
company times as well as on
personal time.
8. Put people on small teams for future
oriented projects.
9. Encourage personnel to circumvent
rigid procedures and bureaucratic
red tape.
10. Reward and promote innovative
personnel.
● When these rules are followed, they
create an environment conductive to
and supportive of potential
entrepreneurial thinking resulting to
corporate philosophy that supports
innovative behavior.
Restructuring corporate thinking and
encourage entrepreneurial environment:
● Early identification of potential
innovators
● Top-management sponsorship of
innovative projects.
● Creation of innovation goals in
strategic activities
● Promotion of entrepreneurial
thinking through experimentation
● Development of collaboration
between innovators and the
organization at large.
Factors found in large corporations with
successful innovations:
● Atmosphere and vision
● Orientation to the market
● Small, flat organizations
● Multiple approaches
● Interactive learning
● Skunk works – small group that work
on their ideas outside of normal
organizational time and structure.
Critical steps of a corporate
entrepreneurship strategy:
1. Development of a vision
2. Encouraging innovation
3. Structuring for an entrepreneurial
climate
4. Preparing individual managers for
corporate innovation
5. Development of venture teams.
● Incremental innovation →
systematic evolution of a product or
service into newer or larger markets.
● Radical innovation → launching of
inaugural breakthroughs such as
social networking, mobile computing,
cloud storage, online dating, and
green technologies.
LESSON 6
STEPS TO BECOME AN
ENTREPRENEUR
1. Find the business that interests you.
2. Check to see if you need to get educated
or need to further your knowledge on your
chosen field.
3. Planning what to do for your business
4. Knowing your target market.
5. Networking.
6. Sell your product or service
7. Marketing.
Thinking of a Business Name
Developing a business name that embodies
the purpose of your company isn't always a
simple task for a new business owner. You
have to consider how your potential
customers will perceive your business
based on the name.
You also have to think about whether the
name will fit in a website URL address.
Some business owners choose to hire
expensive professional naming firms to
develop ideal business names, but to avoid
that cost you can brainstorm names yourself
by analyzing your marketing focus.
How to name a business?
1. Make it short.
2. Make it memorable
3. Make it pronounceable.
4. It should be easy to spell a single way.
5. It should be “descriptive” or “brandable.”
6. Don’t use hyphens.
7. Go for a .com extension.
To improve your chances of an
extraordinary identity:
1. Research your competitors
2. Don’t use your own name.
3. Don’t be too descriptive.
Why need a trademark?
Choosing a title that you can trademark
means that you’re less likely to run into legal
issues when you first launch your company.
What’s more, you can rest assured that
other people won’t be able to come and
steal your hard-earned identity. Once your
business name is trademarked, it will be
yours alone to use and brand. If anyone
else tries to swoop in and access your
name in the future, you’ll be within your
rights to take legal action.
Unique business name ideas also come
with the benefit of a completely focused and
dedicated audience. You won’t be sharing
your community with a group of people who
stumble onto your website while looking for
another organisation. The people who find
you will be the consumers that genuinely
want to connect with your brand. While you
might not get as much traffic straight away
as a company that uses a generic term, like
“Barry’s Computers,” the prospects that do
find you will be the ones with the most value
to offer.
The value of individuality is why it’s so
important to perform the right due diligence
with your list of unique business names.
Make sure that the title you’re investing in
doesn’t just come with an available .com
domain. It also needs to be open to
trademarks in your local area, and any other
market you’d like to sell in.
LESSON 7 - The Business World
Trade mark
A distinctive name, mark, symbol or motto
identified with a company’s product
registered at the Intellectual Property Office.
Intellectual Property Office of the
Philippines (IPO)
The most relevant trade mark authority in
the Philippines.
RA 8293
Known as “Intellectual Property Code of the
Philippines.”
The relevant trade mark legislation.
Provides the legal framework for intellectual
property protection in the Philippines.
It came into effect on January 1, 1998.
Trademark Infringement
Unauthorize use of a registered trademark
or a copy or a colorable imitation thereof,
resulting in likelihood of confusion among
the public.
What can be registered as a trademark?
Any visible sign capable of distinguishing
the goods (trademark) or services (service
mark) of an enterprise, including a stamped
or marked container of goods, may be
registered.
What cannot be registered as a
trademark?
● A mark cannot be registered if it:
● Consists of immoral, deceptive or
scandalous matter, or matter which
may disparage or falsely suggest a
connection with persons (living or
dead), institutions, beliefs or national
symbols, or bring them into
contempt or disrepute.
● Flag or coat of insignia of the
Philippines or its subdivision
● Name, portrait, or signature of
particular individual without consent
from that person.
● Identical with the same existing
registered name belonging to a
different proprietor or mark.
● Likely to mislead the public,
particularly as to the nature, quality,
characteristics or geographical origin
of the goods or services.
● Consists of exclusively of signs that
are generic for the goods or services
that they seek to identify.
● consists of signs, shapes, color
alone defined by a given form.
Criminal Offenses/Action
A person found guilty in a criminal case for
trademark infringement, unfair competition,
and/or false designation will be imprisoned
for a term of two (2) to five (5) years, and
will be ordered to pay a fine ranging from
Php 50,000 to Php 200,000.
PATENT
● A grant from the government that
gives an inventor exclusive rights to
an invention
● Requirements:
○ Novel
○ Not Obvious
● Rights: An inventor has the right to
make, use, sell, assign or license the
invention during the duration of the
patent’s term. The first to invent has
patent rights.
● Duration: 20 years from the date of
application; for design patents 14
years.
Copyright
● An intangible property right granted
to authors and originators of a
literary or work or artistic production
that falls within specified categories.
● Requirements: Literary or artistic
works must be :
○ Original
○ Fixed in a durable medium
that can be perceived,
reproduce or communicated
○ Within a copyrighted
category
● The author or originator has the
exclusive right to reproduce,
distribute, display, license or transfer
a copyrighted work.
● Duration:
○ Authors 🡪 lifespan of 70
years
○ Publishers 🡪 95 years after
the date of publication or 120
years after creation.
Components of New Venture Motivation
1. Need for approval
2. Need for independence
3. Need for personal development
 4. Philantrophic (welfare) consideration
5. Perception of wealth
6. Tax reduction and indirect benefits
7. Following role models
PITFALLS IN SELECTING NEW
VENTURES
A. Lack of objective evaluation
Trained people are particularly prone
to fall in love with an idea for a
product or service. They seem
unaware of the need for scrutiny
they would give to a design or
project in the ordinary course of their
professional work.
B. No real insight into the market
Many entrepreneurs don’t realize the
importance of developing a marketing
approach in laying the foundation for a new
venture. They show a managerial
shortsightedness. Also, they do not
understand the life cycle that must be
considered when introducing a new product
or service.
C. Inadequate understanding of
technical requirements
The development of a new product often
involves new technique. Failure to anticipate
the technical difficulties related to
developing or producing a product can sink
a new venture.
D. Poor Financial Understanding
A common difficulty with the development of
a new product is an overly optimistic
estimate of the funds to carry the project to
completion. Sometimes entrepreneurs are
ignorant of costs or are victims of
inadequate research and planning.
E. Lack of Venture Uniqueness
A new venture should be unique.
Uniqueness refers to the special
characteristics and design concepts that
draw the customer to the venture, which
should provide performance or service that
is superior to that of competitive offerings.
F. Ignorance of Legal Issues
Business is subject to many legal
requirements. One is the need to make the
workplace safe for all of the employees.
Secondly, is providing the reliable and safe
products and services. Thirdly, the need for
patents, trademarks, and copyrights to
protect one’s intentions and products. When
these legal issues are overlooked, major
problems can result.
FRANCHISING: THE HYBRID
● Considered as one form of business
that incorporates some of the
independence of an entrepreneur
with the larger umbrella of a
corporation is the franchise. Thus, it
is considered as “hybrid” form of
entering business. Today, more than
a third of all retail sales and an
increasing part of the GDP are
generated by private franchises.
● A franchise is any arrangement in
which the owner of a trademark,
trade name or copyright has
licensed others to use it in selling
goods or services.
● A franchisee (a purchaser of a
franchise) generally is legally
independent but economically
dependent on the integrated
business system of the franchisor
(the seller of the franchise).
How franchising works?
Types of benefits and assistance:
● The company name
● Identifying symbols, logos, designs
and facilities.
● Professional management training
for each independent unit’s staff
● Sale of specific merchandise
necessary for the unit’s operation at
wholesale prices.
● Financial assistance
● Continuing aids and guidance to
ensure that everything is done in
accordance with the contract.