12

ENTREPRENEURSHIP
Quarter 1- Module 3:
Developing a Business Plan

Source: Tashatuvango, Multicolor Concept - Business Plan on Dark Brick Wall, Free Royalty, www.colourbox.com

1
ENTREPRENEURSHIP
Quarter 1- Module 3: Developing a Business Plan

Republic Act 8293, section 176 states that: No copyright shall subsist in any work of the
Government of the Philippines. However, prior approval of the government agency or office
wherein the work is created shall be necessary for exploitation of such work for profit. Such
agency or office may, among other things, impose as a condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names, trademarks,
etc.) included in this book are owned by their respective copyright holders. Every effort has
been exerted to locate and seek permission to use these materials from their respective
copyright owners. The publisher and authors do not represent nor claim ownership over them.

Regional Director: Gilbert T. Sadsad

Assistant Regional Director: Jessie L. Amin

Development Team of the Module

Writers: ZOTECA R. TENORIA

Editors: LEONARDO V. HERNANDEZ, MT1/ JOVELYN A. FLORECE, TIII
Reviewers: DR. NIXON SA. OLFINDO, EPS / DARCY GUY Y. MAÑEBO, EPS
Illustrator: ZOTECA R. TENORIA
Layout Artist: ZOTECA R. TENORIA

2
Entrepreneurship – Grade 12
Quarter 1: Module 3: Developing a Business Plan

I. INTRODUCTION

This module discusses the entrepreneurial activities that must be undertaken

immediately prior to the opening of the small business and during the business operation.
The entrepreneur will now embark on a simple writing project, data gathering, and
recording of business transactions. The business plan is prepared using a scientific
approach in determining possible business situations considering the different
perspectives of people who are interested in the business.

II. OBJECTIVES

At the end of this lesson, the learners should be able to:

Learning Competency: Recognize a Potential Market (TLE_ICTAN11/12PC-la-1)

• Define business plan;

• Identify the major parts of the business plan;
• Discuss the importance of the business plan; and
• Make a sample of Introduction, Executive Summary and Marketing Plan.

3
 III. VOCABULARY

For your better understanding of the lesson, here is the list of words and their
meanings. Read and understand them carefully.

1. Feasibility Study. It is the forerunner of the business plan; it is made to determine

whether the proposed business is feasible or not in all areas. If the outcome of the
feasibility study is positive, then the entrepreneur prepares the business plan.

2. Test of Possibility. The new business idea should have positive results, so the test of
feasibility or variability can be conducted. Two major tests are done conducted every time
a new business idea is created, namely the test of possibility and the test of feasibility.

3. Introduction. Presents the general perspective of the business.

4. Executive Summary. It is the next major part of the business plan after the
introduction; it provides a summary of the different major sections of the business plan.

5. Environmental Analysis. It is a strategic tool that helps determines the external and
internal factors affecting the performance of the business.

6. Business Description. It presents the nature and form of the business to be undertaken,
and may cover two to three pages.

7. Organizational Plan. It provides a detailed description of the business in terms of the

form of the business organization, liability of the owner/s, organizational structure, roles
and responsibilities and salary requirements.

IV. PRE TEST

TRUE OR FALSE
Directions: Read each sentence carefully. On the blank provided, write TRUE if the
statement is correct and FALSE if otherwise. Write your answers in your notebook.
_________1. Business Plan is a detailed and integrated written document that describes the
various activities involved in opening and operating business.
_________2. After the preparation of the business plan, the entrepreneur prepares the
feasibility study of the business.
_________3. In Dehydrated form of Business Plan, Marketing Plan comes before the
Executive Summary.
.________ 4. One of the major parts or sections of the business plan is the marketing plan.

4
_________5. One of the sections in the introduction of the business plan is the address of
business.

V. LEARNING ACTIVITIES

PRACTICE ACTIVITY 1

INSTRUCTION

You will design a tower using only paper and tape. Your task is to build a tower as tall
as you can. Follow the steps on the activity sheet and answer the following questions.
Write your answers in your notebook.

EXAMPLE:
:

Source: Julie Woodall, “A DAY IN THE LIFE OF MISS KISER: Paper Tower Challenge!”, Structures,
https://www.tes.com/lessons/oMEOSPFCKfx50Q/structures

Source: Angela Snyder , “Paper Tower”, Mrs. Miller's Physics Olympics, June 10, 2015, https://physics-
olympics.weebly.com/ideas

5
 PAPER TOWER CHALLENGE

Step 1: Make a plan: In the box below sketch out some ideas of how you wanted to
construct your paper tower.

Step 2: Begin building your paper tower.

Step 3: Answer the following questions:

1. What was the height of your paper tower after your structure was completed?

______________________________________________________________________

2. What methods did you use in planning your paper tower?

______________________________________________________________________

3. In your own opinion, is planning important in this activity? Why or why not?

______________________________________________________________________

______________________________________________________________________

4. What were some changes you made to your plan?

______________________________________________________________________

______________________________________________________________________

5. What risks or challenges did you encounter in making your paper tower?

______________________________________________________________________

____________________________________________________________________________

6. How will you define business plan?

______________________________________________________________________
6
 PRACTICE ACTIVITY 2

JUMBLED WORDS

DIRECTION:: Re-arrange the jumbled letters to make one meaningful terminology

related to the previous activity. Write your answer on the given spaces below and copy
it in your notebook

1.

D D D A T H E R E Y

A N P L

2.

E V E H MI O S R C N P E

N A L P

7
 PRACTICE ACTIVITY 3

4PICS 1 WORD

DIRECTION: Formulate a word that best describes the four pictures. Write your
answer on the given spaces below and copy it in your notebook
1.

Source: John99cz, “Fee Vehicle Royalty Payment Toy Food Cart”, March 27, 2019, https://favpng.com/png_view/juice-
spot-fee-vehicle-royalty-payment-toy-food-cart-png/hFb2km3A
Source: mayura_ben, “PH peso second best currency in Asia”, Bilyonaryo, January 2020,
https://bilyonaryo.com.ph/2020/01/02/ph-peso-second-best-currency-in-asia/
Source: slena, “Half price save, promotional sale labels set.”, Nov 2, 2012, https://depositphotos.com/14211110/stock-
illustration-promotional-sale-labels.html
Source: Kevin Coss, “New MN-IP Option Offers Royalty-Free Licensing, Free Royalty January 28, 2016,
https://research.umn.edu

8
2.

Source: Marrishuanna, Business planner icon vector image, Free Royalty, www.vectorstock.com
Source: studiogstock, Strategic planning design vector image, Free Royalty, www.vectorstock.com
Source: IvelinRadkov, Vision Strategy Execution Success Business Concept stock photo, Free Royalty,
www.istockphoto.com
Source: Ivelin, Hand writing Objectives to do list with marker isolated on white, Free Royalty, https://depositphotos.com

9
 READ AND
LEARN

Business Plan

It is the road map of the new business and of the entrepreneur. It is a detailed and
integrated written document that describes the various activities involved in opening and
operating the business. In this module, however, the concept of business plan preparation is
more applicable to a small business that the learner is expected to open as the final major
requirement of the course in entrepreneurship.

However, there is a written document that

TEACHER’S must be prepared and is of equal important as
NOTE the business plan

The Feasibility Study

- it is the forerunner of the business

plan
- its main objective is to determine
whether the proposed business is
feasible or not in all areas
- If a feasibility study gets positive
result, the entrepreneur prepares the
business plan

MAJOR PARTS OF THE BUSINESS PLAN

Though there is no universally accepted standard format or structure of the business

plan, this adopts the following format for the major parts of the business plan:

1. Introduction 6. Production plan

2. Executive Summary 7. Operation plan

3. Environmental analysis 10 8. Marketing plan

4. Business description 9. Financial plan

5. Organizational plan 10. Appendix

 DID YOU
KNOW?

Did you know that there are two types of business plan?

Source: Maria Teresita R. Rentoy, MS MaEd, “PPT for Entrepreneurship, October 10, 2017

The Comprehensive Business Plan Format

I. Introduction I. Introduction
II. Executive Summary II. Executive Summary

III. Environmental III. Business Proponents

Analysis IV. The Target
IV. Business Customers
Description V. The Market
V. Organizational Plan VI. The Product
VI. Production Plan VII. The Enterprise
Strategy
VII. Operational Plan
VIII. Financial Forecasts
VIII. Marketing Plan
IX. Environmental and
IX. Financial Plan Regulatory
X Appendix Compliance

2
Source: Maria Teresita R. Rentoy, MS MaEd, “PPT for Entrepreneurship, October 10, 2017

In senior high school, business plan made

easier. We used the dehydrated plan.

A Simplified Business Plan (by: Camposano) –

based from discussion from MTOT in Legazpi,
Albay.

BUSINESS PLAN (made simple) FORMAT

1. Introduction
2. Executive Summary
3. Marketing Plan
4. Organization and Management
5. Financial Plan
6. Appendix

LECTURE

Why make a Business Plan?

 Guide throughout the business process

 Convince prospective investors
 Convey capabilities and competencies of owners/managers
 Written for higher level of growth
 For navigational purposes (entrepreneur)
11
 Financing purposes (investors/financiers)
  Mechanics purposes (managers and staff)
 The business plan is valuable to the entrepreneur, potential investors, or even
new personnel, who are trying to familiarize themselves with the venture, it
goals, and objectives.
 It helps determine the viability of the venture in a designated market.
 It provides guidance to the entrepreneur in organizing his or her planning
activities.
 It serves as an important tool in helping to obtain financing.

Who should write the plan?

• The business plan should be prepared by the entrepreneur.

• The entrepreneur may consult with many other sources in its preparation, such
as lawyers, accountants, marketing consultants, and engineers.

Who Reads The Plans?

• The business plan may be read by employees, investors, bankers, venture

capitalists, suppliers, customers, advisors, and consultants.
• There are three perspectives that should be considered in preparing the plan :
– Entrepreneur’s perspective
– Marketing perspective
– Investor’s perspective

13
Let us focus on Dehydrated Plan format of Business Plan.

1. INTRODUCTION

It is written in paragraph form stating salient details about the business. The
introduction presents the general perspective of the business. It may consist of one to
two pages. It includes, among others, the following sections

1.Proposed name of the business

2. Address of the business

3. Name of the owner or owners

4. Description of the business

5. Location of the business

6. Funding requirement and source

2. EXECUTIVE SUMMARY

Although executive summary is commonly the last section to be written after

all other major parts have been completed, it is the next major part of the business
plan after the introduction. It points out the overall highlights of the business plan as
well as a bird’s-eye view of its sections. However, the executive summary must not,
in any manner, provide a summary of the different major sections of the business
plan. It must be written in simple language that can be easily understood and at the
same time attract the attention and influence the decision of the reader.

14
 3. MARKETING PLAN

It describes the user benefits of the product or service and the type of market
that exists. The marketing plan details how the proposed business will sell its product
to the target consumers. It may consist of some or all of the following important
sections

Source: sosiukin, “MARKETING MIX word written on wood

block. “,https://stock.adobe.com/sk/search/images?k=marketing+mix&asset_id=335207380

MARKETING MIX
7P’S
PRODUCT PLACE PRICE PROMOTION PEOPLE PACKAGING POSITIONING

15
Refers to Refers to -List Refers to the Refers to Refers to the Refers to the
the tangible the place price mode of individual process of place occupied
or where the - conveying the employees putting the by the product in
intangible target Discounts presence and or workers product in a the minds of the
service consumers -Allo- attributes of who are package or consumers.
offered by are. wances the products to directly container.
the -Payment the target involved in
business to period consumers. the
the target -Credit production,
consumers. Terms marketing
and sale of
the product
or service.
Nick L. Aduana(2016).Entrepreneurship in Philippines Setting for Senior High School.QuezonCity.C&E Publishing Inc.

VI. PRACTICE TASKS

Show that you have learned something by doing these activities.

PRACTICE TASK 1

INSTRUCTION

Prepare the introduction section of your business plan. The cover page of your final output will
appear as follows:

Write and encode your answer in long bond paper, Times New Roman-font syle, 12-font size,
1-all sides margins, 1.15-line spacing.

NAME OF YOUR BUSINESS

A Business Plan presented to

NAME OF SCHOOL

ADDRESS OF SCHOOL

In Partial Fulfilment of the Requirements

16
for the Subject Entrepreneurship

of
Use the guide for the format of the introduction section of your business plan.

INTRODUCTION

This section of the business plan presents the description of the business, its location
and the total funding requirements and the possible funding source.

Description of the business

Location of the Business

Funding Requirement and Source of Funds

17
 PRACTICE TASK 2

INSTRUCTION

Prepare the executive summary of your business plan. Use the example below as a guide. Write
and encode your answer in long bond paper, Times New Roman-font syle, 12-font size, 1-all
sides margins, 1.15-line spacing.

EXECUTIVE SUMMARY

This section of the business plan presents the fundamental characteristics, nature,
philosophical values, identity and image of the business. These important concerns are
embodied in the vision, mission and objectives.

VISION AND MISSION

OBJECTIVES

Funding Requirement and Source of Funds

18
 PRACTICE TASK 3

INSTRUCTION

Prepare the marketing plan of your business plan. Use the example below as a guide. Write and
encode your answer in long bond paper, Times New Roman-font syle, 12-font size, 1-all sides
margins, 1.15-line spacing.

MARKETING PLAN

This section contains the following factors of the marketing mix: product, place, price,
promotion, people, packaging and positioning.

PRODUCT

PLACE

PRICE

PROMOTION

PEOPLE

PACKAGING

POSITIONING

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 VII. POST TEST

II. Multiple Choices

INSTRUCTION
Read and understand the following questions. Select the best answer from the given
choices and write your answers in your notebook.

_________1. What is referred to as a detailed and integrated written document that describes
the various activities involved in opening and operating business?
a. Accounting b. Bookkeeping c. Business Plan d. Feasibility Study

_________2. Which of the following is the forerunner of the business plan?

a. Accounting b. Bookkeeping c. Business Plan d. Feasibility Study

_________3. What part of the business plan contains the salient details about the business?
a. Appendix b. Executive Summary c. Introduction d. Marketing Plan

_________4. In Dehydrated form of Business Plan, which of the following comes before the
Financial Plan?
a. Appendix b. Executive Summary c. Introduction d. Marketing Plan

_________ 5. What part of the business plan describes the user benefits of the product or
service and the type of market that exists?
a. Appendix b. Executive Summary c. Introduction d. Marketing Plan
__________6. What part of the business plan contains the vision, mission and objectives?
a. Appendix b. Executive Summary c. Introduction d. Marketing Plan

_________ _7. What is referred to as the unique selling proposition and the third part of the
business plan?
a. Appendix b. Executive Summary c. Financial Plan d. Marketing Plan

_________ _8. Which is NOT one of the purposes why business plan is made?
a. Potential Investors b. Your Bank
c. Your Competitors d. Your Managers

__________9 .Which of the following is the purpose of a business plan?

a. It describes the backgrounds and experiences of people who will run the
business
b. It explains your idea for a product or service
c. It sets specific objectives and describes how they will be achieved
d. All of the above

_________ 10. Which of the following is NOT important in business planning?

a. It can serve as a tool for managing your business
b. It guarantee the success of the business
c. It will help you get financing for your business
d. To communicate your ideas with stakeholder

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 VIII. ASSIGNMENT

ACTIVITY “My Own Business”

SCORE:
NAME

SUBJECT SECTION
TEACHER DATE
INSTRUCTIONS What one particular business do you want to put up? Why you wanted to
start up this kind of business?

The kind of business I want to start-up is… Because…

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 Scoring Rubrics for “My Own Business”

Components 5 4 3 2 1
Organizatio Essay is Essay is Essay is Essay needs Essay does
n and well- organized and slightly to improve in not appear to
Content organized shows a organized terms of have a good
and shows a comprehensiv and shows a organization. organization
thorough and e basic Shows a at all. Shows
thoughtful understanding understandin limited a little
understandin of the lesson. g of the understandin understandin
g of the lesson g of the g of the
lesson. lesson lesson
Grammar, Essay does Essay has at Essay has at Essay has Essay has
Usage and not contain least 2 least 3 poor serious
Mechanics any spelling, spelling and spelling, spelling, spelling,
punctuation punctuation punctuation punctuation punctuations
and errors with and and and
grammatical minor grammatical grammatical grammatical
errors. grammatical errors errors errors
errors

IX. ANSWER KEY

PRE TEST:

1. True

2. False

3. False
POST TEST:
4. True
1. C 6. B
5. True
2. D 7. D

3. C 8. C

4. D 9. D

5. D 10. B

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 PRACTICE ACTIVITY 1

POSSIBLE ANSWERS

1). 2 FT.

2).The methods that we used in our paper tower are strategic thinking and decision
making.

3). Yes, because planning is to find an optimal solution or to develop and create
paper tower as high as I can.

4) The changes that I made in paper tower challenge is decision making, while I am
doing the activity, I encounter some problems and I find a solution to this to become
successful.

5).The risks that I encounter in paper tower challenge is the wrong decisions that I
made, I experience trial and error because of this wrong decisions that I chose.

6. Business Plan is a detailed and integrated written document that describes the
various activities involved in opening and operating business.

PRACTICE ACTIVITY 2

1. DEHYDRATED PLAN

2. COMPREHENSIVE PLAN

PRACTICE ACTIVITY 3

1. BUSINESS

2. PLAN

23
 PRACTICE TASK 1- EXAMPLE OUTPUT OF STUDENTS

COVER PAGE

STARmazing

A Business Plan presented to

Jose Panganiban National High School

Jose Panganiban, Camarines Norte

In Partial Fulfilment of the Requirements for the Subject Entrepreneurship

of

GRADE 12 STEM

Gin Jhoniel A. Prudenciado

Kate Clarisse C. Panambo

Jammille C. Elnar

Dale Marie T. Mahusay

Ericson O. Forbes

Emma May R. Acuña

Emman R. Blazado

Ronna E. Pontillas

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I. INTRODUCTION

Averrhoa Carambola and Averrhoa Bilimbi are locally known as balimbing and
kamias, respectively. These fruits are very abundant in the tropical countries,
particularly here in the Philippines. Most Filipino people do not even mind of these
fruits, it seems to be normal for them and just let it be rotten on the tree and fall onto
the ground. Little did they know that there is something especial with these fruits.
Maybe, a question is now pondering in your mind: What could be especial with
balimbing and kamias?Balimbing and kamias could be the greatest companion of the
parents, students, laundrymen. You will know it to the following statements.

People nowadays are exposed on many different activities and sort of

businesses. Some children spend much time in playing and cannot avoid being messy
and getting dirty. Parents, specifically the mothers get stressed of washing their
children's clothes. Most especially when their clothes have rust or stains. It is so time
consuming and makes washing laundry harder. Sometimes, these rust and stains cannot
be removed easily, and sadly, it remains at the clothes forever.

Some teens on the other hand are the ones who wash their laundry, specifically,
the students. They wash their uniforms because they have to wear it regularly at
school. It is a problem to them when it has been stained by inks, etc., and had rust also.

If you are one of those who have problems in washing their laundry because of rust
and stains, you are so lucky. Lucky you because you don't have to be problematic on it
anymore. As said, balimbing and kamias will be your greatest companion in terms of
these problems.

The said fruits contain oxalic acid. This oxalic acid has the capability of
removing rusts and stains. If you find it hard to have these fruits, you can now avail an
efficient product made of it in a very affordable price. The product, STARmazing has
the main ingredient of balimbing and kamias. Meaning to say, it is a natural product
and just by spraying it to the stained clothes, it will be removed in just a couple of
time.

The group came up to make a product which is a stain remover as inspired by

students who do the laundry by their own. Having hard time removing rust and stains
could be avoided now.

25
 Meanwhile, they chose the brand name STARmazing because of the main
ingredient, balimbing, which is also known as star fruit. STARmazing is a proven and
tested product, you can fully rely your trust with it, unlike him/her who just not ruined
your trust but also broken your heart. Do now waste any time, let yourself shine again,
show the real you through this missing piece of your life. STARmazing is here, ready
to ease your dreadful sufferings in the unending pile of laundry day by day.

PRACTICE TASK 2- EXAMPLE OUTPUT OF STUDENTS

II EXECUTIVE SUMMARY

VISION

As Science, Technology, Engineering, and Mathematics students, we dream of

a product that could be an effective stain remover that would ease washing uniforms
or clothes of students, teachers and stakeholders. Also, we aim to establish a standard
product and achieve a wide spread for our products on the locale and even
international.

MISSION

 To produce a good quality and safe stain remover product that is favorable to
compete with other leading products.
 To help people lessen stain problems on clothes, etc.
 To promote an effective stain remover product
 Provide a product with scientific conditions

OBJECTIVES

 To remove stains from fabric especially rusts and inks

 To preserve the quality of the fabric
 To produce a product with affordable price but effective stain remover
 To promote star fruit and calamansi as an effective stain remover

26
 PRACTICE TASK 3- EXAMPLE OUTPUT OF STUDENTS

III MARKETING PLAN

Product: STARmazing (Stain remover)

A. PRODUCT DESCRIPTION

STARmazing is a naturally made stain remover that will surely solve your
laundry stain problems and will satisfy you with the result. With its natural ingredients, it
is safe to use as your stain remover plus you can bring and use this all the time since it's
not that hard to carry and is affordable.

B. IMPORTANCE OF THE PRODUCT

Many homes try to remove stains using harsh chemicals like bleach that can
irritate and burn skin and can cure eye irritation. STARmazing is designed to help
eliminate stains and grease from food, oils and drinks by just spraying it. This product is
a natural stain remover that has the main ingredient of kamias and balimbing which is
less harmful than chemical, more efficient, very affordable, and is safer.

STARmazing is ready to help you fight stains and grease with minimal effort to
get your clothes looking good as new again without stains and spots.

C. PACKAGING, LABELING AND BRANDING

The packaging is a spray bottle ordered in an online shop. It is an easy

package to carry on anywhere. Note that this product has label to have the following
ingredients: calamansi, balimbing, kamias, and baking soda. For inquiries, the contact is
also posted. Just contact Gin JhonielPrudenciado in the number 09056683296 and via
email on [email protected].

Price: Php 30.00 per bottle

Promotion: To promote our business, we decided to advertise our product

through our commercial and posting on social media sites like Facebook. Also,
by giving flyers to target customers that show the effectiveness of our product
because it was already proven and tested.

27
ADVERTISING AND PROMOTION

First, flyers will be distributed to introduce and disseminate the product

information. Then, a short commercial will be made to present a brief description of the
solution, the preparation and the actual processes of stain removal is different.

Since today’s generation adheres to the internet, the team shall see to it that their
output which is stain remover is properly advertised in more appealing and convincing
way through this medium. The group will use this platform as their main instrument to
give background knowledge and in describing the appearance of the product. Rest
assured that the group will be responsible enough to every information and posts to be
uploaded.

SALES STRATEGY

In dealing with the promotion of the product, a free trial will be given for the
potential buyers for them to know how effective the product is. Another way is by giving
and providing the first ten (10) customers with the sample of the product for free. A 10%
discount will also be given for the other set of one hundred (100) lucky customers. The
team will reach out to the small markets here in Jose Panganiban where there are
numerous number of people. Lastly, an assurance that best-selling strategies and
techniques will be given to attract more target users.

Place: Jose Panganiban National High School

Jose Panganiban, Camarines Norte

28
 SCORING RUBRICS FOR BUSINESS PLAN

CATEGORY 5 4 3 0 SCORE
TITLE PAGE Title page Missing 1 of Missing 2 No title
includes your the elements of the page
name elements
company logo
and company
name
INTRODUCTION Introduction Missing 1 of Missing 2 No
includes name the section of the Introduction
of the section
business,
address of the
business,
name of the
owner,
description of
the business,
location of the
business.
EXECUTIVE Executive Executive Executive No
SUMMARY summary summary summary Executive
summarizes doesn’t does not Summary
each section summarize summarize
of the business a section 2 or more
plan. completely sections of
Executive or is less the business
summary is 1- than 1 page plan
2 pages
MARKETING Describes in Description Only types No
PLAN detail the price is lacking or of marketing
of the description advertising plan is
product/servic of are given. given.
e as well as promotional
how the mix is not
product/servic complete.
e will be
promoted. A
complete
promotional
mix is given.
TOTAL

29
References:

1. Eunice MAreth Q. Areola, Janine P. Sigagaoat,Edward D.

Gonzales(2017).Entrepreneurship.Manila Philippines: JFS Publishing Services.
2. Nick L. Aduana(2016).Entrepreneurship in Philippines Setting for Senior High
School.QuezonCity.C&E Publishing Inc.
3. Angeles A. De Guzman, DBA,CPA(2018). Entrepreneurship for Senior High School
Applied Subject, ABM Strand.MetroManila.LorimarPublishing,Inc.

30