Learning Objectives:

At the end of the lesson the students will be able

to:
1. Define Entrepreneurship and
entrepreneur in the context of small and
medium-scale industries.
2. Memorize the 4 aspects of
entrepreneurship.
3. List the help the government can extend
to entrepreneurs.
4. State the role of entrepreneurs in the
economy
5. Discuss the role of entrepreneurship
in economic growth
Entrepreneurship
The process of creating something new
with value by developing the necessary
time and effort, assuming the
accompanying financial, psychic, and
social risks, and receiving the resulting
rewards of monetary and personal
satisfaction and independence.
Four basic Aspects of Being an
Entrepreneur:
1. Creation of something of value
this means entrepreneurs create products or
services that can be offered for a price.
2. Devotion of necessary time and effort
devote time and effort towards the attainment of
personal goals such as earn profit, to make
products/services available in the community, to
provide employment and income to their family
etc..
3. Assumption of necessary risks
entrepreneurs assume risks on the
possibility of losing whatever they put in.
But the possibility of earning big is even
greater.
4. Getting rewards
Reap the rewards of their efforts through the
generation of profits and business
expansion. Moreover the prestige of being a
business owner provides intrinsic
satisfaction.
Who is an entrepreneur?
A person who starts and/ or operates a
business. An entrepreneur is creative and
innovative. A person who starts something
new. He is an owner-manager and willing to
take risks. Usually he is someone not willing
to work for others but he wants others to
work for him instead. His kind of business
is single proprietorship, because he does
everything from production to selling.
Role of Entrepreneurs in the
Economy
1. Mobilizers of capital. Entrepreneurs
sometimes use their own savings as capital for
their business ventures or borrow from borrow
from banks to finance their intended business.
2. Service providers. Business ventures of
entrepreneurs could be along the line of service
like parlors, spas, or coffee shops.
3. Employers. Usually, entrepreneurs hire people
to help them in their business.
4. Tax Payers. Business establishment
pay taxes to the government.
5. Suppliers of Products. Products and
services are available through the
efforts of the entrepreneurs.
Needs of MSME to succeed in their
ventures.
 Microbusiness, small and medium enterprises (
MSME) provide employment for 70 percent of the
Philippine labor force. To attain this the SMSEs should
have a more access to

1. Credit
2. Better source of raw materials
3. Modern technology
4. More marketing information
Government Strategies to help
SMSEs.
1. Provide credit, technology and
marketing support to new
enterprises.
2. Tap overseas Filipino workers
to invest their earnings to
SMSEs.
3. Promote greater involvement of
local government units in
promoting small business
activities by:
a. Providing them information on
business opportunities.
b. Available sources of funds
c. Latest product design.
RA 9178 of 2002
Barangay Micro Business Enterprise Act of
2002 provides five incentives and benefits.
These are:
1. Exempt BMBEs from income tax and
encourages LGUs to exempt or reduce local
taxes imposed on BMBes.
2. Exempt BMBEs from coverage of the
minimum wage law
3. Improve credit delivery to
BMBEs
4. Provide for technology
transfer, production and
management training, and
marketing assistance to BMBEs
5. Provide trade and investment
promotions to BMBEs.
Importance of small and Medium
scale businesses in the country
1. They help provide the supply of
products to costumers.
2. They help provide personal
service.
3. Small and medium scale business
serves as a means of earning to an
unemployed individual.
4. The small and medium scale
businesses also provide
employment to other people.
5. Small and medium scale
entrepreneurs also pay taxes to the
government and such payment
allows the government to provide
service to the people.
Assignment
1. List down ten entrepreneurs in your community
and present in class the type of businesses they
are engaged in. Ask also their reasons for
engaging in business.
2. Read RA 9178 from DTI website at
www.dti.gov.ph
what is the main objective of the law?
Mention 3 major incentives from the law. Explain
the advantages of these incentives to a small
business enterprise.
Quiz
In your own words define
a. Entrepreneurship
b. Entrepreneur
c. List the 4 aspects of an
entrepreneur
d. 5 Roles of entrepreneurs in the
economy