THIRD QUARTER EAMINATION REVIEWER

Entrepreneurship
HUMSS 12 A | Ms. Jennifer Dela Cruz | Quarter 3 Week 1-
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CONCEPT OF ENTREPRENEURSHIP 6. GROWTH - Success in business.

ENTREPRENEURSHIP - is the process of discovering 7. UNIQUENESS – This theme suggested that

new ways of combining resources. The process of entrepreneurship must involve uniqueness.
creating something new and assuming the risks and
rewards. (PROCESS OF ACTION) 8. THE OWNER-MANAGER – Some of the
respondents questioned by Gartner (1990) did
ENTREPRENEUR - someone who “creates a new not believe that small mom-and-pop types of
business in the face of risk and uncertainty for the businesses should be considered to be
purpose of achieving profit and growth by identifying entrepreneurial. Some respondents felt that an
significant opportunities and assembling the necessary important element of the definition of
resources to capitalize on them” They are the ones who entrepreneurship was that a venture be owner-
act on their business ideas. Originated from the 13th managed.
French century verb, entreprendre, meaning “to do
something” or “to undertake.” (PERSON) FOUR ASPECTS OF AN ENTREPRENEUR
- derived from the Latin word: “Entre”- which
means enter, “Pre”-means before, and “Neur”- 1. INVOLVES CREATION PROCESS. Capability to
means a nerve center-a source of power or think of new ideas that will bring something useful
control. to the community.

ENTERPRISE - a company or business, often a small 2. REQUIRES DEVOTION OF TIME AND EFFORT.
one. (OBJECT) invest time and effort for more productive work.

Gartner (1990) identified 90 attributes that showed up 3. INVOLVES REWARDS OF BEING AN

in definitions of entrepreneurs and entrepreneurship ENTREPRENEUR. serves as the price for your
provided by entrepreneurs and other experts in the field. hard work.
The following are a few of these attributes:
● Innovation 4. REQUIRES ASSUMPTION OF NECESSARY
● Activities RISK. risk is always present. Having assumptions
● Creation of a new business will help the entrepreneur to be quite ready.
● Starts an innovative venture within an
established organization TEN QUALITIES OF A SUCCESSFUL
● Creation of a not-for-profit business ENTREPRENEUR

EIGHT ENTREPRENEURSHIP THEMES 1. DISCIPLINED - focused on making their business

work and eliminating hindrances or distractions to
1. THE ENTREPRENEUR - The entrepreneur their goal.
theme is the idea that entrepreneurship involves
individuals with unique personality 2. CONFIDENCE - confident with the knowledge that
characteristics and abilities (e.g., risk-taking, they will make their business succeed.
locus of control, autonomy, perseverance,
commitment, vision, creativity) 3. OPEN-MINDED - the ability to look at everything
around them and focus it toward their goals.
2. INNOVATION - The innovation theme is
characterized as doing something new as an 4. SELF-STARTER - knows that if something needs
idea, product, service, market, or technology in a to be done, they should start it themselves.
new or established organization.
5. COMPETITIVE - to win at the sports they play and
3. ORGANIZATION CREATION - The organization need to win at the business they create.
creation theme describes the behaviors involved
in creating organizations. 6. CREATIVITY - often come up with solutions which
is the synthesis of other items.
4. CREATING VALUE - This theme articulated the
idea that entrepreneurship creates value. 7. DETERMINATION - they look at defeat as an
opportunity for success.
5. PROFIT OR NONPROFIT - While for-profit
organizations are responsible for paying taxes 8. STRONG PEOPLE SKILLS – strong
based on their net income, nonprofit communication skills to sell the product and
organizations are exempt from paying income motivate employees.
tax. While nonprofits are not required to pay
taxes on net income, they are responsible for 9. STRONG WORK ETHIC - often be the first person
state and property taxes. to arrive at the office and last person to leave.

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HUMSS 12 A | Ms. Jennifer Dela Cruz | Quarter 3 Week 1-
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10. PASSION - they genuinely love their work and are
he was an Irish economist. the person who introduced
willing to put in extra hours to make the business
the term entrepreneur to the world.
succeed.
the entrepreneur is a specialist in taking on risk,
‘insuring’ workers by buying their output for resale before
IMPORTANCE OF ENTREPRENEURSHIP consumers have indicated how much they are willing to
pay for it.
ENTREPRENEURSHIP ACCELERATES ECONOMIC distinguished entrepreneurs from two other classes of
GROWTH. - creating new products and services economic agents; landowners, who were financially
stimulates new employment, which ultimately results in independent, and hirelings (employees) who did not
the acceleration of economic development. partake in the decision-making in exchange for relatively
stable incomes through employment contracts.
ENTREPRENEURSHIP PROMOTES INNOVATION. - described entrepreneurs as individuals who generated
entrepreneurs bring new innovation that opens the door profits through exchanges.
of new ventures, markets, products, and technology.
ADOLPH REIDEL (1809-1872) - picked up on
ENTREPRENEURSHIP CAN PROMOTE SOCIAL Cantillon’s notion of uncertainty and extended it to
CHANGES. - Basically, entrepreneurs are the pioneer of theorize that entrepreneurs take on uncertainty so
bringing new technologies and systems that ultimately others, namely income earners, do not have to be
bring changes to society. subject to the same uncertainty. Entrepreneurs provide a
service to risk-averse income earners by assuming risk
ENTREPRENEURSHIP PROMOTES RESEARCH AND on their behalf. entrepreneurs are rewarded when they
INDUSTRIAL DEVELOPMENT. - They cultivate their can foresee the impacts of uncertainty and sell their
ideas, shape them into a new form, and turn them into a products at a price that exceeds their input costs.
successful business endeavors.
FRANK KNIGHT (1885-1972) - founded the Chicago
ENTREPRENEURSHIP DEVELOPS AND IMPROVES School of Economics and belonged to the American
EXISTING ENTERPRISES. - they can come up with School of thought. refined Cantillon’s perspective on
innovative ways to expand and develop the existing entrepreneurs and risk by distinguishing insurable risk as
enterprises. something that is separate from uncertainty, which is not
insurable.
Knight said that entrepreneurs calculate the risks
DEVELOPMENT OF ENTREPRENEURSHIP associated with uncertain business situations and make
informed judgments and decisions with the expectation
The following timeline shows some of the most influential that if they assessed the situation and made the correct
entrepreneurship scholars and the schools of thought decisions, they would be rewarded by earning a profit.
(French, English, American, German, and Austrian) their
perspectives helped influence and from which their ideas Distinction Between Entrepreneur and Manager
evolved. JEAN-BAPTISTE SAY (1767-1832) - also from the
French School, advanced Cantillon’s work, but added
that entrepreneurship was essentially a form of
management.
made several contributions to entrepreneurship theory,
but another of note is how he distinguished an
entrepreneur from a manager. suggested that a manager
crosses the line to become an entrepreneur “when the
exercise of their judgment is liable to error, and they
assume the responsibility for its correctness”

Historical and Evolutionary Entrepreneurship Thought ALFRED MARSHALL (1842-1924) - was one of the
founders of neoclassical economics.
THE EARLIEST ENTREPRENEURSHIP saw capitalists as individuals who “committed
The entrepreneur is probably as old as the institutions of themselves to the capacity and honesty of others, when
barter and exchange. After economic markets became he by himself had incurred the risks for having
an intrusive element of society did the concept take on contributed with the capital” the reward capitalists
the pivotal importance. received for contributing capital as interest income, and
the reward entrepreneurs earned was profits.
DEVELOPMENT OF ENTREPRENEURSHIP AS A Entrepreneurship versus Entrepreneur
CONCEPT
ADAM SMITH (1723-1790) - published An Inquiry into
Risk and Uncertainty the Nature and Causes of the Wealth of Nations in 1776.
RICHARD CANTILLON (1680-1734) - born in France Smith did not dwell on a particular class of individuals.
and belonged to the French School of thought although He was concerned with studying how all people fit into

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the economic system. Smith contended that the
3. PERSISTENCE – never disheartened by failures.
economy was driven by self-interest in the marketplace.
He believes in the Japanese proverb “Fall seven
DAVID RICARDO (1772-1823) was influenced by Smith,
times, stand up eight.”
Say, and others. His work focused on how the capitalist
system worked. He explained how manufacturers must
4. INFORMATION SEEKER – always keep his eyes
invest their capital in response to the demand for the
and ear open and is receptive to new ideas which
products they produce. If demand decreases,
can help him in realizing his goals.
manufacturers should borrow less and reduce their
workforce. When demand is high, they should do the
5. QUALITY CONSCIOUSNESS – set high standards
reverse.
for themselves and then put up in their best for
achieving these standards.
CARL MENGER (1840-1921) - ranked goods according
to their causal connections to human satisfaction. Lower-
6. COMMITMENT TO WORK – are prepared to make
order goods include items like bread that directly satisfy
all sacrifices for honoring the commitments they
a human want or need like hunger. Higher-order goods
have made.
are those more removed from satisfying a human need.
Entrepreneurs coordinate these factors of production to
7. COMMITMENT TO EFFICIENCY – are keen to
turn higher-order goods into lower-order goods that more
evolve and try new methods aimed at making work
directly satisfy human wants and need
easier, simpler, better and economical.

SCHUMPETER (1934) - viewed innovation as arising

8. PROPER PLANNING – developing relevant and
from new combinations of materials and forces. He
realistic plans and ensure proper execution of the
provided the following five cases of new combinations.
same in their pursuit of attaining their goals.
1. The introduction of a new good – that is one
with which consumers are not yet familiar – or of
9. PROBLEM SOLVER – understand the problem and
a new quality of good.
then evolve appropriate strategy for overcoming the
2. The introduction of a new method of
problem.
production, that is one not yet tested by
experience in the branch of manufacture
10. SELF-CONFIDENCE – have full faith of their
concerned, which need by no means be founded
knowledge, skills and competence and not worried
upon a discovery scientifically new and can also
about future uncertainties.
exist in a new way of handling a commodity
commercially.
11. ASSERTIVE – assertive person knows what to say,
3. The opening of a new market, that is a market
when to say, how to say, and whom to say.
into which the particular branch of manufacture
of the country in question has not previously
12. PERSUASIVE – intellectual force used for
entered, whether or not this market has existed
convincing Others.
before.
4. The conquest of a new source of supply of
13. EFFECTIVE MONITORING – ensures regular
raw materials or half-manufactured goods,
monitoring of the work so that the goals of the
again irrespective of whether this source already
organization are achieved in the best possible
exists or whether it has first been created.
manner.
5. The carrying out of the new organization of any
industry, like the creation of a monopoly position
14. EMPLOYEE’S WELFARE – takes personal interest
... or the breaking up of a monopoly position
in solving problems, confronting workers, and
Another concept by Schumpeter – creative
generates the feeling that there is the
destruction. This was meant to indicate that
interdependence of the interest of workers and
the existing ways of doing things need to be
management.
dismantled – to be destroyed – to enable a
transformation through innovation to a new way
15. EFFECTIVE STRATEGIST – has the ability to
of doing things.
evolve relevant strategy, aimed at safeguarding or
promoting organizations' interests.
15 IMPORTANT ENTREPRENEURIAL TRAITS
ACCORDING TO DIVINA EDRALIN, 2016

1. INITIATIVE – entrepreneurship takes or initiates the

first move towards setting up of 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.

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Entrepreneurship
HUMSS 12 A | Ms. Jennifer Dela Cruz | Quarter 3 Week 1-
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PROS AND CONS OF ENGAGING IN ENTERPRISE
PROS CONS
- ENTREPRENEURS
BOOST ECONOMIC
GROWTH BY
INTRODUCING
INNOVATIVE
- Entrepreneurs face a
TECHNOLOGIES,
substantial risk of failure,
PRODUCTS,AND
and the costs are
SERVICES.
sometimes borne by
- INCREASED
taxpayers.
COMPETITION FROM
- Only a few people have
ENTREPRENEURS
the drive to become
CHALLENGES
entrepreneurs.
EXISTING FIRMS TO
- Entrepreneurship cannot
BECOME MORE
flourish in an
The overview consists of six historical periods where the COMPETITIVE.
over-regulated economy.
entrepreneurship contributors or scholars are cited - ENTREPRENEURS
based on their work. PROVIDE NEW JOB
OPPORTUNITIES IN
THE SHORT AND LONG
TERM.

Great entrepreneurs have the ability to change the way

we live and work. If successful, their innovations may
improve standards of living, and in addition to creating
wealth with entrepreneurial ventures, they also create
jobs and contribute to a growing economy.

Entrepreneurs Spur Economic Growth

- New products and services created by
entrepreneurs can produce a cascading effect,
where it stimulates related businesses or sectors
that need to support the new venture, furthering
economic development.

Entrepreneurs Add to National Income

- Entrepreneurial ventures help generate new wealth.
Existing businesses may remain confined to
existing markets and may hit the glass ceiling in
terms of income.
ENTREPRENEURS AND ENTREPRENEURIAL
COMPETENCIES Entrepreneurs Create Social Change
- Entrepreneurs break away from tradition and
1. Entrepreneurs Are More Intuitive Than Non- reduce dependence on obsolete systems and
Entrepreneur. technologies.
- Intuitive also means they tend to be
relatively non-conformist, preferring an Community Development
open-minded approach to problem-solving - Entrepreneurs regularly nurture ventures by other
and preferring less structured, more like-minded individuals. They also invest in
ambiguous, and random methods of community projects and provide financial support to
exploration. local charities.
2. Entrepreneurial Mindset
- “The ability to rapidly serve, act and
mobilize, even under uncertain conditions.”

Given the nature of the entrepreneurs’ decision-making

environment, they would often times think this way:
1. ACTUATE SELF-ASSESSMENT AND CHOOSE
COURSE OF ACTION
2. GENERAL MULTIPLE DECISION MODELS
- Capacity to think of a different plan that could be
part of their success.
3. LEARN FROM FAILURE

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HUMSS 12 A | Ms. Jennifer Dela Cruz | Quarter 3 Week 1-
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requires entrepreneurs to come up with more
products and services consumers can choose from.

CONCEPT OF ENTREPRENEURS TODAY AND

IDENTIFYING BUSINESS OPPORTUNITIES

ROLE OF ENTREPRENEURSHIP &

ENTREPRENEURS IN ECONOMIC DEVELOPMENT &
SOCIETY

1. CREATES EMPLOYMENT – they employ people

who possess different competencies and personal
values to help them operate the enterprise.

2. DEVELOPS NEW MARKETS – They seek new

buyers or customers of their products and services. A BRIEF HISTORY
Entrepreneurs have been around for as long as humans
3. INTRODUCES INNOVATION – entrepreneurs have been trading goods. This means they have been
innovate, this innovation is done for the product, integral to our social, economic, and behavioral
service, or technology towards commercialization evolution. entrepreneurs were thought to be born, not
and generates economic wealth. made. But this mindset began to change back in the
1950s when the concept of ‘entrepreneurial education’
4. GENERATES NEW SOURCES OF MATERIALS – came to fruition. The father of this concept was Frederick
always inconstant, search for better and cheaper Terman, a leading engineer at Stanford University, who
sources of materials they need. expressed frustration at constantly being overlooked for
funding.
5. STIMULATES INVESTMENT INTEREST IN THE
NEW BUSINESS VENTURES BEING CREATED – CHANGING FACE
it stirs curiosity in other people to invest in the a lot when it comes to the face of new business
business because of the benefits it offers. ventures. Information technology has been one of, if not
the most important social and economic drivers of the
6. IMPROVES THE QUALITY OF LIFE – new past half-century. Many ‘conservative’ countries have
products developed by entrepreneurs contribute to become increasingly socially progressive and open to
the increase in personal benefit and convenience of international trade.
the people in society.
East for ‘ease of doing business. already offers a
7. SERVES AS ROLE MODELS – attitude, behavior, relatively low-tax environment before the even less
and personality traits, like proactiveness, restrictive free zones are taken into account. The
opportunity recognition, risk-taking, alertness, and benefits for entrepreneurs have been startling.
creativity are some of the characteristics that will 1. TECH: Tech companies (e-commerce, software,
also make them successful entrepreneurs in their and technology) in the UAE made up 29% of new
life. businesses, according to the 2017 MENA Venture
Report. In the 1950s these were a distinct minority.
8. BRINGS SOCIAL BENEFIT TO THE PEOPLE – 2. DIVERSITY
entrepreneurs pay taxes for every product or 3. EDUCATION: reason, why entrepreneurs can start
service sold in the market. They also pay for the out younger, is the rise of entrepreneurial
licenses and permits to operate their business. education. Universities are now mixing out people
with the necessary skill sets and knowledge to hit
9. UTILIZES AND MOBILIZES INDIGENOUS the ground running.
RESOURCES - small and medium enterprises will 4. LOCATION: Technology also means it’s possible to
always look for cheaper and local materials to work from anywhere, at great speed, and at great
supply their needs. scale.
5. SOCIAL ETHICS: The aim is to build a socially
10. PROVIDES MORE ALTERNATIVES FOR conscious enterprise that returns something to
CONSUMERS – the stiff competition in the market society.
for quality and cheaper products and services

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CONCEPT OF ENTREPRENEURS TODAY
3. New Raw Materials
ACCORDING TO DIFFERENT FIELD EXPERTS
4. New markets (foreign tourists for alternative
medicine like acupuncture)
- ECONOMIST - someone who brings resources,
5. New Production Processes
labor, materials, and other assets into combinations
that make their value greater than before.
ENTREPRENEURIAL SOURCE OF STIMULATION
- PSYCHOLOGIST - a person who is “typically
driven by certain forces such as the need to obtain
1. EXTERNAL
or attain something, to experiment, to accomplish,
- Customer demands for new products and
or perhaps to escape the authority of others.”
services.
- MANAGEMENT - “someone who identifies
opportunities, plan, mobilizes resources, manages,
2. INTERNAL
and assumes the risks of a business”
- When an entrepreneur recognizes a problem or
opportunity gap and decides to fill it.
COMMON PROFILE DIMENSIONS
FOUR ESSENTIAL QUALITIES OF OPPORTUNITY
1. Calculated risk-taking - doing everything possible
to get the odds in their favor, and they avoid taking
1. ATTRACTIVE – Appealing product.
unnecessary risks.
2. DURABLE - ability of a physical product to remain
functional, without requiring excessive maintenance
2. Commitment - the unwavering dedication to work
or repair, when faced with the challenges of normal
for the common good of society through one
operation over its design lifetime.
business.
3. TIMELY – in demand or occurring at a favorable or
useful time
3. Feedback-seeking - taking steps to know how well
4. Create or add value for its user or end user.
they are doing and how they might improve their
performance.
WINDOW OF OPPORTUNITY - The time when a firm
realistically can enter into a market and attempt to
4. Perseverance - the determination to succeed by
establish a competitive position in the industry.
overcoming obstacles and setbacks.
HOW DO ENTREPRENEURS IDENTIFY
5. Drive to achieve - the internal desire to pursue and
OPPORTUNITIES?
attain challenging goals.
1. Observing trends from actual experience or market
research studies.
6. Self-confidence - the belief that together with other
2. Solving a problem and looking for solutions to solve it.
people, things can be done in the business.
SEVEN POTENTIAL SOURCES OF OPPORTUNITY
7. Opportunity orientation - the constant awareness
of opportunities that exist in everyday life.
1. THE UNEXPECTED - when situations and
events are unanticipated that might be an
8. Innovativeness - the ability to come up with
unexpected success or unexpected failure.
something different or unique every time.
2. THE INAPPROPRIATE - It happens when
9. Responsibility - their willingness to put themselves
inconsistencies occur.
in situations where they are personally responsible
for the success or failure of the business operation.
3. THE PROCESS NEED - the process of
discovery such as a process of research and
10. Tolerance – using failure as a learning experience
development
and being realistic enough to expect such difficulties,
so they do not become disappointed.
4. INDUSTRY AND MARKET STRUCTURES -
social value and customer taste can change the
IDENTIFYING BUSINESS OPPORTUNITIES
structure of an industry and this will give
ENTREPRENEURIAL OPPORTUNITY
entrepreneurs opportunities to innovate their
products or services.
- Favorable set of conditions that will enable the
entrepreneurs to create new products or services by
5. DEMOGRAPHICS - It is the statistical
combining resources that will result in the good of the
characteristics of human populations (such as
society and environment:
age or income) used especially to identify
1. New product (Medicine) or services (delivery of
markets
document or product)
2. New ways of organizing like special events or
6. CHANGE - These changes create potential
product launching
market opportunities to alert entrepreneurs.
- Online booking

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7. NEW KNOWLEDGE – comes out with new
1. Automated service
products and processes that can compete with
Ex: Automated Teller Machine (ATM), phone cards,
other products and can manipulate this kind of
vending machine, automated laundry, and many
knowledge.
more.
2. Services offered by unskilled worker
❖ Service – a type of business operation engaged in
Ex: Taxi, bus, and jeepney drivers, photo shops,
the rendering of services.
photocopying, and many more.
❖ Manufacturing - It involves the purchasing and
3. Services offered by skilled workers
converting of raw materials to finished goods.
❖ Trading or Merchandising – buying and selling of Ex: Computer and TV technicians, Watch
goods. It includes the process of managing and repairmen, and many more.
marketing the product.
❖ Start-up enterprise – recently formed company. A Based on people rendering services:
new business from scratch 1. Services offered by unskilled workers
❖ Buying an existing business - acquiring either the Ex: Security guard, janitors, plant grower, and many
shares of an existing company or all of the assets more.
of an existing enterprise. 2. Services offered by skilled workers
❖ Franchising - when the owner of the company that Ex: Rendered by repairing appliances such as
already has a successful product or service, television, radios, computers, and many more.
licenses its trademark, trade name, and methods of 3. Services offered by professionals
doing business to others in exchange for initial Ex : Dental services, health care services and legal
franchise fee and royalty payments. services.

Factors to consider before starting a business: II. Types of Organization

1. Focus and Direction - Should have a clear and 1. Profit Organizations - Services rendered by a
documented vision-mission and strategies to begin private firm such as banks, placement agencies
with. and food establishments usually operated for profit.
2. Sources of Capital - It can be from personal funds, 2. Non-profit Organizations - Organizations whose
family and friends, a retirement account, banks or main goal is to provide assistance to the people.
financial institutions, a government loan, stock
market. III. Types of Organization given by Sponsoring
3. Good Network - Building good relationships and Agency
work well with other people. - There are many agencies helping people by
4. Legal Requirements - Should know the laws and rendering services free of charge.
regulations that govern the type of business that will
be opened to avoid major problems that can arise if ❖ MANUFACTURING - A type of business engaged
legal requirements are overlooked. in the buying and selling of goods. It includes the
5. Degree of Risk – starting a business is risky when process of managing and marketing the product.
the chance of failure is high.
6. Research and Development - Should have a The two types of Merchandising are:
strong research and development to be undertaken 1. Retailing - Refers to selling goods and services
on creation of new technology-based ventures. directly to the final consumer.
7. Personal Competencies - Before running a 2. Wholesale - Wholesaling is the process of buying
business, an entrepreneur must know his/her products from manufacturers at a lower price.
capabilities. Competencies like creativity,
opportunity seeking, self-confidence, persistence, Activities related to retailing
commitment and risk-taking 1. Purchasing goods - the proper acquisition of
8. Availability of Resources - Resources like raw merchandise based on the wants and needs of the
materials, human resources, and people and their buying habits.
machineries/equipment should be in an adequate 2. Receiving and checking of goods – goods must be
level from the get-go of your business. checked as to weight, quantity, quality, and other
9. Other Critical Factors for New Venture specifications such as the expiration of the product, the
precaution, and the direction using the product.
TYPES OF BUSINESS ACTIVITIES /OPERATIONS 3. Pricing Merchandise - the value that the retailer sets
for the article for sale.
❖ SERVICE - A type of business operations engaged
in rendering of services. A. According to Forms of Ownership

Classified into 3: 1. Independent Stores - owned and operated by

I. Manner of Delivery one person, a family, or a group in the
community.
Based on materials used in rendering services:

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2. Company Stores - run by distinct interested
money, property, or industry to a common fund for the
people in the business.
purpose of earning profit.

3. Manufacturer’s outlet store - stores are owned

A corporation – is a form of business organization
by a manufacturing company.
managed by an elected board of directors.

4. Chain Stores - These groups of stores are

A cooperative – is an association of small producers
handling similar products and are operated by
and consumers who come together voluntarily to form a
the group owned by individuals, partnerships, or
business that they own, manage and patronize.
corporations.
The size of the enterprise is based on its total assets or
5. Consumer’s Cooperative - membership is
the number of employees who work for it.
voluntary. The profits are accumulated into funds
called savings.
ACCORDING TO SIZE

B. According to Levels of Service

1. Full service - a kind of service given by a certain

store to its customers.

2. Limited Service - The groceries are good

examples of this limited service.
ACCORDING TO OWNERSHIP
3. Self-Service - the customers are the ones who
choose the items, and compute for the prices up to
packaging.

C. According to Merchandise Line

1. General Stores - a retail store owned by an

individual or a family in a community. These retail
stores sell different commodities.

2. Specialty Stores - a single-line store that carries

related products.

3. Convenience Stores - a multi-line type of store ACCORDING TO INDUSTRY

that carry different items such as groceries,
cosmetics, and school supplies. ● Agriculture, Forestry, and Fishing - Exploitation
of Vegetable and Animal Resources.
D. According to Mode of Operation ● Mining And Quarrying - Extraction of Minerals
1. Television shopping Naturally as Solids
2. Internet Surfing ● Manufacturing - Physical or Chemical
3. Ordering by phone Transformation of Materials, Substances, or
4. Automated vending machines Components to New Products.
5. Mail-to-order shopping ● Electricity, Gas, Steam, and Air Conditioning
Supply - Providing Electric Power, Gas, Steam, Hot
The Key Benefits of Wholesale: the manufacturer Water, Etc.
chooses to sell his goods and products to the ● Water Supply; Sewerage, Waste Management,
wholesaler. Key benefits of wholesale if one is interested and Remediation Activities - Management of
in the wholesale business: Various Types of Waste
1. Saves Money ● Construction - General and Special Construction
2. Brand Creation and Propagation Works for Buildings and Civil Engineering.
3. Become an Expert ● Wholesale And Retail Trade Repair of Motor
4. Diversification Vehicles and Motorcycle - Wholesale and Retail
5. Build Supply Network Transactions and Rendering Services from These
Transactions.
Sole Proprietorship – a business owned and managed ● Transportation and Storage - Passenger and
by one person. Freight Transport
● Accommodation and Food Service Activities -
Partnership – a business organization owned and Short-Stay Accommodation for Visitors with
managed by two or more people who agree to contribute Provisions of Complete Meals and Drinks

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● Information and Communication - Financial
Service Activities Including, Insurance,
Reinsurance, and Pension Funding
● Real Estate Activities - Acting as Lessors, Agents,
Brokers for Real Estate Properties.
● Professional Scientific and Technical Activities -
Specialized Professional, Scientific, and Technical
Activities.
● Administrative and Support Service Activities –
Variety of Services That Support Business
Operations
● Arts, Entertainment, And Recreation - Cultural
Entertainment and Recreational Interests for The
General Public.
● Public Administration and Defense:
Compulsory Social Security - Enactment and
Judicial Interpretation of Law and Their Pursuant
Regulation.
● Education - Education at Any Level for Any
Profession.
● Human Health and Social Work Activities -
Provision of Health and Social Work Services from
Hospitals, Clinics, And Assistance from Social
Workers.
● Other Service Activities Includes Activities of
Membership Organizations, The Repair of
Computers and Personal and Household Goods
and A Variety of Personal Services Not Covered
Elsewhere in The Classifications.

GOVERNMENT SUPPORT AND LEGAL

REQUIREMENTS

GOVERNMENT SUPPORT
- The Small and Medium Enterprises (SMEs)
development council was created in 1991 to
integrate and synchronize various efforts and assist
in areas of finance, marketing, training and human
resource development, product development, and
technical assistance.

FINANCE
- For micro-enterprises, countless microfinance
institutions now proliferating throughout the country
are providing small but quick no-hassle loans that
require no collateral as an alternative to “five-six”
lenders which are actually loan sharks. 7PS OF MARKETING & MARKET RESEARCH

Selecting the Target Market - represents a group of

individuals who have similar needs, perceptions, and
interests.

Identifying specific target markets – and then

delivering products and promotions that ultimately

9
THIRD QUARTER EAMINATION
Entrepreneurship
HUMSS 12 A | Ms. Jennifer Dela Cruz | Quarter 3 Week
maximize the profit potential of those targeted markets –
is the primary function of marketing management for
many smaller companies.

Market Strategy - Small Businesses can gain a

competitive advantage over larger competitors by
tailoring their products or services to meet the demands
of the individual customer.
- you should take advantage of both offline and Marketing Management Practices are as follows:
online networking.
● Estimate potential market demand - look for facts
Market penetration - is a strategy for increasing your about the industry where the entrepreneur intends
share of existing markets. You might achieve this by to enter.
raising customers’ awareness of your products and ● Analyze the competitors – analyze the
services or finding new customers. competitor’s product or services, how much they
cost, how they are distributed, and how they are
Diversification - a strategy that usually carries high made known to the target market.
costs and high risks. It often requires firms to adopt new ● Price the products/services reasonably - Set
ways of doing business and so has consequences far your price, after considering all costs at an
beyond simply offering new products/services in a new affordable amount for your target market.
market. ● Adopt a good product name for branding -
Consider a name that creates a mental picture of
MARKET RESEARCH the image is and easy to remember.
● Put price tag - All goods being sold must have a
price tag.
- This is the process of gathering information that will ● Promote the products/services in various ways
make the company more aware of how the people, to increase sales – Products/Services of the firm
the company sells to, will react to the company’s need to be advertised in order to generate sales.
current or potential products or services. ● Attend to the complaints of customers
- An information gathering exercise to determine the ● Issue official receipts to customers - The official
viability or acceptability of a product or service receipts are one of the ways by which government
determines how much sales have been made by a
Importance of Market Research business establishment and how much taxes need
to be paid.
1. Identify potential customers
2. Understand existing customers ● Pack the goods bought by customers properly –
3. Set realistic targets each good must be packed properly and should be
4. Develop effective strategies packed separately depending on the type of goods.
5. Examine and solve business problems ● Observe the rights of customers – The
6. Prepare for business expansion government passed several laws to protect the
7. Identify business opportunities rights of consumers.

BRANDING AND MARKETING MANAGEMENT

PRACTICE

Branding - use of a name, term, symbol, or design, or a

combination of these to identify a product.

Trademark - can be any word, phrase, symbol, design,

or combination of these things that identifies your goods
or services.

Marketing – is the process of planning and executing

the conception, pricing, promotion, and distribution of
goods and services to create exchanges that satisfy
individual and organizational objectives.

To brand a product, it is essential to teach the customers

“WHO” the product is – by giving it a name and using
other brand elements to identify it as well as “WHAT” the
product does and “WHY” consumers should care.