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Here is a quick guide to properly differentiate a micro business from other types of businesses:
ABSTRACT
INTRODUCTION
Since the 1990s, there has been a resurgence of interest on the role of small-scaled
business enterprises or small and medium enterprises (both will be referred to as
"SMEs" hereafter) in national and international economic and social development.
This is consistent with the overall shift of development strategies in many countries
toward a more decentralized, even localized, approach. As such, many scholars,
practitioners, and institutions involved in economic development have begun to
recognize the important roles that smaller-scale business entities play in the economy
and society. More and more people are becoming convinced that these entities can be
a very effective means of achieving, not only economic progress, but social goals
(e.g., a more equal income and a greater appreciation for diversity in gender and race)
as well. All of these suggest a greater need to increase our understanding of the nature
and capabilities of family businesses and SMEs and the kinds of policies and
incentive systems that would be appropriate, necessary, and effective in encouraging
and strengthening them.
Like those in other countries, SMEs in the Philippines make significant contributions
to the overall economy and the country's pursuit of economic development. Data show
Filipino SMEs to make up more than 99% of all businesses in the country, provide
more than two-thirds of the country's employment, and is responsible for almost one-
third of the country's income (Philippine Department of Trade and Industry, 2003).
Given their economic importance (others also highlight their social significance),
Filipino SMEs are an interesting subject of study. Consequently, one would expect to
find numerous studies on them. This, however, is not the case, most probably because
of a number of issues that complicate their study.
One of these issues has to do with the different perspectives on different aspects
related to SMEs. Depending on which perspective the researcher uses as the primary
source of insight and information, one gets a very different picture. In the study of
Filipino SMEs, at least 3 different perspectives could be identified: that of
policymakers, SME owners, academician and scholars.
Policymakers' Perspective
In Philippines, government support to SME looks very good on paper. Specific
legislation (Republic Act 6977: Magna Carta for Small Enterprises, signed in 1991;
amended as Republic Act 8289 in 1996), institutions (such at the Department of Trade
and Industry/Bureau of Small and Medium Business Development, University of the
Philippines-Institute for Small-Scale Industries, and institutions that provide credit or
credit guarantee to SMEs); publications give the impression that the government pays
careful attention and takes sufficient action to encourage SMEs. …
The Truth in Lending Act (TILA) of 1968 is a United States federal law designed to promote the informed use
of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs
associated with borrowing are calculated and disclosed.[1]
TILA also gives consumers the right to cancel certain credit transactions that involve a lien on a consumer's
principal dwelling, regulates certain credit cardpractices, and provides a means for fair and timely resolution of
credit billing disputes. With the exception of certain high-cost mortgage loans, TILA does not regulate the
charges that may be imposed for consumer credit. Rather, it requires uniform or standardized disclosure of
costs and charges so that consumers can shop. It also imposes limitations on home equity plans that are
subject to the requirements of 12 C.F.R.1026.40 and certain "higher-priced" mortgage loans (HPMLs) that are
subject to the requirements of 12 C.F.R. 1026.35. The regulation prohibits certain acts or practices in
connection with credit secured by a consumer's principal dwelling.