There are agencies established by the government that give support to entrepreneurs. The government is doing this in order to prevent them ...
There are agencies established by the government that give support to entrepreneurs. The government is doing this in order to prevent them from becoming unsuccessful in the business they are pursuing. The support is on the following:
1. Administrative Support. An entrepreneur has to register his business in order to make it legal. There are permits and licenses needed to export and import a product. In the application of a loan, the permits and licenses are needed.
In making transactions with the government, certain procedures and requirements have to be followed. Complying with all the requirements are tedious and time consuming because it is the government itself that is making it difficult for the entrepreneur. As a result, the government is being accused of bureaucratic red tape. The government should not be blamed because the procedures and requirements are necessary to protect both the public and the entrepreneur. Securing the permit and licenses protect the entrepreneur from scrupulous people who have bad intentions of copying the product for profit, thus protecting the intellectual property rights of the maker. Another reason is that the consumer is also protected.
To avoid red tape, the government should simplify the system of processing the papers for issuance of permits and licenses. A committee should be formed, to study and initiate changes in the registration of the business in order that the entrepreneur can finish the registration in the shortest time possible. In this manner, bribery or "lagay system" will be stopped. hence, this is good management on the part of the government agency in-charge of the task.
Due to good governance many entrepreneur will be encouraged to organize business ventures and because of efficient issuance of permits and license, there will be lesser or even stop graft and corruption.
2. Peace and Order. When an area or community is orderly and peaceful, people transfer and establish residence there. Similarly, entrepreneurs prefer to put up a business in a safe and peaceful community. A business is likely to prosper in a place that is safe for everybody, for the business and for the property. A trouble-free place is a good place for investment.
The support of the government here is to implement the laws, the rules and regulations in order that peace and order is maintained. It is the responsibility of the police and military to enforce them.
3. Facilities and Infrastructure. An entrepreneur is inclined to start business in a community with good facilities and infrastructure. How can a business successfully prosper if there are no available facilities within the business area. transportation by land, sea, and air are important in order that the entrepreneur can deliver his products anytime and anywhere. Roads, seaports, and airports must be built and maintained. Facilities like electricity, water, telephone, and banking services are equally important. The electric power is used to light the factory, run the appliances and machines while the telephone facility is for the means of communication to get in touch with the customer. Water is a necessity. Banking services should be available for all transaction involving money.
4. Assistance Program to Small Enterprise. There are agencies of the government that have set up[ programs to give assistance to small enterprises. The assistance that they give are in the form of technical, financial, marketing, or training services. This is being done because the government value the contributions of the small business to the development of the country. The support enables entrepreneurs to continue their operations and make them efficient and profitable.
Kalakalan 20
Small enterprise have to be registered with the different agencies of the government. the level of registration depends upon the legal form of the business to be registered. The easiest one to register is the sole proprietorship while a corporation has a complex procedures.
A law which is called Kalakalan 20 exempts from registration rural enterprises employing less than 20 workers and with a capital of not more than P500.000. However, they have to register at the city or municipality where they do business in order to pay a reasonable registration fee instead of paying all the taxes, licenses, and business permit including other business taxes. Aside from these, they are still obliged to pay the real property tax and other taxes if they are importing materials from other countries.
Magna Carta of Small Industries
The Magna Carta of small industries was passed in the light of the substantial contributions of the small and medium scale businesses to the national economy. It aims to promote, assist, and provide information through the following:
1. Administrative Support. An entrepreneur has to register his business in order to make it legal. There are permits and licenses needed to export and import a product. In the application of a loan, the permits and licenses are needed.
In making transactions with the government, certain procedures and requirements have to be followed. Complying with all the requirements are tedious and time consuming because it is the government itself that is making it difficult for the entrepreneur. As a result, the government is being accused of bureaucratic red tape. The government should not be blamed because the procedures and requirements are necessary to protect both the public and the entrepreneur. Securing the permit and licenses protect the entrepreneur from scrupulous people who have bad intentions of copying the product for profit, thus protecting the intellectual property rights of the maker. Another reason is that the consumer is also protected.
To avoid red tape, the government should simplify the system of processing the papers for issuance of permits and licenses. A committee should be formed, to study and initiate changes in the registration of the business in order that the entrepreneur can finish the registration in the shortest time possible. In this manner, bribery or "lagay system" will be stopped. hence, this is good management on the part of the government agency in-charge of the task.
Due to good governance many entrepreneur will be encouraged to organize business ventures and because of efficient issuance of permits and license, there will be lesser or even stop graft and corruption.
2. Peace and Order. When an area or community is orderly and peaceful, people transfer and establish residence there. Similarly, entrepreneurs prefer to put up a business in a safe and peaceful community. A business is likely to prosper in a place that is safe for everybody, for the business and for the property. A trouble-free place is a good place for investment.
The support of the government here is to implement the laws, the rules and regulations in order that peace and order is maintained. It is the responsibility of the police and military to enforce them.
3. Facilities and Infrastructure. An entrepreneur is inclined to start business in a community with good facilities and infrastructure. How can a business successfully prosper if there are no available facilities within the business area. transportation by land, sea, and air are important in order that the entrepreneur can deliver his products anytime and anywhere. Roads, seaports, and airports must be built and maintained. Facilities like electricity, water, telephone, and banking services are equally important. The electric power is used to light the factory, run the appliances and machines while the telephone facility is for the means of communication to get in touch with the customer. Water is a necessity. Banking services should be available for all transaction involving money.
4. Assistance Program to Small Enterprise. There are agencies of the government that have set up[ programs to give assistance to small enterprises. The assistance that they give are in the form of technical, financial, marketing, or training services. This is being done because the government value the contributions of the small business to the development of the country. The support enables entrepreneurs to continue their operations and make them efficient and profitable.
Kalakalan 20
Small enterprise have to be registered with the different agencies of the government. the level of registration depends upon the legal form of the business to be registered. The easiest one to register is the sole proprietorship while a corporation has a complex procedures.
A law which is called Kalakalan 20 exempts from registration rural enterprises employing less than 20 workers and with a capital of not more than P500.000. However, they have to register at the city or municipality where they do business in order to pay a reasonable registration fee instead of paying all the taxes, licenses, and business permit including other business taxes. Aside from these, they are still obliged to pay the real property tax and other taxes if they are importing materials from other countries.
Magna Carta of Small Industries
The Magna Carta of small industries was passed in the light of the substantial contributions of the small and medium scale businesses to the national economy. It aims to promote, assist, and provide information through the following:
- The creation of small and medium industries development council to spur the development of the small and medium industries.
- The establishment of Small Business Corporate and Finance Corporation (SBGFC) by financing their needs.
- The rationalization of the government assistance programs and agencies concerned with the development of the small industries.
