Concept Notes 9: Special Topic in Management

INTRODUCTION

An entrepreneur is a person who owns a small business and staffs it as needed to

meet customer needs. Entrepreneurship means that a business owner will focus
on creating a market for his/her products or services based on a business plan.
This focus on testing a business idea requires an entrepreneur to decide early on
if he will assume the role of small business manager or hire another person to
oversee daily operations.

OBJECTIVES
at the end of this module, you should be able to:

• Explain how to start a small-family business.

• Identify the business legal forms and requirements.
• Appreciate the role of small-family business in an improving economic status and
leadership.

INFORMATION

Small Business Management and Entrepreneurship Planning

Small-business management requires planning. Some entrepreneurs take

advantage of resources at a small-business development center. At a minimum,
becoming an entrepreneur should include consulting a business checklist. If you
write a business plan that addresses all or most of the questions in a checklist, you
have a better chance of success.

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 If you decide to delegate the management of
small business operations, you can trust
your manager to implement the specific
details of the business plan in an
incremental way, building infrastructure
with available resources.

7 Characteristics of Successful
Entrepreneur
By Peter Daisyme

Success in entrepreneurship isn’t just about your idea or your money. Plenty of people
have interesting ideas or a lot of cash to throw around — and they never quite manage
to find success in their ventures.

If you want to be an entrepreneur, take a step back and evaluate whether or not you
have the following characteristics. (And remember: if you don’t have these traits now,
you can develop them down the road to improve your chances of success.)

1. Self-Motivation
One of the most important traits of entrepreneurs is self-motivation. When you
want to succeed, you need to be able to push yourself. You aren’t answerable to anyone
else as an entrepreneur, and that sometimes means that it’s hard to get moving without
anyone to make you. You need to be dedicated to your plan and keep moving forward —
even if you aren’t receiving an immediate paycheck.

2. Understand What You Offer

As an entrepreneur, you need to know what you offer, and how it fits into the
market. Whether it’s a product or a service, you need to know where you fit in. That
means you need to know when it’s time to tweak things a little bit. This also includes
knowing whether you are high end, middle of the road or bargain. Being able to position
yourself and then adjust as needed is an important part of entrepreneurship.

3. Take Risks
Successful entrepreneurs know that sometimes it’s important to take risks.
Playing it safe almost never leads to success as a business owner. It’s not about taking
just any risk, though. Understanding calculated risks that are more likely to pay off is an
important part of being an entrepreneur. You’ll need to be willing to take a few risks to
succeed.

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 4. Know How to Network
Knowing how to network is an important part of entrepreneurship. Sometimes
who you know is an important part of success. Being able to connect with others and
recognize partnership opportunities can take you a long way as a business owner.
Figure out where to go for networking opportunities and make it a point to learn how to
be effective.

5. Basic Money Management Skills and Knowledge

We often think of successful entrepreneurs as “big picture” people who don’t
worry so much about managing the day to day. And it’s true that you might have an
accountant or other team members to help you manage the business. However, if you
want to be successful, you should still have basic money management skills and
knowledge. Understand how money works so that you know where you stand, and so
that you run your business on sound principles.

6. Flexibility
To a certain degree, you need to be flexible as an entrepreneur. Be willing to
change as needed. Stay on top of your industry and be ready to adopt changes in
processes and product as they are needed. Sometimes, you also need flexibility in your
thinking. This is an essential part of problem-solving. You want to be able find unique
and effective solutions to issues.

7. Passion
Finally, successful entrepreneurs are passionate. They feel deeply about their
product or service or mission. Passion is what will help you find motivation when you
are discouraged and it will drive your forward. Passion is fuel for successful
entrepreneurship. If you find yourself losing your passion, that might be the clue that
it’s time to move on to something else (that stokes your passion). There are many serial
entrepreneurs that create successful businesses, sell them, and then create something
else.

As you consider your characteristics, think about how to better develop them to help
you become a better entrepreneur.

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Legal requirements for starting a business in the Philippines

Whether the type of enterprise you want to run in the Philippines is a sole proprietorship, a
partnership, or a corporation, the basic legal requirements of starting a business in the
Philippines are the following:

1. Register the business with the corresponding department or agency

Sole proprietorships must be registered with the Department of Trade and Industry (DTI).
Partnerships and corporations, on the other hand, must be registered with the Securities
and Exchange Commission (SEC). The name of the business is also included in the
registration.

2. Obtain a business permit

Head to the local government unit of the place you intend to operate your business in.
Secure a business or mayor’s permit. Each municipality has its own specific requirements
and procedures for the registration of businesses, so be sure to check the individual
websites of these areas for more information.

Many of the basic requirements include:

• DTI or SEC registration form
• Barangay clearance
• Zoning clearance
• Sketch of the location
• Land title or contract of lease
• Community tax certificate
• Public liability insurance
• Occupancy permit
• Sanitary permit
• Environmental permit
• Fire permit

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3. Register with the Bureau of Internal Revenue (BIR)
After obtaining the necessary documents and permits, register the business with the
Bureau of Internal Revenue (BIR). Business owners need to get a Taxpayer Identification
Number (TIN) from the Revenue District Office (RDO) within the registered location of the
business.

There are two kinds BIR forms you can fill out depending on the type of business you’re
starting. These forms are:
• Form 1901 for people who are self-employed, single proprietors, or
professionals
• Form 1903 for partnerships and corporations

4. Registering with the SSS, PhilHealth, and Pag-IBIG Fund

If you hire employees, register them with the necessary government programs. The Social
Security System (SSS) is a social insurance program that collects the monthly contribution
of employees, along with the share of their employer. The SSS gives employees health and
retirement benefits from their monthly contributions, along with a variety of small loans.
An SSS membership is mandatory for all employees who are 60 years old and below.

The Philippine Health Insurance Corporation (PhilHealth) is another government agency

that requires monthly contributions from the employee and the employer.

The Home Development Mutual Fund (Pag-IBIG Fund) provides a variety of housing loans
to employees. Monthly contributions are deducted from the salary of the employee.

Sources: https://www.filepino.com/business-registration/legal-requirements-for-starting-a-
business-in-the-philippines/

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