in-the-philippines.com | All about Philippines

By legal definition, small businesses are privately owned  entities and operated   by small number of individuals with relatively low volume of sales.  It could be a corporation, a partnership or a sole propertorship.  In the Philippines, small businesses thrive everywhere: from small sari-sari store (convenience store type), bakeries, beauty parlors, dressmakers , food stands, etc.  In procedures in putting them up are the same as large scale businesses.

The backbone of Philippines local economy are these small businesses.  They require small capital and there is always a demand for any product and service we could imagine in this highly populated archipelago.  The government has always been pushing the entrepreneur spirit among the Filipinos, after all they are known for their ingeniousness and hardwork.

Advantages of Small Busines

We always here our business minded elders tell us to “start small”! The biggest edge of small business is that they can be started at a very minimal cost and sometimes you can also do it on  a part-time basis.  Nowadays it has even propelled even easier with the use of internet, that we can do our marketing online. Prior to internet revolution finding your clients for your  specialized niches and something very hard to do and requires big sum of money.  Small business proprietors tend to be intimate with their customers and clients which results in greater accountability and maturity.

Independence is another advantage of operating a small business. The number one reason that inticed people in running their own business from the start is having that kind of freedom and the need of being their own boss.Freedom to operate independently is a reward for small business owners. In addition, many people desire to make their own decisions, take their own risks, and reap the rewards of their efforts. Small business owners have the satisfaction of making their own decisions within the constraints imposed by economic and other environmental factors. However, entrepreneurs have to work very long hours and understand that ultimately their customers are their bosses.

Small Business in the Philippines

Problems confronted by Small Businesses

Number one reason for bankcruptcy among small business  is undercapitalization.   This is often a result of poor planning rather than economic conditions – it is common rule of thumb that the owner should have  a sum of money at least equal to the projected revenue for the first year of business in addition to his anticipated expenses. Failure to provide this level of funding for a small business could leave the owner liable for all of the company’s debt  and ends up bankcrupt in the end. Most often, entrepreneurs who launched a career in small time business lacks also the management skills of a well seasoned businessman and this of course contribute on the life expectancy of any small businesses. Lack of good marketing strategy also contributes a lot of to small scale business to flourish.

Marketing Small Business

Getting your new customers has always been the biggest challenge so far of small business.  Remember that the life of your company depends on it.  The owners are the one’s typically responsible in creating marketing campaigns on a daily basis to keep customers flowing.  Common marketing techniques for small business include networking, word of mouth, customer referrals, yellow pages directories, television, radio, outdoor (roadside billboards), print, email marketing, and internet. Electronic media like TV can be quite expensive and is normally intended to create awareness of a product or service.  Twitter, Facebook, and the blogging industry are also often employed to get closer to your customers.  The internet has ahelped a lot of small businesses products anywhere else in the world.