Entrep Chapter 4-5

Successful Entrepreneurs

Entrepreneurs who have created impactful, sustainable ventures driven by traits like innovation, resilience, and vision (e.g., Elon Musk, Jack Ma, Sara Blakely).[cite: 7]

Emerging Trend

A new or developing pattern, idea, or phenomenon gaining importance/popularity in an industry that indicates future directions and can reshape markets, technology, or societal norms.[cite: 7]

Sustainability & Green Business

An emerging trend focusing on eco-friendly, sustainable products and services (e.g., Tesla solar energy solutions, Patagonia eco-clothing).[cite: 7]

Digital & E-commerce Expansion

An emerging trend characterized by the growth of online businesses, digital platforms, and digital marketing (e.g., Amazon, MercadoLibre).[cite: 7]

Health Tech & Telemedicine

An emerging trend involving technology-driven healthcare solutions and remote medical access (e.g., Teladoc Health, Ada Health, Practo).[cite: 7]

Social Entrepreneurship

An emerging trend where businesses operate to address social and community issues (e.g., TOMS Shoes one-for-one model, Grameen Bank microfinancing).[cite: 7]

Artificial Intelligence & Tech Startups

An emerging trend utilizing AI-driven products and services to transform modern industries (e.g., OpenAI, DeepMind, RPA).[cite: 7]

Robotic Process Automation (RPA)

A technology that uses software robots ("bots") to automate repetitive, rule-based tasks performed by humans, such as data entry and form filling.[cite: 7]

Sole Proprietorship

A form of business organization with only one owner that has no separate legal existence, is the easiest to establish, and represents the most common business form.[cite: 7]

Sole Proprietorship Advantages and Disadvantages

Advantages: Ease of formation, full owner control, ability to freely mix personal and business assets, retention of all profits, and simple taxation. Disadvantages: Unlimited liability, difficulty of raising additional capital, and owner's bias.[cite: 7]

Partnership

A contract whereby two or more persons bind themselves to contribute money, property (land, buildings, vehicles), or industry (skills, expertise) to a common fund, with the intention of dividing profits among themselves.[cite: 7]

Articles of Partnership

A written contract containing key partnership details: name, principal office location, partner information (names, citizenship, residence), operational term, purpose, original capital contributions, and profit/loss sharing agreements.[cite: 7]

Partnership Advantages and Disadvantages

Advantages: Easier to create than a corporation, better ability to acquire capital than sole proprietorships, and a larger pool of human capital. Disadvantages: Unlimited liability, mutual agency, and limited life.[cite: 7]

Corporation

An artificial being created by operation of law, having the right of succession and the powers, attributes, and properties expressly authorized by law or incident to its existence (can be profit or non-profit; publicly or privately held).[cite: 7]

General Features of Corporation

Key characteristics including separate legal existence, limited liability of stockholders, transferable ownership rights, virtually unlimited life, corporate management structure, government regulation, double taxation, and dividend distribution.[cite: 7]

Corporation Advantages and Disadvantages

Advantages: Strong ability to acquire additional capital, transferable ownership rights, limited liability of stockholders, virtually unlimited life, and a large pool of human activity. Disadvantages: Heavy government regulation, double taxation, and higher formation costs compared to sole proprietorships and partnerships.[cite: 7]

Limited Liability Partnership (LLP)

A specialized partnership structure aimed at protecting innocent partners from the malpractice and wrongdoings of other partners, mostly used by licensed professionals (e.g., lawyers, accountants, medical professionals, auditors).[cite: 7]

Limited Liability Company (LLC)

A business structure whose owners are called members; they enjoy limited liability and can participate directly in management without losing liability protection.[cite: 7]

Cooperative

A duly registered association of at least 15 persons with a common bond of interest who voluntarily join to achieve a lawful social or economic end, contributing equitable capital and sharing risks and benefits according to cooperative principles.[cite: 7]

Purpose of Cooperative

To encourage thrift and savings mobilization among members, generate funds and extend credit for productive and provident purposes, and develop expertise and skills among members.[cite: 7]

Compositions of Business Organization

The structural makeup of an enterprise encompassing: 1) Ownership structure (individual, partnership, shareholders), 2) Management (appointed managers, board of directors), 3) Capital structure (equity, debt), and 4) Legal status (registered, licensed, compliant with laws).[cite: 7]

Business Registration Process

A 5-step conjoined procedure: Step 1 (Decide business structure), Step 2 (Secure primary permits and register name with DTI for sole proprietorships or SEC for corporations/partnerships, Barangay Clearance, LGU Business Permit, and BIR TIN), Step 3 (Obtain specific clearances like environmental compliance, health/sanitation permits, fire safety inspection), Step 4 (Deal with LGU for Mayor's permit, location inspection, and local taxes, plus other agencies like BIR, SSS, PhilHealth, Pag-IBIG, and Customs), and Step 5 (Deal with private bodies like banks, suppliers, clients, and professional/industry associations).[cite: 7]

Securities and Exchange Commission (SEC)

The government agency responsible for registering and regulating partnerships and corporations in the Philippines.[cite: 7]

Department of Trade and Industry (DTI)

The government agency responsible for business name registration and regulation of sole proprietorships.[cite: 7]

Local Government Unit (LGU)

The municipal or city administrative body (including the Business Permits and Licensing Office) responsible for inspecting premises, collecting local taxes/fees, and issuing the Barangay Clearance and Mayor's Business Permit.[cite: 7]