Professional Documents
Culture Documents
Chapter 3
The Entrepreneurial Process
LEARNING OUTCOME
ACTIVITY 1
Word Search. Look for the eight (8) possible environment forces in the box
where entrepreneurial ideas could arise from.
25
Entrepreneurial Process
You need to consider your hobbies, consider consumers’ needs and wants,
conduct surveys and questionnaires – test the market, and study demographics
and market research.
FINDING GAPS IN
OBSERVING SOLVING A THE MARKET
TRENDS PROBLEM PLACE
Will I go public?
f. Employees
For example, one factor in the physical environment that may dramatically
change is the climate. The temperature is very high during summer but very low
during the rainy season. A person with an entrepreneurial drive can be very
creative and innovative in identifying entrepreneurial opportunities based on the
given environmental change. He/She can open a business venture that responds to
the needs of the people during the summer and the rainy period.
The priorities, projects, programs, and policies of the government are also
good sources of entrepreneurial ideas. The term government in this lesson refers
to the local government (municipality, city, or provincial) or the national
government and its branches.
D. PEOPLE’S INTERESTS
E. PAST EXPERIENCES
For example, an auditor who has learned the appropriate auditing and
management advisory skills and techniques in a prominent auditing firm can start
his/her entrepreneurial venture by opening his/her own auditing office. In a
similar manner, a good engine mechanic who has worked in a leading car
manufacturer may find it appropriate to open his/her vehicle repair shop. Thus,
his/her relevant job experiences in the past can lead to that entrepreneurial
venture.
ACTIVITY 2
Activity 1: IDEATION
Name: Its All in the Mind
Time Allotted: 30 minutes
Objective: At the end of the activity, the learner is expected to generate at least
10 business ideas (2 ideas from each identified source of entrepreneurial ideas)
and propose at least two profitable business ventures from these ideas.
Instructions:
Let your imagination run and simply list all the possible ideas you can
think of. Let’s limit these ideas to business ideas for now, shall we? As much as
possible, think of the business ideas that you believe are not yet in existence. Just
go ahead and list these ideas. Try filling the list up to ten.
34
Name: Score:
Course and Year: Date:
BUSINESS IDEAS
10
If you are through with the list, go over it again and make sure these ideas
are not yet in existence. Keep in mind, we would want to focus on something
new.
Patents
There are three main types of patents of which the entrepreneur must
learn about how to protect a business idea in these circumstances:
Patents
There are three main types of patents of which the entrepreneur must
learn about how to protect a business idea in these circumstances:
3. Plant Patents- these patents cover asexually reproduced and distinct plant
varieties. For example, plant patents cover hybrid tea roses, as well as
Better Boy Tomatoes
38
Trademarks
As a brand name, most inventions have two names- a brand name and a
generic name. For example, think about coca-cola. You may know it as Coke-
the brand name, but its generic name is soda or pop. It is important for new
inventions to be given both a brand name and a generic name. That way people
identify it generically and associate the brand with quality and desire to purchase.
1. Fanciful – new words that had no meaning before their use as a trademark.
Example: Starbucks, Verizon, Cingular, Exxon
2. Arbitrary – common words used so that their original meaning has no
relationship to the goods or services to which they are applied.
39
Copyright
Copyright is the legal right granted to a creator of an original work of
authorship to control publication, production, sale, or distribution of it, including
literary, dramatic, musical, artistic, and certain other intellectual works.
Think about the word itself – “copy” with “right”. The owner has the right
to decide how or if the creation is going to be copied.
Trade secrets
ACTIVITY 3
Instructions:
Develop a trademark name for your identified business idea. Select a
category for your trademark. Do you want to go completely new and original, or
suggestive or descriptive? Also, develop a generic name to describe your product.
Finish up by designing a logo (or slogan or jingle).
Trademark Name:
Generic Name:
Aside from spending time coming up with a name for your new business,
you also need to register it with the Department of Trade and Industry (DTI), if
you’re a sole proprietor.
Business Name (BN) shall refer to ANY name that is different from THE
TRUE NAME OF AN INDIVIDUAL WHICH IS USED OR SIGNED in
connection with her/his business on any written or printed receipts, including
receipts for business taxes, duties and fees, and withdrawal or delivery receipts;
any written or printed evidence of any agreement or business transaction; and any
sign or billboard conspicuously exhibited in plain view in or at the place of
her/his business or elsewhere, announcing his /her business.
In short, securing your trade name will guarantee you the legal and
exclusive right to use it within its validity period (renewable every five years).
This means no other business can register or use your business name in the
barangay, city or municipality, region, or country, depending on your business
location coverage.
43
However, note that business name registration with the DTI is only for sole
proprietors and not a license to run a business (You’ll need to secure a business
permit and other related documents for that purpose).
To make the process a lot faster and easier, follow these guidelines from
the DTI Business Name Registration System when deciding on your proposed
business names: Hence, it is your responsibility to ensure that your proposed
Business Name is:
● not a term or word or group of words that connote activities or norms that
are unlawful, immoral, scandalous or contrary to propriety (e.g. Boobs
Massage & Spa);
● not a name, words, terms or expressions used to designate or distinguish,
or suggestive of quality, of any class of goods, articles, merchandise,
products or services;
● not those that are registered as trade names, trademarks, or business names
by any government agency authorized to register names or trademarks;
● not a name that is inimical to the security of the State;
● not composed purely of generic word or words (e.g. The Drugstore, Health
Care Clinic);
● not a name which by law or regulation is restricted or cannot be
appropriated (e.g. Red Cross, Red Crescent, ISIS);
● not officially used by the government in its non-proprietary functions (e.g.
NBI Private Investigation Services, PNP Security Agency);
● not a name or abbreviation of any nation, inter-governmental or
international organization unless authorized by competent authority of that
nation, inter-government and international organization;
● not ordered or declared by administrative agencies/bodies or regular courts
not to be registered;
● not a name of other persons; and
● not deceptive, misleading or misrepresent the nature of my business.
44
Foreigners, refugees, and stateless people who apply for DTI business
registration online still need to submit the documents listed above at any DTI
office. There’s also a business name registration fee that varies per business
territorial scope:
● Barangay – PHP 200
● City/Municipality – PHP 500
● Regional – PHP 1,000
● National – PHP 2,000
Starting February 2019, all applications for DTI business name registration
should be filed through the Business Name Registration System (BNRS). No
need to visit a DTI office to get a Certificate of Business Name Registration.
Here are the steps to register your business name online through the
BNRS.
4. Pay the business name registration fee within five calendar days from the
online application date. You can pay at the DTI office or Negosyo Center
indicated in your Transaction Reference Number (TRN) acknowledgment
form. For convenience, make your online payment immediately during
your DTI business registration via Gcash. If you have a Gcash account,
just enter your mobile number in the Payment Details section.
5. Claim your Certificate of Business Name Registration at the nearest DTI
office or download it for printing.
Keep your business name document because it’s one of the most important
documents you need to register your business at the municipal office and the
Bureau of Internal Revenue (BIR).
ACTIVITY 4
Instructions:
SYNTHESIS
1. As a future entrepreneur, always remember that a business must be firmly
established on existing business opportunities and that there can be no
business opportunities in the absence of an entrepreneurial idea. The ability
to come up with a business idea can be transformed into a viable business,
where ideas supported by feasibility and a business plan can then be sold to
interested investors, firms, and interested parties for a lump sum or a
management contract, or as agreed. Business ideas are always available
through different sources.
Here are the requirements for you to be eligible to apply for DTI
business name registration at least 18 years old (Foreign nationals aged
below 18 must submit proof that they come from a country where the legal
age is lower than 18.)
○ Filipino citizen
○ Foreign national with a Certificate of Registration of Sole
Proprietorship/Certificate of Authority to Engage in Business in the
Philippines
○ Refugee or stateless person
49
All applicants (except for those filing their application online) must
download, print, and fill out two copies of the Business Name Registration
Form[1] and present two valid IDs.
Assessment
I. TRUE OR FALSE.
Direction. Determine whether the statement is TRUE or FALSE. Write
TRUE if the statement is correct and write FALSE if otherwise. Write your
answer before the number.
________1. The first basic skill an entrepreneur needs is her ability to identify
entrepreneurial opportunities.
________2. New business ideas provide business opportunities.
_______ 3. The variables in the physical environment include the technological
environment.
______ 4. Interests and hobbies of the people are possible good sources of
entrepreneurial ideas.
_______ 5. Discovery and advancement in the use of technology are not a good
source of entrepreneurial ideas and opportunities.
50
II. MULTIPLE CHOICE. Select the best answer. Encircle the letter of chosen
answer.
1. It is a common word used so that their original meaning has no relationship to
the goods or services to which they are applied.
a. trade mark c. business name
b. brand name
b. trade secret
6. It refers to the creations of the mind.
a. property right c. intellectual property right
b. copyright
7. It is an entrepreneurial process which begins with idea generation wherein the
entrepreneur identifies and evaluates the business opportunities.
a. discovery c. harvesting
b. concept development
9. A step in the entrepreneurial process where the entrepreneur finds the investors
for the new venture and the personnel to carry out the business activities.
a. resourcing c. harvesting
b. concept development
10. Under the 1976 Copyright Act, notice of copyright consists of three elements:
________________________11.______________________
12._____________________
13. Most inventions have two names: _____________________ and
14.______________________.
15. DTI stands for _______________________________________________.
52
ASSESSMENT
Column A Column B
1. A concept which can be used for commercial A. Patents
purposes.
2. Grants property rights to an invention, new B. Business Name
products and innovative processes.
3. It stands as emblems of a company’s reputation. C. Trade secrets
4. A legal right granted to a creator of an original D. Trademarks
work of authorship to control publication,
production, sale or distribution of it, including
literary, dramatic, musical, artistic, and other
intellectual works.
5. It includes formulas, patterns, plans, designs, E. Copyright
physical devices, software, and “know-how.”
6. Refers to any name that is different from the F. Fanciful
true name of an individual which is used or
signed in connection with his/her business.
7. New words that had no meaning before their G. Business idea
use as a trademark
8. These patents protect new, original and H. Design patents
ornamental design for manufactured items.
9. Identifies a type of product or service without I. Generic
indicating any particular manufacturer or
source.
53
UNLOCKING DIFFICULTIES
To check your prior knowledge about the topic, below is the Know-Want
to Know-Learned (KWL) Chart. For the Know part, you may write words or
phrases;
for the Want to Know, you may state your responses in question form. List as
many responses as you can for each part. Write your answer on a white pad
paper.
KWL Chart
Topic Know Want to Know Learned
(What do I (What do I want (What did I
Know?) to find out?) learn)
Creating a sound
business idea
The importance of
protecting
business ideas.
Applying for
registration of the
name of the
business
54