The Nature of Small Business

The Nature of Small Business Objectives: - To discuss or define small business according to the two approaches Objectives: - To enumerate and discuss the types of small business - To define the characteristics of a small business Objectives: - To be able to know the im...

The Nature of Small Business Objectives: - To discuss or define small business according to the two approaches Objectives: - To enumerate and discuss the types of small business - To define the characteristics of a small business Objectives: - To be able to know the importance of small business in the economy. Objectives: -To know the advantages of operating a small business. - To describe the benefits in putting up your own small business. Objectives: -To know the disadvantages of operating a small business.  Kinds of Business According to Size Public Enterprises Private Enterprises Example: Land Bank Example: of the Globe Telecom Philippines Micro Cottage Small Medium Large Business Business Business Business Business Kinds of Business According to Size  Financial Capacity and Size of Business People and Their Possible Engagement Financial Capacity In Entrepreneurship Number of Persons Those with large amounts few few of capital Those with small amounts large many of capital MARKET SHARE APPROACH It is defined as one which is independently owned and operated and which is not dominant in its field of operation. TOTAL ASSETS APPROACH It is defined as one having total assets that fall within a certain bracket.  MICROENTERPRISES - Are classifications of enterprises having total assets valued at P1.5 million and below.  Types & Characteristics of Small Business Types of Small Business Small Manufacturing Business Small Service Business Service businesses are those that provide service in one way or another. They may be further classified into the following: - Business Services - Personal Services - Repair Services - Entertainment and Recreation - Hotels and Motels - Education Services Types of Small Business Wholesaling Retailing General Construction Firms Characteristics of a Small Business: Independent Management Small Capital Requirement Mostly Local Operation  Economic Importance Of A Small Business Small businesses play an important role in the development of our economy. They assume the following functions: - Providers of economic opportunities for entrepreneurs - Providers of products and services to consumers - Suppliers of products and services to other businesses - Distributors of products and services to other businesses - Supporters of government - Providers of employment Advantages of Operating A Small Business Advantages Of Operating A Small Business Be an employee Be a professional Be a small business operator (SBO)  A business operator is afforded the following benefits: - The opportunity to gain control over his own destiny - The opportunity to reach his full potential - The opportunity to reap unlimited profits - The opportunity to make a contribution to society and receive recognition for his efforts Disadvantages of Operating A Small Business Disadvantages Of Operating A Small Business Uncertainty of income Risk of losing your entire capital investment Lower quality of life until the business gets established Complete responsibility Disadvantages Of Operating A Small Business Having to serve undesirable customers Paperwork and other chores Long hours and demanding work condition