Entrepreneurial Mind

MA . CHRISTINA L. ABRAHANO, MBA

JAMESON BAGAY, MBA , PRINCE2 ® , ITILv3, SMAC ®
“It’s one small step for man, one
giant leap for mankind.”

- NEIL ARMSTRONG
LO10:Identify various sources of
ideas for new ventures.
Coming up with new and feasible business
ideas is a crucial initial step to becoming a
great entrepreneur. For this reason, there
are several multi-billion entrepreneurs
across the world with testimonies and proof
that they started off with an idea and
developed gradually into a thriving
business. The real-life scenarios have
grown to become the some of the greatest
sources of business ideas and
opportunities for both young and
established entrepreneurs and can work for
anyone with the desire to join the
entrepreneurship world.
 Top 7 sources of business ideas and
opportunities for entrepreneurship that can lead
you to a successful business.
1. Interests and hobbies
A hobby is an activity that you enjoy doing during
your leisure-time and is one of the primary sources of
business ideas. In fact, most people have founded
great successful businesses while pursuing their
interests or hobbies. For instance, if you enjoy
traveling, playing with computers, music, sports,
performing or cooking, you can seamlessly develop it
into a business. You can join the tourism,
entertainment or hospitality industry by venturing
deeper into your favorite activity. These are just a few
suggestions since there are lots of leisure activities
that can lead you to the world of successful
entrepreneurship. Just consider what you are good
at, and you are ready to go.
 Top 7 sources of business ideas and
opportunities for entrepreneurship that can lead
you to a successful business.
2. Customer surveys

The starting point of any new business should be the clients

because their needs and wants justify the service or product that
you can offer to them. The wants and needs of the customers
are, therefore, the sources of business ideas generation and you
can ascertain them by carrying out a thorough survey.

You can conduct such a survey, whether formally or informally,

through questionnaires, interviews or observation as you list the
sources of business ideas that work best for you. While carrying
out the surveys, you can talk with your friends and family to
discover what the potential customers need, yet it is not readily
available to them.

They may not be contented with the existing service or product

and need improvement. In this case, you can step in and talk with
the people in the distribution chain including wholesalers,
retailers, manufacturers, agents, and distributors. It is essential
to prepare the questions in advance that you can use in
interviews or put on the questionnaires.
 Top 7 sources of business ideas and
opportunities for entrepreneurship that can lead
you to a successful business.
3. Brainstorming and Dreams

Here are the rules that will help you when brainstorming for
different sources of business ideas:

1. Never judge or criticize the ideas and suggestions of

others

2. Encourage freewheeling and invite crazy or wild ideas

3. Quantity is paramount where the more the number of

ideas, the better

4. Combine and develop the ideas that friends and

colleagues give you

5. Never procrastinate Read

 Top 7 sources of business ideas and
opportunities for entrepreneurship that can lead
you to a successful business.
4. Franchises
◦ A franchise is a situation where a sole trademark
distributor or manufacturer of a product gives
exclusive rights to independent retailers for local
distribution. This is done in return for the
consistency of the retailers to the set operating
procedures and payment of royalties.

As one of the sources of business ideas for

entrepreneurs, franchising can take different
forms but the most common and preferred one
is where you are offered the image, operating
procedures and the name of an established
business. Besides buying a franchise, you can
also build on and sell its concept at a profit.
 Top 7 sources of business ideas and
opportunities for entrepreneurship that can lead
you to a successful business.
5. Mass media
❖The mass media; including television, newspapers, Internet, radio,
and magazines are a great source of ideas, information, and
opportunities.

One way to become a successful entrepreneur is taking a careful look

at the advertisements and commercials in these media.

By reading a magazine or newspaper, you can easily come across a

business for sale that interests you. These media can also report on
the trending fashion and pressing customer needs that you can jump
on and start a business.

While traditional media including television, radio, and newspapers

have been great sources of ideas to run new business, the Internet
has emerged as the latest information technology with instant
millions of ideas. With just a click of a button on your computer or
phone, you can get the best idea that will work perfectly according to
your interests and locality. Starting a successful business has never
been this easy!
 Top 7 sources of business ideas and
opportunities for entrepreneurship that can lead
you to a successful business.
6. Personal experience and talents

Most of the ideas and opportunities for successful businesses are a result
of the experiences in the place of work.

As a potential entrepreneur, therefore, you can make the most use of your
skills and experiences as crucial sources of business ideas generation.
They also determine the type of venture that you start as you capitalize on
them. If you are gifted or have experience in a specific field, then it is time
to analyze just talent or skills.

You can start off with the following self-examination questions:

What am I passionate about?

What talents or skills do I possess?

Are people willing to pay me for my skills?

What do I need to build on my skills?

 Top 7 sources of business ideas and
opportunities for entrepreneurship that can lead
you to a successful business.
7. Trade fairs and exhibitions
Trade fairs and exhibitions are among the top sources of
developing business ideas. They are usually advertised
on the Internet, radio, and newspapers, and by attending
such events regularly, you will discover new services and
products.
You will also meet with manufacturers, sales
representatives, distributors, wholesalers, and
franchisers who will answer all your questions and inspire
you to start a business that will thrive.
In fact, some of them may be in need of someone like
you to partner with, and this will be an exceptional
opportunity to partner with renowned entrepreneurs and
franchisers
 LO11: Discuss creativity and the
techniques for creative problem solving.
“Critical thinking...the awakening of the
intellect to the study of itself.”

Critical thinking is the intellectually

disciplined process of actively and
skillfully conceptualizing, applying,
analyzing, synthesizing, and/or
evaluating information gathered from, or
generated by, observation, experience,
reflection, reasoning, or communication, as
a guide to belief and action.
(Please watch the video)
 LO11: Discuss creativity and the
techniques for creative problem solving.
 STARTING A BUSINESS
(LO12:Describe the process that one should follow to setup an enterprise)

At the end of this chapter, the student will be able to:

1. Discuss the factors to consider in starting a business;

2. Explain how the entrepreneur can identify business opportunities;

3. Explain the types of businesses available to entrepreneurs; and

4. Discuss the government support available and legal requirements needed to start a business.
(Source- Edralin, D. M. (2015). Women entrepreneurship studies in the Philippines: an inventory. Manila: De La Salle University
Publishing House.)
LO12:
STARTING A
BUSINESS
Before you start putting up a
business, here are some tips you
can learn.

Just click the video

LO13: Factors to Consider in Starting a Business

Focus and
Direction

Sources of
Capital

Good Legal
Network Requirements

Degree of Research and

Risk Development
Other
Critical
Personal Availability of
Competencies Resources
Factors for
New
Venture
Best Advice to Small Business Owners
Business Planning
LO14:Discuss the importance and structure of a business plan
LO15: Illustrate how to Create a Business Plan
Organizing MSME
 Definition

Any business activity/enterprise engaged in industry, agri‐business/services,

whether single proprietorship, cooperative, partnership, or corporation whose
total assets, inclusive of those arising from loans but exclusive of the land on
which the particular business entity's office, plant and equipment are situated.

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 Forms of Business Organization
Sole Proprietorship
◦ is a business that is owned and operated by one person. There are no legal
requirements to establish a sole proprietorship.

Advantages Disadvantages
Independence Unlimited liability
Easy to set up Limited resources
Easy to close Limited skills
Tax Benefits Lack of continuity

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 Forms of Business Organization
Partnership
◦ an association of two or more persons to carry on as co-owners of a business for
profit.

Advantages Disadvantages
Pooled talent Unlimited liability
Pooled resource Potential for management
conflict
Easy to form Less independence than
proprietorship
Tax Benefits Continuity or transfer of
ownership

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 Forms of Business Organization
Corporation
◦ is a business that has the legal rights of a person but is independent of its owners.
◦ A share of stock is a unit of ownership in a corporation.

Advantages Disadvantages
Limited liability Expensive to start
Increased access to resources Complex to maintain
Transfer of ownership Double taxation

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Definition
Board of Director
◦ A group of people who meet several times a years to make important decisions
affecting the company.

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Role of Board of Directors
It acts as the Trustee of Shareholders – The director’s act as representatives
of shareholders and work with utmost faith and degree of honesty in
protecting long term aims of wealth maximization of company.

• Determining the fundamental objectives and policies – The board of

directors play vital role in long range planning and set the overall goal of
the company within the framework.

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Role of Board of Directors
Approving financial matters – These financial matters relate to two things
namely, approval of budgets and distribution of the corporate earnings.

• Maintaining adequate checks and controls – In the final analysis, the board
of directors is held responsible for the result of the company.

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 MSMEs Categories
By Asset Size
◦ Micro: Up to P3,000,000
◦ Small: P3,000,001 ‐ P15,000,000
◦ Medium: P15,000,001 ‐ P100,000,000
◦ Large: above P100,000,000

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 MSMEs Categories Cont…
• By Employee Size
➢ Micro: 1 – 9 employees
➢ Small: 10 – 99 employees
➢ Medium: 100 – 199 employees
➢ Large: more than 200 employees

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Overview of
Philippine
MSMEs
Overview of
Philippine
MSMEs
Distribution of MSMEsby region
Overview of
Philippine
MSMEs
Distribution of MSMEsby employment
 Overview of Philippine MSMEs
*Others include:
-Agriculture, Forestry and Fishing
- Mining and Quarrying
-Electricity, Gas, Steam and Air
Conditioning Supply
-Water Supply; Sewerage Waste
Management and Remediation
Activities
- Construction
- Transportation and Storage
- Real Estate Activities
- Professional, Scientific and Technical
Activities
-Administrative and Support Service
Activities
- Education
- Human Health and Social Work
Activities
- Arts, Entertainment and Recreation
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Distribution of MSMEs by industry
 Initiatives that Help Boost MSMEs
Strategies:
(1) Promoting a Business Enabling Environment
(2) Enhancing Accessto Finance
(3) Enhancing Accessto Markets
(4) Improving Productivity and Efficiency

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 Business Environment
Magna Carta for Micro, Small and Medium
Enterprises One of the main provisions of the
Magna Carta is the creation of the Micro, Small
and Medium Enterprise Development (MSMED) Council.
Members: DTI, DA, DILG, SB Corp., representatives
from the MSME, women, and youth sectors

Advisory Unit: Secretary of DOST, Governor of BSP,President of LBP,

President of DBP, Director- General of NEDA, President of CIC,
representatives from the labor sector, private banking sector,
microfinance NGOs, and UP ISSI

Task Forces: Inclusive Finance, Integration of Services, E-commerce,

Global Value Chains

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 Business Environment
R.A. 9178: Barangay Micro Business Enterprise (BMBE) Act
It encourages the formation and growth of BMBEs (or micro
enterprises) by granting them incentives and other benefits
(i.e., exemption from income tax, exemption from minimum wage).
Qualified to register:
• Enterprise with asset size of up to Php3M
• Enterprise engaged in production, processing or manufacturing of products,
including agro- processing
• Enterprise engaged in trading
• Enterprise engaged in services, excluding those rendered by anyone, who is
duly licensed by the government after having passed a government licensure
exam, in connection with the exercise of one’s profession (e.g., accountant,
lawyer, doctor, etc.)

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 Business Environment
R.A. 10644: Go Negosyo Act
Promotes “ease of doing business and facilitate 1087
accessto services for MSMEs” through the Negosyo Negosyo Centers
launched
Centers (as of Sep 2019)

• Businessregistration assistance Luzon - 517

• Businessadvisory services Visayas - 267
• Businessinformation an advocacy Mindanao - 296
• Monitoring and evaluation

Davao del Norte Butuan

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 Business Environment

Philippine Business Registry

The system allows sole proprietorships
to register their business names with
DTI, get or validate their existing tax
identification number (BIR), and
employer registration numbers (SSS,
Philhealth and Pag-Ibig) through the
web-based DTI Tellers.

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Access to Markets
Trade Fairs and Expo’s

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Productivity and Efficiency
SME Roving Academy
It is a continuous learning program for the development of MSMEsto
enhance competitiveness and increase contribution to the country’s
GDP and total employment.

Skills Training on Skills Upgrading

How to Start a 2015 Adivay Product
Finishing for Bamboo Training on Meat
Business| Masinloc, Development Booth | La
Products and Furnishing Processing | Cervante, Trinidad, Benguet
Zambales
| Caba, La Union IlocosSur 1–38
Business Model
Canvass
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MODEL
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 THANK
YOU!!!

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 References

http://www.dti.gov.ph/dti/index.php?p=532
https://www.dti.gov.ph/resources/msme-statistics/
http://www.dict.gov.ph/wp-content/uploads/2016/07/8.-SMEs-in-the-Philippines-_Empowering-
LGUs-through-ICT-Partnership-with-SUCs.pdf
Small Business Management Entrepreneurship and Beyond. 5e Hatten.
Entrepreneurship Ideas in Action. Cynthia L. Greene
http://www.entrepreneur.com.ph/ideas-and-opportunities/article/how-smes-playan-important-
role-in-the-philippine-economy.
https://businesstips.ph/list-of-micro-business-ideas-in-the-philippines/
https://openstax.org/books/entrepreneurship/pages/6-2-creative-problem-solving-process

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