MODULE 20

Special Topic in Management:

Family Business Enterprise
 ENTREPRENEUR
a person who establishes a business
by identifying a need or opportunity to
exploit, and takes responsibility and
financial risk for owning and operating
the business
 Identifies Business Opportunities
Makes Plans and Decisions
Invests Time, Efforts, and Money
Takes Calculated Risks
Introduces Innovation and Change
Earns Profits and Develops Society
Identify and Prepare pre-
Prepare a
select a feasibility
business plan.
business. studies.

Determine legal
Register your Finance your
structure for
business. business.
your business.
IDENTIFY AND SELECT
A BUSINESS
OPPORTUNITY
Identify potential business
opportunities
 PREPARE A BUSINESS PLAN
Is a document that contains the goals,
plans, strategies, and resources of a business.
BELOW ARE THE PARTS OF THE
FEASIBILITY PLAN:
Marketing aspects - These involve market
research to determine a gap in market demand for
the product or service, determination of whether the
gap is sizeable enough to make a project feasible,
and analysis of competitors, market shares, sales
volume, and selling prices.
Technical or Production Aspects - These involve
analysis on how to make the product or service, the
sources and costs for materials, quality features,
and operating processes and their cost.
Financial Aspects – These involve analysis
of whether the project will be financially
viable by determining the sales revenues, the
costs and expenses in producing the product
or service, the means of financing, and
analysis of profitability of the venture.
Organizational Aspects – These identify
the legal form of the business
 FINANCE YOUR BUSINESS
YOU CAN FINANCE YOUR SMALL BUSINESS USING
SEVERAL COMBINED SOURCES: It is important to
• Your money prepare a SWOT
analysis of these
• Your family, friends, and relatives alternative
sources of funds
• Borrowing from a bank for your business

• Getting investors such as venture capitalists

 REGISTER YOUR BUSINESS
After deciding on the type of
legal form for your business, you
have to register it with the
appropriate agency
 DTI Department of Trade and Industry

BIR Bureau of Internal Revenue

TIN Taxpayer Information Number

SSS Social Security System

SEC Securities and Exchange Commission

DOLE Department of Labor and Employment

Pag-IBIG Fund Pagtutulungan sa Kinabukasan: Ikaw,

Bangko, Industria at Gobyerno
CDA Cooperative Development Authority
 FORMS OF BUSINESS AND HOW TO
REGISTER

LEGAL FORMS OF HOW AND WHERE TO REGISTER

BUSINESS
SOLE • Apply for a business name and registration at the DTI.
PROPRIETORSHIP Applicant must be 18 years old.
• Apply for TIN at the BIR
• Get a barangay clearance
• Get a Mayor’s permit or license for your business
• Secure an SSS number for your business and for yourself as an
employee or a self employed individual
PARTNERSHIP • Register with the SEC. At least two members are required in a
partnership.
• Submit other documents same as in a sole proprietorship
• Get a mayor’s permit
 FORMS OF BUSINESS AND HOW TO
REGISTER
LEGAL FORMS OF HOW AND WHERE TO REGISTER
BUSINESS
Corporation • Get a certificate of Registration from SEC. A minimum of 5 and a maximum of
15 people are required to register as a corporation. Documents required are the
following:
– A Name verification slip
– Your Articles of Partnership
– A Registration Data Sheet
– Endorsements/clearances from other government agencies
– Application Form F-105 (For partnerships with Foreign
– Partners)
– Bank Certificate on the capital contribution of the partners
– Proof of Remittance of foreign partners
• If you employ at least 5 workers, register your business with the DOLE
• Secure an SSS number for your business and for yourself as an employee or a
self employed individual. Your workers who earn at least an income of ₱4 000
should also be registered with SSS.
• Register your business with the Pag-IBIG Fund, naming yourself and your
workers as members of the fund
• Register your business with PhilHealth. Your workers should also be members
of PhilHealth
 FORMS OF BUSINESS AND HOW TO
REGISTER
LEGAL FORMS OF HOW AND WHERE TO REGISTER
BUSINESS
LIMITED LIABILITY • Apply at the SEC.
• Submit documents same as in partnership
• Get a mayor’s permit
COOPERATIVE • Register at the CDA.
• Get a mayor’s permit
IMPORTANCE OF FAMILY
BUSINESS ENTERPRISE
• Contributes to the development of
the community where he or she lives
• Generates employment for other
people
• Contributes to the economic
growth for the country
1. A family member sets up a small business
2. Children of the owners of the family enterprise join the
family business
3. Children of the owners of the family business assume
control over the family business
4. Second-generation family members continue to build the
family enterprise
5. Third-generation family members assume control of the
family business
 Third-
Second- generation
generation family
family members
Children of assume
the owners members
continue to control of
of the family the family
Children of enterprise build the
family business
the owners assume
of the control over enterprise
family the family
A family enterprise business
member join the
sets up a family
small business
business
SMALL BUSINESS ENTERPRISES HELP
DEVELOP THE PHILIPPINE ECONOMY
In the Philippines, the micro, small, and
medium enterprises are the backbone of the
Philippine economy as they comprise the majority of
economic establishments in the country.
Thus, small family businesses are important to
the Philippine economy. Despite their limited
resources, small businesses enable family members to
gain self-employment that improve their economic
well-being.
The definitions of micro, small, and medium
enterprise are contained in the Philippines’
Magna carta for Micro, Small and Medium
Enterprises:
1. Micro enterprises- these are not more than ₱ 3 000
000 in value of total assets.
2. Small enterprises- these are from ₱ 3 000 001 to
₱ 15 000 000 in value of total assets.
3. Medium enterprises- these are from ₱ 15 000 000 to
₱ 100 000 000 in value of total assets.
The high level of government support being extended to small
business enterprises in the Philippines can be seen in the
enactment of specific Philippine laws, which are the following:
1. The Magna Carta for Micro, Small, Medium Enterprises
(Republic Act. No.6977) – promotes entrepreneurial spirit
among Filipinos by providing government support such as
entrepreneurship training, access to funds, and promotion of
the linkages among the small enterprises.
2. The Go Negosyo Act (Republic Act No. 10644) –
established to help the Philippines small and medium
enterprises in their business applications, training, and fund
support.
3. The Barangay Micro Business Enterprise (BMBE) Act
(Republic Act No. 9178)- created to provide additional
support to micro enterprises or those not more than ₱3 million
in total value.