TECHNOPRENEURSHIP ABOUT US TOPIC 1 TOPIC 2 TOPIC 3

Small - Medium
Enterprises
The Backbone of the Economy

Mia Nabor
John Bryan Daguman

BSCE 3B
TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

What are Small Medium

Enterprises (SMEs)?

Businesses not exceeding specific

thresholds in employees, revenue, or
assets (varies by country).
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 4

• SMEs play an important role in an

economy by employing many people
and shaping innovation.

• Can exist in almost any industry

which requires fewer employees and
smaller upfront capital investments.
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

Characteristics of
Small Businesses
TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

BUSINESS SIZE

• Small Businesses are typically defined as having fewer employees

and lower revenue than larger businesses.

• The specific definition of “small” can vary depending on the country

and industry, but it is generally considered to be a business with less
than 500 employees and less than 50 million pesos in annual
revenue.
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

OWNERSHIP
• Small businesses are often owned
by a single person (sole
proprietorship) or a small group of
partners.
• Owners have a direct stake in the
success of the business and are
often very involved in its day-to-
day operations.
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

MANAGEMENT
• Small businesses typically have a
less formal management structure.
• The owner may wear many hats
and be responsible for a wide
range of tasks.
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

MARKET FOCUS
• Small businesses often focus on a niche
market or a specific geographic area.
• This allows them to specialize and cater to the
needs of a particular customer base.
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

FLEXIBILITY
• Small businesses are often more
flexible and adaptable than larger
businesses.
• They can make decisions quickly
and change course as needed.
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

INNOVATION
• Small businesses are often at the
forefront of innovation. They are
not constrained by the
bureaucracy as larger businesses
and can be more willing to take
risks.
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

CHALLENGES
• Small businesses also face a number
of challenges, such as limited access
to capital, competition from larger
businesses, and difficulty attracting
and retaining qualified employees.
TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

Management
Functions
Small and medium enterprises (SMEs)
share some management functions with
larger businesses, but also face unique
challenges that require specific
approaches.
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

Strategic Management
• Vision and Mission: Define the company’s goals, values, and target market
• Planning: Develop short-term and long-term plans for growth, marketing, finance, and
operations.
• Competitive Analysis: Understand the competitive landscape and identify opportunities.
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

Operations Management
• Production: Efficiently manage production processes to ensure quality and timely delivery.
• Supply Chain Management: Build strong relationships with suppliers and manage inventory
effectively.
• Quality Control: Implement quality control measures to ensure product or service
consistency.
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

Marketing and Sales

• Developing a Marketing Strategy: Reach target customers with effective messaging and
channels.
• Sales Management: Build a sales team and implement processes to acquire customers.
• Customer Relationship Management: Build strong relationships with customers to encourage
repeat business.
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

Human Resource Management

• Recruitment and Hiring: Attract and hire qualified employees.
• Training and Development: Invest in employee skills and development.
• Performance Management: Effectively evaluate and manage employee performance.
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

Financial Management
• Financial Planning and Budgeting: Create and manage budgets to ensure financial stability.
• Accounting and Reporting: Maintain accurate financial records and reports.
• Cash Flow Management: Manage cash flow effectively to avoid financial issues.
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

Forms of
Business Entities

Choosing the right business entity structure is

crucial for any small or medium enterprise as it
impacts everything from legal liability to taxes
and fundraising.
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

SOLE PROPRIETORSHIP
• Simplest and most common structure,
especially for solo entrepreneurs.
• Easy to set up and manage.
• Owner has unlimited liability for
business debts.
• Business income reported on personal
tax return .
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

GENERAL PARTNERSHIP
• Two or more owners share in profits
and losses.
• Each owner has unlimited liability for
business debts.
• Simple structure, but potential for
disagreements between partners.
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

LIMITED LIABILITY PARTNERSHIP

• Similar to LP, but all partners have limited

liability for business debts.
• Often used by professionals like lawyers and
accountants.
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

C CORPORATION
• Separate legal entity from its owners.
• Offers limited liability protection for owners.
• Subject to double taxation (corporate and
personal tax on dividends).
• Complex structure, good for raising capital and
long-term growth.
 TECHNOPRENEURSHIP P R E S E N TAT I O N 2 0 2 3

S CORPORATION

• Special type of corporation that avoids double

taxation.
• Limited to 100 shareholders who are US
citizens or permanent residents.
• Subject to specific rules and regulations.
 ABOUT US VISION S T R AT E G Y PROJECT
TECHNOPRENEURSHIP

Thank you