1. ENTREPRENEURIAL
AND
BUSINESS MANAGEMENT
DARPO BULACAN AND PFCCO-CLRL
JUNE 3-6, 2014
1

2. 83

3. DEFINITIONS OF AN ENTREPRENEUR
• Joseph Schumpeter :
“ Individuals who
introduce something
NEW in the market
or economy”
84

4. Joseph Alois Schumpeter (1934)
Entrepreneurship is seen as new
combinations including the doing of new
things or the doing of things that are
already being done in a new way.
New combinations include
1) introduction of new good,
2) new method of production
3) opening of a new market
4) new source of supplies
5) new organizations.
Austrian-Hungarian-
American economist
and political scientist.
85

5. Entrepreneurship research
seeks to understand how
opportunities to bring into
existence future goods and
services are discovered,
created, and exploited, by
whom, and with what
consequences. an Indian-born American and
British structural biologist, who
shared the 2009 Nobel Prize in
Chemistry with Thomas A.
86

6. is more than a word. It is a mission.
capacity for innovation.
investment and expansion of new markets
products and techniques
invest resources to make something
unique.
87

7. 88
Ang
"ENTREPRENEURSHIP" ay
isang siyensya at pag-
aaral ng pangangalakal ng
mga bagay bagay at
paglilingkod sa maaaring
makapagpaunlad ng
kabuhayan ng isang tao.
“QUALITY OF LIFE”

8. DEFINITIONS OF AN ENTREPRENEUR
• Derived from French
word Entreprendre
• Peter F Drucker:
“One who considers the
changes that take place
in market as an
opportunity to do
business”
89

9. DEFINITIONS OF AN ENTREPRENEUR
• New encyclopaedia:
“An individual who
bears the risk of
operating business in
the face of
uncertainty about
the future
conditions”
90

10. ENTREPRENEURSHIP IS ABOUT
• Opportunity
identification
• Ideas generation
• Risk taking
(Calculated risk)
91

11. ENTREPRENEURSHIP IS ABOUT
• Wealth creation
• MONEY : Cash flow
and Profitability
92

12. ENTREPRENEURSHIP IS ABOUT
• Discipline
• Growth and sustainability
• Falling and rising
93

13. ENTREPRENEURS ARE BORN NOT MADE ?
YES
OR
NO
94

14. 95

15. Steve Welch is a Pennsylvania businessman who ran as a Republican for the
United States Senate in the 2012 election, losing to Tom Smith in the
primary.[1]
Welch was endorsed by Governor Corbett, State Republican
Party, Philadelphia Inquirer[2] and Pittsburgh Post Gazette.[3]
Welch was raised in Chester County, Pennsylvania, where he still resides in
the borough of Malvern.[4] Welch, a former Democrat, graduated
from Unionville High School and earned an engineering degree from Penn
State University.[5]
In 2001, he founded a pharmaceutical company, Mitos, that
made flu vaccines more efficient.[5][6] Welch sold Mitos to Parker Hannifin in
July 2007.
He later founded two other companies, DreamIt Ventures, which helps new
businesses get started, and KinderTown, an educational technology
business.[5]
In 2013 Welch sold KinderTown to Demme Learning.
Forbes ranked DreamIt Ventures the number 3 accelerator in the world.[7]
96

16. ENTREPRENEURS ARE BORN OR MADE ?
• There is an entrepreneur side of every human
being
• On a daily basis we are consciously or
unconsciously doing either, some or all of these;
 Conceptualizing
 Selling
 Buying
 Negotiating.
97

17. .
• Conceptualizing, selling, buying and
negotiating are all rudiments of business
therefore if we do any of these every now and
then, we may not be wrong to simply say that
by nature every man or woman has business
basics in him or her.
98

18. IT IS IN YOU
99

19. IT IS IN YOU
• Entrepreneurship is in everybody
• In some people the entrepreneur side or what
may be referred to as an entrepreneurial
spirit or nature must be carefully unlocked or
positively energized to manifest
entrepreneurship.
• One of the objectives of this seminar is to
unlock and energize the entrepreneurial
nature of everyone in attendance today.
100

20. IT IS IN YOU
101

21. ENTREPRENEURSHIP
• The key driver of job creation and
economic growth.
• It provides many people with career
oppoprtunities that better fit their preferences
than waged employment.
• It is a response by the significant numbers
of people to job losses in the current global
financial crisis.
102

22. Economic Development
1. Human resources (labor supply, education,
discipline, motivation)
2. Natural resources (land, fuel, climate)
3. Capital formation (machines, factories, roads)
4. Technology (science, engineering, management,
entrepreneurship)
ELEMENTS:
103

23. Economic Development
• The improving economy has a lot to do with the Small
Medium Enterprise’s impressive performance.
• In the last five years, the MSME sector accounted for
about 99.6% of the registered businesses in the country
by which 63% of the labor force earn a living.
• Around 35.7% of the total sales and value added in
the manufacturing come from MSMEs as well.
104

24. What is an entrepreneur?
Entrepreneur is an owner or manager of a business
enterprise who makes money through risk and initiative.
The entrepreneur leads the firm or organization and also
demonstrates leadership qualities by selecting managerial staff.
Management skill and strong team building abilities are essential
leadership attributes for successful entrepreneurs.
Entrepreneurs emerge from the population on demand, and
become leaders because they perceive opportunities available
and are well-positioned to take advantage of them. An
entrepreneur may perceive that they are among the few to
recognize or be able to solve a problem. 105

25. What is an entrepreneurship?
Entrepreneurship defined as:
"one who undertakes innovations,
finance and business acumen in an
effort to transform innovations into
economic goods".
106

26. Exercise 1
• Self-Assessment
107

27. WORKSHOP
If you have been able to answer “yes” to 18 of the above
questions then you have the potential to successfully start
your own business.
If you answered less than 18 questions “yes” then look for
supplemental help in the areas you answered “no” to by
improving your own skills, hiring help or finding a business
partner that is skilled in that area.
It takes a variety of different skills to successfully run a
business, so look at each question to which you answered
“no” as an opportunity for improvement.
108

28. Types of Entrepreneur
Social entrepreneur – motivated by desire to help,
improve and transform social, environmental,
educational and economic conditions
Serial entrepreneur – comes up with new ideas and
starts new business
Lifestyle entrepreneur – places passion before profit
when launching a business in order to combine
personal interest and talent with ability to earn a
living.
109

29. 1. Social Entrepreneurship
(Panlipunan)
110
2. Business Entrepreneurship
(Pangkabuhayan)
3. Techno Entrepreneurship
(Teknolohiya)

30. 111
Driving Economic Growth and Prosperity

31. NGO
(non-
profit)
NGO
(for-profit)
Social
Enterprise
Social
Business
Business
Enterprise
CSR
Profit
Maximization
Business
(PMB)
Business
Enterprise
112
Non-Government/al Organization

32. • “Any creative and innovative solution
applied to solve social problems”
(Mohammad Yunus, 2007)
– It involves social mission
– Profit and/or entrepreneurial processes
113

33. 114

34. • “Search for approaches to move poor people
out of poverty beyond welfare-based safety
nets.”
115
social entrepreneurs are driven
not by money but by content,
risk‐taking, implementing
innovative ideas,
fulfilling social missions.

35. 116
Painters, actors, musicians, writers and all other
cultural professionals always look beyond the usual,
they create and take actions, use their imagination
to make something new.
It is important to outline that entrepreneurs are
those who not only invent and implement an
innovative idea, but bring it to an economically
successful end, considering the market
viability and the positive financial impact on
community members.

36. • Mother
Teresa did
what no other
person has
done before –
to take care of
the poor,
destitute and
lepers
117

37. 118

38. 119

39. 120
Social entrepreneurship overcomes the
gap between the business and the public
sectors, as it is connected to the
“non‐profit” or the “third” sector, as well
as to the concept of the
“social economy”, with emphasis on
objectives to serve communities and
society rather than generating a
company’s profit.

40. 121
Derived from the
French entreprendre,
" to undertake".
Someone who is willing
and eager to create a new
venture in order to present a
concept to the marketplace.
Entrepreneur –

41. COOPERATIVE ?
Is it a Social
Entrepreneurship?
122

42. • It’s about the study of systems,
structure, and staffing to make a large
corporation stay competitive,
innovative, and profitable on a
sustainable basis.
123

43. Start
Growth Decline
Survival /
Failure
124

44. No longer excellent!...
• In 1983, there was the book In Search of
Excellence by Tom Peters and Waterman. It
sold 6 million copies. Then...
• Something went wrong...
125

45. • 33% of the “Excellent” Companies vanished
• Too big to fail companies
• Where are they now?:
Washington Mutual
CAP educational plan
Pacific Bank
Banco Filipino
126

46. Vanishing giants
Dinosaurs of the corporate world
127

47. • Keeping the Sense of Mission
alive as you grow
• Re-instilling customer/product
vision in every employee
• Fostering high-speed innovation
• Making self-inspired behavior
the organization standard
128

48. Entrepreneur (Self)
IDEA REALITY
Resources Opportunity
129

49. ORIGINATOR
OPERATOR ORGANIZERimplementor
130
(nagbigay simula)
(nagbibigay sigla)
(tagapagpatupad)
(namamahala/
Nagpapalakad)
(nagtatag)
Nagsimula ng
pagbabago)

50. Growth (Pag-unlad)
Differentiation
(Pagkakaiba)
Strategic direction
matalinong pagplaplano
131

51. • 90% of the world’s jobs are created by
entrepreneurs
• Source of new products and innovation
• In the third-world countries, the entrepreneurs
keep the sagging economies alive
• It’s the entrepreneurs – not the central bank –
that keep the economy moving
• Finally...
132

52. ECONOMIC
GROWTH
133

53. 134
Millions have done it . . . millions are
dreaming of doing it! Why not
become your own boss? Individuals
are increasingly choosing to go into
business, start their own company,
work for themselves and create their
own job as an alternative means of
taking the future into their own
hands.

54. 135

55. Other trivia:
• Battle of the sexes:
– 51% of all businesses are
started by women
– 55% of all businesses are run
by men
– Of the nascent(growing)
businesses, 60% are run by
women
136

56.  honesty ( katapatan)
137
 courage ( lakas ng loob)
 integrity (integridad/ dangal)
 punctuality ( maagap)
 self-discipline
 humility

57.  Reasonable risk –taker. enjoy challenges. But
they are careful and calculating.
( makatuwiran pakikipagsapalaran)
 Self –confident - have a strong faith in their
abilities. Strong belief, affirmative thinking or
optimistic.
They always think SUCCESS!!!
Nothing is Impossible.
138

58.  Hardworking - Successful people always
attribute their success to hardwork.
Like Thomas A. Edison, said that
success is 99 percent of perspiration
and 1 percent inspiration.
139

59.  Innovative (Malikhain)-
Entrepreneurs are creative. They do
things in new and different ways.
140

60. Essential qualities of a Leader:
 Selfless dedication (lubusang paglilingkod)
141
 Purpose and vision (magandang layunin at adhikain)
Courage (tibay at lakas ng loob)
Conviction (matuwid na pagpapasya)
Enthusiasm (sigla at interes sa ginagawa)
Integrity (dangal)
Tact (maayos na pakikitungo)
Hardwork (masipag)

61. Entrepreneurs are
positive thinkers.
They think of success and bright sides.
Success begets success. Dr. Charles Flory, an
american physiologist, said that wealth
does not always come to the most intelligent
or to the most ambitious individuals, but
those individuals who think MONEY…..
142
But being an entrepreneur you always think SUCCESS.

62.  -
Entrepreneurs make decisions. They
cannot avoid this. Being creative and
innovative, they always make decision on how
to improve their products how to create new
markets, how to increase consumers satisfaction
or how to maximize profits.
 The success of their business depends on
their ability to make the right decisions.
143

63. 1.identifying the problem
2.gathering the data about the problem
3.analyzing the data
4.formulating alternative solutions
5.selecting the best solutions and
6.implementing the solution/ decision.
144

64. The Entrepreneur must possess the following
managerial skills:
1. Ability to conceptualize and plan. The
entrepreneur must view all the aspect of the
business , such as product, price, cost, inventory.
He must be able to plan for the total operation
of the business.
He has the ability to foresee future problems of
his business is an excellent asset.
145

65. 2.Ability to manage others..
146
 Management is getting things done by others.
as business grows, more people are needed. The
entrepreneur must be able to organize work properly
so that his employees can perform their jobs
efficiently and effectively.
 Good human relations and communications are
very important for the entrepreneur.
 By letting others achieve the objectives of the
enterprise

66. The entrepreneur is a generalist.
When a business is still small, The owner
does everything: Clerk, salesman and
manager.
he should be an expert on time
management.
he should acquire basic training in small
business management and specialized
courses in accounting, finance, marketing
and personnel relations.
3. Ability to manage time and to learn.
147

67.  A real entrepreneur does not actually
stop learning.
 He can do this my reading, attending
seminars, or enrolling in college
148

68. 149

69. ENTREPRENUER
BUSINESSMAN
WHICH ONE ARE
YOU?
150

70. 151
• a great deal of INDEPENDENCE
and SELF-DISCIPLINE;
• a good measure of
SELF-CONFIDENCE;
• an above-average aptitude for
DECISION MAKING and
PROBLEM SOLVING;
• a propensity for RISK TAKING;
• FLEXIBILITY and
ORGANIZATIONAL
SKILLS;

71. 152
a great deal of
PERSEVERANCE, unflagging
TENACITY;
• a great CAPACITY FOR
WORK
and boundless ENERGY;
• a great deal of SELF-
CONTROL and TOLERANCE;
• OPTIMISM and
ENTHUSIASM;

72. 153
• LEADERSHIP skills and a
DYNAMIC personality;
 a facility for
COMMUNICATION,
PUBLIC RELATIONS and SALES
 OPEN-MINDEDNESS and
FREE SPIRITEDNESS.

73. BUSINESSMAN
ENTREPRENUER
one who organizes, manages, and
assumes the risks of a business or
enterprise
a man who transacts business
154

74. Some Insights
“I can buy you everything you want but I cannot buy you knowledge.
The best I can do is to give you everything you need to acquire that
knowledge. And that, I have given you. The rest is up to you.”
“The rest is up to me” … those words hit me like a ton of bricks. “
“Belief … passion … and knowledge—a
few important values that I was to bring
back to the Philippines.”
“Be humble. Don’t look at the money, but
rather, look at what you really want to do
and the amount of learning and growth
you would get.
Vivienne Tan – Daughter of Lucio Tan155

75. Portrait of an Entrepreneur
Exercise 2
Identify the part of your body
manifest the portrait of an
entrepreneur . Why ?
156

76. TOP 3 BODY PART/S WHY
1 Brain For generating Ideas
2 EAR /EYES For listening to the advice
of those w/ knowledge &
experience. For seeing
opportunities
3 Heart For the passion,
commitment &
perseverance
EXERCISE 2
Identify the part of your body manifest the
portrait of an entrepreneur. Why?
157

77. Portrait of an Entrepreneur
Body Parts:
Sharp eyes- for seeking out opportunities
Wise eyes- for establishing a vision and setting goals
Wrinkles- for smiling during the fun times
Brain- for generating creative, innovative ideas
Ear- for listening to the advice of those with knowledge and
experience
Glands- for adrenaline: for the rush / for sweat: during hard work
Neck- for sticking out and taking calculated risks
Arms- for hugging members of the team that will determine your
success
Fingers-for counting the positive learning opportunities from any
mistakes, failures
158

78. Portrait of an Entrepreneur
Body Parts:
Heart- for the passion, commitment and perseverance to stick with it
Knee- for bending and praying
Strong foot- for kicking butt when needed
Fleet feet- for moving ahead, keeping ahead and walking paths of
adventure
Strong legs- for leaping over the many barriers and obstacles you will
encounter
Deep pockets- to cover the unexpected
Hands- for shifting gears when necessary
Backbone- for the confidence to believe in one's self and to move
ahead
Mouth- for effective communication and being able to sell an idea
Nose- for smelling signs of trouble and forseeing possible problems
Good ear- for keeping to the ground and sensing change and
opportunity 159

79. Characteristics
Exercise 3
What are the characteristics you
possess in relation to your
identified body part in helping
you become entrepreneur ?
160

80. TOP 3 BODY PART/S WHY
1
2
3
EXERCISE 2
Identify the part of your body manifest the portrait of an
entrepreneur. Why?
EXERCISE 3
What are the characteristics you possess in relation to your
identified body part in helping you become entrepreneur?
And describe your characteristics?
TOP 3 Characteristics Description
1
2
3
161

81. EXERCISE 3
• What are the characteristics you possess in relation to your identified
body part in helping you become entrepreneur? And describe your
characteristics?
162

82. TOP 10 CHARACTERISTICS OF SUCCESSFUL
ENTREPRENEURS
1. Creativity — have the ability to look at problems and needs
from different angles and “think outside the
box”
2. Goal-orientated — constantly set goals for themselves that
challenge their creativity and strengths
3. Hard-working — willing to work long hours to complete
tasks, go the extra mile
4. Commitment — remain focused on an idea or task
5. Willing to take the initiative — always want to be first, do
not sit back and wait for others to take the
initiative
163

83. TOP 10 CHARACTERISTICS OF SUCCESSFUL
ENTREPRENEURS
6. Spirit of adventure — willing to try something new and
different, pioneer
7. Positive attitude — do not let minor setbacks hinder their
progress toward their overall goal
8. Self-confident — believe in themselves and their idea
9. Persistence — keep working at a problem until they solve it
or find an alternative
10. Need to achieve — strong desire to accomplish
something in life and leave a legacy
164

84. Characteristics
Strong need to achieve and seek personal accomplishment
Accept personal responsibility for successes and failures
Believes in ability to achieve goals
Self confidence and self reliance
High drive and energy levels
Strong sense of commitment
Willing to take calculated risks
Innovative, creative and versatile
Hard working and energetic
Tolerates uncertainty
Spirit of adventure
Independent
165

85. AN ENTREPRENEUR’S CREED
1. Do what gives you energy—have fun.
2. Figure out how to make it work.
3. Anything is possible if you believe you can do it.
4. If you don’t know it can’t be done, then you’ll go ahead and
do it.
5. Be dissatisfied with the way things are—and look for ways
to improve them.
6. Do things differently.
7. Businesses can fail. Successful entrepreneurs learn from
failure—but keep the tuition low.
8. It’s easier to beg for forgiveness than to ask for permission
in the first place.
166

86. AN ENTREPRENEUR’S CREED
9. Make opportunity and results your obsession—not money.
10. Making money is even more fun than spending it.
11. Take pride in your accomplishments—it’s contagious.
12. Sweat the details that are critical to success.
13. Make the pie bigger—don’t waste time trying to cut
smaller pieces.
14. Play for the long haul. It’s rarely possible to get rich
quickly.
15. Remember: Only the lead dog gets a change in scenery.
167

87. Characteristics
Responsible
Goal oriented
Persistent
Positive attitude
Takes initiative
168

88. Roles
The essence of entrepreneurship is the creation and building of
business to exploit a market opportunity. To carry out their directive
successfully, the entrepreneur has to take on the following roles: the
inventor, who comes up with new products or processes, often
combining previously
To ensure their success, all businesses, big or small, perform numerous
tasks. Because of limited financial and human resources, sometimes
very limited, it is often the owner of a small business or self-
employed worker who is in charge of both managing and carrying out
all business activities. At one point, the owner will be acting as the
director of finance, and later accountant or bookkeeper. At another
time the role will be one of director of sales and marketing and then
sales person and buying. Being a self-starter and taking initiative, the
entrepreneur will have to take on many roles to ensure their success.
169

89. Roles
These roles are as follows:
•Organizer
• Inventor
• Innovator
• Banker
• Analyst
• Producer
• Promoter
• Manager
• Administrator
• Secretary
• Designer
• Janitor
•Mother and Father
170

90. Skills
Exercise 4
• What are the skills that you
already have or needs to
improve or needs to acquire to
fulfill your dream to become an
entrepreneur ? 171

91. TOP 3 BODY PART/S WHY
1
2
3
EXERCISE 2
Identify the part of your body manifest the portrait of an entrepreneur. Why?
EXERCISE 3
What are the characteristics you possess in relation to your identified body part in helping you
become entrepreneur? And describe your characteristics.
TOP 3 Characteristics Description
1
2
3
EXERCISE 4
What are the skills that you already have or needs to improve or needs to
acquire to fulfill your dream to become an entrepreneur?
TOP 3 SKILLS
Already Have Needs to Improve Needs to Acquire
1
2
3
172

92. Skills
The challenge for entrepreneurs is to think fast,
move quickly and be innovative.
Being Entrepreneurial is learning to challenge and
To reinvent yourself. An entrepreneur requires
numerous skills (alone or in combination with one
or more members of the team).
173

93. Skills
These skills must be developed and used
optimally in order to ensure the sound
management and success of a business.
However, no two entrepreneurs have the same
abilities, but in order to start and grow their
ventures, research has shown that successful
entrepreneurs must acquire the
following skills:
174

94. Skills
JOB EXPERIENCE
Every job you have had should have
contributed to the development of
some business skills. For example,
working as an accountant might teach
you:
1. How to prepare financial statements
2. How to make financial projections
and manage money
3. How to determine the business’s
cash requirements, among other
things
Working as a sales clerk might
teach you:
1. How to sell
2. How to deal with the public
3. How to operate a cash register
175

95. Skills
These skills are as follows:
• Opportunity Identification
• Creative Thinking
• Researching
• Networking
• Evaluation and Assessment
• Goal Setting
• Communication
• Innovation
• Planning
• Organizing
• Decision Making
• Team Building
• Problem Solving
• Leadership
• Stress Management
• Record Keeping
• Financial Management
• Financial Planning
• Negotiation
• Market Analysis
• Marketing
176

96. BREAKDOWN OF ENTREPRENEURIAL
BUSINESS SKILLS
1. Managing MONEY
2. Managing PEOPLE
3. Directing Business Operations
4. Directing Sales and Marketing
Operations
5. Setting up a Business
177

97. BREAKDOWN OF ENTREPRENEURIAL
BUSINESS SKILLS
1. Managing money
a. Borrowing money and
arranging financing
b. Keeping financial records
c. Managing cash flow
d. Handling credit
e. Buying insurance
f. Reporting and paying
taxes
g. Budgeting
2. Managing people
a. Hiring employees
b. Supervising
employees
c. Training employees
d. Evaluating
employees
e. Motivating people
f. Scheduling workers
178

98. BREAKDOWN OF ENTREPRENEURIAL
BUSINESS SKILLS
3. Directing business
operations
a. Purchasing supplies
and raw materials
b. Purchasing machinery
and equipment
c. Managing inventory
d. Filling orders
e. Managing facilities
4. Directing sales and
marketing operations
a. Identifying different
customer needs
b. Developing new product and
service ideas
c. Deciding appropriate prices
d. Developing promotional
strategies
e. Contacting customers and
making sales
f. Developing promotional
material and
media programs 179

99. BREAKDOWN OF ENTREPRENEURIAL
BUSINESS SKILLS
5. Setting up a business
a. Choosing a location
b. Obtaining licenses and permits
c. Choosing a form of organization
and type of ownership
d. Arranging initial financing
e. Determining initial inventory
requirements
180

100. MANAGERIAL SKILLS INVENTORY
Exercise 5
181

101. Rich Dad Poor Dad
ROBERT KIYOSAKI
182

102. Rich Dad Poor Dad
Rich Dad Poor Dad is a book by:
Robert Kiyosaki
It advocates financial independence and
building wealth through investing, real estate
investing, starting and owning businesses,
as well as increasing one's financial
intelligence.
183

103. Rich Dad Poor Dad
Rich Dad Poor Dad is a book by:
Robert Kiyosaki
Rich Dad Poor Dad is written in the style of a
set of parables, ostensibly based on
Kiyosaki's life.
Kiyosaki stresses the ownership of high
value of assets that produces cash flow,
rather than being an employee.
184

104. Rich Dad Poor Dad
• The book is largely based on Kiyosaki's
upbringing and education in Hawaii.
• It highlights the different attitudes to
money, work and life of two men (i.e. his
titular "rich dad" and "poor dad"), and
how they in turn influenced key
decisions in Kiyosaki's life.
185

105. Rich Dad Poor Dad
Among some of the book's topics are:
a) Robert Kiyosaki's personal story
b) The difference between assets and liabilities
c) What the rich teach their kids about money
that the poor and middle class do not
d) The idea that your primary residence is not
an asset, but a liability
e) The value of financial intelligence and
financial literacyselves from frivolous
lawsuits, but the poor and middle class don't
usually do not know how
f) The importance of investing
and entrepreneurship
186

106. Rich Dad Poor Dad
Kiyosaki advocated his former mentor
and American futurist, Dr. Buckminster
Fuller’s views on wealth, that
- wealth is measured by the number of
days the income from your assets can
sustain you, and
- financial independence is achieved
when your monthly income from assets
exceeds your monthly expenses.
187

107. Rich Dad Poor Dad
2 OBJECTIVES
1. How to get out of the Rat Race
2. Pursue your Dream
188

108. Rich Dad Poor Dad
RAT RACE
TRAP
Cycle of Rat Race:
1. FEAR
2. GREED
189

109. Rich Dad Poor Dad
3 TYPES OF INCOME
1. EARNED INCOME
2. PORTFOLIO INCOME
3. PASSIVE INCOME
190

110. Rich Dad Poor Dad
3 TYPES OF INCOME
1. EARNED INCOME
Active Income derived from
employment or regular income
that you get monthly.
191

111. Rich Dad Poor Dad
3 TYPES OF INCOME
2. PORTFOLIO INCOME
Income derived from investments
such as Stocks, Bonds,
Treasury Bills and other paper
assets.
192

112. Rich Dad Poor Dad
3 TYPES OF INCOME
2. PASSIVE INCOME
Income derived from business
aside from your earned income,
rentals, royalties, intellectual
properties, etc.
Ex. Michael Jackson
You don’t have to work for it
193

113. Rich Dad Poor Dad
Lessons Learned:
One dad had a habit of saying, “ I can’t afford it”, and the
other one says, how can I afford it.”
One dad thought that rich should pay more in taxes to take
care of these less fortunate, the other dad says, “taxes
punish those who produce and reward those who don’t
produce”͘
One dad recommend, “study hard so you could have a good
company to work for”, the other dad says, study hard, so
you can find a good company to buy ͘”
194

114. Rich Dad Poor Dad
Lessons Learned:
One dad says, “The reason I am not rich is because I have
you kids”, the other one says, I reason I must be rich is
because I have you kids”
One said, “when it comes to money play it safe, don’t
take risk ͘The other one said, “Learn to manage risk”͘
One believed, “our home is our greatest asset and
achievement”, the other one believed, my home is a
liability, and if your house is the largest investment,
you’re in big trouble”
195

115. Rich Dad Poor Dad
Lessons Learned:
Both dad paid their bills, the first one paid his bills first,
and the other paid his bills last.
One believed on pay raises, medical benefits,
retirement plans, sick leave, vacation days, Tenure
system in the university, other believed in total financial
self reliance.
One dad struggles to save money, the other simply
created investment.
One dad taught me how to write an impressive resume,
so I could find a good job. The other one taught me how
to write a strong financial and business plans, so I
could create jobs.
196

116. Rich Dad Poor Dad
Lessons Learned:
My poor dad said, I’ll never be rich, and the prophecy
became reality ͘My rich dad always says, I’m rich, he has
become broke after a major financial setback, he
continue sly referred himself as a rich man.
There is a difference between being poor and being
broke. Broke is temporary, poor is eternal.
One dad says, acquire the highest position in the
ladder. The other one says, why not own the ladder?”.
197

117. Rich Dad Poor Dad
Lessons Learned:
“Money is a form of power. But what is more
powerful is financial education. Money comes and
goes. If you have an education how money works,
You gain power over it and begin building wealth ͘”
Robert Kiyosaki
198

118. ARE YOU READY FOR AN ENTREPRENEURIAL CAREER?
What follows is a discussion of a few of the most
relevant issues you should consider concerning
your degree of readiness and preparedness for
such a career.
NEED FOR TOTAL COMMITMENT
MANAGEMENT OF STRESS
ECONOMIC AND PERSONAL VALUES
DEALING WITH THE ETHICAL
CHALLENGE
199

119. DEALING WITH THE ETHICAL CHALLENGE
CODE OF ETHICS
1. We will serve our clients, candidates and employees faithfully, with integrity
and professionally.
2. We will observe the highest principles of honesty and fair practice in dealing
with clients, candidates, employees and all regulatory authorities, and will
respect the confidentiality of records in accordance with law and good business
practices.
3. We will provide leadership in the adherence to both the spirit and letter of all
applicable human rights, employment laws and regulations.We will treat all
candidates and employees without prejudice and will not accept an order from
any client that is discriminatory in any way.
4. We will take all reasonable steps to provide clients with accurate information
on each candidate’s employment qualifications and experience, and will only
present those candidates who have given us authorization to represent their
application for employment.
5. We will supply candidates and employees with complete and accurate
information as provided by the client, regarding terms of employment, job
descriptions and workplace conditions. 200

120. DEALING WITH THE ETHICAL CHALLENGE
CODE OF ETHICS
6. We will not recruit, encourage or entice a candidate whom we have
previously placed to leave the employ of clients, nor will we encourage or
coerce an individual to leave any assignment before completion.
7. We will not restrict the right of a candidate or employee to accept
employment of their choice.
8. We will maintain the highest standards of integrity in all forms of
advertising, communications and solicitations, and will conduct our business
in a manner designed to enhance the operation, image and reputation of
the employment, recruitment and staffing services industry.
9. We will recognize and respect the rights and privileges of competitors in
the true fashion of individual initiative and free enterprise and refrain from
engaging in acts of unfair competition.
10. We will continually work toward strengthening our business relationships
and continually improve our services.
201

121. LO2
Develop Business and
Entrepreneurial Activities for
Members.
202

122. FORMS OF SMALL BUSINESS OWNERSHIP, REGISTERING AND
ORGANIZING
A. SOLE PROPRIETORSHIP
B. GENERAL AND LIMITED PARTNERSHIP
C. CORPORATION
D. SSS BUSINESS REGISTRATION
E. PHILHEALTH REGISTRATION
F. PAG-IBIG FUND
203

123. MICRO, SMALL AND MEDIUM
ENTERPRISE
204

124. MICRO, SMALL AND MEDIUM
ENTERPRISE
Micro, small, and medium enterprises
(MSMEs) are defined as any business
activity/enterprise engaged in industry, agri-
business/services, whether single
proprietorship, cooperative, partnership, 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:
205

125. MICRO, SMALL AND MEDIUM
ENTERPRISE
BY ASSET SIZE:
category Asset size
Micro Up to 3M
Small > 3M – 15M
Medium >15M – 100M
Large >100M
206

126. MICRO, SMALL AND MEDIUM
ENTERPRISE
BY NUMBER OF EMPLOYEES:
category # of Employees
Micro 1 – 9
Small 10 – 99
Medium 100 – 199
Large 200 and above
207

127. ROLES OF MICRO, SMALL AND MEDIUM ENTERPRISE
MSMEs play a major role in the country's economic development
through their contribution in the following:
Rural industrialization; rural development and decentralization
of industries; creation of employment opportunities and more
equitable income distribution; use of indigenous resources;
earning of foreign exchange (forex) resources; creation of
backward and forward linkages with existing industries; and
entrepreneurial development.
208

128. ROLES OF MICRO, SMALL AND MEDIUM ENTERPRISE
They are vital in dispersing new industries to the
countryside and stimulating gainful employment. A
country like the Philippines where labor is abundant
has much to gain from entrepreneurial activities.
MSMEs are more likely to be labor-intensive. Thus, they
generate jobs in the locality where they are situated. In
this sense, they bring about a more balanced economic
growth and equity in income distribution.
209

129. ROLES OF MICRO, SMALL AND MEDIUM ENTERPRISE
They MSMEs are quick in assimilating new
design trends, developing contemporary
products, and bringing them to the
marketplace ahead of the competition.
MSMEs tend to be far more innovative in
developing indigenous or appropriate
technology, which may be grown later into
pioneering technological breakthroughs.
210

130. ROLES OF MICRO, SMALL AND MEDIUM ENTERPRISE
They are able to effectively increase the
local content or the value added in final
goods that are processed and marketed by
large manufacturing firms.
MSMEs are notably skilful in maximizing
The use of scarce capital resources and
are able to partner with large firms by
supplying locally available raw materials
in unprocessed or semi- processed
forms.
211

131. ROLES OF MICRO, SMALL AND MEDIUM ENTERPRISE
Also, MSMEs can act as the seedbed for
the development of entrepreneurial skills
And innovation. They play an important
part in the provision of services in the
community. They can make an important
contribution to regional development
programs.
212

132. TYPES OF MICRO, SMALL AND MEDIUM ENTERPRISE
• Appraisal Services
• Automotive trouble shooting
• Balut/Penoy Pedling
• Banana, camote and turon stand
• Barbeque stand
• Buco salad stand
• Burger stand
• Butong pakwan, mani stand
• Brokerage
• Carwash
• Cellphone accessories
• Cellphone repair
• Fishball cart
• Fruits and Vegetable stand
• Sago, Gulaman
• House painting service
• Kakanin stand
• T.V. Electric fan repair
• Vulcanizing shop
• Sari-sari store
• Business Plan Feasibility Study
Preparation Services
• Duplicating stand
• Lugawan
• Newspaper stand
• Notarial services
• Pizza stand
• Plumbing services
• Tinapa, tuyo, daing stand
• Rags production
• Re-packing (paminta, vetsin)
• Scrap buy & sell
• Shoe shine and repairs
• Siomai in cart
• Sorbetes vendor
• Taho production
• Turu-turo
• Tutorial services
• Upholstery
• Watch repair
213

133. TYPES OF MICRO, SMALL AND MEDIUM ENTERPRISE
MANUFACTURING:
• Food processing
• Bags & Accessory Mfg.
• Footwear Mfg.
• Furniture Factory
• Garment Factory
• Handicraft Industries
• Jewellery Mfg.
• Purified water station
• Sash and Decor works
• Soap Making
• Toy Mfg.
SERVICES BUSINESS:
• Accounting Firm
• Janitorial Services
• Security Services
• Collection Agency
• Printing Press
• Cargo Forwarding
• trade Promotions
• Merchandising Business
214

134. TYPES OF MICRO, SMALL AND MEDIUM ENTERPRISE
SERVICES
PERSONAL:
• Tutorial
• Massage Parlor
• Spa
• Voice Lesson
• School Bus
• Skin Clinic
• Dental Clinic
SERVICES
PERSONAL:
• Medical Services
• Funeral Parlor
• Flower Arrangement
215

135. TYPES OF MICRO, SMALL AND MEDIUM ENTERPRISE
SERVICES REPAIRS:
• Auto Repair
• Watch Repair
• Plumbing Services
• Aircon repair
ENTERTAINMENT & RECREATION
• Movie houses
• Arcade games
• Internet Cafe
• Resorts
• Billiard
• Talent Recruitment Agency
216

136. TYPES OF MICRO, SMALL AND MEDIUM ENTERPRISE
SERVICES
HOSPITALITY:
• Hotels
• Motels
• Event Planning
• Catering
• Travel & Tour
SERVICES
EDUCATION:
• Pre-School
• Grade School
• High School
• Colleges
217

137. TYPES OF MICRO, SMALL AND MEDIUM ENTERPRISE
TRADING BUSINESS:
• Auto Supply
• Boutique
• Fish Dealership
• Cellphone Dealership
• Electrical Store
• Grocery Store
• Hardware Store
• Furniture Store
• Gasoline Station
• Gravel & Sand
• LPG Dealership
• Magazine Store
• Meat & Poultry Dealership
• Medical Supply
• Real Estate
• Pharmacy
• Rice Dealership
218

138. TYPES OF MICRO, SMALL AND MEDIUM ENTERPRISE
RENTALS
• Apartment
• Billiard center
• Computer Rental
• Warehousing
AGRI & AQUA BUSINESS
• Broiler Production
• Cattle Fattening
• Dog Breeding
• Poultry Raising
• Hog Raising
• Honey Bee Production
• Quail Raising
• Tilapia Raising
•Raising Livestock
• Graowing Agri plants & crops
• Agri & Aqua Culture
219

139. SEARCH FOR A SOUND BUSINESS IDEAS
A.BEFORE SEARCHING THE BUSINESS IDEA:
i. Assessing the Educational background
ii. Financial Strength
iii. Commitment
iv. Expertise & Interest
v. Personal Qualities
vi. Prior Experiences
vii. External Contacts & Resources
B.FINDING THE BUSINESS IDEAS
220

140. SEARCH FOR A SOUND BUSINESS IDEAS
C. ASSESSING BUSINESS IDEAS
1) Discuss products/services with prospective
customers
2) Assess the market using desk & field research
3) Analyze your competition
4) Consider possible sart-up strategies
5) Set ball-park targets & prepare first –cut financial
projections
6) Prepare a simple action plan
7) Critically examine ideas from all angles
D. FROM BUSINESS IDEA TO BUSINESS PLAN 221

141. ENTREPRENEURIAL OPTION:
START-UP, BUY OUT OR FRANCHISING
A. STARTING A NEW BUSINESS
Advantages and Disadvantages
B. BUYING AN EXISTING BUSINESS
1)Advantages and disadvantages
2)How to value a business
3)Steps in buying a business
C. FRANCHISING
1)Concepts of Franchising
2)Types of Franchising
3)What does Franchising provide
4)Advantages and Disadvantages
222

142. MARKET ANALYSIS AND MARKET RESEARCH
A. ELEMENTS OF OF MARKET RESEARCH
1) Market Information
2) Market Segmentation
3) Market trends
4) Market Size
5) Market growth rate
6) Market opportunity
7) Market profitability
223

143. BUSINESS PLAN (CREATING A BLUEPRINT FOR YOUR BUSINESS)
A. WHAT IS A BUSINESS PLAN?
A business plan is a document that helps the
small business owner determine what
resources are needed to achieve the objectives
of the firm, and provides against to evaluate
the results.The business plan is sort of a blue
print and it keeps the entrepreneur on the right
track. It gives a sense of purpose to the
business.
224

144. BUSINESS PLAN (CREATING A BLUEPRINT FOR YOUR BUSINESS)
B. BUSINESS PLAN FORMAT
1) Title page
2) Vision Statement
3) Mission Statement
4) Executive Summary
5) Marketing Plan
6) Production Plan
7) Organizational & Management Plan
8) Financial Plan
225

145. WORKSHOP
BUSINESS PLAN
BUSINESS PLAN GUIDE QUESTIONS
226

146. 9 RULES FOR BUSINESS SUCCESS
(JOHN GOKONGWEI)
1. Change is inevitable and flexibility is the key.
2. Personal stakes in the company encourage everyone
to work hard.
3. Mistakes and disappointments are inevitable.
4. Good brand building equals reputation.
5. Family support is crucial
6. Never lose sleep thinking of business risks.
7. Pausing to recharge brings new vigor.
8. Reading and travelling enriches one’s mind.
9. Philantrophy is a personal satisfaction.
John Gokongwei, Jr. Is 80 years old yet he continues to
make his mark in the country. His life is a shining
testimony to the great benefits of an entrepreneurial
life.
227

147. ACTION PLAN
Activities Target
date
Milestone
(KRA)
1. Identification of
project (business ideas)
2. Business Plan
Preparation
3. Business
Implementation
June ___, 2014 Submitted to
______ thru
email
228

148. THANK YOU
229