module

2. THE NATURE OF SMALL
BUSINESS
•BUSINESS SIZE IS ONE FACTOR THAT
DOES NOT PREVENT ONE FROM
ENGAGING IN ENTREPRENEURSHIP.

3. •SINCE ONLY A SMALL NUMBER OF PEOPLE HAS
LARGE CAPITAL ENOUGH TO START A LARGE
ENTERPRISE, THE BIGGER THE NUMBER OF
PEOPLE WITH MINIMAL RESOURCES ARE FORCED
TO OPERATE ON A SMALL-SCALE BASIS, IF THEY
DECIDE ON BECOMING ENTREPRENEURS.

4. Those with
large
amounts of
capital
Those with
small
amounts of
capital
People & Their
Financial Capacity
Number of
Persons
Possible Engagement in
Entrepreneurship
few
large
few
many
FINANCIAL CAPACITY & SIZE OF BUSINESS

5. WHAT IS A SMALL BUSINESS?
•DEFINED AS AN ORGANIZED EFFORT OF
INDIVIDUALS TO PRODUCE AND SELL GOODS AND
SERVICES IN ORDER TO SATISFY THE NEEDS OF
THE SOCIETY.
•PROFIT – THE PRIMARY OBJECTIVE OF BUSINESS

6. •MICRO BUSINESS – THE VERY SMALL BUSINESS
WHERE THE OWNER IS THE PRINCIPAL WORKER,
AND HE EMPLOYS ONE OR MORE ASSISTANTS.
(VERY SMALL BUSINESS)
•BIGGER SMALL BUSINESS – WHERE THE OWNER
MAINLY DIRECTS THE WORK OF THE
EMPLOYEES.

7. KINDS OF BUSINESS
ACCORDING TO SIZE
Private enterprises
Public enterprises
Micro business Small business Medium
business
Example: Land Bank of
the Philippines
Kinds of Business According to Size

9. THE MAGNA CARTA FOR SMALL
ENTERPRISES (R.A. 6977)
-Indicates that the firm must have
total assets valued at above P1.5
million to P15 million to be
considered a small business

10. BASED ON THE NUMBER OF EMPLOYEES:
MICRO: 1 - 9 EMPLOYEES
SMALL: 10 - 99 EMPLOYEES
MEDIUM: 100 - 199 EMPLOYEES
LARGE: MORE THAN 200 EMPLOYEES

11. TYPES OF MICRO, SMALL AND
MEDIUM ENTERPRISE
•MICROBUSINESS - IS A TYPE OF SMALL BUSINESS, OFTEN
UNREGISTERED, HAVING FIVE OR FEWER EMPLOYEES
EXAMPLES:
Balut/Penoy Pedling Notarial Services Carwash
Banana, Camote and
Turon stand
Cellphone accessories Sari sari store
Barbeque stand T.V, electric fan repair Tinapa, tuyo, daing stand
Newspaper stand Vulcanizing shop Scrap buy and sell

12. SMALL AND MEDIUM BUSINESS ENTERPRISE - IS A TYPE OF BUSINESS
HAVING AN EMPLOYEES OF 10-199 AND REQUIRING SEED CAPITAL OF
NOT MORE THAN 100 MILLION.
TYPES OF SMBE:
1. MANUFACTURING – INVOLVED IN THE CONVERSION OF RAW
MATERIALS INTO PRODUCTS NEEDED BY SOCIETY.
EX. BAKERIES
RESTAURANTS
TRICYCLE SIDECAR ASSEMBLY SHOPS

13. 2. SERVICE BUSINESS – PROVIDING VARIOUS TYPES OF
LABOR SERVICES IN A WIDE VARIETY OF BUSINESS SECTORS.
TYPES OF SERVICE BUSINESS:
A. BUSINESS SERVICE – THOSE THAT PROVIDE SERVICES TO
OTHER BUSINESSES.
EX. ACCOUNTING FIRMS, JANITORIAL SERVICES, SECURITY
SERVICE/SECURITY AGENCY, PRINTING PRESS
B. PERSONAL SERVICE – THOSE THAT PROVIDE SERVICE TO THE
PERSON.
EX. TUTORIAL, MASSAGE PARLOR, SPA, BEAUTY PARLOR, VOICE
LESSON, SCHOOL BUS, SKIN CLINIC, DENTAL CLINIC, MEDICAL
SERVICES, FUNERAL PARLOR, FLOWER ARRANGEMENT

14. C. REPAIR SERVICES – PROVIDE REPAIR SERVICES TO OWNER OF VARIOUS MACHINERY
AND APPLIANCES.
EX. AUTO REPAIR, WATCH REPAIR, PLUMBING SERVICES, AIRCON REPAIR
D. ENTERTAINMENT AND RECREATION – MOVIE HOUSES, ARCADE GAMES, INTERNET
CAFE, RESORTS, BILLIARD, TALENT RECRUITMENT AGENCY,
E. HOSPITALITY – HOTELS, MOTELS, EVENT PLANNING, CATERING, TRAVEL AND TOUR
F. EDUCATION SERVICES – PRE SCHOOL, GRADE SCHOOL, HIGH SCHOOL, COLLEGES

15. 3. WHOLESALING – REFERS TO THE ACTIVITIES OF PERSONS OR
ESTABLISHMENTS WHICH SELL TO RETAILER AND OTHER
MERCHANTS, AND/OR TO INDUSTRIAL, INSTITUTIONAL, AND
COMMERCIAL USERS, BUT WHO DO NOT SELL IN LARGE AMOUNTS
TO FINAL CONSUMERS.
EXAMPLE: SOFTDRINKS WHOLESALERS IN LOCAL AREAS,
DEALERS OF SUPPLIES AND OFFICE EQUIPMENT

16. 4. RETAILING
- COVERS ALL ACTIVITIES INVOLVED IN THE SALE OF GOODS
AND/OR SERVICES TO THE FINAL CONSUMERS.
EXAMPLE: RETAIL DRUGSTORE, FAST FOOD SHOPS, APPLIANCE
STORES

17. 5. GENERAL CONSTRUCTION
FIRMS
THOSE ENGAGED IN THE
CONSTRUCTION OF BUILDINGS
WHETHER FOR PRIVATE INDIVIDUAL
FIRMS, OR FOR THE GOVERNMENT.