Feasibility Study on Small Businesses
CHAPTER I
THE PROBLEM AND ITS BACKGROUND
INTRODUCTION
Most of the Filipinos are business-minded. Small or big, it doesn’t matter. Their main purpose o to earn profit and make a living. There are three (3) legal forms or business organizations; sole proprietorship, partnership and corporation. Among all these, what is abundant hare in our country are sole proprietors which are almost eighty percent. Sole proprietorship is a business owned by one person who operates it for his/her own profit. The majority types are found in the while-sale, service, construction industries and the retail. This retail is popularly known as the sari-sari stores. Typically, proprietors raise their capital from personal resources or by borrowing and they are solely responsible for all their business decisions. On the other hand, we also have partnerships which consist of two or more owners doing business together for profit. The most common types are finance, insurance, real estate firms, public accounting and stock brokerage. The difference of partnership to sole proprietorship is that when it comes to raising funds, the former is more capable of paying their liabilities. Yet we still have the third type of business which is the corporation. Corporation is an artificial being created by law. It is the largest portion of corporate business receipts and net profit. They are only small in number but when it comes to profit, they can earn a lot. Although corporations are involved in all types of business manufacturing corporations are the largest. Then when it comes to financing their business, they have better access because they guarantee their creditors sure payment. Metro Manila is the center of all business transactions, local and international. It is in this city where almost all kinds of businesses and business men are innovating. Industrial, textile, manufacturing, information and technology-related companies do not only exist but grows in their own ways.
THE PROBLEM AND ITS BACKGROUND
INTRODUCTION
Most of the Filipinos are business-minded. Small or big, it doesn’t matter. Their main purpose o to earn profit and make a living. There are three (3) legal forms or business organizations; sole proprietorship, partnership and corporation. Among all these, what is abundant hare in our country are sole proprietors which are almost eighty percent. Sole proprietorship is a business owned by one person who operates it for his/her own profit. The majority types are found in the while-sale, service, construction industries and the retail. This retail is popularly known as the sari-sari stores. Typically, proprietors raise their capital from personal resources or by borrowing and they are solely responsible for all their business decisions. On the other hand, we also have partnerships which consist of two or more owners doing business together for profit. The most common types are finance, insurance, real estate firms, public accounting and stock brokerage. The difference of partnership to sole proprietorship is that when it comes to raising funds, the former is more capable of paying their liabilities. Yet we still have the third type of business which is the corporation. Corporation is an artificial being created by law. It is the largest portion of corporate business receipts and net profit. They are only small in number but when it comes to profit, they can earn a lot. Although corporations are involved in all types of business manufacturing corporations are the largest. Then when it comes to financing their business, they have better access because they guarantee their creditors sure payment. Metro Manila is the center of all business transactions, local and international. It is in this city where almost all kinds of businesses and business men are innovating. Industrial, textile, manufacturing, information and technology-related companies do not only exist but grows in their own ways.