Implementing Simple Business

WEEK 10 – 11
Business Size
 Lesson Objectives:

• Explain how to start a small business

• Identify the business legal forms and

requirements; and 

• Appreciate the role of small business in

improving economic status. 
 NATURE OF THE BUSINESS

Market Share Approach Total Assets Approach

defined as one which is
independently owned and Defined as one having total
operated, and which is not assets that fall within a
dominant in its field of certain bracket. 
operations.  

The Magna Carta for Small Enterprises (R.A. 6977) indicates that the firm must have total
assets valued at above Php 1.5 million to Php 15 million to be considered small business. 
 TYPES OF SMALL BUSINESS
1.Small Manufacturing Business 
A manufacturing business is one involved in the conversion of raw
materials into products needed by the society. Examples of small
business engaged in manufacturing are bakeries, tricycle sidecar
assembly shops, bagoong manufacturers, restaurants, and others. 

2. Small Service Business 

Service businesses are those that provide
service one way or another.
3.Wholesaling 
• Wholesaling refers to the activities of persons or establishments
which sell to retailers and other merchants, and/or industrial,
institutional, and commercial users, but who do not sell in large
amounts to final consumers. 
Examples: soft drinks wholesalers in local areas, dealers of supplies
and office equipment, grains wholesalers, and the like.  
4.Retailing 
• Retailing covers all activities involve in the sale of
goods and/or services to the final consumers.  
Examples: (retail drugstores, fast food shops,
appliance stores, and others.) 

5.General Construction Firms 

• General construction firms are those
engaged in the construction of buildings
whether for private individuals or firms, or
for the government.  
CHARACTERISTICS OF SMALL BUSINESS
•Independent Management – The owner is also the manager. 

•Small Capital Requirement – Small business requires only

small capital, and this can be supplied by a single or a few
individuals. 

•Mostly Local Operation – Small business usually operates in a

certain locality although there are cases when the market is not
confined to a local area.
ECONOMIC IMPORTANCE OF SMALL BUSINESS
PROVIDERS ECONOMIC OPPORTUNITIES FOR ENTREPRENEURS

PROVIDERS OF PRODUCT AND SERVICE TO THE CUSTOMERS

SUPPLIERS OF PRODUCT AND SERVICE TO OTHER BUSINESSES

DISTRIBUTORS OF PRODUCT AND SERVICE TO OTHER BUSINESSES

SUPPORTERS OF THE GOVERNMENT

PROVIDERS OF EMPLOYMENT
STRATING A
BUSINESS:
LEGAL FORMS
AND
REQUIREMENTS
• Compile and notarize all necessary documents

•Register your business with the Security Exchange

Commission (SEC)

•Register with the Bureau of Internal Revenue (BIR)

•Acquire a Business Permit
•Acquire accounting related systems
•Register with the SSS
•Register with the PhilHealth
•Register with the HDMR (PagIBIG)
•Comply with regulation requirements
•Pay all the necessary fees.
LAW THAT
AFFECTS
BUSINESS
PRESIDENTIAL DECREE NO. 442
•THE LABOR CODE OF THE PHILIPPINES
is a decree instituting a labor code. This law has revised
and consolidated labor and social laws in the country. The
Labor Code protects labor, promotes employment and
human resource development, and ensures industrial
peace based on social justice.
REPUBLIC ACT NO. 7394
•CONSUMER ACT OF THE PHILIPPINES
protects the interests of the consumer, promotes his
or her general welfare, and establishes standards of
conduct for business and industry. 
REPUBLIC ACT NO. 9501
•MAGNA CARTA FOR MICRO, SMALL, AND MEDIUM ENTERPISES
recognizes the potential of MSMEs to generate
employment and economic growth. It aims to promote
entrepreneurship, help entrepreneurs, and support the
growth and development of MSMEs.
REPUBLIC ACT NO. 10644
•GO NEGOSYO ACT
also promotes job creation and inclusive growth
through the creation and development of MSMEs.
This law aims to reduce business and bureaucratic
constraints in creating MSMEs. It also aims to
provide incentives and benefits to MSMEs, as well as
strengthen the Micro, Small and Medium Enterprises
Development (MSMED) Council.  
REPUBLIC ACT NO. 10524
•EQUAL OPPORTUNITY FOR EMPLOYMENT ACT
ensures that people with disability are given equal job
opportunities. This law states that a qualified worker or
employee should enjoy the same conditions of employment,
compensation, privileges, benefits, incentives, and
allowances as a qualified normal employee. This law also
ensures that at least one percent of all positions in
government, offices, and corporations be reserved for
people with disability. 
REPUBLIC ACT NO. 8972
•THE SOLO PARENT’S WELFARE ACT OF 2000
provides benefits and privileges to single parents and their
children.
REPUBLIC ACT NO. 10911
•THE ANTI-AGE DISCRIMINATION IN EMPLOYMENT ACT
protects individual against discrimination because of their
age. This law ensures that people are hired because of their
knowledge, skills, qualifications, and not because of their
age.