SHS

GRADE
11
ORGANIZATION AND
MANAGEMENT
QUARTER 2 – MODULE 16
The Basic Concept of Small
Family Business

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Objectives:
At the end of this module, you are expected to:
1. Explain how to start a small-family business
2. Identify the business legal form and requirement
3. Appreciated the role of small-family business in an
improving economic status

Lesson Proper
We are ruled by the ventures of entrepreneurs. All our basic
needs, appliances gadgets and equipment and other things we use or
consume daily are all products of entrepreneurial ventures. Therefore, it is
important to recognize our dependence on the innovative and creative
nature of entrepreneurs. The important role of entrepreneurs is to
continuously look into the needs and wants to society.
Entrepreneurships – innovative, creative, risk-taking, growth-oriented
behavior that brings new opportunities for individuals or organizations to
start new business and to produce new products or services that are
beneficial to society.
Entrepreneurial Ventures – organizations that persistently pursue
opportunities are characterized by creative, innovative activities that have
service, growth, and profitability as principal goals.
Small Business – a business that has fewer than 100 – 500 workers
(depending on the prevailing commercial law in a particular country),
independently owned, operated, and financed; not always entrepreneurial in
orientation and does not dominate its industry; capital is low but capable of
producing goods or rendering services designed to satisfy particular need of
customers.

What are the Entrepreneurial Procedure?

Steps in Entrepreneurial Procedure
• Formulate the business vision and mission statements
• Segment of the market
• Find the target market
• Understand the environment
• Develop the business Plan

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Business plan is a written description of your business’s future, a document
that tells what you plan to do and how you plan to do it. If you jot down a
paragraph on the back of an envelop describing your business strategy,
you’ve written a plan, or at least the germ of one. Business plans are
inherently strategic.
Business Plan
✓ Executive Summary
✓ Environmental Analyst
✓ Industry Analysis
✓ Market Analysis
✓ Company Description
✓ Marketing and Sales Activities
✓ Products and Services
✓ Operations
✓ Management and ownership
✓ Financial Data
✓ Time Table
• Implement and monitor the business venture
• Maximize the utilization of business resources
• Creative and Innovative - Good Planners
• Customer Oriented - Open-minded
• Flexible - Persistent
• Confident - Organized
• Updated/Well-inform - Team Players
• Knowledgeable - Risktakers

Business Registration – a government that order new business owners to

furnish government agencies with necessary information prior to the legal
operation of their business organization.
The legal form of business is determined by its ownership or proprietorship.
Family Business – a business owned and financially controlled by members
of a family
Enterprise – any projected task or work; undertaking

What are the forms of Business?

Single or Sole Proprietorship – a business owned by one person only. The
owner and the business are considered as one, meaning the owner’s income
and the business income are one and the same and the business income is
taxed as a personal income. Decision making is the sole responsibility of the

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owner and if the business succeeds, he or she gets all the profits. If it fails,
then he or she suffers all the losses and must pay whatever debt are
incurred. The business ends upon the death of the owner or single
proprietor.
Partnership – a business formed when two or more partners formally agree
to be joint owners of a business. The resources (money and other assets)
and talents (skills, experience, and management expertise) of all involved
may be pooled together. All partners share the profits equally, unless
otherwise specified in their partnership agreement.
Corporation – a business entity involving five or more persons owning it. It
is registered and recognized by law as a “legal person” that has legal rights
and responsibilities, can sue or be sued in the court, can own and sell
properties, and can transact or enter into contracts. Corporation ownership
is divided into units known as shares of stocks and owners of these are
called stockholders. A board of directors, elected by the stockholders on a
regular basis, manage the corporation which is run according to terms
specified by their by-laws and articles of incorporation. The corporation’s life
does not end with the death of stockholder or by the selling of the stocks of
a particular stockholder.
Cooperative – a group enterprise made up of several traders, consumers, or
producers who are interested to produce or trade as a group. The
cooperatives’ original purpose was to supply those involved with goods or
services at lower costs compared to those bought from retailer. Later types
of cooperative have emerged that include farmers, producers, and credit
cooperative. A group of officers, called board of directors and committees,
headed by a chairman, manage the cooperative’s activities. The cooperative’s
life is not affected by the death of any its members nor by the selling of
member’s shares. It can, however, be dissolved by a majority vote of the
board of directors and a resolution signed by at least two thirds of the
general membership.
Government agencies where the business to be registered:
• Department of Trade and Industry (DTI)
• Securities and Exchange Commission (SEC) (Partnership and
Corporation)
• Cooperative Development Authority (CDA)
• Barangay clearance and security community Tax Certificate
• Mayor’s Permit and License to operate
• Fire Safety Clearance – Bureau of Fire Protection (BFP)
• Bureau of Internal Revenue (BIR)
• Pag-ibig Fund (Home Development Mutual Fund)
• Department of Labor and Employment (DOLE)
• Social Security System (SSS)

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• Philippine Health Insurance Corporation (Philhealth)

Let’s learn about the Process Flow of Registering a Business

Here are the sample of Legal Form of Business

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Activity 1
Choose the correct answer on the box below and write the answer on your
notebook.

_____________________1. Is innovative, creative, risk-taking, growth-oriented

behavior that brings new opportunities for individuals or organizations to
start new business and to produce new products or services that are
beneficial to society.
_____________________2. Are organizations that persistently pursue
opportunities are characterized by creative, innovative activities that have
service, growth and profitability as principal goals.
_____________________3. Is a business that has fewer than 100-500 workers
independently owned, operated and financed.
_____________________4. Is a written description of your business’s future, a
document that tells what you plan to do and how you plan to do it.
_____________________5. Is a government requirement that order new
business owners to furnish government agencies with necessary information
prior to the legal operation of their business organization.
The __________________6. of a business is determined by its ownership or
proprietorship.
_____________________7. A business owned by one person only.

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_____________________8. Is a business formed when two or more partners
formally agree to be joint owners of a business.
_____________________9. Is a business entity involving five or more persons
owning it.
____________________10. Is a group enterprise made up of several traders
consumers, or producers who are interested to produce or trade as a group.
____________________11. is a business owned and financially controlled by
members of a family.
____________________12. Any project task or work; undertaking

Enterprise Family Business Single Proprietorship

Cooperative Legal Forms Business Registration

Business Plan Small Business Entrepreneurship

Corporation Entrepreneurial Venture

REFERENCES
http://nessiebaculo.blogspot.com/2012/07/process-flow-of-registering-
business.html
INC.COM, family-owned business
https://www.inc.com/encyclopedia/family-owned-business.html
https://www.youtube.com/watch?v=bHlkkb0-nP4

Checked by:

Robert Francisco Virginia Gulinao Roldan Liwanag Antonio Basco

Principal Principal Principal Principal
JPI Sta. Maria JPI Muzon JPI Plaridel JPI San Jose

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KEY ANSWER

ACTIVITY 1
1. Entrepreneurship
2. Entrepreneurial Ventures
3. Small Business
4. Business Plan
5. Business Registration
6. Legal Forms
7. Single Proprietorship
8. Partnership
9. Corporation
10. Cooperative
11. Family Business
12. Enterprise