Chapter 2 Flashcards
involves using
digital tools, social media, and e-
commerce platforms to launch and grow
businesses. It is driven by a tech-savvy
youth population, growing gig economy,
and increasing mobile usage.
Online entrepreneurship
(Colourette Cosmetics)
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
(Rags2Riches)
Created a sustainable fashion brand empowering local artisans
Reese Fernandez-Ruiz
(SM Group)
Built a retail empire and adapted to e-commerce with ShopSM.
Henry Sy
APPLIED THEORIES IN
ENTREPRENEURSHIP
1.)SCHUMPETER’S INNOVATION THEORY
2.)OPPORTUNITY RECOGNITION THEORY
3.)LEAN STARTUP METHODOLOGY
, an Austrian economist, introduced the Innovation
Theory of Entrepreneurship, which states that entrepreneurs drive
economic growth by introducing innovations that disrupt existing markets
and create new opportunities.
Joseph Schumpeter
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)
explains how entrepreneurs identify
and develop business opportunities. It suggests that opportunities exist
independently or are created by entrepreneurs who recognize and act on
them.
The Opportunity Recognition Theory
– Saw the need for cashless transactions and created
fintech solutions for Filipinos.
GCash & PayMaya
introduced by Eric Ries, is an approach to
building businesses and products efficiently and effectively by minimizing risks
and maximizing learning. It focuses on rapid experimentation, customer feedback,
and iterative development rather than spending years perfecting a product before
launch.
The Lean Startup Methodology
refers to any kind of
business activity conducted over the
internet
Online business
Type 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)
CHALLENGES
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
Low Startup Costs
Flexible Work Setup
Data-Driven Decisions
Diverse Revenue Streams
Scalability
Emerging Digital Solutions
For Sole Proprietors
If you are running a small online business under your name, you need to
register your Business Name with the DTI. Registration is valid for 5 years
and can be done online via Business Name Registration System.
Requirements:
At least 18 years old (or a minor with parental consent)
A unique business name
Payment of registration fees (₱200 - ₱2,000 depending on business
scope)
Department of Trade and Industry (DTI)
For
Corporations & Partnerships
If you want to register a partnership or corporation, you must register
with SEC. SEC registration is required for bigger businesses, such as
those seeking investors or planning to scale.
Securities and Exchange Commission (SEC)
– Mayor’s Permit & Barangay
Clearance
After DTI or SEC registration, you must secure Barangay Business
Clearance, Mayor
’
s Business Permit, and Fire Safety Inspection
Certificate
Local Government Unit (LGU)
Tax Registration
All online businesses must register with the BIR and get a Certificate of
Registration. Online sellers must issue Official Receipts and Sales
Invoices to customers.
Bureau of Internal Revenue (BIR)
If you run an online store and collect customer addresses for delivery, you
must not share this information without consent.
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)
A Facebook live seller must show the actual product price and offer a fair
return policy.
Online businesses must disclose:
Business name and contact details
Product details and prices
Refund and return policies
E-Commerce Protection Under the Consumer Act (RA 7394)
- 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. A
print-on-demand service in the Philippines 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. Coach Lyqa Maravilla – A well-
known Filipino coach providing online educational content and training.
Online Coaching & Consulting
- selling educational materials,
training, or courses online. Nas Academy Philippines – An online learning
platform where experts sell digital courses.
Digital Course & E-Learning Business
- writing blogs, creating videos, or
producing digital content that earns through ads, sponsorships, or affiliate
marketing.
Blogging & Content Creation
- a creating video content and
monetizing through ads, sponsorships, and memberships. Cong TV – A
famous Filipino YouTuber earning through brand deals and ads.
YouTube Channel / Vlogging
- building an online following and earning
through brand sponsorships, collaborations, and exclusive content. Anne
Curtis on Instagram – Partners with brands for sponsored posts.
Social Media Influencing
- 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. GCash App – A popular Filipino fintech app for
digital payments.
Mobile App Development
- offering software solutions on a
subscription basis. PayMongo – A Filipino startup providing online
payment solutions for businesses.
Software as a Service (SaaS)
