Chapter 2 Flashcards
runs a business using traditional methods
Businessman
prefer stable and tested business
Businessman
follows existing model
Businessman
profit-driven
Businessman
innovates and creates new business opportunities
Entrepreneur
open to high-risk ventures like startups
Entrepreneur
uses digital tools to disrupt markets
Entrepreneur
growth and impact driven
Entrepreneur
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
APPLIED THEORIES IN ENTREPRENEURSHIP
SCHUMPETER’S INNOVATION THEORY
OPPORTUNITY RECOGNITION THEORY
LEAN STARTUP METHODOLOGY
which states that
entrepreneurs drive economic growth by introducing
innovations that disrupt existing markets and create new
opportunities.
SCHUMPETER’S INNOVATION THEORY
an Austrian economist, introduced the
Innovation Theory of Entrepreneurship
Joseph Schumpeter
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.
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.
OPPORTUNITY RECOGNITION THEORY
Saw the need for cashless transactions and
created fintech solutions for Filipinos
GCash & PayMaya
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
The Lean Startup Methodology, introduced by
Eric Ries
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
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.
- Online Marketplace
Popular
marketplaces where businesses and individuals sell various
products.
Lazada & Shopee
a business that customizes and
prints products like T-shirts, mugs, phone cases only after receiving
an order.
- 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
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
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 Sole Proprietors
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) – For
Corporations & Partnerships
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 BIR and get a
Certificate of Registration. Online sellers must issue Official
Receipts and Sales Invoices to customers
Bureau of Internal Revenue (BIR) – Tax Registration
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)
