BEDURAL, Arvin O.

ECC 3| OPPORTUNITY SEEKING

BS ENTREP 2B

REPUBLIC ACT No. 6977

January 24, 1991
As amended by R.A. 8289

AN ACT TO PROMOTE, DEVELOP AND ASSIST SMALL AND MEDIUM SCALE ENTERPRISES
THROUGH THE CREATION OF A SMALL AND MEDIUM ENTERPRISE DEVELOPMENT (SMED)
COUNCIL, AND THE RATIONALIZATION OF GOVERNMENT ASSISTANCE PROGRAMS AND AGENCIES
CONCERNED WITH THE DEVELOPMEN

What is small business?

Small business may be defined by sing any of the two approaches market share of total assets.
Under the market share approach small business may be defined as one which independently
owned and operated and which is not dominant in its field of operation. The term
“independently owned” means ownership is by a private individual a partnership or corporation .
The term “not dominant” indicate that a small business does not control a sizable share of its
market. When the total sales of a business firm is less than one of the total demand for its
products, the firm may be considered small business.

What are the classification of small business?

SMALL MANUFACTURING BUSINESS
A manufacturing business is one involved in the conversation of raw materials into products
needed by society. Example of small business engaged in manufacturing are : bakeries, tricycle
sidecar, assembly shops, bagoong manufacturers, restaurants, and others.
SMALL SERVICE BUSINESS
Service business are those that provides service in one way or another. They may be further
classified into the following: business services, personal services, repair services, entertainment
and recreation, hotels and motels, and education services.
WHOLESALING
Wholesaling refer to the activities of persons or establishment which sell to retailers and other
merchants, and/or to industrial, institutional, and commercial users, but who do not sell in large
amounts to final consumer. Example are soft drinks wholesalers in local areas, dealers of supplies
and office equipment, grains wholesalers, and the like. A big number of these wholesale
businesses are owned by small business operators.
RETAILING
Retailing covers all activities involved in the sale of goods and/or services to the final consumers.
The bulk of retailing activities are performed by small businesses. Examples are retail drugstores,
fast food shops, appliances store, and others.
GENERAL CONSTRUCTION FIRMS
General construction firms are those engaged in the construction of buildings whether for private
individuals or firms, or for the government. Many of them perform subcontracting jobs for the
bigger contractors such as installing electrical facilities and sewerage.
BEDURAL, Arvin O. ECC 3| OPPORTUNITY SEEKING
BS ENTREP 2B

REPUBLIC ACT No. 6977

January 24, 1991
As amended by R.A. 8289

AN ACT TO PROMOTE, DEVELOP AND ASSIST SMALL AND MEDIUM SCALE ENTERPRISES
THROUGH THE CREATION OF A SMALL AND MEDIUM ENTERPRISE DEVELOPMENT (SMED)
COUNCIL, AND THE RATIONALIZATION OF GOVERNMENT ASSISTANCE PROGRAMS AND AGENCIES
CONCERNED WITH THE DEVELOPMEN

What is small business?

Small business may be defined by sing any of the two approaches market share of total assets.
Under the market share approach small business may be defined as one which independently
owned and operated and which is not dominant in its field of operation. The term
“independently owned” means ownership is by a private individual a partnership or corporation .
The term “not dominant” indicate that a small business does not control a sizable share of its
market. When the total sales of a business firm is less than one of the total demand for its
products, the firm may be considered small business.

What are the classification of small business?

SMALL MANUFACTURING BUSINESS
A manufacturing business is one involved in the conversation of raw materials into products
needed by society. Example of small business engaged in manufacturing are : bakeries, tricycle
sidecar, assembly shops, bagoong manufacturers, restaurants, and others.
SMALL SERVICE BUSINESS
Service business are those that provides service in one way or another. They may be further
classified into the following: business services, personal services, repair services, entertainment
and recreation, hotels and motels, and education services.
WHOLESALING
Wholesaling refer to the activities of persons or establishment which sell to retailers and other
merchants, and/or to industrial, institutional, and commercial users, but who do not sell in large
amounts to final consumer. Example are soft drinks wholesalers in local areas, dealers of supplies
and office equipment, grains wholesalers, and the like. A big number of these wholesale
businesses are owned by small business operators.
RETAILING
Retailing covers all activities involved in the sale of goods and/or services to the final consumers.
The bulk of retailing activities are performed by small businesses. Examples are retail drugstores,
fast food shops, appliances store, and others.
GENERAL CONSTRUCTION FIRMS
General construction firms are those engaged in the construction of buildings whether for private
individuals or firms, or for the government. Many of them perform subcontracting jobs for the
bigger contractors such as installing electrical facilities and sewerage.