Entrepreneurship and Small Business Management

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CHAPTER I
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ENTREPRENEURSHIP AND
INTRODUCTION
 Entrepreneurship is a very important component of
a capitalist economy like the Philippines. It thrives
in economic systems that support innovation and
hard work. When entrepreneurs become successful
the nation is immensely benefited.
 Encouraging entrepreneurship to flourish in the
Philippines will certainly increase the dwindling
capital of hope for most Filipinos and may prevent
some from leaving the country to seek employment
abroad.
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ECONOMIC DEVELOPMENT
Economic development is a scheme aimed at improving the living
standards of the nation’s citizenry. To achieve economic development
goals, proper management of the following elements is necessary:
1. Human resources (labor supply,

education, discipline, motivation)
2. Natural resources (land, minerals,
fuel, climate)
3. Capital formation (machines,
factories, roads)
4. Technology (science, engineering,
management, entrepreneurship)
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WHAT IS ENTREPRENEURSHIP?
 Entrepreneurship refers to the economic activity of a
person who starts, manages, and assumes the risk of a
business enterprise. The person who undertakes
entrepreneurial activities is called an entrepreneur.
 The entrepreneur identifies an economic need,
considers offering a business solution, proceeds to
assemble the resources required, and assumes the risk
of either succeeding or failing.
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EXAMPLE:
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THE ENTREPRENEUR’S TASK
Surviving enterprises are responsible for providing the
following:
1. Products and Services for Customers and
Producers - Providing wide choices of products and
services
2. Employment – Entrepreneurs employ millions of
people
3. Taxes – Taxes paid to the government in the form
of licenses, fees, and permits
4. Demands for Suppliers’ Products and Services –
Entrepreneurs makes sure that the suppliers will have
a ready market for their products and services
5. Training Facilities for Future Entrepreneurs –
Business enterprises provide a training ground for
future entrepreneurs
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 In the attempt to make profits, the entrepreneur
performs the following specific functions:
1. To supply the necessary capital
2. To organize production by buying and
combining inputs like materials and labor
3. To decide on the rate of output, in the light of
his expectation about demand, and
4. To bear the risk inherent to the
venture
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INNOVATION
 Entrepreneurs innovate and get ahead of his
competitors. Buyers of commodities have a tendency
to patronize innovative offerings of any kind.
 Innovation may be defined as the introduction of a
new product, procedure, custom, device, etc.
Innovation could be any of the following:
1. New Product
2. New process of production
3. Substitution of a cheaper
material in unaltered product
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INNOVATION
4. Reorganization of production, internal function, or
distribution arrangement leading to increased efficiency,
better support for a given product, or lower costs
5. Improvement in instruments or methods of doing
innovation. Innovation ay also be viewed as the last stage in an
important process consisting of the following:
a. Invention – Discovery or devising of new products and
processes
b. Development – Ideas and principles generated from the
stage of invention are embodied in concrete products and
techniques
c. Innovation – Actual introduction of a new product or
process
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EXAMPLES OF SUCCESSFUL
INNOVATIONS
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NEW VENTURES AND LONG-
TERM ENTERPRISES
 A new venture cannot remain as such forever.
 An entrepreneur must develop new venture to small
business or to make it grow into a mature and bigger
company.
Four Major Stages – From New Venture to Long-
Term Enterprise
1. The prestart-up stage – Questioning
the feasibility of an idea, product or
service.
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NEW VENTURES AND LONG-
TERM ENTERPRISES
2. The start-up stage – The following activities are
undertaken:
a. Formation of the business
b. Generation of necessary capital
c. Purchase of facilities and equipment
d. Constructing prototype products; and
e. Testing the market
3. The early growth stage – Follows after establishing
feasibility. Selling the product to limited markets.
4.The late growth stage – When management is
structured, long-term financing is established and
facilities planning are undertaken. Skilled managers
begins to take over. 14
REWARDS FOR SUCCESSFUL
ENTREPRENEURSHIP
 The use of any of the factors of production deserves to receive
some form of compensation. The factors referred to as “things
required for making a commodity”, consist of land, labor, capital
and entrepreneur.
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THE ENTREPRENEUR’S
PREDICAMENT
 In the race for winning the all-important consumers’
pesos, the business will have to offer products or
services that have certain advantages over the
competition’s wares.
 Competitors may either imitate or offer better
innovations. If the competitor is successful, the profits
of the entrepreneur will decline.
 To be ahead again, the entrepreneur consider offering
newer and better innovations. The cycle continues
until one or both find a reason to stop.
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BUSINESS SIZE
 To effectively compete, business of whatever size must
adapt innovative approaches to its activities.
 Examples:
1. Offering business services during
Sundays and Holidays
2. Manufacture and sale of new
products; and
3. Selling on a deferred scheme
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Chapter II
By:
Joy Ivy Eve E. Palac
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WHAT IS A SMALL BUSINESS?
A small business may be defined as “one which is
independently owned and operated and which is
not dominant in the field of operation” (market
share approach)
A small business may be defined as “one having total

assets that fall within a certain bracket” (total
assets approach)
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KINDS OF BUSINESS ACCORDING
TO SIZE
Micro Business
Cottage Business
Small Business
Medium Business
Large Business
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TYPES OF SMALL BUSINESS
Manufacturing
Service
Wholesaling
Retailing
General Construction Firms
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MANUFACTURING
A Manufacturing business is one involved in the
conversion of raw materials into products needed by
society.
Example: Bakeries, Tricycle Sidecar Assembly Shops,

Bagoong Manufacturers
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SERVICE
Service business are those that provides service in one
way or the other
Business Service – Provide service to other members
Personal Services – provide service to person
Repair Service
Entertainment and Recreation
Hotels and motels
Education service
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WHOLESALING
Activities of persons or establishments which sell to
retailers and other merchants, and/or to industrial,
institutional and commercial users but do not sell in
large amounts to final consumer.
Example: Soft drinks
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RETAILING
Retailing covers all activities involved in the sale of
good and or service to the final consumers.
Examples: Retail Drugstores, Fast Food Shops,

Appliance Stores
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GENERAL CONSTRUCTION FIRMS
Those who are engaged in the construction of
buildings whether for private individuals or firms, or
for the government.
Example: Carpenter’s Cut
They also perform subcontracting jobs for bigger
contractors.
Example: Installing Electrical Facilities, Plumbing
and Sewerage
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CHARACTERISTICS OF
SMALL BUSINESS
Independent Management (owner is
also manager)
Small Capital Requirement
Mostly local operation
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ECONOMIC IMPORTANCE OF
SMALL BUSINESS
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 of Other
Businesses
Supporters of Government
Providers of Employment
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ADVANTAGES OF OPERATING A
SMALL BUSINESS
An individual has various options to improve
his economic lot. They are the following:
Be an employee
Be a professional
Be a small business operator
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THE ADVANTAGE OF BEING AN
ENTREPRENEUR
A small business operator (SBO)
Has the Opportunity to….
a. Gain control over his own destiny
b. Reach full Potential
c. Reap unlimited Profits
d. Make a contribution to Society and Receive
Recognition for his effort
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DISADVANTAGE OF OPERATING
A SBO
Uncertainty of Income
Risk of losing your entire capital investment
Lower quality of life until business is established
Complete responsibility
Having to serve undesirable customers
Paperwork and other chores
Long hours and demanding work condition
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Chapter III
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What is Business Ethics?
Ethics is the study of moral obligation involving the distinction
between right and wrong.
The rules about how entrepreneur ought to behave are referred to as
business ethics. The ethical behavior required of entrepreneurs is
determined by the following:
1. the public;
2. interest groups like the Society of Prevention of Cruelty to
Animals;
3. business organizations; and
4. the individual’s personal morals and values.
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Factors Influencing Ethical
Behavior
 Ethical behavior, whether by a person or a business
entity, is influenced by any or a combination of the
following:
1. situation;
2. reward system;
3. individual differences; and
4. other factors.
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Adherence to Establishment of
Ethical Standards Trust
by Entrepreneurships -Between buyers and sellers

- between lenders and borrowers
Figure 5. The Effect of Adherence to Ethical Standards
Smooth Flow of
Business Exchanges
Example: selling faster

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How Ethical Behavior is
Encouraged
 If the entrepreneur believes that business success requires
good ethical behavior, his next concern would be to
encourage his people to adapt good ethical behavior.
 There are certain ways of encouraging ethical behavior
among employees. These are the following:
1. adaption of a code of ethics;
2. institution of rewards and punishments concerning
ethical behavior;
3. adaption of internal programs for resolving conflicts;
4. creation of ethics review committees;
5. provision of training in ethics for employees; and
6. top management support.
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Ethical Issues Facing
Entrepreneur
 Entrepreneurships face ethical questions on daily
basis. These spring from the following relationships:
1. between the company and the customers;
2. between the company and its personnel and
employees;
3.between the company and its business associates;
and
4. between the company and the investors and the
financial community.
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Relations with Customers
 When ethical abuses are committed, the most probable
victims are customers. This is expected because of the high
frequency of transactions between the company and the
customers
 Entrepreneurs are expected by society to treat customers
fairly and not to act in ways that will be harmful to them.
Entrepreneurs should provide support for consumer rights
which are as follows:
1. the right to be safe;
2. the right to be informed;
3. the right to choose; and
4. the right to be heard.
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Relations with Personnel and
Employees
 There is always the possibility that business firms,
including entrepreneurships, will commit unethical acts
toward their employees. Since entrepreneur and their staff
make decisions on various business activities like hiring,
promotion, transfer, compensation, and dismissal, it is not
uncommon for ethical lapses to happen every now and
then.
 Good ethical conduct requires entrepreneurs to be aware of
their responsibilities to employees. These are the following:
1. workplace safety;
2. quality of life issues;
3. avoiding discrimination; and
4. preventing sexual harassment.
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Chapter IV
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The Environment as a Factor
 An entrepreneurship will survive and grow in an environment
that is friendly or akin to it. Nature provides us with examples of
what happens to entities living in certain environments.
 In the same light, entrepreneurships will survive and grow only
in economic environments of free enterprise. Full blooming
entrepreneurships cannot be expected to flourish in economies
that are not fully supportive of free enterprise
 In terms of support to entrepreneurships, economic
environments differ from place to place. To facilitate discussion,
economic environments may be classified as follows:
1. fully supportive of entrepreneurships;
2. moderately supportive of entrepreneurships; and
3. not supportive of entrepreneurships.
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The Entrepreneur’s
Personality
 Every person has a personality that is unique and
different from others. Each personality type has a
corresponding type of job that fits it. A certain
personality, however, may fit in more than one type of
job, although the level of fitness will be different with
each job.
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What is Personality?
 Personality refers to the pattern of characteristics that
distinguishes one person from another.
 Psychologists have made great advances in research about
personality. An interesting study is that one made by
Holland. His proposal indicates six personality types. They
are as follows:
1. realistic type;
2. investigative type;
3. artistic type;
4. social type;
5. enterprising type; and
6. conventional type
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Characteristics of Entrepreneurs
 Successful entrepreneurs possess certain characteristics
that are unique and different from those having other
occupations. Based on research by experts, the following
traits are considered vital to a successful career in
entrepreneurship:
1. drive;
2. thinking ability;
3. human relations ability;
4. ability to communicate;
5. technical knowledge;
6. reasonable risk taker;
7. self-confident;
8. goal setter;
9. accountable; and
10. innovative 44
What Motivates People to
Become Entrepreneurs?
 Not everyone desires to be an entrepreneur. Those who
do, however, are motivated by any or all of the
following:
1. desire to be one’s own boss
2. desire for financial rewards;
3. desire to create one’s own job security; and
4. desire to improve one’s quality of life.
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The Entrepreneur and The
Manager Distinguished
 The terms “ entrepreneur” and “ manager” are
sometimes used interchangeably. Although both jobs
are useful to the economy, each performs distinct
functions.
 A major distinction between the entrepreneur and the
manager is about orientation. The entrepreneur feels
confident of his ability to seize a business opportunity
regardless of the resource under his current control.
 The manager emphasizes the efficient utilization of
resources.
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CHAPTER V
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 A new business venture is confronted
with the immediate concern of gaining
at least a foothold in the market it
desires to serve.
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SOUND
BUSINESS
IDEA
ESTABLIS
NEW
HED
VENTURE
BUSINESS
SUCCESSF SUCCESS
UL IN
MARKET COMPETI
ENTRY TION
THE IMPORTANCE OF SOUND BUSINESS IDEAS

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The product or service offering may be
improved in terms of:
 Performance
 Maintenance Cost
 Acquisition Cost
 Salvage Value
 Uses
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WHAT IS A SOUND BUSINESS
IDEA?
 Procedure in determining the best business idea text
Methods of searching for ideas Screening generated
ideas Final selection Organizational culture and
creativity
 Defined as the economic opportunity which is within
the reach of the entrepreneur and which will provide
him with a desirable.
 The concept of sound business idea will be able to save
time, effort, and money in pursuing his goals.
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PROCEDURE IN DETERMINING
THE BEST BUSINESS IDEA
•Business Idea may be generated by anyone connected
with the firm. But it is very important that the most
applicable idea to the firm’s objective and resources is
chosen.
PREPARATION
OF THE LIST FINAL
OF BUSINESS SCREENING SELECTION
IDEAS
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 Methods of Searching Ideas Unanticipated means
work hobbies acquaintances Chance event
Deliberate Search Using search questions Idea
Prompting Someone else’s idea Customer Request
Some other events.
 General methods of generating business ideas are;
 unanticipated means and;
 deliberate search.
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METHODS OF SEARCHING FOR IDEAS
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UNANTICIPATED MEANS
 The persons work
 The persons hobbies
 The persons acquaintances; and
 A chance event encountered by the person.
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DELIBERATE SEARCH
• Disadvantage of unanticipated means in
idea generation is the difficulty of
ascertaining the exact date when the ideas
will come pouring in.
• Using search questions; and
• Idea prompting
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SEARCH
FOR
BUSINESS
IDEA
1. Unanticipated means
2. Deliberate search
3. Market feasibility
SCREENING 4. Technical feasibility
5. Financing feasibility
6. Financial feasibility
ADOPTION
OF THE
SELECTED
BUSINESS
IDEA
PREPARATION
OF FORMAL
PLANS
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Marketing Feasibility
 Stable and Sufficient Demand
 A business idea will not last if there is insufficient demand
for whatever product or service that is contemplated.
 Demand that remains constant or shows signs of growth
throughout long periods indicates the probability of market
feasibility, it must also be large enough to justify the
investments
 Competitive Strength
 The business idea must be such that the venture can
effectively compete with current or potential competitors.
 The competitive strength of the competitors must be
determined in terms of product offerings, prices, distribution
methods, and others.
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Technical Feasibility Business
Ideas
• Often times appear easy to execute, but it is not really so
when converting them into real products or services
with the required quality or quantity. Anything can go
wrong in the attempt to assemble the needed resources.
• Difficulties may be encountered in the procurement of
materials and manpower. Production difficulties could
take form of unstable supply of materials, unreliable or
fluctuating power supply, and others. Nevertheless,
technical concerns such as those must first be cleared
before subjecting the business idea to further
consideration.
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Financing Feasibility
 There must be sufficient funds to finance
operations.
 The proposed owners of the venture must have
sufficient capital or if sufficient, must be of good
credit standing in the community.
 Sources of Financing
 The proposed owner’s saving
 Relatives and friends
 Financing institutions like banks
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Financial Feasibility
 Profit is the result of the financial feasibility of the
business idea. Financial feasibility may be
determined through an analysis of the financial
prospects of the proposed business idea. Two steps
 The preparation of projected financial statements
 The determination and analysis of financial ratios
derived from the projected statements. Income
statement Balance sheet statement Cash flow
statement
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Projected Financial Statements
The forecast of something which will happen in the
future is referred to as a projected financial statement.
 The projected income statement is a financial record
summarizing a firm’s planned or expected financial
performance in terms of revenues, expenses, and
profits over a given time period.
 The projected balance sheet shows the planned or
expected financial position of the enterprise on a
particular date.
 The projected cash flow statement is one which shows
the planned or expected cash sale and or purchases.
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Final Selection
 Status quo- means all ideas listed passed the adapted
criteria
 A shorter list- means some of the ideas generated were
eliminated.
 Zero listing- means all business ideas generated and
listed were eliminated.
 The purpose of screening is to eliminate from the list
the generated business ideas that did not pass the
adapted criteria.
After screening, the list may appear to be any of the
following:
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Organizational Structure and
Creativity
Effective innovation assures the continuous survival and growth
of the enterprise, but innovation can only thrive in a creative
organization with a culture characterized by the following:
 Encouragement of creativity & risk-taking
 Rewards for creativity
 Open communication
 Allowance for errors
 A climate of participation
 Structural mechanisms that aid creativity
 Training in the creative process
 Flexibility
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CHAPTER VI
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STRATEGIC PLANNING
 Refers to the process of determining the primary objective
of the entrepreneurship and then adopting the course of
action & allocating resources to achieve those objectives.
 The Definition involves 3 steps:
1. Determination of the objectives
2. Adoption of course of action
3. Allocation of resources.
 Strategic planning provides the entrepreneur with a
systematic approach to the achievement of the firms
objectives. Strategic planning Determination of primary
objectives Adoption of course of action Allocation of
resources
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STRATEGIC
PLANNING
DETERMINATI
ON OF
PRIMARY
OBJECTIVES
ADOPTION OF
COURSES OF ALLOCATION
ACTION OF RESOURCES
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THE DEFINITION OF
OBJECTIVES
 Objectives of the firm are important components
of the firm’s strategic planning activities before
these are determined, the firm’s mission statement
must first be developed.
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THE MISSION STATEMENT
 It is referred to the basic description of the
fundamental nature, rationale, direction of the
firm.
1. How the entrepreneur intends to use his

resources
2. How the entrepreneurs expect to relate to the
ever changing environment
3. The kinds of values the entrepreneur intends to
offer to his customers.
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STRATEGIC OBJECTIVES
 It refers to specific performance targets that the
entrepreneurship hopes to accomplish. The objectives
define, in specific terms, how the firm’s mission will be
realized.
 Examples:
1. Expand production capacity by 50% within 2 years
2. Increase sales by 50% by 2012
3. Increase market share by 10% every two years
4. Increase the number of outlets by 3 within 3 years
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ADOPTION OF COURSES OF
ACTION
 A Strategy indicates how the entrepreneur will attempt to
accomplish the goals with the resources available.
 Example:
1. Establish branches in strategic locations
2. Design a system that will attract persons with high
potentials to work with the company
3. Engage in the recruitment of retailers from nearby
provinces and;
4. Engage in building up the company’s image as a reliable
supplier of quality poultry products.
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SWOT ANALYSIS
 The purpose of SWOT Analysis is to match the firm’s strength,
Weaknesses, Opportunities and the Threats to determined what
strategy to adopt.
OPPORTUNITIES
STRENGTHS
SWOT ANALYSIS
... FORECASTS OF
STRATEGY
FUTURE
PERFORMANCE
WEAKNESSES
THREATS
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METHODS TO BE USED
1. Develop Tactics
2. Deploying the Resources
 The specific aim of planning is to be able to deploy the

right quality and quantity of resources in the various
activities required to achieve the objective . The
resources would be indicated in terns of human and
nonhuman elements.
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 There are certain basic strategies that are necessary for the
survival of small business.
1. The flexibility strategy
2. The strategy of effectiveness as priority
3. The strategy of starting simple
 Small business ventures are not usually afforded the
advantages enjoyed by large business. Small business
resources are usually limited.
 For instance a small business cannot match the advertising
budget of a large business. Hindrances such as those
prevent the small business from pursuing its objectives. If
the small business is flexible enough.
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 Example:
When the small appliance dealer does not have the facility
to deliver goods directly to the customer, they can hire the
services of a small transport operator. The granting of a
discount to offset the delivery expense that will shouldered
by the customer.
1. Segment markets – identify the market segment with
which it has expertise then compete.
2. Efficient use of research and development
3. Think Small – Emphasis must be on profits rather than
sales growth and specialization rather than diversification
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1. Lack of Expertise – Few small business operators are
trained in strategic planning
2. Inability to Get Started
3. Lack of sufficient exposure to planning activities
4. Uncontrollable, often Intangible Variables
5. Resource Poverty – Planning requires time, but the
small business operators oftentimes does not have it
6. Focus On Daily Operations – Keeps the small business
operator so busy, left with no time for planning
7. Failure To Realize The Importance of Strategic
Planning.
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CHAPTER VII
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What is a Business Plan?
 The business plan is a document that helps the small
business owner determine what resources are needed
to achieve the objectives of the firm, and provide a
standard against which to evaluate results.
 The business plan is sort of business blueprint and it
keeps the entrepreneur on the right track. It gives a
sense of purpose to the business. It also provide
guidance, influence, and leadership as well as
communicating ideas about goals and the means of
achieving them to partners, associates, employees and
others.
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PURPOSE OF A BUSINESS
PLAN
A business plan is written for two main purpose.
They are the following:

1. To serve as management’s guide during the lifetime
of the business; and
2. To fulfill the requirement for securing leaders and
inventors.
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THE PLAN AS A GUIDE
 In the course of writing the business plan, the small
business operator (SBO) is afford sufficient time to
consider all factors relevant to operating the business.
Through analyses of the time environment and
diversion of what can be expected to happen, decision
about various aspects of business operation can be
considered in advance.
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PARTS OF THE BUSINESS
PLAN
1. Title page and contents;
2. Executive summary;
3. Description of the business;
4. Description of the product or services;
5. Market strategies;
6. Analysis of the competition;
7. Operations and management;
8. Financial data; and
9. Supporting documents
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Title Page and Contents
1. The name of the business;
2. The name/s of the proponents (in the case, the SBO);
3. Address;
4. Telephone number;
5. E-mail and website address;
6. The date; and
7. The name of the person who prepared the business plan.
The next page should provide the table of contents so the
readers can easily find the information they needed.
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Executive Summary
The executive summary is the portion of the business plan
that summarize the plan and states the objectives of the
business. If the SBO is intending to borrow money or is
seeking capital from investors, the following must indicated:
1. The capital needs of the business;

2. How the money will be used;
3. What benefits will be delivered by the business from the
loan or investment; and
4. In case of loan, how it will be repaid with interest, and in
the case of outside investment, how profit will be
generated.
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Description of the Business
This particular portion of the business plan is very
useful to the SBO, as well as prospective investors and
lenders.
This is divided into two parts:

1. A short explanation of the industry; and
2. A description of the business.
84
Market Strategies
1. Definition of the market;
2. Determination of the market share;
3. Positioning strategy;
4. Pricing strategy;
5. Distribution strategy; and
6. Promotional strategy;
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Definition of the Market
The objectives of market definition is to determine which
part of the total potential market will be served by the firm.
Determination of the Market

Share
The business plan will be more useful to the reader,
especially lenders and investors, if the project market share
of the firm is presented.
86
To Determine The Firm’s Market
Share, The Following Steps May
Be Used:
1. Determine the number of prospects in the target
market;
2. Determine the number of times the product or
service is purchased by the target market;
3. Figure out the potential annul purchase; and
4. Determine the percentage of the potential annual
purchase that the firm can attain.
87
POSITIONING STRATEGY
Positioning refers to how the firm differentiates its
product or services from those of the competitors and
serving a niche.
Positioning strategy is one where the firm identifies

target market segment and develops a strategy mix to
address the desires of that segment.
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Before Adapting A Positioning
Strategy, The Following Questions
Must First Be Considered:
1. What does the customer really want to buy from the
firm?
2. How is the product or service different from
competitors’?
3. What makes the product or services unique?
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Pricing Strategy
How the firm prices its product or services is a
very important component of the business plan.
Factors in Determining the Right

Price
1. Customer’s perception of value in the firm’s kind of
business;
2. Costs involved such as, overhead, storage, financing,
production, and distribution; and
3. Profit objectives of the firm.
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The Firms Price May Be
Established Through Any Of The
Following Methods:
1. Cost plus pricing
2. Demand pricing
3. Competitive pricing
4. Markup pricing
91
DISTRIBUTION STRATEGY
Distribution refers to the process of moving goods and
services from the firm to the buyers.
Common Distribution Channel are the

Following:
1. Direct sales
2. Original equipment manufacturer sales
3. Manufacturer’s representatives
4. Wholesalers
5. Brokers
6. Retailers
7. Direct malls
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1. Direct Sales Channel 3. Manufacturer’s Manufacturer
PRODUCER Representative
Channel Representative
ULTIMATE
USER Wholesaler
/Retailer
2. Original Equipment End User
Manufacturer
4. Wholesaler Manufacturer
Original Equipment
Manufacturer Channel
Wholesaler
Final Product
Manufacturer Retailer
End User End User

93
5. Broker Channel 7. Direct Mail
Channel
Distributor/
Wholesaler Company
6. Retailer
Broker
Channel
Retailer
Consumer
Retailer/
End User
Consumer
94
The Promotional Strategy
- How the company’s products or services will be
promoted is an important component of the market.
The Promotional Strategy 5. Personal sales
Includes the Following: a. pricing procedures;
b. rules on returns and
1. Advertising aspects: adjustments;
a. advertising budget; c. Methods of sales
b. positioning message; and presentation;
c. first year’s media schedule. d. Generation of leads;
2. Packaging e. Policies on customer
services;
f. Compensation of salesmen;
3. Public relations and
g. Responsibilities of the
4. Sales promotional salesmen.
95
Analysis of the Competition
The small business operator (or the entrepreneur) will
find it difficult to compete of his competitors are
unknown to him.
Determine the Following:
1. Strength and weaknesses of the firm’s competitors;
2. Strategies that will give the firm a competitive
advantage;
3. Barriers that can be developed to prevent
competitors or would-be competitors from exploiting
the firm’s market; and
4. Any opportunity that can be exploited.
96
Operations and Management
Operated on a continuing basis is an important
component of the business plan.
The Plan Contains the Following:
1. Organizational structure;
2. Operating expenses;
3. Capital requirements; and
4. Cost of good sold
97
Organizational Structure
Well defined and realistic organizational structure is an
important element of the business plan.
The Firm is Organized Along with the Following

Concerns:
1. Marketing (including sales, customer relations and
service);
2. Production (including quality assurance);
3. Research and development;
4. Management; and
5. Human resources.
98
Operating Expenses
It is an important aspects in the preparation of a
business plan.
Fixed/Variable are the 8. Payroll;
Following: 9. Payroll taxes and benefits;
1. Rent; 10. Bad debts;
2. Advertising and sales 11. Professional services;
promotion; 12. Insurance;
3. Supplies;
13. Loan payments;
4. Utilities
14. Depreciation; and
5. Packaging and shipping;
15. Travel.
6. Maintenance and repair;
7. Equipment leases; 99
Capital Requirements
Are necessary items in operating business.
Cost of Goods Sold
Businesses which carry inventories like those engaged in
manufacturing and trading must provide a list showing cost
of goods sold. The cost of goods of trading firms consists of
products purchased for resale, while the cost of goods of
manufacturing firms refer to total expenses incurred in
manufacturing the product that are intended to be sold.
These Expense Include the Following:

1. Material
2. Labor; and
3. Overhead
100
Financial Data
Are the most interested in the financial aspects of the
business plan.
The following statement must be presented in the business

plan.
1. Income statement;
2. Balance sheet;
3. Cash flow statement;
Income Statement
Shows the income, expenses, and profits of a firm over a
period of time. Also called as “statement of earnings.”
101
Balance Sheet
Is a type of financial statement that shows the financial
condition of the business as of given date.
Three areas of Balance Sheet:

1. Assets;
2. Liabilities; and
3. Owner’s equity
102
The Assets – assets portion of the balance sheet lists the
assets of the firm in order of liquidity, i.e., the most
liquid to the least liquid
This Portion is Subdivided into the Following:

1. Current assets
a. Cash
b. Accounts receivable
c. Inventory
2. Fixed assets
a. Capital and plant
b. Investments
103
The Liabilities – portion of the balance sheet is
classified as current or long-term. Current liabilities are
due in one year old less and they include the following;
1. Accounts payable; and
2. Accrued liabilities
3. Taxes that are due and payable.
Long Term Liabilities are Due in One More Than

One Year. They Include the Following:
1. Bonds payable;
2. Mortgage payable; and
3. Notes payable
104
The Owner’s Equity – this section refers to how much the owner
has in the business. It provides a useful means in evaluating the
company.
Cash Flow Statement – is also very useful tool for business

planners. It projects what the business plan means in terms of
pesos.
The following items are listed in a cash flows statement:
1. Cash; 10. R and D expenses;
2. Cash sales; 11. G and A expenses;
3. Receivables; 12. Taxes;
4. Other incomes; 13. Capital;
5. Total income; 14. Loan payments;
6. Material or merchandise; 15. Total expenses;
7. Direct labor; 16. Cash flow; and
8. Overhead; 17. Cumulative cash flow.
9. Marketing expenses; 105
Supporting Documents – The business plan would
be more useful if this is included.
Consist with the Following:

1. The owner’s resume;
2. Contracts with suppliers;
3. Contracts with customers or client;
4. Letters of reference;
5. Letters of intent;
6. A copy of the firm’s lease;
7. A copy of copyright or patent acquired, if capable;
and
8. Tax returns for the past three years.
106
CHAPTER VIII
107
Sole Proprietorship
Is a business owned and operated by a single person.
Advantage of Sole Proprietorship

Sole proprietorship are afforded with the advantage
pertaining to the following:
1. Ease and cost of formation;
2. Secrecy;
3. Distribution and use of profits;
4. Control of the business;
5. Government regulations;
6. Taxation; and
7. Closing the business.
108
Disadvantage of Sole Proprietorship
1. Possibility that the owner lacks ability and

experience;
2. Difficulty in attracting and keeping quality
employees;
3. Difficulty in raising additional capital;
4. Limited life of the firm; and
5. Unlimited liability of the proprietorship.
109
Partnership – is a legal association of two or more
persons as co-owner of an un-incorporated business. A
partnership is formed with the purpose of eliminating
some of the disadvantage of sole proprietorship while
retaining of their advantages.
Advantage of Partnership
1. Ease of formation;
2. Pooling of knowledge and skills;
3. More source of capital;
4. Ability to attract and retain employees; and
5. Tax advantage.
110
Disadvantage of Partnership
1. Unlimited liability;
2. Limited life;
3. Potential conflict between partners; and
4. Difficulty in dissolving the business.
Potential areas for disagreement

1. adding new products or services carried by the
business;
2. Hiring new employees;
3. Decisions on credit extensions; and
4. The grant of additional benefits to employees.
111
Types of Partnership
1. General partnership – association of two or more
persons, each with unlimited liability, and who are
actively involved in the business
2. Limited partnership – is an arrangement in which

the liability of one person is limited to the amount of
assets they invested in the business.
112
Partnership Agreement 9. Provisions for expelling a
partner;
1. Purpose of the business;
10. Provision for continuing the
2. Terms of the partnership;
business in the events of a
3. Goals of the partners and the partner’s death, illness,
partnership; disability, or withdrawal;
4. Financial contribution made by11. Provision for determining the
each partner at the beginning value of a departing partner’s
and during the lifetime of the interest and method of
business; payment of that interest
5. Distribution of profits and 12. Methods of setting disputes
losses; through mediation or
6. Withdrawal of contributed arbitration; and
assets or capital by partner; 13. Duration of the agreement
7. Management powers and and the terms of dissolution of
work responsibilities of each the business.
partner;
8. Provision for admitting new
113
partners;
Corporation – is a legally chartered enterprise with
most of the legal rights of a person, including the right to
conduct a business, to own and sell property, to borrow
money , and to sue and be sued.
Advantage of Corporation
1. Limited liability;
2. Ease of expansion;
3. Ease of transferring ownership;
4. Relatively long life; and
5. Greater ability to hire specialized management.
114
Disadvantage of Corporation
1. More expensive and complicated t organize;

2. Double taxation;
3. More extensive government restrictions and
reporting requirements; and
4. Employees lack personal identification and
commitment.
115
CHAPTER IX
116
Organizing the Small
Business
Organizing is the means by which
management blends human and nonhuman
resources through the design of a formal
structure of tasks and authority. The objective
of this function is to produce an
organizational structure for the firm which
indicates who performs which task and who
supervises whom.
117
The Appropriate Organizational
Structure
Every enterprise has its own objectives, so an
appropriate organizational structure must be adapted by
each.
Phase 1 Phase 2
Owner Owner
Production
laborers bookkeeper
Counter
Sales
person
118
Phase 3
bookkeeper
supervisor
Production Counter
laborers salesperson
119
The Owner’s Concern in the
Organizational Structure
In designing the firm’s organizational structure, the owner needs
to consider the following:
1. Activities necessary to reach the goals must be identified;
2. an analysis of the jobs to be performed must be made; and
3. The placement of people with the interest and qualifications in
performing the jobs.
The following concerns are reflected in the organizational
structure:
1. specialization; 4. span of management;
2. departmentalization; 5. hierarchy of objectives; and
3. delegation of authority; 6. degree of centralization.
120
The Formal Organization
Formal organizations are of various types.
They are the Following:
1. Line type;
2. Functional type;
3. Line and staff type; and
4. Committee type
121
The Importance of Organizational
Structure in Small Business
Many small business ventures will adapt the line
structure due to the following reasons:
1. Its simplicity is conducive to an immediate start-up
operations.
2. It is a good launching mechanism for the more
sophisticated organizational structures.
3. It is adaptable to small-scale operations as all
employees will be fully occupied with work.
122
Directing the Small Business
The small business operator needs to use the
following skills that are required for effective
directing:
1. communicating with subordinates;
2. providing counseling services;
3. motivating; and
4. maintaining discipline
123
Communicating with
Subordinates
Communication may be defined as a meaningful
exchange of information through messages.
Function of Communication
1. Information Function 3. Control Function

2. Motivational Function 4. Emotive Function
The Communication Process

1. Sender; 4. Decoder; and
2. Encoder; 5. Receiver.
3. Medium 124
Motivating
The popular methods and programs adapted to motivate
employees consist of:
1. Improving the organization of the elements of a job;

2. Modifying organizational behavior;
3. Harnessing recognition and pride; and
4. Financial incentives
125
Maintaining Discipline
The common reasons for disciplining employees are the
following:
1. Loafing 4. falsifying records; and
2. Absenteeism; 5. insubordination;
3. fighting;
Progressive Discipline
1. Verbal warning 4. A three-day suspension
2. Written warning 5. Termination
3. A one-day suspension
126
Controlling the Organization
Controlling Involves the Following:
1. Establishing goals and standards;

2. Measuring performance against the established goals
and standards; and
3.Reinforcing successes and correcting shortcomings
127
CHAPTER X
128
Small Business and the Marketing
Concept
 To achieve the desired match, the following
questions must be answered:
1. Who are my customers?

2. What products or services are needed by my customers?
3. At what price are the products or services required?
4. At what place are the identified products or services required?
5. At what time are the identified products or services required?
6. At what mode of delivery are the identified products or
services required?
129
•To provide answers to the questions cited
above, the firm must undertake the
following:
1. Devise a marketing strategy;

2. Engage in marketing research;
3. Develop a marketing mix; and
4. Identify the size of he target market
130
Target Market
In target marketing, the following steps are undertaken:
1. Identification of the target market;

2. Identification of the characteristics of the target market;
and
3. Measurement of the size of the target market area.
131
Identification of the Target Market
A target market is defined as the particular market segment the firm
wishes to serve.
Before Deciding on the Target Market

1. Mass market company
2. Market-segment company
3. Multi-segment company
Choosing the Target Market

1. the goods or service category of the firm;
2. the firm's goals;
3. what competitors are doing;
4. the size of the various segment;
5. the relative efficiency of each segment to the firm;
6. the resources required; and
7. other factors 132
Identifying the Characteristics of the Target
Market
Preschool
The Target Market
Elementary
High School
College
Vocational
133
Measuring the size of the Target Market
In the attempt to make a match between the firm and the
target market, the SBO must be provided with information
about the following:
1. number of potential customers; and

2. population growth trend of the target market area.
134
Promotions
The provisions of the required information
to prospective customer so that they are
persuaded to buy is called promotion. It
involves any or all of the following:
1. personal selling; and

2. sales promotion.
135
The Importance of Market
Research
Knowing the needs of the target customers will be very
helpful in designing the right market mix.
Types of Market Research
1. primary research; and

2. secondary research
136
Primary Research
1. observation;
2. survey; and
3. experimentation.
Secondary Research
1. the company's record;

2. libraries; and
3. government agencies.
137
CHAPTER XI
138
What is the Right Location?
•In any given area, there many

possible locations the SBO of
a firm may consider. One will
be situated on the extreme
side of the “right location.”
another will be on the extreme
of the “wrong locations.”
139
Selecting the Region
140
Steps in Selecting a Business
Location for Retailers
Viable Trading Specific

Community Area sites
1. List and
value
2. Make
final
choice
Central
Pedestrian traffic
Business
Vehicular traffic
District
Parking facilities
Economics Shopping
Transportation
Population center
Store composition
Competition Free
Specific site
standing
Terms of occupancy
location
141
Locating the Small Manufacturing
Firm
The small manufacturing firm

is saddled with limitations in choosing a
perfect location. Big cities are desirable
because of the percentage of population.
However, zoning laws implemented in big
cities are more restrictive than those
imposed in small towns and this made
difficulties with some manufacturing
firms. Even SMF wanted to be near a
market, they cannot be situated away from
the source of raw materials. This maybe
because of the following.
 The factory produces much waste in
processing the materials
 The raw materials are perishable and so
the factory should be situated close to
the source
 The raw materials such as iron and
stone are very bulky
 Distribution methods or expenses
make one site more cost-effective
142
Procedure in Locating a Small
Manufacturing Firm
1. Determine if the proposed are allows the type of manufacturing under
consideration.
2. Determine the following:
 adequacy of shipping facilities
 Types of building available for lease or rent
 Distance from factory to market and resulting shipping costs
3. Determine the availability of the following:
 Cheap fuel
 Power and water
 Skilled labor
 Financing facilities
143
CHAPTER XII
144
Promotion Defined
 Activities, including
advertisement, personal
selling, sales promotion,
public relations, and direct
marketing.
 Promotion and customer
demand. Are related in the
same way. There are
instances when promotion
increase the total customer
demand for the firms
products or services.
145
Types of Customers Demand
1. Established demand;
and
2. Newly created demand
(also referred to as
promoted demand)
Methods of Promotion
1. Advertising;
2.Personal selling;
3.Publicity;
4.Sales promotion; and
5. Word-of-mouth
146
Advertising
Types of Advertising Media
 Television;
 Public transformation;
 Radio;
 Yellow page;
 Newspapers;
 Direct mail;
 Magazine;
 Local cable TV;
 Outdoor billboards;
 Cinema;
 Special advertising;
 Other means
147
Personal
Selling
Types of Salesperson
 Order getters:
 current customer
salesperson
 new-business sales person
 Support personnel:
 missionary salesperson
 trade salesperson
 technical salesperson
 Order takers;
 inside order taker

 field order taker
148
The Selling Process
1. Prospecting & qualifying;

2. Pre-approach;
3. Approach;
4. Presentation &
demonstration;
5. Handling objections;
6. Closing; and
7. Follow-up.
149
Publicity
Types of Publicity
• News publicity
• Spontaneous news publicity
• Planned news publicity
• Finance release
• Product release
 Pictorial release
 Business feature article
 Background editorial release

 Service feature article
 Emergency publicity
150
Sales
Promotion
1. Point-of-purchase display;
2. Premium;
3. Trading stamp;
4. Sampling;
5. Product demonstration;
6. Retailer contest;
7. Sweepstakes;
8. Rebates; and
9. Trade show
151
CHAPTER XIII
152
Sources and financial applications of funds are two most
important concerns of a small business owner. Errors in decision-
making regarding these two concerns could put in jeopardy the
existence and survival of the firm.
Financial planning provides small business operator with a
detailed approach to managing the financial activities of the
firm.
Importance of Financial Planning
• Financial planning provides the small business operator a
detailed approach to managing the financial activities of the
firm.
• Financial planning minimizes the risk of errors brought by
decision-making choices in the middle of operations without
the benefit of careful analysis.
153
It is an estimate of the income and
expenditures for a future period of time; usually
one year.
154
155
156
157
BRICOLAJE’ ESPOSAS
PROJECTED STATEMENT OF CASH FLOWS
For the Year Ended December 2016-2018
2016 2017 2018
Cash Flows from Operating Expense
Net Income ₱44,217.27 ₱58,807.03 ₱75,634.20

Increase/Decrease in Inventory (7,000.00) (1,500.00) 4,500.00
Increase in Income Tax Payable 58,025.40 64,172.80 88,052.87
Cash Flow from Financing Activities
Cash Investment from Owners 21,000.00 - -
Net Cash Provided by Financing 21,000.00 - -

Activities
Increase in Cash and Cash Equivalents 79,025.40 64,172.80 88,052.87
Add: Cash and Cash Equivalents, Beginning - 79,025.40 143,198.20
Cash and Cash Equivalents, Ending ₱ 79,025.40 ₱143,198.20 ₱231,251.07
158
159
COST OF GOODS SOLD MANUFACTURED
2016 2017 2018
Direct Materials:
Beginning Inventory - 2,000.00 3,000.00
Purchase of Direct Materials ₱82,368.00 ₱85,662.72 ₱89,089.23
Cost of Direct Materials Available for Use 82,368.00 87,662.72 92,089.23
Ending Inventory (2,000.00) (3,000.00) (1,000.00)
Direct Materials Used 80,368.00 84,662.72 91,089.23
Direct Labor: 48,960.00 51,405.00 53,980.00
Manufacturing Overhead:
Electricity 1,320.00 1,320.00 1.320.00
Total Manufacturing Overhead 1,320.00 1,320.00 1,320.00
Cost of Goods Manufactured ₱130,648.00 ₱137,387.72 ₱146,389.23
160
Sales Budget – is applicable to service firms identifies
each service and its quality that will be sold.
SALES
YEARS PRODUCTS UNITS SELLING PRICE SALES
Safety Pin Bracelet 2,304 ₱34.50 ₱79,488.00

2016 Pearl Bracelet 3,744 22.48 84,165.12
Wax Cord Bracelet 3,744 27.12 101,537.28
TOTAL ₱265,190.40
Safety Pin Bracelet 2,419 ₱36.92 89,309.48

2017 Pearl Bracelet 3,931 24.05 94,540.55
TOTAL ₱297,927.65
Safety Pin Bracelet 2,540 ₱39,50 100,330.00

2018 Pearl Bracelet 4,128 25.73 106,213.44
TOTAL ₱334,717.84
161
162
1. Balance sheet – gives a financial profile of a business at any given
point, showing its assets, liabilities, and net worth.
2. Income statement – shows the revenue and other income,
expenses and net income for small business covering a period of time,
usually a year.
Four different measures in income statement:
a. gross profit ( sales minus cost of goods sold)
b. operating profit ( gross profit minus operating expenses)
c. profit before tax ( operating profit plus other income )
d. Net profit ( profit before tax minus the tax liability )
3. Statement of changes in financial position – designed to
explain the financial changes that occur in the company from one
accounting period to the next.
163
Calculating the Break-Even Point
1. Calculating the break-even point in units

BEPU= F/P-V
2. Calculating the break-even point in pesos
BEPP = F/1 – V/P
where P = price per unit
F = fixed costs
V = variable cost per unit 164
BRICOLAJE’ESPOSAS
BALANCE SHEET
2016 2017 2018
ASSETS
Current Assets
Cash ₱79,025.40 ₱143,198.20 ₱231,251.07
Inventory 7,000.00 8,500.00 4,000.00
Total Current Assets 86,025.00 151,698.20 235,251.07
Total Assets 86,025.00 151,698.20 235,251.07
LIABLITIES AND OWNER’S EQUITY
Current Liability
Income Tax Payable 20,808.13 27,673.90 35,592.57
Owner’s Equity
Partner’s Capital 65,217.27 124,024.30 199,658.50
TOTAL LIABILITIES AND EQUITY ₱86,025.00 ₱151,698.20 ₱235,251.07
165
BRICOLAJE’ ESPOSAS
PROJECTED INCOME STATEMENT
2016 2017 2018
Sales ₱265,190.40 ₱297,927.65 ₱334,717.84

Less: Cost of Goods Sold 125,648.00 136,887.72 148,889.23
Gross Profit from Sales 139,542.40 161,039.93 185,828.61
Operating Expenses
Supplies Expense 417.00 417.00 417.00

Sales Salaries 72,000.00 72,000.00 72,000.00
Advertisements and Promotional Expense 2,100.00 2,100.00 2,100.00
Total Operating Expenses 74,517.00 74,559.00 74,601.84
Income Before Tax 65,025.40 86,480.93 111,226.77

Income Tax (32%) 20,808.13 27,673.90 35,592.57
Net Income ₱44,217.27 ₱58,807.03 ₱75,634.20
166
167
168
169
170
171
172
CHAPTER XIV
173
````Risks – refers to the uncertainty about loss or injury.
```When risks are not managed properly, they could cause
difficulties to the firm and which could even lead to
bankruptcy.
Major Types of Risks

1. Speculative risk – involves a chance of either profit or loss.
2. Pure risk – involves a threat of loss with no chance of
profit.
174
Types of
Risk
Speculative Pure
Event Event
(Desired) (Dreaded)
Occured
Did not
Did not
Occured
Occured
occured
No
Profit Loss profit/
Loss
No
loss175
176
Methods of Dealing with Risk
1. Avoiding the risk – method of dealing with risk
wherein the source of risk is eliminated.
2. Reducing the risk – refers to the steps undertaken to
reduce the likelihood of a loss.
3. Assuming the risk – the company assumes the risk
and gets ready for whatever loss comes from the risk
method.
4. Shifting the risk to an insurance company – the
process where the firm agrees to pay another firm in a
written contract.
177
Two General Classifications of
Insurance Coverage
(1) Life insurance policies – those that cover risks
of losing one’s life.
(2) Non-Life insurance policies – ex. Motor car,
surety, etc.
178
Two General Classifications of
Insurance Coverage
Insurance
Coverages
Life Non-Life
Fire and allied risk

Motor car
Loss of Life Marine
Health Surety
Retirement General Liability
Miscellaneous
Risks
179
180
181
Types of Life Policies
Endowment Other
Term Life Whole Life Types
Life
Renewable Limited Payment

Term Group Life
Single Premium
Decreasing Credit Life
Modified Life
Term Variable Life
Adjustable Life
Universal Life
182
183
184
185
Switmar J. Awitan
Blk 34 Lot 7, Frontiera Subdivison
Gran Europa Lumbia, Cagayan de Oro City
[email protected]
09264729223
Career Objective: To enhance my professional skills in a dynamic and fast paced workplace.
Work Experience:
Year Company Place
March-May 2016 Maybank Tiano-Velez St., CDO
Seminars Attended:
Year Seminar Title
February 7, 2015 Business Leadership Seminar
February 13, 2016 Molding Future Business Leaders
August 31, 2015 Finance Leadership & Literacy Convergence
Educational Background:
Tertiary Level: Lourdes College
Course: Bachelor of Science in Business Administration major in Financial Management
Year Graduated: 2017
Secondary Level: Lourdes College Basic Education Department
Personal Background:
Date of Birth: April 10, 1997
Place of Birth: Puntod, Cagayan de Oro City
Citizenship: Filipino
Civil Status: Single
Religion: Roman Catholic
186
Queenie T. Delvo
Blk 9 Lot 12, Solomon St., San Agustin Valley Homes
Upper Carmen, Cagayan de Oro City
[email protected]
09357593988
Career Objective: To use my skills in the best possible way for achieving the company’s goals.
Work Experience:
Year Company Place
April-May 2016 Development Bank Corrales St., CDO
of the Philippines
Seminars Attended:
Year Seminar Title
Course: Bachelor of Science in Business Administration major in Marketing Management
Secondary Level: Southern Philippines College
Date of Birth: September 23, 1996
Place of Birth: Kulambogan, Lanao del Norte
187
Shemaiah L.Dinogyao
Zone 2 Katipunan
Villanueva, Misamis Oriental
[email protected]
09368419889
Career Objective: To sharpen my knowledge and enhance my skills in the workplace.

Work Experience:
Year Company Place
Seminars Attended:
Year Seminar Title
September 19, 2015 Social Media and SEO: Turning the Tides through the
Digital Age
January 22, 2016 All about Franchising
Secondary Level: St. Mary’s Academy of Jasaan
Date of Birth: December 3, 1997
Place of Birth: Northern Mindanao Medical Center
Religion: Born Again Christian 188
John Eleazar T. Pacana
429 Lyra St. Terry Hills Subdivision
Bulua, Cagayan de Oro City
[email protected]
09269659477
Career Objective: Seeking a responsible job with an opportunity for professional challenges.
Work Experience:
Year Company Place
N/A N/A N/A
Seminars Attended:
Year Seminar Title
January 22, 2016 Business Franchising Seminar
September 19, 2015 Social Media and SEO: Turning the Tides through the Digital Age
Secondary Level: DepED ALS
Date of Birth: September 20, 1990
Place of Birth: Northern Mindanao Medical Center
189
Karlo C. Pacana
Prk. 19 Manticao, Misamis Oriental
[email protected]
09177085215
Career Objective: To solve problems in an effective and creative manner in a challenging position.
Work Experience:
Year Company Place
March-May 2016 Lorenzo Tan Tiano-Velez St.
Multi-Purpose
Cooperative
Seminars Attended:
Year Seminar Title
Secondary Level: Mindanao University of Science and Technology
Date of Birth: July 28, 1993
Place of Birth: Iligan City
Religion: IFI 190
Joy Ivy Eve E. Palac
Zone 9, Phase 4, Blk 5 Lot 11
Macanhan, Carmen, Cagayan de Oro City
[email protected]
09363025704
Career Objective: To obtain a full time position in a company which offers a professional working environment
and enables me to develop my skills.
Work Experience:
Year Company Place
Seminars Attended:
Year Seminar Title
Secondary Level: Carmen National High School
Date of Birth: December 22, 1996
Place of Birth: Mary’s Child Lying-In Clinic
Religion: Roman Catholic 191
Jelly Mae D. Uy
Villamar Subdivision
Iponan, Cagayan de Oro City
[email protected]
09759150193
Career Objective: To build a long-term career in a company with opportunities for career growth.
Work Experience:
Year Company Place
April-May 2016 Exquisite Lending Ilaya Carmen, CDO
Services Inc.
Seminars Attended:
Year Seminar Title
Secondary Level: Iponan National High School
Date of Birth: July 11, 1995
Place of Birth: Tondo, Manila
Religion: Roman Catholic 192

Entrepreneurship and Small Business Management

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Entrepreneurship and Small Business Management

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1

1. Human resources (labor supply,

A small business may be defined as “one having total

Example: Bakeries, Tricycle Sidecar Assembly Shops,

Example: Soft drinks

Examples: Retail Drugstores, Fast Food Shops,

by Entrepreneurships -Between buyers and sellers

Figure 5. The Effect of Adherence to Ethical Standards

Example: selling faster

THE IMPORTANCE OF SOUND BUSINESS IDEAS

1. How the entrepreneur intends to use his

 The specific aim of planning is to be able to deploy the

They are the following:

1. The capital needs of the business;

This is divided into two parts:

Determination of the Market

Positioning strategy is one where the firm identifies

Factors in Determining the Right

Common Distribution Channel are the

End User End User

The Plan Contains the Following:

The Firm is Organized Along with the Following

These Expense Include the Following:

The following statement must be presented in the business

Three areas of Balance Sheet:

This Portion is Subdivided into the Following:

Long Term Liabilities are Due in One More Than

Cash Flow Statement – is also very useful tool for business

Consist with the Following:

Advantage of Sole Proprietorship

1. Possibility that the owner lacks ability and

Potential areas for disagreement

2. Limited partnership – is an arrangement in which

1. More expensive and complicated t organize;

1. Information Function 3. Control Function

The Communication Process

1. Improving the organization of the elements of a job;

Controlling Involves the Following:

1. Establishing goals and standards;

1. Who are my customers?

1. Devise a marketing strategy;

1. Identification of the target market;

Before Deciding on the Target Market

Choosing the Target Market

The Target Market

1. number of potential customers; and

1. personal selling; and

Types of Market Research

1. primary research; and

1. the company's record;

•In any given area, there many

Viable Trading Specific

The small manufacturing firm

 inside order taker

1. Prospecting & qualifying;

 Background editorial release

Net Income ₱44,217.27 ₱58,807.03 ₱75,634.20

Increase in Income Tax Payable 58,025.40 64,172.80 88,052.87

Cash Flow from Financing Activities