WEEK 1

_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

GENERAL INSTRUCTIONS: Read the specific directions carefully before answering the exercises and
activities. Accomplish this module on or before your teacher’s specified date. For online
consultations, please refer to the given schedule.

ESSENTIAL Learning Purposes: At the end of this lesson, I am expected to:

M: Discuss what is entrepreneurship, types of enterprises and contribution of
entrepreneurship to employment,
A: Explore job opportunities for Entrepreneurship as a career, and
What do I T: Solve real-life problems dealing with entrepreneurship
need to
A: Enumerate the importance of entrepreneurship,
know?
M: Discuss the development of the Philippines and the state of economy,
A: Explore the role of government in entrepreneurship, and
T: Solve real-life problems dealing with Philippine development, role of
government in entrepreneurship and the importance of entrepreneurship.

Before going further, let us see if you can answer this exercise. I know you can do
it! This will help you to determine your prior knowledge about this topic. Good luck!

What I know?
REVIEW

PICTURE ANALYSIS: Write an essay on how you interpret Entrepreneurship by

basing your ideas on the picture presented.

_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
HOLY TRINITY COLLEGE OF GENERAL SANTOS CITY | SENIOR HIGH SCHOOL PROGRAM 1
_____________________________________________________________________________________
ENTREPRENEURSHIP | APPLIED SUBJECT FOR ABM, HUMSS, STEM and TVL
_____________________________________________________________________________________
 Write an essay on how you interpret Development of economy by basing
your ideas on the pictures presented.

_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________

_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________

_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________

Entrepreneurship is a phenomenon or reality that has already become a buzzword in

the lives of most Filipinos. Entrepreneurship has been hailed as one of the tools to fight
poverty. Entrepreneurship is defined as the ability to be able to know what products
and services are needed by people, and be able to provide these things at the right
time, at the right place, to the right people and at the right price.
It is the process of using resources effectively and transforming them into profitable
venture. In simple terms, entrepreneurship is both an art and science of converting
ideas into marketable goods and services to improve man’s quality of life.
✓ Does Entrepreneurship Always Involve an Opportunity?
Entrepreneurship happens when a person identifies an opportunity and being
able to build on it where he can make a profit.
✓ Does Entrepreneurship Always Involve Something New?

HOLY TRINITY COLLEGE OF GENERAL SANTOS CITY | SENIOR HIGH SCHOOL PROGRAM 2
ENTREPRENEURSHIP | APPLIED SUBJECT FOR ABM, HUMSS, STEM and TVL
 Usually, entrepreneurship involves introducing something new or novel. But this
novelty can be found in many forms- some may involve very dramatic changes,
while others can be small or subtle modifications. The concept of introducing
something new is called innovation. Innovation is defined as a new method,
idea, or product. To innovate means to be able to translate an idea or invention
into a good or service that has commercial value.
✓ What are Some Types of Enterprises?
a. Enterprises According to Concept
New concept- this means creating on a new idea or concept, and creating or
inventing something radically new. The inventor then builds a new business for
this product.
Existing concept and a new business- this means creating a new business with
new offering but based on existing concept of others such as Jollibee and
Mang Inasal.
Existing concept and existing business- this means creating an existing business
based on existing concept such as Franchising or setting up branches.
b. Enterprises According to Size

Micro-enterprise- businesses with

total assets of less than or up to
Php 3,000,000 and employ less
than 10 people.
Some examples of micro-
enterprises are sari-sari stores, a
food stall, a watch repair stall,
and a meat stand in the public
market.
Small enterprise- are those
businesses with total assets
amounting Php 3,000,001 – Php
15,000,000 and employ 10 to 99
employees.
Some examples can include a small printing press, a laundry shop, a travel
agency, a restaurant, a small beauty salon, and a consulting company.
Medium enterprise- are those businesses with total assets amounting Php
15,000,001 – Php100, 000,000 and employ 100 to 199 employees.
Medium enterprises can comprise a food manufacturing corporation, a
furniture manufacturing corporation.
Large Enterprises- are defined as business having more than Php 100,000,000
total assets and employ more than 200 employees.

c. Enterprises According to Goals

Business Enterprises- are entities that engage in commercial activities for the
purpose of livelihood and/or profit such as manufacturing, trading, selling, and
distributing.

HOLY TRINITY COLLEGE OF GENERAL SANTOS CITY | SENIOR HIGH SCHOOL PROGRAM 3
ENTREPRENEURSHIP | APPLIED SUBJECT FOR ABM, HUMSS, STEM and TVL
 Social Enterprises- are organizations that use
commercial activities to improve human and
environmental well-being. Social enterprises
have three goals: Profit, well-being of people,
and Planet. Some examples of famous social
enterprises are Gawad Kalinga, which has
successfully built homes and communities
and Cordillera Coffee, which helps poor
coffee farmers get a better price for their
produce.

✓ CONTRIBUTION OF ENTREPRENEURSHIP TO EMPLOYMENT

Number of Establishments

The 2019 List of

Establishments of the
Philippine Statistics
Authority (PSA)
recorded a total of
1,000,506 business
enterprises operating
in the country. Of
these, 995,745 (99.5%)
are MSMEs and 4,761
(0.5%) are large
enterprises. Micro
enterprises constitute
89% (891,044) of total
MSME establishments,
followed by small
enterprises at 10% (99,936) and medium enterprises at 0.5% (4,765).

HOLY TRINITY COLLEGE OF GENERAL SANTOS CITY | SENIOR HIGH SCHOOL PROGRAM 4
ENTREPRENEURSHIP | APPLIED SUBJECT FOR ABM, HUMSS, STEM and TVL
Sectoral Distribution

The top five (5) industry sectors according to the number of MSMEs in 2019 were: (1) Wholesale
and Retail Trade; Repair of Motor Vehicles and Motorcycles (462,492); (2) Accommodation
and Food Service Activities (144,024); (3) Manufacturing (115,387); (4) Other Service Activities
(65,918); and (5) Financial and Insurance Activities (46,100). These industries accounted for
about 83.35% of the total number of MSME establishments.

HOLY TRINITY COLLEGE OF GENERAL SANTOS CITY | SENIOR HIGH SCHOOL PROGRAM 5
ENTREPRENEURSHIP | APPLIED SUBJECT FOR ABM, HUMSS, STEM and TVL
Geographical Spread of MSMEs

Majority of the MSMEs can be found in the National Capital Region (NCR) with 202,011 (20.2%)
business establishments, Region 4-A (CALABARZON) with 148,017 (14.8%), Region 3 (Central
Luzon) with 115,877 (11.6%), Region 7 (Central Visayas) with 70,227 (7%), and Region 6
(Western Visayas) with 61,513 (6.1%). These top five (5) locations accounted for about 59.7% of
the total number of MSME establishments in the country. Regional concentration of MSMEs is
largely associated with economic activity and population size.

Employment

Together, these MSMEs generated

a total of 5,510,760 jobs or 62.4%
of the country’s total
employment. The micro
enterprises produced the biggest
share (29.8%) closely followed by
small enterprises (25.2%) while
medium enterprises were far
behind at 7.4%. Meanwhile, large
enterprises generated a total of
3,315,575 jobs or 37.6% of the
country’s overall employment.

In terms of regional distribution,

majority of the jobs are generated
by MSMEs in the National Capital

HOLY TRINITY COLLEGE OF GENERAL SANTOS CITY | SENIOR HIGH SCHOOL PROGRAM 6
ENTREPRENEURSHIP | APPLIED SUBJECT FOR ABM, HUMSS, STEM and TVL
Region (NCR) with 1,538,106 jobs; followed by MSMEs in Region 4-A (CALABARZON) with
797,399; Region 3 (Central Luzon) with 586,508; Region 7 (Central Visayas), 431,056; and
Region 6 (Western Visayas), 307,831.

By industry sector, MSMEs in the Wholesale and Retail Trade; Repair of Motor Vehicles and
Motorcycles sector generated the most number of jobs with 1,984,227 followed by
Accommodation and Food Service Activities (805,081), Manufacturing (747,114), Financial
and Insurance Activities (307,316), and Education (303,314).

The world is composed of more than 195 countries. These countries can be categorized
using the Human Development Index as developed counties, developing countries and
underdeveloped counties. This index ranks countries as “very high human development”,
“high human development”, medium human development, and “low human
development”.
Human Development Index (HDI) is a summary measure for assessing long-term progress in
three basic dimensions of human development: a long and healthy life, access to
knowledge and a decent standard of living.
• A long and healthy life- is measured by life expectancy.
• Knowledge level- is measured by mean years of education among the adult
population, and access to learning and knowledge by expected years of
schooling for children of school-entry age.
• Standard of living- is measured by Gross National Income (GNI) per capita
expressed in constant 2011 international dollars converted using purchasing power
parity (PPP) conversion rates

HUMAN DEVELOPMENT INDEX CATEGORIES:

• Developed country- has a significant economic growth and security. Almost all
people can access quality education and proper hospitalization, have a great
capita income. Have high scores in all indicators of HDI.

Some examples of developed countries

are Japan, Singapore, Canada and
United Kingdom.

Japan

HOLY TRINITY COLLEGE OF GENERAL SANTOS CITY | SENIOR HIGH SCHOOL PROGRAM 7
ENTREPRENEURSHIP | APPLIED SUBJECT FOR ABM, HUMSS, STEM and TVL
 Toronto, Canada
• Developing country- have not achieved a significant degree of economic growth
and security, in most cases a medium to low standard of living, average income is
lower than developed countries, some can access quality education, the
economy relies on few crops, and farming is done using primitive methods.

Some examples of countries with “medium human development” are Indonesia,

Mongolia, Philippines and Sri Lanka.

Manila, Philippines

• Underdeveloped country- a
nation which lacks of South Sudan
industrialization, infrastructure,
depends on agriculture, only few
can access education and
suffers from a low per capita
income. Have low scores in HDI.

Some examples of countries with

“low human development” are
Niger, Central African Republic,
South Sudan, Chad and Liberia.

HOLY TRINITY COLLEGE OF GENERAL SANTOS CITY | SENIOR HIGH SCHOOL PROGRAM 8
ENTREPRENEURSHIP | APPLIED SUBJECT FOR ABM, HUMSS, STEM and TVL
HUMAN DEVELOPMENT INDEX RANKS:
• Very high human development (0.800-1.000)
• High human development (0.700-0.799)
• Medium human development (0.555-0.699)
• Low human development (0.350-0.554)

According to UNDP report of 2017, the HDI ranks the Philippines as #113, out of 189
countries and territories, with a classification of “medium human development”.it is thus,
considered as a developing country. Specific indicators of the status of the country
according to the HDI parameters are indicated in the Table 1 below.

Table 1
HUMAN DEVELOPMENT INDEX
#113 Philippines: Medium Human Development
Life Expectancy at birth 69.2
Expected years of schooling 12.6
Mean years of schooling 9.3
GNI per capita (2011 PPP$) 9,154
HDI Value 0.699

The table 1 indicates that the state of human development of the Philippines, as
indicated by HDI (all indicators) of 0.699 is almost closed with the high human
development categories but still far from the desired 1.0, Thus, all indicators of HDI are still
less than the required values for “high human development” or “very high human
development” categories but still the country performs better.

Table 2
PHILIPPINES’ HDI TRENDS
INDICATORS 2010 2015 2017
Life Expectancy at birth 68.3 69.0 69.2
Expected years of schooling 11.7 12.6 12.6
Mean years of schooling 8.9 9.3 9.3
GNI per capita 6,754 8,323 9,154
HDI Value 0.665 0.693 0.699

HOLY TRINITY COLLEGE OF GENERAL SANTOS CITY | SENIOR HIGH SCHOOL PROGRAM 9
ENTREPRENEURSHIP | APPLIED SUBJECT FOR ABM, HUMSS, STEM and TVL
 The table 2 indicates the Philippines’ HDI Trends from the year 2010 to year 2017. It showed
that, as years passed by, the country is improving in all indicators.

IMPORTANCE OF ENTREPRENEURSHIP
Entrepreneurship is very important to every country. It can bring significant
changes in a development of a nation. Here are some reasons:
✓ It generates/provides employment
Since businesses need people who will work for them, entrepreneurs will
have to hire manpower to operate their businesses. This means
opportunity for unemployed citizens to acquire a job. Bigger companies
generally need more manpower and provide greater salaries to
compensate the work. Thus, more businesses, more employment.
✓ It helps in the economic growth of the country
Businesses can contribute greatly in the economic development of the
country since more taxes are collected and used by the government for
the improvement of government services such as hospitalization,
infrastructures, education and other government services.
✓ It eradicates poverty
Since more businesses means more employment which then result to
better economic growth of the country, thus citizens will have a better
standard of living. People can also access quality education. This means
that poverty will be minimized, or will totally be eradicated.
✓ It improves our social image across the country
Good entrepreneurship image makes the country a better picture to
other countries. This economic condition will then build a better social
condition all throughout the country which may result to investments of
other countries and may give a positive effect on imports and exports
activities.

ROLE OF THE GOVERNMENT IN ENTREPRENEURSHIP

The government also plays a very important role in Entrepreneurship. With the proper
and adequate assistance programs, the government can develop a larger
entrepreneurial economy. Here are the roles of government in Entrepreneurship:
✓ Maintain Peace and Order
Peace and order and security are utmost importance to any business.
The government keeps the communities conducive to business. It gives
the entrepreneurs the assurance that their personal and business are safe
from any trouble.
✓ Monitoring Price Stability
The government prevent the abrupt changing of prices because it will be
difficult for businesses to plan costs of production and project profit when
prices are fluctuating.

HOLY TRINITY COLLEGE OF GENERAL SANTOS CITY | SENIOR HIGH SCHOOL PROGRAM 10
ENTREPRENEURSHIP | APPLIED SUBJECT FOR ABM, HUMSS, STEM and TVL
 ✓ Taxes
The government makes tax programs based on the ability to pay scheme
since tax incentives encourage entrepreneurs.
✓ Infrastructures
Facilities and infrastructures are built by the government which help boost
the growth of more businesses. Good roads, bridges, transportations,
communications, and accessible water and power supply, attract
businesses to go into business here and abroad.
✓ Provide Education, Training and Assistance
The government has included entrepreneurship as one component in the
New Secondary Curriculum. As a component, entrepreneurship deals
with the principles and practices of putting up small enterprises. It
provides students with practical work experiences such as making simple
business plans, operating a simple business, doing record keeping, office
work, and the like. The government also provides trainings and assistance
that will help aspiring entrepreneurs to enhance their skills and talents
when they engage in entrepreneurship.
✓ Public Administration
The government provides accessible offices for registration, permits,
licensing and financing that help the entrepreneurs speed up their
processing of important papers necessary in the establishment of their
businesses.
✓ Financial Institution
Government provides adequate and cheap credit facilities for the
aspiring entrepreneurs wherein working capital can be obtained.

_____________________________________________________________________________________________

ON LINE TREASURE HUNT!

Explorer! To discover more and to keep you active in this topic, Please take time to
read the R.A. 6977 before you proceed to the next lesson.

NEXT LESSON: THE ENTREPRENEUR AND THE BUSINESS ENTERPRISE

THE MANAGERIAL FUNCTIONS

-Macatangay, L. (2015). Entrepreneurship. SALESIANA BOOKS: DON BOSCO PRESS, INC:

Makati City.
-Laguyo, C. (2016).Entrepreneurship.An Interactive Module. St. Bernadette Publishing House
REFERENCES Corporation: Quezon City.

https://www.dti.gov.ph/resources/msme-statistics/

HOLY TRINITY COLLEGE OF GENERAL SANTOS CITY | SENIOR HIGH SCHOOL PROGRAM 11
ENTREPRENEURSHIP | APPLIED SUBJECT FOR ABM, HUMSS, STEM and TVL