Trisha T.

Dela Cruz October 29, 2022

Master’s in Business Administration BM 214 Business Environment

SITUATIONAL DISCUSSION: The Philippine Business Environment

1. Pick among the different Business Organization – Small & Medium Enterprises (SMEs) in

the Philippines. Then give a brief description of your chosen business organization and its

operation. Concentrate more on how the business climate contribute in the growth of

Philippine economy.

Answer:
According to Srinivas, SMEs are limited in nature since they typically employ

between 10 and 200 people (depending on the country's legislation), have limited working

capital and assets, and have a lower overall turnover than larger companies. Additionally,

the majority of SMEs only have one owner, who may also be the only employee. While

this may generally be the case, definitions place a limit on the number of employees an

organization can have before it qualifies as a SME at 250 to 500. The term "single" can

also refer to a single item produced or service rendered. Additionally, SMEs are basically

local in character since their target markets are typically constrained to the region in which

they are situated or because they may be 'local' in the sense that they run their businesses

from their residences.

The term "SMEs" refers to a wide range of businesses, including small

manufacturing facilities, processing units, trading firms, export-import firms, distribution,

retailing, rental firms, service providers, and more. The wholesaler and retail trade is one

of the commercial entities that falls under small and medium enterprises. The distribution
 trades sector, which includes the retail and wholesale trades, represents the intermediary

steps in the distribution of goods between producers and consumers of goods. The efficient

and effective flow of goods from producer to consumer depends on the provision of

wholesale and retail trade services.

We are all aware that there are low unemployment rates and that during the past

few years, the economy has been strengthening. Business owners are thinking about

expanding because revenues are rising overall and many retail and wholesale operations

are flourishing. As business owners' confidence in the economy rises, they borrow more

money and start more retail and wholesale operations, which helps the banking sector by

generating jobs and additional revenue.

2. Choose among the types of entrepreneurship in the Philippines. Explain your choice.

Answer:

Microbusinesses, which start with a lesser amount of funding and employ fewer

people, are referred to as microenterprises. The majority of microbusinesses focus on

providing goods or services to their immediate communities. Typically, they set up

agribusinesses, manufacture clothing and footwear, or offer goods or services in their local

communities. Micro-enterprises are important to the local economy as well as assisting

those business owners improve their standard of living. They improve purchasing power,

promote sales, provide jobs, and provide facilities.

I chose on a micro-entrepreneurship business since I considered that someone

deciding to start a business would find it advantageous and comfortable. Micro-

 entrepreneurship is adaptable to change, considering about how many levels of approval,

decision-making, and strategy are required to make a single difference in a larger

organization. Due to their tiny size, micro businesses benefit from excellent response

timeframes for decisions and plans. Second, microenterprise owners have cheaper costs

due to lower labor costs, lower operating costs as a result of the simplicity of the industry,

and, for online/remote microbusinesses, no rent fees. Thirdly, there are drawbacks that

could increase the likelihood of failure, but having the flexibility to decide your own fate

is what every entrepreneur aspires to, and running a microbusiness gives you that

opportunity.

3. Site where to best invest in the Philippines and its modalities. Explain.

Answer:

One of the best online investment platforms in the Philippines is the First Metro

Securities which it is under the category of stocks, mutual fund and exchange traded funds

with a minimum investment of P2,500.00 initial deposit. However, there is no minimum

initial deposit For Metrobank or PSBank account holders. No one can question the

reliability and experience of First Metro Securities in the stock market business given the

support of Metrobank Group and First Metro Investment Corporation.

They provide simple access to PSE listed stocks. It's excellent that customers can

choose to utilize their online trading platforms independently or with the help of their

knowledgeable brokers. This is a nice option to have, in my opinion, as not all investing

firms offer both.

References:

First Metro ETF. (n.d.). Retrieved October 30, 2022, from https://www.firstmetroetf.com.ph/

OECD/Eurostat (2014), “Wholesale and retail trade services”, in Eurostat-OECD

Methodological Guide for Developing Producer Price Indices for Services: Second Edition, OECD

Publishing, Paris.

Microenterprise. (2021, February 28). Investopedia.

https://www.investopedia.com/terms/m/microenterprise.asp

What are SMEs? (n.d.). Retrieved October 29, 2022, from https://www.gdrc.org/sustbiz/what-

are-smes.html