ENTREPRENEURSHIP 4.
Register With The Bureau of Internal
- Entrepreneurship
• Is the act of creating a business or businesses
while bearing all the risks with the hope of
making a profit.
- Entrepreneur
• A person who organizes, manages, and
assumes responsibility for a business or other
enterprise; a businessman.
- Enterprise
• A for-profit business started and run by an
entrepreneur.
Characteristics of an Entrepreneur
1. Risk taker
2. Opportunity hunter
3. Profit maker
4. Innovator
HOW TO ESTABLISH A SMALL (SOLE
PROPRIETORSHIP) BUSINESS
1. Register your business name at the
Department of Trade and Industry (DTI)
- Make sure to search the DTI website to see if
there are any businesses in existence that
have a name similar to yours. If the business
name that you want is available, fill out a
business name application form, and submit
it to DTI’s office. You must wait for your
DTI certificate of registration before you
move onto the next step of opening your own
sole proprietor business.
2. Register with Barangay
- Once you have received your certificate of
registration from the DTI, it’s time to go to
the Barangay where your business is located
to fill out an application. In addition to your
application, you will need to submit your DTI
Certificate of Business Registration, two
valid IDs, and a proof of residence. Wait and
claim your Barangay Certificate of Business
Registration.
3. Register your sole proprietor business with
the Mayor’s Office (LGU)
- The next step, after receiving your Barangay
certificate of business registration, is
registering your business at the municipal
office in the city where your business is
located. You will need to fill out an
application, as well as submit your Certificate
of Business Registration from the DTI, your
Barangay Clearance Certificate, two valid
forms of ID, and proof of residency.
Revenue (BIR)
- After you receive your certificates and
permits from DTI and LGU, it’s time to
register your sole proprietor business with the
BIR. To do this, you will need to visit your
regional district office in the city where your
business is located. You will be required to
fill out a BIR form 1901, which is an
application to register your sole
proprietorship. In addition to your completed
BIR form 1901, you will need to submit your
Certificate of Registration from DTI, your
Barangay Clearance Certificate, your
Mayor’s Business Permit, proof of residency,
and valid ID. You will also have to pay for
registration, (BIR Form 0605), and register
your book of accounts and provide any
receipts or invoices you have for the business.
After all of this has been completed, you will
be able to claim your certificate of
registration, (BIR form 2303).
SOLE PROPRIETORSHIP
- Sole Proprietorship
• It is the most basic type of business
organization in the Philippines. It can be
established by just one person, referred to as
a sole proprietor. Essentially, your business
in a sole proprietorship is an extension of
yourself, so the assets and liabilities of your
business are also your own assets and
liabilities. With a sole proprietorship, the
business and the owner are considered as one
taxpayer in the Philippines, so they would
share a single TIN. Registration for a sole
proprietorship is done at the Department of
Trade and Industry (DTI).
ADVANTAGE DISADVANTAGE
Easy to establish and Owner receives all
low organizational losses (Since solo niya
cost (madaling itayo, lahat ng tubo, solo niya
mas mura, mas di rin lahat ng lugi)
komplikado)
Owner receives all Limited capital and
profits (solo ng may-ari financing (Wala
yung tubo) gaanong investors, pera
mo lang gagamitin
mong capital)
Income taxed as Less effective decision-
personal income of the making (Wala kang
owner (Iisa lang tax ng katulong sa decisions
business at ng owner since mag-isa ka)
 unlike sa corporation na
2 times mag tatax)
Independence (Sariling CORPORATION
desisyon ng owner, - Corporations
wala nang makiki-epal) • A corporation is a business that is owned by
Ease of dissolution multiple people, a minimum of 15 people in
(Madaling itigil ng the Philippines. Each co-owner is called a
owner kapag ayaw niya shareholder, and their identities are separate
na) from that of the business. A shareholder
should be able to contribute at least ₱5,000 to
PARTNERSHIP the capital. Their responsibilities would
- Partnership depend on their contribution. Like
• Partnerships are formed between two (or partnerships, corporations are registered at
more) people who agree to own a business the SEC.
together. They are generally expected to Example of corporations in the Philippines: SM,
invest money, property, and industry in the San Miguel Corporation, Ayala, PLDT, Globe,
business together and divide the profits Jollibee, etc.
between all the parties involved. The two ADVANTAGE DISADVANTAGE
types of partnerships are general and limited Can achieve large size Double taxation
partnerships. General partnerships require all due to marketability (Nagtatax yung kita ng
co-owners to be responsible for all of the of stocks (yung stocks corporation at nag tatax
company’s assets and liabilities. In limited pwede siyang iopen sa din yung owners, unlike
partnerships, each partner is only responsible public kaya maraming sa sole at partnership na
depending on the amount of capital they pwedeng mag-invest isahan na lang)
contribute. For partnerships in the kaya mas lalaki yung
Philippines, you register with the Securities kompanya)
and Exchange Commission (SEC). Shareholders have More expensive and
ADVANTAGE DISADVANTAGE limited/low complex to form (dahil
Low organizational Profit is shared responsibility (since malakihang business na
cost (gaya lang sa sole (Kailangan pang marami nang siya, kailangan ng mas
proprietorship) paghatian ng mag- shareholders(owners), malaking capital at mas
business partners yung hindi na sosolohin yung mahirap din buohin
tubo. responsibilidad ng
Responsibilities are Potential conflicts isang tao kapag nalugi
shared between between partners yung company di gaya
partners (Hindi mo na (pwedeng magkaron ng sa sole)
solo yung responsibility away, Better financing (since Subject to more
in case na malugi unlike misunderstanding, etc. maraming pwedeng government
sa sole) sa pagitan ng business mag-invest, regulation (mas
partners. magkakaron ka ng maraming requirements
Better and more madaming investors, na kailangan regarding
expertise and more investors = more sa legal matters, at mas
managerial skill are puhunan) maluwag yung
available (May gobyerno sa sole at
katulong ka na unlike sa partnership kaysa rito sa
sole na mag-isa) corporation)
Better financing (May Longer life (mas
kahati ka na sa ilalabas tumatagal yung
na puhunan kasi may corporation kaysa sole
business partners na) or partnership)
Income taxed as
personal income of
partners (gaya lang sa
sole)
 IMPORTANCE OF ENTREPRENEURSHIP
- Provides Employment
• Entrepreneurship generates employment. It
provides an entry-level job, required for
gaining experience and training for unskilled
workers.

- Innovation
• It is the hub of innovation that provides new
product ventures, market, technology and
quality of goods, etc., and increase the
standard of living of people.

- Contributes to Society and Community

Development
• A society becomes greater if the employment
base is large and diversified. It brings about
changes in society and promotes facilities
like higher expenditure on education, better
sanitation, fewer slums, a higher level of
homeownership. Therefore, entrepreneurship
assists the organization towards a more stable
and high quality of community life.

- Increase Standard of Living

• Entrepreneurship helps to improve the
standard of living of a person by increasing
the income. The standard of living means,
increase in the consumption of various goods
and services by a household for a particular
period.