MODULE 2
ROUTES TO ENTREPRENEURSHIP
Lesson 1 Business Types, Industries and Trends
Lesson 2 Legal Forms of Business
Lesson 3 General Requirements in Putting Up a
Business
Lesson 4 SME Laws and Programs in the Philippines
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MODULE 2
CONCEPTS AND BACKGROUND OF ENTREPRENEURSHIP
INTRODUCTION
Entrepreneurship is the dynamic process of creating incremental wealth. This
wealth is created by individuals who assume major risks in terms of equity, time, and/or
career commitment of providing value for a product or service. The product or service itself may
or may not be new or unique but the entrepreneur must somehow infuse value by securing and
allocating the necessary skills and resources.
The Routes to Entrepreneurship offers guidance on different aspects related to the
entrepreneurial culture and provides the students with the tools necessary to develop their
entrepreneurial skills.
OBJECTIVES
After reading this module, you will be able to:
1. Identify the various business trends in the Philippines;
2. Generate ideas of possible business in the future;
3. Understand the different legal forms of business in the Philippines;
4. Determine the general requirements in putting up a business; and
5. Identify and understand various laws and programs for SMEs in the Philippines.
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Lesson 1
BUSINESS TYPES, INDUSTRIES AND TRENDS
Learning Outcomes:
At the end of the lesson, students are expected to:
1. Identify various fields of business
2. List, compare, distinguished and explain the various types of business
3. Identify the various business trends and generate ideas of possible future
businesses in the Philippines
Field of Business
The field of business refers to industrial categories of business such as farming,
food processing, construction, garments, beauty and wellness and etc. Your skills,
talents, family backgrounds as well as your education, hobbies and experience will
determine or help you decide what field of business you are going to engage in.
Major Types of Business
1. Merchandising Business/Trading. This a type business where the
entrepreneur is engaged in buying and selling of goods without changing
its form. Selling in small quantities or “tingi-tingi” is called retailing while
selling in bulk or in big quantities is called wholesaling. Some common
types of trading is the sari-sari store, grocery stores, department store,
talipapa, supermarket.
2. Service Business
A service type of business provides intangible products (products with no
physical form). Service type firms offer professional skills, expertise,
advice, and other similar products.
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Other business under this sector are the following:
School Internet café/shop
Entertainment houses Beauty parlor
Medical/dental clinic Barber shop
Tutorial services Daycare center
Bookkeeping/Accounting firm Restaurant
Hospital Bayad/remittance center
Call centers Flower shop
Bus and transportation business Dress shop
3. Manufacturing Business. Not like in merchandising or retailing business,
a manufacturing business buys products with the purpose of using them as
raw materials in making a new product. A manufacturing business
pools raw materials, labor, and overhead costs in its production process
and manufactured goods will then be sold to customers. Examples of
manufacturing business are the Baked-goods, Shoe Manufacturing, Grape
Wine Production, Soya Chunks Processing, Candle Manufacturing,
Cosmetics Manufacturing, Wigs, Weaves and Hair Extensions,
Towel Manufacturing and etc.
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4. Hybrid business
Hybrid businesses are enterprises that offer more than one type of
business. A restaurant, for example, combines ingredients in making a fine
meal (manufacturing), sells a cold bottle of wine (merchandising), and fills
customer orders (service).
Here are some trending business in the Philippine industry today.
1. Food Cart Business
Since most Filipinos love to eat, there is no question that food business in the
Philippines never go out of style. Food cart business now a day is one of the
most common businesses that you can see anywhere, since it is cheap and
easy to market. The business is also convenient to set up anywhere like in
mall, park and school. Most food carts offer snack like French fries, siomai,
waffles, hotdogs, Korean street foods, nachos and others.
2. Eco-friendly Products
Since most of the consumers now a day is more aware of products in the
market affects the environment, most of them preferred to buy eco-friendly
products or organic. The same reasons why entrepreneurs are switch their
products to a more environmental friendly and organic. In this way they will
able to support the common drive and mission to save mother earth. Among
popular organic products are agricultural products such as eggs, vegetables
and fruits however there are also other products that are eco-friendly like
tote bags, bamboo toothbrush, reusable baby diapers, utensils and others.
Such business undertaking create more jobs for local people since they are
hired to do organic products.
3. Healthcare Business
People are now becoming more conscious about their health and well -being.
Since health care business is diverse investors invest in different undertakings
like pharmaceutical companies, medical device manufacturers, health
insurance companies, and health technology companies. The government is
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supportive to new initiative, inventions and innovative technologies due to its
soaring cost
which becomes more viable and highly rewarding to invest in this type of
business.
4. Water refilling station
Water is important for man’s survival. But because of too much pollutants in
our water resources water become a economic good, since man demand for
clearer water, water refilling station business becomes one of the most
favorable and profitable business today. Unlike any other product water will
always be high in demand and easier to handle that encourage more business
man to engage in.
5. Beauty and Wellness
With onset of social media (like twitter, facebook and the like) and various
exposures of people they become more conscious of their physical
appearance and their well-being. We can safely say that people now are
prioritizing the lifestyle, taking health more into consideration .This
encourage investors/marketers and dealers since many consumers are
proactive, and they’re disbursing their income on lifestyle-based wellness
strategies. This is the heart of the wellness economy, as the industry enables
consumers to integrate wellness activities and lifestyles into their daily lives.”
6. Bayad Center
Busy people normally look for convenience of almost everything. Bills like
electricity, phone, internet, cable connections and credit cards are normally
received monthly and on different due dates. While we live though
convenience, Bayad Centers normally provide great help in saving effort, time
and energy and making transaction faster and accessible. For investors this is
a good business since profit comes with every transaction and there a stream
income coming in.
7. Cold Drink Stand
Milk tea and fruit shakes are always in demand especially during hot seasons.
It becomes very profitable in recent years since there are known brands which
even expand their business through franchising.
8. Car Wash.
With too many cars available in the market demand for this type of business
also increase. And since road trips have become a chosen gateway of most
people who wants to relax and stay away from work, stress and etc, there are
more cars which fill up roads, hence, there is continuous influx of owners who
will be looking for a carwash services.
9. Laundry Shop
People becomes too busy to fulfill all their household chores, one of which is
doing laundry. Laundry shops becomes life saver for most people living in a
very hectic schedules and workloads. Hence, this become a very popular
business in urban areas.
10. Education
Education never goes out of trend especially because parents always look for
the welfare of their children. Parents who are working and spend only limited
time to their children normally look for a good school or a tutorial service that
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would compensate and help their children in their schooling or schooling
activities.
11. On-line business
Online or e-business is one of the most popular businesses today. These are
commercial transaction that includes sharing of information using the
internet. Online business requires very low budget but reach global audience.
Take note: Trends in business are dynamic, however those which thrive longer are
those goods and services which offers basic necessities of the people. Business ideas
listed above maybe trendy but do not guarantee you that once started will have
immediate success. Careful planning, proper researching, constant updating and
complying with legal requirements are necessary when starting a business.
Assess yourself to what type of business you should opt for
1. My interest – I love doing the Possible field of business you can
following activities (include all engage.
your hobbies
2. My experiences- I have
experience doing the following
(list jobs, task, and other
assignments you have experience)
3. My social networks include (write Possible type of business you will
all friends, organizations, engage in.
business affiliates you have
including their positions
4. My preference is to:
Remember your assessment can help you direct the field and type of business you are suited for.
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Look around and identify the field and type of business that people ventures in your
place.
Agriculture
F
I
Beauty and
E Wellness
L Garment
D
Food Ex. EJ’s fish canning
O Add more
I
N
E
S
S
Manufacturing Service Wholesaling Retailing
TYPE OF BUSINESS
Know more about business trends in the Philippines, log on:
https://www.cnbc.com/2018/10/16/top-10-industries-that-are-
hiring-thriving-and-making-money.html
https://www.youtube.com/watch?v=XUoanUUbISM
https://www.youtube.com/watch?v=NTYocgnA8Pw
GEEC 112 – The Entrepreneurial Mind Module 2
