Creating An Enterprise

Lesson 4
Learning Objetives
1. identify the three basic forms of business ownership
a. sole proprietorship
b. partnership
c. corporation
2. discuss the advantages and disadvantages of each of the three
basic patterns of business ownership
3. gain competence in making a business legal
4. generate a set of opportunities that respond to the needs of the
environment in terms of key needs, resources and trends
5. identify several opportunities that he can choose from in thinking of a
business idea
6. decide on a business oppotunity to work on
7. realize the importance of environmental screening
8. apply the knowledge acquired in managing a simple business
Identifying Business Opportunities in the Environment

Start Up- means creating new business

from scratch or from zero.
Sources of Product Ideas
1. chance happening
2. personal interest or hobby
3. friends and relatives
4. family business
5. Suggestions
6. Education or courses
7. Prior work experience
8. research and development
9. creative problem solving
10. focus group discussions
11. brainstorming
12. problem inventory analysis
13. other means
• Improvements on Existing Products
– improving an existing product or service
renders it new
– changing the presentation of the product also
makes it new
– changing the package is another way of
introducing a new product
• Spotting Opportunities
market need
location
hobby of the people
available materials in the community
your interest and know-how
• Ways of going into Business
1. start a new business
2. buy an existing business
3. take over a family business
4. buy a franchise
• Opportunities for Business
– in the Philippines free enterprise system, any
person is free to go into business.
– Entrepreneurs are called energizers of small
business.
Environmental Scanning

-An analysis of the environment is done to

determine what approach to use in the
conduct of business.
-Strategy is the way by which goals are
attained.
-To determine what strategy to use, a SWOT
analysis is made.
Strenghts
• owner of commmercial unit
• tasty chicken recipe
• poultry farm owner
Opportunities
• heavy pedestraina traffic
Weaknesses
• lack of experience in business
Threats
• Strong Competition
• An ongoing business planning should include planning for the
functional areas or business such as:
1. operations
a. buying and selling
b. manufacturing
c. service
2. marketing
3. finance
4.human resource management
5. accounting
6. computer information system
Unit 8 - Global Opportunities
• Ways of Going Global

Franchising

Opening Branches

Partnership

Exporting
Exactly How Does a Company Go
Global
• Exporting- this means selling products to another
country. Prices are in foreign currency.
• Partnership-entering into an agreement with a foreign
company to do business in that country would be
beneficial to the local entrepreneur.
• Franchising- this is being practiced by big foreign
corporations by allowing their company's name to be
used by local entrepreneurs to give their business a
global reputation.
• Branch opening- is also an expensive venture especially
for start-ups.
Connecting with Foreign Buyers/Partners

• Travel
• Trade Fairs
• Government agencies
• through friends
• the internet
Obstacles to Globalization
• Language barrier
• laws
• currency fluctuation
• political climate
• tariff or taxes
• fortuitous events
• peace and order
• regional trade alliances
Factors that Drive Entrepreneurs to Go
Global
• Cutting Costs
• Competition
• Availability of Resources
• Market growth
Forms of Organization

1. Sole Prpprietorship
2. Partnership
3. Corporation
PARTNERSHIP
Advantages Disadvantages
1. easy to form 1. unlimited liability of the partner for
the debts of the partnership
2. subject to less government 2. limited term of existence
requirements
3. suited to the practice of a profession 3. limited capital
4. some are exempted from income
tax
5. flexibility of operations
SOLE PROPRIETORSHIP
Advantages
1. easy to form
2. less government requirements
3. fast decision making
4. flexibility of operations
5. suited to small business
Disadvantages
1. limited source of capital
2. life of business may be dependent
on the life of the owner
3. management that may be limited to
the capacity of the owner
CORPORATION
Advantages
1. capacity as a legal entiry
2. practically unlimited life
3.limited liability of stockholders for
crporate debts
4. wider sources of capital
Disadvantages
1. activities limited by the articles of
incorporation and corporate by-laws
2. possibility of abuse of powers of
officers
3. subject to more governmental
requirements
• Articles of Co-Partnership
• Articles of Incorporation of a Stock
Corporation
• Registering a Business
– www.dti.gov.ph
Registering the Sole Proprietorship
Registering Partnership and Corporation
Registering with Other Agencies
• Thank YOU for your kind
listening!
• God Bless!