Micro Entrepreneur – Who Is He/She?

A micro entrepreneur is an owner, whether single proprietorship, partnership, cooperative, or corporation of small business activity/enterprise engaged in industry, agribusiness/services that have 1 to 9 employees whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, must have a value of up to PHP 3,000,000.00 (USD 68,665.84).

Micro Enterprises Worth Venturing Into

Results of the research project conducted by a prestigious research firm in the Philippines revealed that the 5 micro enterprises worth venturing into by a micro entrepreneur are:

1- Sari-Sari Stores. These are rudimentary retailing enterprise. Capital and labor-skill requirements are minimal and entry barriers are low. The business popularity is high as it is the poor man’s miniature version of a “7-11″ convenience store.

2- Mini-Groceries. These are bigger, more sophisticated businesses than sari-sari stores. They are worlds apart in terms of store operations, money handling, and growth prospects. Merchandise assortments are wider, and markets extend beyond immediate neighborhood, making the enterprise site-sensitive.

3- Ready To Wear (RTW) Trading. These are classic “buy low, sell high” trading enterprises, requiring lower selling/merchandising skills than shopping malls. RTW traders flock together inside and around public markets, and among informal clusters at informal markets along the town’s main roads. The clustering tradition enhances collaboration, superseding competition.

4- Carinderias. These are roadside low-priced eating places. They are also known as a “turo-turo” because the customers can just literally point at the food they want to get. Simple in facilities/amenities, not quite restaurants, they home-cook on premise the favorite dishes served at home. Culinary skills are imperative.

5- Small Bakeries. Also known as bake shops, are places where products such as bread, cake, and pastries are baked or sold with an average of PHP 100,000.00 (USD 2,288.86) sales per month on median capital of PHP 70,000.00 (USD 1,602.20 ). The smallest ones service residential areas; the bigger ones are on high-pedestrian-traffic sites. Sales are strongest at breakfast time and going-home hours. Staple products are “pan de sal” and tasty bread.

Contribution to the Economy
A micro entrepreneur contributes to the creation of wealth, employment, and income generation, both in rural and urban areas, thus, ensuring a more equitable income distribution. Also, the micro entrepreneur provides the economy with a continuous supply of ideas, skills, and innovations necessary to promote competition and the efficient allocation of scarce resources.

By: Edelito Sangco

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