URDANETACITYUNIVERSITY

COLLEGE OF ENGINEERING AND ARCHITECTURE

Q093
BUSINESS MANAGEMENT & APPLICATION
FOR ARCHITECTURE 1

“BUSINESS ENTERPRISE IN THE PHILIPPINES”

MT HRA # 1

Date Due: October 18, 2024

BALAGOT, BILL ELY M.

Student

AR. ALBERT T. PASCUA, UAP

CEA- Instructor
 The Philippine Business Enterprises
Business
• Selling of goods and services.
• “Social process which involves the assembly and utilization of resources to produce goods and
services in order to satisfy the needs of society.” – Prof. Lawrence Gitman of Wright State University
Organized to acquire profit.
- “The purpose of a business is to create a customer and satisfy him. “Peter Drucker
- It is the customer who determines what a business is.

Business Basic Resources

Men – people who work in the business.

-considered the most important resource
-organizations should train and treat their people well

Money – funds for acquiring materials and machine, and paying for operating expenses.

Machines – more efficient and economical.

Business Basic Resources

Materials – for creation of products.

Methods – technology or techniques of production.

Economic Systems Model

- An economic system is a set of economic institutions that dominates a given economy.

- Its basic objective is to satisfy the economic needs of the people.
- Criteria of performance: abundance, growth, stability, security, sufficiency, justice, and economic freedom.

Capitalism – factors of production and distribution are owned and managed by private individuals.
Essential features:
• Private property
• Economic freedom
• Free competition
• Profit motive
Communism – factors of production and distribution are owned and managed by the state. Essential
features:
• No one owns property privately
• Government is the only producer and seller
• There are no economic freedoms
• The profit motive is prohibited.
Socialism – mixture of capitalism and communism. Major industries belong to the State while the minor
industries belong to the individuals. Lower stage of post-capitalism according to Karl Marx. Essential feature
constitute both those of capitalism and communism.

Basic Market Models

• Market Models are theoretical frameworks for existing firms and industries.

• Describe the features of the various market structures.

Pure Competition – a market situation where there is a large number of independent sellers offering
identical products i.e corns, fishes, vegetables

Pure monopoly – a market situation where there is only one producer or seller. i.e. MWSS, Meralco

Monopolistic Competition – a market situation where there is a relatively large number of small producers. i.e.
banks, book publication, drugs, tailoring shops, gasoline stations.

Oligopoly – a market situation where there are a few firms offering standardized of differentiated goods and
services. i.e cars, diamonds, steel, cement, airplanes, locomotives

Philippine Business Development

• Barter system
• Early 10th Century – trade with the Arabs
• 300 years later – Chinese dominated trade from Batanes to Sulu. Such expanding trade with
other countries created new communities in bay areas i. e. Sta. Ana Manila. Local traders went as
far as Malacca, China and Borneo to transact their businesses.
• Spanish colonial rule – Chinese dominated the retail trade business while the Spanish elite
monopolized the Manila-Acapulco trade and the tobacco business.

• American colonial period – exporting of raw materials and primary products for U. S. factories
and importings of finished U.S. products.
• Japan Invasion period – same as when the American colonized us, we exported of raw
materials and primary products for Japan factories and imported of finished Japanese products.

• Post WWII – spread of communism, hence business plunged into its lowest level. US agreed to
Import Control Policy during Pres. Carlos Garcia’s time. “Filipino first” policy. Then, the
Philippine business flourished.

• After 7 years – Free Trade Agreement with U.S. was established again.
 • Business environment refers to the factors that affect the efficiency of a business
enterprise.
• In economics, it is called the economies of scale.
• Can be found within or outside the business.

• Internal business environment i.e. management, technology, facilities, financial incentives. If

favorable to employees, customers, suppliers, stockholders and to the community where the
company operates, then it is a good business environment.

• External business environment i.e. peace and order, transportation, telephone, and electric facilities,
monetary and fiscal policies, political, social, and economic conditions. If the external forces are
favorable, it only means profitable business (if internal environment is also in good condition)

The Role of the Government

• Assistance and control

• Protection of consumers and other sectors in the society
• Major areas of government regulation of business enterprises:

1. Occupational safety – workplace and work environment are safe for workers (DOLE)
2. Fair labor practices – regulations of unfair labor practices (DOLE)
3. Consumer protection – regulation of activities of business firms (i.e. Sales Returns DTI, FDA)
4. Pollution prevention – protection of people and the environment against the ravages of pollution.
(DOH)
5. Economic Security – financial and technical assistance from the government (GSIS, SSS, NHC)

Business for the Poor

• Agrarian reforms and cooperatives

• “Credit for the Poor”
- Microfinancing
-Rural Banks and government banks
REQUIREMENTS FOR BUSINESS PERMIT
Obtaining a Business Permit or Mayor’s Permit is just one of the steps that you have to go through in
order to have your business completely registered. A Mayor’s Permit is a prerequisite in securing a Tax
Identification Number (TIN) and therefore is a requirement of the Philippine Law before anyone is able
to operate a business in the country.

Different Municipalities or Local Government Units may have different processes and requirements
when it comes to providing business permits. It’s best to first inquire and research about your
municipality’s (or city’s) conditions to be able to fully prepare. You are lucky enough if your business is
located in any of the following areas since they have their website available with the complete procedure
and requirements on how to get a Mayor’s permit:

• Bacolod City

• Baguio City

• Caloocan City

• Cebu City

• Davao City

• Iloilo City

• Manila City

• Makati City

• Mandaluyong City

• Muntinlupa City

• Pasay City

• Pasig City

• Puerto Princesa City

• Quezon City

• San Juan City

• Tacloban City

Business Permit Requirements in the Philippines

For the locations that are not listed above, you may use this article as a guideline so you can still process
your permit. The most common and basic business permit requirements in the Philippines include:
1. Barangay Clearance. You can get a Barangay Clearance from the local Barangay where your

business is located. You would be asked to present a photocopy of your SEC/DTI/CDC Registration

and a contract of lease or TCT as well as pay a minimal Barangay Clearance Fee to be able to get

this.

2. Certificate of Registration. For sole proprietors, present your DTI Business Name Certificate,

while a Certificate of SEC Registration shall be presented by corporations and/or partnerships.

 There are times when you may also be asked for Articles of Incorporation or Articles of Partnership

so have these documents ready too just in case.

3. Contract of Lease if you are leasing your business’ area, however, if you own the place, a copy of

the Transfer Certificate of Title (TCT) or Tax Declaration is what you would provide.

4. Certificate of Occupancy. A sketch or pictures of your business’ location and Fire Inspection

Certificate will be required to get a certificate of occupancy.

5. Community Tax Certificate or CEDULA. This can be easily obtained at the City Treasurer’s

Office in your city hall.

6. Fire Safety Inspection Certificate or Fire Permit. To have this processed, you will be asked for

a few documents such as Building plans, Building permits, Barangay Business Clearance, Fire

insurance coverage, and recommendations from fire safety inspectors.

7. Building Permit and Electrical Inspection Certificate. There are a lot of papers and documents

required in order to acquire this permit and certificate. Make sure to have the following prepared:

complete and detailed building plan, lot plan, homeowners’ clearances (if applicable), barangay

clearance, fire safety requirements, Contract of Lease and authorization of owner if renting or

Land title, tax declaration, or tax receipt if owned, contractor’s business permit, a sketch of the

office location, old building permit (if applicable), bill of materials, specifications, and structural

computation.

8. Locational Clearance. Locational clearances are usually released within 3 days but may be

extended for up to 5 days if an inspection is considered necessary. You can get this at the Zoning

Office of your city hall by simply asking for the application form and submitting the following

requirements: A notarized Contract of Lease, Certificate of Occupancy (complete with the Building

Name and Unit number if applicable), Sketch or pictures of your business’ location, Building

Permit, Authorization from the owner (if you are renting), Certification of No Renovation, and

Declaration of Real Property Tax.

9. Sanitary Permit. Food and Non-food business companies are required to secure a sanitary

permit to make sure they follow the standards of the Sanitary Code of the Philippines. You would

usually be asked to provide a Chest X-Ray and 1×1 picture from each employee, payment of

sanitary permit and sanitary inspection fees, medical certificate or Health Card issued by the City

Health Officer or an authorized representative so you can get a sanitary permit.

Other documents necessary depending on the nature of your business:

• Public Liability Insurance – for restaurants, malls, cinemas, etc.

• National Grains Authority License – for dealerships involving rice, corn, & wheat.

• Bureau of Food and Drug Administration Permit – for drugstores, bakeries, etc.

• Accreditation by the Department of Trade and Industry (DTI) – for auto repair shops,

electronics, radios, and other electrical equipment services.

• Real Estate Broker’s License (from DTI) – for real estate brokerage firms

• Pest Control License – for Pest Control Services

• LTO Franchising and Regulatory Board Permit – for services involving transportation

• Energy Regulatory Board (ERB) – for LPG dealerships

After all the processes you have to go through in getting your Business Permit for the first time, keep
in mind that this permit must also be renewed yearly, specifically, in January. Even though renewing
such is an easier process than obtaining this permit for the first time, processing its renewal on time is
still very important and being unable to renew it will serve as an offense.

Now, as you have probably figured out, too many papers and documents are involved in processing a
business or mayor’s permit that it can get overwhelming and time-consuming. Concerns like this are
always best processed by experienced lawyers to save you a great amount of time and effort. Imagine
all the days you would have to go back and to different government agencies just to fulfill a
requirement – those days could actually be spent on growing your business.