TOPIC OUTLINE

TLE 5 (Entrepreneurship), 2nd Sem, SY 2021-22

Week Topic/Number of Reporters
Module 1 Entrepreneurship Development
Lesson 1 How Does an Economy Grow
1st Week 1. Theories that explain how economies grow
2. Economic explanations for development
Lesson 2 Entrepreneurship and Economic Growth
2nd – 3rd Week 1. Social and economic impact of entrepreneurship
2. Indication of socio-economic development
3. The National Economy
4. Contributions of Entrepreneurs in the Society (1)
5. The Role of Government in Entrepreneurship Development (3)
Lesson 3 The Entrepreneurial Personality
4th Week 1. The Role of Entrepreneur (2)
2. Entrepreneurial Qualities/PECs (2)
Lesson 4 Wellsprings of Entrepreneurship: Are Entrepreneurs Born or Made?(3)
5th – 6th Weeks 1. Early life experiences
2. Cultural values
3. Philippine culture and entrepreneurship
Module 2 Business Opportunities in Small Business
Lesson 1 The Search for Business Opportunities
7th and 8th Weeks 1. Entrepreneurial activities
2. Business opportunities in rural communities (1)
3. Resources in the community
4. SWOT Analysis (4)
5. Factors affecting Choice of Business Location(1)
6. Linkage of resources (1)
7. Market research (1)

MID-TERM EXAMINATION
Module 3 Starting and Managing your Enterprise
Lesson 1 Organizing the Enterprise
9-10th Week 1. Organization defined
2. Forms of Business Organization
a. Sole or Single Proprietorship (Define,Adv& Disadvantages)(1)
b. Partnership (Define, Adv & Dis) (1)
c. Corporation (Define, Adv & Dis) (1)
d. Cooperatives - Principles, Objectives and its Types (3)
e. Non-Profit organizations (Examples) (1)
3. How to Apply for Business Permit (2)
Lesson 2 Managing the Enterprise
11th and 12th Weeks 1. Management defined (1)
2. Production Resources
3. The Role of Management
4. Basic Functions of Management (1)
5. Management by Objectives (MBO)
6. Theories of management
a. Scientific Management by Taylor (1)
b. Theory X and Y by McGregor (1)
c. Hierarchy of Needs by Maslow (1)
d. Motivational Theory by Herzberg (1)
7. The Need for Risk Management and Ways to Reduce Risk (1)
8. Risk and Insurance Management (1)
Lesson 3 Production of Goods and Services
13th and 14th Weeks 1. The nature and rules of production (1)
2. Inventory control, Scheduling (1)
3. Quality Control, Productivity (1)
Lesson 4 Marketing for Small Business
15th and 16th Weeks 1. Marketing defined
2. Major marketing functions (1)
3. Marketing concept vs Selling concept
4. Importance of Consumer Service (1)
5. Consumer behavior – Why do Consumers Buy (1)
6. Product life cycle (1)
7. Main reasons of the New Product Failure (1)
8. Promotions, Distribution Channels (1)
Lesson 5 Social Responsibility
17th and 18th Weeks 1. Its relevance
2. Business Ethics
3. Consumer Rights

FINAL EXAM

LESSON 1
 TITLE: How Does an Economy Grow

INTENDED LEARNING OUTCOMES

After studying this module, you are expected to:
 Demonstrate understanding the economic theories of entrepreneurship.
 Assess for yourself which of the various theories given best explain the
economic growth.
 Discuss the economic impact of entrepreneurship.

INTRODUCTION
Countries can be rich or poor depending on their level of economic
development. At the end of this lesson, you may be able to assess for
yourself which of the various theories given best explain why some
countries grow and others do not. But why do we need to understand
economic growth?
A developing country such as the Philippines, would need such an understanding in
order to find ways or strategies to achieve economic prosperity. You will perhaps be able to
understand why the average Filipino family has less of food, clothing and other material things
in life, compared to the average American family. Understanding will encourage you to strive to
change at least your own and your family’s- if not your community or your country’s economic
future. We need to look into the experiences of other countries or cultures who have been
more successful in overcoming poverty. Get their best practices that can be applicable or useful
to our own country and culture.

ABSTRACTION

READ THIS:

Writers of varying disciplines explain economic growth as an inevitable process

brought about by interacting forces in nature. Such forces have been described in
various terms such as the “Law of Nature”, ‘Invisible Hand”, “Cultural Diffusion”, “Racial
Heritage of People”, “Climatic Conditions, and Challenge of the Environment.

1. General Explanation of economic development

 a. Economic development proceeds according to a master plan or “Law of Nature”
In 1932, Spengler explained economic development as a culture or society
compared to a living organism that grows, lives and dies. Thus, to him, economic
development is a natural thing that happens to an existing culture; it is a part of life and
is something to be expected.

b. Economic development is brought about by an “Invisible Hand”

In the 18th century, Adam Smith advanced the principle of an “Invisible Hand” as
underlying economic development. According to him, while individuals seek to work for
their own personal goals, they unknowingly promote what is best for all.

c. Economic development is brought about by “Cultural Difussion”

Some theorists classify economies as either traditional (less
developed/backward) or modern (market/capitalist/developed). They suggest that
development takes place as a result of contact between traditional and modern
economies. The modern economy penetrates the traditional economy weakens and is
eventually “dissolved” or assimilated by the modern one.

d. Racial heritage determines the economic development of a people

The belief. that one race is superior to another on the basis of color, built and
other genetic heritage has been around for a long time. For some theorists, racial
heritage determines the economic development of people.

e. Climatic conditions determine the energy levels of a people and, in turn its rate
of development.
In 1915, the observation and studies of Ellsworth Huntington, an American
geographer, led him to conclude that climatic conditions would have a detrimental effect
on the energy levels of people in the country.

f. The challenge of the natural environment is responsible for the rise of civilization
Finally, according to A.J. Toynbee in his book, A Study of History (1947), the
challenge of the environment is responsible for the rise of civilizations. He stresses
however that the challenge must neither be too weak nor too strong, it must be just right
in order to produce results. This theory matters on the availability of abundant resources
existing in the environment as the source of economic growth in the community.

2. Economic explanations for development

Economists such as Adam Smith, David Ricardo and Karl Marx identified
various economic factors influencing economic growth. These are technology,
population changes, division of labor and entrepreneurship. Those factors were the
environmental stimuli perceived by enterprising individuals as economic opportunities.
 Adam Smith, for example believed that the invention of better machines and
equipment brought about increased productivity which together with specialization or
division of labor, made economic growth possible. Division of Labor, in Smith’s view
leads to: an increase in skills among workers; and the invention of better machines and
equipment reduced time necessary to produce commodities.

Population is another factor identified by economists as influential to

economic growth. According to David Ricardo, population increases eventually lead to
stagnation or a final stationary state of the economy. However, John Maynard Keynes
(1936) disagreed with Ricardo’s conclusion. Keynes maintained that capitalists or
entrepreneurs are most likely to invest their resources when there is a demand for the
commodity. With increasing demand by an increasing population, capitalists or
entrepreneurs would most likely invest more.

APPLICATION

1. Imagine a teacher and a child. List down at least five things (5) as you can
think of that they might need.

TEACHER CHILD

______________ ________________
______________ ________________
______________ ________________
______________ ________________
______________ ________________
2. Based on your observations, identify at least five (5) effects of today’s
pandemic to the economy of the country.

1. _________________________________________________________
2. __________________________________________________________
3. __________________________________________________________
4. __________________________________________________________
5. __________________________________________________________

LESSON 2
 TITLE: Entrepreneurship and Economic Growth

INTENDED LEARNING OUTCOMES

After studying this module, you are expected to:
 Define the concepts of entrepreneur and entrepreneurship.
 Give the indication of socio-economic development.
 Discuss how we view the concept of entrepreneurship today.
 Explain the nature and scope of government support

INTRODUCTION
In this lesson, we will focus our attention on entrepreneurship as an important
factor to development. Here you will see how the activities of entrepreneurs influence
social and economic conditions in a given civilization. In the end, try to find out for
yourself whether or not you would agree that “where there are no entrepreneurs, there
is no development.”

Looking back at the past, men were living in stone caves or in trees. They
had no idea how to build a real house. Hunting was their primary source of livelihood.
When they had food, they had to eat as much as they could for they knew of no way to
preserve it. Life then was not easy. Several years went by and men acquired some
knowledge and skills. Men had learned to settle down since they could now hunt better
with sharper tools, tame animals, use fire and even plant crops. They had also learned
to make earthen ware pots to hold their food, soften and pound metal into plates and
bowls and weave clothing and baskets.

With civilizations spreading far and wide, we see that people have begun to
travel, to seek knowledge, fortune and adventure. Man’s mobility in turn led to the
further flourishing of trade and widespread sharing of knowledge. Through the ages, we
can see the standard of living continuously improving. Today, we enjoy modern-day
machines, gadgets and conveniences. We have come a long way from the primitive
ways of life our ancestors led.
ACTIVITY
Instruction: In your own understanding, answer the following:

1. What is an entrepreneur?
______________________________________________________________
______________________________________________________________
______________________________________________________________

2. What is entrepreneurship?
_______________________________________________________________
______________________________________________________________

The National Economy

The national economy is composed of business enterprises, households and the

government. These are the major sectors of the economy. The strength or weaknesses
of one sector affects the other sectors because of their interdependence. However, it is
the government which provides the leadership in improving the economy.

Other sectors

Business
Household Enterprises
GOVERNMENT
 Other sectors

Instruction: Name 5 government agencies and give at least one of its functions or
roles played toward the improvement of our economy:

Government Agencies Role

(complete name)
1.

2.

3.

4.

5.

ANALYSIS

Contributions of Entrepreneurs:

A-creates E-brings social

employment benefits

B-improves the D-utilizes and mobilizes

quality of life. ENTREPRENEUR through the government
resources for greater
C-contributes to more national productivity.
equitable distribution of
income and therefore eases
social unrest.
ABSTRACTION

READ THIS :
Entrepreneurship is using available resources and turning them into profitable
ventures. The person who undertakes entrepreneurial activities is called an
entrepreneur. The basic reason why entrepreneurs put up a business is to fill the needs
of the people.
The more society engages in entrepreneurial undertakings, the more it is
likely to develop economically and socially. We noted that our country has a long way to
go compared to other countries. That is why, the government has been actively
promoting entrepreneurship as its partner in nation building.
Given the wide range of support entrepreneurs will need and the variety of
businesses to be assisted, the government seems to be in the best position to formulate
policies, and design programs and projects aimed at encouraging entrepreneurship.
The government through its agencies, set the overall economic direction of the country
for entrepreneurship to flourish. There are various government offices with programs
and projects geared towards helping and developing businesses.
To be successful, promoting entrepreneurship should not only be nation-wide
in scope but also reach all sectors of society. Only the government has the people,
money and facilities to launch such a program. Only the government can make laws
and regulations favoring entrepreneurs. It is the wide extent of government functions
that allows it to be the most effective promoter of entrepreneurship development.
The powers of government can be used to influence activities supporting
entrepreneurship.
The following are certain areas where these activities can gain best results:

1. The Educational System

The government, through the Department of Education and its agencies,
can enrich the curriculum by introducing concepts of entrepreneurship in certain
subjects like economics or social studies. A separate subject on Entrepreneurship is in
fact being offered in Senior High and now in Higher Education not necessarily
undertaking Business Courses. This will make it easier for the students with
entrepreneurial inclination to understand and evaluate their potentials.

2. Facilities and Infrastructures

It is important that the government provide good roads to help an
entrepreneur deliver his products or services on time. Electricity must always be
available to meet the requirements of the customers. Communication facilities like the
telephone and the like, enable the entrepreneur to get in touch with customers here and
abroad. He can deal with money matters in banks. The government provides the
assurance that the entrepreneurs can trust the reliability of these facilities and
infrastructures.
 Good facilities and infrastructures also attract business. An entrepreneur
will likely choose to start his business in an area with good road, dependable power and
water supply and reliable banking facilities.

3. Peace and Order Situation

An entrepreneur will always prefer setting up his enterprise in a secure,
peaceful community. He will work best in an environment without trouble or
unnecessary interference in doing business. He wants to be free from harm to his life, to
his workers and to his business in general. The government must assure that personal
and business security will be saved from any trouble, thus arousing confidence in new
entrepreneurs to start their business.

4. Administrative Support (Bureaucracy)

A prospective entrepreneur does not start the business immediately after
he has thought of it. He has to register his business, get the necessary permits and
licenses and even apply for a loan. All these things take time and in most cases, the
entrepreneur has to deal with government agencies. The entrepreneur should
understand that to do business, he must deal with tedious procedures and requirements
before a business can be considered legally registered.
On the part of the government, it can introduce improvements to make
bureaucracy a lesser burden. Remove the usual “lagay” practice to hasten processing
of papers. A more efficient processing of business papers and lesser graft and
corruption will persuade entrepreneurs to deal with the system.

5. Assistance Programs to New Entrepreneurs

a. Marketing Assistance – is directed towards providing information on
buyers for the products and for possible sources of raw materials

b. Technical and Technology Assistance – covers advice on the production

aspects of the business and the preparation of project studies for lending
purposes.

c. Financial Assistance – refers to the provision of money through loans to

be used as well as in expanding a business.

d. Training and Consultancy Assistance– The government offers vocational

courses, training for entrepreneurs and managers and training for
consultants and development workers of small businesses.
 LESSON 3
TITLE: Entrepreneurial Personality

INTENDED LEARNING OUTCOMES

After studying this module, you are expected to:

 Identify the traits that make up an Entrepreneurial Personality.

 Discuss how entrepreneurial personality traits can help society
improve its support to entrepreneurship.
 Discuss what motivates people to become entrepreneurs.

INTRODUCTION

The successful entrepreneur enjoys a position of prestige in the community

because of his many contributions to society especially in terms of providing jobs to
people and providing needed goods and services. Moreover, entrepreneurs are
rewarded by a sense of accomplishment for having created something out of nothing.
What exactly does the entrepreneur do?

Until recently, entrepreneurs were not widely studied. There was a general lack
of knowledge and information about what made them tick. Most business universities
now offer courses in entrepreneurship. As a result, business professionals have learned
a lot about what it takes to become a successful entrepreneur. Although no one has
found the perfect entrepreneurial profile, there are many characteristics that show up
repeatedly.

A series of interviews were conducted with distinguished entrepreneurs. They

were asked what characteristics they felt were essential to success as an entrepreneur.
Good health was a characteristic mentioned by every entrepreneur interviewed.
Entrepreneurs are physically resilient and in good health. They can work for extended
periods of time, and while they are in the process of building their business, they refuse
to get sick.

In small businesses, where there is no depth of management, the leader must

be there. You may not be able to afford a support staff to cover all business functions,
and therefore you will need to work long hours. We all know people who use part of
their sick leave each year when they are not sick. Entrepreneurs are not found in this
group. At the end of the eight-hour day, when everyone else leaves for home, the
entrepreneur will often continue to work into the evening, developing new business
ideas.

http://www.makingittv.com/What-is-the-profile-of-an-entrepreneur.htm
ANALYSIS

INSTRUCTION: Analyze the cases below and identify at least three entrepreneurial
characteristics (PECs) for each number. Why chose the characteristics:

Case 1 – Senya Blancaflor, wife of abstract painter Ben Saturno, shifted gear from
being a registered nurse into an art
gallery curator*.
Running up a gallery*
turned up to be a job cut out for
her. In fact, if you see her
entertaining guests and
enlightening them on the finer
points of art, don’t get surprised.

Characteristics
1._____________________________
2._____________________________
3._____________________________
4._____________________________
Why
______________________________
______________________________
______________________________
______________________________

*Gallery - a room or building for the display or sale of works of art

*Curator - in charge of a collection of exhibits in a museum or art gallery.

Case 2 - It all started with a dream, Lilli de Leon, the creative mind behind Dreams
Needlehearts and Crafts, wanted not so much to sell hand-embroidered items as to
get customers interested in the craft.
It became a dream-come-true for the Business Administration graduate of
the University of the Phils. When she got her business running in Robinsons Galleria
and Glorietta, and eventually organized the Dream Stitcher’s Club.
For De Leon, it was a transition from learning to earning. After finding
company in the needle and thread set, she got hooked on different forms of
embroidery, combining stitches.’
Her measure of an ideal needlework. The wrong side of the fabric is as
neat as the right side. Reversible that is. She disproved the old belief that hand
embroidery is only for old, retiring women who had nothing to do better.

Characteristics Why

1._____________________________ ________________________________
 2._____________________________ ________________________________
3._____________________________ ________________________________
4._____________________________ ________________________________

ABSTRACTION

READ THIS
Broadly speaking, there are eight entrepreneurial functions or roles:
1. Perceives opportunities in the environment
The entrepreneur keenly observes the environment in search of ideas and
opportunities that can be turned into profit.

2. Takes risks to make use of these opportunities

The entrepreneur does not merely perceive ideas as opportunities but also
calculates the risks involved in implementing these ideas. This means estimating the
odds for success as well as failure. On the basis of these estimates, he decides
whether to go on with the business or to forget about it. When he decides to go on
despite the chances for failure, he takes a risk.

3. Mobilizes capital for a business

The entrepreneur produces the capital in so many ways. He may
look for investors who will believe in his project and share the risk with
friends or relatives. Another alternative is for him to go to the bank to
borrow funds.

4. Introduces innovations
What is innovation? Innovation implies newness, variation,
originality, novelty or uniqueness. Thus, the innovative person is
open to change. They think of ways by which a product is put to
other uses, adapted, modified, magnified, substitute, reversed or
combined.

5. Organizes labor and production

The entrepreneur is the man responsible for getting together all
resources needed for the business to get started and going. He
identifies the needs of the business in terms of talents of abilities and
then looks for people who do not only fit these requirements but who
have the drive as well to work with him.

6. Makes decision
The business situation involves a lot of unknown and uncontrollable factors
which may affect the future success or failure of the firm. Under these conditions of
uncertainty, the entrepreneurs considers all alternatives open to him to solve a
 problem, ranks them according to usefulness and chooses that course of action
which is most useful for the business.

7. Plans ahead
This role demands that he be able to anticipate events in
the future that will affect his business. He should also be able to
prepare for consequences of his actions well in advance.

8. Sells his products at a profit

The entrepreneur is an economic man. As such, he sees to it that his
products will sell and bring him money. He establishes relations with customers in a
personalized manner so that they will choose to buy his products or services again and
again.

Personal Entrepreneurial Characteristics (PECs)

Do you agree that capital and right attitude lead to a success in

business? The following are the traits that an entrepreneur must
possess in order to succeed in any business venture:

1. An entrepreneur is a Risk-Taker
- The entrepreneur does not merely perceive ideas
as opportunities but also calculates the risks
involved in implementing the ideas. He has the
ability to identify the gain and losses advance
most importantly have back up plans.
2. An entrepreneur is an Achiever.
- An entrepreneur believes in his
capabilities.

3. An entrepreneur Seeks Useful Information

- An entrepreneur frequently monitors social and adopts new
technologies. He never stops searching for ideas that will improve his
products.

4. An entrepreneur Influences People

- An entrepreneur brings people into action by
setting himself as a role model of hard work.

5. An entrepreneur Sets a Goal

- An entrepreneur must be future-oriented. He has a vision for his
business.

6. An entrepreneur Plans, Monitors and Evaluates

- It is important that plans are made in order to put things into order.
Alternative actions are present in planning in order to cope up with
 the changes in the situation. Monitoring is necessary to supervise the
direction of the operation. Finally, evaluates so that proper actions are
taken in the process of achieving the organizational goal.

7. An entrepreneur Demands Quality and Efficiency

- In order to maintain the good status in the business world,
the entrepreneur makes sure that the quality of his
products are maintained, if not made better. To do this,
management must also maintain a harmonious
relationship with employees in order to motivate them to produce
quality products, not only for profit but for customer satisfaction.

8. An entrepreneur Looks for Opportunities

- Entrepreneurs have the ability to perceive and act on new business
opportunity.

9. An entrepreneur is Committed
- Entrepreneurs should be able to accept full
responsibility for problems encountered and always
seeking to satisfy their customers.

10. Self-Confidence
- He starts business because he likes to be his own boss. He is
responsible for his own actions.

APPLICATION
PROJECT:
a) INTERVIEW the owner of a sari-sari store or any business establishment.
b) Choose between a 10-minute video or non-video.
c) Interview presentation of maximum 10-15 minutes in length.
d) To identify and select an entrepreneur to interview, you could draw from one of the following
possible sources:
i. Relatives
ii. Friends, or
iii. Acquaintances who might be able to recommend someone they know whom
they consider to be an entrepreneur.
e) Contact the person selected and make an appointment. Be sure to explain why you want the
appointment and to give a realistic estimate of how much time you will need. Be sure to clarify
the purpose of the interview and the fact that it must be video or voice recorded for educational
purposes. Ask also permission for picture taking during the interview.
f) For those who will submit the 10-minute video- you may go beyond time and edit later.
g) For the non-video:
1. You may take notes or record your conversation.
2. Produce at least two pictures of the Interview
3. Handwritten or encoded
 4. Use short bond papers

Ask the following:

1. Write the Type of Business (ex. Sari-Sari Store, Grocery, Carenderia, Computer shop, location,
etc.)
2. How did the owner come up with the idea of his business? (motivation)
3. Where did he get his capital?
4. What are the challenges or problems met during the start of operation, until the current days?
5. How did he cope up with those challenges?
6. What could be the characteristics possessed by the owner that makes the business flourishing
or growing?
7. Did you have any sales or marketing experience prior to starting your own enterprise?
8. Has your personal life changed as a result of this enterprise?
9. In a scale of 1-10, (5 being the average) – what is the status of your business?
(scale of 1-10, from failure to success)
10. What are the things that you find personally satisfying and rewarding as an entrepreneur ?
11. What advice would you give an aspiring entrepreneur?

Do not forget to Thank the Entrepreneur that you interviewed. You can thank them for
taking time out of their busy schedule to help you out with a Project.  You could elaborate on how
many things you have learned from the interview (required time, money, everyday tasks, risks,
business, etc.).

h) In conducting the Interview - Remember, that you most likely will learn more if you
are an "interested listener."

i) Include at the end of your report this one (video or non): WRITE at least 5 most important
lessons you have learned as a result of your interview.

Whether video or non-video, please make your requirement

PRESENTABLE.
Use your creativity.

Reminder: A student who exerts effort always deserves a good grade. Stay safe, always.

To be submitted on _________________________. (Subject for further notice.)

KEY TERMS:

1. Opportunities – refer to the chances to make business in the environment,

therefore make money out of the situation
2. Production – turning raw materials into finished products using labor
3. Labor – refers to manpower
4. Profit – money left after deducting expenses from Total money earned
5. Curator – in charge of a collection of exhibits in a museum or art gallery. Their job is
to build up collections, often in specialist areas. Curators develop ways in which
objects, archives and artworks can be interpreted, through exhibitions, publications,
events and audio-visual presentations.
6. Gallery - a room or building for the display or sale of works

LESSON 4
TITLE: Wellsprings of Entrepreneurship:
Are Entrepreneurs Born or Made

INTENDED LEARNING OUTCOMES

After studying this module, you are expected to:
 Understand the roles of early life experiences and culture in
developing entrepreneurial spirit
 Identify Filipino values that are favorable or deterrent to
entrepreneurship
 Find out what sets of circumstances bring about or hinder the
development of an entrepreneurial person from the time he was born
 Identify your own strengths and weaknesses for a possible
entrepreneurial career

INTRODUCTION
Why are some Filipinos not as entrepreneurial as they ought to be? How
does this affect the rate of development or level of prosperity of the country?
This lesson enables us to trace the background of individuals so that you may
identify the sources or origins of entrepreneurial qualities in terms of life experiences
within the family and culture where they belong. Then we shall look into some of our
cultural experiences and find out which ones are helpful and which ones are not in
preparing us to meet the challenges of an entrepreneurial career. We hope to
encourage you to develop certain attitudes and values that help generate
entrepreneurial qualities.
ACTIVITY
INSTRUCTION: List down Filipino values that may help develop an entrepreneurial spirit and
how will it promote the business:

Filipino Values Application to business

1. ____________________________ - __________________________________
2. ____________________________ - __________________________________
3. ____________________________ - __________________________________
4. ____________________________ - __________________________________
5. ____________________________ - __________________________________

ANALYSIS

Question: Which groups in the Philippines have been stereotyped as “business minded”?
What factors do you think made them inclined to business?

1._______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

2._______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

ABSTRACTION

In the previous lessons, we learned about entrepreneurial roles and the character traits
and attitudes that set the entrepreneurial personality. Now we move on to find out what
sets of circumstances bring about or hinder the development of an entrepreneurial
person from the time he was born. Where do entrepreneurs come from? Are
entrepreneurs born or made?
We shall trace the origin of entrepreneurs in terms of their life experiences
and the culture where they belong. We shall look into cultural experiences and find out
which ones are helpful, and which ones are not in preparing to meet the challenges of
an entrepreneurial career. By so doing, we hope to encourage you to develop certain
attitudes
and values that help generate entrepreneurial qualities. Whether you decide to be an
entrepreneur or not, you can benefit from developing entrepreneurial qualities in
yourself to help you be the best of whatever you choose to become.

Early Life Experiences

Are entrepreneurs born or made? In other words, are entrepreneurial qualities
already present in the child when he is born perhaps as inherited characteristics from
his parents, or are these qualities developed through life? What sort of home
atmosphere did they grow up?
Nowadays, however, there is enough evidence to show that entrepreneurial
qualities can be developed early in life as a result of the following:
1. Earl life training in independence, self-reliance, decision making and hard
work.
-such as crossing the street on their own, choosing own friends, not
rewarded if lazy, reward if diligent, and the like

2. Early training in business

-exposure to parents who are in business or in related occupations

3. Early training in a craft or trade

-early mastery training in craftmanship to children, such carpentry,
auto mechanics and radio electronics

Cultural Values

The emergence of entrepreneurs is also related to cultural values, or those ideals held
by a community as standards for social or interpersonal behavior. Values are upheld
because they are viewed to be conducive or necessary to the welfare of everyone in the
group. People who have studied entrepreneurial origins found that entrepreneurs
generally come from cultures with specific views on the following:
1. Competition
- It is believed that good, honest competition is healthy rather
than leading to an unfair monopoly of the market by single
entities or individuals.
2. Time orientation
- Entrepreneurs are future- oriented, hence time is important
and values future rewards.

3. Views on trading
- Many successful; businessmen started as vendors or
traders. A culture that desires to develop more
entrepreneurs must reward people who try to earn money
from humble ventures.

4. Conferment of ranks
- A culture that promotes entrepreneurship is one that
confers social ranks in terms of actual achievements rather
than circumstances of birth. In the Phils., one who gets rich
 by honest work is respected even if he was born from a
poor family.
5. Work ethics
- The culture must look at work as a duty, and it must value
honest and productive labor.

6. Views on money
- People who appreciates the value of money will find it
wasteful to spend too much on beautiful but not necessarily
durable products. They go for utility and practicality. This
attitude further encourages inventiveness or innovation
because entrepreneurs will try to look for ways to
manufacture a given product at lesser cost, or by using
other types of materials, process or equipment.

Filipino Values Favorable to Entrepreneurship

1. Pakikipagkapwa
2. Bahala na
3. Pakikipagsapalaran
4. Gaya-gaya
5. Close family ties
6. Utang na loob, hiya, awa, bayanihan
7. Kasipagan
8. Pagtitipid
9. Pagtitiis
10. Pagtitimpi
11. Katapatan

Filipino Values Deterrent (or Unfavorable) to Entrepreneurship

1. Traditional child rearing

-Many parents insist on the traditional, authoritarian way of bringing
up
children. The little ones are discouraged from taking initiatives, exploring
their surroundings and asking questions. It kills the independent spirit which is
the
first hallmark of a successful entrepreneur.

2. Belief in the existence of all powerful forces that control all destinies
-Many Filipinos believe that one does not have
to work for something that is not destined for him.

3. Amor propio
-As we succeed, we feel good and take full credit for it. But as we
fail, we tend to point the responsibility on another. To own our failures is to bring
 shame or hiya to ourselves and family. This tendency to pass the buck is not a
trait of entrepreneurs. Failure keeps the entrepreneur review the reason why
they failed so that they can perform better next time around.

4. Bahala na Attitude
-Many Filipinos waste much of their energies and time on plans and
projects which they undertook mostly on the basis of bahala na rather than on
an intelligent analysis and planning of their resources. Therefore, it has both
positive and negative effects on entrepreneurship

5. Family and kins

-Has both positive and negative effects on
entrepreneurship. Negative because family members
and friends expect to be treated differently asking for
discounts, employment, unlimited credit, etc. which
may harm the business. It is difficult to deny or fail
them. Instead of being objective in our decisions, we
become too personal and subjective, which is part of
our culture.

6. Colonial Mentality
-This suggest that we tend to believe that
anything imported is necessarily better. Thus, we
blindly copy foreign technology, products,
design, fashion, etc. This mental attitude has
negative effects because we loose one valuable
trait of an entrepreneur which is creativity, not to
mention inventiveness.
APPLICATION

INSTRUCTION: Identify the Positive and Negative traits or circumstances that led to the
success of Mrs. Liwayway

A Case Study of Liwayway Ballon: The Embroidered Garments Manufacturer

At 44 yeays old, Mrs. Liwayway Ballon owns and manages a small but profitable garments
factory specializing in embroidered products. The major source of the family’s income, the factory
also provides employment to 25 employees. Aling Liwayway, as fondly called, sells her products all
over Metro Manila and has begun to reach markets in Hawaii, Singapore and the Fiji Islands.
Not bad for a sixth grader who, as a young girl, was orphaned by her father. Aling
Liwayway’s poor and humble beginnings in Sta. Rosa, Nueva Ecija have probably motivated her to
be self-reliant and success-oriented.

The Early Years

Aling Liwayway, the second child in a family of four, grew up in a small farm in Nueva
Ecija. The family led a simple life. Her father was once lumberman working in población. While her
mother was a farmhand who occasionaly buys and sells live fowls to augment the family income.
When her father died in 1948 due to illness, there were no savings left to assure the
children‘s education, much less three squares meals a day. The young Liwayway had to work in
order to finish sixth grade and to help her mother raise the family.
At an early age , Aling Liwayway learned and enjoyed the “art” of selling. Anything she
can lay her hands on, she sold to her classmates, relatives and neighbors. After school hours, she
gathered camote sprouts, tamarind leaves, tomatoes, garlis and bananas in order to sell the
following morning before attending classes. With a little profit she earns by selling was spent in
buying fish to be later re-sold to neighbors. She even worked in a cafeteria just so she can earn her
daily allowance, a free lunch and a few extra centavos for her mother.
Upon reaching her teens, her aunt, who owns and manages a dress and embroidery shop
in Bulacan took her as an apprentice. She learned all the rudiments of sewing and embroidery.
Later in life she herself ventured to open a backyard dress shop.

Positive
1. _______________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________

Negative
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
REFLECTION

Instruction: Share at least two (2) of the experiences you encountered whether as a
mobile seller at an early age or in your very own store or anything related to selling:

1. ________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

2. _________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

KEY TERMS:

1. Stereotyped - branded; known for or famous for

2. Utility – means usefulness
3. Values – refers to the behavior that are acceptable to the society
4. Monopoly - only one individual or few people are selling same products
5. Mobility – movement
MODULE 2: Business Opportunities in Small Business

LESSON 1

TITLE: The Search for Business Opportunities

INTENDED LEARNING OUTCOMES

After studying this module, you are expected to:

 Identify business opportunities;

 Analyze the strengths, weaknesses, opportunities and threats of an
enterprise;
 Discuss market research.

INTRODUCTION
Business opportunities are everywhere as long as there are people with money,
and they are willing to satisfy their needs. However, there are more business
opportunities for individuals who are creative, resourceful and risk-takers because they
create opportunities instead of waiting for opportunities to come. These are the real
entrepreneurs.
There are factors to take into account in searching for business opportunities.
These are resources, skills, interests and economic needs. The resources, skills and
interest of the entrepreneur should match the social and economic needs of the
community. For instance, are you really interested in such kind of business? Are you
willing and able to sell a certain product or service? Is there a demand for such product
or service? Do you have the resources and skills to undertake such business?
Likewise, the resources, skills and technologies available in the community are
to be evaluated. If these are not fully or efficiently utilized, then these are good sources
of business opportunities. It is natural for buyers to look for goods and services which
offer better quality, lower price and more conveniences. These are the basic features of
consumer satisfaction which entrepreneurs can develop.

ABSTRACTION
 In discovering business opportunities, the following factors or resources have to
be evaluated:

1.Markets
The number of prospective buyers, the presence of competitors, and the prices and
quality of goods and services have to be analyzed. Are the needs of the consumers fully
satisfied? If not, then business opportunities exist in areas where consumer satisfaction
is weak or incomplete.

2. Individual interest
3. Capital
4. Skills
5. Suppliers of inputs
It is not enough that there are sufficient buyers of goods and services. It is
equally important that there are steady suppliers of raw materials and other
inputs of the business. No materials, no production. Bad for business.
6. Manpower
In putting up a business, make sure that experts or trained personnel are
available. This is an essential requirement to make the business feasible.
7. Technology
Tastes and preferences of consumers are not permanent. These are heavily
influenced by innovations. And innovations are the products of technology. New
products and new services represent improvement which are intended to improve
consumer satisfaction. Entrepreneurs should be updated with the latest
technology.

SWOT Analysis
There is always a need to evaluate business opportunities. Whether these are really
economic opportunities and whether these are profitable. To be able to translate
business opportunities into profits, the SWOT Analysis is applied. SWOT is the acronym
of strengths, weaknesses, opportunities and threats. SWOT Analysis is a tool for
evaluating the strengths, weaknesses opportunities and threats associated with a
particular product or service.
Here are the indicators of SWOT:

STRENGTHS of a product or service:

 Cheap and abundant raw materials
 Sufficient funds
 Availability of technology
 Presence of skilled workers
 Management and technical expertise of the entrepreneur
 Good quality/service
 Ease of production
 Small capital

WEAKNESSES of a product or service

 High price
  Poor quality/service
 Weak management
 Lack of skilled workers
 Irregular supply
 Unattractive design
 High costs of production

OPPORTUNITIES of a product or service

 Big demand for the product/service
 Favorable government policy/support
 Scarcity of the product/service
 Poor quality of existing product
 Absence of products/ service
 Possibilities of good profits

THREATS
 Shortage of raw materials at a given time
 Entry of many competitors
 Increasing costs of production
 Expectation of unfavorable government laws, such as taxes
 Deteriorating peace and order
 Emergence of unfair demands of workers through labor union activities

Product Life Cycle

Products have their own life cycles. Each product life cycle is composed of four
stages: introduction. Growth, maturity, and decline. Some products have long product
life cycle while others have short ones. Here are the descriptions of the various stages
of a product:

Introduction
Consumer awareness and acceptance of the product are low. However, sales gradually
increase due to promotion and marketing activities.

Growth
Sales rise rapidly as the product becomes popular. Due to a competition and lower
average cost of production, prices fall. To meet growing demand, product distribution is
expanded. Promotion still plays a vital role in the marketing of the product.

Maturity
Sales are still rising at the beginning of this stage. But the rate of increase has declined.
Price competition increases which forces inefficient competitors to get out from the
industry.

Decline
There is a sharp fall in sales volume. There is also a decline in the number of
competitors. The only survivors are those who specialize in the marketing of the
product. Once the product is no longer profitable, it is eliminated from the market.

Choice of Business Location

The location of the enterprise is a vital factor in the success of a business. There are
many factors to consider in selecting a good location. These are the following:

 Population trends
 Income trends
 Consumer characteristics
 Retail sales trends
 Competition
 Transportation facilities
 Government policies
 Environment (health and sanitation)
 Electricity
 Water supply
 Communication facilities
 Peace and order
 Fire protection
 Parking space

Linkages of Resources

Enterprises which have establish a strong growth future can increase their efficiency or
profitability through backward and forward integration. This is also called backward and
forward linkages.

Backward integration is the ownership or control of inputs of production by the

enterprise. For instance, a poultry business is heavy user of feeds which consist of a
mixture of palay, corn, fish and ipil-ipil leaves. To ensure a steady supply of feeds at a
lower price, better quality of the right quantity, the owner of the poultry business puts up
his own feeds production. This is another business opportunity.

MODULE 2: Starting and Managing your Enterprise

 LESSON 2

TITLE: Organizing the Enterprise

INTENDED LEARNING OUTCOMES

After studying this module, you are expected to:

 Define organization;
 Identify the Forms of Business Organization based on Ownership:
 Discuss its Advantages and Disadvantages:
 Define Cooperative – its nature, principles and types;
 Discuss Nonprofit Organizations and samples;
 Enumerate the process of acquiring business permit.

INTRODUCTION

An organization is a group of two or more persons who work together to attain a

common set of goals. A sari sari store owned and managed by a family is an
organization. In the same manner, San Miguel Corporation is an organization. A credit
cooperative is also an organization.
Organizing is a process of combining and coordinating resources and activities
in order to accomplish efficiently and effectively certain objectives. However, organizing
has a more important role. This is the proper development of human resources. The
best resources of the organization are its employees – not money, machines, materials
or buildings. Hence, the entrepreneur must hire the best and the brightest, and then
further develop them in line with the philosophy of the organization.

Organizational structure
Every organization has a structure which indicates positions and relationships.
These are shown by an organizational chart. In small business enterprises, we have
only the owner-manager, supervisor, bookkeeper, and the sales staff or workers. In the
case of big companies, they have several layers of management. For instance, they
have the board of directors, president, executive vice president, several vice presidents,
assistant vice presidents, and many managers and supervisors.

Here is an example of a simple Organizational Chart:

 Manager-Owner

Office Sales Supervisor

Supervisor

Accountant Clerk Messenger Salespeople

The chart shows that the Office Supervisor and Sales Supervisor are in direct control by
the Manager-Owner. On the other hand, the Accountant, clerk and messenger are all
under the direct supervision of Office Supervisor. Furthermore, all salespeople are
under the direct supervision of the Sales Supervisor.
Decentralization of Authority

When a part of a manager’s work and power is assigned to a subordinate, this

is called delegation. The latter involves the granting of responsibility, authority and
accountability. Responsibility is the duty to do the job. Authority is the power to do the
job. Accountability is an obligation to do the job.

There is decentralization of authority when authority is widely spread in the

lower levels of the organization. On the other hand, if authority is concentrated at the
upper levels, there is centralization of authority.

ABSTRACTION
Forms of Business Organizations Based on Ownership

There are three most common forms of business organizations according to

ownership. These are the sole proprietorship, partnership and corporation. However,
there are other forms of business organizations such as the cooperative and the non
profit organizations which will be included in the discussion on the later part. Many
successful firms started from single proprietorship until they became corporations.

Single proprietorship. This is a form of business organization that is owned and

usually managed by one person or family since a family is considered one unit. It is the
oldest and simplest form of business ownership.

Advantages:
1. Ease and low cost of formation and dissolution.
2. Retention of all profits
3. Independence and flexibility
4. Tax advantage and less government regulation.

Disadvantages:
1. Unlimited liability
2. Lack of stability
3. Limited access to credit
4. Limited business skills and knowledge

Partnership. It is an association of two or more persons who act as co-owners of a

business. Each partner contributes money, property or service to their organization.
Most partnerships have two partners. They are usually engaged in accounting, law,
advertising, real estate and retailing.
There are two types of partners: general partners and limited partners.
The liability of a general partner extends up to his personal properties.
A limited partner is only liable to the extent of his contribution to business.

Advantages:
1. Easy to organize
2. Availability of more capital and credits.
3. Retention of profits
4. Better business skills and knowledge

Disadvantages:
1. Unlimited liability
2. Lack of stability
3. Management disagreement
Corporation. It is an artificial being created by operation of law, having the right of
succession, and the powers, attributes and properties expressedly authorized by law or
incident to its existence.
The shares or certificates of ownership of a corporation are called stocks. The
owners of stocks are called stockholders or shareholders.
There are two types of corporations: private or close corporation and open
corporation. The first one is owned by a few individuals, usually relatives and friends.
The other one is owned by any individual who buys shares of stock which are openly
traded in the stock markets.

Advantages:
1. Limited liability
2. Easy to raise capital
3. Perpetual life
4. Specialized management

Disadvantages:
1. Difficult to organize
2. Strictly regulated and supervised by the government
3. Some corporations are socially irresponsible
4. Formal and impersonal employer-employee relationship

The Cooperative: An Enterprise for the Poor

The Cooperative Code defines a cooperative as a duly registered association of

persons, with a common bond of interest, who have voluntarily joined together to
achieve a lawful common social or economic end.

Principles:
1. Open and voluntary membership
2. Democratic control
3. Limited interest on capital
4. Division of net surplus
5. Cooperative education
6. Cooperation with other cooperatives

Some of the Objectives of cooperatives are:

1. To encourage thrift and savings among the members;
2. To generate funds and extend credit to the members for productive and provident
purposes;
3. To encourage among members systematic production and marketing;
4. To provide goods and services and other requirements to the members;
5. To develop skills and expertise among its members.

Types of cooperatives:
 1. Credit cooperative. Promotes thrift among its members and create funds in order
to grant loans for productive and provident purposes;
2. Consumers cooperative. Procures and distributes commodities to its members
and non-members.
3. Producers cooperative. Undertake joint production in agriculture and industry.
4. Marketing cooperative. Engages in the supply of production inputs to members
and markets their products.
5. Service cooperative. Undertakes medical and dental care, hospitalization,
transportation, insurance, housing, labor, electric light and power, communication
and other services.
6. Multipurpose cooperative. Combines two or more of the business activities of the
different types of cooperative.

Nonprofit organizations

How to Make business legal