Chapter 2 Flashcards
involves using digital tools, social media, and e-commerce platforms to launch and grow businesses.
ONLINE ENTREPRENEURSHIP
It is driven by a tech-savvy youth population, growing gig economy, and increasing mobile usage.
ONLINE ENTREPRENEURSHIP
A Filipino entrepreneur and social media personality, best known as the founder and CEO of Colourette Cosmetics, a local beauty brand that promotes inclusivity, affordability, and high-quality makeup products suited for Filipina skin tones.
Nina Ellaine Dizon (Colourette Cosmetics)
Created a sustainable fashion brand empowering local artisans.
Reese Fernandez-Ruiz (Rags2Riches)
Built a retail empire and adapted to e-commerce with ShopSM.
Henry Sy (SM Group)
an Austrian economist, introduced the Innovation Theory of Entrepreneurship
Joseph Schumpeter
which states that entrepreneurs drive economic growth by introducing innovations that disrupt existing markets and create new opportunities.
SCHUMPETER’S INNOVATION THEORY
explains how entrepreneurs identify and develop business opportunities
OPPORTUNITY RECOGNITION THEORY
was a Filipino food scientist, chemist, and war hero who is best known for inventing banana ketchup and other food innovations that helped sustain Filipinos during wartime. During the American colonial period, tomatoes were scarce in the Philippines, but bananas were abundant.
Maria Orosa (1893–1945)
It suggests that opportunities exist independently or are created by entrepreneurs who recognize and act on them.
OPPORTUNITY RECOGNITION THEORY
Saw the need for cashless transactions and created fintech solutions for Filipinos.
GCash & PayMaya
The Lean Startup Methodology, introduced by
Eric Ries
is an approach to building businesses and products efficiently and effectively by minimizing risks and maximizing learning.
LEAN STARTUP METHODOLOGY
It focuses on rapid experimentation, customer feedback, and iterative development rather than spending years perfecting a product before launch.
LEAN STARTUP METHODOLOGY
Food businesses testing products through social media before investing in mass production. Lazada & Shopee started with basic online marketplaces and continuously improved based on seller and buyer feedback.
LEAN STARTUP METHODOLOGY
refers to any kind of business activity conducted over the internet.
ONLINE BUSINESS
This can include e-commerce, digital marketing, online services, and other forms of internet - based commercial activities.
ONLINE BUSINESS
TYPES OF ONLINE BUSINESS
- E-Commerce Store
- Dropshipping Business
- Online Marketplace
- Print-on-Demand Business
- Subscription-Based Business
- Affiliate Marketing
- Online Coaching & Consulting
- Digital Course & E-Learning Business
- Blogging & Content Creation
- YouTube Channel / Vlogging
- Social Media Influencing
- Freelancing & Remote Services
- Online Reselling / Buy-and-Sell
- Mobile App Development
- Software as a Service (SaaS)
an online shop that sells physical or digital products directly to consumers.
E-Commerce Store
a retail model where sellers list products online but rely on third-party suppliers for inventory and shipping.
Dropshipping Business
a platform where multiple sellers list their products for buyers to purchase. Lazada & Shopee – Popular marketplaces where businesses and individuals sell various products.
Online Marketplace
a business that customizes and prints products like T-shirts, mugs, phone cases only after receiving an order.
Print-on-Demand Business
allowing artists to sell custom-designed merchandise.
Print-on-Demand Business
a business model where customers pay a recurring fee to access products or services.
Subscription-Based Business
earning commissions by promoting other companies products through referral links or content.
Affiliate Marketing
professionals offer personalized advice, training, or coaching through virtual platforms.
Online Coaching & Consulting
A well-known Filipino coach providing online educational content and training.
Coach Lyqa Maravilla
selling educational materials, training, or courses online
Digital Course & E-Learning Business
An online learning platform where experts sell digital courses.
Nas Academy Philippines
writing blogs, creating videos, or producing digital content that earns through ads, sponsorships, or affiliate marketing.
Blogging & Content Creation
creating video content and monetizing through ads, sponsorships, and memberships
YouTube Channel / Vlogging
A famous Filipino YouTuber earning through brand deals and ads.
Cong TV
building an online following and earning through brand sponsorships, collaborations, and exclusive content.
Social Media Influencing
Partners with brands for sponsored posts.
Anne Curtis on Instagram
providing professional services like writing, graphic design, web development, and virtual assistance.
Freelancing & Remote Services
buying products at a lower price and reselling them online for profit.
Online Reselling / Buy-and-Sell
creating and selling mobile applications for various industries
Mobile App Development
A popular Filipino fintech app for digital payments.
GCash App
offering software solutions on a
subscription basis.
Software as a Service (SaaS)
A Filipino startup providing online payment solutions for businesses.
PayMongo
CHALLENGES OF ONLINE BUSINESS
High Competition
Building Customer Trust
Logistics and Delivery Issues
Digital Payment Challenges
Changing Online Trends
Cybersecurity and Data Privacy Risks
Customer Service and Returns
OPPORTUNITIES OF ONLINE BUSINESS
Low Startup Costs
Flexible Work Setup
Data-Driven Decisions
Diverse Revenue Streams
Scalability
Emerging Digital Solutions
Starting an online business in the Philippines requires compliance with government regulations, including
business registration,
tax obligations, and
data privacy laws.
For Sole Proprietors
If you are running a small online business under your name, you need to register your Business Name with the ___
Department of Trade and Industry (DTI)
Registration is valid for 5 years and can be done online via Business Name Registration System.
Department of Trade and Industry (DTI)
If you want to register a partnership or corporation, you must register with the
____.
Securities and Exchange Commission (SEC)
is required for bigger businesses, such as those seeking investors or planning to scale.
Securities and Exchange Commission (SEC)
After DTI or SEC registration, you must secure Barangay Business Clearance, Mayor’s Business Permit, and Fire Safety Inspection Certificate.
Local Government Unit (LGU) – Mayor’s Permit & Barangay Clearance
All online businesses must register with the ___ and get a Certificate of Registration.
Bureau of Internal Revenue (BIR) – Tax Registration
Online sellers must issue Official Receipts and Sales Invoices to customers.
Bureau of Internal Revenue (BIR) – Tax Registration
DATA PRIVACY AND CONSUMER PROTECTION LAW
Data Privacy Act of 2012 (RA 10173)
E-Commerce Protection Under the Consumer Act (RA 7394)
Online businesses that collect customer data (name, email, address)
must:
Secure customer information from leaks and hacking.
Not sell or misuse personal data without consent.
Follow NPC (National Privacy Commission) guidelines.
If you run an online store and collect customer addresses for delivery, you must not share this information without consent.
Data Privacy Act of 2012 (RA 10173)
Online businesses must disclose:
Business name and contact details
Product details and prices
Refund and return policies
A Facebook live seller must show the actual product price and offer a fair return policy.
E-Commerce Protection Under the Consumer Act (RA 7394)
