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
