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RELATED LOCAL LITERATURE
“A small-scale business is a business that is privately owned and operated, with a small
number of employees and relatively low volume of sales. In addition to number of employees,
other methods used to classify small companies include annual sales (turnover), value of assets
and net profit (balance sheet), alone or in a mixed definition.” (Entre Pinoys Atbp. Business
Ideas Philippines, 2015)
As stated by Entre Pinoys Atbp. Business Ideas Philippines (2015), small businesses are
more likely to experience numerous challenges and problems than those bigger ones. These
businesses are more vulnerable on encountering difficulties when it comes on attracting
customers, alluring employees, business development, competing against bigger companies, and
finance expansion. Accordingly, products and services that are being offered by large-scaled
business are getting more consumers than those small-scaled ones. It is for the reason that the
larger businesses have already solidified their brand and gained so much consumer satisfaction
and superior value. Besides, small business were mostly consists of newly-opened businesses.
By this means, their marketing strategies are not that yet as great as the marketing strategies of
the large enterprises. Due to their size, many small-scale businesses find it difficult to grow.
They have limited budgets to use for expansion and acquiring highly-skilled employees. As a
result, they have limited human resources to work with their company’s welfare and
development.
Narvas (2018) enunciated that small companies face problems on doing their statement
of cash flows. With this, they are not being knowledgeable enough on their business’ current
status. The exporting of products is a part of their burden as well. It is because they are lack of
awareness about the constitutional process of delivering stocks to the international market. In
addition, small enterprises are having a trouble on tax compliance. They tend to have a delay
payment because of their deficient financial resources.
Small businesses in the Philippines are having political dilemma. The rights and policies of the
government are mostly constructed for the sake of the richest of the richest. Past administrations
have focused on making projects that benefit the large businesses the most. In the current
context, the Philippines have enough laws with the necessary safeguards to assist them.
Implementing these laws will give more strength to our SMEs to be able to compete against
regional rivals. However, most of small enterprises still find it difficult to access loans and other
forms of financial assistance. (Manilatimes.net, 2016)
RELATED FOREIGN LITERATURE
As explained by Charles (2017), small businesses do really have a great number of
challenges. They are not having a good health management as they do not have enough budgets
for it. With this, their employees are most likely to be vulnerable on health problems physically,
mentally, and etc. Small enterprises also have a problem with their national government’s rules
and regulations. They tend to have activities that are strictly prohibited by their constitution. As a
result, they are being kicked away on their sustainable boxes. In addition, micro companies
haven’t planned for the increase on their customers and their product/service productions are
liable to fall by the wayside. Subsequently, consumers patronize the macro businesses instead of
small business because of having such shortcomings.
Beattie (2019) stated that micro business is an exciting activity but maintaining and
developing it is a huge challenge for the owners. Small enterprises tend to have a lot of hurdles
to overcome inside and outside their company’s environment. One of these is the fatigue that
they are most likely to experience because of their long working hours. Due of having a lack of
manpower resources, business practices and activities are not equal to the number of their
employees. Therefore, it could result to a scenario that an individual is having a loaded
responsibility which could lead them to give up their jobs. In addition, small businesses tend to
depend on their founder or on their consumers. By this means, if any of the two would suddenly
disappear, then their business will most likely to disappear soon as well.
Hardships and difficulties are words that the large companies are not familiar with. Problems
such as inexperience, business size, and the lack of resources are not on their culture. However,
the small enterprises do really face this undeniable dilemma. It is because of money matters,
employees’ skills, and quality of their service or product. Accordingly, micro enterprises are
dealing with a little financial support. Their capitals are not that sufficient enough to sustain their
performance and business activities. Possible, this is happening because of having not enough
knowledge on how can they manage their money well. To the point that they could not make any
possible resolutions whenever there will be a financial crisis. Also, small entities do not have the
best product. In fact, most of them are just reselling and reproducing products of the large
companies. By this means, a lot of consumers think that purchasing products of large-scale
businesses is better than to the small business.

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RELATED LOCAL LITERATURE

Ideas Philippines, 2015)

businesses are more vulnerable on encountering difficulties when it comes on attracting

payment because of their deficient financial resources.

forms of financial assistance. (Manilatimes.net, 2016)

RELATED FOREIGN LITERATURE

As explained by Charles (2017), small businesses do really have a great number of

small business because of having such shortcomings.

employees. Therefore, it could result to a scenario that an individual is having a loaded

businesses is better than to the small business.

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