TECHNOPRENEURSHIP

GERALD L. DIADID, MBA

Instructor
In the book entitled Entrepreneurs Are Made Not Born,
Author Lloyd Shefsky defined entrepreneur as:

entre means to enter

pre means before
neur means nerve center

Shefsky’s practical view on the term entrepreneur

leads to a definition of the word as someone who
enters a business – any business – in time to
form or change substantially that business
nerve center.

TECHNOPRENUERSHIP
What is Entrepreneurship?
It is the process of creating something new with
value by devoting the necessary time and effort,
assuming the accompanying financial, psychic,
and social risks, and receiving the resulting
rewards of monetary and personal satisfaction
and independence.

Entrepreneurship is the process of discovering

new ways of combining resources.

TECHNOPRENUERSHIP
Who is Entrepreneur?
An entrepreneur is a person who starts and
or operates a business.
He/she is creative and innovative.
He/she is a person who starts something new.
He/she may be male or female, young or old,
professional, college graduate or school
dropout, comes from A, B, C, D or E economics
group.

TECHNOPRENUERSHIP
Who is Entrepreneur?
He is an owner-manager and willing to take risks
of a business or enterprise.
Usually he is someone not willing to work for
others. Instead, he wants others to work for him.
Usually, his kind of business is single
proprietorship because he does every thing from
production to selling.
An entrepreneur is an agent of change.
TECHNOPRENUERSHIP
 List of Famous Filipino
Entrepreneurs and their Brands
Manny Villar – from fish vending to
enterpreneur and politics
Lucio Tan – the tobacco king
Sandy “Andok” Javier – the litson king
Brother Mike – a religious enterpreneur
Socorro “Nanay” Ramos – the woman
enterpreneur
Henry Sy – the king of shoes

TECHNOPRENUERSHIP
 INTRODUCTION
Businesses are the backbone of the economy.
Entrepreneurs plays an important role in
developing the economy through providing the
needed products and services including the
solution to the problem of unemployment.
Entrepreneurs are encouraged by the economy
because they can provide a lot of opportunities for
the unemployed young people.
 DEFINITION OF BUSINESS
It is an organization where economic resources
or inputs such as materials and services, are
brought together and distributed to deliver or to
give consumers goods, products or outputs. It
involves significant operations such as buying,
assembling, distributing, advertising, selling and
accounting.
 MAJOR TYPES OF BUSINESS

1. Service Business
2. Merchandising Business
3. Manufacturing Business
 SERVICE BUSINESS

A service business is one that offers services as its

main product rather than physical goods. A service
business may offer professional skills, expertise,
advice, lending, service and similar services.
Examples: barber shops and beauty parlors, repair
shops, banks, accounting and law firms
SERVICE BUSINESS
 MERCHANDISING BUSINESS

A merchandising business (or trading business) is one that

buys and sells goods without changing their physical form.

This type of business buys at wholesale and later sells the

products at retail. They make a profit by selling the merchandise
or products at prices that are higher than their purchase costs.
This type of business is also known as "buy and sell". Examples
are: book stores, sari-sari stores, hardware stores
MERCHANDISING BUSINESS
 MANUFACTURING BUSINESS

This type of business buys raw materials and uses them in

making a new product, therefore combining raw materials, labor
and expenses into a product for sale later on.
Examples are: shoe manufacturing businesses, car
manufacturing plants
 MANUFACTURING BUSINESS

This type of business buys raw materials and uses them in

making a new product, therefore combining raw materials, labor
and expenses into a product for sale later on.
Examples are: shoe manufacturing businesses, car
manufacturing plants
 HYBRID BUSINESS

Hybrid businesses are companies that may be classified in

more than one type of business.

A bakery, for example, combines raw materials in making

loaves of bread (manufacturing), sells hot pandesal
(merchandising), and caters customers’ orders in small coffee
table servings of ensaymada and hot coffee (service).
 ENRICHMENT EXERCISE
Identify if it is a service, merchandising, manufacturing business
or hybrid:
_________________1. Provides services to customers
_________________2. Sells goods to customers
_________________3. Raw materials are available
_________________4. Goods to be sold are purchased from a supplier
_________________5. Goods to be sold are produced by the company
itself
_________________6. Supplies are used, no goods to be sold
_________________7. Bakery
_________________8. Barber shop
_________________9. Cellphone store
_________________10. Abenson appliances
FORMS OF BUSINESS LC
ORGANIZATION 1
 Examples of Business
LC
Organization
1.2
SOLE PROPRIETORSHIP
 Examples of Business
LC
Organization
1.2
PARTNERSHIP
 Examples of Business
LC
Organization
1.2
CORPORATION
 SOLE PROPRIETORSHIP

“Suppose you want to open your own sari-sari store that

will need PHP10,000 to start and you used your PHP10,000
savings to start the said business. You are the sole owner of
the said sari-sari store. This type of business is called
sole/single proprietorship.”
 SOLE PROPRIETORSHIP
• A form of business is owned by one person; the simplest,
and the most common form of business organization.

• It is not separate from the owner. The business and the

owner are inseparable.
• The owner is called a proprietor.
1. Sole proprietorships – one individual
business for himself.
They are the simplest to form because of
the small amount of capital needed to start up.
The owner is personally liable for all the obligations of
the sole proprietorship.
Examples are beauticians, dentists, lawyers,
dry-cleaning and lawn care and lemonade stands.
 Advantages of a Sole
Proprietorship
A. Easy to form–no complicated
legal documents or complicated
tax forms, small amount of capital needed.

B. Owners receive the entire profit.

C. Total control – can make decisions

quickly, can hire and fire easily, can
respond quickly to trends.

D. Simple Taxation
 Disadvantages of Sole proprietorships

A. Unlimited liability (debt) - have to forfeit

their personal possessions as well as their
businesses. (auto, other business, house, savings)

B. Burden of sole responsibility – must

have business sense.

C. Difficult of raising capital.

D. Short life span – depends on owner’s health
and competence. If the owner dies, it is over.
 PARTNERSHIP
“What if the needed amount to start your dream sari-sari
store is PHP50,000 and you only have PHP25,000 cash
savings. You ask Juan, your friend if he is willing to invest his
PHP25,000 and become part owner of the sari-sari store.
Assuming he agrees, what form of business organization
was created?”
 PARTNERSHIP
• According to the Partnership Code of the Philippines, a
partnership is a contract whereby two or more persons
bind themselves to contribute money, property, or
industry to a common fund, with the intention of dividing
the profits among themselves. Two or more persons may
also form a partnership for the exercise of a profession.
 ❖ PARTNERSHIP
❖ Partnerships are registered with the SEC. BIR
registration and local business permits are also
required.

❖ Profits are divided among partners based on their

agreed sharing.

❖ The owner is called a partner.

 PARTNERSHIP
From this definition of partnership given by the law, we
can take note of the following:
1. Two or more persons are needed to form a
partnership.
2. Money is not the only resource that a person can
contribute in a partnership. Property refers to other
assets owned by a person. Examples are land,
building, vehicles, etc. Industry refers to the skills
and expertise of a person.
 PARTNERSHIP

3. A partnership must be established for the purpose of

obtaining profit. If an organization is created for
purposes other than the generation of profit (e.g.,
charitable institutions, public hospitals), it cannot take
the form of a partnership.
4. Partnerships are the common form of business
organizations used by companies who generate
profits by the practice of a profession (e.g., law firms,
auditing firms).
 PARTNERSHIP

Partnership agreement
✔ The definition provided by the law states that a
partnership is a contract. Contracts are perfected
through oral or written agreement. Thus, a
partnership can be formed orally or in written form.
However, to protect the interests of all partners, it is
ideal to form a partnership in a written contract.
 PARTNERSHIP
✔ This written contract is called the articles of partnership, and
it contains the following:
1. Name of the partnership
2. Location of the principal office of the partnership
3. The names, citizenship, and residence of the partners
4. Term for which the partnership is to exist
5. The purposes for which the partnership is formed
6. Original capital contributions of the partners
7. Profit and loss sharing agreement among the partners
 Partnership - business
operated by 2 or more people.
Advantages of Partnerships
[“Two heads are better than one.”]

Two Heads better than One Head

A. Sharing of losses. Can borrow more and can sustain
heavier losses.
B. Easier to create than a corporation

C. Shared decision making – more informed decisions.

D. Larger pool of human capital than sole
proprietorships
 Disadvantages of Partnerships

A. Disagreements among partners –

conflicts delay decisions, lower employee
morale, & lessen efficiency. Each partner
is responsible for the acts of all other
partners. Must choose good partners.
Take That!
B. Have to share the profits.

C. Unlimited liability – can lose their

business and personal possessions.

D. Limited life – sickness, conflicts,

or death can end the partnership.
 LIMITED LIFE
✔ The life of a partnership can be easily ended through
partnership dissolution or liquidation. Partnership dissolution
occurs when one of the partners withdraws from the
partnership or if a new partner is admitted. Dissolution
occurs when there is a change in the relationship among the
partners. Dissolution of a partnership does not necessarily
mean that the partnership will cease to exist. Withdrawal and
admission of partners are normal occurrences in a
partnership, and they only lead to the formation of a new
partnership. Partnership liquidation, on the other hand, ends
the operations of the partnership
 CORPORATION
❖ A corporation is a business organized as a separate legal
entity (artificial person) under the corporation law with
ownership divided into transferable shares of stocks.

❖ Emphasize that it is the law (Corporation Code of the

Philippines) that creates a corporation.

❖ The corporation begins its existence from the date the

Articles of Incorporation is approved by the Securities
and Exchange Commission (SEC).
 CORPORATION
❖ The owners are called stockholders or shareholders.

❖ Managed and owned by up to 5 – 15 owners

❖ Registered to SEC and BIR

❖ Local Business Permit also required.

❖
 Corporations – a business organization
recognized as a separate legal entity (existence).
Stockholders – are the owners of a corporation who invest
by buying shares.

Stock – the certificate of ownership.

Corporations can operate like a sole proprietor. Inc. means

the business is a corporation. [Treated by the courts as an
“artificial person”. They can sue, be sued, enter into
contracts,
and pay taxes.
If a company had only 200 shares
and you bought a share, you would
own 1/200th of the company.
 Advantages of Corporations
1. Limited liability – limited to the amount invested. His
personal assets may not be seized to pay corporate debts.
2. May earn a profit without working.
3. Large pool of human capital
the best management available. Specialized talent can be
hired in all areas.
4. Easy to raise capital – can issue stocks or sell bonds
allowing the corporation to tap the savings of thousands.
5. Longevity – they have a life independent of their owners.
6. Transferable ownership rights
 General Features of a Corporation
Dividends. The corporation is not required to distribute to
stockholders the income it generated from operations. The
stockholders of a corporation will only be entitled to receive a share
of the income once the board of directors approves the distribution.
The income distributed to stockholders is called dividends.
Dividends may be in the form of cash, stock, or property. Cash
dividends are distribution of income in the form of cash. It is
normally stated as a nominal amount of per share of stock.
Even though the approval of the board of directors is necessary before
income can be distributed, dividends are given to the stockholders
on a regular basis to keep them happy. If stockholders do not
regularly receive dividends, they tend to become dissatisfied and
sell their stocks.
 Disadvantages of a
Corporation
1. Slow in decision making – must go thru chain of
command.
2. Many government restrictions – must follow regulations of the
SEC, comply with laws on merging and maintain many records.
3. Heavy organizing expenses
4. Double taxation
5. Difficult to form
Advantages/Disadvantages of Sole Proprietorships
Disadvantag
Advantages
es
Unlimited
Freedom Liability
Ease of Lack of
Formation Continuity
Difficulty
Low Start-up
Costs
Raising
Money
Single Taxation Reliance On
One Person

Advantages/Disadvantages of Partnership
Disadvantag
Advantages
es
Unlimited
Larger Talent Pool
Liability
Larger Money Lack of
Pool Continuity
Ownership
Ease of Formation Transfer Difficult

Possibility of
Conflict
 Advantages/Disadvantages of Corporations

Advantages Disadvantages
Limited Liability Stockholder
Revolts
Continuity
Greater likelihood of High Start-up cost
professional
Management High Cost of
Regulation
Easier Access to Money
Double
Taxation
Technology + Entrepreneurship
=
Technopreneurship
The application is the process of the
process of
of scientific creating
knowledge for creating
practical something something
new with
purposes, innovative or value.
especially in new applying
industry:
"computer the scientific
technology"; knowledge for
"recycling practical
technologies".
purpose
TECHNOPRENUERSHIP
Who is Technopreneur?
Are entrepreneurs who are into the
core businesses involving
technology-based industries.

They make use of technology to come

out with new or innovative products
through a process of
commercialization.
TECHNOPRENUERSHIP
Who is Technopreneur?
The businesses are generally marked with
high growth potential and high leverage of
knowledge and intellectual property.

Potential technopreneurs must be

equipped with both technical and business
skills.
Example: Job Steve of Apple Inc.
William Henry Gates of Microsaft

TECHNOPRENUERSHIP
Technopreneur
A technoprenuer is an entrepreneur who is technology
savvy, creative, innovative, dynamic, dares to be
different and take the unexplored path, and very
passionate about their work. They take challenges and
strive to lead their life with greater success. They don’t
fear to fail. They take failure as a learning experience, a
stimulator to look things differently and stride for next
challenge. Technoprenuers continuously go through an
organic process of continual improvement and always
try to redefine the dynamic digital economy.
Source: http://www.rajeshshakya.com/what-is-technopreneurship.htm

TECHNOPRENUERSHIP
Jerry Yang. Co-founder of Yahoo!

Kevin Rose. Founder of Digg.com. Dropped out of college

during his second year.

Larry Ellison. Billionaire co-founder of Oracle software

company. Dropped out of two different colleges.

Michael Dell. Billionaire founder of Dell Computers,

which started out of his college dorm room. Dropped out
of college.

Shawn Fanning. Developer of Napster. Dropped out of

college at the age of 19.

TECHNOPRENUERSHIP
Steve Wozniak. Co-founder of Apple, billionaire.

Steve Jobs. After attending one semester of college, Steve

Jobs worked for Atari before co-founding Apple Computers.
Now without the “Computers” in their name, Apple includes
innovative products such as the iPod, iTunes, and most
recently the iPhone. Steve Jobs was also the CEO and
co-founder of Pixar before it merged with Walt Disney

Bill Gates. Ranked as the world’s richest person from

1995-2006, Bill Gates was a college drop out. He started the
largest computer software company, Microsoft Corporation.
Gates and his wife are philanthropists, starting The Bill &
Melinda Gates Foundation with a focus on global health and
learning.

Theodore Waitt. Billionaire founder of Gateway Computers.

Dropped out of college to start Gateway – one semester
before graduating.

Tom Anderson. Co-founder and “friend” of MySpace.

TECHNOPRENUERSHIP
Dropped out of high school.
SO YOU WANT TO BE A TECHNOPRENEUR?

◼ Yes? No?

What is Technopreneurship?
• Technology + Entrepreneurship ?

What is a Technopreneur?
• Describing an entrepreneur who uses cutting-
edge technology to develop new business models
-Mankani, D.
DEFINITION OF A TECHNOPRENEUR

“Someone who uses technology to do something new

or invents new devices & then makes a business from
selling these new things”

-anonymous-
 ENTREPRENEURSHIP

Characteristics of an Entrepreneur

1. Decisive
2. Communicator
3. Leader
4. Opportunity seeker
5. Proactive
6. Risk Taker
7. Innovative

6-56
 ENTREPRENEURSHIP

Characteristics of an Entrepreneur

8. Confidence
9. Accountability
10. Resilience
11. Humility

6-57
TECHNOPRENEURSHIP

◼ Who are Technopreneurs?

◼ Technology entrepreneurs who develop an enterprise or business venture based on
innovative technological products or services.

◼ What is Technopreneurship?
◼ It is a socio-economic phenomenon which supports new economic growth in the k-based
economy.
◼ Technopreneur Development Division, MSC.
THANK
YOU