CHAPTER-3-ENTREPRENEURIAL-PROCESS....pdf

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2. LEARNING
OUTCOMES
Discuss what is a sound business idea.
Explain how to protect your business idea.
Apply the procedures on how to apply for patents,
apply for registration of the name of business and
to apply for copyrights of your products and
services

3. WHAT IS SOUND
BUSINESS IDEA
is a concept which can be used for commercial purposes. It typically
centers around a commodity or service that can be sold for money,
according to a unique model. The ability to come up with a business idea
can be transformed into a viable business, where ideas supported by
feasibility and a business plan can then be sold to interested investors,
firms, and interested parties for a lump sum or a management contract,
or as agreed.
is a concept for a
product or service that
doesn’t exist or is not
currently available in a
market niche.
is an idea for a new product or
service with a market that is
willing to pay that product or
service so that it can form the
basis of a profitable business.

is a process of making
changes to something
that adds value to
customers.

BUSINESS IDEA
IDEA OPPORTUNITY INNOVATION

5. DISCOVERY
An entrepreneurial process begins with the idea
generation, wherein the entrepreneur identifies and
evaluates the business opportunities.
entrepreneur studies the
market by seeking inputs from
all the persons including
employees, consumers, channel
partners, technical people, etc.
to reach to an optimum
business opportunity.
IDENTIFY OPPORTUNITIES BY
DOING:
whether the opportunity is worth investing
in
is it sufficiently attractive,
are the proposed solutions feasible,
is there any competitive advantage, what
are the risk associated with it.
Entrepreneur must analyze his personal
skills and hobbies, whether these coincides
with the entrepreneurial goals or not.
EVALUATE OPPORTUNITIES BY DOING:
continuously asking certain questions to
himself, such as:

6. You need to consider your
hobbies, consider
consumers’ needs and
wants, conduct surveys and
questionnaires – test the
market, and study
demographics and market
research.

7. Three Ways to Identify an Opportunity

8. DEVELOPING A BUSINESS PLAN/CONCEPT
DEVELOPMENT
Once the opportunity is identified, an entrepreneur needs to
create a comprehensive business plan. A business plan is critical
to the success of any new venture since it acts as a benchmark
and the evaluation criteria to see if the organization is moving
towards its set goals.
a detail proposal describing the business idea, the major components
of a business plan are mission and vision statement, goals and
objectives, capital requirement, a description of products and services,
etc. At this stage, the entrepreneur has to choose the business location
and decide to secure patent or trademark.
BUSINESS PLAN:

9. is a word, phrase, symbol or design, or a combination of words,
phrases, symbols or designs, that identifies and distinguishes the
source of the goods of one party from those of others
TRADEMARK
COPYRIGHT
protects works of authorship, such as writings, music, and works
of art that have been tangibly expressed.
PATENT
for an invention is the grant of a property right to the inventor,
issued by the Patent and Trademark Office.

10. RESOURCING
The third step in the
entrepreneurial process is
resourcing, wherein the
entrepreneur identifies the
sources from where the
finance and the human
resource can be arranged.
Here, the entrepreneur
finds the investors for its
new venture and the
personnel to carry out the
business activities.

11. ACTUALIZATION/MANAGING THE
COMPANY:
Once the funds are raised and the employees are hired,
the next step is to initiate the business operations to
achieve the set goals. First of all, an entrepreneur must
decide the management structure or the hierarchy that
is required to solve the operational problems when they
arise. The entrepreneur has to prepare for its Grand
Opening and its day-to-day operations.

12. HARVESTING:
The final step in the entrepreneurial process is
harvesting wherein, an entrepreneur decides on the
future prospects of the business, i.e. its growth and
development. Here, the actual growth is compared
against the planned growth and then the decision
regarding the stability or the expansion of business
operations is undertaken accordingly, by an
entrepreneur.
The entrepreneur has to ask himself the following questions:

What is my 5-year or 10-year plan?

Consider adding locations or providing different products/services

Will I go public?

13. IDENTIFY THE SOURCES OF
ENTREPRENEURIAL IDEAS
Government’s
thrust, programs,
and policies
Changes in the
environment
Technological
discovery and
advancement

People’s interests

Past experiences

14. CHANGES IN THE ENVIRONMENT
The term external environment in this lesson refers to the physical environment,
societal environment, and industry environment where the business operates.
1. The physical environment includes 3. The industry environment of the
a. Climate business includes:
b. Natural resources, and a. Government
c. Wildlife b. Competitors
c. Suppliers
2. The societal environment includes the d. Customers
various forces like e. Creditors
a. Economic forces f. Employees
b. Sociocultural forces
c. Political forces, and
d. Technological environment

16. TECHNOLOGICAL DISCOVERY AND
ADVANCEMENT
Discovery and advancement in the use of technology are other
good sources of entrepreneurial ideas and opportunities. Most
people welcome technological discoveries and advancements but
cannot identify or determine entrepreneurial opportunities
stemming from them. On the other hand, a person with
entrepreneurial interest looks at the possibility of business
opportunities in any discovery or advancement in technology.

17. TECHNOLOGICAL DISCOVERY AND
ADVANCEMENT
For example, a person with sufficient knowledge in the repair
and installation of a mechanical engine discovers that the
additional engine parts he installed during the repair have
considerably reduced fuel consumption. That person could simply
rest on his laurel for having contributed to fuel conservation.
Nevertheless, if he had any entrepreneurial drive, he would see his
discovery as a business opportunity to manufacture the new
engine parts that could reduce fuel consumption.

18. PEOPLE'S INTEREST
The interests, hobbies, and preferences of people are a rich
source of entrepreneurial ideas. For example, the increasing
number of Internet cafes at present could be attributed to the
strong attachment of young people to computers. The rise of
amusement parks, nightspots, and nature farms could be a
response to the need of people for fun and relaxation.
As a future entrepreneur, your business venture should be
adaptive to the interests and hobbies of the people to protect and
sustain your business. Keep evaluating the interests of your target
customers.

19. PAST EXPERIENCE
Past experiences and exposures are also a good source of
entrepreneurial ideas. The expertise and skills developed by a
person who has worked in a particular field may lead to the
opening of a related business enterprise.
For example, an auditor who has learned the appropriate
auditing and management advisory skills and techniques in a
prominent auditing firm can start his/her entrepreneurial venture
by opening his/her own auditing office. In a similar manner, a
good engine mechanic who has worked in a leading car
manufacturer may find it appropriate to open his/her vehicle
repair shop. Thus, his/her relevant job experiences in the past can
lead to that entrepreneurial venture.

20. HOW TO
PROTECT
YOUR
BUSINESS

21. INTELLECTUAL PROPERTY
Refers to creations of the mind. It can be an invention
(patent / utility model), a design (industrial design), a brand
name (trademark, or a literary and artistic work (copyright).
The rights of intellectual property can be about a brand, logo,
corporate identity, products, services, or even processes that
differentiate the commercial offer. These are the most valuable
assets that a company can own.
Intellectual property plays an essential role in business success.
Especially in the case of a startup where innovation of the idea
and the risk on investment and success of this are united.

22. ADVANTAGES OF THIS PROTECTION
FEATURES:
Is the exclusive right by preventing third parties to produce,
manufacture, sell or to economically exploit the developed
solution, without the permission of the holder;
Facilitates business growth as this is protected legally impossible
competition to adopt the ideas;
It demonstrates the commitment of entrepreneurs for their ideas;
Values ​​the investment for the development of products or services;
It allows for differentiation from competitors by offering customers
something new and innovative;
It generates money by selling or licensing the product or service;
Transmits security, credibility, and commitment to the customer
by the holder.

23. Patent

Trademark
Trade
Secrets
Copyright
TYPES OF PROTECTIONS FOR
YOUR BUSINESS IDEA

24. these patents protect processes, machines, manufactured items,
or composition of matter. Some examples include medicine,
electronics, etc.
UTILITY PATENTS
DESIGN PATENTS
these patents protect new, original, and ornamental designs for
manufactured items. Examples are the design of athletic shoes
or an automobile body.
PLANT PATENTS
these patents cover asexually reproduced and distinct plant
varieties. For example, plant patents cover hybrid tea roses, as
well as Better Boy Tomatoes.
THREE MAIN TYPES OF PATENTS

25. A trademark includes any word, name, symbol, sound, scent or
device or any combination used, or intended to be used, in
commerce to identify and distinguish the goods of one
manufacturer or seller from goods manufactured or sold by
others, and to indicate the source of the goods.
In short, a trademark is a brand name. A service mark is the same
as a trademark except that it identifies and distinguishes the
source of a service rather than a product, such as dry cleaning
service or banking services.
TRADEMARKS

26. As a brand name, most inventions have two names- a
brand name and a generic name. For example, think
about coca-cola. You may know it as Coke-the brand
name, but its generic name is soda or pop. It is
important for new inventions to be given both a brand
name and a generic name. That way people identify it
generically and associate the brand with quality and
desire to purchase.
TRADEMARKS

27. Fanciful – new words that had no meaning before their
use as a trademark.
Arbitrary – common words used so that their original
meaning has no relationship to the goods or services to
which they are applied
There are guidelines to consider to make sure your name is
fully protected under trademark law. Take a look at the
scale below:
Example: Starbucks, Verizon, Cingular, Exxon
Example: the trademark Apple for computer products – an
apple (which is known to be a fruit) has nothing to do with
computer products.
TRADEMARKS

28. Suggestive – these trademarks allude to a quality or
characteristic of the product or service. Example – the
name Jaguar implies speed – a quality that is desirable
in high end cars also named Jaguar.
Descriptive – these names describe the service or
product such as Autoway – a store for Autos, or Frosted
Flakes to describe Flakes or Frosted Cereal. Descriptive
names may be easier to market but harder to register.
To register a trademark, the company must show that
consumers identify it as a particular brand from a
specific name.
TRADEMARKS

29. Generic – a generic term identifies a type of product or
service, without indicating any particular manufacturer
or source. For example, cola and soda are generic terms,
PEPSI and COKE are trademarks used to identify types
of cola and soda. Trademarks can lose their ability to
identify the source of specific products when the public
begins using them as generic names of products.
TRADEMARKS

30. Copyright is the legal right granted to a creator of an
original work of authorship to control publication,
production, sale, or distribution of it, including literary,
dramatic, musical, artistic, and certain other intellectual
works.
Think about the word itself – “copy” with “right”. The
owner has the right to decide how or if the creation is
going to be copied.
COPYRIGHTS

31. Copyrights protect original works of authorship.
Examples of these are literary works, music, sound
recordings, dramatic works, pantomimes, and cinematic
choreography, sculptural works, pictorial and graphic,
architectural works, software, web content, among many
others.
COPYRIGHTS

32. (1) the symbol “Ⓒ” or the abbreviation “Copr.,” or the word
“Copyright”
(2) the date of first publication; and
(3) the name of the owner of the copyright.
Copyright consists of three elements:
To qualify for copyright registration, the work should be
represented in a tangible means of expression, such as a piece
of paper. The duration varies according to the type of work,
when, and where it was created. Thus, the company should
seek information on securing an idea.
Under the 1976 Copyright Act:

33. FORMULA

PATTERN, PLAN
OR DESIGN
PHYSICAL DEVICE USED IN
MANUFACTURING
PROCESS, METHODS OR
TECHNIQUES
TRADE SECRETS
A trade secret is information that a company keeps to give them an
advantage over their competitors. Trade secrets can include formulas,
patterns, plans, designs, physical devices and processes.

34. HOW TO
APPLY FOR
REGISTRATION
OF A
BUSINESS
NAME

35. HOW TO APPLY FOR REGISTRATION OF A
BUSINESS NAME
What’s in a name? In a business, it means a lot. Your
business name is your company’s branding, so it should
catch attention and can be easily recalled.
Aside from spending time coming up with a name for
your new business, you also need to register it with the
Department of Trade and Industry (DTI), if you’re a sole
proprietor.

36. WHAT IS A BUSINESS NAME?
Business Name (BN) shall refer to ANY name that is
different from THE TRUE NAME OF AN INDIVIDUAL WHICH IS
USED OR SIGNED in connection with her/his business on any
written or printed receipts, including receipts for business
taxes, duties and fees, and withdrawal or delivery receipts;
any written or printed evidence of any agreement or
business transaction; and any sign or billboard conspicuously
exhibited in plain view in or at the place of her/his business
or elsewhere, announcing his /her business.

37. WHY DO YOU NEED TO REGISTER YOUR
BUSINESS NAME WITH DTI?
Business name registration is required in the
Philippines. According to the Business Name Law
(Republic Act 3883), it’s illegal for anyone to use
any name for a business other than the owner’s
true name without first registering the business
name with the DTI.

38. In short, securing your trade name will
guarantee you the legal and exclusive right to
use it within its validity period (renewable every
five years). This means no other business can
register or use your business name in the
barangay, city or municipality, region, or country,
depending on your business location coverage.

39. However, note that business name registration
with the DTI is only for sole proprietors and not a
license to run a business (You’ll need to secure a
business permit and other related documents for
that purpose).

40. WHAT ARE THE TIPS IN CHOOSING YOUR
BUSINESS NAME?
To make the process a lot faster and easier,
follow these guidelines from the DTI Business
Name Registration System when deciding on
your proposed business names: Hence, it is your
responsibility to ensure that your proposed
Business Name is:

41. WHAT ARE THE TIPS IN CHOOSING YOUR
BUSINESS NAME?
Proposed Business Name (PBN) should be
descriptive of the nature of the business and
must have prefix, infix, and/or suffix (e.g.
Bart’s Laundry; Cafeteria ni Greys)
PBN should not be used for business that is
illegal, offensive, and scandalous. (e.g. Pop’s
Jueteng Betting Station)

42. PBN should not be nearly the same as an
existing registered business, company,
partnership, corporation, cooperative name,
or trademark. (e.g. Anne Doks Lechon;
Jollibae, Starbax Café)
PBN should not be composed of purely
generic or geographic words. (e.g. The
Drugstore; Bacolod’s)

43. PBN should not be a name which by law or
regulation prohibited. (e.g. OTOP; Intelligence;
State College)
PBN should not be used to designate,
distinguish, and suggest quality of goods and
services. (e.g. Best Taho Factory; A-1 Auto
Repair Shop)

44. PBN should have at least three (3) characters.
(e.g. CJF Construction Supply)
PBN should not use by the government in its
governmental functions. (e.g. NBI Private
Investigation Services, DTI Trading)

45. PBN should not be a name or abbreviation of a
name of any nation, inter-governmental or
international organization. (e.g. Philippine
Manpower Pooling Agency; WHO Health
Services)
PBN should not be deceptive, misleading, or
misrepresent the nature of the business. (e.g.
“GOLD Construction Services” where nature of
business is recruitment)

46. WHO CAN APPLY FOR DTI BUSINESS
REGISTRATION?
At least 18 years old (Foreign nationals aged
below 18 must submit proof that they come
from a country where the legal age is lower
than 18.)
Filipino citizen
You may apply for DTI business name registration
if you meet these eligibility criteria:

47. Foreign national with a Certificate of
Registration of Sole Proprietorship/Certificate
of Authority to Engage in Business in the
Philippines
Refugee or stateless person
A representative may file your application for
DTI business registration by submitting your
authorization letter as a business name applicant,
his or her valid ID, and other required documents.

48. WHAT ARE THE DTI BUSINESS
REGISTRATION REQUIREMENTS
Passport
Driver’s license
UMID
PRC ID
NBI Clearance
All applicants (except for those filing their
application online) must download, print, and fill
out two copies of the Business Name Registration
Form[1] and present any of the following valid IDs:

49. Police Clearance (in ID form)
Postal ID
Voter’s ID
OWWA ID
Seaman’s Book
BP ID
Senior citizen ID
PWD ID
Government office ID
Validated state college/university ID

50. ADDITIONAL DOCUMENTS ARE REQUIRED
DEPENDING ON THE APPLICANT:
For foreign nationals: Alien Certificate of
Registration and Certificate of Registration for
Sole Proprietorship/Certificate of Authority to
Engage in Business in the Philippines issued by
the concerned DTI office
For refugees/stateless people: Certificate of
Recognition issued by the DOJ-RSPPU or
Certificate of Recognition

51. Foreigners, refugees, and stateless people who
apply for DTI business registration online still need
to submit the documents listed above at any DTI
office. There’s also a business name registration
fee that varies per business territorial scope:
Barangay – PHP 200
City/Municipality – PHP 500
Regional – PHP 1,000
National – PHP 2,000

An additional PHP 30 must be paid for the
Documentary Stamp Tax during your DIT business
registration.

52. HOW TO REGISTER YOUR BUSINESS NAME
WITH DTI
Online Application for DTI Business Registration

53. Check if your prospective business name is
available. Go to the Business Name Search page of
the BNRS website and type the keywords of your
preferred trade name.
Starting February 2019, all applications for DTI
business name registration should be filed through
the Business Name Registration System (BNRS). No
need to visit a DTI office to get a Certificate of
Business Name Registration.
Here are the steps to register your business name
online through the BNRS.

54. Proceed with your DTI business registration online
once you’ve confirmed that your target business
name is still available. Access the New Registration
page of the BNRS site and read the Terms and
Condition. When you’re done, click the I Agree
button at the bottom of the page.
Fill out the online registration form. Fields marked
with a red asterisk must not be left blank. Your tax
identification number (TIN) must also be provided
on the online form.

55. Pay the business name registration fee within five
calendar days from the online application date.
You can pay at the DTI office or Negosyo Center
indicated in your Transaction Reference Number
(TRN) acknowledgment form. For convenience,
make your online payment immediately during
your DTI business registration via Gcash. If you
have a Gcash account, just enter your mobile
number in the Payment Details section.
Claim your Certificate of Business Name
Registration at the nearest DTI office or download
it for printing.

56. WALK-IN / OVER-THE-COUNTER APPLICATION
FOR DTI BUSINESS REGISTRATION
Go to any DTI office or Negosyo Center[2].
Submit all the DTI business registration
requirements. Make sure to have a list of
backups in case your three proposed business
names are already taken.
Pay the business name registration fee.
Once DTI approves your business name, it will
issue a Certificate of Business Name
Registration to you.

57. Keep your business name document because
it’s one of the most important documents you
need to register your business at the municipal
office and the Bureau of Internal Revenue (BIR).