Entrepreneurship and Cooperatives

ENTREPRENEURSHIP, COMMUNITY COOPERATIVES, AND ONLINE BUSINESS GROUP 8
Concept of Entrepreneurship
The word Entrepreneurship is derived from the French verb
“ENTERPRENDRE”.
The French men who organized and led military expeditions in the early
16th Century were referred to as Entrepreneurs.
Around 1700 A.D. the term Entrepreneur was used for architects and
contractors of public work.
Definition of Entrepreneurship
According to A.H. Cole:

“Entrepreneurship is the purposeful activity of an individual or group
of associated individuals, undertaken to initiate, maintain or
aggrandize profit by production or distribution of economic goods or
services.”
According to Peter P. Drucker:

“Entrepreneurship is neither a science nor an art. It is a practice. It is
knowledge base. Knowledge in entrepreneurship is a means to an end,
that is, by the practice.”
Definition of Entrepreneur
Entrepreneurs are people that notice opportunities and take the

initiative to mobilize resources to make new goods and services.
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Characteristics of an Entrepreneur
Mental Ability – Entrepreneur must have creative thinking and must be
able to analyze problems and situations. He should be able to anticipate
changes.
Business Secrecy – He should guard his business secrets from his
competitors.
Clear Objectives – He must have clear objectives as to the exact nature
of business or the nature of goods to be produced.
Human Relations – He must maintain good relation with his customers,
employees, etc. To maintain good relationship, he should have emotional
stability, personal relations, tactfulness and consideration.
Communication Ability – He should have good communication skills
means both the sender and the receiver should understand each other’s
message.
Technical Knowledge – He should have sufficient technical knowledge.
Key Personal
Attributes
Strong Managerial Successful

Competencies Entrepreneurs
Good Technical
Skills
Key Personal Attributes
Entrepreneurs are Made, not Born!

 Many of these key attributes are developed early in life, with the
family environment playing an important role.
 Entrepreneurs tend to have had self employed parents who tend to

support and encourage independence, achievement, and
responsibility.
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 Firstborns tend to have more entrepreneurial attributes because

they receive more attention, have to forge their own way, thus
creating higher self-confidence.
Need for Achievement

 A person’s desire either for excellence or to succeed in competitive
situations.
 High achievers take responsibility for attaining their goals, set

moderately difficult goals, and want immediate feedback on their
performance.
 Success is measured in terms of what those efforts have

accomplished.
Desire for Independence

 Entrepreneurs often seek independence from others.
 As a result, they generally aren’t motivated to perform well in large,

bureaucratic organizations.
 Entrepreneurs have internal drive, are confident in their own

abilities, and possess a great deal of self-respect.
Self-Confidence
 Because of the high risks involved in running an entrepreneurial
organization, having an “upbeat” and self-confident attitude is
essential.
 A successful track record leads to improved self-confidence and

self-esteem.
 Self-confidence enables that person to be optimistic in representing

the firm to employees and customers alike.
Self-Sacrifice
 Essential
 Nothing worth having is free.
 Success has a high price, and entrepreneurs have to be willing to

sacrifice certain things.
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Planning for a Simple Business
What is a Business Plan?
In its simplest form, a business plan is a guide — a roadmap for

your business that outlines goals and details how you plan to achieve
those goals.
If you’ve ever jotted down a business idea on a paper with a few

tasks you need to accomplish, you’ve written a business plan — or at
least the very basic components of one. At its heart, a business plan is
just a plan for how your business is going to work, and how you’re going
to make it succeed.
3 Rules for Writing a Business Plan
Keep it short.
 Business plans should be short and concise.
The reasoning for that is twofold:
1. First, you want your business plan to be read (and no one is

going to read a 100-page or even 40-page business plan).
2. Second, your business plan should be a tool you use to run and
grow your business, something you continue to use and refine
over time. An excessively long business plan is a huge hassle to
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deal with and guarantees that your plan will be relegated to a

desk drawer, never to be seen again.
Know your audience.

 Write your plan using language that your audience will understand.
For example, if your company is developing a complex scientific

process, but your prospective investors aren’t scientists (and don’t
understand all the detailed scientific terminology you want to use),
you need to adapt.
Instead of this:
“Our patent-pending technology is a one-connection add-on to

existing bCPAP setups. When attached to a bCPAP setup, our
product provides non-invasive dual pressure ventilation.”
Write this:
“Our patent-pending product is a no power, easy-to-use

device that replaces traditional ventilator machines used in
hospitals at 1/100th the cost.”
Don’t be intimidated.
 The vast majority of business owners and entrepreneurs aren’t

business experts. Just like you, they’re learning as they go and don’t
have degrees in business.
 Writing a business plan may seem like a difficult hurdle, but it

doesn’t have to be. If you know your business and are passionate
about it, writing a business plan and then leveraging your plan for
growth will not be nearly as challenging as you think.
Now that we have the rules of writing a business plan out of the way,
let’s dive into the details of building your plan.
Remember, your business plan is a tool to help you build a better

business, not just a homework assignment. Good business plans are living
documents that you return to on a regular basis and update as you learn
more about your customers, sales and marketing tactics that work (and
don’t), and what you got right and wrong about your budget and forecast.
Your plan sets out the goals you’d like to achieve and you should use it to
track your progress and adjust course as you go.
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6 Things to Include in a Business Plan
Executive Summary
This is an overview of your business and your plans. It comes first
in your plan and is ideally only one to two pages. Most people write it
last, though.
Opportunity
This section answers these questions: What are you actually
selling and how are you solving a problem (or “need”) for your
market? Who is your target market and competition?
Execution
How are you going to take your opportunity and turn it into a
business? This section will cover your marketing and sales plan,
operations, and how you’re going to measure success.
Team and company

Investors look for great teams in addition to great ideas. Use this
chapter to describe your current team and who you need to hire. You
will also provide a quick overview of your legal structure, location,
and history if you’re already up and running.
Financial plan
Your business plan isn’t complete without a financial forecast. A
typical financial plan will have monthly projections for the first 12 months
and then annual projections for the remaining three to five years. Three-
year projections are typically adequate, but some investors will request a
five-year forecast.
Appendix
If you need more space for product images or additional
information, use the appendix for those details.
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Types and Concept of Community Cooperatives

Definition. A cooperative is an autonomous and duly registered
association of persons, with a common bond of interest, who have voluntarily
joined together to achieve their social, economic, and cultural needs and
aspirations by making equitable contributions to the capital
required, patronizing their products and services and accepting a fair share of
the risks and benefits of the undertaking in accordance with universally
accepted cooperative principles.
Purpose. The declared purpose of the law, among others, is to foster the
creation and growth of cooperatives as a practical vehicle for promoting self-
reliance and harnessing people power towards the attainment of economic
development and social justice.
Types of Cooperatives. Cooperatives may fall under any of the following

types, in addition to others which may be determined by the Cooperative
Development Authority (CDA):
Credit Cooperative. Promotes and undertakes savings and lending services

among its members. It generates a common pool of funds in order to
provide financial assistance to its members for productive and provident
purposes.
Consumers Cooperative. The primary purpose is to procure and distribute

commodities to members and non-members.
Producers Cooperative. Undertakes joint production whether agricultural or

industrial. It is formed and operated by its members to undertake the
production and processing of raw materials or goods produced by its
members into finished or processed products for sale by the cooperative
to its members and non-members.
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Marketing Cooperative. Engages in the supply of production inputs to

members and markets their products.
Service Cooperative. Engages in medical and dental care, hospitalization,

transportation, insurance, housing, labor, electric light and power,
communication, professional and other services.
Multipurpose Cooperative. Combines two or more of the business activities

of these different types of cooperatives.
Advocacy Cooperative. A primary cooperative which promotes and

advocates cooperativism among its members and the public through
socially-oriented projects, education and training, research and
communication, and other similar activities to reach out to its intended
beneficiaries.
Agrarian Reform Cooperative. Organized by marginal farmers majority of

which are agrarian reform beneficiaries for the purpose of developing an
appropriate system of land tenure, land development, land consolidation
or land management in areas covered by agrarian reform.
Cooperative Bank. Organized for the primary purpose of providing a wide

range of financial services to cooperatives and their members.
Dairy Cooperative. One whose members are engaged in the production of

fresh milk which may be processed and/or marketed as dairy products.
Education Cooperative. Organized for the primary purpose of owning and

operating licensed educational institutions notwithstanding the
provisions of Republic Act No. 9155, otherwise known as the Governance
of Basic Education Act of 2001.
Electric Cooperative. Organized for the primary purposed of undertaking

power generations, utilizing renewable energy sources, including hybrid
systems, acquisition and operation of subtransmission or distribution to
its household members.
Financial Service Cooperative. One organized for the primary purpose of

engaging in savings and credit services and other financial services.
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Fishermen Cooperative. Organized by marginalized fishermen in localities

whose products are marketed either as fresh or processed products.
Health Services Cooperative. Organized for the primary purpose of providing

medical, dental and other health services.
Housing Cooperative. Organized to assist or provide access to housing for

the benefit of its regular members who actively participate in the savings
program for housing. It is co-owned and controlled by its members.
Insurance Cooperative. Engaged in the business of insuring life and poverty

of cooperatives and their members.
Transport Cooperative. Includes land and sea transportation, limited to

small vessels, as defined or classified under the Philippine maritime
laws, organized under the provisions of this Code.
Water Service Cooperative. Organized to own, operate and manage waters

systems for the provision and distribution of potable water for its
members and their households.
Workers Cooperative. Organized by workers, including the self-employed,

who are at same time the members and owners of the enterprise. Its
principal purpose is to provide employment and business opportunities
to its members and manage it in accordance with cooperative principles.
Membership. New members may only be admitted to the cooperative

after undergoing Pre-Membership Education Seminar. There are two kinds of
members:
1. Regular members. Entitled to all the rights and privileges of

membership, including the right to vote and be voted upon.
2. Associate members. Has no right to vote nor be voted upon and shall
be entitled only to such rights and privileges as the bylaws may provide.
However, an associate member shall be considered a regular member if:
(a) he has been a member for 2 continuous years; (b) he patronizes the
cooperative as its member; and (c) he signifies his intention of becoming
a regular member.
A member shall be liable for the debts of the cooperative to the extent of his
contribution to the share capital of the cooperative.
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Concept of Online Business

A business owner who does any, or all, of their business using the
internet, is running an online business.
The act of buying and selling online is known as e-commerce
(electronic commerce).
Other common terms are 'online trading' and 'online shopping'.
4 Reasons Why an Online Business

is the Best Investment You Will Ever Make
Offers incredible scalability
Scaling any business is not easy, whether it is a brick-and-

mortar location or an online business, but an online business has
advantages. For instance, a brick-and-mortar retail store has a
defined audience, typically a radius from the business location. An
online business isn’t restricted by this and can market to a
worldwide audience.
Provides limitless freedom
Modern technology, laptops, tablets, business apps and

VOIP communication systems are just some of the tools that allow
businesses to be operated from any location.
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Low overhead and high margins
An online business will often allow you to eliminate some of

the huge costs associated with an offline business. Not only can
you eliminate things such as pricey office or retail space and long-
term lease commitments, but you can also eliminate having to tie
up your money in stocking inventory.
Access to a worldwide market
The beautiful thing about an online business is the ability to

run it 24/7 without boundaries. There are no geographical
boundaries and there are no specific hours of operation — an
online business can produce revenue around the clock, even while
you sleep.
Survey for Online Selling
Ask for honest feedback, and then use it to create the online shopping
experience that will win your loyal customers.
Customer satisfaction
Survey your customers to find out if they’re enjoying their
experience with your business. Identify areas of excellence and
opportunity for improvement, and use that information to focus your
investments.
Online experience
Need a faster technology platform? Is it time to spruce up your
site’s look and feel? Survey your users to evaluate and improve the
online shopping experience you’re delivering.
Product evaluations
Ask your customers to provide feedback on your products.
What did they think of the quality and the cost? Is this a product they
would buy online regularly? Find out if they would consider a regular
auto-ship subscription for this product or others.
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Net Promoter Score

Referrals build businesses! Find out if your satisfied customers
would happily recommend you to their family and friends. Poll them
to discover if they would be willing to talk about your business or
products through their social networks on Facebook, Twitter,
Pinterest, and more.
Promotion for Online Selling
Provide offers on a regular basis — discounts and promos
Embrace social media — building followers in sites like Facebook, Twitter,

Instagram, etc.
Collaborate with bloggers — gauge their presence with the amount of

comments that they receive
Start a blog — get to interact more directly with your costumers
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ENTREPRENEURSHIP, COMMUNITY COOPERATIVES, AND ONLINE BUSINESS GROUP 8

According to A.H. Cole:

According to Peter P. Drucker:

Entrepreneurs are people that notice opportunities and take the

Strong Managerial Successful

Key Personal Attributes

Entrepreneurs are Made, not Born!

 Entrepreneurs tend to have had self employed parents who tend to

 Firstborns tend to have more entrepreneurial attributes because

Need for Achievement

 High achievers take responsibility for attaining their goals, set

 Success is measured in terms of what those efforts have

Desire for Independence

 As a result, they generally aren’t motivated to perform well in large,

 Entrepreneurs have internal drive, are confident in their own

 A successful track record leads to improved self-confidence and

 Self-confidence enables that person to be optimistic in representing

 Nothing worth having is free.

 Success has a high price, and entrepreneurs have to be willing to

Planning for a Simple Business

What is a Business Plan?

In its simplest form, a business plan is a guide — a roadmap for

If you’ve ever jotted down a business idea on a paper with a few

3 Rules for Writing a Business Plan

The reasoning for that is twofold:

1. First, you want your business plan to be read (and no one is

deal with and guarantees that your plan will be relegated to a

Know your audience.

For example, if your company is developing a complex scientific

“Our patent-pending technology is a one-connection add-on to

“Our patent-pending product is a no power, easy-to-use

 The vast majority of business owners and entrepreneurs aren’t

 Writing a business plan may seem like a difficult hurdle, but it

Remember, your business plan is a tool to help you build a better

6 Things to Include in a Business Plan

Team and company

Types and Concept of Community Cooperatives

Types of Cooperatives. Cooperatives may fall under any of the following

Credit Cooperative. Promotes and undertakes savings and lending services

Consumers Cooperative. The primary purpose is to procure and distribute

Producers Cooperative. Undertakes joint production whether agricultural or

Marketing Cooperative. Engages in the supply of production inputs to

Service Cooperative. Engages in medical and dental care, hospitalization,

Multipurpose Cooperative. Combines two or more of the business activities

Advocacy Cooperative. A primary cooperative which promotes and

Agrarian Reform Cooperative. Organized by marginal farmers majority of

Cooperative Bank. Organized for the primary purpose of providing a wide

Dairy Cooperative. One whose members are engaged in the production of

Education Cooperative. Organized for the primary purpose of owning and

Electric Cooperative. Organized for the primary purposed of undertaking

Financial Service Cooperative. One organized for the primary purpose of

Fishermen Cooperative. Organized by marginalized fishermen in localities

Health Services Cooperative. Organized for the primary purpose of providing

Housing Cooperative. Organized to assist or provide access to housing for

Insurance Cooperative. Engaged in the business of insuring life and poverty

Transport Cooperative. Includes land and sea transportation, limited to

Water Service Cooperative. Organized to own, operate and manage waters

Workers Cooperative. Organized by workers, including the self-employed,

Membership. New members may only be admitted to the cooperative

1. Regular members. Entitled to all the rights and privileges of

Concept of Online Business

4 Reasons Why an Online Business