CHAPTER V

SOCIO-ECONOMIC STUDY
Introduction

In this Chapter, the socio-economic contribution of the business will be shown.

The Business does not only aim profit maximization but also for contributing in the
development of the society and in Economic growth. This chapter will discuss the
different sectors that would benefit from the proposed business.

The proposed business will be located at Block 6 Lot 21 Bougainvillea St. Ciudad
grande phase 1 bakakeng B.C Baguio City wherein there is a high numbers of people
living here, taking advantage of its good location which best suits the proposed business.
MAC Lemon Enterprise will increase rate of employment through providing job
opportunities to those people who were unable to attain higher education.

SECTORS AFFECTED:

Taxes
As a registered business, the enterprise has its tax obligations due to the local and
national environment. In putting up a business, registration of the business is necessary to
have permits and license from the government. Together with tax, it is also part of our
contributions. Taxes will be computed following the rates and procedures set forth in
Republic Act No. 8424, also known as the Tax Reform Act of 1997. Taxes paid, by the

enterprise and as well as the employees, will contribute to the development of the
community, and will be used to develop roads and other infrastructures.

Environmental Impact
In setting up a business, we must also consider the environment so that we can always
maintain our surroundings clean and green. The enterprise will be obliged to comply with
the existing rules and regulations of the government and support all the programs and
activities. There are wastebaskets placed on different areas that are properly labelled with
biodegradable and non-biodegradable to ensure the cleanliness of the locality and to
observe the proper segregation of wastes to prevent or at least minimize the harmful
effects of pollution to the public.

Suppliers
Since the enterprise will use lemongrass as a primary source ingredients of lemongrass
insect repellent it would help local producers and farmers to produce more of lemongrass.
With the increase in purchases each year they will earn a higher income.