Organization Management Module 15

ORGANIZATION
AND MANAGEMENT
MODULE 15:
The Basic Concepts of Small

Family Business
Instructress: Ms. Maj Nonato
COPYRIGHT © 2022 I S SCHOOL OF TECHNOLOGY & SKILLS DEVELOPMENT INC.

The Basic Concepts of Small Family
Business
• Entrepreneurship – innovative, creative, risk-taking,

growth-oriented behaviour that brings new
opportunities for individuals or organizations to start
new business and to produce new products or services
that are beneficial to society.
• Entrepreneurial ventures- organizations that persistently
pursue opportunities are characterized by creative,
innovative activities that have service, growth, and
profitability as principal goals.
• Small business – a business that has fewer than 100 –

500 workers (depending on the prevailing commercial
law in a particular country), independently owned,
operated, and financed; not always entrepreneurial in
orientation and does not dominate its industry; capital is
low but capable of producing goods or rendering services
designed to satisfy particular needs of customers.

What are the Entrepreneurial Procedure?
Steps in Entrepreneurial Procedure - Marketing and sales activities

• Implement and monitor the business venture
• Formulate the business vision and mission statements • Maximize the utilization of business resources
• Segment of the market • Creative and Innovative
• Find the target market • Good Planners
• Understand the environment • Customer-oriented
• Open-minded
• Develop the business Plan
• Flexible
• Persistent
a) Business plan is a written description of your business's future, • Confident
a document that tells what you plan to do and how you plan to do • Organized
it. If you jot down a paragraph on the back of an envelope • Updated/Well-informed
describing your business strategy, you've written a plan, or at least • Team players
the germ of one. Business plans are inherently strategic. • Knowledgeable
• Risk-takers
Business Plan b) Business Registration – a government requirement that order
new business owners to furnish government agencies with necessary
- Executive summary - Products and services information prior to the legal operation of their business
- Environmental analyst - Operations organization. The legal forms of business is determined by its
- Industry analysis - Management and ownership ownership or proprietorship.
- Market analysis - Financial Data Family Business- a business owned and financially controlled by
- Company description - Time table members of a family
Enterprise – any projected task or work; undertaking

What are the Forms of Business?
1) Single or Sole Proprietorship – a business owned by one person only. The owner and the business are considered as one, meaning
the owner’s income and the business income are one and the same and the business income is taxed as a personal income. Decision
making is the sole responsibility of the owner and if the business succeeds, he or she gets all the profits. It it fails, then he or she
suffers all the losses and must pay whatever debt are incurred. The business ends upon the death of the owner or single proprietor.
2) Partnership – a business formed when two or more partners formally agree to be joint owners of a business. The resources (money
and other assets) and talents (skills, experience, and management expertise) of all involved may be pooled together. All partners share
the profits equally, unless otherwise specified in their partnership agreement.
3) Corporation – a business entity involving five or more persons owning it. It is registered and recognized by law as a “legal person”
that has legal rights and responsibilities, can sue or be sued in court, can own and sell properties, and can transact or enter into
contracts. Corporation ownership is divided into units known as shares of stocks and owners of these are called stockholders. A board
of directors, elected by the stockholders on a regular basis, manage the corporation which is run according to terms specified by their
by laws and articles of incorporation. The corporation’s life does not end with the death of stockholder or by the selling of the stocks of
a particular stockholder.
4) Cooperative - a group enterprise made up of several traders, consumers, or producers who are interested to produce or trade as a
group. The cooperatives’ original purpose was to supply those involved with goods or services at lower costs compared to those bought
from retailers. Later types of cooperative have emerged that include farmers, producers, and credit cooperatives. A group of officers,
called board of directors and ommittees, headed by a chairman, manage the cooperative’s activities. The cooperative’s life is not
affected by the death of any of its members nor by the selling of a member’s shares. It can, however, be dissolved by a majority vote of
the board of directors and a resolution signed by at least two-thirds of the general membership.

What are the Forms of Business?
Government agencies where the business to be registered:
• Department of Trade and Industry(DTI)

• Securities and Exchange Commission (SEC) (Partnership and Corporation)
• Cooperative Development Authority (CDA)
• Barangay clearance and securing Community Tax Certificate
• Mayor’s Permit and license to operate
• Fire Safety Clearance – Bureau of Fire Protection (BFP)
• Bureau of Internal Revenue (BIR)
• Pag-ibig Fund (Home Development Mutual Fund)
• Department of Labor and Employment (DOLE)
• Social Security System(SSS)
• Philippine Health Insurance Corporation(Philhealth)

Here are the Sample of Legal Form of
Business

Business

Business

FORMATIVE ASSESSMENT



Organization Management Module 15

Uploaded by

Copyright:

Available Formats

Organization Management Module 15

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Organization Management Module 15

Uploaded by

Copyright:

Available Formats

ORGANIZATION

The Basic Concepts of Small

Instructress: Ms. Maj Nonato

COPYRIGHT © 2022 I S SCHOOL OF TECHNOLOGY & SKILLS DEVELOPMENT INC.

• Entrepreneurship – innovative, creative, risk-taking,

• Small business – a business that has fewer than 100 –

COPYRIGHT © 2022 I S SCHOOL OF TECHNOLOGY & SKILLS DEVELOPMENT INC.

Steps in Entrepreneurial Procedure - Marketing and sales activities

Enterprise – any projected task or work; undertaking

COPYRIGHT © 2022 I S SCHOOL OF TECHNOLOGY & SKILLS DEVELOPMENT INC.

COPYRIGHT © 2022 I S SCHOOL OF TECHNOLOGY & SKILLS DEVELOPMENT INC.

Government agencies where the business to be registered:

• Department of Trade and Industry(DTI)

COPYRIGHT © 2022 I S SCHOOL OF TECHNOLOGY & SKILLS DEVELOPMENT INC.

COPYRIGHT © 2022 I S SCHOOL OF TECHNOLOGY & SKILLS DEVELOPMENT INC.

COPYRIGHT © 2022 I S SCHOOL OF TECHNOLOGY & SKILLS DEVELOPMENT INC.

COPYRIGHT © 2022 I S SCHOOL OF TECHNOLOGY & SKILLS DEVELOPMENT INC.

COPYRIGHT © 2022 I S SCHOOL OF TECHNOLOGY & SKILLS DEVELOPMENT INC.

COPYRIGHT © 2022 I S SCHOOL OF TECHNOLOGY & SKILLS DEVELOPMENT INC.

COPYRIGHT © 2022 I S SCHOOL OF TECHNOLOGY & SKILLS DEVELOPMENT INC.

You might also like