The Ideals Of Entrepreneurship In Small Business Commerce Essay

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The country has an increasing figure of entrepreneurs who incubate business ideas for small to medium-scale industries (SMEs). For an underdeveloped country like the Philippines, the growing number of (SMEs) owned by entrepreneurs is a good economic indicator. Thus, SMEs are considered to be the "economic backbone" of the nation. This increasing number of small to medium-scale industries (SMEs) initiated the Department of Trade and Industry to create its official definition in accordance to assets and/or number of employees. According to RA 8289, otherwise known as the Magna Carta for Small Enterprises, an SME is any business activity or enterprise, engaged in industry, agri-business and/or services, whether single proprietorship, partnership, cooperative or corporation whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity's office, plant and equipment are situated must have value falling under the following categories.

Table 1 How Enterprises Are Classified (2001)

Size Assets (in pesos)

Employment

Examples

Large - Above 100,000,000

200 and above employees

Airlines, transport businesses

Medium-15,100,000-100,000,000

100-199 employees

Garment factories, supermarkets

Small-3,100,000-15,000,000

10-99 employees

Groceries, bakeshops, restaurants

Micro- Up to 3, 000,000

1-9 employees

Sari-sari stores

Source: Department of Trade and Industry

Micro, small and medium enterprises comprise 99.40% of total number of business establishments in the Philippines. In the SME setting, wholesale and retail and manufacturing enterprises are the two largest segments according to number of firms. The service segment like hotels and restaurants, transport, storage and communication, finance, real estate, among others make up a bulky share of total SME firms.

Figure 1 Percentage of SMEs against Large Corporations (2001)

Micro Finance

91.6%

Small Enterprises

7.6%

SMEs

99.4%

Medium Enterprises

0.4%

Large Enterprises

0.4%

Source: Department of Trade and Industry

Enrich your knowledge:

Entrepreneur came from the French word "entreprendre" which stands for "to undertake".

In the business environment "entrepreneur" denotes "to start a business enterprise".

An entrepreneur differs from a business owner in terms of innovation, risk, quantity of wealth creation, and pace of wealth creation.

The growing number of (SMEs) owned by entrepreneurs is a good economic indicator of an underdeveloped country like the Philippines.

Under the Magna Carta for Small Enterprises, there are four classifications of SMEs namely large, medium, small and micro based on the size of the assets and the number of employees.

Enlighten your knowledge:

Activity 1

Write T if the statement is correct and F is the statement is incorrect.

The idea of entrepreneur came from the French word "entreprendre".

Innovation, risk, quantity of wealth creation, and pace of wealth creation are the factors that differentiate an entrepreneur from a business owner.

An entrepreneur is already satisfied with just replacing his traditional income from being an ordinary employee.

For competitive advantage effecting to wealth creation, an entrepreneur does not greatly involved himself with innovation.

An entrepreneur provides employment for others, especially in rural areas or regions.

Department of Trade and Industry created the official definition of entrepreneur in accordance to assets and/or number of employees.

Small and medium enterprises are considered to be the "political backbone" of the nation.

Micro, small and medium enterprises comprise 9.4% of total number of business establishments in the Philippines.

Wholesale and retail and manufacturing enterprises are the two largest segments according to number of firms under SME setting.

The service segment makes up a large share of total SME firms.

Activity 2

Match Column A with Column B by drawing a connecting line.

Column A

Column B

1.

medium

a.

1-9 employees

2.

large

b.

10-99 employees

3.

micro

c.

100-199 employees

4.

small

d.

200 and above employees

5.

SMEs

e.

"economic backbone" of the nation

6.

official definition of entrepreneur

f.

Magna Carta for Small Enterprises

7.

RA 8289

g.

service segment

h.

Dept. of Trade and Industry

Activity 3

Write the letter of your best choice on the blanks provided before each number.

_____ 1. The idea of entrepreneur came from the French word "entreprendre" which stands for_____.

"to undertake"

"to be taken"

"to take away"

"to have been taken"

_____ 2. _____ find their opportunities in taking risks by pursuing ideas different from what are currently in the market.

Owners

Entrepreneurs

Managers

Workers

_____ 3. The growing number of (SMEs) owned by entrepreneurs is a good _____indicator.

political

economic

technological

social

_____ 4. Micro, small and medium enterprises comprise _____of total number of business establishments in the Philippines.

49.99%

99.40%

66.99%

96.69%

_____ 5. The ________ created the official definition of entrepreneur in accordance to assets and/or number of employees.

Department of Agrarian Reform

Department of Health

Department of Trade and Industry

Department of Tourism

_____ 6. Under the Magna Carta for Small Enterprises, there are four classifications of SMEs namely large, medium, small and micro based on_____________.

the size of the assets

the number of employees

the size of the assets and the number of employees

the number of the assets and the size of employees

_____ 7. For an/a _____country like the Philippines, the growing number of (SMEs) owned by entrepreneurs is a good economic indicator.

underdeveloped

developed

overdeveloped

developing

_____ 8. There are how many employees does a business under micro classification has?

200 and above employees

100-199 employees

10-99 employees

10-99 employees

_____ 9. What segment makes up a large share of total SME firms?

service

manufacturing

retailing

wholesaling

_____ 10. How much is the amount of assets a medium business enterprise has?

Above 100,000,000

15,100,000-100,000,000

3,100,000-15,000,000

Up to 3, 000,000

Activity 4

Bring to class the following materials:

old newspapers

cartolina with white background

art papers of different colors

glue

scissors

Form small groups. Imagine that your group is given the task to establish business enterprises that could generate considerable income under the small, medium or micro categories in the community where you reside. Each member of the group must put up an enterprise of his interest. Using the materials brought to class; make a layout of this community.

Activity 5

Make a diorama using a shoe box on the type of small business you are interested in; that if given opportunity someday you will be putting up. Be sure to place a brief description of the business and your reason of establishing it at the back of the box. Show your work to the class and ask suggestions from your classmates for the betterment of your intended business.

Empower your knowledge

It's summer time. You are able to save two hundred pesos from your allowances. You are interested in having a small business to earn income this summer. The family is having a hard time this year. In fact they are already thinking on where to source out fund for the school supplies they will buy for the opening of the class. How will spend your summer in an intelligent way? How will you help your parents with their financial problem?

People who are truly inspiring...

William S. Go of PriceMart

Willian S. Go learned business from his father first, working as a child in the family's "Fat & Thin" enterprise where he grew up in the champoy and butong pakwan factory.

His first business was a bangus fish pond, but he earned his first millions from the ramie fiber venture. His other supermarket outlet called Cost-U-Less has the express grocery store concept and is expected to rival the Expresslane of Rustan's.

According to Go, each Cost-U-Less exp ress outlet has an investment of P3 million.

"We are not thinking of competing against Rustan's. We are just doing our job," he added.

Together with PriceSmart and Cost-U-Less, Go has 700 employees. To his staff, Go's primordial concern is for them to be always honest.

Go, whose family hailed from Cebu, calls himself a Cebuano. He even put up Cebu Lechon, which delivers lechon, as a hobby because he is a big fan of the Cebu Lechon. He also operates a resort hotel in Cebu. Go does not like the limelight, he would rather spend his mornings at the Cost-U-Less and the afternoons with PriceSmart, he also play golf twice a week.

Go's intensity as businessman could have been tempered by the legacy of his grandfather who served as an elder in the United Evangelical Church. Asked as to the secret of his success as a businessman, the 52-year old businessman summarized it in "hardwork, hardwork and hardwork." (http://www.entrepreneursuccessblog.com)

Lesson 73 Entrepreneurship Role in the Economic Growth

Picture of a small store linking it to BIR

Objectives:

To know the meaning of entrepreneurship.

To identify the role of entrepreneurship in the growth of the economy.

To distinguish the different significant roles entrepreneurship plays in the economic growth.

Enkindle your knowledge:

Imagine the sari-sari store near your home, where you buy your shampoo, toothpaste, styling gel and even cotton buds. Now, try to picture yourself looking for this store one day. It's nowhere to be found, because it transfers to the nearby subdivision. How will you feel? What will be your reaction?

Enhance your knowledge:

Entrepreneurship is an economic process of putting together all inputs (labor, materials and capital) innovatively for creating value to the customers with the intention of generating huge profit resulting to wealth creation. This new combination of inputs results to creating an enterprise is done by an individual called the "entrepreneur".

When an entrepreneur introduces a new product, a new firm or a new process it can be interpreted as an entrepreneurial act that may fulfil needs of would-be customers. An entrepreneur being an innovator easily recognizes an unseen income opportunity and takes the risk of venturing into said prospect though it also has the chance of failure. Entrepreneurship plays a significant role in a healthy economic development of a nation through the following:

Filling in basic needs-Individuals whether young or old, male or female, rich or poor require the basic needs of food, clothing and shelter for survival. Enterprising individuals are able to meet the needs of people in a certain community through their innovative ideas. Sari-sari stores, ready-to-made dresses, and repair shops are good examples of enterprises that meet the basic needs of people.

Enhancing quality of life-Innovations coming from creative minds of entrepreneurs does not only fill-in basic needs but also bring comfortable life to people in a particular locality. Through technology enterprising individuals bring enjoyment to people like the sing-along microphone, Internet services, and turbo broiler.

Job generation-Entrepreneurs give employment for people in the community. Employed individuals are able to provide for the basic needs of their families and offer comfortable lives for their loved ones. Thus, enhancing the lives of people in that locality. By putting up businesses in rural areas where needed resources are available, entrepreneurs help decongest the cities because people will no longer go to cities to look for jobs.

Even distribution of income-Income distributed evenly brings more money for the people to acquire the goods and services that they need. In this way, more income are earned by businesses, greater number of individuals are employed, more goods and services are created which bring comfort to the society as a whole. Greater number of people involved in businesses, lessens the chance of the same people getting richer than the others, thus reducing the gap between the poor and the rich.

Help the government in the form of taxes-Business establishments annually pay taxes to the local government for the goods and services offered. Taxes paid are used for infrastructures like building roads and bridges, schools, and medical facilities.

Enrich your knowledge:

Entrepreneurship is an economic process of putting together labor, materials and capital innovatively to generate profit for wealth creation.

The innovative combination of labor, materials and capital is done by an individual called the "entrepreneur".

Entrepreneurship plays a significant role in a healthy economic development of a nation through filling in basic needs, enhancing quality of life, job generation, evenly distributing income and helping the government in the form of taxes.

Entrepreneurs help decongest the cities because people will no longer go to cities to look for jobs.

Greater number of people involved in businesses, reduces the gap between the poor and the rich.

Enlighten your knowledge:

Activity 1

Write T if the statement is correct and F is the statement is incorrect.

Inputs use for creating value to the customers includes labor, materials and capital.

Innovations coming from creative minds of entrepreneurs do not only fill-in basic needs but also bring comfortable life to people in a particular locality.

Entrepreneurs give employment for people in the community.

Sari-sari stores, ready-to-made dresses, and repair shops are good examples of enterprises that meet the basic needs of people.

Greater number of people involved in businesses, lessens the chance of the same people getting richer than the others.

Introduction of a new product, a new firm or a new process cannot be interpreted as an entrepreneurial act that may fulfil needs of would-be customers.

More income earned by businesses, bring less comfort to the society as a whole.

Enterprising individuals are able to meet the needs of people in a certain community through their unrealistic ideas.

Business establishments annually pay taxes to the foreign government for the goods and services offered.

An entrepreneur being a risk taker easily recognizes an unseen income opportunity.

Activity 2

Match Column A with Column B by drawing connecting lines.

Column A Column B

entrepreneurship a. roads and bridges, schools, and medical facilities

new combination of b. do entrepreneurial acts

inputs

entrepreneur c. labor, materials and capital

examples of enterprises d. new product, a new firm or a new process

technology e. meet the basic needs of people

taxes f. results to creating an enterprise

entrepreneurial act g. sari-sari stores, ready-to-made dresses, and

repair shops

h. sing-along microphone, Internet services, and

turbo broiler

Activity 3

Write the letter of your best choice on the blanks provided before each number.

_____ 1. Entrepreneurship is an economic process of putting together all inputs. Which of the following is not an input?

labor

materials

capital

none of these

_____ 2. The innovative combination of labor, materials and capital is done by an individual called the ________.

"entrepreneur"

"business manager"

"business owner"

"business partner"

_____ 3. Through _____enterprising individuals bring enjoyment to people like the sing-along microphone, Internet services, and turbo broiler.

innovations

technology

advancement in Science

business partnership

_____ 4. Entrepreneurship plays a significant role in a healthy economic development of a nation. Which of the following is a contribution of entrepreneurship in the society?

through filling in basic needs

enhancing quality of life, job generation

helping the government in the form of taxes

all of these

_____ 5. An/A _____being an innovator easily recognizes an unseen income opportunity and takes the risk of venturing into said prospect though it also has the chance of failure.

entrepreneur

business manager

business owner

business partner

_____ 6. ______paid are used for infrastructures like building roads and bridges, schools, and medical facilities.

Taxes

Bills

Expenses

Miscellaneous

_____ 7. Greater number of people involved in businesses, reduces the gap between what type of people?

big and small

young and old

beauty and the beast

poor and the rich

_____ 8. By putting up businesses in _____areas where needed resources are available, entrepreneurs help decongest the cities because people will no longer go to cities to look for jobs.

urban

rural

cosmopolitan

both urban and rural

_____ 9. An entrepreneur being an innovator takes the risk of venturing into prospect though it also has the chance of _____.

success

sadness

failure

both success and failure

_____ 10. More income earned by businesses, bring _____to the society as a whole.

happiness

comfort

success

enjoyment

Activity 4

Gather yourselves into groups. Role-play the different significant roles that entrepreneurship plays in your own respective community. Alternately let each group identifies this particular role. With the use of audience impact, choose the best group that portrays realistically this role.

Activity 5

Select one topic of your choice from the topics listed below. Develop an essay of three to four paragraphs about the topic chosen.

The role of entrepreneurs in the Philippine economy

The best contribution of entrepreneurs to our economy

Importance of entrepreneurship in our economic growth

Empower your knowledge

While going to school, you passed by a bakery to buy your "puding" and bottled water for snack. You are about to give your payment on the things you bought to the storekeeper, when a small girl approached you. She is asking some money from you. She seems to be hungry. What will you do? Will you give her money? Or food? Depend your answer.

People who are truly inspiring...

Vicente S. Quimbo-Novellino Wine

It was difficult at first for Vicente S. Quimbo to accept that Filipinos associate locally made products with inferior quality. He felt somehow insulted when people are surprised to know that Novellino is not imported. "What's wrong with being a local produce when in reality it is just as good as any imported wine from the U.S. or Italy if not better," he said. "We have winemakers that are as good as Italian enologist. Our winemakers come from the wine making industry of Italy, from a generation of wine makers," he stressed.

In terms of pricing, Novellino has comparable prices to the imported wines. Quimbo said that his ultimate goal is for the Novellino brand not just to be marketed abroad but for it to gain a foothold as a global Filipino brand. "Who knows, one day Novellino will become a standard for sweet wine not just for Filipinos but for the world. I may not have enough time to fulfill that but at least I started it," he added. He confided that from the very start he conceptualized Novellino, he had envisioned the company to go global. Liberalization is not good for any business but it did not stop this wine manufacturing company from being successful because a business cannot just live on mere protection, but quality will.

"The true measure of success is not the money you bring in but the fulfillment of a mission and when you have achieved that, then, you have attain the rewards and money is reward, a by-product," he explained. Quimbo further believed that he is but just a steward in this world. He is active with the Christ Commission Fellowship. "We are still governed by the Supreme Being and our achievements are not totally ours and the glory is not really ours but to the Supreme Being. So I always give credit to my creator," he said. (http://aralingpinoy.blogspot.com)

Lesson 74 Various Business Opportunities in the Community

Picture of a successful well-known entrepreneurs

Objectives:

To name the factors to be considered in exploring business opportunities.

To recognize the significance of these factors in starting a business enterprise.

To manipulate wittingly these factors for a better business venture.

Enkindle your knowledge:

Draw in a sheet of paper to visualize, what you think an aspiring entrepreneur must think of before deciding to start a business enterprise, though opportunities are available. Discuss your idea in-front of your classmates.

Enhance your knowledge:

Aspiring entrepreneurs have to consider business opportunities in the community before deciding on to start a business enterprise. It is better not to rush in anything, take time in making good decisions. For a creative, resourceful and a risk-taker individual, opportunities are always available within their reach.

The following factors must be considered in exploring business opportunities within the community:

Market-It is important that there is a market for the products and/or services that will be produced. This means that people within the community are really in need of the product or service to be produced and they have the money to buy said product or service.

Natural Resources- It is a good decision to know that raw materials required to produce goods/and or services are in high supply, especially when they are bulky or perishable, making it difficult and costly to transport over a long distance. However, recent innovations in transport, refrigeration and the production process have allowed business to be less resource-oriented.

The workforce- Certain types of business require certain types of expertise from people. It is to the advantage of the entrepreneur to hire workers who has the skills required to operate the business in the long run. Otherwise, the entrepreneur himself will keep the business rolling.

Energy and Water Supplies- There are business enterprises that require large supplies of water or power. An entrepreneur must have a ready solution in case there will be future problems regarding the supplies of these needed utilities. Technological advancement like a power generator will be a useful tool in case of energy and having a water tank will ensure enough water supplies.

Capital- The availability of capital for purchasing land and machinery, installing facilities and hiring plays a major role in business opportunity exploration.

Local Government- A supportive and stable local government offers a safe and secure climate to start a business enterprise; gives financial incentives and subsidies and provides basic infrastructure and sanitary amenities.

Enrich your knowledge:

Aspiring entrepreneurs must first consider business opportunities in the community before deciding on to start a business enterprise.

It is to the advantageous for the entrepreneur to hire skilled workers to keep the business rolling.

Opportunities are always available within their reach for creative, resourceful and risk-taker individuals.

In exploring business opportunities within the community, market, natural resources, workforce, energy and water supplies, capital and the local government must be considered.

A supportive and stable local government offers a safe and secure climate to start a business enterprise.

Enlighten your knowledge:

Activity 1

Write T if the statement is correct and F is the statement is incorrect.

It is better not to rush in anything, in making good decisions for starting a new business.

For a creative, resourceful and a risk-taker individual, opportunities are always available.

The availability of capital plays a not-so- important major role in business opportunity exploration.

It is alright for an entrepreneur not to have a ready solution in case there will be future problems regarding the supplies of energy and water.

A power generator will be a useful tool in case of energy interruption.

Having a ready water tank will ensure enough water supplies for an entrepreneur with business that requires steady supply of water.

All types of business require certain types of expertise from people.

Business opportunities in the community must be considered only after deciding on to start a business enterprise.

Recent innovations in transportation, refrigeration and the production processing have allowed business to be more resource-oriented.

It is important that there is a market for the products and/or services that will be produced in order to earn profit.

Activity 2

Match Column A with Column B by drawing connecting lines.

Column A

Column B

1.

aspiring entrepreneur

a.

raw materials

2.

market

b.

expert people

3.

natural resources

c.

for purchasing land, machineries, etc

4.

workforce

d.

financial incentives and subsidies

5.

capital

e.

power generator

6.

local government

f.

people who are in need

of goods/services

7.

energy supplies

g.

water tank

h.

considers business opportunities

Activity 3

Write the letter of your best choice on the blanks provided before each number.

_____ 1. Opportunities are always available within their reach, for what type of an individual?

creative

resourceful

risk-taker

all of these

_____ 2. Aspiring entrepreneurs have to consider business _____in the community before deciding on to start a business enterprise.

opportunities

threats

both a and b

none of these

_____ 3. Certain types of business require certain types of _____from people.

knowledge

expertise

skill

education

_____ 4. _____will be a useful tool in case of energy loss.

Power generator

Water tank

Electric fan

Air cooler

_____ 5. A _____will ensure enough water supplies for a business enterprise.

power generator

water tank

electric fan

water sink

_____ 6. A supportive and stable local government offers a safe and secure climate to _____a business enterprise.

start

keep rolling

commence

end

_____ 7. It is important that there is a _____for the products and/or services that will be produced.

source

store

market

supermarket

_____ 8. The availability of _____for purchasing land and machinery, installing facilities and hiring plays a major role in business opportunity exploration.

money

source

capital

asset

_____ 9. It is a good decision to know that raw materials required to produce goods/and or services are in _____supply, especially when they are bulky or perishable.

high

low

considerable

ample

_____ 10. Recent innovations in transport, refrigeration and the production process have allowed business to be_____.

more resource-oriented

less resource-oriented

less resource-capable

more resource-capable

Activity 4

Divide yourselves into two (2) groups, one pro and one anti on the issue that "Should an aspiring entrepreneur consider business opportunities in the community first before deciding on to start a business enterprise?" Debate about this issue on hand.

Activity 5

Research on those successful entrepreneurs we have today in the country. Make clippings for submission of these people to know how they were able to start the business enterprise they have today

Empower your knowledge

There is a meeting for teachers that afternoon. All classes will only be half day. This meeting was already announced in your dairy. So everyone knows about it and soon parents are already outside the school gate to fetch their children. You are already on the other side of the road waiting for a passenger jeepney to pass, so you get a ride home. You noticed a small boy trying to cross the street. He is alone, though looks brave. What will you do? How will you help this helpless boy?

People who are truly inspiring...

Tony Tan Caktiong of Jollibee Corporation

From modest beginnings as the owner of two ice cream parlors in Manila in the 1970's, Jollibee has grown to become one of the most admired and respected companies in Asia. Even though his ice cream parlor business was doing well, Tony wanted to expand in the foods business - in the form of a fast-food outlet chain. He was inspired by the global popularity of companies like McDonald's which was planning to enter the Philippines during that time, but Wendy's and Burger King already had a presence in the Philippines.

Tony established his own chain of seven hamburger outlets in 1978 under the name Jollibee. He did not get a franchise like Wendy's or McDonald's. Tony and his brother went to the US in 1979 to study the fast-food business. They spent a couple of weeks looking at the kind of equipment used, the retail outlets, the food served and various other things. Tony decided to copy almost each and every aspect of US fast-food majors, particularly McDonald's and benefited from tested business practices. In so doing he avoided 'reinventing the wheel.'

Tony was aware that Jollibee could not compete with McDonald's which had financial muscle and decades of expertise in the business. But by establishing Jollibee in 1978, Tony pre-empted McDonald's entry into the country.

Jollibee's strong focus on issues such as product development, operational excellence, customer service, marketing and promotion, and social responsibility, and the leadership helped it become the market leader in the Filipino fast-food industry, beating all the multinational companies. The company has globalization strategies and future prospects in the light of the new challenges it is facing in foreign markets.

In the Philippines, Jollibee commands 65% of the domestic fast food market, competing very successfully against established global brands. Jollibee Foods Corporation now employs 26,000 people in almost 1,000 outlets in seven countries, including the United States and China. (http://www.thefilipinoentrepreneur.com)

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