Professional Documents
Culture Documents
Overview of Entrepreneurship
Entrepreneurship
The ability of the individual to determine and come up with the proper combination of the resources available in his environment and transform this into an output of either goods or services, and obtain a fair profit at the price the entrepreneur sets.
A person responsible for profitably combining the various factors of production land, labor and capital
ENTREPRENEUR
Somebody who has IDEAS and makes these ideas happen or come to life. Must have some BUSINESS SKILLS (ideation, creativity & innovation) Somebody who ASSUMES RISKS Desires to MAKE PROFIT
In terms of Capitalization
Small and Medium Enterprise Category Micro Enterprise Small Enterprise Medium Enterprise Large Enteprise
Amount of Capitalization Less than Php3 Million From Php3M to Php15M From Php15M to 100M Php100 Million and above
Small and Medium Enterprise Category Micro Enterprise Small Enterprise Medium Enterprise Large Enterprise
Employment Size
Less than 10 employees From 10 to 99 employees From 100 to 499 employees 500 employees and above
Services excludes exercise of profession duly licensed by the government Certificate of Authority Assets all kinds of properties, real or personal owned and/or used by the BMBE for the conduct of its business.
E-commerce Act
Mandates all government department and offices to accept electronic data messages and documents in their transactions within two years from its effectivity. Provides for penalties on computer hacking, introduction of viruses and piracy of copyrighted works of at least P100,000 and maximum commensurate to the damage incurred, and imprisonment of six months to three years, among others;
E-commerce Act
Promotes e-commerce in the country, particularly in business-to-business and business-to-consumer transactions whereby
Up to 25% foreign ownership is allowed for private requirement, whether for local or overseas employment; locally-funded public works, except for infrastructure/development projects and foreign-funded or assisted projects
Back
Up to 30% foreign equity is allowed in advertising Up to 40% foreign equity for exploration, development and utilization of natural resources; ownership of private lands; operation and management of public utilities, educational institutions; rice and corn administration; contracts to supply materials, good and commodities to GOCCs; project proponent of a BOT project in public utilities; deep-sea commercial fishing vessels operation and condominiums Up to 60% ownership in financing companies regualted by the SEC and investment houses
a. A minimum of US$200 million net worth in its parent corporation for Categories B and C, and US$50 million net worth in its parent corporation for Category D; b. Five Retailing branches or franchises in operation anywhere around the world, unless such retailer has at least one store capitalized at a minimum of $25 million;
Categories
Category A enterprises with a paid-up capital equivalent in Philippine pesos to less than $2.5 million shall be reserved exclusively for Filipinos; Category B enterprises with a minimum paid-up capital equivalent in Philippine pesos to $2.5 million but less than $7.5 million, in which case foreign equity will be allowed in the first two years up to a maximum of 60%. On the third year, 100% ownership will be allowed.
Categories
Category C allows 100% foreign ownership of retailers whose paid-up capital of the equivalent in Philippine pesos will be at least $7.5 million; and Category D allows 100% foreign ownership of stores selling high-end or luxury products if the minimum capital is at least $250,000 per store.
Foreign retailers under categories B and C whose ownership exceeds 80% of equity will be required to offer their shares to the public (minimum of 30% of equity) within 8 years from the start of commercial operation.
Qualified foreign retailers will also be barred from engaging in activities outside their stores through mobile or rolling stores or carts, and the use of sales representatives, door-to-door selling, restaurants and sarisari (variety) stores.
Transaction Value
The price actually paid or payable for goods that are exported to the Philippines The price that appears on the accompanying commercial or sales invoice issued in the country of origin or exporting country.
The TV system enables local manufacturers or producers to price their export products more competitively and allows the Philippines to align its valuation system not only with its ASEAN neighbors but also with the rest of the world.