Professional Documents
Culture Documents
Lit Rev Outline
Lit Rev Outline
Lit Rev Outline
Introduction
below P 3,000,000 and employs less than 10 workers. (V.Abrugar, 2013). Some of the
baking, coconut wine making and café business. It is part of the Micro, Small and
This study that the researcher have been investigating is important on our
economy. MSMEs serves as the backbone of the Philippine economy. According to NSO
(2008), there are 761,000 registered enterprises with 91.6% as microbusinesses. MSMEs
contributed 35.7% of the total sales and census value-added in the manufacturing
industry. Small businesses have more impact on Filipinos’ lives than larger businesses. It
gives job opportunities to about thirty percent (30 %) of the poor in the Philippines. (E.
Angara, 2012).
II. Body/Theme
Microbusinesses not only impact the livelihood of owners, they also lead to better
outcomes for their families, local communities, and entire regions, as well as the national
economy. Microbusinesses can provide opportunities for many individuals in society, but
they are of particular value; both actual and potential. (“AEO”, 2013, p. 15).
Ruane (2007) argued that like those in other countries, Small- scale businesses in
Data show Filipino SMEs to make up more than 99% of all businesses in the country, pro
vide more than two-
thirds of the country's employment, and is responsible for almost one-third of the country'
s income (Philippine Department of Trade and Industry, 2003).
innovation and development of new products. (E. Santos, 2012). With their dynamic and
productive characteristics, they are seen as crucial for the country’s growth and brings job
Many small businesses can easily adapt and respond to the changing economic
climates and it is because they are often customer-oriented. Most of their customers will
remain loyal to them even in the middle of an economic crisis. Small businesses also
acquire less revenue than corporations, meaning they may have less to suffer during an
economic crisis.
III. Conclusion
It can therefore be conclude that microbusiness can be a vital factor not only in
the economy of the Philippines but also around the world. It has a direct impact on the
production process to form a product or good. Generally, raw materials like coconut,
wood and iron come from natural resources. It plays a major role in the production
Determining the effect of raw materials can help the business on how to cope up with
its unpredictable changes. Fluctuations in the price level of raw materials impacts the
success of a business. It can make the business profitable or unprofitable. The price
changes of raw materials can affect the economy since businesses contribute to the
huge challenge for management accounting. If the raw material prices increase or
business. It can make the business profitable or unprofitable. The business may change
their raw materials and it can affect the sales revenue. (J. Riley, 2009). Immediate fall of
commodity costs can increase profits but these profits can easily disappear when the
prices suddenly increase. (D. Ruther, 2012). The cost of raw materials stays as the top
overall priority of the manufacturers, 51 percent as their first priority according to a
III. Conclusion
accounting, which are supplying information for internal decision makers, facilitating
their decision making, motivating their actions and behavior in a given direction and
promoting efficiency of the organization. Immediate fall of raw materials costs can
increase profits but can disappear easily when the costs suddenly increase.