Entrepreneurship, Innovation and Creativity

COMPETENCY-
BASED LEARNING
MATERIAL

ENTREP,
INNOVATION
AND
CREATIVITY

PRACTICING ENTREPRENEURIAL
SKILLS IN THE WORKPLACE

National Institute for Technical Education and Skills Development
Curriculum and Training Aids Development Division (NITESD-CTADD)
[email protected]
6322 8888 5651

SESSION 1:

Activity 2: Entrepreneurship, Innovation and Creativity

Objectives: By the end of the activity, participants will be able to:
a. Explain entrepreneurship, entrepreneur, innovation and creativity
b. Accomplish a self-assessment on becoming an entrepreneur
Recommended Time: 2 hours

WHAT IS ENTREPRENEURSHIP?

NARROW:
Doing a venture business

Image by Annalise Batista from Pixabay

BROAD:
➢ Productive activity when things look bleak
➢ Making something from nothing

In addition, ENTREPRENEURSHIP is:

➢ An attitude and lifestyle
➢ Creation of something from nothing under

a given condition
➢ Always proactive, pragmatic, looking for

an opportunity, not accepting
impossibility

INNOVATION AND CREATIVITY
Innovation and creativity are major factors in entrepreneurship. Through these, solutions
to the needs and problems of consumers are made in a form of a product or service. It is
very important to be innovative and creative in order to differentiate from the existing
product or service offerings of competitors and to consistently keep up with the volatile
needs wants of the customers.

ENTREPRENEUR - the UNDERTAKER

The word ENTREPRENEUR came from a French word, entreprende which means
UNDERTAKER who: commit oneself to begin an enterprise or responsibility and promise
to do a particular thing.

Recognize opportunities
where others see chaos or
confusion

Challenge the unknown
and continuously create
the future

Are aggressive catalysts
for change within the
marketplace

CHARACTERISTICS OF AN ENTREPRENEUR

Is creative/
innovative

Takes action Is fearless
Recovers
Is quickly
resourceful Loves
Never takes a
challenges
“NO” for an
answer

Welcomes
change

Entrepreneurs are NOT just small business owners

Let’s Exercise!

Watch the video of Gatchi Gatchalian and learn his business ventures. Take note of his
considerations in selecting the type of business and the characteristics and skills that he
possesses which equipped him in creating his business.

Visit the link https://tinyurl.com/sagingrepablik. After watching, list down the following:
➢ Gatchi’s experiences:
➢ Gatchi’s skills/expertise:
➢ Gatchi’s characteristics:
➢ His considerations on choosing the business that he created:

KINDS OF ENTREPRENEURSHIP

Small scale business
➢ grocery stores, hairdressers, consultants, travel agents, internet cafe, carpenters,

plumbers, electricians, etc
➢ runs his/her own business
➢ hires local employees or family
➢ most are barely profitable; success is to feed the family and make a profit
➢ funds their businesses via friends/family or small business loans
Large scale entrepreneurship
➢ what Silicon Valley entrepreneurs and their venture investors do
➢ starts a company knowing from day one that their vision could change the world
➢ hires the best and the brightest
➢ attracts investments from venture capitalists

Social entrepreneurship
➢ innovators who focus on creating products and services that solve social needs

and problems
➢ goal is to make the world a better place, not to take market share or to create

to wealth for the founders
➢ may be nonprofit, for-profit, or hybrid

Read and analyze the following cases and enumerate the actions that can be taken in the
perspective of a small business owner and entrepreneur

CASE 1: A major thoroughfare in Manila has lots of holes and rocks. Most vehicles passing
through it ended up having flat tires. What can be done?

A small business owner can:
1.
2.
3.

An entrepreneur can:
1.
2.
3.

CASE 2: A barangay in San Narciso has been experiencing intermittent brownouts for 12
years. Since the barangay is far-flung and near the sea side, electric services do not reach
the area. What can be done?

A small business owner can:
1.
2.
3.

An entrepreneur can:
1.
2.
3.

CASE 3: A city in Province X is known as Plasticity since the whole area is filled with
plastics, bottles, containers, sachets etc. The residents and the heads of the municipality

does not know how to address the problem. What can be done?
A small business owner can:
1.
2.
3.
An entrepreneur can:
1.
2.
3.

WHY ENTREPRENEURSHIP?

Studies show that only a small number of citizens engage in entrepreneurship. Most
people fear the risks involved in businesses and do not understand the technicalities and
benefits that they may reap. As a result, they rather be employed than become business
owners.
For 2016-2030, the United Nations put premium to entrepreneurship and innovation. In
the Sustainable Development Goals (SDG), these were highlighted in SDGs 8 and 9.

SUSTAINABLE DEVELOPMENT GOALS 2016-2030

SDG 8
Promote sustained, inclusive and sustainable
economic growth, full and productive employment
and decent work for all.
TARGET:
Promote development-oriented policies that
support productive activities, decent job creation,
entrepreneurship, creativity and innovation, and
encourage the formalization and growth of micro-,
small- and medium-sized enterprises, including
through access to financial services

SDG 9

Build resilient infrastructure, promote sustainable
industrialization and foster innovation

TARGET:
Promote inclusive and sustainable industrialization
and, by 2030, significantly raise industry’s share of
employment and gross domestic product, in line with
national circumstances, and double its share in least
developed countries
Increase the access of small-scale industrial and other
enterprises, in particular in developing countries, to
financial services, including affordable credit, and
their integration into value chains and markets
Support domestic technology development, research
and innovation in developing countries, including by
ensuring a conducive policy environment for, inter
alia, industrial diversification and value addition to
commodities

ENTREPRENEURSHIP’S CONTRIBUTION

Contributory to economic development, entrepreneurship caused the:
➢ Creation of jobs
➢ Facilatation of new technologies
➢ Spur of innovation
➢ Progress of developed countries

CREATION / INNOVATION / INVENTION / TECHNOLOGY
Television

Document Processor

Telephone
Food

ENTREPRENEURSHIP IN DEVELOPED COUNTRIES

ENTREPRENEURSHIP IN THE PHILIPPINES
(This portion is a

Think about it!

Try to research on the aforementioned businesses and enterprises. Examine their
origins, values, product/service offering and reasons behind their logo/branding.

Let’s Apply!

Do you have what it takes to be an Entrepreneur? Assess yourself and fill out the
succeeding form to determine if creating a business is for you.

SELF-ASSESSMENT GUIDE FOR WOULD-BE ENTREPRENEURS
A. Please put a check (✓) in the corresponding column for your answer

DO / ARE YOU? YES NO

1. Take action?
2. Creative/Innovative?
3. Fearless?
4. Resourceful?
5. Recover quickly?
6. Love challenges?
7. Welcome change?
8. Never take a “NO” for an answer

B. Enumerate your:
➢ Skills/Expertise:
➢ Passion:
➢ Experience:
➢ Resources (assets etc.):
➢ Network (suppliers, distributors etc.):

C. Business that you hope to start/to be involved with:
➢ Small-scale business:
➢ Large-scale business:
➢ Considerations on choosing the business:

Sharing is caring

After accomplishing the SELF-ASSESSMENT GUIDE FOR WOULD-BE
ENTREPRENEURS, share it with others, co-trainees, family and friends and seek their
inputs. You are encouraged to also provide comments to others who shared their
completed forms with you.

SESSION 1:

Activity 2: Basics of Marketing

Objectives: By the end of the activity, participants will be able to:
a. Discuss the considerations in creating a business;
b. Explain marketing and its integral part in business;
c. Distinguish the 4Ps of marketing; and
d. Create business and marketing plans.
Recommended Time: 4 hours

NEED vs WANT

Need and want are two different things; need is a shortness of something while want is a
luxury or a need with a consideration of preference. The following table shows examples
of need and the corresponding want:

NEEDS WANTS
Ballpen Parker, fountain pen
Mobile Phone iPhone, Samsung S20
Knapsack Samsonite, Anello
Rubber shoes Nike, Adidas
Bottled water Wilkins, Evian
Ready to drink Coffee Starbucks, Specialty Coffee

These needs and wants are the major considerations in creating a business. After
selecting your customers, their needs and wants must be identified in order to create
satisfactory products or services.

SELECTION OF TARGET CUSTOMERS / MARKET

Market refers to the group of consumers or organizations that is interested in the product,
has the resources to purchase the product, and is permitted by law and other regulations
to acquire the product.

In business creation, the selection of target customers or market is critical. This is
in the sense that you cannot satisfy all the needs and wants of the population.

Here are the steps to select the target customers / market. Keep in mind that these
entails research, data gathering and assumptions:

1. List down the potential customers you have in mind;
2. Consider their demographics, geographic variables, psychographics and buying
capacity;

➢ Demographics – age, income, gender, occupation etc.
➢ Geographic variables – location, rural vs urban
➢ Psychographic variables – lifestyle, purchasing behavior, values and beliefs
➢ Behavioral variables – related to the customer’s behavior with respect to the

product
3. Examine and list down their probable needs/wants;
4. Estimate if the size of and growth in the chosen market can give profit;
5. Assess the potential customers based on the size and estimated growth;
6. Summarize the lists and decide on which customer needs/wants you can provide
solution to based on your capacity (skills, expertise, resources etc.); and
7. Check the competitors who offer the same product or service.

Check the following example:

Business startup A thinks and enumerates his potential customers as shown in the
table:

A. PROFILE OF POTENTIAL CUSTOMERS / MARKET

PROFILE OF POTENTIAL POTENTIAL POTENTIAL
POTENTIAL CUSTOMER CUSTOMER CUSTOMER
CUSTOMERS 1 2 3
ACCORDING
TO ➢ 15 y.o. ➢ 25 y.o. ➢ 50 y.o.
DEMO ➢ Student ➢ Single ➢ Single
GRAPHICS ➢ Female ➢ Part-
parent
GEOGRAPHICS Manila, ➢ Employed time
Philippines ➢ Male employee
PSYCHOGRAPH ➢ Loves ➢ Female
ICS Cebu, Philippines Davao,
Kpop Philippines
➢ Enjoys ➢ Practical ➢ Loves
➢ saves Kdrama
➢ Impulsi
money

Anime ➢ prioritizes ve buyer
the needs of ➢ Loves
➢ Prefers his child
environment online
➢ prepares shopping
-friendly for the future
Has scanty
products Has decent income
income
BUYING Relies on ➢ Mobile
CAPACITY ➢ Diaper phone
allowance from and milk for
NEEDS child, ➢ Interne
WANTS parents t access
➢ Insurance
/ ➢ Kpop ➢ Education ➢ Cosme
tics
Merch al plan
➢ energy ➢ Traditio
➢ Mobile nal food
Phone drink
➢ vitamins ➢ Perfum
➢ Apps, e
➢ Sanitary and
pads supplements ➢ Clothes
➢
➢ Clothes
➢ Cosmeti
cs

B. ESTIMATE IN SIZE AND FORECAST ON GROWTH

POTENTIAL CUSTOMER IS THE SIZE OF THE WILL CUSTOMER BASE
POTENTIAL CUSTOMERS INCREASE IN THE FUTURE
1 BIG ENOUGH TO MAKE
2 (Y/N)?
3 PROFIT (Y/N)?
YES YES
NO NO
YES NO

From these groups of customers, Potential Customer 1 has a big chance of generating
profit for the business due to its size and estimated growth; thus, business startup A
targets and chooses this market.

C. NEEDS / SOLUTIONS / COMPETITORS

NEEDS (WANTS) SOLUTIONS COMPETITORS
Kpop Merch
Mobile Phone (PRODUCT / SERVICE) OF

Apps BUSINESS STARTUP A
Sanitary pads
None; not aware of Kpop Online shops
Clothes
Cosmetics Merch

Retailing of mobile phone Online shops

Service/Repair; knows a Service Centers

relative who can repair a

mobile phone

None; do not know how to Apps in Google Play and

create apps App Store

Reusable sanitary pads; Big brands (Modess,

knows how to sew and Whisper etc.)

suppliers for the raw For reusable pads: most are

materials for reusable substandard products; no

sanitary pads known local manufacturer

Upcycled clothes; knows Big brands (Bench,

how to sew and suppliers Penshoppe)

for the raw materials Taytay Palengke

None; not knowledgeable Korean and local brands

in cosmetics

Business startup A chooses to create reusable sanitary pads because of its capability to
create them and it can compete with the existing substandard products.

Let’s Apply!

Practice the selection of target customers/market by following the steps, analyzing,
accomplishment of forms, assessing yourself and thinking of the products or services that
you can offer to the chosen market. Discuss this with others.

MARKETING

As coined by Regis McKenna, Marketing is Everything! It is not just a function but an all-
pervasive way of doing business. Marketing is not just selling but it involves all the
operations of a business and set of activities in making its products or services that offer
value accessible to its target customers.
4Ps of MARKETING
Marketing has 4Ps namely: Product, Price, Place and Promotion.

PRODUCT
Product is anything tangible that can be offered in a market for attention, acquisition, use,
or consumption that might satisfy a need or want. Service is a product that consists of
activities, benefits, or satisfactions and that is essentially intangible and does not result in
the ownership of anything.

EXAMPLES: SERVICE
Salon (Haircutting, Perm)
PRODUCT Courier / Delivery
Ballpen Massage Spa
Mobile Phone Carwash
Knapsack Phone repair
Rubber shoes Tutorial services
Bottled water
Ready to drink Coffee

A product involves its attributes, branding, packaging, labelling and product
support services that differentiates from the other products.

Let’s examine the product, vitamins and supplements.

Packaging: clear
bottle

Labelling: indicates
the product

Attributes: orange
and yellow tablets;
effects of the
supplements to the
body

Image by Clker-Free-Vector-Images from Pixabay

Note: the packaging and branding distinguish the product from other brand’s.

PRICE

Price is the amount of money charged for a product or service. It is the sum of all the
values that consumers give up in order to gain the benefits of having or using a product or
service. It is the only element in the marketing mix that produces revenue; all other
elements represent costs.

There are three (3) ways to compute for the price of a
product or service. Cost + Mark-up pricing method,
competitive pricing and the price that the
customers is willing to pay

COST + MARK-UP PRICING METHOD

Selling price = total cost + (total cost x profit margin)

where:

Total cost = Direct cost + indirect cost (Overhead)
Profit margin = rate of profitability of a product or service (Mark-up)

Direct costs refer to all costs that are directly related to the products and services
a business makes or sells
Example: Material costs and labor costs

Indirect costs are all other costs for running a business
Example: Rent, electricity, delivery

Let’s take this example:

Entre Inc. manufactures washable face masks made of silk. It can produce 100 face
masks a day with the help of 4 workers. The following table shows the detailed
costs entailed in the production of 100 face masks:

DIRECT COSTS AMOUNT INDIRECT AMOUNT
COSTS
Materials Cost 2000 Rent 5000; 250
200 per day
Silk 50 yards 500 Electricity 1200; 60
1000 per day
Garter 10 yards 500
Thread 50 rolls 4200 310
Labor Costs
4 Sewers 1,000
per day
Packaging Cost
Total

Total cost = direct costs + indirect costs = 4200 + 310 = 4510 for 100 face masks;
45.10 for each face mask

Selling price = total cost + (total cost x profit margin) = 45.10 + (45.10 X 35%)
= 45.10 + 15.78
= 60.88 ≈ 60

COMPETITIVE PRICING METHOD
Looking at your competitors’ prices and making sure that your prices are
competitive with others.
Check out these prices and think of your price for your product. Consider your
profit, the features of your product and the value it can give to the customers.

Image courtesy of Lazada Philippines
Basing on the cost + mark-up and competitive pricing methods, it is safe to price
the facemask between 60 to 80.

PRICE THAT CUSTOMERS ARE WILLING TO PAY
Assess the price that the customers are willing to pay. Adjustments can be made
based on the prevailing prices of the similar products in the market.
PROMOTION
Promotion includes advertising, sales promotions, personal selling, and public
relations/publicity.

The promotion ads to the saleability of the product or service as these catch the attention
of the consumers. These includes buy one take 1, discounts, free shipping among others.
It is also important to use attractive visuals for the ads.

Image courtesy of mightysmallbiz.com

PLACE
Place refers to distribution channels and supply chain management – getting the right
product to the right customers at the right time. It can be through physical stores or online
shops, Facebook pages and ecommerce sites.

Let’s Exercise!

Answer the following:
A. In your own words, why is marketing important?
B. Identify the specific 4Ps for each image:
1. 2.

3. 4.

5.

LEAN CANVAS

A business plan is written document that details the proposed venture. It:
➢ Describes the current status, expected needs and projected results of the new

business;
➢ Covers the projects, marketing, research and development, manufacturing,

management, critical risks, financing and milestones or a timetable; and
➢ Demonstrates a clear picture of what that venture is, where it is projected to go,

and how the entrepreneur proposes it will get there – a roadmap for a successful
Usually, a business plan consists of several pages inclusive of the executive summary,
marketing plan, financial plan among others. However, it takes a lot of time and effort
just to complete this document. Thus, the lean canvas was created and introduced.
A Lean Canvas is a 1-page business plan template that helps you deconstruct your idea
into its key assumptions using 9 basic building blocks.

Unlike a business plan that takes too long to write, and more important, no one reads, a
Lean Canvas is designed to help you create a quick snapshot of your idea, share it someone
for feedback, and refine it iteratively.

PARTS OF A LEAN CANVAS

1. Customer Segments – Target customers
2. Problem – Top 3 Problems
3. Solution – Top 3 Features
4. Unique Value Proposition – Single, clear compelling message that states why you

are different and worth paying attention
5. Unfair Advantage – Cannot be easily copied or bought
6. Channels – Path to customers
7. Key Metrics – Key activities you measure
8. Cost Structure – Costs of business, fixed and variable costs
9. Revenue Streams – Sources of revenue
To better understand the lean canvas, please watch the video found in this link:
https://tinyurl.com/joeleancanvas

LEAN CANVAS TEMPLATE

Let’s Exercise!

Let us fill-out the lean canvas with the Married Female aged 35-40, no child as target customers and following the
sequence of the parts.

2. Problem 3. Solution (your 4. Unique 5. Unfair 1. Customer
(Needs/Wants) product or service) Value Advantage Segments
➢ Essential oils Proposition
➢ Clothes ➢ Massage oils ➢ Customer Creation of Married
➢ Cosmetics ➢ Healing oil own oils which Female
➢ Perfume for ➢ Spa service Service are natural 35-40
Husband ➢ After- and No child
7. Key Metrics environment-
➢ Appliances ➢ Number of sales friendly
for cooking service 6. Channels
products sold ➢ Expert
➢ Spa / ➢ Number of masseuse ➢ Home service
➢ Physical Spa
massage customers ➢ Facebook page
served ➢ Gawin.ph
products ➢ Number of
products
manufactured

8.Cost Structure 9.Revenue streams
Raw materials Products sold
Rent Services offered
Salaries
Utilities

MARKETING PLAN

The Marketing Plan is a document outlining the marketing strategy and tactics to reach the
target market. The specifics of 4Ps are found in this plan.
Let us take the example of the previously stated washable face masks
Entre Inc. Marketing Plan
Product: Washable face masks
Price: 65 php
Promotion: Buy 1 take 1 for for the first week of the opening of the business; free
shipping to purchases at least 1,000 php; use of ads showing the washable face masks,
its features and benefits which are not offered by competitors
Place: Shopee store and Facebook page

Let’s Apply!

Form a group of 5, discuss and create a lean canvas and marketing plan. Share it
with others.

SESSION 1:

Activity 3: Fundamentals of Online Business

Objectives: By the end of the activity, participants will be able to:
a. Discuss the fundamentals of online business;
b. Create a facebook page and shopee store;
c. Distinguish payment options;
d. Identify courier services; and
e. Explain the do’s and dont’s in online business.
Recommended Time: 2 hours

ONLINE BUSINESS

When starting a business, usually the resources are scarce and maximized. In the advent
of technology advances, most micro enterprises place their business online.
ADVANTAGES OF ONLINE BUSINESS
1. Easy to set-up
2. Resources are few
3. Wider reach of customers
4. No need for a physical store
DISADVANTAGES OF ONLINE BUSINESS
1. Unstable internet connection
2. Scammers
3. Need to be online round-the-clock
The following are needed in setting up an online business:
1. Mobile phone, laptop or any gadget that can access the internet
2. Internet connection
3. Facebook page, Shopee account or other ecommerce sites
4. Bank accounts or other financial technologies
5. Courier service apps
6. Contact details (mobile number, email address)
7. Engaging pictures of the products that you sell or service that you offer

FACEBOOK PAGE AND SHOPEE STORE
Most marketplace or pages are available through the website and apps which can be
downloaded to Google Play or App Store.
Facebook Page

Screenshot of JKC Happy Zone in Facebook

Shopee page

Screenshot of Pawsitivity Ph in Shopee Philippines
Visit the following links to create the stores/pages:
A. Facebook page - https://tinyurl.com/fbshoptutorial
B. Shopee store - https://tinyurl.com/faqshopee
PAYMENT OPTIONS
This is very important in online selling. Customers would look for Cash on Delivery, but
some prefer fund transfer options. It is best to offer both to make the consumers feel that
you are a legitimate or legit seller.
Shopee offers various payment options such as COD, debit/credit card options and Shopee
pay or credits. If you have a Facebook page it is better to set-up several payment facilities.
that you are a legitimate seller.
CASH ON DELIVERY
Your customers might prefer COD through the courier services such as Grab, Lalamove

and Angkas. This has an additional charge that the customers bear.
BANK DEPOSITS / FINANCIAL TECHNOLOGY / FUND TRANSFER
You must have a bank account and enrolled in online or phone banking and financial
teachnology apps for easy monitoring of transactions. Just simply provide your bank
account or fintech app details to the buyer and wait for the fund transfer. It is very
important that you confirm the receipt of funds to your customer. This will give them a
peace of mind that the you are not a scammer.
BPI Express Online website

Image from imoney.ph

Paymaya App

Image from jedumedia.com
MONEY TRANSFER FACILITIES
These are legit money transfer options offered by big companies such as Western Union,
M.L Lhuiller and LBC among others. This is real-time, secure and ensures the identify of
the sender and recipient. However, you need to personally appear to the branches/centers
to do a transaction.

COURIER SERVICES

The transport of your products is another critical part of an online business. You must
download apps for courier services and set-up an account. Always provide updates to the
buyer on the status of the shipping of items that they purchased.

THINGS TO REMEMBER IN ONLINE BUSINESS
Take note of the following to succeed in online business:
1. Always prioritize your customers
2. Use engaging images and interesting posts on online business platforms
3. Join marketplace or groups in the online platforms to promote your page / store
4. Update your customers on the status of payment receipt and shipping of items
5. Keep your lines open to existing and potential customers (mobile number, messenger,
email and other forms of communication)
6. Be honest, amiable and courteous; exercise business ethics at all times
7. Respect other sellers
8. Keep your prices reasonable
9. Ensure the selling of quality products
10. Ensure to provide value to customers
11. Offer customer services even after the sale

Let’s Apply!

Practice setting up the following through apps:
1. Facebook page
2. Shopee store
3. Bank account online banking or fintech apps
4. Courier service app
Once these accounts are created, share your experience with others. Remember that a
working mobile number and email address are needed to set-up accounts.