Economic Contributions of Small Business
INTRODUCTION
Micro, small, medium enterprises defined Micro, small, and medium enterprises (MSMEs) are defined as any business activity/enterprise engaged in industry, agri-business/services, whether single proprietorship, cooperative, partnership, or corporation.
MSMEs have value falling under the following categories:
By Asset*:
MICRO:
Up to P3,000,000
SMALL:
P3,000,001 to P15,000,000
MEDIUM
P5,000,001 to 100,000,000
LARGE:
Above 100,000,00
This table shows that in a small business it should have P3, 000,001 to P15, 000,000 asset/capital to start your own business and to maintain its operations.
By of employees:
MICRO:
1 – 9 employees
SMALL:
10 – 99 employees
MEDIUM
100 – 199 employees
LARGE:
More than 200 employees
This table shows that in a small business that it only takes 10 – 99 employees needed to operate your business, and it is not that costly unlike the medium and large businesses.
*As defined under Small and Medium Enterprise Development (SMED) Council Resolution No. 01 Series of 2003 dated 16 January 2003
Source: http://www.dti.gov.ph/dti/index.php?p=532
Small Businesses to the Economy
In many countries, small businesses contribute greatly into their economy. Most of the large businesses in many countries started as a small business. They contribute to the society by selling their products to customers, products that people need. They also provide employment opportunities to people, which can become reasonable career paths and choices. And it could give people experiences, education, and training to make their own businesses.
There are many type of small business, these include:
Sole Trader
A sole trader, also known as a sole proprietor only has one owner. The owner makes all the decisions and is fully responsible for the firm and they are also liable for all debts. The business has the same legal identity as its owner and if the firm cannot meet its debts, the owner must sell his/her
Micro, small, medium enterprises defined Micro, small, and medium enterprises (MSMEs) are defined as any business activity/enterprise engaged in industry, agri-business/services, whether single proprietorship, cooperative, partnership, or corporation.
MSMEs have value falling under the following categories:
By Asset*:
MICRO:
Up to P3,000,000
SMALL:
P3,000,001 to P15,000,000
MEDIUM
P5,000,001 to 100,000,000
LARGE:
Above 100,000,00
This table shows that in a small business it should have P3, 000,001 to P15, 000,000 asset/capital to start your own business and to maintain its operations.
By of employees:
MICRO:
1 – 9 employees
SMALL:
10 – 99 employees
MEDIUM
100 – 199 employees
LARGE:
More than 200 employees
This table shows that in a small business that it only takes 10 – 99 employees needed to operate your business, and it is not that costly unlike the medium and large businesses.
*As defined under Small and Medium Enterprise Development (SMED) Council Resolution No. 01 Series of 2003 dated 16 January 2003
Source: http://www.dti.gov.ph/dti/index.php?p=532
Small Businesses to the Economy
In many countries, small businesses contribute greatly into their economy. Most of the large businesses in many countries started as a small business. They contribute to the society by selling their products to customers, products that people need. They also provide employment opportunities to people, which can become reasonable career paths and choices. And it could give people experiences, education, and training to make their own businesses.
There are many type of small business, these include:
Sole Trader
A sole trader, also known as a sole proprietor only has one owner. The owner makes all the decisions and is fully responsible for the firm and they are also liable for all debts. The business has the same legal identity as its owner and if the firm cannot meet its debts, the owner must sell his/her