Entrepreneurship
Business Planning, Marketing, and Enterprise Development
In This Lesson
Introduction to Entrepreneurship
What is Entrepreneurship?
The process of designing, launching, and running a new business. An entrepreneur identifies opportunities, takes risks, and creates value by bringing ideas to market.
Characteristics of Entrepreneurs
- Risk-taker: Willing to take calculated risks
- Innovative: Creative problem solver
- Self-motivated: Driven to succeed
- Resilient: Bounces back from failure
- Visionary: Sees opportunities others miss
- Decisive: Makes decisions under uncertainty
Types of Entrepreneurs
By Motivation
- Opportunity-driven
- Necessity-driven
By Scale
- Small business owner
- Scalable startup founder
By Sector
- Social entrepreneur
- Tech entrepreneur
By Approach
- Innovative (new products)
- Imitative (existing concepts)
Business Opportunities
- Identify problems: Solve customer pain points
- Observe trends: Market changes, technology
- Use skills: Monetize your expertise
- Improve existing: Do it better/cheaper
- SWOT Analysis: Assess opportunities
Business Plan
What is a Business Plan?
A written document that describes your business goals, strategies, target market, and financial projections. It serves as a roadmap for your business and is often required for funding.
Business Plan Components
- Executive Summary: Overview of entire plan
- Company Description: Mission, vision, goals
- Market Analysis: Industry, target market, competitors
- Organization: Structure, management team
- Products/Services: What you offer
- Marketing Strategy: How to reach customers
- Operations Plan: Daily business activities
- Financial Plan: Projections, funding needs
Market Analysis
- Target Market: Who are your customers?
- Market Size: How big is the opportunity?
- Competition: Who else is serving them?
- Trends: What's changing in the industry?
- SWOT: Strengths, Weaknesses, Opportunities, Threats
Forms of Business Organization
Sole Proprietorship
One owner, easy to start, unlimited liability
Partnership
Two or more owners share profits/losses
Corporation
Separate legal entity, limited liability
Cooperative
Member-owned, shared benefits
Marketing Mix (4 P's)
What is Marketing Mix?
The combination of factors that a company can control to influence consumers to purchase its products. The 4 P's form the foundation of marketing strategy.
1. Product
What you sell to customers
- Features and quality
- Design and packaging
- Brand name
- Warranty/guarantee
- Product life cycle
2. Price
How much customers pay
- Cost-based pricing
- Competition-based
- Value-based pricing
- Discounts and offers
- Payment terms
3. Place (Distribution)
Where customers buy
- Physical store
- Online store
- Market/palengke
- Direct selling
- Distributors/dealers
4. Promotion
How you communicate
- Advertising
- Social media marketing
- Sales promotion
- Public relations
- Word of mouth
Extended 7 P's (Services)
- People: Staff, customer service
- Process: Service delivery method
- Physical Evidence: Tangible proof of service
Financial Literacy
Why Financial Literacy Matters
Understanding finances is crucial for business success. Most businesses fail due to poor financial management, not lack of good ideas.
Basic Financial Terms
- Revenue: Total money from sales
- Expenses: Costs of running business
- Profit: Revenue minus expenses
- Capital: Money invested in business
- Assets: What the business owns
- Liabilities: What the business owes
- Equity: Owner's stake (Assets - Liabilities)
Financial Statements
Income Statement
Shows profit/loss over a period
Balance Sheet
Shows assets, liabilities, equity
Cash Flow Statement
Shows money in and out
Budget
Planned income and expenses
Break-Even Analysis
Point where Revenue = Total Costs (no profit, no loss)
Formula:
Break-Even = Fixed Costs ÷ (Price - Variable Cost)
Example: Fixed costs ₱10,000, Price ₱100, Variable cost ₱60
= 10,000 ÷ (100 - 60) = 250 units to break even
Sources of Capital
- Personal savings: Owner's own money
- Family/friends: Personal loans
- Bank loans: Requires collateral
- Microfinance: Small loans (CARD, ASA)
- Government programs: DTI, DOLE, SB Corp
- Investors: Angel investors, VCs
MSME & Business Registration
MSME Classification
Micro, Small, and Medium Enterprises (as per RA 9501):
| Category | Assets | Employees |
|---|---|---|
| Micro | Up to ₱3M | 1-9 |
| Small | ₱3M - ₱15M | 10-99 |
| Medium | ₱15M - ₱100M | 100-199 |
Business Registration Steps
- DTI (Sole Prop) / SEC (Corporation): Business name registration
- Barangay: Barangay business clearance
- Mayor's Office: Mayor's/business permit
- BIR: Tax Identification Number (TIN), register books of accounts
- SSS, PhilHealth, Pag-IBIG: If you have employees
Government Support Programs
- DTI Negosyo Centers: Free business counseling
- Go Negosyo: Mentorship programs
- SB Corporation: Loans for MSMEs
- DOLE KABUHAYAN: Livelihood programs
- TESDA: Skills training
- DA: Agricultural enterprise support
Business Taxes
- Income Tax: Based on net income
- Percentage Tax: 3% of gross sales (if VAT exempt)
- VAT: 12% (if gross sales exceed ₱3M)
- Withholding Tax: Tax on payments to suppliers
- Local Business Tax: Paid to LGU
Note: 8% flat tax option available for self-employed/sole proprietors
Record Keeping Requirements
- Official Receipts (OR) for sales
- Sales Invoices
- Books of Accounts (journals, ledgers)
- Keep records for 10 years
- BIR registration of receipts/invoices
Congratulations!
You've completed all SHS TVL Study Notes! You've learned about ICT, Home Economics, Industrial Arts, Agri-Fishery, and Entrepreneurship - the foundations for technical-vocational careers.
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