ENTREPRENEURSHIP

LECTURE AND ACTIVITY SHEET

GRADE 11
Pros and cons of Entrepreneurship vs. Employment
Important Career Factors Entrepreneur Employee
1. Income  Income generated passively  Income generated actively (i.e.
even when the entrepreneur is on working hours only); no
resting work = no pay
 Opportunity income unlimited,  Income usually fixed per
depending on the success of month and increases every
the business. year depending on the
 Income only earned when the employer and the employee’s
business is successful performance
 Income earned whether the
business is successful or
unsuccessful
2. Hiring and Firing, Organizational Setup,  Provides jobs; is the owner of  Seeks for a job; is the one
and Major Key Result Areas the business and conducts the applying for a job and is
talent selection interviewed by the company’s
 Fully responsible for serving hiring officers
customers, making the  Has the goal of satisfying only
business the employer or the direct
profitable/sustainable, and supervisor
providing employee  Fully dependent on the
satisfaction. employer’s performance; is at
 Has the power to disengage risk of losing his or her job if
nonperforming employees the company does not perform
applying the due process well; may find it difficult to just
policy of disengaging leave their below par
personnel employer if this is their only
 Can venture into expansion of source of income
business such as franchising  Can only work for the current
and buying other similar employer exclusively
businesses
3. Daily Tasks  Performs all necessary variable  Has the routine tasks and
tasks to establish and manage works on regular or normal
a startup business, which hours
usually takes most of the  Follows policies, procedures,
entrepreneur’s time; spend and memoranda from the
more hours on work than a employer
regular employee and
sometime gets no sleep
 Prepares policies, procedures,
and memoranda for the
business
4. Leisure Time and Vacations  Has a flexible schedule and can  Has a limited number of
take unlimited number of vacation days imposed by the
vacation days (applicable only employer
if the business has stabilized
already)
5. Taxation  Taxed on the net income; can  Taxed on the gross income;
claim taxable income cannot use expenses incurred
deductions for allowable related to the job such as food
expenses incurred by the and transportation expenses
business to claim for deductions from
taxable income
6. Comfort level at Work  Is comfortable in doing  May be comfortable with
multiple and challenging tasks routines and minimal risks;
and takes accountability with may also be comfortable in
the risks and profits of the working for the company itself
business; does not want to be
confined in a box; thinks
outside the box or sometimes
thinks there is no box
Careers in Entrepreneurship

Entrepreneurship consists of vast career options depending on the passion and field of interest of the entrepreneur. The
saying “When you love what you do, it’s as if you are not working” is very much applicable to entrepreneurs who consider
managing their business as enjoyment rather than working exhaustively.

Here is the list of the most common small businesses in the Philippines.

1. Sari-sari store. There are approximately more than one million sari-sari stores in the Philippines. Situated in almost all
neighborhoods, these convenience stores provide affordable basic retail products to nearby communities. It is one of the
easiest businesses to set up due to the minimal capital required and because it can be managed at home, where the
business owner lives.

2. Rice retailing. Because rice is the staple food of Filipinos and other Asian countries, rice retailing business is very
common in the country.

3. Food cart business. This business is also very popular in the Philippines. The number of food cart businesses is not as big
as the number of sari-sari stores, but food carts are present in almost every populous location. They are usually located
inside or outside the malls, schools, parks, train stations, and offices.

4. Printing business. This business is also lucrative in the Philippines because the demand is very high. Usually situated near
schools and offices, printing businesses cater to the needs of students for their projects and also to offices for their
advertising and business requirements.

5. Buy-and-sell business. This business is one of the emerging businesses in the Philippines, and is not just done
traditionally in brick-and-mortar stores but also over the Internet. The influx of buy-an-sell Web sites has changed the
behaviour of how Filipinos exchange goods in the most efficient and practical way.

6. Street food business. Just like the food cart business, this kind of business is widespread in the Philippines. Street food
businesses are literally located in streets, selling almost the same food products being sold by food cart business.

7. Flea market business or tiangge. In this type of business, entrepreneurs set up a small space and sell any type of goods in
a palengke setup that is normally in an open space. Customers are more interested to buy from these flea markets because
they can bargain for the price.

8. Online selling business. This business deals with adding the Internet as a marketing and transaction channel for selling.
This is very similar with the buy-and-sell business, except that the focus is on selling existing and established products
online.

9. Cellphone loading business. More than 95% of Filipinos are prepaid mobile phone users, according to an article published
by the Philippine Daily Inquirer (2012). Moreover, 80% of Filipino households have access to mobile phones. This is the
reason why there are so many cellphone loading stations in the country.

10. Laundry and dry cleaning business. This type of business is often located at central business district and areas with
several condominiums and townhouses.

11. Hair styling and makeup business. One of the successful businesses in the Philippines is the hairstyling business, which
includes parlors and barber shops. Filipinos are generally conscious about proper grooming and hygiene, so that’s why this
business is profitable.

12. Spa, gym, and nail care business. One of the ways Filipinos cope with stress is by going to a spa. This business offers a
range massage treatments that can relax the stressed areas of the body, as well as other skin treatments such as facials
and body scrubs.

13. Video and photography business. This business requires talent in capturing precious moments of celebrators in
weddings, birthdays, anniversaries, graduations, and other important events.

14. Tutorial business. This business caters to students who are not able to catch up with their lessons, or those who just
want to be ahead in class. A tutorial business is composed of experts in a particular field who transfer their knowledge to
another for a fee.

15. Baking business. A lot of bakeries are present in almost all neighborhoods in the Philippines because bread is the
second staple food of Filipinos.
16. Web site development and design/blogging. The popularity of the Internet brought so many opportunities to Internet-
savvy budding entrepreneurs. In this business, the Web site developer conceptualizes and implements a Web site for
another business whose objective is to informs, persuade, and remind it’s customers. Blogging, although initially made as a
site to write your personal thoughts, has become a source of income by most online writers, depending on the writer’s
agenda.

17. Direct selling business. This business is also very common in the Philippines. It is a face-to-face selling of products by a
sales agent.

18. Car wash and car care business. You often see this business in large cities because of the proliferation of cars. In fact,
the demand for car care increases every year.

19. Bar, café, and restaurant. The number of foodies has increased because the Filipino palate became globalized. Filipino
consumers’ demand for variety and quality taste has evolved as well; thus, these businesses are continuously thriving.

20. Water station and LPG station. These businesses can never go wrong as they continuously serve households, supplying
them with their purified water and gas needs.

REFLECT UPON

What are the three businesses that you think you will be most successful at? Why do you say so?

BEYOND WALLS 1.3 “APPLY IT IN REAL LIFE”

Choose three successful entrepreneurs from different fields that you know of and are engaged in common small and
franchise businesses enumerated previously. Your goal is to understand the mindset of established entrepreneurs by
playing the role of an interviewer. Ask these three chosen entrepreneurs the following questions using the interview
method of research:

 What motivated you to become an entrepreneur?

 What do you think are your characteristics and competencies that made you a successful entrepreneur?
 Aside from the business that you have, what other businesses are you interested in?
 What do you think of being employed? Why didn’t you choose that path?
 Who are your top 3 entrepreneur role models? Why do you want to be like them?
 How much do you love your job?

Steepled analysis

The result of the STEEPLED scan will aid the entrepreneur in deciding what product or service to set up and whether this
new venture will succeed or not. The focus of this scan is only on the macroenvironment.

1. Socio-cultural factors. These factors represent a general view of a locality’s traditions, customs, beliefs, norms, and
perceptions. These factors affect how a person of the locality behaves and reacts to marketing and selling activities.

The entrepreneur should take note of the following sociocultural factors:

• Health consciousness

• Education level

• Attitudes toward imported goods and services

• Attitudes toward the person’s lifestyle

• Attitudes toward product quality and customer service

• Attitudes toward saving and investing

• Emphasis on safety

• Buying habits

• Religion and beliefs

2. Technological factors. These are composed of innovations of an existing technology or an invention of a new one mostly
on applied science and engineering research areas. Entrepreneurs should always be up-to-date with the technological
changes, as these are catalysts in improving a product or service or replacing them entirely.

The entrepreneur should take note of the following technological factors:

• Basic infrastructure level

• Rate of technological change

• Spending on research and development

• Technology incentives

• Legislation regarding technology

• Communication infrastructure

• Access to newest technology

• Internet infrastructure and penetration

3. Economic factors. These factors play a vital role in the scanning of marketing environment because economic factors
directly affect any business venture. These factors include income, expenses, and resources that can influence the cost of
doing business and generating income.

• The entrepreneur should take not of the following economic factors:

Growth rates Trade flows and patterns

Inflation rates Level of consumers’ disposable income

Interest rates Monetary policies

Exchange rates Fiscal policies

Unemployment trends Price fluctuations

Labor costs Stock market trends

Stages of business cycle

4. Environmental or ecological factors. These factors should be given much importance in conducting a business especially
when the world has already suffered severely from human-induced calamities.

The entrepreneur should take not of the following environmental factors:

• Weather

• Climate change

• Laws regulating environment pollution

• Air and water pollution

• Recycling

• Waste management

• Attitudes toward “green” or ecological products

• Endangered species

• Attitudes toward and support for renewable energy

5. Political factors. These factors are mostly induced by government policies and administrations, which can have a strong
effect in the entrepreneur’s business.

The entrepreneur should take not of the following political factors and examples:
 • Government stability and likely changes

• Bureaucracy

• Corruption level

• Tax policy (rates and incentives)

• Freedom of press

• Rule of law

• Government effectiveness

• Political rights

6. Legal factors. Related with political factors, legal factors are government laws and regulations that can restrict or allow
business activities.

The entrepreneur should take note of the following legal factors and examples:

• Anti-trust law

• Discrimination law

• Copyright, patents/intellectual property rights

• Consumer protection

• Employment law

• Health and safety law

• Data protection law

7. Ethical factors. These are the factors that will serve as an entrepreneur’s guide on how to be ethical in running the
business.

The entrepreneur should take note of the following ethical factors:

• Ethical advertising and sales practices

• Accepted accounting, management, and marketing standards

• Attitude toward counterfeiting and breaking patents

• Attitude toward development and well-being of employees

8. Demographic factors. These are the characteristics of the people in the target market.

The entrepreneur should take note of the following demographic factors:

• Population growth rate

• Age distribution and life expectancy rates

• Gender distribution

• Social classes

• Family size and structure

• Minorities
Name:______________________________________

Year & Section:____________________

Identify which among the following descriptions refer to entrepreneurs and which refer to employees. On the
blanks, write EN for entrepreneur and EM for employee.

_____1. Income is earned whether the business is successful or unsuccessful.

_____2. He or she is usually comfortable with routines and minimal risks.

_____3. He or she is fully responsible for serving customers, making the business profitable/sustainable, and
providing employee satisfaction.

_____4. He or she prepares policies, procedures and memoranda for the business.

_____5. He or she is fully dependent on the employer’s performance. If the company does not perform well,
he or she is at risk of becoming jobless.

_____6. He or she is comfortable in doing multiple and challenging tasks and takes accountability with the risks
and profits of the business.

_____7. Income is generated on working hours only.

_____8. He or she has a flexible schedule and can take an unlimited number of vacation days.

_____9. He or she is taxed on the gross income. Expenses incurred related to the job such as food and
transportation expenses cannot be used to claim for deductions from taxable income.

_____10. He or she has the power to disengage nonperforming employees, applying the due process policy of
disengaging personnel.

REFLECT UPON

According to International Entrepreneurship (www.internationalentrepreneurship.com), the Philippines is a highly

entrepreneurial country. The major driver for this entrepreneurial spirit is the prevalence of poverty. The highest
percentage of businessmen in the Philippines belongs to the small and medium enterprises (SMEs) and microenterprises,
which account for 99% of all business establishments.

1. What do you think are the challenges that a Filipino entrepreneur faces?

2. Despite the entrepreneurial spirit of the Filipinos, why do you think that many Filipinos remain poor and that the
disparity between the rich and the poor is still very high?

GUIDE QUESTIONS

1. Look at your community and find one social entrepreneur.

2. Discuss why you think he or she is classified as a social entrepreneur. What societal problem does he or she solve?

3. Find out if the social business enterprise is profitable.