ENTREP PREFI

HANDOUT 1

🌟 Overview

Because of what’s happening in today’s world — like COVID-19, the rise of online shopping (e-commerce), and digitalization — companies need to keep innovating to survive.
Innovation shouldn’t just come from top management — everyone in the organization should take part in creating new ideas.

This process of creating and improving ideas is called ideation.
It helps businesses come up with new products, services, or solutions that add value and keep them competitive.

Example:

• During the pandemic, many businesses started selling online instead of relying on physical stores.

• Companies that quickly adapted survived and even grew.

💡 Elements of Generating Ideas

1. Personal Skill Set

   • Look at your own skills and see which can become a business idea.

   • Example: If you’re good at cooking, you can create a new food recipe or start a small food business.

2. Current Events

   • Pay attention to what’s happening in the world.

   • Example: During lockdowns, many people started selling online — this created new opportunities for small entrepreneurs.

3. Invention

   • Find a problem people have, even a small one, and think of a solution.

   • Example: A TV company noticed people kept losing their remote controls, so they added a “remote finder” button on their TVs.

4. Product Improvement

   • Make an existing product better by adding new features or combining it with something else.

   • Examples:

     • Water refilling stations offering free delivery

     • Ariel + Downy in one detergent product

🤝 Customer-Centric Innovation

To make sure ideas focus on the needs and experiences of customers, four helpful methods can be used during ideation:

1. Brainstorming

   • A group activity to generate as many ideas as possible.

   • Key points:

     • Quantity = quality — more ideas lead to better solutions.

     • No judging — don’t criticize ideas while brainstorming.

     • Encourage bold ideas — creative or crazy ones may lead to innovation.

     • Combine and improve ideas — teamwork can make ideas even better.

2. Co-Creation Workshop

   • A group session that includes different people or experts working together to create or improve ideas.

   • Useful when:

     • You have a lot of data to analyze, or

     • You’re stuck and need new perspectives.

3. Menu of Ideas

   • A way to visually display all the ideas generated (like a menu).

   • Helps everyone see the options and make better decisions.

   • Also helps record and organize the project’s progress.

4. Decision Matrix

   • A tool to evaluate and compare ideas.

   • Ideas are listed, grouped, and scored based on how well they meet certain criteria (like cost, usefulness, or customer satisfaction).

   • Helps teams decide which ideas are most practical or valuable.

🧭 In Simple Terms

Ideation = Creative teamwork to find or improve ideas
It starts by using what you know, what’s happening around you, and what people need.
Then, through brainstorming and collaboration, you turn those ideas into innovations that make products and services better for customers.

HANDOUT 2

🌟 What is Design Thinking?

Design Thinking (DT) is a creative way of solving problems — it’s all about understanding people’s needs and finding innovative solutions that actually work for them.

It’s used to develop many modern innovations like wireless headphones, virtual reality, and AI.

Design Thinking focuses on empathy, creativity, experimentation, and continuous improvement — meaning you try ideas, test them, learn from feedback, and improve them again.
This process repeats (that’s why it’s called iterative).

👉 It combines logic and creativity, business and art, and structure and freedom — helping teams find the “sweet spot” between what people want and what the business can deliver.

💡 Advantages of Design Thinking

• Keeps the focus on humans and their needs.

• Balances creativity (thinking outside the box) and logic (practicality).

• Encourages learning by doing, where failure is part of learning.

• Promotes team collaboration and communication.

🧠 The 5 Phases of Design Thinking

Phase 1: Understanding and Empathy

This stage is about understanding people’s feelings, needs, and experiences.
Empathy helps designers see the world from the user’s point of view.

How to Empathize:

1. Observe – Watch how people behave and interact in their real environment.

2. Engage – Talk to them through interviews or casual conversations to learn their thoughts and feelings.

3. Watch and Listen – Ask them to show how they do something and explain their thought process.

Why it’s important:
It gives new insights and helps discover what users really need, not just what they say they need.

Phase 2: Defining the Problem

After understanding users, the next step is to define the real problem based on what you learned.

This phase turns all your observations into a clear and focused problem statement or point of view (POV) — combining:

• The User (who needs help)

• The Need (what they need)

• The Insight (why that need exists)

Why it matters:
Defining the right problem helps you come up with more meaningful and effective solutions.

Phase 3: Brainstorming Solutions (Ideate)

This stage is about coming up with as many ideas as possible — no limits, no judgment.

Benefits:

• Pushes beyond obvious or safe ideas.

• Combines different perspectives from the team.

• Encourages creativity and innovation.

How to Brainstorm:

• Build on each other’s ideas.

• Don’t judge ideas too early — focus on quantity first.

• Use tools like mind mapping, sketching, or prototyping to visualize ideas.

Phase 4: Prototyping

A prototype is a simple, early version of your idea — something you can touch, test, or show.
It helps you see what works and what doesn’t before spending too much time or money.

Benefits:

• Helps identify problems early.

• Makes it easier to communicate ideas.

• Saves resources by testing small first.

• Encourages creativity and fast learning.

How to Prototype:

• Start building even if it’s rough — use paper, tape, or basic materials.

• Don’t get too attached to one idea.

• Focus on testing one aspect at a time.

• Always keep the user in mind.

Phase 5: Testing the Solution

Now it’s time to test your prototype with real users to see how they react and what can be improved.

Benefits:

• Helps refine your product or service.

• Reveals how users truly think and behave.

• Sometimes uncovers that the original problem needs redefinition.

How to Test:

• Let users try your prototype (don’t explain too much).

• Observe how they interact and listen to their feedback.

• Try multiple prototypes so users can compare and reveal preferences.

• Test in real-life settings whenever possible.

Rule of thumb:
👉 Prototype as if you’re right, but test as if you’re wrong.
Testing is where you learn, improve, and grow.

🎯 In Simple Terms

Design Thinking is a step-by-step creative process used to understand people, define problems, and create innovative solutions that truly help them.

It’s about:

1. Empathizing with users

2. Defining their problems

3. Generating ideas

4. Building prototypes

5. Testing to improve

It’s a cycle of learning, trying, and improving — putting humans at the center of every decision.

HANDOUT 3

Entrepreneurship and the Philippine Labor Law (Simplified Explanation)

The Philippine Labor Code is a law that protects both employers and employees. It sets rules for how people should be hired, paid, treated, and kept safe at work. It also explains the rights, benefits, and responsibilities of both workers and business owners.

For entrepreneurs, following labor laws helps avoid legal problems and builds a fair, safe, and productive workplace.

⚙ 1. Pre-Employment

Before hiring, the Department of Labor and Employment (DOLE) oversees programs that help people find jobs and move where work is available.

Here are some important terms:

• Worker – Anyone who is part of the labor force (employed or unemployed).

• Recruitment and placement – The process of hiring or helping people find jobs.

• Private employment agency – A company that recruits workers and charges a fee.

• License – Permission from DOLE to run a recruitment agency.

• Private recruitment entity – Recruits workers but doesn’t charge fees.

• Authority – DOLE’s approval to recruit workers.

• Seaman – A person working on a ship.

• Overseas employment – Work outside the Philippines.

• Emigrant – A Filipino who moves abroad for long-term or permanent work.

👩‍💼 2. Types of Employment

There are 6 main types of employment in the Philippines:

1. Regular – Full-time and permanent employees.

2. Probationary – On a 6-month trial before becoming regular.

3. Fixed-term – Hired for a specific period or project.

4. Seasonal – Works only during certain seasons (e.g., harvest time).

5. Project-based – Hired for one project only.

6. Casual – Does non-regular tasks; may become regular after one year.

💰 3. Compensation and Benefits

Compensation is the money employees earn for their work (shown in payroll).

• Gross pay – The total salary before deductions (like SSS or taxes).

• Wage – Payment based on hours, days, or pieces of work done.

• Salary – Fixed monthly or yearly pay.

Benefits include:

• Dependents and beneficiaries – Family members who can receive benefits if something happens to the worker.

• Injury, sickness, death, and disability – Covered under compensation laws.

• Medical benefits – Cover hospital and rehabilitation costs.

💸 4. Wages

• The minimum wage differs per region and is decided by DOLE’s Regional Wage Boards.

• Wages must be paid in cash (legal tender), not coupons or tokens.

• Employees must be paid at least twice a month, with no more than 16 days apart.

Standard payroll deductions include:

• SSS – Social protection for private workers.

• GSIS – Social protection for government workers.

• PhilHealth – Health insurance for employees.

• Pag-IBIG – Housing and savings program.

⏰ 5. Conditions of Employment

These are the rules about work hours, breaks, and pay:

• Normal hours – Up to 8 hours per day.

• Meal break – At least 1 hour.

• Night shift pay – Extra 10% for work between 10 PM and 6 AM.

• Overtime pay – Regular rate + 25% (or +30% if on a rest day/holiday).

• Rest day – 1 day off after 6 straight days of work.

• Holiday pay – Full pay even if the employee doesn’t work (for regular holidays).

• Service incentive leave – 5 paid leave days per year after 1 year of service.

• Service charges (for hotels, restaurants, etc.) – 85% goes to employees; 15% to management.

🧑‍🦽 6. Handicapped Workers

People with disabilities can be hired as long as:

• They earn at least 75% of the minimum wage.

• There’s a written employment agreement reviewed by DOLE.
  This ensures equal opportunity without unfair competition or exploitation.

🏥 7. Occupational Health and Safety

Employers must ensure that workplaces are safe and hazard-free.
DOLE sets and checks safety standards to prevent accidents and illnesses.

Employers pay inspection fees (for equipment and facilities), which fund DOLE’s safety programs.

🩺 8. Medical and Dental Services

Depending on the number of employees, companies must provide:

• Over 50 workers – A registered nurse or first-aider.

• Over 200 workers – A nurse, part-time doctor, and dentist.

• Over 300 workers – Full-time doctor, dentist, nurse, and an infirmary/clinic.

This ensures workers have access to medical care while on duty.

⚖ 9. Disability and Death Benefits

If a worker gets injured, sick, or dies due to work, they or their family receive benefits from SSS:

• Temporary total disability – 90% of daily salary for up to 120 days.

• Permanent total disability – Monthly income benefit (plus 10% per child, up to 5).

• Permanent partial disability – Payment depends on which body part was lost or impaired (e.g., hand – 39 months).

• Death benefits – Given to dependents for at least 5 years, or a minimum of ₱15,000 if there are no primary beneficiaries.

💡 In Short

The Philippine Labor Code protects both workers and business owners.
For entrepreneurs, understanding and following these laws ensures:

• Fair treatment of employees,

• Legal protection for the business, and

• A healthy, productive workplace.

In short — a successful business is one that values and protects its workers
Post-Employment (After You Leave or Lose a Job)

When you are regularly employed, your employer can’t just fire you without a valid reason. If you’re removed from your job without a fair cause, you have the right to get your job back (reinstatement) and be paid for the time you were not working (back pay).

Reasons Why an Employer Can Fire an Employee (Just Causes):

An employer may legally terminate your employment if you:

• Misbehave seriously or disobey lawful work orders.

• Neglect your duties repeatedly.

• Lie or betray your employer’s trust (fraud).

• Commit a crime against your employer or their family.

• Or for other similar serious offenses.

Company Reasons for Termination (Authorized Causes):

A company may also end your job for business reasons like:

• Installing machines or technology that replaces workers.

• Redundancy — your position is no longer needed.

• Retrenchment — the company needs to cut costs to prevent losses.

• Closure — the business is shutting down.

If this happens, the employer must:

• Give a written notice at least 1 month before.

• Provide separation pay:

  • 1 month pay or 1 month per year of service (whichever is higher) for redundancy or use of labor-saving devices.

  • 1 month or ½ month pay per year of service (whichever is higher) for retrenchment or closure (not due to serious losses).

If the Employee Decides to Resign:

You can resign by giving your employer a written notice at least 30 days before leaving.
If you don’t give notice, you might have to pay damages.

However, you can resign immediately (no notice needed) if:

• Your employer insults or mistreats you.

• You experience inhuman or unbearable treatment.

• Your employer commits a crime against you or your family.

• Other similar serious reasons.

Retirement from Work:

When you reach the retirement age (usually between 60 and 65), you can retire.

• If your company has a retirement plan, you will receive the benefits stated there.

• If there’s no plan, you will get ½ month’s pay for every year you worked (a period of 6 months counts as one full year).

Note: Small businesses (like those with 10 or fewer workers) are not required to follow this rule.