WEEK 1
Entrepreneurship is the process of discovering new
ways of combining resources.
Entrepreneur is someone who “creates a new
business in the face of risk and uncertainty for the
purpose of achieving profit and growth by identifying
significant opportunities and assembling the
necessary resources to capitalize on them”. They are
the ones who act on their business ideas. originates
from a thirteenth-century French verb, entreprendre,
meaning “to do something” or “to undertake.” By the
sixteenth century, the noun form, entrepreneur, was
being used to refer to someone who undertakes a
business venture. Entrepreneur-derived from the latin
word:“Entre”- means enter, “Pre”-means before,
“Neur”-means a nerve center-a source of power or
control.
Enterprise is a company or business, often a small
one. The outcome of the actor and the act. A project
or undertaking, especially one that requires boldness
or effort.
8 Entrepreneur themes
1. The Entrepreneur – entrepreneurship involves
individuals with unique personality characteristics and
abilities (e.g., risk-taking, locus of control, autonomy,
perseverance, commitment, vision, and creativity).
2. Innovation – doing something new as an idea,
product, service, market, or technology in a new or
established organization. innovation is not limited to
new ventures but is recognized as something that
older and/or larger organizations may undertake as
well
3. Organization Creation – acquiring and integrating
resource attributes (e.g., bringing resources to bear,
integrating opportunities with resources, mobilizing
resources, gathering resources) and attributes that
described creating organizations (new venture
development and the creation of a business that adds
value).
4. Creating Value – entrepreneurship creates value.
The attributes in this factor indicated that value
creation might be represented by transforming a
business, creating a new business, growing a
business, creating wealth, or destroying the status
quo
5. Profit or Nonprofit - While for-profit organizations
are responsible for paying taxes based on their net
income, nonprofit organizations are exempt from
paying income tax.
6. Growth - Success in business. Should a focus on
growth be a characteristic of entrepreneurship?
7. Uniqueness – entrepreneurship must involve
uniqueness. Uniqueness is characterized by attributes
such as a special way of thinking, a vision of
accomplishment, ability to see situations in terms of
unmet needs, and a unique combination.
8. The Owner-Manager – Some of the respondents
questioned by Gartner (1990) did not believe that
small mom-and-pop types of businesses should be
considered entrepreneurial. Some respondents felt
that an important element of the definition of
entrepreneurship was that a venture be owner
managed. To be entrepreneurial, does a venture need
to be owner-managed?
4 ASPECTS OF AN ENTREPRENEUR
1. Involves creation process. Capability to think of
new ideas that will bring something useful to the
community.
2. Requires devotion of time and effort. If something is
important to you, time and effort will make it easy to
give in. “What is important is seldom urgent, and what
is urgent is seldom important”.
3. Involves the rewards of being an entrepreneur.
Give something to yourself as an entrepreneur when
you achieve something, and it could help you be more
inspired in your next project. It also serves as the
price for your hard work.
4. Requires assumption of necessary risk Business is
not always at the top, which is why risk is always
present. We don’t know when there will be an
uncertain risk and when there will be the best day in
business because everything is not the same day.
Therefore, having assumptions will help the
entrepreneur
10 QUALITIES OF A SUCCESSFUL
ENTREPRENEUR
1. Disciplined – are focused on making their business
work and eliminating hindrances or distractions from
their goal.
2. Confidence – are confident in the knowledge that
they will make their business succeed.
3. Open-minded – they have the ability to look at
everything around them and focus it on their goals.
4. Self-starter – knows that if something needs to be
done, they should start it themselves.
5. Competitive – they need to win at the sports they
play and at the businesses they create.
6. Creativity - often come up with solutions that are
the synthesis of other items.
7. Determination – they look at the defeat as an
opportunity for success.
8. Strong people skills – has strong communication
skills to sell the product and motivate employees.
9. Strong work ethic – will often be the first person to
arrive at the office and the last person to leave.
10. Passion – they genuinely love their work and are
willing to put in extra hours to make the business
succeed.
Importance of Entrepreneurship by Najm
Mohamed
1. Entrepreneurship Accelerates Economic Growth.
Entrepreneurs are important to market economies
because they can act as the wheels of the country's
economic growth.
2. Entrepreneurship Promotes Innovation. Through
the right practices of research and development,
entrepreneurs bring innovation that opens the door to
new ventures, markets, products, and technologies.
3. Entrepreneurship Can Promote Social Changes.
Entrepreneurs change or break traditions or cultures
of society and reduce the dependency on obsolete
methods, systems, and technologies.
4. Entrepreneurship Promotes Research and
Industrial Development. Along with producing new
business ideas and thinking outside the box,
entrepreneurs also promote research and
development.
5. Entrepreneurship Develops and Improves Existing
Enterprises. We often think of entrepreneurs as
inventing totally new products and ideas, but they also
impact existing businesses.
WEEK 2
Richard Cantillon (1680-1734) introduced the term
"entrepreneur" and defined entrepreneurs as
specialists in taking risks
Farmers -> Middlemen (reseller) -> End user
(consumer)
Two classes of economic agents:
Income earners/hivelings(worker) and land owners
(business owners)
Entrepreneurs distinguished from landowners and
employees.
Entrepreneurs generate profits through exchanges
and exercise business judgment in uncertain
situations.
Farmers and arbitrageurs (middlemen) were
prominent entrepreneurs during Cantillon's time.
Adolph Reidel (1809-1872): Entrepreneurs assume
uncertainty on behalf of risk-averse individuals and
are rewarded when they can foresee impacts and sell
products at a price exceeding input costs.
Frank Knight (1885-1972):
Distinguished insurable risks from uncertainty;
entrepreneurs bear uninsurable risks and earn profits.
Jean-Baptiste Say (1767-1832):
Entrepreneurship is seen as a form of management.
Focus on the employee
Alfred Marshall (1842-1924):
Distinguished between capitalists(sustains the
business), entrepreneurs(owns/controls the
business), and managers(employee).
Adam Smith (1723-1790):
Economy driven by self-interest in the marketplace.
“Tax the business and register them”
David Ricardo (1772-1823):
Manufacturers invest capital based on demand; adjust
production and workforce in response to market
demand.
Carl Menger (1840-1921):
Entrepreneurs coordinate factors of production to turn
higher-order goods into lower-order goods satisfying
human wants and needs.
Joseph Schumpeter (1934):
Innovation arises from new combinations of materials
and forces.
New combinations include introducing new goods or
qualities, new production methods, opening new
markets, conquering new sources of supply, and new
organization of industries.
Popularized the concept of "creative destruction,"
indicating the need to dismantle existing methods to
enable transformation through innovation.
1. Introduction of goods “teaser’
2. Introduction of new method “process”
3. Opening of new market
4. New source of supply
5. New organization “profit of old is separate
from the new”
15 Important Entrepreneurial Traits According to
Divina Edralin, 2016
1. Initiative – it is the entrepreneur who takes or
initiates the first move towards setting up an
enterprise.
2. Looking for opportunity – always on the lookout or
searching for opportunity and ready to exploit it in the
best interest of the organization.
3. Persistence – is never disheartened by failure. He
believes in the Japanese proverb.
“Fall seven times, stand up eight.”
4. Information seeker – always keeps his eyes and
ears open and is receptive to new ideas that
can help him realize his goals.
5. Quality consciousness – set high standards for
themselves and then do their best to achieve
them.
6. Commitment to work – are prepared to make all
sacrifices to honor the commitments they
have made.
7. Commitment to efficiency – are keen to evolve and
try new methods aimed at making work
easier, simpler, better, and more economical.
8. Proper planning – they believe in developing
relevant and realistic plans and ensuring proper
execution of the same in their pursuit of attaining their
goals.
9. Problem solver – they will first understand the
problem and then evolve an appropriate
strategy for overcoming it.
10. Self-confidence – they have full faith in their
knowledge, skills, and competence and are not
worried about future uncertainties.
11. Assertive – assertive person knows what to say,
when to say, how to say, and whom to say it to.
He believes in his abilities and ensures that others will
fall in line with his thinking, aimed at
promoting the interests of the organization.
12. Persuasive – it’s not physical force but intellectual
force he will use for convincing others.
13. Effective monitoring – they ensure regular
monitoring of the work so that the goals of the
organization are achieved in the best possible
manner.
14. Employee’s welfare – he takes a personal interest
in solving problems, and confronting workers
and generates the feeling that there is
interdependence between the interests of workers
and
management.
15. Effective strategist – he can evolve relevant
strategies aimed at safeguarding or promoting
the interest.
The earliest period
Marco polo(1254-1324): Entrepreneur sells goods on
behalf of the owner, bearing all risks of possible
damage or loss. Profits divided between capitalist and
trader after goods are sold.
Middle Ages:
Entrepreneur manages large production projects with
government-provided resources.
No assumption of risks in this role. Don't blame
employee
17th Century:
Entrepreneurship associated with risk; formal
agreements with the government for products or
services. Richard Cantillon (1680-1734) viewed
entrepreneurs as risk-takers and bearers of
uncertainty.
18th Century:
Entrepreneur distinguished from capitalist;
coordinates and leads both production and sales
activities. Jean-Baptiste Say (1767-1832) described
the entrepreneur as a central coordinating figure.
19th and 20th Century:
Blurred distinction between entrepreneur, manager,
and capitalist.
Joseph Schumpeter (1883-1950) redefined
entrepreneurship as innovation, leading existing
means of production into new channels. Peter
Drucker (1909-2005):Introduced the behavioral
concept of the entrepreneur as someone who
searches for change, responds to it, and exploits it as
an opportunity.
21st Century:
Entrepreneurs in the Dotcom era considered heroes
of free enterprise.Entrepreneurship seen as
pioneering on the frontiers of business.
WEEK 3
possible pros and cons of engaging in enterprise.
Pros
Entrepreneurs boost economic growth by introducing
innovative technologies, products, and
services.
Increased competition from entrepreneurs challenges
existing firms to become more
competitive.
Entrepreneurs provide new job opportunities in the
short and long term.
Entrepreneurial activity raises the productivity of firms
and economies.
Entrepreneurs accelerate structural change by
replacing established, sclerotic firms
Cons
Only a few people have the drive to become
entrepreneurs.
Entrepreneurs face a substantial risk of failure, and
the costs are sometimes borne by taxpayers.
In the medium term, entrepreneurial activities may
lead to layoffs if existing firms close.
A high level of self-employment is not necessarily a
good indicator of entrepreneurial activity.
Entrepreneurship cannot flourish in an over-regulated
economy.
1. Economic Growth:
- Entrepreneurs create new products and services
leading to economic expansion.
- Related sectors like call centers and infrastructure
benefit from the growth, creating jobs and fostering
economic development.
- Education and training for new skills contribute to
employment and income growth.
2. National Income Boost
- Entrepreneurial ventures generate new wealth by
tapping into new markets.
- Increased employment and higher earnings lead to
higher tax revenue and government spending.
- Surplus wealth can be redirected to retrain
workers affected by changes in existing industries.
3. Social Change:
- Entrepreneurs introduce innovative goods and
services, improving quality of life and economic
freedom.
- Innovation, like automatic water pumps or
smartphones, enables people to focus on work,
leading to economic growth.
- Globalization of technology allows entrepreneurs
in less-developed countries to compete globally,
fostering economic development.
4. Community Development:
- Entrepreneurs support community projects and
charities, nurturing ventures and benefiting society.
- Philanthropic entrepreneurs, like Bill Gates, invest
in education and public health, paying it forward for
the betterment of society.
KEY TAKEAWAYS
Entrepreneurship is important as it has the ability to
improve standards of living and
create wealth, not only for the entrepreneurs, but also
for related businesses.
Entrepreneurs also help drive change with innovation,
where new and improved products
enable new markets to be developed.
Economy wise, higher earnings thanks to
entrepreneurship can help boost national
income and tax revenue.
Entrepreneurs contribute in other ways as well, such
as investing in community projects
and supporting local charities.
Too much entrepreneurship (i.e., high
self-employment) can be detrimental to economic
Development.
ROLE OF ENTREPRENEURSHIP &
ENTREPRENEURS IN ECONOMIC DEVELOPMENT
SOCIETY
1. Creates employment – when entrepreneurs put up
their businesses, they employ people who
possess different competencies and personal values
to help them operate the enterprise.
2. Develops new markets – entrepreneurs are
opportunity seekers, creative, and resourceful. They
seek new buyers or customers for their products and
services.
3. Introduces innovation – entrepreneurs innovate,
and this innovation is done for the product,
service, or technology towards commercialization and
generates economic wealth.
4. Generates new sources of materials –
entrepreneurs are always in constant, search for
better and
cheaper sources of materials they need.
5. Stimulates investment interest in the new business
ventures being created – when entrepreneurs
engage in new business ventures, it stirs curiosity in
other people to invest in the business because
of the benefits it offers.
6. Improves the quality of life – the new products and
services developed by the entrepreneurs
contribute to the personal benefit and convenience of
the people in society.
7. Serves as role-models – the attitude, behavior, and
personality traits, like proactiveness,
opportunity recognition, risk-taking, alertness, and
creativity are some of the characteristics that
will also make them successful entrepreneurs in their
lives.
8. Brings social benefit to the people – entrepreneurs
pay taxes for every product or service sold in
the market. They also pay for the licenses and
permits needed to operate their business.
9. Utilizes and mobilizes indigenous resources - small
and medium enterprises will always look for
cheaper and local materials to supply their needs.
10. Provides more alternatives for consumers The stiff
competition in the market for quality and
cheaper products and services requires the
entrepreneurs to come up with more products and
services consumers can choose from.
WEEK 4
East for ‘ease of doing business’, according to the
World Bank Group, it already offers a
relatively low-tax environment before the even less
restrictive free zones are taken into account.
The benefits for entrepreneurs have been
startling.
1. Tech Entrepreneurship: Growth in e-commerce,
software, and technology startups (29% in UAE).
Non-tech startups utilize social media, apps, and
websites.
2. Diversity and Inclusion: Increase in women-led
startups (31-38% in emerging markets),
minority-owned businesses thriving, younger
entrepreneurs.
3. Educational Empowerment: Rise of entrepreneurial
education, accessible courses (including online),
knowledge democratization.
4. Globalization and Remote Work: Technology
enabling remote work, startups integrated globally,
breaking geographic barriers.
5. Ethical Entrepreneurship: Socially conscious
enterprises, examples like TOMS and Ecosia,
combating corporate greed, promoting
social/environmental causes.
CONCEPT OF ENTREPRENEURS TODAY
according to different field experts
Economist- “It is someone who brings resources,
labor, materials, and other assets into combinations
that make their value greater than before; also, one
who introduces changes, innovations, and a new
order.”
Psychologist- a person who “typically driven by
certain forces such as the need to obtain or attain
something, to experiment, to accomplish, or perhaps
to escape the authority of others.”
Management- “someone who identifies opportunities,
plans, mobilizes resources, manages, and assumes
the risks of a business to have a positive impact on
society.
6. Self-confidence is the belief that, together with
other people, things can be done in business.
7. Opportunity orientation is the constant awareness
of opportunities that exist in everyday life.
8. Innovativeness is the ability to come up with
something different or unique every time.
9. Responsibility is their willingness to put themselves
in situations where they are personally
responsible for the success or failure of the business
operation.
10. Tolerance for failure is using it as a learning
experience and being realistic enough to expect such
difficulties, so they do not become disappointed.
COMMON PROFILE DIMENSIONS
1. Calculated risk-taking is doing everything possible
to get the odds in their favor, and they avoid taking
unnecessary risks.
2. Commitment is the unwavering dedication to work
for the common good of society through one
business.
3. Feedback-seeking is the taking of steps to know
how well they are doing and how they might
improve their performance.
4. Perseverance is the determination to succeed by
overcoming obstacles and setbacks.
5. Drive to achieve is the internal desire to pursue and
attain challenging goals.
FOUR ESSENTIAL QUALITIES OF OPPORTUNITY
1. ATTRACTIVE – Appealing product.
2. DURABLE - ability of a physical product to remain
functional, without requiring excessive maintenance
or repair, when faced with the challenges of normal
operation over its design lifetime.
3. TIMELY – in demand or occurring at a favorable or
useful time
4. Create or add value for its user or end user.
IDENTIFYING BUSINESS OPPORTUNITIES
ENTREPRENEURIAL OPPORTUNITY
Favorable set of conditions that will enable the
entrepreneurs to create new products or
services by combining resources that will result, not
only in a profit but for the common good of
the society and the environment:
1. New product (Medicine) or services (delivery of
documents or product)
2. New ways of organizing, like special events or
product launches
- Online booking
3. New Raw Materials
4. NEW MARKETS (FOREIGN TOURISTS FOR
ALTERNATIVE MEDICINE LIKE ACUPUNCTURE)
Vs. Western Medicine
Approach Eastern Medicine Approach
5. New Production Processes Vs.
ENTREPRENEURIAL SOURCE OF STIMULATION
1. EXTERNAL
- Customer demands for new products and services.
2. INTERNAL
- When an entrepreneur recognizes a problem or
opportunity gap and decides to fill it.
WHAT IS WINDOW OF OPPORTUNITY
when a firm realistically enters a market and attempts
to establish a competitive position in the industry.
HOW DO ENTREPRENEURS IDENTIFY
OPPORTUNITIES?
Old way of making bread New way of making bread
by using machine
1. Observing trends from actual experience or market
research studies.
2. Solving a problem and looking for solutions to solve
it.
- The solution could be the opportunity to create
business.
EXAMPLE:
WHEN WORKING PEOPLE COMPLAINED THAT
THEY DO NOT HAVE TIME TO WASH THEIR
CLOTHES AND COOK THEIR FOOD. (LAUNDRY
SHOPS AND FOOD DELIVERIES BECAME
AVAILABLE)
7 POTENTIAL SOURCES OF OPPORTUNITY
1. THE UNEXPECTED
Opportunities can be found when situations and
events are unanticipated,
which might be unexpected success/good news or
unexpected failure/bad
news.
Example: COVID-19 and several lockdowns were
unexpected, but it became an
opportunity for many people to earn for their survival
and, at the same time, for some
enterprises to earn more.
2. THE INAPPROPRIATE
It happens when inconsistencies occur.
EXAMPLE:
Entrepreneurs who are willing to think beyond the
traditional approach may find a
potential opportunity.
3. THE PROCESS NEEDS
It could be the process of discovery, such as
research and development, even before the
breakthrough. There will be numerous opportunities
that entrepreneurs will seize during the process.
Example:
The process of making or creating a vaccine for the
said virus could be sponsored
by a certain company, and it could be their
breakthrough to seize the chance to
finance or invest.
4. INDUSTRY AND MARKET STRUCTURES
Chances in technology, social value, and customer
taste can change the structure of an industry, and this
will give entrepreneurs opportunities to innovate their
products or services.
5. DEMOGRAPHICS
It is the statistical characteristics of human
populations (such as age or income) used specially
to identify markets.
Changes in demographics will influence industries
and markets. There can be entrepreneurial
opportunities in anticipating and meeting the needs of
the
Population. Entrepreneurs must have customer
profiling in relation to
their age, gender, social status, etc.
6. CHANGE
Changes in perception get to the heart of people’s
psychology. profile of what they value, what they
believe in, and what they care about. These changes
create potential market opportunities for
entrepreneurs.
7. NEW KNOWLEDGE
Entrepreneurs who come out with new products and
processes that can compete with other products can
manipulate this kind of knowledge. Examples of new
knowledge include new technologies and new
discoveries that can be sources of information Or
entrepreneurial innovation.
WEEK 5
Service–type of business operations engaged in
rendering of services.
Manufacturing-engaged in the production of items to
be sold. It involves the purchasing and
converting of raw materials to finished goods.
Trading or Merchandising-business engaged in the
buying and selling of goods. It includes the process of
managing and marketing the product.
The most frequently used forms by entrepreneurs
are the following:
Start-up enterprise – a recently formed company
where the founder establishes a completely
new business from scratch.
Buying an existing business – acquiring either the
shares of an existing company or all the assets of an
existing enterprise.
Franchising – when the owner of a company that
already has a successful product or service,
licenses its trademark, trade name, and methods of
doing business to others in exchange for
initial franchise fee and royalty payments.
1. Focus and Direction: Clear vision-mission and
strategies, well-defined business objectives, planning
with the end goal in mind.
2. Sources of Capital: Personal funds, family, friends,
retirement accounts, banks, financial institutions,
government loans, stock market.
3. Good Network: Strong relationships, formal
(associations) and informal (friends, family) networks,
building self-confidence, mentorship opportunities.
4. Legal Requirements: Knowledge of applicable
laws and regulations, compliance to avoid legal
issues.
5. Degree of Risk: Assessment of business risks,
including market limitations, competition, financing
challenges, and labor supply.
6. Research and Development: Focus on innovation
through research and development, creating
technology-based ventures.
7. Personal Competencies: Entrepreneurial skills
(creativity, opportunity seeking, self-confidence,
persistence, commitment, risk-taking), understanding
one's capabilities.
8. Availability of Resources: Adequate levels of raw
materials, human resources, machinery/equipment,
sustainability assessment.
9. Critical Factors for New Venture:
- Basic Feasibility: Viability, need, legality, ethics of
the product or service.
- Competitive Advantages: Unique selling points,
response to competitors, product differentiation.
- Buyer Decision: Target customers, location,
purchasing patterns.
- Marketing: Advertising budget, market share, sales
strategies, brand establishment.
- Production: Make or buy decisions, availability of
supplies, sourcing, appropriate technology.
- Staffing: Competency assurance, recruitment,
talent availability.
- Control: Record-keeping, special controls,
performance monitoring.
- Financing: Working capital requirements, funding
sources.
Manner of Delivery:
1. Automated Services: e.g., ATMs, vending
machines, automated laundry.
2. Services by Unskilled Workers: e.g., taxi drivers,
photo shops.
3. Services by Skilled Workers: e.g., computer
technicians, watch repairmen.
4. Legal Requirements: Understanding laws
governing the business to prevent issues.
5. Degree of Risk: Assessing market limitations,
competition, financing challenges.
6. Research and Development: Emphasizing
innovation through technology-based ventures.
7. Personal Competencies: Entrepreneurial skills,
self-awareness of capabilities.
8. Availability of Resources: Ensuring adequate raw
materials, human resources, and
machinery/equipment sustainability.
Types of Organizations:
1. Profit Organizations: Privately-operated firms like
banks, food establishments.
2. Non-profit Organizations: Aimed at providing
assistance to people, not profit-driven.
Types of Organization (Sponsoring Agency):
- Agencies offering free services, varying in types
such as manufacturing, trading, or wholesaling.
Retailing:
1. Forms of Ownership: Independent, company,
manufacturer's outlet, chain stores, consumer
cooperatives.
2. Levels of Service: Full service, limited service,
self-service.
3. Merchandise Line: General stores, specialty stores,
convenience stores.
4. Mode of Operation: Television shopping, internet
surfing, phone orders, vending machines, mail-order
shopping.
Wholesale:
- Buying products from manufacturers at lower prices
and selling in bulk to retailers.
- Benefits include cost savings, brand creation,
expertise development, diversification, and building
supply networks.
WEEK 6
Sole Proprietorship – is a business owned and
managed by one person.
Partnership – is a business organization owned and
managed by two or more people who agree to
contribute money, property, or industry to a common
fund for the purpose of earning profit.
Corporation – is a form of business organization
managed by an elected board of directors.
Cooperative – is an association of small producers
and consumers who come together voluntarily to form
a business that they own, manage, and patronize.
ACCORDING TO SIZE
TYPES OF
ENTERPRIZE
ASSETS
NO. OF
EMPLOYEE
MICRO(CORP
)
BELOW 3M
PHP
>10
COTTAGE
>100,000 PHP
10
SMALL
3,010,000-100,
000,000 PHP
10-49
MEDIUM
(15-20Y)
15,010,000-10
0,000,000 PHP
50-249
LARGE
<100,000,000
PHP
249+
ACCORDING TO OWNERSHIP
1. Sole Proprietorship:
- Advantages: Easy setup, simple management,
minimal government regulations.
- Disadvantages: Demanding personal time, limited
growth, unlimited liability, restricted access to credit,
lack of stability.
2. Partnership:
- Advantages: Shared decision-making, more
capital, better credit access.
- Disadvantages: Conflicts of interest, unlimited
liability, lack of stability.
3. Corporation:
- Advantages: Shared risks, flexible growth, limited
liability, easy capital sourcing, 50-year existence with
renewal.
- Disadvantages: Complicated setup, limited
influence for minor stockholders, potential
bureaucracy, strict government regulations.
ACCORDING TO INDUSTRY
Agriculture, Forestry and Fishing- Exploitation of
Vegetable and Animal Resources.
Mining And Quarrying- Extraction of Minerals
Naturally as Solids
Manufacturing- Physical or Chemical Transformation
of Materials, Substances or Components to New
Products.
Electricity, Gas, Steam, Air Conditioning Supply
-Providing Electric Power, Gas, Steam, Hot Water,
Etc.
Water Supply; Sewerage, Waste Management and
Remediation Activities- Management of Various Type
of Waste
ETC.
Government Support and Legal Requirements:
Government Support:
- Small and Medium Enterprises (SMEs) are vital for
the economy; government provides various support
programs.
- Small enterprise promotion is a national movement
involving multiple government agencies.
- The Small and Medium Enterprises (SME)
Development Council integrates efforts in finance,
marketing, training, and technology assistance.
- Government banks like Development Bank of the
Philippines, Land Bank, and Small Business
Corporation simplify lending procedures and lower
interest rates.
- Microfinance institutions offer hassle-free,
collateral-free loans for micro-enterprises.
Programs of Government Supporting SMEs:
1. Center for International Trade Expositions and
Missions (CITEM): Provides exposure at trade fairs,
trade events, and international partnerships.
2. Bureau of Domestic Trade: Offers domestic trade
databases and local supplier information.
3. Bureau of Export Trade Promotion (BETP) and
Bureau of International Trade Relations (BITR):
Provides export trade databases.
4. Cottage Industry Technology Center (CITC) and
Technical Education and Skills Development Authority
(TESDA): Offer skills and production training.
5. Philippine Trade Training Center: Provides export
marketing training.
Legal Requirements:
Registering with Department of Trade and Industry
(DTI) for Sole Proprietorships:
- Filipino citizen, at least 18 years old.
- Required documents include proof of citizenship,
registration data sheet, and clearance from other
government agencies.
Registering with Securities and Exchange
Commission (SEC) for Partnerships and
Corporations:
- Required documents include name verification slip,
articles of incorporation/by-laws, treasurer's affidavit,
bank certificate of deposit, and resolution of
compliance.
Registering with Social Security System (SSS)
and Cooperative Development Authority (CDA):
- Sole Proprietorships, Partnerships, and
Corporations have specific requirements for SSS
registration.
- Cooperatives must submit articles of cooperation,
economic survey, and bond of accountable officers.
Registering with Bureau of Internal Revenue
(BIR):
- Steps include securing a Tax Identification Number
(TIN), registering business/trade name, getting a
mayor's permit, submitting certificates and articles of
incorporation/partnership, securing community tax
certificate, and registering books of accounts,
invoices, and receipts.
Market Strategy:
Registering with Department of Labor and
Employment (DOLE) and Local Government:
- Businesses with employees register with DOLE for
labor law compliance.
- All businesses must secure a Mayor's Permit or
Municipal License from the City or Municipality where
they are located.
WEEK 7
- Marketing Mix: Tailoring products/services through
product, price, promotion, and distribution.
- Advantage of Small Businesses:
- Personalized interaction with customers.
- Networking (offline and online) is crucial for
visibility.
- Networking: Vital for initial business recognition;
key for small business growth.
- Advertising: Both offline (print, flyers, vehicle tags)
and online (pay-per-click marketing) avenues.
- Growth Strategies:
- Market Penetration: Increase share in existing
markets.
- Market Development: Enter new markets with
current products/services.
- Product Development: Enhance current
products/services or develop new ones.
- Diversification: High-cost, high-risk strategy for
new products/services in new markets.
- Market Research:
- Definition: Gathering information to understand
customer reactions.
- Purpose: Inform business decisions regarding
startup, innovation, growth, and marketing strategies.
- Steps:
1. Identify potential customers.
2. Understand existing customers.
3. Set realistic targets.
4. Develop effective strategies.
5. Examine and solve business problems.
6. Prepare for business expansion.
7. Identify business opportunities.
Selecting the Target Market:
- Target market: Group with similar needs,
perceptions, interests, and brand inclinations.
- Importance: Essential for a focused marketing mix;
vital for small businesses lacking resources.
- Example: Kellogg's K Special targets obese
individuals, tailoring products to specific needs.
- Caution: Target market selection requires significant
analysis, discussion, and review.