12

APPLIED SUBJECT
ENTREPRENEURSHIP
 This module is designed and written with you in mind. It is based on the Most Essential Learning
Competencies (MELCs). It is here to help you master this applied subject on Entrepreneurship.

It contains information and guidelines on how to implement and register a business. It also gives
tips on how you can sell and provide your own products and services from proposed business.

All activities that require online submissions should be coordinated with your teacher. Save the
date for your online class and update your teacher's announcement in the google classroom or FB
messenger.

This should be accomplished in two (2) week. All activities that require online submission should
be coordinated with your teacher. Save the date for your online class and be updated with teacher’s
announcements in the google classroom or FB messenger

Content Standard: The learner demonstrates understanding of concepts, underlying principles, and
processes of starting and operating a simple business.

Performance Standard: The learner independently or with his/her classmates starts and operates a
business according to the business plan and presents a terminal report of its operation.

Objectives

1. Identify the steps in implementing a business;

2. Discuss and where to the procedures in registering a small business;
3. Execute the procedures as required in implementing your business; and
4. Appreciate the importance of considering the given procedures and guidelines in starting your
business.

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Quarter 2-Week 4 to 5
IDENTIFICATION: Identify the agency that is responsible in the following legal functions. Write your
answer in your notebook.

_____________ 1. Enforces tax laws, assesses, and collects all national revenue taxes, fees, and charges.
A. BIR B. COA C. MERALCO D. PAG-IBIG
_____________ 2. Businesses with at least five employees have to register the business with this
government agency.
A. BIR B.DOLE C. PAGIBIG D. SSS
_____________ 3. Mandate for the promotion and development of cooperatives in the country.
A. CDA B. HDMF C.LGU D. PHILHEALTH
_____________ 4. Administers the Pag-IBIG Fund.
A. DTI B. HDMF C. LGU D. SEC
_____________ 5.Promotes and regulates business activities by registering and licensing businesses for
single proprietorship.
A. DTI B. LGU C. PHILHEALTH D. SEC
_____________ 6. Processes applications and issues certificates of registration for partnership and
corporations.
A. CDA B. DTI C. SEC D. SSS
_____________ 7.Prohibited the online selling of unregistered and non-notified medical devices.
A. BIR B. CDA C. FDA D. SEC
_____________ 8. Mandated to extend social security protection to business owners and their
beneficiaries.
A. GSIS B. LGU C. PHILHEALTH D. SSS
_____________ 9. Issued Mayor's permit and sanitation permit.
A. NGO B. DTI C. LGU D. SSS
_____________ 10. Provided power supply in Metro Manila.
A. NAPOLCOM B. MERALCO C. NAWASA D. MAYNILAD

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Quarter 2-Week 4 to 5
Activity 2.1: Listed below are some of the top online shopping and Ecommerce sites in the Philippines
according to Pineda (2020). Classify them according to its category written inside the box. Write your
answer in the space provided.

Groceries Travel services

Financial services Apparel, Fashion and Beauty

Shopping portals Food delivery

Deals Medicine

Electronic and Physical Media Pets

1. Mercury Drug Gamot Padala 9. Cebu Pacific

2. Paymaya 10. Shopee
3. Food Panda 11. CDR-King
4. Human Nature 12. Metro Deal
5. Zalora 13. Lazada
6. Ticketnet. 14. Coin.PH
7. Globe Online Shop 15. Pushkart
8. OLX
For more information, you may visit this website for a start, but not limited to it.
Search more: https://grit.ph/online-shopping/

Why is it important to register your business? Can you not operate without a legal personality?
Maybe you have already heard the term “underground economy”. De Guzman (2016) defined this as the
part of a country’s economic activity that is unrecorded and untaxed by its government (Oxford
Dictionaries). So, a business that is not registered is considered an “underground economy”.

Naturally, you do not want something like this to happen to you so it is much better to do business
legally.

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Quarter 2-Week 4 to 5
 Lesson
Operating the Business
1 Written by Maylyn C. Bejerano

Register Your Business Name

Business name registration is required in the

Philippines. Under the Business Name Act (Republic Act
3883), it is unlawful for someone to use any name for a
company other than the true name of the owner without
first registering a business name with the DTI (Zoleta, 2020)
The table below shows the government agencies
where business owners should register their business:

Government Agency/Contact Details Functions

1.Bureau of Internal Revenue (BIR) Enforces tax, laws, assesses, and collects all national
www.bir.gov.ph revenue taxes, fees and charges. All businesses are
required to register with the agency.

2.Cooperative Development Authority (CDA) Mandated to promote and develop cooperatives in the
www.cda.gov.ph country. It issues a proposed cooperative certificate of
registration which is needed before it can start to
operate.

3. Department of Labor and Employment Promotes gainful employment opportunities, protects

(DOLE) workers and promotes their welfare, develops human
www.dole.gov.ph resources, and maintains industrial peace. Businesses
with at least five employees have to register the
business with DOLE.

4. Department of Trade and Industry (DTI) Promotes and regulates business activities by
-Bureau of Trade Regulation and Consumer registering and licensing businesses.
Protection (BTRCP) Processes business applications for single
www.dti.gov.ph/dti proprietorship; issues Certificate of Registration of
Business Name. Accepts registration application online
through its Business Name Registration Systems
(BNRS)

5. Human Development Mutual Fund (HDMF) Administers the Pag-IBIG Fund. All SSS members with a
www.pag-ibig-fund.com.ph monthly earning of at least Php4, 000.00 are required
by the government to become members of the Fund as
per Republic Act (R.A.) 7742.

6. Local Government Unit LGU) The city or municipality where the business will be

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 located issues a Mayor’s permit or a license to operate.
A barangay clearance obtained from the barangay
where the business will be conducted should be
submitted before securing a Mayor’s permit.
Included in each Mayor's Business License is a Health
and Sanitary License that can be purchased after an
Electrical Inspection is completed. This is to ensure that
aside from the safety of the people that will be entering
your establishment, the Health and Sanitary Office will
inspect business establishments about the cleanliness
of the surroundings and its office spaces.

7. Securities and Exchange Commission (SEC) Processes applications and issues a certificate or
www.sec.go.ph registration for partnerships and corporations.
It offers the following online services: reserves and
verify company name; register a corporation or a
partnership; and search for reserved and registered
companies.

8. Social Security System (SSS) Mandated to extend social security protection to

www.sss.gov.ph business owners and their beneficiaries. The law
requires compulsory coverage under the SSS or private
employers, their employees, and the self-employed.
A business owner should secure a number for the
business and for himself/herself either as an employee
or self-employed. He/she should also require
employers to register because an SSS number is
required for employment.

Other Basic Requirements

There are other important basic requirements that comply with before you can start operating
your business such as power, water, and telephone connection. These are essentials in order to run the
business smoothly.
1. Power supply. If your business is located in areas serviced by the Manila Electric Company
(MERALCO), then you can apply for MERALCO’s services. The name "Meralco" is the acronym of
Manila Electric Railroad And Light Company. If the area is not serviced by MERALCO, you can avail
of the services of a local electric utility company in the area.
2. Water supply. Maynilad Waterworks and Manila Water are the two business concessions
servicing the Metro Manila area.
3. Telephone connection. There are three telephone companies to which you can apply for
telephone services: Philippine Long Distance Telephone Company (PLDT), Bayantel, Digitel,
Globelines, and Smart.

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Quarter 2-Week 4 to 5
4. Internet connection. There are different types of internet connection in the Philippines. This
includes Digital Subscriber Line or also known as DSL, Fiber Optic and Wireless Broadband. The
well-known internet providers in the Philippines are PLDT, Globe Telecom, Converge, Skycable
and the 3rd Telco which is soon to open this year is “Dito”.

A. Where to Register a Sole Proprietor Business?

Here are the government agencies in which you are required to register your sole owner business..

1. Department of Trade and Industry

2. Local Government Units where your business is located:
○ Barangay
○ Mayor’s Office
3. Bureau of Internal Revenue
4. If you have employees, you need to register to the following:
○ Social Security System
○ Philippine Health Insurance Corporation
○ Home Development Mutual Fund

The basic requirements and procedures for registering a sole owner business are set out below.

I. Register a business name at Department of Trade and Industry

1. Think of three (3) business names for examples:

1. XYZ Trading
2. XYZ Retail and Trading
3. XYZ Trading Enterprises
2. Search in the DTI’s website if there’s an existing name similar to yours
3. If your business name is available, fill out the Business Name (BN) Application Form.
4. Send your completed BN application form to the DTI Office / Branch

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 5. Wait for your DTI Certificate of Registration
Once you have acquired a DTI Registration Certificate, you may now proceed to register
with the Local Government Units (LGUs), such as Barangay and the Mayor's Office.

II. Registration with Barangay

1. Go to the barangay where your company is located to secure and fill out the application
form.

2. Please submit your completed application form along with the following:
○ Certificate of Business Registration from DTI
○ Two (2) valid IDs
○ Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title
(if owned)

3. Claim your Barangay Certificate of Business Registration

III. Register your business in the Mayor’s Office

1. Go to the municipal office where your business is located to secure and fill-up
application form

2. Submit your completed application form together with the following:

○ Certificate of Business Registration from DTI
○ Barangay Clearance Certificate
○ Two (2) valid IDs
○ Proof of Address such as Contract of Lease (if rented) or Certificate of
Land Title (if owned)

3. Claim you Mayor’s Business Permit and Licenses

If you have already received all the certificates and permits from DTI and LGUs, you may now
register with the Office of Internal Revenue ( BIR)

IV. Register your business in the Bureau of Internal Revenue (BIR)

1. Go to the Regional District Office (RDO) where your business is located

2. Fill-up of the BIR Form 1901 – Registration Requirement (for sole owner)
3. Submit the completed registration form along with the following:
○ Certificate of Registration form DTI
○ Barangay Clearance
○ Mayor’s Business Permit
○ Proof of Address such as Contract of Lease (if rented) or Certificate of
Land Title (if owned)

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Quarter 2-Week 4 to 5
 ○ Valid IDs, if applicable.
4. Pay the Registration Form (BIR Form 0605)
5. Register your book of accounts and receipts/invoices.
6. Request your Certificate of Registration (BIR Form 2303)
After completing all the steps above, you can now focus on operating and growing your
business.

For additional information you may visit this website and search more:
https://www.moneymax.ph/government-services/articles/dti-business-registration

Activity 1.2 LEARN FROM THE EXPERT: Conduct an interview to any business owner in your nearby
areas via available messenger- video conferencing apps. Here below is an INTERVIEW SHEET FORMAT to
be accomplished during the interview. Please attach a photo taken during actual video conferencing as
your proof. Do this in your notebook.

INTERVIEW SHEET

Name of interviewer:

Name of interviewee:

Date:

Time:

Business Name:

Business Type:

Business Location:

When did the business start

the operation?

How much was the initial

capital or startup costs?

How long does the business

exist? No. of months or years

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Quarter 2-Week 4 to 5
 Who operates the business?
How many people are
involved in the business?

What were the processes

done in registering the
business?

What tips can you share with

me to become successful in
starting my own business?

PHOTO

Answer the following questions. Write your answer in the space provided after each question.

1. What difficulty did you encounter in conducting the interview?

2. What best tip or insight did you get from your interviewee? Do you find this helpful?

3. How will you apply those tips in starting your own business?

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Quarter 2-Week 4 to 5
 Lesson Selling Products/ Services
2 Written by Maylyn C. Bejerano

Lesson 2: Selling Products/Services

Selling is an art of matching the benefits of the product with the needs or wishes of the customer.
In addition, from Cambridge Dictionary, selling is being defined as the activity of making products and
services available so that people buy them:
Moreover, another definition of Ward (2019) states that selling is a transaction between the seller
and the prospective buyer or buyers (the target market) where money (or something considered to have
monetary value) is exchanged for goods or services.

Types of Selling Approaches

Here are some of the most common approaches enumerated by Ward, (2019).
1. Aggressive sales, also known as high-pressure sales. The style is hard to drive; it's the salesman
who won't take the "no" for response.

2. Transactional Selling
This approach focuses on making quick sales; there is no attempt to make fast sales or long-term
customer relationship.
3. Consultative Selling also known as Relationship Selling
The goal of the salesperson is to get acquainted with the needs of the customer and wants him
to do or maybe she can do the best job of giving the customer what they want.
4. Collaborative Selling
This sales approach depends on the partnership and how collaboration between the buyer and
the seller happens.
5. Social Selling
Another sales approach that is widely used in this time of new technology is the so-called Social
Selling, also known as Online Sales.

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Quarter 2-Week 4 to 5
 As Peraut (2018) defined “Selling products and services online can help your business become
more profitable and more successful. Online selling is a form of electronic commerce that allows sellers
to sell goods or services directly to a purchaser over the Internet using a web browser.

Where to Sell Your Products in Online Selling

E-Commerce gives you an open space to be creative in running your business successfully. There
are several beneficial channels to choose from, and choosing the right platform is a crucial step towards
targeting your target audience.
Two most popular platforms to sell online are:
1. E-Commerce Marketplace
E-Commerce markets are the easiest way to start selling online. With these online markets, you can create
a seller account and start selling your products immediately. You will need to register at these E-
Commerce sites with some basic details, such as VAT registration number, proof of identity, address and
bank details.

This is a Lazada marketplace interface. You may also visit the link:
https://pages.lazada.com.ph/wow/i/ph/PHCampaign/ssu?spm=a2o4l.home.header.d2.239e6db41Qkru
w&hybrid=1

2. Set up a Web Store

Another easy and efficient way to launch your store online is by setting up an E-Commerce store
development platform. You just need to register with those platforms. Choose one of their packages
(whichever is best suited to your brand, product and budget), upload your product catalog and start
selling. Magento, PrestaShop and Shopify are some of the most user-friendly examples of such platforms
in the Philippines.
3. Sell on Both Channels
The best choice for any online seller is to sell both on the marketplaces and on the webshops so
that they can produce sustainable revenue. While selling on the market gives you the opportunity to make
quick sales, having your web store can help you promote your own brand gradually as you grow. Being on
marketplaces helps people to know about your brand, leading more direct traffic to your webstore.

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Quarter 2-Week 4 to 5
Use of Facebook App in Selling
A. Facebook Marketplace
One of the most available social media
platforms that can also be used in selling is
Facebook. In using this app, try to follow the
steps below:

1. Open your Facebook account

2. Look for a marketplace logo. The
marketplace will open.
3. Select Sell, and choose from the
options that will pop-up.
4. You will be required to fill in the
information of your product.
B. Facebook Page

To create a Page:

1. Go to facebook.com/pages/create
2. Click to choose a Page type.
3. Fill out the required information.
4. Click Continue and follow the on-screen
instructions.
To artistically create your business page, you
may visit and watch YouTube video from this
source:
https://www.youtube.com/watch?v=TYEW6aoorPI
Essential guide to selling your products or services.
1. Decide which sales methods to use
● Direct sales methods include face-to-face, direct mail, telesales and ecommerce.
● If you want to sell your product or service overseas, you might wish to consider using a sales
agent.
2. Planning your approach
a. Prepare your pitch
3. Getting access
a. If you are telephoning a customer, follow a few basic rules
● Ring at the right time. People are naturally more responsive to calls in the morning.
● Get the crucial first 30 seconds of your pitch right. If you fail to prepare your opening carefully,
you have little chance of interesting the customer in what you have to offer.
● Always get your customer’s name and give your own, too.
4. Asking questions
a. Make the customer want to answer further questions
● Start with questions to which you know the answer will be yes. For example, "Do you want to
bloom?"

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Quarter 2-Week 4 to 5
 ● Encourage the customer to ask you questions.
5. Selling the benefits
a. Emphasize the benefits your product or service offers - not the features
b. Produce evidence to back up your claims
6. Handling objections
Do not be put off by objections-they could be an indication that the customer is interested in
them. Make sure that you treat them in a straightforward and constructive way.
6. Closing the deal
a. Create a sense of urgency
● Try to convince the customer that your product is needed now. Link a fast sale to fulfill the
customer's own needs and deadlines. For example, "If you book the holiday now, we can get
you the best rooms in the hotel."
● Do not falsely state that a product will only be available for a limited time in order to get
consumers to buy there and then - this is illegal.
b. If the customer makes buying signals - stop selling
● Typical buying signals might be: “When would you be able to deliver?”; “What other colours do
you have?”; "That would be very useful;" "This is exactly what we need"
● If you do not stop selling, you might go on to talk yourself out of a sale.
7. Take responsibility for closing the sale
● The simplest way may be just to ask, "Can I take your order now?"
● Take your cue from the customer. For example, if he or she asks about the price of the product,
say, "Is that the product you would like to buy?"
● Propose alternatives. This makes it more difficult for the customer to say no. Ask, "Would you
prefer it in green or blue?"
● When only one objection remains, make closing the sale conditional upon removing this
obstacle. For example, "If I can guarantee to bring the delivery date forward to meet your
schedule, will you place the order now?"
● Once you have asked for the sale, stop talking. The silence allows the consumer to think about
things and make a decision.

Current Issues on Online Selling

1. CNN Philippines reported that Department of Trade and Industry (DTI) Undersecretary Ruth
Castelo said that the DTI is working on an e-commerce roadmap which seeks to create a
department who will monitor merchants and stores selling goods online, but a new law is still
required for this. Castelo said “the DTI encounters multiple complaints from online buyers such
as deliveries of wrong products, false advertising where the product is not the same as the one
on the site and fake products.” She added that they find trouble regulating those who sell fake
products since these sellers are difficult to trace. (Peralta,2019)
2. Part of Article 81 of the Consumer Act or the provision on price tag requirement states:

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 “It shall be unlawful to offer any consumer product for retail sale to the public without an
appropriate price tag, label or marking publicly displayed to indicate the price of an article and the
said products shall not be sold at a price higher than that specified therein and without
discrimination to all purchasers.”

The statement above is related to the issue of “PM is the Key” which was reported by
Interaksyon last June 1, 2020. In a Facebook post, the Regional Office of the Department of Trade
and Industry stated that online retailers should make their transactions as smooth as possible by
displaying prices on the platform as mandated by Republic Act 7394 or the Consumer Act of the
Philippines. (Malasig, 2020)

3. Republic Act No. 9711, better known as the Food and Drug Administration Act of 2009, expressly
forbids the manufacture, importation, exportation, sale, and offer for sale, delivery, transfer, and
use by non-consumers, promotion, advertisement or other means of sale, sponsorship of health
products (including medical devices and supplies) without the proper authorization.

Consequently, all concerned establishments are strongly reminded that the online sale of
medical devices and supplies without the corresponding FDA authorizations (i.e. License to
Operate, Certificate of Medical Device Notification or Certificate of Medical Device
Registration/Certificate of Product Registration) is strictly prohibited. (FDA Circular No. 2020-010,
Prohibition of Online Sale of Non-Registered Medical Devices)

Activity 2.2: Using the Gantt chart below, list down all the tasks to be done prior to your selling activity up
to the actual implementation of your proposed business. On the opposite columns indicate your target
date to finish the task. Provided below is an example. You may create another format if you find it
necessary. Do this in your notebook.

Tasks Week 1 Week 2 Week 3

1. Registering your business

2. Creating of business page

3. Advertising the product

4. Selling of products/services

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Quarter 2-Week 4 to 5
Activity 2.3: Choose from any of the following tasks that you think is appropriate to your business. You
will create any of these and will post the link to the preferred educational platform given by your teacher.
a. Business Page
b. Facebook Marketplace
c. E-Commerce Marketplace

Answer the following questions. Write your answer in your notebook.

1. From your own point of view, discuss the Pros and Cons of Online Selling in the Philippines.

Pros Cons

2. Have you experienced getting engaged into any form of selling activity? If your answer is YES,
what do you sell? Whom do you sell your products? How much do you earn from selling? How
much do you enjoy doing this activity?

● You will almost certainly end up working harder for yourself than you would for anyone else, so
get ready to make sacrifices in your personal life when you set up your company.
● Providing good service to your customers is crucial to gaining their loyalty and retaining their
business.

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Quarter 2-Week 4 to 5
Activity 2.3 ORAL RECITATION: What have you learned from this module? For this activity, your teacher
will solicit your answer using the flipgrid (link will be sent prior to the activity). You will be given two (2)
minutes to share your answer. Scoring rubrics for this activity is provided below.

SCORING RUBRICS

Fluency in communication 10 points

Confidence in answering 10 points

Time management 10 points

Total highest possible score 30 points

IDENTIFICATION: Identify the correct answer agency that is responsible in the following legal functions.
Write the answer to the space given before each number.
___________1. Enforces tax laws, assesses, and collects all national revenue taxes, fees, and charges.
___________2. Businesses with at least five employees have to register the business with this
government agency.
___________3. Mandated to promote and develop cooperatives in the country.
___________4. Administers the Pag-IBIG Fund.
___________5.Promotes and regulates business activities by registering and licensing businesses for
single proprietorship.
___________6. Processes applications and issues certificates of registration for partnership and
corporations.
___________7.Prohibited the online selling of unregistered and non-notified medical devices.
___________ 8. Mandated to extend social security protection to business owners and their beneficiaries.
___________9.Issued Mayor's permit and sanitation permit.
___________10. Provided power supply in Metro Manila.

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