ENTREPRENEURSHIP

FOR

HIGH SCHOOL

(HOW TO ESTABLISH SMALL AND MEDIUM

ENTERPRISE IN THE PHILIPPINES)

Submitted by:

AVELLANO, MIA AYRA D.

BBTE 3-2

Submitted to:

PROF. SHERLY MORALES

Date Submitted:

October 22, 2010

 HOW TO ESTABLISH SMALL AND MEDIUM ENTERPRISE IN THE PHILIPPINES

WHAT THIS MODULE IS ABOUT

Hello! It’s nice to see you again, my dear students! I hope you will find this module
interesting. This module will be a new experience for you. It will help you to know what SMEs is
all about and its categories.
 WHAT YOU ARE EXPECTED TO LEARN

Define what is small and Medium Enterprise (SMEs).

Discuss how to establish Small and Medium Enterprises in the Philippines (SMEs).

Discuss the categories of Small and Medium Enterprise (SMEs).

Discuss the role and importance of Small and Medium Enterprise (SMEs) and its
contribution to the economy.

Discuss SMEs Development Plan 2004-2010.

HOW TO LEARN IN THIS MODULE

Entrepreneurship for High School Module focuses on preparing students especially 4th year
High School students to learn. The lesson is designed to develop managerial skills and
knowledge of the student’s career on how to establish Small and Medium Enterprises in the
Philippines in the near future.

You will be having activities and self check exercises to practice your capability and to
know if you have learned in the lesson.
 PRETEST

DIRECTION: Read each item carefully and select the best answer by
on the space provided below. 
________1. It is define as any business activity or enterprise engaged in industry,
commerce, agribusiness and services.

1. SMEs
2. MEs
3. MESs
4. MSe

________2. It is owned by single proprietorship, partnership and cooperation.

5. SMEs
6. MEs
7. MESs
8. MSe

________3. It is under the categories of SMEs.

9. Micro, Small, Medium, Large Enterprises

10. Sole proprietorship, partnership, cooperation
11. Planning, organizing, controlling
12. all of the above

________4. It is a home industries operated within the home or house in makeshift

quarters.

13. Micro Enterprises

14. Small Enterprises
15. Medium Enterprises
16. Large Enterprises
_______ 5. It is a category of SMEs that the managers of the business are not necessary
active in the production.

17. Micro Enterprises

18. Small Enterprises
19. Medium Enterprises
20. Large Enterprises

________ 6. It is a specialized manufacturing industry with equipment in order to

produce their products.

21. Micro Enterprises

22. Small Enterprises
23. Medium Enterprises
24. Large Enterprises

________ 7. It is already established and experts on their line of products and services.

25. Micro Enterprises

26. Small Enterprises
27. Medium Enterprises
28. Large Enterprises

________ 8. It is a category of SMEs whose member of employee is 1-9.

29. Micro Enterprises

30. Small Enterprises
31. Medium Enterprises
32. Large Enterprises

_________ 9.  It is a category of SMEs whose assets are more than Php.100 million.

33. Micro Enterprises

34. Small Enterprises
35. Medium Enterprises
 36. Large Enterprises

_________ 10. It is a category of SMEs whose assets are more than Php.15 million.

37. Micro Enterprises

38. Small Enterprises
39. Medium Enterprises
40. Large Enterprises

HOW TO ESTABLISH SMALL AND MEDIUM ENTERPRISE IN THE PHILIPPINES

SMEs (Small and Medium Enterprises) - as any business activity or enterprise engaged in
industry, commerce, agribusiness and services. It is owned by single proprietorship, partnership
and cooperation. It is the total assets, inclusive of those arising from loans but exclusive of the
land on which the particular business entity's office, plant and equipment.

CATEGORIES OF SMEs

Micro Enterprises - It is a home industries operated within the home or house in makeshift
quarters
Small Enterprises - It is a category of SMEs that the managers of the business are not necessary
active in the production.

Medium Enterprises - It is a specialized manufacturing industry with equipment in order to

produce their products.

Large Enterprises - It is already established and experts on their line of products and services.

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

Based on the number of employees

            Micro:                  1-9 employees           
Small:                  10 -- 99 employees           
            Medium:              100 -- 199 employees
            Large:                   More than 200 employees
Role and Importance of SMEs

 SMEs play a major role in the country's economic development through their contribution
in the following: rural industrialization; rural development and decentralization of
industries; creation of employment opportunities and more equitable income distribution;
use of indigenous resources; earning of foreign exchange (forex) resources; creation of
backward and forward linkages with existing industries; and entrepreneurial
development.

 They are vital in dispersing new industries to the countryside and stimulating gainful
employment. A country like the Philippines where labor is abundant has much to gain
from entrepreneurial activities. SMEs are more likely to be labor-intensive. Thus, they
generate jobs in the locality where they are situated. In this sense, they bring about a
more balanced economic growth and equity in income distribution.

 SMEs are quick in assimilating new design trends, developing contemporary products,
and bringing them to the marketplace ahead of the competition. SMEs tend to be far more
innovative in developing indigenous or appropriate technology, which may be grown
later into pioneering technological breakthroughs.

 They are able to effectively increase the local content or the value added in final goods
that are processed and marketed by large manufacturing firms.

 SMEs are notably skillful in maximizing the use of scarce capital resources and are able
to partner with large firms by supplying locally available raw materials in unprocessed or
semi-processed forms.

 Also, SMEs can act as the seedbed for the development of entrepreneurial skills and
innovation. They play an important part in the provision of services in the community.
They can make an important contribution to regional development programs.
SMEs' Contribution to the Economy

SMEs contribute to the creation of wealth, employment, and income generation,

both in rural and urban areas, thus, ensuring a more equitable income distribution. They
also provide the economy with a continuous supply of ideas, skills, and innovations
necessary to promote competition and the efficient allocation of scarce resources.

In the last five years, the SMEs sector accounted for about 99.7% of the registered
businesses in the country by which 70% of the labor force earn a living. Around 30% of
the total sales and value added in the manufacturing come from SMEs as well.

SME Development Plan 2004-2010 presents the integrated efforts to strengthen and stimulate
the micro, small, and medium enterprise (SMEs) sector so it can contribute significantly to the
country’s development. This Plan aims to make the sector a key factor in the country’s
economic growth by 2010.
 
The plan is designed to be carried out in three stages: roll-out, assessment of interim results, and
re-programmed implementation. It projects to increase the SMEs sector’s gross value added
contribution to 40% of aggregate by 2010. It also intends to make the sector a major contributor
to export growth, with exporting SMEs achieving a 16-% annual growth rate in export sales.
These are expected to come about mainly through the creation of globally competitive SMEs and
assistance extended to them in aggressively seeking new market and product opportunities.

To meet the issues and challenges of the sector, the Plan sets down the following strategies:

To enhance operations of the individual SME

1. Provide SMEs access to comprehensive and focused support for enhancing managerial
and technological capabilities, tapping business opportunities, and becoming competitive
in the local and international markets.
 2. Provide support for identifying and developing business opportunities through the
development of business ideas that promote the expansion and diversification of the
country’s industrial structure.

To assist priority industries

1. Strengthen support to the growth industries that are active in the international markets to
sustain and enhance their competitiveness and improve their access to the domestic
market.
2. Provide support for industrial linkages of SMEs with leading Philippine industries to
strengthen the country’s industrial structure.

To improve the SME operational environment

1. Develop SMEs financing support programs and strengthen the institutions that provide
direct and appropriate financial services to SMEs.
2. Streamline the systems that provide support programs and incentives for SMEs.
3. Streamline the implementation of SMEs policies and regulations.
4. Strengthen and build the capabilities of institutions that generate and implement
programs for SMEs development.

The SMED Plan was launched during the celebration of the 2004 SMED Week. In October 2005,
a proposal was submitted to and consequently approved by the German Technical Cooperation
(GTZ) and the Canadian International Development Agency (CIDA) for the funding of the
services of a consultant/facilitator who will professionally facilitate and document the
discussions of the activity groups. Following the said approval, the Bureau of Micro, Small, and
Medium Enterprises Development (BMSMED) conducted action planning and harmonizing
workshops for the activity groups under the plan.  

In formulating the SMED Action Plan, the lead agencies were assist/guid in clarifying the
specific gaps addressed by their programs and projects and the improved or desired situation
envisioned in their targets. The clarification of program targets resulted in the streamlining of the
activity groups from the original 48 to 10 groups as the similarities and differences in their
envisioned deliverables were sharpened.

The Plan has the following 4 outcome portfolios:

 Business and Investment Enabling Environment (BIEE);

 Access to Finance (A2F);
 Access to Market (A2M); and
 Productivity and Efficiency (P&E).

Now that you have learned a lot from our discussion, let us do the activity below.

ACTIVITY

DIRECTION: Cooperation is a must. The game is called “THE BOAT IS SINKING”.

TIME ALLLOTMENT: 1 minute

Words:

Micro - 3

Small - 5

Medium - 10

Large - 15
 You’re out in the
game.

The boat is sinking group

yourself into 3.
 Continue the game, the winner will
received a prize

How do you find the activity? Was it

interesting? Did you enjoy it?

Let us see if you have learned from the discussion. Answer the self check exercise below.

SELFCHECK

DIRECTION: Write true if the statement is true and false if the

statement is false.

____1. Micro Enterprises has 1 - 9 employees.

____2. Small Enterprises has P3, 000,001 - P15, 000,000.

____3. Large Enterprises is not already established and experts on their line of products
and services.

____4. Medium Enterprises is not a specialized manufacturing industry with equipment

in order to produce their products.

____5. Large Enterprises has more than 200 employees.

 ____6. SMEs provide the economy with a continuous supply of ideas, skills, and
innovations necessary to promote competition and the efficient allocation of scarce
resources.

____7. In the last five years, the SME sector accounted for about 99.7% of the registered
businesses in the country by which 70% of the labor force earn a living

____8. Around 30% of the total sales and value added in the manufacturing come from
SMEs as well.

____ 9. A country like the Philippines where labor is abundant has much to gain from
entrepreneurial activities.

____10. SMEs are quick in assimilating new design trends, developing contemporary
products, and bringing them to the marketplace ahead of the competition.

POST TEST

PRETEST

DIRECTION: Read each item carefully and select the best answer by on the space provided
below. 

________1. It is define as any business activity or enterprise engaged in industry, commerce,

agribusiness and services.

a. SMEs
b. MEs
c. MESs
d. MSe
________2. It is owned by single proprietorship, partnership and cooperation.

a. SMEs
b. MEs
c. MESs
d. MSe

________3. It is under the categories of SMEs.

a. Micro, Small, Medium, Large Enterprises

b. Sole proprietorship, partnership, cooperation
c. Planning, organizing, controlling
d. all of the above

________4. It is a home industries operated within the home or house in makeshift quarters.

a. Micro Enterprises
b. Small Enterprises
c. Medium Enterprises
d. Large Enterprises

_______ 5. It is a category of SMEs that the managers of the business are not necessary active in
the production.

a. Micro Enterprises
b. Small Enterprises
c. Medium Enterprises
d. Large Enterprises

 ________ 6. It is a specialized manufacturing industry with equipment in order to produce their

products.

a. Micro Enterprises
b. Small Enterprises
c. Medium Enterprises
 d. Large Enterprises

________ 7. It is already established and experts on their line of products and services.

a. Micro Enterprises
b. Small Enterprises
c. Medium Enterprises
d. Large Enterprises

________ 8. It is a category of SMEs whose member of employee is 1-9.

a. Micro Enterprises
b. Small Enterprises
c. Medium Enterprises
d. Large Enterprises

_________ 9.  It is a category of SMEs whose assets are more than Php.100 million.

a. Micro Enterprises
b. Small Enterprises
c. Medium Enterprises
d. Large Enterprises

 _________ 10. It is a category of SMEs whose assets are more than Php.15 million.

a. Micro Enterprises
b. Small Enterprises
c. Medium Enterprises
d. Large Enterprises

SELFCHECK
 DIRECTION: TRUE or FALSE.

____1. Micro Enterprises has 1 - 9 employees.

____2. Small Enterprises has P3, 000,001 - P15, 000,000.

____3. Large Enterprises is not already established and experts on their line of products
and services.

____4. Medium Enterprises is not a specialized manufacturing industry with equipment

in order to produce their products.

____5. Large Enterprises has more than 200 employees.

____6. SMEs provide the economy with a continuous supply of ideas, skills, and
innovations necessary to promote competition and the efficient allocation of scarce
resources.

____7. In the last five years, the SME sector accounted for about 99.7% of the registered
businesses in the country by which 70% of the labor force earn a living

____8. Around 30% of the total sales and value added in the manufacturing come from
SMEs as well.

____ 9. A country like the Philippines where labor is abundant has much to gain from
entrepreneurial activities.

____10. SMEs are quick in assimilating new design trends, developing contemporary
products, and bringing them to the marketplace ahead of the competition.
 KEY TO CORRECTION

PRETEST
1. A
2. A
3. A
4. A
5. B
6. C
7. D
8. A
9. D
10. C
SELFCHECK

1. True
2. True

3. False

4. False

5. True

6. True

7. True

8. True

9. True

10. True

EDITTED BY:

PROF. GINA SALMORIN

REFERENCES:

www.google.com

www.yahoo.com

www.wikipedia.com