Lesso2

n How

Businesses
are
Created?

Directions: Read the following scenarios and

choose the appropriate business ideas
to venture into.
1

Many students need to

print different materials
for their daily projects.

There are people who

need to learn more about
using computer
application programs.

3 There are lots of products

like gadgets and clothing
that can be bought for a

HomeBased
Computer
Tutorial
Business
Buy and
Sell
Business
Printing
Business

Activity:
How do you think are the following business
born? Write the word DEMAND if you think the
business was created out of peoples need. Write
the phrase AVAILABLE RESOURCES if you
think the business was created because there are
abundant supply of resources like materials or
people
skills.
___________________
1. Call center

industries in the
Philippines like
Convergys and
Sykes.
___________________ 2. Electric Power
distributor like

Activity:
___________________ 3. Banana chips
industry.
___________________ 4. T-shirt and
Tarpaulin printing
business.
___________________ 5.
Telecommunication
s industry like
Cherry Mobile and
ABS-CBN Mobile.

How Businesses are created?

1. Based on a
Need
There is a saying that goes
Necessity is the mother of all
inventors. Many of the clever
products we enjoy today were
invented to answer certain
needs. For example, during
World War II, the dangers of
being exposed to the sun were
very high among the soldiers in
the Pacific, so the sun screen or
sun block was developed.

Another example is the invention of

the disposable diaper. Marion Donovan
was a mother who decided to improve
on the cloth diapers that were
uncomfortable for babies and used pins
as fasteners.
In 1946, Donovan designed a leakproof diaper cover from shower curtains,
and replaced the pins with metal snaps.
Her invention became the prototype for
the disposable diapers.

In
the
Philippines,
Athena
Ballesteros saw the need for an
alternative to the noisy, smokebelching jeepneys that consumed a
lot of diesel. She worked with
Solarco to design the electric
jeepney that silently and smoothly
ply some roads in Makati today.

Based on a Available
Resources
Another reason for starting

a business is
the availability of resources. This is specially
true in countries that are rich in raw materials
like Philippines.
The capiz shells are ordinary shells that
used to be abundant in Philippine coastal
communities.
Some
creative
people
discovered how these lowly shells could be
hammered flat and smoothed into translucent
decorative materials. Today, the famous capiz
shells are used to decorate windows, picture
frames, lampshades and other items that
highly prized both locally and abroad.

One of the most abundant resources in the

country is human resources. Many Filipinos are
well educated, hardworking, and easy to train.
Foreign investors saw the advantages of
putting up factories in the country and hiring
Filipinos as workers. Thus, the manufacturing
industry is born.

Summary
Businesses are created to answer a
need and cater a demand, it may
also be born based on the
availability of resources. In this
case, goods may be produced and
marketed
without
necessarily
having an existing demand.

Application
Give one example of a business idea
related to computer hardware
servicing for each basis:
- based on a need
- based on available resources.

QUIZ No.2
Directions: Write the phrase Based on a Need if the
business is created to cater a demand.
Write the phrase Based on Available
Resources if the business is created
because there is abundant supply of
resources.

1.
2.
3.
4.
5.

Shoe Production Factory

Bakery
Water Supply company
Convenience store
Herbal vitamins