Types of Businesses

Types of Businesses Available to Entrepreneurs

​I. Business Classifications by Asset Size

I​n the Philippines, businesses are primarily categorized by their total asset value and the
number of people they employ:

●​ ​Micro Enterprise
○​ ​Asset Size: Not exceeding ₱50,000.
○​ ​Operations: Often home-based or in temporary quarters; owner-led.
○​ ​Employees: 1–10 people.
○​ ​Examples: Food vendors, sari-sari stores, or rolling store owners.

●​ Cottage Enterprise
○​ ​Asset Size: ₱250,000 to ₱500,000.
○​ ​Operations: Home-based and usually operated by family members.
○​ ​Examples: Artisan home studios, food manufacturers, or footwear
subcontractors.

●​ ​Small Enterprise
○​ ​Asset Size: ₱500,000 to ₱2.5 million.
○​ ​Ownership: Individual or group-owned.
○​ ​Employees: 10–20 people.
○​ ​Examples: Groceries, bakeshops, beauty salons, or medical/dental clinics.

●​ ​Medium Enterprise
○​ ​Asset Size: ₱5 million to less than ₱20 million.
○​ ​Ownership: Single individual, partners, or a corporation.
○​ ​Employees: More than 20 to 100 people.
○​ ​Examples: Fine dining restaurants with branches, garment manufacturers, or
private schools.

●​ ​Large Enterprise
○​ ​Asset Size: ₱20 million or more.
○​ ​Ownership: Often managed by a corporation with a complex management
system.
○​ ​Employees: 100 or more workers.
○​ ​Examples: Large department stores, big fast-food chains, banks, or insurance
companies.