Socio- Economic Study Each business has a goal to be profitable and also to help the community in such ways and in line with this Socio-economic study attempts to determine economic impacts on society or on GNP. These are not easy to measure. In fact, economist may debate the calculating methods and assumptions of benefits and losses, depend on how they view projects impact, the economy, etc. And as we present this feasibility study, the group tries to determine the contribution of the business to the improvement of living standards, community development and the impact on the following; employment and income, taxes, supply of commodities and demand for materials. i. Employment and Income The laundry shop, Biba Lavandera, will definitely have good role in the community. This will create employment and income especially to those residents of the village. The laundry shop will need three employees that will help us in satisfying our customers, and in return our employees will be compensated according to the effort they show. The laundry shop will provide a steady source of income that eventually improve the standards of living of the employees that will affect the growth of the economy. The laundry shops provide significant economic and social contributions to Filipino families and to the country as a whole. ii. Taxes Laundry shop is a large, growing and unique industry in the Philippines. In connection to this, the Biba Lavandera will obviously help the economy by being a good tax payer. These taxes are the land taxes or Real estate tax that is levied on Philippine real property and the applicable rate varies depending on the location. The maximum rate that a city or municipality within Metro Manila may impose is 1% while cities and municipalities outside Metro Manila may levy the tax at the rate not exceeding 2%. The owner has the option to pay the tax in four equal installments on or before the last day of each calendar quarter. Individual income tax of the employees, Income Tax is a tax on a person's income, emoluments, profits arising from property, practice of profession, conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of 1997 less the deductions and/or personal and additional exemptions, if any, authorized for such types of income, by the Tax Code or other special laws And according to the Bureau of Internal Revenue the employees deriving compensation income regardless of the amount, whether from a single or several employers during the calendar year, the income tax of which has not been withheld correctly (i.e. tax due is not equal to the tax withheld) resulting to collectible or refundable return are required to file income tax returns. Social tax paid by employers or annual income tax for self-employed individuals, estates and trusts (including those with business and compensation income). VAT taxes paid by the operators, Value-Added Tax are a form of sales tax. It is a tax on consumption levied on the sale of goods and services and on the imports of goods into the Philippines. It is an indirect tax, which can be passed on to the buyer. And according to the BIR every person or entity who in the course of his trade or business, sells or leases goods, properties and services subject to VAT, if the aggregate amount of actual gross sales or receipts exceed One Million Five Hundred Thousand Pesos (P 1,500,000.00) for any twelve month period. iii. Supply of commodities The production of the laundry shop favorably affects the supply situation of the industry in different ways. The pricing of our service significantly depends on the quantity that the business will acquire and on the tax paid or the VAT. Special prices of the competitors will perhaps influence the pricing of the business-- Biba Lavandera. Robinsons Homes East already had a laundry shop; the establishment of Biba Lavandera in the premise will help reduce the supply shortage within the village that will result in cheaper prices. And the existence of Biba Lavandera will eradicate local domination of only one laundry shop in the vicinity. Just competition will arise because of reasonable price of the services we provide. It will be improved by the supply and the superiority of the commodities to meet up the competition and to be more competent in the industry. iv. Demand for materials Operating the Biba Lavandera increases the demand for the materials needed. The materials needed are acquired from local businesses or producers. Patronizing our local producers will somehow adds up to the demand for their product and will give them expansion opportunity. Through this, it helps other businesses as well to attain their goals and objectives.
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