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Questions and Answers
Which factor does not represent a common source of funds when setting up a business?
What does opportunity seeking involve in the context of entrepreneurial competencies?
Which entrepreneurial competency focuses on accepting responsibility in completing jobs for customers?
What does systematic planning and monitoring entail?
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Which of the following is an entrepreneurial competency related to setting future objectives?
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What percentage of micro, small, and medium enterprises (mSMEs) are classified as micro enterprises in the Philippines?
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Which of the following is NOT a phase in the enterprise implementation process?
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What is the asset size range for a medium enterprise in the Philippines?
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Which government agency is responsible for issuing the Business Name Certificate?
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How many large enterprises are operating in the Philippines as of 2011?
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Which form of business organization requires registration with the Security and Exchange Commission?
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Which region has the highest number of micro, small, and medium enterprises (mSMEs) in the Philippines?
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What is the employee range for small enterprises in the Philippines?
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Which document must a business secure from the local barangay office?
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What is the purpose of Form 1904 in the business registration process?
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Which form must be filled out for monthly percentage tax returns?
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Which document is required for a corporation's annual income tax return?
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What is needed in addition to registering for the Social Security System to operate a business?
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Which of the following documents must be attached while applying for a business name registration?
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What does the issuance of a mayor's permit indicate about a business?
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Which agency administers the housing savings scheme known as Pag-ibig?
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Study Notes
Entrepreneurship in the Philippines
- Micro and small-scale enterprises are the most common business types in the Philippines.
- As of 2011, there were 820,255 businesses operating in the Philippines.
- 99.6% of these businesses were micro, small, and medium enterprises (MSMEs), with only 0.4% being large enterprises.
- 91% of MSMEs were micro enterprises, 8.6% were small enterprises, and 0.4% were medium enterprises.
- The National Capital Region (NCR) had the highest concentration of MSMEs in 2011, followed by CALABARZON, Central Luzon, Central Visayas, and Western Visayas.
- These top five regions accounted for about 63.1% of the total number of MSMEs in the country.
Enterprise Implementation Phases
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Fund Sourcing:
- Cost of Organizing: Costs associated with establishing the business.
- Working Capital: Money needed for day-to-day operations.
- Plant, Property, and Equipment: Investments in physical assets.
- Margin of Safety: Buffer to handle unexpected expenses or market fluctuations.
- Pre-operating Phase: Setting up the business infrastructure and processes.
- Business Launch: Official opening of the business to the public.
- Business Operation: Ongoing activities of the business.
- Business Continuation or Closure: Decision to continue or discontinue the business.
Forms of Business Organization
- Sole Proprietorship: Owned and operated by a single individual.
- Partnership: Business owned and operated by two or more individuals.
- Corporation: Legal entity separate from its owners, with shareholders having limited liability.
Government Agencies Related to Business Setup
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Department of Trade and Industry (DTI): Business Name Certificate Number (BNCN)
- Required for sole proprietorships, partnerships, and corporations.
- Protects the business name from being used by others
-
Securities and Exchange Commission (SEC): Certificate of Registration
- Required for partnerships and corporations.
-
Local Barangay Office: Barangay Clearance
- Required from the local barangay office where the business is located.
-
Local Government Unit – Mayor’s Office: Mayor’s Permit
- Issued when all requirements are met and standards are fulfilled.
-
Bureau of Internal Revenue (BIR):
- Secure a Permanent Tax Identification Number (Form 1904).
- Register the business name with BIR Revenue District Office (Form 1901 for individuals, Form 1903 for partnerships and corporations).
- Submit supporting documents (Mayor’s Permit, Certificate of Business Name Registration, Residence Certificate).
- Pay prescribed fees.
- Receive a Certificate of Registration (BIR form 2303).
- Apply for issuance of books (Form 1900) and receipts (Form 1906).
- Submit monthly, quarterly, and annual tax remittances.
- Social Security System (SSS): Employer's Registration Number.
- Philippine Health Insurance Corporation (PhilHealth):
-
Home Development Mutual Fund (HDMF): Pag-IBIG
- Registration is required for SSS members earning ₱4,000 or more.
- Provides housing savings schemes.
-
Other Government Agencies:
- Building Permit and Occupancy Permit (for newly constructed buildings).
- Zoning Clearance.
- Community Tax Certificate.
- Fire Safety Certificate.
- Sanitary Permit.
Common Sources of Funding for Business Setup
- Personal savings and parent's cash support.
- Contributions from team members.
- Contributions from relatives and friends.
Entrepreneurial Competencies
- Opportunity Seeking: Identifying and seizing business opportunities.
- Moderate Risk-Taking: Assessing the chances of success before taking a risk.
- High Demand for Efficiency and Quality: Meeting or exceeding industry standards.
- Commitment to Work Contract: Accepting responsibility to fulfill customer needs.
- Persistence: Overcoming challenges to achieve goals.
- Information Seeking: Obtaining relevant and valuable information for the business.
- Goal Setting: Establishing clear short-term and long-term goals.
- Systematic Planning and Monitoring: Developing plans for goal attainment and tracking progress.
- Persuasion and Networking: Influencing others and building relationships for support.
- Self-Confidence: Taking initiative and responsibility for decisions.
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Description
Explore the landscape of micro and small-scale enterprises in the Philippines. This quiz covers essential data on the prevalence of MSMEs and the different phases of enterprise implementation, focusing on fund sourcing and operational needs. Test your knowledge on the unique aspects of entrepreneurship in this Southeast Asian nation.
