ENTREPRENEURSHIP 4.

Register With The Bureau of Internal

- Entrepreneurship Revenue (BIR)
• Is the act of creating a business or businesses - After you receive your certificates and
while bearing all the risks with the hope of permits from DTI and LGU, it’s time to
making a profit. register your sole proprietor business with the
- Entrepreneur BIR. To do this, you will need to visit your
• A person who organizes, manages, and regional district office in the city where your
assumes responsibility for a business or other business is located. You will be required to
enterprise; a businessman. fill out a BIR form 1901, which is an
- Enterprise application to register your sole
• A for-profit business started and run by an proprietorship. In addition to your completed
entrepreneur. BIR form 1901, you will need to submit your
Characteristics of an Entrepreneur Certificate of Registration from DTI, your
1. Risk taker Barangay Clearance Certificate, your
2. Opportunity hunter Mayor’s Business Permit, proof of residency,
3. Profit maker and valid ID. You will also have to pay for
4. Innovator registration, (BIR Form 0605), and register
your book of accounts and provide any
HOW TO ESTABLISH A SMALL (SOLE receipts or invoices you have for the business.
PROPRIETORSHIP) BUSINESS After all of this has been completed, you will
1. Register your business name at the be able to claim your certificate of
Department of Trade and Industry (DTI) registration, (BIR form 2303).
- Make sure to search the DTI website to see if
there are any businesses in existence that SOLE PROPRIETORSHIP
have a name similar to yours. If the business - Sole Proprietorship
name that you want is available, fill out a
• It is the most basic type of business
business name application form, and submit
organization in the Philippines. It can be
it to DTI’s office. You must wait for your
established by just one person, referred to as
DTI certificate of registration before you
a sole proprietor. Essentially, your business
move onto the next step of opening your own
in a sole proprietorship is an extension of
sole proprietor business.
yourself, so the assets and liabilities of your
2. Register with Barangay
business are also your own assets and
- Once you have received your certificate of
liabilities. With a sole proprietorship, the
registration from the DTI, it’s time to go to
business and the owner are considered as one
the Barangay where your business is located
taxpayer in the Philippines, so they would
to fill out an application. In addition to your
share a single TIN. Registration for a sole
application, you will need to submit your DTI
proprietorship is done at the Department of
Certificate of Business Registration, two
Trade and Industry (DTI).
valid IDs, and a proof of residence. Wait and
ADVANTAGE DISADVANTAGE
claim your Barangay Certificate of Business
Easy to establish and Owner receives all
Registration.
low organizational losses (Since solo niya
3. Register your sole proprietor business with
cost (madaling itayo, lahat ng tubo, solo niya
the Mayor’s Office (LGU)
mas mura, mas di rin lahat ng lugi)
- The next step, after receiving your Barangay
komplikado)
certificate of business registration, is
Owner receives all Limited capital and
registering your business at the municipal
profits (solo ng may-ari financing (Wala
office in the city where your business is
yung tubo) gaanong investors, pera
located. You will need to fill out an
mo lang gagamitin
application, as well as submit your Certificate
mong capital)
of Business Registration from the DTI, your
Income taxed as Less effective decision-
Barangay Clearance Certificate, two valid
personal income of the making (Wala kang
forms of ID, and proof of residency.
owner (Iisa lang tax ng katulong sa decisions
business at ng owner since mag-isa ka)
 unlike sa corporation na
2 times mag tatax)
Independence (Sariling CORPORATION
desisyon ng owner, - Corporations
wala nang makiki-epal) • A corporation is a business that is owned by
Ease of dissolution multiple people, a minimum of 15 people in
(Madaling itigil ng the Philippines. Each co-owner is called a
owner kapag ayaw niya shareholder, and their identities are separate
na) from that of the business. A shareholder
should be able to contribute at least ₱5,000 to
PARTNERSHIP the capital. Their responsibilities would
- Partnership depend on their contribution. Like
• Partnerships are formed between two (or partnerships, corporations are registered at
more) people who agree to own a business the SEC.
together. They are generally expected to Example of corporations in the Philippines: SM,
invest money, property, and industry in the San Miguel Corporation, Ayala, PLDT, Globe,
business together and divide the profits Jollibee, etc.
between all the parties involved. The two ADVANTAGE DISADVANTAGE
types of partnerships are general and limited Can achieve large size Double taxation
partnerships. General partnerships require all due to marketability (Nagtatax yung kita ng
co-owners to be responsible for all of the of stocks (yung stocks corporation at nag tatax
company’s assets and liabilities. In limited pwede siyang iopen sa din yung owners, unlike
partnerships, each partner is only responsible public kaya maraming sa sole at partnership na
depending on the amount of capital they pwedeng mag-invest isahan na lang)
contribute. For partnerships in the kaya mas lalaki yung
Philippines, you register with the Securities kompanya)
and Exchange Commission (SEC). Shareholders have More expensive and
ADVANTAGE DISADVANTAGE limited/low complex to form (dahil
Low organizational Profit is shared responsibility (since malakihang business na
cost (gaya lang sa sole (Kailangan pang marami nang siya, kailangan ng mas
proprietorship) paghatian ng mag- shareholders(owners), malaking capital at mas
business partners yung hindi na sosolohin yung mahirap din buohin
tubo. responsibilidad ng
Responsibilities are Potential conflicts isang tao kapag nalugi
shared between between partners yung company di gaya
partners (Hindi mo na (pwedeng magkaron ng sa sole)
solo yung responsibility away, Better financing (since Subject to more
in case na malugi unlike misunderstanding, etc. maraming pwedeng government
sa sole) sa pagitan ng business mag-invest, regulation (mas
partners. magkakaron ka ng maraming requirements
Better and more madaming investors, na kailangan regarding
expertise and more investors = more sa legal matters, at mas
managerial skill are puhunan) maluwag yung
available (May gobyerno sa sole at
katulong ka na unlike sa partnership kaysa rito sa
sole na mag-isa) corporation)
Better financing (May Longer life (mas
kahati ka na sa ilalabas tumatagal yung
na puhunan kasi may corporation kaysa sole
business partners na) or partnership)
Income taxed as
personal income of
partners (gaya lang sa
sole)
 IMPORTANCE OF ENTREPRENEURSHIP
- Provides Employment
• Entrepreneurship generates employment. It
provides an entry-level job, required for
gaining experience and training for unskilled
workers.

- Innovation
• It is the hub of innovation that provides new
product ventures, market, technology and
quality of goods, etc., and increase the
standard of living of people.

- Contributes to Society and Community

Development
• A society becomes greater if the employment
base is large and diversified. It brings about
changes in society and promotes facilities
like higher expenditure on education, better
sanitation, fewer slums, a higher level of
homeownership. Therefore, entrepreneurship
assists the organization towards a more stable
and high quality of community life.

- Increase Standard of Living

• Entrepreneurship helps to improve the
standard of living of a person by increasing
the income. The standard of living means,
increase in the consumption of various goods
and services by a household for a particular
period.