Chapter 4: Home

Economics : Related
Occupation (HERO)
Entrepreneurship
Entrepreneurship is the art of organizing and managing a
business undertaking. The business itself is called the
enterprise and the person who manages the said business is
the entrepreneur.
The Entrepreneur and His
Enterprises
Many stories of the Filipino entrepreneur are filled with
drama and adventure. A great number of successful usiness
enterprises started from a hobby which is shared with the
members of the family, and later on involved neighbors and
the entire community. According to Andres, Filipino
entrepreneurs usually started the business by spending their
spare time by cultivating a few fruit-bearing trees such as
mangoes, chicos and guavas whose fruits were meant only for
family consumption.
Not all entrepreneurs succeeded in their enterprises. Others
failed probably becuse they lack the following characteristics
by Ohm and Eddy:

1. Friendliness which includes the ability to get along well

with people including those who need patience to deal with;
2. Enthusiasm which inspires confidence and loyalty;
3. Sincerity which connotes being on the level and honest;
4. Industriousness which necessitates starting to work early
and continuing work as needed to help business achieve
maximum effiency;
5. Vigor which requires possessing good health and eing
energetic at all times;
6. Perseverance which means reamaining steadfast and not
easily discouraged even when the working hours are long and
business seems slow;
7. Positiveness which demands accepting constructive
criticism and trying to learn fron these; being optimistic, self-
confident and willing to take moderate risks; and
8. Initiative which is being aself-starter, resourceful, inventive
and self-propelling.
Starting Small Home
Economics Related
Occupations
The following is a paradigm which prospective entrepreneurs
should examine when choosing the business that they would
like to go into:
*Your own Background Education Experience Hobbies

*Other People's Needs

*Opportunities for growth

According to Andres, the following consideration should be
taken when making decision as to what businesses;

1. Ganacity (coined from the word “ganado” or motivated).

This refers to the interest in the work which gives enjoyment
to the person;
2. Talent –where an individual excels;
3. Training/Experiences;
4. Profiability; and
5. Growth hould
4.3 The Basic Phases of
the Business
MANAGEMENT
Is the process of planning, organizing and directingthe
resources and activities of an enterprise for the attainment of
its objectives with effectiveness and economy.
Types of Resources
 Men
 Money
 Methods
 Materials
 Machines
Work of Management
 Organization –includes planning of the
objectives and structure of an eneterprise or
project and implementation of such plans.
 Administration –includes the direction and
control over the day-to-day activities of the
enterprise to ensure that the objectives are
attained.
Marketing-- Includes all activities involved in the movement of
goods from the producer to the consumer. It is best
approached through the 4Ps, namely:

 Product – are basically essential enjoy brisk sales.

 Price –the expected amount of money, required or given
payment for something.
 Promotion –enable the business to increase market
penetration
 Placement –the process of making a product or service
accessible for use or consumption by a consumer or business
user.
Financing--the process of supplying/obtaining money, credit
or capital. Finance means money matters in general. A
business cannot start without finances. Such inances may
come from the following:

 Owner/owners of the enterprise; and

 Lenders of the capitalIn any business, the two most
important financial statements are:
 The Balance Sheet; and
 The Income Statement
The Balance Sheet
-shows the financial position of the business at
a particular time. It may be regarded as a
financial photograph of the business.
Two Sections of Balance Sheet
1. Assets –anything with moenetary value owned by the
business is an asset. This may be classified either as current or
fixed.
 Current assets –include cash and those assets that will be
converted into cash within one year. Example of this includes
accounts receivable and inventory.
 Fixed assets –are those thing acquired by the business for
long-term use. They include such things as land, buildings and
equipment.
2. Liabilities --anything owned by a business is considered its
liability. Liabilities are claims against the asset of the business.
These may either be current or long-term.
 Current liabilities –are those debts which must be paid
within one year. Examples of these are accounts payable and
short-term loans.
 Long-term liabilities –include debts which will not be paid
within the year such as a long-term loan which is to be paid
over a ten-year period of time like a bank loan.
 Equity –refers to the assets of the business minus the
liabilities. The equity is the owners investment in the
business.
Production –refers to the creation of anything of value which
includes goods, services, or ideas that people want and aren
willing to pay for.
The Concepts of Sustainable
Development for Human Well-
being
Sustainable development for human well-being is the totality
of the voluntary efforts of individuals and families to attain
and maintain a lifestyle where they produce most of their
basic needs. Alonf this context, families produce some of their
foods for daily subsistence, fertilizers for their plants , herbal
medicines for their common ailments and minor illnesses and
many others.
Alternative Sources of
Income
Compost Farming is a well-decayed plant and animal matter
such as leaves, straw, cogon grass, weeds, rice hulls, vines and
animal manure. Characterized by rich, dark brown and
crumbly soil, it is often referred to as food for the hungry soil.
Composting is a method of changing pompost
into rich organic fertilizer. Practical and
inxepensive, composting is an alternative to
using chemical fertilizers which are not costly
but hazardous to health and contribute to soil
destruction and environmental pollution.
2. Herbal Gardening
Herbal plants are plants with medicinal value. They are used
for common ailments like cough, fever, diarrhea or loose
bowel movement, swelling toothache, gas pain, rheumatism
and the like. Some are taken as dewormer (expel inetestinal
worms), diuretic (induce urination) and antiseptic for wounds.
Others are useful for their aromatic quality.
It should e borne in mind that medicines
which are available in drugstores in the form
of capsules, tablet, ointment, etc. Are
manufactured from plants. As such plants with
medicinal value should be available in the
house for their economical advantage. Where
space permits , herbal plants/trees should
grown by families. In urban areas, such plants
can be cultivated in pots, cans, and plastics.