Entrepreneurship Lesson 6

Types of Entrepreneurial Activities

Retailing - Is selling goods directly to consumers.

Types of retailing

1. Store-based retailing – store retailing can take the form of an over-

the-counter service or a self-service
store, a big department store, or a small kiosk
offering a variety of goods.

A. Supermarket – A large self-service store that carriers a wide

variety of households, food, and laundry products.

B. Convenience store- a retail store that is located near a

residential area that is usually open 24 hours a day, 7days a
week.

C. Department store – A retail store that carries a wide variety of

product line, usually clothing, shoes, accessories, and home
furnishings.

D. Specialty store – a retail store that specializers on a certain

product line.

2. Online retailing – retailers connect to individual consumers

through the internet.

3. Non-store retailing – call it a revolutionary way of retailing, it

keeps up with the competition by
reaching a wider base.
A. catalog and direct-mail retailing- is a retail format that allows customers to
choose products from catalogs or brochures that are sent to them directly via
mail.

B. Direct selling- A retail format wherein the distributor (seller) contacts the
customer directly at home or at work to offer products.

C. Television home shopping – a retail format that uses television as a medium

to demonstrate the features and benefits of a products and allows customers
to place their orders through the telephone.

D. Vending-machine retailing – is a non-store format wherein products such as

coffee, and chips are available to customers through the vending machine.

Types of retailing by ownership

1. Independent, single-store establishment
2. Corporate retail chains
3. Franchising

Advantages of Franchises
A. An established brand
B. training
C. Volume purchasing power
D. Advertising
E. A proven business model
F. Accounting and budgeting system
G. Other help in running one’s business

Disadvantages of Franchise
A. Franchise can be expensive
B. Franchisors may require the franchisee to follow
their operations manuals to the letter.
C. Buying a franchise is like marrying someone you
have not known for very long.
D. The relative security offered by franchises may be
exaggerated.
Questions to ask before a franchise
1. What type of franchise is it?
2. Does the business lend itself to the franchise model?
3. How many franchises does the organization have?
4. How much is the franchise fee?
5. How much will one have to pay in royalties?
6. How much money will one’s business really make?
7. Can one work with these people
8. How will the franchisor help the franchisee?
9. Is the franchisor’s company legitimate?

Manufacturing - Is a business activity wherein raw materials are

transformed into finished goods mechanically or chemically by
means of high-powered machine or equipment, or simply by hand.

Other big names in manufacturing include:

 Sara Lee Philippines, Inc., Avon products, Inc. (cosmetics)
 Coca-Cola Bottlers Philippines Inc., San Miguel Brewery Corp.
(beverages)
 Del Monte Foods, San Miguel Pure foods Company Inc. (food)
 United Laboratories, Inc., Pascual Laboratories, Inc.
(pharmaceuticals)

What a manufacturing business requires?

Before putting up a manufacturing business, an entrepreneur must meet the
following:

1. Define the business

2. Determine the kind of skills the business requires
3. Find out how much space the business needs to occupy and how suitable it
is for future expansion
4. Consider operational cost.
Creative Pursuit
Creativity plays an important role in the success of a manufacturing business
for several reasons:
1. It allows the business to remain competitive
2. Being creative helps a manufacturer bring down cost.
3. A manufacturer builds a more interactive workforce.

Choosing the best manufacturing business

1. Identify a need
2. Research about the market

Production planning- the acquisition and allocation of scarce resources

needed in production to satisfy demand over a specific period.

Different stages in production

1. Operation – a process where raw materials undergo transformation in
preparation for the next step.
2. Assembly- parts of a product are put into one whole piece
3. Finishing – the enhancement of the appearance or value of product such as
varnishing, coating, or glazing.
4. Inspection – the run-through stage that checks a product for its acceptability
and merit. This is known as quality control.

Choosing a Location
Here are some factors to consider in choosing a suitable location for a
manufacturing business:
1. Accessibility to transportation
2. Adequate water and electric supply
3. Efficient waste disposal system
4. Size of the property
5. Suitability of the building to business activities
6. Availability of adequate community institutions like banks, stores, churches,
and hospitals.
7. Availability of labor skills that match the work force needed

Services - Refers to job done for you, these can be a kind of work or
assistance like laundry, cleaning, hairdressing, printing, repairing, or
photocopying.

Types of service
1. High-contact services- this type of service involves personal visits by the
customer to the service establishment.

2. Low-contact services – a type of service involves minimal

or no physical interaction between the customer and the service provider.

Forms of service business

1. Lifestyle-related services
2. Education services
3. Information services
4. Professional and business services
5. Repair services
6. Rental services
7. Entertainment and recreation services
8. tourism

A young entrepreneur can employ different promotional

strategies to push his or her service business in the market
1. Advertisement 2. Press releases 3. Newsletters
4. Flyers and leaflets 5. Web site
 Lesson 7 : Government Support and Legal Requirements

Government Support

Ø The Small and Medium Enterprise Development (SMED)

Council was created in 1991 to integrated and synchronize
the various efforts.
Ø SMEDC has array of programs to assist small businesses.

The areas of assistance of SMEDC covers:

1. Finance
2. Marketing
3. Training and human resource development
4. Product development and technology assistance

1. Finance
 Development Bank of the Philippines (DBP)
 Land Bank of the Philippines (LBP)
 Small Business Corporation (SBCorp)
 Quedan and Rural Credit Corporation
 Philippines Export-Import Bank,
 National Livelihood Support Fund

*DBP and SBCorp – are “wholesale” lenders that use commercial banks, rural
banks, thrift banks and other financial institutions as “retailers” to reach out
more readily to small business everywhere in the country.
2. Marketing
Ø The DTI , through its various agencies, provide marketing
support to small enterprises by means of exposure in local
and international trade fairs, expositions, trade missions to
various countries-trading partners, and other trade events
through the Center for International Trade Expositions and
Missions (CITEM)

3. Training and Human Resources Development

Ø The DTI, in cooperation with local government units and local
industry associations, has set up SME Centers nationwide
manned by business counselors who are trained to assist
entrepreneurs in their finance, marketing, technology, and
training needs.

4. Product Development and Technology Assistance

Ø For assistance in product design and development, the agency
to approach is the Product Development and Design Center of
the Philippines (PDDCP)
Ø For packaging design, testing and analysis, it is the Packaging
Research and Development Center (PRDC)
Legal Requirements
List of the various government agencies and local government units
 Registering with the Department of Trade and Industry (DTI)
 Steps for over-the-counter registration:
 Obtain application forms (duplicate copy) and fill these up completely
 Meet the following requirements (For single proprietorship)—must
Filipino Citizen, 18 yrs. Old above and so-on.
 Submit application form to the DTI Processor
 Pay the required registration and processing fee
 After showing the receipt to the processor, the Business Name
Certificate will be released.
 Your Business Name Certificate is valid for 5 years from date of
registration.

 Registering with the Securities and Exchange Commission (SEC)

 SEC is the government agency that gives the business enterprise
its legal personality.

 Registering with the Social Security System (SSS)

 An employer, or any person who uses the services of another
person in business, trade, industry or any undertaking must be
registered with the SSS.

 Registering with the Cooperative Development Authority (CDA)

 All cooperative are required to register with the CDA as per
Republic Act 6938/6939.
 Registering with the Bureau of Internal Revenue (BIR)
  Every business enterprise has to register with the BIR for
taxation purposes.

 Registering with the Department of Labor and Employment (DOLE)

 Business establishments with one or more employees are
required to register with DOLE, the agency which monitors
compliance with labor laws.

 Registering with the Local Government

 All businesses, whatever the legal form, are required to secure a
mayor’s permit or municipal license from the city or municipality
where they located.

 Registering with the other Agencies