This document discusses small businesses. It defines small businesses based on factors like total assets, number of employees, and independence from larger companies in their field. Small businesses are classified into categories like manufacturing, services, wholesaling, retailing, and construction. Characteristics of small businesses include independent management by the owner, small capital requirements, and mostly local operations. The economic importance of small businesses is that they provide opportunities for entrepreneurs, products/services for consumers and other businesses, employment, and support for the government. However, risks of small business ownership include uncertainty of income, risk of losing capital, lower initial quality of life, complete responsibility, undesirable customers, paperwork, long hours, and demanding work conditions.

2. Those with large
amounts of
capital
Those with small
amounts of
capital
Few
Large
Few
Many
People and their
Financial Capacity
Number of Persons Possible Engagement
in Entrepreneurship

3. WHAT IS A SMALL BUSINESS???

4. MARKET SHARE
APPROACH
One which is independently owned
and operated and which is not
dominant in its field of operation.
TOTAL ASSETS
One having total assets that fall
within a certain bracket.

5. KIND OF BUSINESS
ACCORDING TO SIZE
PUBLIC
ENTERPRISES
PRIVATE
ENTERPRISES
MICRO
BUSINESS
COTTAGE
BUSINESS
SMALL
BUSINESS
MEDIUM
BUSINESS
LARGE
BUSINESS

6. TYPES OF SMALL BUSINESS

7. MANUFACTURING
One involved in the conversion of raw materials
into products needed by society.

8. SERVICE
1. Business Services
2. Personal Services
3. Repair Services
4. Entertainment and Recreation
5. Hotels and Motels
6. Education Services

9. WHOLESALING
Refers to the activities of a
persons or establishments
which sell to retailers and other
merchant, and/or industrial,
institutional and commercial
users

10. RETAILING
Covers all activities
involved in the sale of
goods and/or services to
the final customer.

11. GENERALCONSTRUCTION FIRMS
Are those engaged in
the construction of
buildings whether for
private individuals or
firms or for the
government.

12. CHARACTERICTIC OF SMALL BUSINESS

13. 1. Independent Management
- the owner is also the manager.
2. Small Capital Requirement
- small business requires only small capital
and this can be supplied by a single or a few
individuals
3. Mostly Local Operation
- small business usually operates in a certain
locality although there are cases when the
market is not confined to a local area.

14. ECONOMIC IMPORTANCE OF SMALL BUSINESS

15. ENTREPRENEUR’S IMPORTANT ROLE
IN THE DEVELOPMENT OF ECONOMY
1. Providers of economic opportunities for entrepreneurs
2. Providers of products and services to consumers
3. Suppliers of products and services to other business
4. Distributors of products and services to the other business
5. Supporters of government
6. Providers of employment

17. 1.Uncertainty of income

18. 2. Risk of losing entire capital investment

19. 3. Lower quality of life
until the business gets established

20. 4. Complete responsibility

21. 5. Having to serve undesirable customers

22. 6. Paperwork and other chores

23. 7. Long hours and demanding work condition