1. What is small business? Define it in two approaches?

Small business is characterized as an exclusive enterprise, association, or sole

ownership that has fewer representatives and less yearly income than a company or standard
estimated business. These businesses are obviously fit to work on a limited scale to serve a
neighborhood local area and to give benefits to the organization proprietors.
Small businesses define in two approaches wherein the market share and total assets.
Under the market share approach,a small business might be characterized as one which is
autonomously possessed and worked and which isn't predominant in its field of activity. It also
shows up as a business figure after to looking into promoting plans and surveying the
achievable market share. This kind of approach is owned by a private person. A small
business also defined as total assets because starting a small business it is important to
understand how sizes must be your operation and your capital and also the numbers of
employers you must have. Under the Republic Act No. 6977 or shall know the “Magna Carta
for small enterprises” it is an act to promote, develop and assist small enterprises that
concerned with the development of business by the total assets, and by that you will get the
idea what are things you must consider when starting a business. The total assets must have
P1.5 million to 15 million to call it a small business.

2. What are the types of small business? Give examples?

In building a small business it is important that we know what kind of small business
it is.
TYPES OF SMALL BUSINESS
A. Manufacturing business - is any business that utilizes segments, parts, or raw materials
to make a completed product. This completed merchandise can be sold straightforwardly to
shoppers or other assembling organizations that utilization them for making a different item.
The manufacturing process involves talented work.
Examples:
 Shoe Manufacturing - You can make shoes from a wide range of materials. Zero in on a
couple of styles of shoe and you can likely make a sequential construction system
interaction to support creation.
 Cosmetics Manufacturing - Cosmetics is another item that you can possibly make from a
wide range of provisions.
 Candle Manufacturing - In case you're keen on making less solid food things, you could
make your own sweets items and bundle them available to be purchased.
 Jewelry Maker - Jewelry is another famous item that you can produce at home or in a little
studio.
 Clothing Production - In case you're ready to sew your own pieces of clothing, you can
deliver your own attire lines to offer to shoppers or discount to local stores.
 Drug Manufacturer - Despite the fact that the drug business is unequivocally managed, it
is conceivable to fabricate medication and supplement items to sell.
 Bakeries - You can begin your own bread fabricating business and sell bread items to
shoppers or other food organizations.
B. Small Service Business - are those that offer types of assistance somehow.
The small service business classified into the following:
1. Business Services - are alluded to as the exercises that help business yet doesn't
convey an unmistakable item and offer assistance. It utilized by the business ventures in
directing the exercises of the business.
Examples:
 Banking
 Collecting agencies
 Security service firms
 Accounting firms
 Janitorial firms
2. Personal Services - The objective of the business is to offer an individual assistance
straightforwardly to clients, like lawful exhortation or clinical treatment.
Examples:
 Social assistance
 Consulting
 Massage parlors
 Tutoring services
 Voice lessons
3. Repair Services - Is to do whatever is important to make a non-working watch keep
precise time. Repair is the demonstration of fixing or the condition fixed.
Examples:
 Watch Repairs
 Computer Repairs
 Plumbing Services
 Auto repair shops
 Restoration of Manholes
 Restoration of water supply
 Replacement of blown fuses
 Removing chokage of drainage pipes
4. Entertainment and Recreation - Entertainment and recreation are important for
everyone. Arts of the human experience, entertainment , and recreation area incorporates
 a wide scope of foundations that work offices or offer types of assistance to meet shifted
social diversion, and sporting interests of their benefactors.
Examples:
 Basketball Court
 Volleyball COurt
 Gyms
 Cinema
5. Hotels and Motels
6. Education Services - Is area includes foundations that give guidance and preparing in a
wide assortment of subjects.
Examples:
 University Schools
 Montessori Schools
C. Wholesaling - Alludes to the exercises of people or foundations which offer to retailers
and different shippers, and additionally to mechanical, institutional, and business client,
however, who don't sell in enormous adds up to the conclusive buyer.
Examples:
 Clothing wholesalers who sell to retailers
 Restaurant food suppliers
D. Retailing - covers all exercises engaged with the offer of merchandise or potentially
administrations to the last customers. The majority of retailing exercises are performed by
small businesses.
Examples:
 Fast food shops
 Jewelry stores
 Bookstores
 Cosmetics and Skincare
E. General Construction firms - are those occupied with development structures whether for
private people or firms, or the public authority.
Example:
 Subcontracting occupations for the greater project workers like introducing sewerage

3. Advantages and Disadvantages of operating a small business

ADVANTAGES:
 You have dependency - Being an entrepreneur implies you will work for yourself. You will
settle on the choices that will place your business where it can develop. Nobody can keep
you down except if you permit them to do as such. You will be accountable for whatever
achievement you figure out how to accomplish because you have total oversight over the
cycle.
 There is more professional stability - At the point when you own an independent venture,
you're in control. Nobody will be ready to fire you. The lone way you lose your
employment is if your business doesn't turn into a triumph. Try sincerely and there's an
opportunity you may find that achievement.
 You will follow your passion - Being a business owner you will seek after what you are
passionate about. If you are in a situation to employ others, you can discover similar
individuals who share your enthusiasm. No exhausting days are sitting tight for you here.
 It provides roots - Implies settling down into an area or local area. It implies becoming
more acquainted with individuals. This makes a feeling of having a place. You are in a
situation to help other people. That is a remunerating experience all alone.
 It tends to be a cash producer - Possessing a small business makes more pay potential.
Contrasted with customary work, possessing an independent company makes more
opportunities to accomplish a bonus.
DISADVANTAGES
 There are hard choices to make - At the point when you own a business, numerous
companions may tag along, asking you for a job. You may have to turn them down. You
may have to fire somebody with the full arrangement that you're placing their family into a
monetarily dangerous circumstance. Claiming a business is extreme.Troublesome
choices are sitting tight for you and you must make them.
 It is a monetary danger
 You can be helpless against interruptions
 You will be working longer hours - You may set your timetable as an entrepreneur,
however that will, in general, be for lone things in the day.
 You can stall out managing the commonplace - At the point when you own a small
business, you're stuck managing everything particularly in case you're the lone worker. If
you need charges done, you do them or recruit a bookkeeper to do it for you. The
subtleties of maintaining a business are altogether different from the quest for what you
are enthusiastic about.