ENTREPRENUERSHIP

REPORT IN NSTP BY GROUP 6

WHAT IS ENTREPRENUERSHIP?
THE PROCESS OF CREATING, RUNNING, AND
GROWING A BUSINESS ENTERPRISE, EITHER BY AN
INDIVIDUAL OR A TEAM
 5 Benefits of
Entreprenuership to the
Economy
INNOVATION
JOB CREATION
ECONOMIC GROWTH
ECONOMIC OPPORTUNITY
HIGHER NATIONAL INCOME
HENRY SY
SM SUPERMALL
 SMALL
BUSINESS
SMALL BUSINESSES ARE TYPES OF CORPORATIONS,
PARTNERSHIPS, OR SOLE PROPRIETORSHIPS WHICH
HAVE A SMALL NUMBER OF EMPLOYEES AND/OR
LESS ANNUAL REVENUE THAN A REGULAR-SIZED
BUSINESS OR CORPORATION.
12 Steps on how to
establish a small
business
FIND A BUSINESS IDEA
CHOOSE A BUSINESS NAME
VALIDATE YOUR PRODUCT IDEA
WRITE YOUR BUSINESS PLAN
GET YOUR FINANCES IN ORDER
DEVELOP YOUR PRODUCT OR SERVICE
12 Steps on how to
establish a small
business
PICK A BUSINESS STRUCTURE
RESEARCH LICENSE AND GOVERNMENT
REGUATIONS
SELECT YOUR TOOLS
FIND A BUSINESS LOCATION
PLAN WORKLOAD AND TEAM SIZE
LAUNCH YOUR BUSINESS
SOLE PROPRIETORSHIP
WHAT IS SOLE
PROPRIETORSHIP?
the term ‘sole’ means single and ‘proprietorship’ means
‘ownership’. So, only
one person is the owner of the business organization.
CHARACTERISTICS OF
SOLE PROPRIETORSHIP
SINGLE OWNERSHIP
NO SEPERATION OWNERSHIP MANAGEMENT
LESS LEGAL FORMALITIES
NO SEPERATE ENTITY
NO SHARING OF PROFIT AND LOSS
UNLIMITED LIABILITY
ONE MAN CONTROL
ADVANTAGES OF
SOLE
PROPRIETORSHIP
Easy to Form and Close: It is very easy and simple to form a
sole
proprietorship form of business organization.

Quick Decision and Prompt Action: Nobody interferes in the

affairs of the
sole proprietary organization.

Direct Motivation: In sole proprietorship form of business

organizations, the
entire profit of the business goes to the owner.
 Minimal working capital required for start-up: The money
required to meet
the day to day expenses of the business is very less.

Flexibility in Operation: It is very easy to effect changes as per the

requirements of the business as decision making power lies with only one
person.

Maintenance of Business Secrets: The business secrets are known only to the
proprietor. He is not required to disclose any information to others unless and
until he himself so decides.
 Personal Touch: Since the proprietor himself handles everything relating
to
business, it is easy to maintain a good personal contact with the customers
and
employees.

Least expensive form of ownership: It is very easy and inexpensive to

register the business under sole proprietorship.
 DISADVANTAGES
OF SOLE
PROPRIETORSHIP
 LIMITED RESOURCES
LACK OF CONTINUITY
UNLIMITED LIABILITY
NOT SUITABLE FOR LARGE SCALE OPERATIONS
LIMITED MANAGERIAL EXPERTISE
LACK OF HIGH CALIBER EMPLOYEES
PARTNERSHIP
WHAT IS
PARTNERSHIP?

A partnership is a form of business

where two or more people share
ownership, as well as the
responsibility for managing the
company and the income or losses
the business generates.
HOW DID PARTNERSHIP
START?
Partnerships have a long history they were already in use in medieval
times in Europe and in the Middle East. According to a 2006 article, the
first partnership was implemented in 1383 by Francesco di Marco
Datini, a merchant of Prato and Florence.
 PURPOSE OF PARTNERSHIP

- THE PURPOSE OF PARTNERSHIP AGREEMENT (OR

PARTNERSHIP CONTRACT) IS TO ESTABLISH A
BUSINESS ENTERPRISE THROUGH A LEGALLY
BINDING CONTRACT BETWEEN TWO OR MORE
INDIVIDUALS OR OTHER LEGAL ENTITIES. THIS
PARTNERSHIP AGREEMENT DESIGNATES THE RIGHTS
AND RESPONSIBILITIES OF EACH PARTNER OR ENTITY
INVOLVED.
 Types of business
PARTNERSHIP
GENERAL PARTNERSHIP

- General partnerships are the most common

form of partnership, with all business partners
having total liability and managing the business.

LIMITED PARTNERSHIP

- In a limited partnership (LP), some partners are general

partners who are fully responsible for regular business
activity. Other partners are limited partners. They provide
capital contributions, but they’re not an active part of the
business’s day-to-day operations or decision-making.
 Types of business
PARTNERSHIP
LIMITED LIABILITYPARTNERSHIP

- LLPs are less common than general or limited

partnerships, but are more common for specialized
professional organizations, where all members are
not responsible for mistakes made by one member.
 ADVANTAGES OF PARTNERSHIP

The requirements for establishing a partnership are

considerably fewer in a partnership than in a sole
proprietor structure, specifically in drafting the Articles
of Partnership.

The start-up expenses of building a partnership

are relatively low compared to establishing a
corporation.
 DISADVANTAGES OF PARTNERSHIP

Due to the unlimited liability of partners in a General

Partnership setup, the company may put their personal
property and assets at risk. However, in a Limited
Partnership setup, some partners are held liable only up
to the amount of their capital contribution.
 PARTNERSHIP LAW

A PARTNERSHIP IS DEFINED BY THE PHILIPPINE CIVIL

CODE ARTICLE 1767 AS A CONTRACT BETWEEN TWO OR
MORE PERSONS THAT AGREE TO CONTRIBUTE MONEY,
PROPERTY, OR INDUSTRY TO A SHARED FUND TO SPLIT
THE PROFITS AMONG THEMSELVES. A PARTNERSHIP IS A
SEPARATE LEGAL ENTITY FROM THAT OF THE MEMBERS
IN THE PARTNERSHIP.
EXAMPLE OF
PARTNERSHIP

LOUIS VUITTON AND BMW NOKIA AND MICROSOFT

CORPORATION
 WHAT IS
CORPORATION?
Corporation is an artificial being created by
operation of law having the right succession and
the powers attributes and properties expressly
authorized by law or incidents to its existence.
EXAMPLE OF
CORPORATION
2 TYPES OF
CORPORATION
1. STOCK CORPORATION

corporation which have a share capital that is divided

into shares and are authorized to distribute to the
holder of such shared of dividends or allotments of
the surplus profits on the basis of the shares held.
2. NON- STOP CORPORATION
is no part of its income distributable as
dividends to its members, trustees or officers.
 Republic Act 11232, or the Act Providing for
the Revised Corporation Code of the
Philippines, was signed into law by President
Rodrigo R. Duterte on 21 February 2019. It
amends a 38-year-old Corporation Code in an
effort to improve the ease of doing business in
the Philippines.
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