Week-1-7 CM MDL 3q Ent122

Asian Institute of Computer Studies (AICS)
MODULE 1 MODULE 5
Lesson 1: Entrepreneurship and Entrepreneur …….…………....2-3 Lesson 1: What is Business Plan? ………………….……………………………………. ….…….24
Lesson 2: Entrepreneurship in the Philippines ……….……. ….3 Lesson 2: Why write a Business Plan and Who reads it? ........……....……24-25
Lesson 3: Relevance of Entrepreneurship to Senior Lesson 3: How to present a Business Plan? ………………………………………….….26
High School students ….…………………………………………........................3-4 Activities and Assessment.….………………………………….………………………………….……27-28
Activities and Assessment ………….………………………….…………….……6-7
MODULE 6
MODULE 2 Lesson 1: What is marketing Plan? ………,,,,,,,,,,,,,……………………….…......….……29-30
Lesson 1: Entrepreneurial Process ….……….…………………...….……8-9 Lesson 2: What are the steps in preparing a Marketing Plan? ….…....30
Lesson 2: Characteristics of an Entrepreneur ….…….…....…9-10 Lesson 3: What must consider in Developing Marketing Strategy
Lesson 3: Characteristics of a Filipino Entrepreneur ….….10 and Action plan? …………………………………………………………………………………………………….30-31
Lesson 4: Entrepreneurial Decision Making.………………......…10-11 Activities and Assessment …………………………………………….………………………….….…32-33
Activities and Assessment …………………….……………….……….…..…12-13
MODULE 7
MODULE 3 Lesson 1: What is Operational Plan? .….………………………………………………......….34-36
Lesson 1: Sources of Ideas for Entrepreneurial Activities and Assessment …………………………………………………………….………….……37-38
Ventures.………………………………………………………………………………….………14 3rd Quarter Project …………………………………………………...……………………….………….….…39
Lesson 2: Methods for generating or testing
New ideas.….…………………………………………………………………………………...14-15
Lesson 3: Creativity: A new way of looking at things ….…15-16
Activities and Assessment …………….………….……………….……...…
MODULE 4
Lesson 1: Opportunity recognition process ……………………….19-20
Lesson 2: Opportunity Assessment ……….….……………………….20-21
Activities and Assessment ………….………………………………………….22-23
1
What is Entrepreneurship?
UNIT ONE
MODULE At the end of this module, you are expected to:

• Discuss the relevance of the course.
1 • Identify the different types of entrepreneurs.
• Explore job opportunities for Entrepreneurship as a career.
Inclusive dates:
Overview:
Some people make a big deal out of the fact that there are many successful Entrepreneurship and Entrepreneur
businesses founded by entrepreneurs who do not have a college degree. Often Entrepreneurship is...
cited are Apple Founder Steve Jobs, Microsoft founder Bill gates, Facebook co- • The act of creating a business or businesses while building and scaling it to
founder Mark Zuckerberg, and Uber co-founder Travis Kalanick. In the Philippines, generate a profit.
we have Philippine Airlines and Asia brewery owner Lucio Tan, National Bookstore • An important driver of economic growth and innovation.
owner Socorro Ramos, Zest-O corporation President Alfredo Yao, and Mang Inasal • What people do to take their career and dreams into their hands and lead it
founder Edgar Sia II. Some of these individuals went to college but decided to drop in the direction of their own choice.
out after spotting a business opportunity. The others came from poor families, and • About building a life on your own terms. No bosses. No restricting schedules.
could not afford college education, but succeeded in growing their businesses, And no one holds you back.
nevertheless.
However, we must not lose sight of the fact that other equally successful An entrepreneur is...
businesses were founded by individuals who earned their college degrees.
• A person who sets up a business with the aim to make a profit and creates a
Examples are Jollibee founder Tony Tan Caktiong, Lamoiyan Corporation founder
new business, bearing most of the risks and enjoying most of the rewards.
Cecilio Pedro, and ECHOstore co-founder Pacita Juan. Clearly, educational
• The Term “entrepreneur” comes from the French word entreprendre which
background, while important, is not the defining element for entrepreneurial
means “to undertake”
success. There are other factors that come into play.
• An innovator, a source of new ideas, goods, services, and business/or
In this module, we identify the different types of entrepreneurs. We also
procedures.
describe the various stages that entrepreneurs undergo in implementing their
• Playing a key role in any economy, using the skills and initiative necessary to
business plans, which usually start as mental constructs or intentions. In this light,
anticipate needs and bring good new ideas to market.
we identify the factors that influence entrepreneurial intentions. After this, we
discuss how entrepreneurs formulate their decisions based on three types of
Type of Entrepreneur by Joseph Schumpeter
mental processes. Finally, we examine the role of cognitive adaptability in
1. Megaentrepreneurs – Individuals who are willing to absorb huge risks of
managing risks brought about by an uncertain and dynamic business environment.
using enormous amounts of capital in their business ventures.
2
2. Microentrepreneurs – Individuals who are engaged in micro or small 4. Entrepreneurship improves productivity
businesses as an alternative as an alternative formal employment. 5. Entrepreneurs create jobs.
6. Entrepreneurs innovate.
Understanding what an entrepreneur is can help more people recognize the 7. Entrepreneurs create innovation and social change
value they contribute to the world. Entrepreneurs take the idea and execute it 8. Entrepreneurs give to society
while entrepreneurship is about execution of ideas.
Relevance of Entrepreneurship to SHS Students
Entrepreneurship in the Philippines 1. To prepare students for livelihood even before college.
The notion of the entrepreneur as simply one who forms and manages 2. Entrepreneurship education aids students from all socioeconomic
business is apparent in government programs that attempt to develop small-scale backgrounds to think outside the box and nurture unconventional talents
industries. In the Philippines, many entrepreneurial development-training and skills.
programs rest on such assumptions. But even without the presence of government 3. Entrepreneurship develops their initiative and helps them to be more
support, the statistics for the past fifty years or so on the number of business creative and self-confident in whatever they undertake and to act in a
establishments formed every year would generally show an increasing trend. They socially responsible way.
were mostly in food processing, property development, and trade (including 4. It exposes students to numerous opportunities to learn how to think
shopping malls). critically and analyze the pieces on the board.
In 2005, the top 50 Philippine corporations in terms of sales could be 5. Being aware of all the important factors and seeing how they affect each
broken down into 22 private domestic firms, 23 foreign firms, and 5 government- other is the foundation of a smart decision-making process.
owned and/or controlled corporations (BizNews Asia 2007as cited by Batalla, V., 6. Students must be exposed to real-world examples and learn from their
2011). The 22 companies could be identified with 11 families and individuals, own experience.
mostly Filipinos of Chinese ethnic background. The 11 families and individuals were 7. Entrepreneurship education requires students to be innovative, creative,
The Zobel family (Ayala), The Lopez clan (ABS-CBN), Lucio Tan (Asia Brewery), and collaborative with others.
Henry Sy (SM), John Gokongwei (Cebu Pacific), Alfonso Yuchengco (Mapúa 8. Entrepreneurship education provides budding entrepreneurs with the
Institute of Technology), Eduardo Cojuangco Jr. (San Miguel Corporation), Jose Yao skills and knowledge to come up with business ideas and develop their own
Campos (Unilab Group of Companies), George Ty (Metrobank), Mariano Que ventures.
(Mercury Drug), and Tony Tan-Caktiong (Jollibee).
Job Opportunities for Entrepreneurship as a Career
Relevance of Entrepreneurship to SHS students If you are an aspiring entrepreneur, there are different career paths you
can take to turn your dream into a reality. Which path you choose will depend on
Importance of Entrepreneurship
your experience, skills, finances, and flexibility, as well as your goals for the future
1. Entrepreneurship generates new wealth in an economy.
(Doyle, A., 2020). Career opportunities you might pursue according to Michalowicz
2. Entrepreneurship decreases poverty.
(2011) as cited by Edralin, D. M., 2016):
3. It creates opportunities, ensures social justice, instills confidence and
1. stimulates the economy.
3
Entrepreneurship Career Entrepreneurship Career • Nutrition center manager

Opportunities for the Academic Track Opportunities for the TECHVOC Track
• Business Consultant Fine Arts Other TECHVOC Track
• Sales • Artist • Cook/Chef
• Research and Development • Graphic Designer • Automotive mechanic
• Not-for-profit fundraiser • Photographer • Electrician
• Teacher • Art gallery manager • Technical support Associate
• Talent recruiter4 • Film director • Mechanical Technologist
• Business reporter
• New venture creation Fashion Designer Note: Most would-be entrepreneurs, however, remain self-employed, preferring
• Career in existing entrepreneurial • Designer wear production to be the boss.
ventures • Fashion marketing, planning and
concept management Reasons why many would like to become an entrepreneur (www.scu.edu):
• Fashion media design management 1. Achievement, Challenge, & Learning
• Fashion accessory design, quality 2. Independence & Autonomy – you can set your own goals, pick their own
control and promotion brands partners, and face the consequences of your decisions.
• Costume designer 3. Income Security and Financial Success
• Fashion consultant and personal 4. Recognition and Status
stylist 5. Family
• Technical designer and graphic 6. Dissatisfaction with Current Work Arrangements
designer 7. Community and Social Motivation
• Fashion coordinator
Sports
Reference links:
• Health club manager
• Strength, wellness, or conditioning Above Image retrieved from:
coach https://thefinancialexpress.com.bd/education/understanding-entrepreneurship-
• Fitness program or event planning 1541654371
manager
• Professional or amateur team (www.reference.com)
manager (www.europeanentrepreneurship.com)
• Sports facility manager
• Corporate fitness director Batalla, V. (2011). Entrepreneurship and Philippine Development. Retrieved from:
• Rehabilitation center director https//www.academia.edu/26552052/Entrepreneurship_and Philippine_ Development
4
Hayes, A. (2020). Entrepreneur Retrieved from: https://www.investopedia.

com/terms/e/entrepreneur.asp
Entrepreneurship: Characteristics, Importance, Types, and Functions of Entrepreneurship,

Retrieved from: https://www.yourarticlelibrary.com/
What Is the Importance of Entrepreneurship? Retrieved from:

https://www.reference.com/business-finance/importance-entrepreneurship-
a80aee8f21d6b6c1
Why We Need to Study and Learn Entrepreneurship? Retrieved from:

https://www.europeanentrepreneurship.com/need-study-learn-entrepreneurship-
education/
Picture Analysis image retrieved from: https://images.app.goo.gl/ZN4XNyQEaDxz6aA76
Habaradas, R. B., Tullao Jr., T. S. (2017) Pathways to Entrepreneurship. Quezon City,

Phoenix Publishing house Inc
5
Guide Question: What appropriate product and/or business that can be

Important Reminders conceptualized during this COVID -19 pandemic? Write as many in bullet form on
• Tear this activity sheet and submit on the scheduled date along another set of paper.
with the other activity (ies) the instructor may have asked the students to
do on a separate paper. ACTIVITY 2:
• If you are sending something you’ve done online such as MS
presentation (s), pictures, pdfs and alike as an attachment, then you may send What Motivates Me to become an Entrepreneur
them to my email at ____________________________________________
Using the table below, list down at least 5 sentences why you wanted to be an
following this format: (SECTION_LASTNAME_FIRSTNAME_ACTIVITYNAME), or
send a digital copy from your flash drive together with this activity sheet. entrepreneur someday.
The following motivates me to become an entrepreneur someday:
ACTIVITY 1: 1.
Picture Analysis
Analyze the picture below then answer the corresponding guide questions.
Write your answer on another set of paper. 2.
3.
4.
5.
6
MODULE 1: Assessment C. In 2005, the top 50 Philippine corporations in terms of sales could be
broken down into 25 private domestic firms, 20 foreign firms, and 5
Test I. Multiple Choice. Write the letter of your chosen answer on the space government-owned and/or controlled corporations.
provided. D. The 22 companies could be identified with 11 families and individuals,
mostly Filipinos of Chinese ethnic background.
______1. Who acts as a coordinating agent in a capitalist economy?
A. Manager C. Entrepreneur ______5. Which of the following words is not associated with entrepreneur?
B. Finance Officer D. Broker A. innovative C. collaborative
B. impulsive D. Creative
______2. Which of the following is not a definition of Entrepreneurship?
A. It creates opportunities, ensures social justice, instills confidence, and Test II. Enumeration. Give what is asked based on the list below.
stimulates the economy. ✓ Give at least 3 business resources
B. It is an important part of the economic growth strategies of many local ✓ Give at least 3 importance of Entrepreneurship to the economy
and national governments around the world. ✓ Give at least 3 relevance of Entrepreneurship to you as a student
C. Refers to a person who sets up a business with the aim to make a profit. ✓ Give at least 3 known families who owned Big Corporations here in the
D. The act of creating a business or businesses while building and scaling it Philippines
to generate a profit. ✓ Give at least 3 characteristics of Entrepreneur
______3. Which of the following is a relevance of Entrepreneurship to SHS

Students?
A. It generates new wealth in an economy.
B. It aids students from all socioeconomic backgrounds to think outside the
box.
C. It creates opportunities and ensures social justice.
D. It creates job.
______4. Which statement is not correct about the status of entrepreneurship in

the Philippines?
A. The number of business establishments formed every year would
generally show an increasing trend.
B. N-entrepreneurs are people who can secure resources such as
technology and information to gain distinct, sustainable, competitive
advantages.
7
What is Entrepreneurship?
UNIT ONE
MODULE At the end of this module, you are expected to:

• Describe the entrepreneurial process
•
2 •
Describe the typical characteristics of Filipino entrepreneurs.
Explain how entrepreneurs think and how they make decisions
Inclusive dates:
• Explain the role of risks and failure in the entrepreneurial
process
Overview:
This question has been long debated with little agreement. However, as 2. Interpersonal competencies – These are your ability to lead, influence,
cited by Longenecker, J.G., et.al. (2016), Stephen Spinelli and Robert Adams communicate, supervise, negotiate, and control people at all levels. It is
described entrepreneurs as having and exhibiting “desirable and acquirable the ability to get along with people and motivate people to perform jobs.
attitudes and behaviors” such as commitment and determination, leadership, Entrepreneurs must effectively manage people.
opportunity obsession, risk-takers, motivation to excel, creativity, self-reliance, and Ex. communication, engagement, delegation
adaptability. According to (www. Ideas for leaders.com), competencies such as risk
seeking, assertiveness ad vision are considered typical of a successful 3. Business competencies – These are set of abilities and knowledge that sets
entrepreneur. But these as yardstick, it is wrongly concluded that only certain types a company apart from its competitors It also refers to the key
of people make good entrepreneurs or are capable pf worthwhile innovations. characteristics that successful entrepreneurs should have to be successful
Ex. business vision, financial management, networking
Is there such a thing as a ‘natural-born entrepreneur’?
Accordingly, there is not. Specific techniques and habits must be practiced
and developed by all would-be entrepreneurs. Aside from business competencies, Entrepreneurial Process
entrepreneurs need interpersonal and self-leadership skills too; however, these It is important to formulate a strategy, which should include an articulation
are often overlooked. Entrepreneurial behavior‟ can be learned and developed of a plan and how this is going to be implemented. This entrepreneurial discipline
The question is not who entrepreneurs are, but what they do, and more is often referred to as the entrepreneurial process, which involves several stages
important than business skills can be other competencies that provide a foundation from the awareness of an opportunity to the realization of a business idea. The
for those business skills. steps include the following:
Furthermore, according to www.ideasforleaders.com, there are three
levels of competencies, which all entrepreneurs need: Discovery – refers to the recognition of a business idea or the detection of
1. Personal competencies – These are your abilities to ground yourself so that opportunities that could make money for the entrepreneur.
you are secure and self-assured in whatever situation you may find yourself
Ex. creativity, determination, integrity, self-criticism. Development of concept – gives more details on how the general business idea can
be realized
8
Organizing resources – Describes the process of identifying, sourcing, and financing

human, non-human and other resources needed for the conduct of business. Employment Status – Individuals who become entrepreneurs in developed
countries are usually former employees of companies in the formal sector. The
Implementation – The process of carrying out the business plan. It covers several choice of pursuing entrepreneurship can be viewed as a step in the entrepreneur’s
activities, including the management of human, physical, technological, and professional development.
financial business of the business
Entrepreneur’s wealth – the wealth of the entrepreneur is also an
Reaping the returns – pertains to the strategies related to the expansion of the important factor. Usually megaentrepreneurs source their funds from their own
business firm. I t also covers mechanisms for addressing conditions in the business wealth and from their families. Some generate capital for their business from the
environment that may affect the future of the firm. wealth they have accumulated from their past employment. They can also borrow
money from their wealthy parents.
Characteristics of an Entrepreneur Risk appetite – Important factor in undertaking any business venture. Risks
While the entrepreneurial process is important in the success of business are associated with uncertainties in business operations. These uncertainties can
ventures, many entrepreneurship scholars have argued and presented evidence threaten the survival and stability of a business enterprise. Usually, entrepreneurs
that entrepreneurial traits are likewise important in the performance of a business are risk-takers. Otherwise they will not engage in business and will just be
venture. In this section, we present the effects of these personality characteristics comfortable with the certainties of being formally employed.
on entrepreneurial performance based on two criteria. The first pertains to how
personal traits connect with the way entrepreneurs create ‘value-added’ and the Entrepreneurial traits and Entrepreneurial Intentions
second involves the link between these personal qualities and the formation of Every individual who sets up a business venture started out by intending
entrepreneurial intentions. to do so. Thus, we examine entrepreneurial intentions, which are planned actions
formulated in the mind of individuals which are geared toward the objective of
Entrepreneurial Traits and Creation of value added establishing a business venture from potential business opportunities. The
Level of education – Studies have shown that entrepreneurs need some question is “how are these intentions formulated?” Based on studies, there are two
formal education to be able to seize the opportunities presented by inventions, broad set of factors that may influence the formation of entrepreneurial
innovations, and other technological developments. This may be true for intentions: internal and external factors.
megaentrepreneurs since they need some degree of technological know-how to
understand the commercial potentials of modern inventions and innovations. In Internal Factors – Include mainly the qualities of individuals such as:
developed countries, like the United States, some of the more successful a. Demographics
entrepreneurs are engineers who can recognize business opportunities being b. Personal Traits
offered by the latest developments in ICT. On the other hand, since c. Psychological characteristics
entrepreneurship in developing countries is more often being used as an d. Individuals skills
alternative to formal employment, many microentrepreneurs usually have limited e. Prior knowledge
educational qualifications. In addition, engaging in small enterprises does not f. Social Ties
require high level of schooling.
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External Factor engaged in manufacturing, extractive enterprises, and business services

a. Environmental support (advertising, architecture, consultancy, microfinance, and others).
b. Environmental influence
Entrepreneurial Decision Making
Characteristics of Filipino Entrepreneurs Critical Thinking – refers to the systematic and rational way of providing an
Like other entrepreneurs in developing countries, several Filipinos go into answer to a question. It also explains what is going on. In businesses, a critical
entrepreneurship because they see it as an opportunity for income creation and thinking is useful in explaining how a firm can survive and remain stable. Many
employment. Likewise, they get into business enterprises because of their tools in business analysis make use of analytical thinking. For example, SWOT
apparent capabilities to undertake entrepreneurial activities, the prestige (Strengths, weaknesses, opportunities, and threats) analysis.
associated with entrepreneurship, and the positive exposure given by various Creative Thinking – refers to thought processes that bring about the
forms of media to successful entrepreneurs. However, this attitude is tempered by discovery of new ideas. Unlike critical thinking, it does not follow a systematic or
a fear of business failure. analytical process since it looks at things from different perspectives. Sometimes,
In terms of Gender, it is interesting to note that there are more females creative ideas start from a dream, an insight, or from mere observation.
than males that are engaged in the early stage entrepreneurial activities in the Strategic thinking – involves thought processes that assess current
Philippines. However, in the more advanced stages of entrepreneurial activity, the situation that can be useful in the formulation of plans. It is like critical thinking
gender proportion of entrepreneurs and managers become more even. This since it uses an orderly and logical system in its assessment. But is also resembles
implies that males tend to be more resilient in staying in business, as females creative thinking in its growth and future orientation.
withdraw at the intermediate stage.
In terms of age, entrepreneurship in the country attracts more young Risks, Cognitive Adaptability and Entrepreneurial Decisions
individuals. Given the extent of youth unemployment in the country, In the process of implementing a business plan, an entrepreneur will be
entrepreneurship becomes a viable employment option for the young. This result faced with numerous situations, challenges and opportunities that will require
is consistent with the conclusion of entrepreneurship in other developing flexibility and decision-making.
countries. ➢ Risks – described as uncertain situations and developments that can
In terms of Educational Attainment, almost half of entrepreneurs in the increase the probability of loss or business failure.
early stage development have finished secondary schools. However, entrepreneurs ✓ Internal risks – dangers coming from the management of
that owns firms at the mature age of entrepreneurship have higher levels of resources of a business enterprise.
education. This is aligned with empirical results in other countries showing that ✓ External Risks – Threats coming from various environments
mature firms and those that create higher ‘value-added’ have more educated outside the business firm.
managers and entrepreneurs. • Risk Management – process of identifying, assessing, and responding to
Majority of those engaged in early stage entrepreneurial activities in the these risks.
Philippines are in consumer services including retail, food, personal beauty care, ➢ Cognitive Adaptability – refers to the ability of individuals to be involved in
appliance and electronic repair, cleaning services, and laundry services. According the process of producing several ways of decision-making based on the
to the report, many of these establishments are operated within the households, identification and management of changes in their environment. It
implying a limited scale of operation. Several Filipino entrepreneurs are also
10
requires qualities of flexibility, dynamism, and self-control on the part of

the entrepreneur.
Reference Links:
Above image retrieved from: https://images.app.goo.gl/RKDqbtfjGv77UAeJ6
(www.free-management-ebooks.com).
baseread.com).
(yourbusiness.azcentral.com).
(www.mustangbols.com).

11
Reaping the returns

Important Reminders
• Tear this activity sheet and submit on the scheduled date along
do on a separate paper.
presentation (s), pictures, pdfs and alike as an attachment, then you may send
them to my email at ____________________________________________ ACTIVITY 2:
send a digital copy from your flash drive together with this activity sheet. S.W.O.T. Analysis
Identify the Strengths, Weaknesses, Opportunities and Threats of your
ACTIVITY 1:
chosen business.
Entrepreneurial Process Strengths
Imagine yourself having a business of your own. Identify the process you
used in setting – up your business by using the entrepreneurial process as a guide.
Discovery Weaknesses
Opportunities
Development of Concept
Threats
Organizing Resources
Implementation
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MODULE 2: Assessment
Test I. Essay. In 3-7 sentences, Answer the questions below. Your output will be
graded based on this rubric:
5 – Excellent 4 – Good 3 – Adequate 2 – Marginal 1 – No credit /
unacceptable
Criteria 5 4 3 2 1
Quality of writing (Informative, well organized
etc.)
Grammar usage and Mechanics (spelling,
punctuations, grammatical errors)
Following the instructions.
Questions:
1. Would you rather be an entrepreneur or a manager in a big corporation?
Explain your answer.
2. Would you describe yourself primarily as a critical thinker, a creative

thinker, or a strategic thinker? Give specific examples that will support your
answer. Which of these thought processes, do you think, is most effective
in formulating entrepreneurial decisions?
13
Generating Ideas: Harnessing Logic and Creativity

UNIT ONE
At the end of this module, you are expected to:
MODULE • Identify the various sources of ideas for entrepreneurial ventures.
• Discuss alternative methods for generating ideas for a new venture
3 • Discuss emerging trends that could be the source of new venture ideas
Inclusive dates: • Explain the factors that contribute to creative thinking
• Explain the role of creativity in generating new venture ideas
• Utilize some techniques in creative problem solving
Overview:
A plan to pursue a business usually come from a novel idea. This business Generating Business Ideas through Logical Thinking
idea, in turn, is a product of various thinking processes, including critical thinking Logical thinking – refers to the systematic and rational way of providing an
and creative thinking. In this module, we explore various activities and examples of answer to a question. It is systematic since it follows steps in responding to an
how the use of logic ad systematic analysis- what we refer to as critical thinking – inquiry. It is rational because it adheres to the rules of logic in connecting the
can be means of generating idea for entrepreneurial ventures. Similarly, relationships of variables and making conclusions.
nonsystematic, discontinuous, and lateral thinking – collectively known as creative Statistical analysis – refers to a systematic analysis of data generated from
thinking – can also inspire individuals to introduce new products and services to a survey of individuals.
the market. Aside from generating ideas, creativity can also be used in creative • Market analysis – knowing the various factors that affect the
problem solving. demand for a particular product or services.
• SWOT analysis
Sources of Ideas for Entrepreneurial Ventures • Delphi Technique – systematic way of generating ideas from
selecting group of individuals using various rounds of consultation
Several practicing entrepreneurs and business coaches have identified a
or session.
host of sources, from which we can find business ideas. These can be categorized
into four major sources.
Generating Ideas through Creative Thinking
a. From the existing product or services
Brainstorming – refers to an unstructured discussion of a group to elicit
b. From the process
ideas. Since this process is unstructured, the facilitator and participants should
c. From the person and from prior employment
entertain all ideas coming from the participants, even those that are illogical and
d. From relations
“out of this world.” After a fixed period of discussion, the various ideas are
processed and synthesized to come out with an answer to the question posed at
Methods for generating or testing new Ideas the start of the brainstorming session.
There are several methods of generating business ideas. We will classify Problem inventory analysis – is like brainstorming. It uses the group
them into logical thinking and creative thinking. discussion method to elicit ideas from participants. It is different from the usual
brainstorming because it is directed to identifying all possible problems
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encountered with a specific product or service. After identifying all the possible everything. Look at ways on how to something can be improved or altered. Connect
problems and issues with the product or service, the participants are tasked to give your ideas with other observations you have made before.
alternative solutions to the problems.
Free association method – is another technique used in discovering Factors that influence creativity
business ideas. It is a method that has been used in psychology to elicit the A. Problem Solving Factors – an individual who is not satisfied with existing
unconscious thoughts of individuals by expressing their thoughts associated with products and services may think of creative ideas to improve them or
words and ideas given by the therapist. It has several applications in different fields, simply differentiate these products and services
including business, since it can draw from participants ideas that are associated or
linked with a given idea or word. From the process of association, the group can B. Motivational Factors – a highly motivated individuals are willing to do
come out with an idea or set of ideas that can be the basis for business ventures. something to address the dissatisfaction, they plan and more importantly
• Checklist method – listing all possibilities that ideas can be connected is willing to take the risks.
to, reprocessed, and associated with. For example, Alex Osborn’s
SCAMPER (Substitute, Combine, Adapt, Magnify, put to other use, C. Situational Factors – A creative person is an action person since they know
Eliminate, and Rearrange) how to implement their plan. Creativity surfaces when the eagerness to
implement a plan is tempered by ability of an individual to convince others
Generating Ideas through Trends in Business Environment to cooperate with them in implementing the plan.
✓ Bargaining powers of Competitors and Suppliers
✓ Major shifts in government involvement in business D. Organizational Factors – Includes among others, management support, risk
✓ Sociodemographic changes taking incentives, flexible rules, degrees of freedom and positive
✓ Technological developments evaluation. An organization with foresight and that is forward looking can
attract creative individuals since it has an appetite for risks than a company
Creativity: A new way of looking at things that emphasizes short-term profits.
Creativity can be described as the capacity of individuals to originate new

ideas from ideas the individual has been previously expose. The birth of a new idea Creative Problem solving
is done by connecting an idea with other ideas and transforming these connections. Creative Problem Solving (CPS) is a procedure of answering a problem with
There are many ways of connecting these ideas. It can be done by comparing them, mechanisms and techniques incorporating creativity. Scientific method is also a
linking them, looking at similarities and differences and looking for trends. In the procedure in answering a problem with the use of rational thinking. However, the
checklist method mentioned above, there are several ideas that can emerge from solution under CPS may not be as clear cut as in solving problem using scientific
a single idea. For example, a simple product like pan de sal can be replaced with method.
pan de leche or pan de lemon. It can also be mixed with other ingredients like pan The following six steps are followed in Osborn-Parnes model. They look
de coco and toasted siopao. very simple and easy to do, but each stage requires various creative processes
Many scholars, psychologists, and business coaches have been telling us 1. Setting the objective – This involves the identification of an objective
that creativity can be learned and develop. You must be keen observant of that an individual wishes to achieve. This stage can become
cumbersome since the individual has to differentiate an objective from
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a variety of goals, challenges, issues, and problems. Such

differentiation may involve creative processes.
2. Revisiting the objective – This stage involves the search for studies,
reports, analyses, and papers related to the objective set.
3. Identifying the problem – Based on the objective set and the review of
related studies, the individual has a clearer view in what problem to
pursue. This process as mentioned earlier may involve divergent
thinking processes in seeking the possible issues, challenges, problems
that may emerge from the objective set.
4. Looking for a solution – Once the problem has been identified, another
series of divergent thinking of generating ideas for the solution of the
problem is needed.
5. Selecting a solution – Once enough options are given from the
divergent thinking process, a convergent evaluation process of
weighing the significance, relevance, and feasibility of these options is
undertaken
6. Accepting the solution – In our chosen problem, we have selected a
solution.
Reference Links:
Above image retrieved from: https://images.app.goo.gl/K6zaemQFQeMTk6L79
https://www.mindtools.com/pages/article/newCT_02.htm

16
Important Reminders
send a digital copy from your flash drive together with this activity sheet.
ACTIVITY 1:
SCAMPER
In this activity you must come up with new ideas while trying to develop or
improve a product or service using the SCAMPER technique. Your output will be
unacceptable
Criteria 5 4 3 2 1
Organization (Different relationships are identified and
organized)
Information (Accuracy of given information)
Creativity
Following the instruction of the activity.
17
unacceptable
Criteria 5 4 3 2 1
etc.)
Questions:
According to the confluence approach, one of the factors that influence creativity
is an environment that supports creative ideas. Do you think your school provides
an atmosphere conductive for creative thinking among its students? Why or why
not?
18
Recognizing, Assessing, and Exploiting Opportunities

UNIT ONE
MODULE • Explain the process of recognizing opportunities
• Explain the important factor in opportunity recognition
4 • Create an opportunity assessment plan
Inclusive dates: • Discuss the different pathways to seizing opportunities
• Explain the product planning and development process
Overview: extensively shaped by his educational background. Aside market is

Beyond knowing how entrepreneurial intentions and ideas are made, there extensively shaped by his educational background. Aside from formal
is a need to recognize and assess these intentions and ideas as business training, personal experiences including travel, and previous employment
opportunities. In this module we will discuss the various stages in recognizing and can also provide the individual with valuable information on the market
assessing opportunities and how these opportunities and how these opportunities that he wants to enter
are translated into entrepreneurial ventures. For these opportunities to be realized
as business ventures, the individual needs to commit resources and should have to ✓ Conception – This is the gestation phase, during which entrepreneurial
capacity to absorb the uncertainties of any business undertaking. intentions and ideas are generated, using logic, creative thinking, or both.
As discussed previously, creativity is the capacity of the mind to reprocess
Opportunity recognition Process and recreate new ideas by connecting ideas from existing products or
services. For example, connecting ideas on the various ways of preparing
Before we proceed with the process of recognizing opportunities for
bread can lead to a creative idea.
entrepreneurial ventures, we need to define the concept of opportunity. According
to Cambridge Dictionary, an opportunity is “a situation or occasion that makes it
✓ Visioning – this third stage provides the individual a hunch that can serves
possible to do something that you want to do.” These are there elements in this
as an opportunity for business. This comes about as ideas become clearer
simple definition. First, you want to do something. In this case you want to establish
and how the logic of connections leads the individual to a new idea. In our
your own business enterprise. Second, there are conditions for the realization of
previous example on connecting ideas, the preparation of bread can lead
the objective. Third, you must make decisions or act on these, conditions to realize
us to an idea of toasted siopao, which takes off from the classic steamed
your objective.
siopao.
Opportunity recognition often entails phases that potential entrepreneurs
take before introducing a product or service to the market.
✓ Assessment – This stage involves the evaluation on whether the idea can
Five stages of opportunity recognition according to Hills, Shrader and Lumpkin.
be realized or not. Aside from the resources needed and technology to be
used, the paramount question to the individual is whether the idea can
✓ Precondition – A preparatory stage, during which the individuals assesses
really be actualized. In our stated example, the relevant question at this
his knowledge of the market. His prior knowledge of the market is
stage is whether we can really toast siopao?
19
the market? What segment of the market is your product or service

✓ Realization – The last phase suggests the production of a prototype. This is targeting?
the stage when the mental construct or idea is now felt in its tangible or
physical form. Thus, the idea of toasted siopao is produced by baking the ➢ Costing and Pricing – The price of a product or service would depend on
dough with fillings instead of steaming the traditional siopao. the cost of raw materials and other factors of production.
Factors in opportunity recognition ➢ Profitability – Primary motivation of venturing into a business is to earn
A framework on recognizing opportunities crafted by Hisrich, Peters, and profit. Thus, a non-profitable business enterprise, however creative the
Shepherd (2010). busines idea is, is not worth pursuing. It is Based on how the market will
receive your product and cost of producing it.
➢ Market Awareness – refers to personal exposure to market and its
components including customers and suppliers. ➢ Resource Requirements – There are two types of inputs used in production
➢ Entrepreneurial Readiness (entrepreneurial alertness) – refers to the (a) Intermediate inputs, also called raw materials that need further
variety of features of an individual to start a business venture. It covers all processing and (b) factor inputs, also called the processing inputs which
types of resources that the individual possesses including financial, include labor, capital, and technology.
physical, and human resources.
➢ Connections (networks) – Business opportunity recognition is heightened ➢ Risks – These are uncertain situations that can increase the probability of
when the individual has a diversity of networks. loss or failure of a busines venture. Risk can be from within (Internal Risks),
which emanate from the management of resources and from the outside
Opportunity Assessment (External Risks), which arise from various environments affecting business.
Once an idea has been generated and an opportunity has been recognized ➢ Entrepreneurial Commitment – Commitment of the individual to pursue
from it, there is need to assess whether this opportunity is feasible to implement. the realization of its business idea. This may include the motivations of the
Opportunity assessment refers to the process of evaluating the likelihood that the individual, skills, experience, resources, and the amount of time he can
opportunity can be realized. devote in the operation of the business.
➢ Product or Service – What is the unique feature of the product or service? Opportunity Pathways
Why will the consumer purchase this commodity? What need or want is Once the opportunity is already identified, the individual can subject it to
the product or service trying to fill? What is the competitive edge of this an assessment as described above, proceed with its implementation, or put the
commodity compared with existing products or services? business idea on hold. If the decision is to proceed, the individual has two options
to follow or pathways in transforming opportunity into a business venture.
➢ Market Opportunity – Is it easy to enter the market? If there are barriers These two are called:
to entry, can they be overcome/ How strong is the bargaining power of 1. Rational approach – also called traditional approach. It uses systematic
existing players in the market? How different is the product or service that procedures in proceeding with the implementation of a business
you want to introduce compared to the existing products and services in opportunity.
20
2. Intuitive approach – starts with the recognition of an opportunity and

proceeds directly to the grabbing of the opportunity after sensing that it
can be done.
Product planning and development process

This section summarizes the development process of a product from
inception, introduction to the market, and final decline. Hisrich, Peter and
Shepherd (2010), identified the various stages that a product or service undergo in
its product life. It takes two phases, pre-commercialization phase, and
commercialization phase.
Pre-commercialization phase
➢ Idea stage – refers to the formation of business ideas
➢ Concept stage – refinement of ideas and visualization of an idea that can
serve as business opportunity
➢ Product development stage – production of prototype
➢ Test marketing stage – evaluation and feedback from potential customers
Commercialization phase
➢ Introduction – The product is formally introduced in the market.
➢ Growth – The is recognized by the market
➢ Maturity – The product is widely accepted with the emergence of brand
loyalty and patronage from its target market.
➢ Decline – The product has may start to lose its market power.
Reference Links:
Above image retrieved from: https://images.app.goo.gl/Wypw4SpgtKD65m4a6

21
1.2 Commercialization stage

Important Reminders
• Tear this activity sheet and submit on the scheduled date along Introduction
them to my email at ____________________________________________ Growth
ACTIVITY 1: Maturity
Product planning and development process
Imagine yourself having a business of your own. Identify your business’
product planning and development process
Decline
1.1 Pre-commercialization phase
Idea Stage
Concept Stage
Product Development Stage
Test Marketing Stage
22
Test I. Matching Type. Column A contains list of products and column B contains
the list of services. Match as to which service in Column B is related to the product
in Column A. Write the letter of your answer in the space provided.
Answer Column A Column B
1. Car A. Usability and Durability
2. Xerox Machine B. Repairs and Maintenance
3. Smart Phone C. Leasing or pay per copy
4. Credit Car D. Entertainment
5. Organic products E. Consistent Quality
6. Television F. Bills payment
7. Accessories G. Healthy Lifestyle
8. Books H. Boost Immune System
9. Vitamins I. Accuracy of information
10. Basic goods J. Fashionable Design
23
The Business Plan

UNIT ONE
MODULE •
•
Define what a business plan is
Explain why business plans are important to its users.
5 • Identify the information needed in preparing a business plan
Inclusive dates: • Describe the major sections of a business plan.
• Explain why some business plan fails.
Overview:
After recognizing and assessing opportunities, the entrepreneur must
formalize his/her attempt to exploit these opportunities in the form of a business business
plan. In this module, we emphasize the importance of a business plan for a variety ✓ It serves as a tool in helping get financing for the business
of users. We then proceed to describe the major sections of the busines plan after
identifying the information needed for each section. We ed by providing guidelines The business plan may be read by different people, including employees, suppliers,
on how to preset a business plan to relevant stakeholders. customers, bankers, and potential investors. Therefore, the business plan must be
written to meet the information needs of these different stakeholders.
What is a Business Plan? User of Business Plan Why the business plan is important to
Prepared by the entrepreneur, a business plan is a document that this user
describes the various external and internal elements involved in starting a business Entrepreneur • Serves as a road map for managing
or in expanding an existing venture, amidst a dynamic business environment. the business
During the first few years of business operations, the business plan serves as a • Identifies the resources needed to
guide for short-term and medium-term decision-making and managerial action. operate and grow the business
Like a road map, it directs the entrepreneur to his desired destination. It answers • Allows the entrepreneur to
the following questions: Where am I now? Where am I going? How will I get there? anticipate potential business risks
Lender • Allows the lender to assess whether
Why write a Business Plan and who read it? the entrepreneur will be able to
meet debt and interest and
Business plans are important because of the following reasons payments
✓ It helps determine whether proposed or existing business venture is viable • Provides information about
given its target market collateral or tangible assets that can
✓ It guides the entrepreneur in mobilizing the resources needed by the be secured for the loan
24
• 4 C’s of credit: Character, cash flow, Major sections of a Business Plan

collateral, and Equity contribution. Major sections Typical content
Investor • Allows the investor to gauge Introductory page • Business name and address
whether projected returns are • Names and addresses of the
acceptable business owners/entrepreneurs
• Provides information about the • Nature of the business
character of the entrepreneur and • Statement of financing needed
about the capacity of the venture’s • Statement of confidentiality of the
management team report (optional)
Executive summary • Highlights of the business plan
What information is needed for the major sections of the Environmental and Industry analysis
summarized in two or three pages
• Conditions of the general
Business Plan? environment (i.e., sociocultural,
technological, economic, and
Preparing a business plan could take much time and effort. The process
politico-legal conditions)
would be easier, though, if the entrepreneur knows where to get the information
needed for the business plan’s major sections. • Conditions of the specific
environment (i.e., supply and
Market Information Needs Operations Information Needs Financial Information Needs demand conditions, competition)
Description of the business • Products and/or services
• General environmental • Location • Rental rates • Size of business
trends • Manufacturing or • Cost of equipment • Mission statement and core values
• Specific industry trends service operations • Cost of utilities • Location of the business and its
• Local market • Equipment and/or • Personnel costs major physical assets
conditions furniture required • Cost of insurance • Background of the business owners/
• Market potential • Space requirements • Registration and entrepreneurs
• Demographic and/or • Labor requirements license fees Production plan • Manufacturing process
psychographic profile • Raw materials needed • Physical plant
of target market and potential suppliers • Machinery and equipment
• Utilities • Suppliers of raw materials
• Future capital equipment needs
Operations plan • Description of the company’s
operations
• Flow of orders for goods and services
Marketing plan • Pricing
25
• Distribution • Curriculum vitae of the management

• Promotion team
• Sales forecasts • Price lists from suppliers
Organizational plan • Form of ownership • Profile of competitors
• Principal shareholders or partners
• Organizational
authority
chart/lines of How to present a Business Plan
• Background of the management Writing the business plan is only the first step in getting its reader to act
team favorably. A well-written business plan might make a potential investor or lender
• Roles and responsibilities of more inclined to provide financing for the business, but an effective oral
management presentation is essential in closing the deal. Some guidelines that will help the
entrepreneur when making the presentation are as follows:
Financial plan • Assumptions
✓ Tell a compelling story
• Pro forma balance sheet
✓ Exhibit confidence and professionalism
• Pro forma income statement
✓ Cover the basics
• Cash flow projections ✓ Adopt a cooperative attitude when answering questions
• Sources and uses of funds
• Breakeven analysis
Assessment of risk • Potential risks – internal and
external
• Strategies for preventing or
minimizing risks
• Response to risks should they occur
Timetable/ Milestones • Formal registration of the business
• Completion of product or services
design
• Completion of prototypes Reference Links:
• Hiring of initial personnel Above image retrieved from: https://www.wmky.org/post/entrepreneurs-encouraged-
• Reaching agreements with suppliers write-business-plan
and distributors
https://psa.gov.ph
• Actual production
• Initial orders, sales, and deliveries Habaradas, R. B., Tullao Jr., T. S. (2017) Pathways to Entrepreneurship. Quezon City,
Appendices • Market research data Phoenix Publishing house Inc
• Detailed financial projections
26
_______________7. Ensures that the main body of the business plan is concise
Important Reminders enough to include only the most essential information, several items could instead
• Tear this activity sheet and submit on the scheduled date along be appended to the document.
_______________8. This section describes the target market for the new product
or services.
following this format: (SECTION_LASTNAME_FIRSTNAME_ACTIVITYNAME), or _______________9. It describes the complete manufacturing process.
_______________10. Section that discusses the risk that might prevent the
ACTIVITY 1: business from achieving its objectives.
Major Sections of Business Plan

Identify the major sections of a business plan based on the given
statements.
_______________1. For manufacturing business, this section describes the flow of
goods and services from production to the customer. For Service business, this
section must describe the procedures in completing a business transaction.
_______________2. This section provides documentation of the venture’s form of

ownership.
_______________3. Prepared after the total plan has been written, must stimulate
the interest of its reader, especially if he or she is a potential investor.
_______________4. This section is the venture’s mission statement, which could

serve as a guide in decision making.
_______________5. This section determines the investment that must be poured

into the business and indicates whether the business is an economically viable
undertaking.
_______________6. This cover page provides a summary of the business plan’s

content.
27
unacceptable
Criteria 5 4 3 2 1
etc.)
Questions:
1. Given the uncertainty and dynamic nature of the business environment, is
a business plan necessary? Cite the reasons for your answer.
2. Why is it important for start-up businesses to come up with monthly cash
flow projections, especially during the first year?
28
The Marketing Plan

UNIT ONE
MODULE • Define what a marketing plan is
• Explain the relevance of the industry analysis to the market
6 planning process
Inclusive dates: • Identify the steps in preparing the marketing plan
• Determine the elements that must be considered on developing
strategy for each component of the marketing mix.
Overview: A. Pricing strategies – must consider the purchasing power of the customers
In this module, we look more closely at the marketing plan and spell out as well as the price levels of similar products available in the market.
the steps that must be taken in preparing it. We also examine the components of B. Distribution strategies – must consider transportation costs or the costs of
the marketing mix and discuss what must be considered in developing a marketing operating a retail outlet.
strategy and its accompanying action plan. a) 4P’s of marketing – Product, Price, Place (distribution), and
promotion (also known as the marketing mix)
What is a Marketing Plan? C. Competitor’s Strategies – an important component of the industry analysis
is a documentation of the current strategies of competitors. The
A marketing plan is a document containing the marketing objectives,
entrepreneur can get hold of the company catalogs, flyers, and brochure,
marketing strategies, and the activities that will be undertaken to execute these
reading newspaper and magazines articles, and interviewing customers,
strategies. The plan must consider the overall goals of enterprise, which must take
suppliers, and distributors.
precedence over the specific marketing objectives.
It must also be based on valid assumptions about the financial resources,
Comparison of the Marketing Strategies of Major Competitors
physical resources, and human resources that will be available to the business
venture. Thus, planning for an aggressive advertising campaign at the early stages Company Company Company Your
of the venture might not necessarily serve the interest of the business that has A B C Company
scarce resources. Target Market
Just like any plan, the marketing plan must have specific and measurable
objectives that will allow the entrepreneur to monitor performance ad control Product/ Service strategies
business activities. It must also be able to anticipate certain scenarios that will Pricing strategies
allow the entrepreneur to adjust his strategies accordingly.
Distribution strategies
Competitor Analysis Promotion strategies
The marketing strategies that the entrepreneur will execute must be based
on an intelligent assessment of the business environment.
29
Once the strategies have been summarized, the entrepreneur can now proceed to ✓ Setting the marketing goals and objectives
identify his competitors’ strengths (or benchmarks that must be met or surpassed) Marketing objectives must be S – Specific, M – Measurable,
and weaknesses (or gaps in the execution of the strategy). A – Attainable, R – Realistic, and T – Time-bound
The MADI questions of Dr. Ned Roberto provides a useful way of identifying unmet
or unsatisfied customer needs and expectations. This will require the entrepreneur ✓ Developing marketing strategy and action programs
to interview customers or to conduct a focus group discussion (FGD) to determine
the following about products or services that now exist in the market:
➢ M – What is Missing?
➢ A – What is Annoying?
➢ D – What is Disappointing?
➢ I – What is Irritating?
➢ Product – must include a description of the product or service that
Strengths and Weaknesses of Major Competitors will be offered by the business.
Company A Company B Company C ➢ Pricing
o Cost-based pricing – calculating both variable cost (direct
Strengths labor, raw material, commission given to a salesperson, or
(Benchmarks) the cost of packaging) and fixed cost (cost of things such
as facilities and equipment that do not change with the
number of units that are produced.
Weaknesses o Competition-based pricing – considering the existing
(Execution products or services in the market is a must.
gaps) o Value-based pricing – awareness of the value attached by
customers to products or services.
➢ Place
What are The Steps in Preparing a Market Plan? o Channel directness -
Preparing a market plan involves the following steps: o Customer’s convenience
✓ Assessing the business situation o Cost effectiveness
✓ Defining the target market ➢ Promotion – It is essential for the entrepreneur to make his
Step 1: decide what a general market or industry you wish to enter product known to his potential consumers. He can do this by
Step 2: Divide the market into smaller groups based on customer utilizing traditional media such as print, radio, and television, or by
characteristics tapping new media such as the internet.
a. Demographics ✓ Preparing the budget for the action plan
b. Psychographic
c. geographic
30
Extended Marketing Mix ✓ Physical: the elements of the physical environment the customer
The marketing mix is the combination of elements used by a business to experiences
enable it to meet the needs and expectations of customers.
It is called a marketing mix because each element of the marketing mix is
related to the others. The challenge for marketing is to ensure that the elements
of the mix work together to achieve the marketing objectives. Traditionally the
marketing mix has been taken to comprise four elements: (product, price,
promotion, and place).
However, in recent years it has become more common to add three new
elements to the traditional marketing mix, making a combined 7p’s. This is the so-
called extended marketing mix.
The 7p's extended marketing mix therefore comprises the following elements:
Reference Links:
https://www.tradepressservices.com/marketing-plan-delivering-results/
https://www.techasia.com10-popularecommerce-sitesphilippines
✓ Product: the good or service that the customer buys
https://www.tutor2u.net/business/reference/the-extended-marketing-mix-
✓ Price: how much the customer pays for the product 7ps#:~:text=The%20extended%20marketing%20mix%20(7P's,%3B%20people%3B%20proc
ess%20and%20physical.&text=This%20is%20the%20so%2Dcalled%20extended%20market
✓ Place: how the product is distributed to the customer
ing%20mix.
✓ Promotion: how the customer is found & persuaded to buy https://blog.hurree.co/blog/marketing-mix-7ps
www.plushandplay.com
✓ People: the people who contact customers in delivering the product
✓ Process: the systems and processes that deliver a product to a customer Phoenix Publishing house Inc
31
Important Reminders
ACTIVITY 1:
Preparing Marketing Plan
Prepare a sample marketing plan for a product idea. Your output will be graded
based on this rubric:
unacceptable
Criteria 10 8 5 2 1
Content Quality (Informative, well organized
etc.)
Accuracy of facts
32
unacceptable
Criteria 5 4 3 2 1
etc.)
Questions:
1. Why is it important to define the target market when preparing a
marketing plan?
2. What is the difference between cost-based pricing and value-
based pricing? Which pricing scheme is more advantageous for the
entrepreneur? Explain your answer.
33
The Organizational Plan

UNIT ONE
MODULE • Define what an organizational plan is
• Explain the advantages and disadvantages of the different legal
7 forms of ownership
Inclusive dates: • Discuss the organizational structure of the business
• Explain how the board of advisers can provide support to the
management team of a new business venture
Overview:
After the entrepreneur identifies the needs of his target market and spells Legal forms of Business Ownership
out his strategy and action plan, he can now proceed to the legal and organizational Things to Sole proprietorship Partnership Corporation
aspects of setting up the business. In this module, we discuss the advantages and consider
disadvantages of the different forms of ownership. We also emphasize the need to Ownership One person No limit on number of No limit on number
highlight the qualifications, skills, and business experience of the proposed partners of stockholders
business’s principal owners and its management team. We also touch on the
important role played by business advisers, who could fill in some competency gaps Cost and ease Low; easy Low; relatively easy High; more difficult
of starting the
of a new business.
business
What is an Organizational Plan? Liability of the

owners
Unlimited, risk
shouldered by
Unlimited for the
general partner;
Stockholders
typically not liable
The organizational plan is the section of the business plan that identifies owner alone limited for limited beyond their
the form of ownership the business venture will take. It provides background of the partners investment
management team; describes the organizational structure, including the Share of profits Owners receives all Depends on partners’ Stockholders can
management team’s roles, responsibilities, and reporting relationships; outlines and losses the profits and all investments and on share in profits
the planning, decision making, monitoring, and evaluation processes; and spells the losses agreement of partners through dividends
out the role of the board of advisers, among others. This section of the business Management Owner makes all General partners have Majority
plan must provide sufficient information to assure potential investor and creditors control decisions equal control, and stockholders have
that the money they are asked to pour into the business will be in good hands. majority rules control form a legal
standpoint
Forms of Ownership Ability to raise Limited Moderate High
One of the important decisions an entrepreneur must make is the form of capital
ownership the business will take. He could choose form any of the three basic legal Transferability Fully transferable Typically requires Stockholders can sell
forms ownership. of ownership consent of partners or buy stock at will
34
Continuity of Owner’s death Death or retirement of Death or withdrawal The Management Team
business dissolves the the general partner of owner(s) does not If the enterprise has a management team that is largely distinct from the
business dissolve the affect he business’s business owners, it is best to highlight their qualification, skills and managerial
partnership legal existence experience, especially in relation to the position, for which they will be handling.
Organization structure About the Management Team

This section of the organizational plan will show the reader of the business Name of the Job title, duties, Qualifications Managerial
plan who the principal owners of the business are, who constitutes the Manager and Experience
management team, and who provides valuable advice to the business owners Responsibilities
and/or management team. In a small entrepreneurial venture, the organization
structure could be as simple as the owner-manager being at the helm of enterprise
with a few individuals directly reporting him. As the workload increases, though,
the business will need additional employees, with more defined roles and
responsibilities.
Business Owners
One section of the organization plan could be a listing of the business
owners and their qualification. Their previous entrepreneurial experience, if any,
and the extent of their investment in the business could also signal who among
them would have a strong influence in determining the general directions the
business will take.
Showing detail about the business owner
Name of major Qualifications Previous Capital
owners (partners Entrepreneurial Contribution
or shareholders) Experience
35
Business Advisers
It is rare for a new (or proposed) venture to have all the expertise it needs
to grow the business at the onset. It is best to be candid about this. The business
owners, however, reinforce their management team by having a board of advisers
or consultant – a group of individuals that the company invites to provide their
inputs and insights on how to run the business.
36
Important Reminders
ACTIVITY 1:
Creating Organizational Plan
Prepare a sample of your Business’ Organizational plan. Your output will be graded
based on this rubric:
unacceptable
Criteria 10 8 5 2 1
Content Quality (Informative, well organized
etc.)
Accuracy of facts
37
unacceptable
Criteria 5 4 3 2 1
etc.)
Questions:
1. What are the advantages and disadvantages of each form of business
ownership?
2. How can a young entrepreneur compete with older, more
experienced entrepreneurs? Is it enough to have a novel business
idea? Explain your answer.
38
3r Quarter Project
GENERAL PROJECT INSTRUCTIONS
In 1-6 members, create a product and introduce it to the market through Online
Selling. While doing this activity, gather the necessary information needed in
making a Business plan.
39
40

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Asian Institute of Computer Studies (AICS)

MODULE At the end of this module, you are expected to:

Entrepreneurship Career Entrepreneurship Career • Nutrition center manager

Hayes, A. (2020). Entrepreneur Retrieved from: https://www.investopedia.

Entrepreneurship: Characteristics, Importance, Types, and Functions of Entrepreneurship,

What Is the Importance of Entrepreneurship? Retrieved from:

Why We Need to Study and Learn Entrepreneurship? Retrieved from:

Picture Analysis image retrieved from: https://images.app.goo.gl/ZN4XNyQEaDxz6aA76

Habaradas, R. B., Tullao Jr., T. S. (2017) Pathways to Entrepreneurship. Quezon City,

Guide Question: What appropriate product and/or business that can be

______3. Which of the following is a relevance of Entrepreneurship to SHS

______4. Which statement is not correct about the status of entrepreneurship in

MODULE At the end of this module, you are expected to:

Organizing resources – Describes the process of identifying, sourcing, and financing

External Factor engaged in manufacturing, extractive enterprises, and business services

requires qualities of flexibility, dynamism, and self-control on the part of

Habaradas, R. B., Tullao Jr., T. S. (2017) Pathways to Entrepreneurship. Quezon City,

Reaping the returns

2. Would you describe yourself primarily as a critical thinker, a creative

Generating Ideas: Harnessing Logic and Creativity

Creativity can be described as the capacity of individuals to originate new

a variety of goals, challenges, issues, and problems. Such

Habaradas, R. B., Tullao Jr., T. S. (2017) Pathways to Entrepreneurship. Quezon City,

Recognizing, Assessing, and Exploiting Opportunities

Overview: extensively shaped by his educational background. Aside market is

the market? What segment of the market is your product or service

2. Intuitive approach – starts with the recognition of an opportunity and

Product planning and development process

Habaradas, R. B., Tullao Jr., T. S. (2017) Pathways to Entrepreneurship. Quezon City,

1.2 Commercialization stage

Product Development Stage

Test Marketing Stage

The Business Plan

• 4 C’s of credit: Character, cash flow, Major sections of a Business Plan

• Distribution • Curriculum vitae of the management

Major Sections of Business Plan

_______________2. This section provides documentation of the venture’s form of

_______________4. This section is the venture’s mission statement, which could

_______________5. This section determines the investment that must be poured

_______________6. This cover page provides a summary of the business plan’s

The Marketing Plan

The Organizational Plan

What is an Organizational Plan? Liability of the

Organization structure About the Management Team

GENERAL PROJECT INSTRUCTIONS

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