TAGBILARAN CITY COLLEGE

College of Business and Industry

Tagbilaran City, Bohol

Course Code ABM104 Instructor Emily C. Tabigue

Charwen Namocatcat
Course Title Organization and Email etabigue.tcc@gmail.com
Management cnamocatcat.tcc@gmail.com
Course Credits 3 Contact Number 0963-001-7912
Course Bridging Consultation Hours
Classification
Pre-Requisite(s) Consultation TCC Faculty Office
Venue

Learning Module 11 : Special topics in Management

Duration of Delivery : May 6 – 10, 2024
Due Date of Deliverables : May 10, 2024

Module 11 – Special topics in Management

Learning Outcomes:
 Describe the characteristics of an entrepreneur.
 Identify the types of business according to size and
potential for growth.
 Identify the business forms and requirements needed to
establish business.
 Entrepreneurship and Management

An entrepreneur is an individual who establishes a business

for the purpose of achieving profit. He or she identifies opportunities
and acquires and organizes the resources needed for such business.
The following are the characteristics of a successful
entrepreneur:
Entrepreneurs have initiative – They have the willingness to
utilize their resources to the fullest and the creativity to come up
with the innovative products and strategies.
Entrepreneurs are self-reliant – They have a clear idea of
what to do and the goals they wish to achieve.
Entrepreneurs dream big and they know how to transform
their dreams into reality

Types of Business According to Size and Growth Potential

There are a lot of businesses engaged in different kinds of
enterprises. They can be identified through the products and services
they offer of the structure of their workforce.

Some businesses can also differ in terms f their growth potential:

1. Gazelles – These are small companies that are considered “high

potential ventures” with phenomenal prospects for growth. This
means that these businesses have a high rate of success and
profitability.
2. Microbusinesses – These business ventures operate on a smaller
scale and have limited profits.
3. Small- and Medium-sized businesses – These are also known as small- and medium-sized enterprises or
SMEs. These companies may either be sole proprietorship, partnerships, cooperatives or corporations.

The Family Business Enterprise

Families owning businesses are common around the world.
It is estimated that about 65 percent of registered businesses
worldwide are owned by families.

Family businesses often employ a very traditional method

of management where family members occupy key positions in the
organization and the pass them on to other family members upon
retirement.

Businesses are composed of three interdependent and

overlapping groups;

Family members
Ownership group
Business group
The most significant members of the organization are the family members who own the business. They
are considered to be the most dedicated and loyal members of the organization. The ownership group,
meanwhile, incorporates investors and owners who are not part of the family. Finally, the business group is
composed of employees who are neither owner nor family members.
 Characteristics of Family-Owned Businesses
Owners consider the business as a legacy that will be
passed on to the next generation
Long term perspective with regards to the performance of
the business
Possess a warmer and more personal environment
Family oriented corporate culture and values
Each employee is treated like a family members and the
management tries to preserve the values since the
beginning.

The Role of Small Business in the Economy

Small businesses also play a crucial role in the

operations of large businesses and corporations. Since
outsourcing has increasingly become an option for obtaining
resources for many corporations, small businesses are
employed to perform these outsourced functions for
corporations. This kind of relationship may even create an
opportunity for the employees of small businesses to gain
access to corporate employment, given the right
circumstances.
These small businesses create job positions that cater lower, but not necessary incompetent, level
of qualifications. Small businesses are also more welcoming of fresh graduates or applicants who lack the
necessary work experience by providing employment opportunities.

The Business Plan

Establishing and running a business does not

merely rely on instinct and intuition. In today’s
business environment, an entrepreneur has an edge
if he or she engages in careful planning and analysis
of the environment and prevalent economic factors
before deciding to establish a business.

A business plan is a document that outlines

the business goals of an enterprises, explains the
viability of the business, and describes the strategies
that will be used to implement the plan. It guides
budding entrepreneur in defining the nature of the
business opportunity and outlines the approaches in
taking advantage of that opportunity.
 Official Requirements in Starting a Business

There are several legal requirements that entrepreneur should comply with before starting their business.
These requirements are submitted to the government so that it can access the eligibility of the registering owners
before granting them permit to run a business.

Basic Business Permits

Entrepreneurs are required to comply with laws, regulations, and guidelines to ensure the quality of their
products and services as well as the proper and legal conduct of business operations and other transactions.
Many of these permits need to be regularly updated or reapplied for.

The following are the permits and licenses are required of all types of business:
1. Barangay clearance – This certifies that the business complies with the requirements of the barangay where the
business is located.
2. DTI Business Name Registration Certificate – It gives the owners the power to use the registered business trade
name for their business operations.
3. SEC Certificate of Registration – Corporation and partnerships have to secure this certificate to be considered as
legal or juridical entities.
4. Mayor’s Business Permit – Business owners have to secure a business permit from the mayor of the local of
government office where their business are located.
5. BIR Certificate of Registration – Businesses must have registered to BIR for compliance with Philippine tax
requirements.
6. SSS Employer’s Registration – This is to ensure that both the employees and companies contribute to the SSS and
are able to avail of the benefits of social security.
7. PhilHealth Employer’s Registration – All business are required to register with PhilHealth to enable them to
provide social health insurance to their employees.
8. Pag-IBIG Employer’s Registration – Business owners have to register to secure their Pag-IBIG Employer ID
Number and provide benefits to their employees.
9. DOLE Registration – Business with five but not more than 50 employees should register the Department of Labor
and Employment (DOLE) for the purpose of monitoring their compliance with labor regulations. For companies with
more than 50 employees, they are required to register with the Bureau of Local Employment of DOLE.

Special Business Permits

Special business permits are required for business establishments that engage in special operations or are involved in
specific industries.

The following are the institutions that issue special permits.

1. Bangko Sentral ng Pilipinas (BSP) – for banks, financing companies, pawnshops, money changer, and other
financial institutions.
2. Bureau of Food and Drugs (BFAD) – for business related to the manufacturer, trade, repacking, importing,
exporting, and distribution of any foods and drugs and other related products.
3. Bureau of Animal Industry (BAI) – for business related animal raising.
4. Bureau of Fisheries and Aquatic Resources (BFAR) – for business related to fisheries and aquatic products.
5. Bureau of Plant Industry – for business related to plants and vegetable crops.
6. Bureau of Forest Development – for exporters of forest products (e.g., logs, lumber products, plywood, etc.)
7. Commission on Higher Education (CHED) and Department of Education (DepEd) – for schools or other
educational institutions.
8. National Food Authority (NFA)– for rice, corn and flour dealers
9. National Tabacco Administration (NTA) – for business related to tobacco products.
10. Technical Education and Skills Development Authority (TESDA) – for institutions involved in technical
education and skills development.