The Nature Of Small Business Flashcards
which is “ independently owned and operated and which is not dominant in its field of operation.
Small business
means ownership is by a private individual, a partnership, or a corporation.
The independently owned
It indicates that a small business does not control a sizeable share of its market .
The term not dominant
defines a small enterprise as “ any business activity or enterprise engaged in industry, agribusiness activity or enterprise engaged in industry, agribusiness and or services , whether single proprietorship, cooperative, partnership or corporation whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity’s office , plant and equipment are situated must have a value of above P1.5 million to P15 million.
The magna carta for small small enterprises (R.A 6977)
Types of small businesses
- Manufacturing
- Service
3.Wholesaling
4.Retailing
5.General construction firms
are those that provide services in one way or another.
Service business
those that provide service to other business. Examples are accounting firms, janitorial services, security services, collection agencies, etc.
Business services
those that provide service to the person. Examples are tutoring services, massage parlors, voice lessons, etc.
Personal services
It refers to the activities of those persons or establishments which sell to retailers and other merchants, and / or to industrial, institutional, and commercial users, but who do not sell in large amounts to final consumers.
Wholesaling
include schools for children, high school, correspondence schools, etc.
Education services
include movie houses, resorts, billiard pool centers, etc.
Entertainment and recreation
It covers all of the activities involved in the sale of goods and services to the final consumers.
Ratailing
General construction firms are those engaged in the construction of buildings whether for private individuals or for the government. Many of them perform subcontracting jobs for the bigger contractors such as installing electrical facilities and sewerage.
General construction firms
The owner is also the manager.
Independent management
Small businesses require only small capital and this can be supplied by a single or a few individuals.
Small capital requirements
Small business usually operates in a certain locality although there are cases when the market is not confined to a local area.
Mostly local operations
People who do not feel comfortable as employees have the option of engaging in small business operation.
Providers of economic opportunities for entrepreneurs-
The Production of many products and services are oftentimes not feasible for big and medium business operation. These limited opportunities are naturally passed on to small businesses.
Providers of products and services to consumers
Some businesses require raw materials , semi-finished parts, finished components or even labor, which they could not produce. The small business perform this task for them.
Suppliers of products and services to other businesses
Some manufacturers are not able to distribute their products and services. Many Small business assume this role for them.
Distributors of products and services of other businesses
Small Businesses support the government by paying taxes and performing other functions.
Supporters of government
a large proportion of the labor force are employed by small businesses.
Providers of employment
Characteristics of small business
1.independent management
2. Small capital requirements
3. Most local operations
Types of service business
-business services
-personal services
-repair services
-entertainments and recreation
-hotel and motels
Education services
– It is one involved in converting raw materials into products needed by society.
Manufacturing business
Examples of manufacturing business
Printing press
Garments manufacturing
Furniture Shops
Car Assembly Shop
