GENERAL CRITERIA FOR

SELECTING A BUSINESS
LOCATION

By: Jomar L.
Destacamento
BT-3B
 1. SELECTING THE REGION
-A mere look in the statistical
reports on the growth patterns and
the economic performance of the
nation’s different regions will
reveal information that regions are
more desirable areas of investment
than others.
2. SELECTING THE PROVINCE

-In a given region, a

province may be identified
as more promising for a
small business than other
provinces.
 FACTORS THAT MAY BE CONSIDERED WHEN IDENTIFYING
WHICH PROVINCE THE SMALL WILL BE LOCATED:

 1. PROXIMITY TO MARKETS
 -Small business must be near to market as possible.
 2. PROXIMITY TO SUPPLY OF RAW MATERIALS
 -When the raw material requirements of a small business are voluminous
and frequent acquisitions are made, the company must consider locating in the
province where the raw materials are sourced.
 3. LABOR SUPPLY
 - The small business must be located in the province where its labor
requirements will be supplied sufficiently. The labor requirements that are classified as
managerial, specialists, and skilled workers must be available.
 4. BUSINESS CLIMATE
 -Small businesses are expected to thrive in places where they transact
business more efficiently. Some provinces are friendly than others. They are so because
they provide incentives for small business like tax holidays, lower fees, minimum
restriction and others
3. SELECTING THE CITY OR TOWN

-After identifying the

province where the small
business will be located, the
specific city or town within
the province must be
selected.
 In choosing a specific city or town, the following must be
considered.

 1. POPULATION TRENDS
 - In a given province, some towns grow faster than others, In terms of
population and income. One or two of these towns may be more appropriate
as location for small business especially when any or all of the following are
considered.
 a. population size and density
 b. growth trends
c. family size
 d. age breakdowns
 e. education
 f. income levels
 g. sex
 h. religion
 i. ethnic groups
 2. LOCAL LAWS AND REGULATIONS
-The small business investor must
compare the local laws and
regulations of the different towns
within the province of his choice.
He will find out that some towns
provide a climate conductive to
small business operation.
 3. COMPETITION

-Some towns or cities are already

saturated with certain types of
business. If the small business investor
finds a town under consideration with
too much competition in his line of
business, he should shift his attention
to other town.
4. COMPATIBILITY WITH THE COMMUNITY
-The small business must be compatible
with the community where it will be located.
For instance, a city where people do not care
about developing their community is not a
very good location for a growth-oriented
small business. The opposite view, a city
where people care about their health would
be a good place to locate a small business
selling health foods.
 5. TRANSPORTATION
-The cost of moving the firm’s
products contributes to the overall
costs of operating the business. It is,
therefore, very important that the
firm should be located in a town with
adequate and reasonably priced
transportation service.
 6. PUBLIC SERVICES

-Towns or cities which provide

adequate services like those on
water and sewerage, trash and
garbage collection, among others,
must be regarded as plus factors in
choosing location.
 7. POLICE AND FIRE PROTECTION
 -Towns and cities that do not provide
adequate police and fire protection should
be ruled out in choosing in choosing a
location. Any business that will provide
itself with such protection will be able to
do so at a cost, and this will jack up the
cost of operation which may result to a
decline in profits.
 8. REPUTATION OF THE LOCATION

 -Some cities and towns have established

reputation which may not contribute to the
achievement of the goals of the firm.
However, cities like Makati, Cebu, or Davao
lend their reputations to businesses located
in their areas. In a way, a prospective
customer is easily swayed to pay attention
to whatever message small business would
want to convey to them.
 erandio felisilda

destacamento
dolosa dioneda diesta
dulpina
THANK YOU!!!!!!!!!!!........
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