In the Philippines, there are four types of businesses according to sizes, namely, micro, small, medium and large business enterprises. They can be classified according to the size of assets, equity or number of employees.
Basically, small businesses are those which have total assets (excluding the land used in business) of more than Php 3,000,000 to Php 15,000,000. Businesses which have total assets of Php 3,000,000 or less (excluding the land utilized by the business) are considered micro businesses in the country.
Furthermore, medium enterprises are those with total basic assets of Php 15,000,000 to Php 100,000,000 while large companies are those which have basic total assets of more than 100 million pesos although they can also classified according to other factors, such as equity size, number of employees, kinds of products, and type of consumers.
So if you are thinking of small business ideas, basically, these could be businesses which fall under the P3 million to P15 million total assets range. With that amount, you can already start a good business idea or opportunity that you think you can run successfully.
You can try an already successful business through franchising. There are several businesses for franchising in the Philippines which you can start if you have the skills and passion to succeed it. A lot of industries could already be franchised today, such as a drugstore, bakeshop, water refilling station, pizza shop, meat shop, Internet café, beauty salon, fast food, school, and even a gas and fuel station which require total initial investment of P3 million to P15 million.
If you think you have the entrepreneurial spirit, and you like to start a business from your own unique idea, you can also establish a business according to your dream. If you love the Internet or the IT industry, you can start an online business like creating a successful websites that can generate income and revenue through traffic conversion.
You can also start a business industry that is already common to us although not a franchise. For example, you can start a pawnshop, lending business, money remittance business, money changer, grocery store, and other businesses that can be accommodated by your money capital.
Another good business idea is to start a business according to your expertise. For example, if you’re a certified public accountant, you can start an accounting or auditing firm with proper accreditations. If you’re a civil engineer, you can start a small construction company. If you’re a dedicated teacher, you can start your own school with proper accreditations from TESDA, DepEd or CHED. If you’re passionate in body building, you can also start a fitness gym.
Starting a small business in the Philippines may be a great idea. However, you have to make sure that you are not only equipped with the financial assets or money needed to run your business but you also have to be fully equipped with the skills (management and marketing), talents, creativity, and passion to increase your success in doing business in the Philippines.
Finally, remember that although a small business may be determined according to its total assets, total equity, and number of employees, the true measurement of the size of a business is still measured according to the satisfaction of the business’ stakeholders, specially its customers.
Victorino Abrugar is an entrepreneur and founder of Optixor, Inc., a small startup digital marketing company based in the Philippines. Follow him on Twitter at @viclogic.
I volume to the idea of small business is somehow easy nowadays especially if you have the money to run it initially. But as you said it requires the skills and passion too.
Thank you for giving insights about many options we can do if we have initial investment at hand.
I like the idea of Franchising. It is quite easy with terms and plans.
I would still suggest to have a business that are in line with your passion and expertise. It is a lot easier in those kinds of business and you won’t feel that much pressure either since you have an idea of what you are into.