Small Business very small business bigger small business Owner = principal worker Owner directs work One or more assistants called Micro business
Definition of Small Business The Magna Carta for Small Enterprises R.A. 6977 Any business activity or enterprise engaged in industry, agribusiness and/or services, whether single proprietorship, cooperative, partnership or corporation whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity’s office, plant & equipment are situated, must have value falling under the following categories;
micro cottage small medium Less than $5,000 $5,000+ to $25,000 $25,000+ to $100,000 $100,000+ to $2500,000 In terms of capitalization
micro cottage small medium Five (5) Or Less workers 6 to 9 workers 10 – 99 workers 100 – 199 workers In terms of employment size
Characteristics Small Business privately owned few or no layers of management insufficient resources to dominate its field of business
Features of a Small Business low in capital but high in labor intensity efficient in specialized skill or service succeeds in small, isolated or overlooked markets often operates in unstable markets closer to the market place owners are the workers capital comes from the owner or small group area of operation is small size of the enterprise is small in relation to the industry
Personalized relationship w/ Customers and employees Flexibility in management Government incentives Simple record keeping independence A d v a n t a g e s
The Difference Small Business Big Enterprise change births or deaths expansion or contraction risk or reward calculation done by owners employee - managers economic power little or none tremendous influence
Difficulty of raising capital Risk of failure Limited management skills Lack of opportunities for employees D i s a d v a n t a g e s
Its importance Introduce innovation !!! Provide competition Fill needs of society & big business Creates employment Revenues of local communities
Factors influencing Success or Failure business cycles government regulation access to capital interest rates inflation SUCCESS or FAILURE
Lack of experience Lack of money Poorly planned expansion Poor credit practices Mismanagement of inventory Wrong location Business Failure Why small business fail?
reach to my potentials im the BOSS service to my society money, money, money!!! Benefits and Opportunities of Owning a Business
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.