Republic of the Philippines

Polytechnic University of the Philippines

(General Luna, Campus)
General Luna Annex, General Luna, Quezon

A Semi Detailed Lesson Plan on A Perspective on Entrepreneurship,

Entrepreneurship and Business Size

I. OBJECTIVES
At the end of this lesson learners should be able to:
A) Determine what is Entrepreneurship and Business Size
B) Shows the importance of Entrepreneurship and Business Size
C) Differentiate the Entrepreneurship and Business Size
II. SUBJECTIVES
A) Topic: Entrepreneurship and Business Size
B) References:
C) Materials: PowerPoint presentation, manila paper

III. PROCEDURES AND METHODOLOGY

A. Preliminary Activities
 Prayer
 Greetings
 Checking of attendance

B. Lesson Proper
Engage
Motivational Activities
Jumbled Words
Explain
Learning Content
Introduction to Entrepreneurship and Business Size

What is Entrepreneurship?

Entrepreneurship is the ability and readiness to develop, organize and run a business
enterprise, along with any of its uncertainties in order to make a profit. The most
prominent example of entrepreneurship is the starting of new businesses.

What are the Four types of Entrepreneurship?

It is classified into the following types:

Small Business Entrepreneurship- These businesses are a hairdresser, grocery

store, travel agent, consultant, carpenter, plumber, electrician, etc. These people run or
own their own business and hire family members or local employee. For them, the profit
would be able to feed their family and not making 100 million business or taking over an
industry. They fund their business by taking small business loans or loans from friends
and family.

Scalable Startup Entrepreneurship- This start-up entrepreneur starts a business

knowing that their vision can change the world. They attract investors who think and
encourage people who think out of the box. The research focuses on a scalable
business and experimental models, so, they hire the best and the brightest employees.
They require more venture capital to fuel and back their project or business.

Large Company Entrepreneurship- These huge companies have defined life-cycle.

Most of these companies grow and sustain by offering new and innovative products that
revolve around their main products. The change in technology, customer preferences,
new competition, etc., build pressure for large companies to create an innovative
product and sell it to the new set of customers in the new market. To cope with the rapid
technological changes, the existing organizations either buy innovation enterprises or
attempt to construct the product internally.

Social Entrepreneurship- This type of entrepreneurship focuses on producing product

and services that resolve social needs and problems. Their only motto and goal is to
work for society and not make any profits.

What is the importance of Entrepreneurship?

 Creation of Employment- Entrepreneurship generates employment. It provides

an entry-level job, required for gaining experience and training for unskilled
workers.
 Innovation- It is the hub of innovation that provides new product ventures,
market, technology and quality of goods, etc., and increase the standard of living
of people.
 Impact on Society and Community Development- A society becomes greater
if the employment base is large and diversified. It brings about changes in society
and promotes facilities like higher expenditure on education, better sanitation,
fewer slums, a higher level of homeownership. Therefore, entrepreneurship
assists the organization towards a more stable and high quality of community life.
 Increase Standard of Living- Entrepreneurship helps to improve the standard of
living of a person by increasing the income. The standard of living means,
increase in the consumption of various goods and services by a household for a
particular period.
  Supports research and development- New products and services need to be
researched and tested before launching in the market. Therefore, an
entrepreneur also dispenses finance for research and development with research
institutions and universities. This promotes research, general construction, and
development in the economy.

What is Business Size?

Business size is about how big the company’s operations are. It can be measured
by several indicators, including assets, revenue, production, market capitalization,
number of employees, and capital invested.

How to determine company size?

 Number of employees – how many people are recruited by the company. Big
businesses employ more workforce than small businesses because they operate
on a large scale.
 Revenue – how much money is made from selling goods or providing services.
An alternative is to use a sales volume measure.
 Production – how much volume of output is produced. This indicator is irrelevant
for service businesses because their output cannot be quantified as for
manufacturing companies.
 Amount of invested capital – how much capital is owned by the company.
 Market capitalization – how much is the total value of the shares issued by the
company. It only applies to public companies, where the shares are traded by the
public and listed on the stock exchange.

How to classify Business size?

The four common categories of businesses based on their size are:

 Micro-sized business
 Small-sized business
 Medium-sized business
 Large-sized business

The classification may differ between institutions and between countries. Each institution
has different categories and definitions. Some may use the number of employees as a
basis for categorizing. While others may use turnover or revenue. In Indonesia, for
example, the Central Statistics Agency categorizes businesses into:

 Micro-sized business: 1-4 workers

 Small-sized business: 5 – 19 workers
 Medium-sized business: 20 – 99 workers
 Large-sized business: 100 and more workers
Meanwhile, the OECD uses the following categories:
 Micro-sized business: less than 10 employees
 Small-sized business: 10-49 employees
 Medium business: 50-249 employees
 Large-sized business: more than 250 employees

Why Business Size is important?

Big businesses have large capital and resources to grow. As a result, they have better
economies of scale, allowing them to be more efficient. Large resources also support a
strong market position and greater bargaining power with customers and suppliers.

For the economy, the big business provides more output and jobs. Their influence on
the economy is even greater if they operate the financial industry.

Furthermore, stakeholders often consider the business size when making economic
decisions about a company. Here are some examples:

Customers often view large companies positively. They see large companies tend to
have high quality to maintain their reputation and positive image. On the other hand,
companies care about maintaining quality because they don’t want their reputation
ruined. With greater economies of scale, they are also more likely to offer lower prices.

Investors consider the business size when allocating investment to a company’s stock
or corporate debts. They may perceive large companies as safer because they have
large resources, which allows them to have a competitive capacity and ability to make
big money.

Workers are also more comfortable working in large companies because they offer
better opportunities, including salary or professional career paths. In addition, they are
also considered to offer more job security than small companies because they are more
competitive.

Governments may charge different tax rates according to the company size. Or, when
providing subsidies or grants, size may also be a consideration.

Creditors are concerned with the company size to determine the company’s capacity to
borrow. Large businesses have a higher borrowing capacity, making it easier to seek
funding from banks or the capital market.

Suppliers prefer large companies because they are more likely to get large orders. That
way, they can achieve higher economies of scale.

Explore
Differentiate Me!

Instructions: In your own words, differentiate the Entrepreneurship and Business Size.

Elaborate

E or BS

Direction: Write E is the statement is True and write BS if the statement is false.

____ 1. A small-sized business consists of 1-4 workers

____ 2. Innovation means it should be highly innovative to generate new ideas, start a
company and earn profits out of it.
____ 3.A large-sized business consists of more than 250 employees.
____ 4. A Small Company Entrepreneurship have defined life-cycle. Most of these
companies grow and sustain by offering new and innovative products that revolve
around their main products.
____ 5. Revenue is how much money is made from selling goods or providing services.
An alternative is to use a sales volume measure.

IV. ASSIGNMENT
Direction: Answer the following questions.
What is the importance of Entrepreneurship?
What is the importance of Business Size?

Prepared by:
Recilla, Verenize Mae A.
Demo Teacher

Prepared for:
Mrs. Elizabeth Forbes
Demo Teaching Professor
Edukasyong Pantahanan at Pangkabuhayan with Entrepreneurship