Jonalyn E Lumbra MBA 306 17 February 2024

A. Laws and Regula@ons for Small Medium Enterprises.

1. Introduc@on
- Laws and Regula@ons of Small Medium Enterprises is a guide for SMEs and
policymakers. This work communicates to the SMEs that there are laws which
regulate the establishment and opera@ons of SMEs. It empowers the small
ins@tu@ons to understand that there are laws and regula@ons put in place to
govern their opera@ons and by following them, they will manage to grow and
join the large organiza@ons. The policymakers can use this informa@on to align
the current legal and ideological framework with the needs of the SMEs. The
work outlines various laws which have to be adhered to by SMEs. For instance,
the work sheds light on the Companies Act and the forma@on of limited
companies. It is indicated that the Act requires seven or more persons to come
together and subscribe their names in a company forma@on document. This
law is relevant because it helps in guiding the opera@ons of SMEs through their
registra@on. The law aspect of it can be used to argue that the SMEs which
have not embraced modern technology and are s@ll under informal basis risk
penal@es from different authori@es. The work also touches on the laws that
guide technological development. For example, it is outlined that there are
laws which protect the intellectual property of an ins@tu@on. The
enforceability of intellectual property laws and the need for fostering a
knowledge-based economy are emphasized in the work. This sec@on will
greatly help policymakers to understand the current and future legal
frameworks with relevance to technological advancement and protec@on of
digital informa@on.

2. Overview of SMEs laws

- The laws related to SMEs in many countries are designed to protect the interest
of small and medium entrepreneurs. These are also designed to promote and
help the growth of this sector. However, when a business grows to exceed the
set requirements for classifica@on as a small or medium en@ty, then these laws
would no longer be applicable. The specific laws that apply to SMEs in a given
country vary mainly because of the differences in legal systems. However, the
most common laws that apply across the board include tax and financial,
employment, health and safety laws. These laws greatly affect the way a small
business is run. The establishment, the management and the opera@ons on a
small business are generally affected by various laws. The state laws in which
the business is opera@ng and the federal laws will all have a say on how the
business should be run. The tax and financial laws will establish the acceptable
methods of accoun@ng for a small business, as well as determining the tax
liability that the business is expected to meet. Studies suggest that small
businesses spend more per employee to comply with federal regula@ons
rela@ve to larger businesses. These costs make it expensive for small
businesses in complying with these laws. These costs also come in the way of
expansion of small businesses. On the other hand, Small Business Regula@ons
 and laws are essen@al for smooth func@oning of any small business. These laws
in general provide for how to start a small business and how to run a small
business in any given state or country. Since small businesses have no separate
and dis@nct en@ty, unlike bigger business en@@es, the owner bears the full
liability for the business opera@on. However, the owner only works within the
framework of the law to protect the business and its interests also.

3. Three (3) Examples of SME

a) Clothing Bou@que
- A clothing bou@que is a small store that offers a special selec@on of clothes
and other apparel to shoppers. In most cases, the selec@on in such stores
consists of clothing that is more fashionable or unique than what you might
find in larger chain stores. Most of these clothes have been specially hand-
selected for the store's inventory according to the fashion tastes of the store's
owner or buyer.
b) Local Bookstore
- The store embraces the digital age also as there is a func@onal, official website
wherein books can be purchased and updates concerning events.

c) Specialty Food Shop

- Specialty food shops are common in most places. They are expected to get into
both prime and secondary markets. It has the poten@al for growth because of
being situated in the busy urban areas. The shop targeted on urban se[ngs is
expected to do very well than those in the rural or semi urban areas. This is
because there is emergence of many poten@al buyers in the prime areas. The
convenience of specialty food shop is because the target customers of these
shops are the busy individuals. These individuals want to access their favorite
food at their convenient @me. The specialty food shops will mainly focus on
the busy urban areas where most of the offices and business premises are
located.

B. LAWS AND REGULATION OF MICRO SMALL AND MEDIUM ENTERPRISE

1. Introduc@on
- Laws and Regula@ons of Micro Small and Medium Enterprise presents itself as
a highly detailed and all-encompassing legal code. As far as my reading of the
works that define and classify a small business goes, it can get as long and
detailed as the one I just alluded to. I suppose that the correct way would be
to look at the defini@on at its most general level and then see what the general
consensus is about how a small business is defined at the macroeconomic
level. The general defini@on of a small business is one in which the main
decision-makers or most of the owners have limited control of daily
opera@ons. And at the most general level of society, it usually refers to one in
which produc@on is at a scale that creates a large degree of self-management
for the workers based in simple life sustenance rather than maximized profit.

2. Overview of MSMEs
- Micro, Small, and Medium Enterprises (MSMEs) have been accepted as the
engine of economic growth and for promo@ng equitable development. It
however didn't have an unambiguous and clear explana@on. One of the
 objec@ves of the framework is to create awareness on MSMEs including their
regulatory, legal and policy framework. The framework helps us to understand
beber the place of each and every person in the industry and the role that
stakeholders must play effec@vely. The development of the enabling legal and
regulatory framework included pu[ng in place ins@tu@onal arrangements
which are necessary to support MSMEs.
3. Three (3) Examples of MSMEs

a) Street Food Vendor

b) Freelance Graphic Designer
c) Sari-Sari Store