Beruflich Dokumente
Kultur Dokumente
A Research Paper
Presented to
In Partial Fulfillment
of the Requirements
in Research 2
by
Alvior, CandydJulyn W.
Fabila, Janine L.
Sebastian, Nikki P.
Introduction
The full texts of RA 6997, RA 8289 and RA 9501 and its IRR, including the
revised rules and regulation governing the mandatory allocation of credit
resources provide ready reference for complete compilation of laws on the
Magna Carta for MSMEs.
Statement of the Problem
This study was conducted to find out the advantages and disadvantages of
small scale businesses among entrepreneurs in San Jose, Antique.
Costumers.Will find the results useful so that they can choose whether to buy
their needs in a small scale business or in a big scale business by determining its
advantages and disadvantages
Future business owners. Will have an idea on what kind of business are they
going to put up in the future.
Future researchers with topics related to this study. The result of this study
will serve as a related literature needed to substantiate their own study.
Figure 1.
Performance
Advantages Disadvantages
The conceptual framework shows that the small scale businesses have
services, quality and organization that have performance that deals with the
advantages and disadvantages of small scale businesses.
Statement of the Hypothesis
Definition of Terms
The following terms were used in this study and were defined to help clarify
the statements contained therein:
Advantage is any trait, feature or aspect that gives an individual, entity or any
other thing is more favorable opportunity for success.
MSMEs is Micro- Small and Medium Enterprises (MSMEs) are small sized
entities, defined in terms of their size of investment.
This chapter presents the review of related literature and studies. The
researchers read various writings and researches that both locale and ferment
set up that have direct varying or relation to the present study.
Since businesses are there to make profit, evaluating profit and loss is
vital when gauging the benefits and limitations of a small firm. When a sole
proprietorship encounters losses or defaults on loan repayments, the burden is
squarely on the shoulders of the owner. He/she is responsible for all the debts,
liabilities, shortcomings and losses encountered. Claims on the debts and loans
usually extend to personal belongings like house and furniture in order to cover
the debts. On the other hand, when gains are made the sole owner enjoys all the
profits.
Running your own business often results in working long hours, seven
days each week. This occurs because small-business owners often dont have
enough money to hire enough people to share the workload or because the
entrepreneur is the expert and must handle many key responsibilities himself. If
you have a problem with delegating, its very easy to take on too much
responsibility at a small company. Consider your family and other personal
relationships and how the long hours and stress of starting a small business will
affect them and your health.
You are more likely to make millions of dollars working for yourself than for
someone else. Even if your goal is only a higher salary than youre currently
making, a small business offers you the chance to make an exponential leap in
your annual income, while working for someone else usually only comes with an
incremental annual pay raise. Even if you keep your current job, starting a part-
time business can help you move from a comfortable lifestyle to an affluent one.
Turning a hobby into a part-time business lets you write off business expenses
that might be enough to justify launching the business even if you dont make
much money.
No matter how hard you try to separate your personal assets from your
business, there is often considerable personal financial risk involved with starting
a small business. Even if you are not completely responsible for the liabilities of a
failed business, you might lose your personal investment and damage your
credit. If you use credit cards or take out a loan against your mortgage, the
damage can be severe. Meet with an accountant before you launch to determine
if you need to incorporate, which type of incorporation to choose, how to create
budget projections and what financial procedures to follow to minimize your
financial risk.
Starting a small business often requires a low cost of entry and first-year
overhead expenses, making it better able to compete with larger, established
businesses on price. The reverse can be true if the company starts with little
operating capital and immediately depends on sales to cover its operating costs,
requiring higher prices to stay in business. Sometimes, people are often curious
about and willing to try a new brand, while in other instances, new companies
can have a tough time cracking customer loyalty. (Retrieved July 14, 2017, from
http://smallbusiness.chron.com/advantages-disadvantages-small-businesses-
61057.html)
Small and midsize companies have the ability to react quickly to changes
in the marketplace. There is no hierarchy in place that slows down the decision-
making process. If the business owner sees that there is an opportunity to
challenge a competitor, she can do it without obtaining approval from a board of
directors. Employee job descriptions can be flexible as well, allowing an
employee to branch out beyond his duties and improve his worth to the business.
Big companies often have cast-in-stone job descriptions that hinder an
employee's growth potential.
It is not uncommon for two people to work for the same big company for
years and never meet. Departments are separated on different floors and
buildings. Competition between departments for additional staffing and resources
encourages an "us against them" mentality. A smaller company encourages
team camaraderie. The owner recognizes that every employee is critical to the
success of the business. Cross training naturally happens as one employee
covers for another during vacations, illnesses and family leave.
Several loan programs exist for SMEs that larger companies dont qualify
for. These are Small Business Administration-backed loans. The SME applies for
the loan through a local bank. The SBA guarantees the loan but doesn't directly
make the loan to the small business. (Retrieved July 14, 2017, from
http://yourbusiness.azcentral.com/advantages-smes-17194.html)
One of the reasons big corporations have a leg up on smaller rivals is that
they benefit from economies of scale that is, the cost for each product or
service they deliver is lower.
Imagine trying to build just one table. Chances are, youd spend a lot of
money investing in tools and purchasing the raw materials and a good deal of
time getting the pieces to fit just right. But, almost invariably, building a second
table is cheaper than the first because you can buy all the materials at once and
depreciate the cost of the equipment. The third one? You guessed it cheaper
still. Youre developing efficiency.
It would hard for a much smaller competitor to get the same deal; the steel
company simply doesnt have as much reason to bend its price. And if the firm is
paying more for raw materials, its receiving a slimmer profit on each car that it
sells.
The lack of purchasing power affects virtually every cost that a business
takes on, from telephone service to real estate. It particularly affects healthcare
costs, which represent one of the biggest expenditures for companies today. The
Small Business Health Options program, part of the Affordable Care Act, is trying
to provide a more level playing field by giving small firms more purchasing power
in the insurance market.
Every business owner knows that in order to excel, you need the best
workers available. But its much easier for big players to attract the high-level
employees because, in most cases, they can afford to pay them more.
The easiest way to get a sale is to make sure the customer already has
your brand in mind before they even start shopping. Thats often the case with
big corporations, which have the marketing muscle to advertise much more than
their smaller rivals.
A lot of the big-name companies have also been in business for decades
just think about McDonalds, IBM or Nike. That means theyve had years of
exposure in the marketplace.
Some people think that bigger companies take advantage of small
businesses, which are the underdogs. While that depiction might be a stretch,
smaller companies have a number of factors working against them that they may
have to overcome in order to be successful. (Retrieved July 14, 2017, from
http://www.investopedia.com/articles/personal-finance/111315/5-ways-small-
businesses-are-disadvantage.asp)
In most industries, a small business is defined as one that has fewer than
500 employees and makes less than $7 million in annual revenue, according to
the U.S. Small Business Administration. While small businesses often use local
community support and product specialization to attract customers, they can be
at a disadvantage against larger competitors.
Bargaining power inhibits a small company's ability to get a low cost basis
of resale products. Typically, large companies can negotiate volume discounts
and bulk pricing that reduce their cost per unit. A single store doesn't have the
same buying power as a company with hundreds of locations and economies of
scale.
Research Methodology
Research Locale
This study is undertaken in the areas of San Jose, Antique where the mall
scale businesses is located. This study is undertaken during the first semester
school year 2017-2018 at St. Anthonys College of San Angel, San Jose Antique.
This study will have respondents which will benefit on this study. The
respondents will be described according to age and gender.
Results
This chapter presents the analysis and interpretation of the study on the
Advantages and Disadvantages of Small Scale Businesses among
Entrepreneurs in San Jose, Antique.
Table 1
This chapter has four parts: (1) Summary of the Problem, Method and
Findings; (2) Conclusions, and (3) Recommendations.
2. Small scale businesses provide the daily needs of the people buy selling
businesses.
Recommendations
was made:
We the researchers would like to extend our gratitude to the following persons
who are in one way or another become part of the achievement of these
research paper:
The Entrepreneurs, for their cooperation and time in answering our survey
questionnaire.
The Parents, for their moral and financial support to their children for the
accomplishment of the research paper.
The Research Adviser, Mr. Ramil Mondejar, for supervising and advising us
to make this research paper possible.