Entrepreneurship

Grade 12
OBJECTIVES
• Discuss the relevance of the course;
• Explain the key concepts of common
competencies;
• Explain the core competencies in
Entrepreneurship; and
• Explore job opportunities for Entrepreneurship as
a career.
Famous Entrepreneurs:

Mark Zuckerberg – Chief

Executive Officer of
Facebook.
Net worth: 47.2 billion
Famous Entrepreneurs:

Steve Jobs – American

entrepreneur, industrial
designer, media proprietor
and investor. CEO and
founder of Apple.
Net worth: 10.2 billion
Famous Entrepreneurs:

Elon Musk – Chief

Executive Officer of Twitter
& CEO of Tesla
Net worth: 128 billion
Famous Entrepreneurs:

Henry Sy – Henry Tan Chi

Sieng Sy Sr. was a Filipino
businessman and investor. Born in
Fujian, he moved with his family
to the Philippines at age 12.
While his family returned to
China, he stayed behind and
founded ShoeMart, a small
Manila shoe store, in 1958.
Net worth: 2.6 billion USD
Famous Entrepreneurs:

Tony Tan Caktiong – the

founder and chairman of
Jollibee Foods Corporation,
and the co-chairman of
DoubleDragon Properties.
Net worth: 1.2 billion USD
Famous Entrepreneurs:

John Robinson Lim

Gokongwei Jr. –
owner/founder of Robinson
Malls, Universal Robina,
Mini-Stop, Cebu Pacific and
JG Summit Holdings.
Net worth: 5.8 billion
ENTREPRENEURSHIP AND
ENTREPRENEUR
Entrepreneurship is…
The act of creating a business while building and
scaling it to generate a profit.
An important driver of economic growth and
innovation.
What people do to take their career and dreams into
their hands and lead it in the direction of their own
choice.
About building a life on your own terms. No bosses. No
restricting schedules. And no one holds you back.
AN ENTREPRENEUR IS…
A person who sets up a business with the aim to make
a profit and creates a new business, bearing most of
the risks and enjoying most of the rewards.
The term “entrepreneur” comes from the French
word “entreprende” which means “to undertake”

An innovator
Playing a key role in any economy, using the skills and
initiative necessary to anticipate needs and bring good
new ideas to market.
 Types of
Entrepreneur
 1. MEGAENTREPRENEURS

Individuals who are willing to

absorb huge risks of using
enormous amounts of capital
in their business ventures.

BILL GATES - FOUNDER OF MICROSOFT

2. MICROENTREPRENEURS

Individuals who are engaged

in micro or small businesses
as an alternative formal
employment.
 RELEVANCE OF ENTREPRENEURSHIP
TO SHS STUDENTS
1. To prepare students for
livelihood even before college
2. Entrepreneurship in education
aids students from all
socioeconomic backgrounds to
think outside the box and nurture
unconventional talents and skills.
 RELEVANCE OF ENTREPRENEURSHIP
TO SHS STUDENTS
4. It exposes students to
numerous opportunities to learn
how to think critically and analyze
the pieces on the board.
5. Being aware of all the
important factors and seeing how
they affect each other is the
foundation of a smart
decision-making process.
 RELEVANCE OF ENTREPRENEURSHIP
TO SHS STUDENTS
6. Students must be exposed to
real-world examples and learn
from their own experience.

7. Entrepreneurship education
requires students to be innovative,
collaborative, and creative with
others.
 RELEVANCE OF ENTREPRENEURSHIP
TO SHS STUDENTS
8. Entrepreneurship education
provides budding entrepreneurs
with the skills and knowledge to
come up with business ideas and
develop their own ventures.
Josh Mojica, the owner
of Kangkong Chips. One
of the youngest
entrepreneur in the
Philippines.
 JOB OPPORTUNITIES FOR
ENTREPRENEURSHIP AS A CAREER.
Business consultant Talent recruiter
Sales Business reporter
Not-for-profit fundraiser New venture creation
Teacher Career in existing
entrepreneurial ventures
Research and development
 IMPORTANCE OF ENTREPRENEURSHIP
Providing values
to customers
Opening and
Wealth-creating
managing
venture
self-owned
ENTREPRENEURSHIP business

Art of correct Risk-taking

practices venture
 IMPORTANCE OF ENTREPRENEURSHIP
1. Entrepreneurship is an art of
correct practices.

Ask yourself:
1. Is creativity present in the operation of ordinary
small businesses along the streets and highways and
in your neighborhood?

2. Will you consider the daily business practices of the

small business owner within the concept of
entrepreneurship? Why?
IMPORTANCE OF ENTREPRENEURSHIP
2. Entrepreneurship is a wealth
creating venture

Ask yourself:
1. Is your small business a wealth creating venture or
an income generating enterprise?

2. Does your business help improve your life?

 IMPORTANCE OF ENTREPRENEURSHIP
3. Entrepreneurship Entails
Opening and Managing the
Self-owned enterprise

Ask yourself:
1. Do you know someone who owns a small business?
2. Does he/she personally manage his/her own
business? How?
3. Do you think he/she is an entrepreneur or an
ordinary small businessperson? Why do you say so?
IMPORTANCE OF ENTREPRENEURSHIP
4. Entrepreneurship provides
Valuable Goods and Services

Ask yourself:
1. Is your product service valuable?

2. How will you make your product service valuable

to your target market?
IMPORTANCE OF ENTREPRENEURSHIP
4. Entrepreneurship is a
risk-taking venture

Ask yourself:
1. Are you a risk-taker or not?

2. How do you face or avoid risk?

LESSON ASSESSMENT
WRITE TRUE IF THE STATEMENT IS CORRECT. OTHERWISE FALSE AND STATE YOUR REASON BRIEFLY

_____ 1. Entrepreneurial principles are fixed in a person’s character.

_____________________________________________________________________________________________________
_____ 2. Creativity and innovation denote status quo in appearance, procedure or practice.
_____________________________________________________________________________________________________
_____ 3. The primary objective of any business endeavor is profit.
_____________________________________________________________________________________________________
_____ 4. Increase the level of wealth of the entrepreneur means improvement in his/her economic status.
_____________________________________________________________________________________________________
_____ 5. The entrepreneur seeks a wealth-creating venture rather than a profit-generating venture.
_____ 6. Values or additional features added to products or services are also valuable to the customers.
_____________________________________________________________________________________________________
_____ 7. Everybody is a potential customer of a business venture.
_____________________________________________________________________________________________________
_____ 8. Business ventures under the direct supervision of the manager and not the owner fall within the strict concept of
entrepreneurship.
____________________________________________________________________________________________________
_____ 9. Government programs on entrepreneurship are mainly focused on small businesses.
_____________________________________________________________________________________________________
_____ 10. Entrepreneurs find ways to avoid business risk.
_____________________________________________________________________________________________________
Write a summary for today’s lesson;

I learned that;
______________________________________________

I realized that;
______________________________________________
Scenario:
Its year 2020, and the Corona Virus has spread
worldwide, shutting down businesses and
establishments which is the main source of
income for many people.
These two friends, Al and Ed, are aspiring
entrepreneurs and they want to start a business
that might help them sustain their tuition fees in
school. what do you think are the competencies or
core competencies they might need to enhance to
finally work on their pans, can you give one?
 PERSONAL
ENTREPRENEURIAL
COMPETENCIES
 PERSONAL ENTREPRENEURIAL COMPETENCIES

THREE CLUSTERS:

● ACHIEVEMENT
● PLANNING
● POWER CLUSTER
ACHIEVEMENT CLUSTER
● OPPORTUNITY SEEKER
● PERSISTENCE
● COMMITMENT TO WORK CONTRACT
● RISK TAKER
● EFFICIENT AND QUALITY-ORIENTED
PLANNING CLUSTER

● Goal setting
● Information seeking
● Systematic planning and monitoring
POWER CLUSTER

● Persuasion and networking

● Self-confidence
 Based on the situation, what do you
think are the competencies that made
Al and Ed an exceptional young
entrepreneurs?
RECOGNIZE THE
POTENTIAL
MARKET
 ENVIRONMENT
AND MARKET
● What do people need?
● What products and services are available
in the market?
● How are they made or delivered?
FACTORS TO BE CONSIDERED IN PURSUING A BUSINESS

● Manpower
FACTORS TO BE CONSIDERED IN PURSUING A
BUSINESS IN COMMERCIAL COOKING

● Capital
FACTORS TO BE CONSIDERED IN PURSUING A
BUSINESS IN COMMERCIAL COOKING

● Technology
FACTORS TO BE CONSIDERED IN PURSUING A
BUSINESS IN COMMERCIAL COOKING

● Market
FACTORS TO BE CONSIDERED IN PURSUING A
BUSINESS IN COMMERCIAL COOKING

● Availability of
Supplies
 DEVELOPING A
BUSINESS PLAN
● a business plan is a comprehensive
paper that details the marketing,
operational,human resource,
financial, strategic direction, and
tactics of the business.
STEPS IN FORMULATING A BUSINESS PLAN
1. Make a list of a possible business product

● is there a demand for the product

or service you plan to offer?
● are materials or supplies for your business readily available
in your community? (the price of your products will also
depend on the cost of transportation of materials and
supplies to your business.
STEPS IN FORMULATING A BUSINESS PLAN
2. Make a survey of the needs and wants of people in
your community.

● monthly income of the person.

● how they divide and allocate their budget according to

the things they buy.
● what they do for leisure?

● items that they buy.

STEPS IN FORMULATING A BUSINESS PLAN
3. Assess your potentials

● what are my strengths and interests?

● do I have enough amount of capital to start my
business?

now start listing down your traits, skills,

interests and hobbies, plus the personality
traits tests. Business needs a lot of patience
and understanding.
STEPS IN FORMULATING A BUSINESS PLAN
4. Make a research of marketable product in the
community
● compare the products with the items in your list
● what are the things you can offer that all the products
do not have?
● why is your product better?
● is your product practical and realistic?
now you can narrow down the list of
products you plan to offer based on these
considerations.
STEPS IN FORMULATING A BUSINESS PLAN
5. Conduct SWOT Analysis.
 INTERNAL

HELPFUL
HARMFUL

EXTERNAL
● Experienced workforce
● Adequate capital is invested in
the business
● The business is located in a area
with much foot traffic

● The establishment is old and

looks outdated
● There is limited space inside the
premises, thereby limiting the
number of customers it can
accommodate
● There is strong support from the
local government for small and
medium enterprises to expand.

● New methods of food production that are

better and more efficient are coming out
● New technologies are available and are
used by competitors
 Opportunity Spotting and Assessment:
● considered as the most difficult
● entrepreneurs take note of interesting trends in the environment
● consumers are reliable sources of opportunity information.

Other sources of opportunity;

● problems in the environment
● problems encountered by the entrepreneurs
● new trends
 Other Minor sources of opportunity;
● feedback from the business retailers, wholesalers, manufacturers
and the technical people
● estimation of opportunity through length, capitalization, threats
and profitability.

● entrepreneurs should already think in advance how they will

position the product service in the market.
Scanning the Marketing Environment
● starting point of any new venture that involves understanding and
knowing complexity of the environment.
● recognize various opportunities and understand thoroughly the
arena where the business will operate
 Factors in the business environment
● Business environment - comprises the
both internal and external factors that
affect or influence the operation of a
business.
INTERNAL

Internal factors - refer to anything(tangible or intangible)

that are within the control of the enterprise.
HELPFUL HARMFUL

External factors - are factors outside the company

and on which the company has no control.
EXTERNAL
The most common INTERNAL FACTORS that
influence the operation of the business are:

● Human resources
● Capital resources
● Technological resources
Human resources Capital resources
The people within the company. No business can survive without the
capital.
Technological
Resources
The physical and organizational
structures and facilities needed to
run the business are the
infrastructure that the company
should invest in.
 The most common EXTERNAL
FACTORS in the business are:

● Human resources
● Capital resources
● Technological resources
Political and Legal
factors

● tax policy,
● trade policy, or foreign
trade policy
Social and Cultural Factors
● consumers' lifestyles,
● buying habits, education,
● religion
● beliefs
● values
● demographics
● social classes
● sexuality and
● attitudes.
Economic Factors
○ consumer confidence
○ employment
○ interest rate and
○ inflation
What are the internal factors in the
business environment?

What are the external factors in the

business environment?
Conduct SWOT Analysis on your
community. Choose a food establishment
in the area and study its Strength and
Weaknesses. The group will also be able
to identify the opportunities and threats
that the business may explore. The
analysis will be submitted after the class
discussion in a Portfolio
Entrepreneurship
THE 7 P’S OF MARKETING IN THE FIELD OF
ENTREPRENEURSHIP

● Product;
● Place;
● Price;
● Promotion;
● People;
● Packaging; and
● Positioning

Develop a brand name

Product

● the product is only produced once there

is an existing need or want
● the product must satisfy the need or want
better than the competing products
Place

● place of the business and the target

consumer.
PRICE

1. Availability of the competing products

2. cost of making the product
3. type of product
4. presence of substitute products
5. stages of the product in the market
6. demographic profile of the target
consumers
PROMOTION
1. Advertising
2. Publicity
3. Personal Selling
4. Sales promotion
5. Direct marketing
PEOPLE
1. employees or workers who are directly
involved in the production.
PACKAGING
1. Wraps
2. containers
3. labels
4. should serve as the protection of the
product from spillage, damage or spoilage
POSITIONING
In terms of Marketing Mix
1. Customer satisfaction for product
2. customer convenience for place
3. customer cost lowered
4. customer information for promotion
5. customer quality assurance for people
6. customer safety for packaging
7. customer decision for positioning
DEVELOP A BRAND
NAME
 THE PRODUCTION
SYSTEM
PRODUCTION
INPUT OUTPUT
PROCESS
 PRODUCTION PROCESS (input)
1. Procurement or acquisition of raw materials and
manufacturing supplies.
2. inspection of materials and supplies upon receipt at the
receiving section.
3. storage of acquired materials and supplies
4. issuance of materials and supplies to the production line
5. inspection of damaged or broken goods and assessment of
losses.
6. rework or repair of productive goods
7. transfer of finished goods to the storeroom.
THE 4 M’S OF OF OPERATIONS IN RELATION TO THE
BUSINESS OPPORTUNITY

● manpower
● methods OUTPUT
● machine
● material
Manpower:
● education
● status
● number of workers required for the job
● skills and expertise
● appropriate time the worker is needed
● background checking
● amount of salary
● availability of potential workers
Method
● product to produce
● mode of production
● manufacturing equipment to use
● required skills to do the work.
Mode of Production

●intermittent product system

● continuous product system
● just-in-time product system
 Machine
● types of products to be produced
● production system to be adopted
● cost of the equipment
● capacity of the equipment
● availability of the spare parts
● efficiency
● skills
 Materials
● cost
● quality
● availability
● credibility of suppliers
● waste that the raw materials may
produce.c
 Performance Task:
Create a Business Plan;
Calculate the Cost of
Production
● PURCHASE COST
● SELLING PRICE
How to calculate for the
purchase cost?
● Simply add all the expenses for
the items/ ingredients for your
business.
 Recipe Cost Sheet
INGREDIENTS MEASURE PURCHASE ACTUAL COST OF
COST INGREDIENTS
Chicken 1 kg 220/kg 220/kg
Rice 1 kg 70/ kg 70/kg
Soy sauce 200 ml 12 pesos 12 pesos
Lime/ Kalamansi 5 pcs 2 pesos/piece 10 pesos/ pc
Oil 1 liter 105/ liter 105/ liter
Seasonings — 20 pesos 20 pesos
Coal 5 packs 20/ pack 100
total:
● Assuming that 1 kg of chicken, is 7
pcs tigh part, therefore your
solution should be;
 How to get the Peso and
Percent Markup?
● PMU= SP-CP ● %MU= PMU/CP
= 115.01-76.71 = 115.01/76.71
= =
SELLING PRICE COST PRICE PESO MARKUP % MARK UP

115.01 76.71

130 76.71
ITEMS SELLING COST PRICE PESO % MARK
PRICE MARKUP UP
Banana Cake 175.00 350.00
Carrot Cake 185.00 375.00
Chocolate 395.00 650.00
Cake
Yema Cake 385.00 650.00
Red Velvet 450.00 550.00
Cake