‘At the end of this lesson, the learner should be able to explain the importance of entrepreneurship to the Filipino people, state the significant contributions of entrepreneurship to the local community, and 3, determine the importance of entrepreneurship to the Philippine economy. NATURE AND. CONCEPT The significance of entrepreneurship in our lives cannot be undermined. Take a look at » small businesses, whether ordinary or not, that are operating in your community. These in be small restaurants or eateries, photocopying centers, convenience stores,and schoo! applies stores, Assess their importance and contributions to your life and to other people. imagine that these businesses do not exist. What do you think will happen to the people's 2 ‘Your daily experiences with these small businesses and. the benefits that you derive from m are clear testimonies to the important role that they play in our lives. In this lesson, we will take a look at the significant contributions of entrepreneurship to lives of Filipinos in general, he community, and the Philippine economy. Different related terials, studies, books) and literature on entrepreneurship, a5 wellas the gavernment, Os, and the academe, have identified and recognized the importance of entrepreneurship. -OMPOUNDED BENEFITS OF ENTREPRENEURSHIP First, itis important to havea background understanding of the effects ofentrepreneurship “he lives of individual Filipinos, the local community, the Philippine economy. Basically e benefits derived from entrepreneurship are compounded from one level to the next, It duces a chain of progressive results from the individual entrepreneur to the community, d finally to the whole Philippine economy. Tesson6s | Importance of Entrepreneurship a |In other words, the contributions of entrepreneurship cannot be specifically delineated from one party to another. Once the life of the entrepreneur or any individual Filipino is benefitted, the local economy where entrepreneurship is practiced benefits as well. When the benefits afforded by entrepreneurship to the people have been transferred to the local community, the effect is already doubled. When the Philippine economy grows on account of entrepreneurship, the concomitant effects of development and growth are returned by the government to the community and finally to every Filipino. Contributions of entrepreneurship Filipino people Figure 1.6. The Flow of Entrepreneurial Benefits In the given diagram, the first party to receive the benefits of entrepreneurship is the Filipino people. The term Filipino people in this case may include the entrepreneur himself/ herself and other people who have direct dealings with the entrepreneur in the community. The benefits received by the Filipino people are transferred to or shared with the local community where the concept of entrepreneurship is practiced. Then these are either transferred to the Philippine economy or flowed back to the Filipino people. The contributions or benefits of entrepreneurship that went to the Philippine economy are then flowed back to the local community and to the Filipino people. te Chapter t | Understanding EntrepreneurshipHere is an example to illustrate the domino effects of entrepreneurship. Jenny's Hair Saloon Jenny, upon seeing a promising and brilliant business opportunity in the _sommunity, opened a beauty shop. She went to the Department of Trade and Industry (DTI), the City Government ‘of Davao City, and the Bureau of internal Revenue (BIR) to process, pay, and comply with all the documentary requirements and fees in opening a business. The total taxes and licenses paid by Jenny in opening the business amounted to 5, 000, Upon receipt of the business permit, Jenny immediately bought all the needed Saulpment and materials for her beauty shop. For all these equipment and fixtures, she paid F'60, 000. She then rented a business space at 10, 000 per month, She hired and employed five beauticians and provided them salary above the imum salary and all statutory benefits. The total annual compensation and lefits paid by Jenny to her employees for the year amounted to 540, ooo. Jenny at the end of the year is enriched by 590, 000 after paying the annual some tax of F110, 000 to the BIR. ing the case of Jenny’s Hair Saloon, based on the flow of benefits and contributions neurship, the effects will appear as follows: Jenny as the entrepreneur is enriched by 590, 000 during the year. The five employees or beauticians are enriched financially at a total amount of 540,000. The owner of the rented building is enriched by 10,000 per month or 120,000 for the whole year, while the supplier of equipment and fixtures was enriched by 60,000. Fhelocal government collected! local taxes amounting to 5,000 from Jenny’s Hair: Saloon. The national government, through its collection agency, BIR, collected the annual income tax of F110,000. The taxes collected by the local and national government will be returned to the Seeral publicin the form of services like roads, street lights, police security, and other Public services, Senefits and contributions of entrepreneurial venture in this case will actually produce of benefits. For example, Jenny may be able to/hire more employees or build a new ‘9m account of the wealth generated from the venture. If she decides to construct a that will entail the hiring of construction workers and purchase of construction #Bising of construction workers will mean additional budget should be provided to salaries ‘The payment of salaries and wages to workers will mean increasing the disposal the workers. Lesson 6 | Importance of Entrepreneurship ii =Similarly the beauticians, because of their salary, may be able to send their children to school or buy additional household furniture and appliances. Sending of children to «choo! will mean buying school supplies and paying the tuition fees. Buying of additional household furniture and appliances will mean additional income to their sellers, The list of the possible effects and contributions of entrepreneurship seems limitless. Nevertheless, this book simply groups the major contributions of entrepreneurship to the Filipino people, the local community, and the Philippine economy. The listings indicated in a particular group are not all inclusive. Importance to the Filipino People Entrepreneurship makes the following contributions to the lives of the Filipinos: 1._ It provides guidelines in their wealth-creating ventures. 2. Ithelps improve their financial and social life. 3. It helps broaden their creativity. 4. It helps make their lives happy, fruitful, and successful. Importance to the Local Community Entrepreneurship, in one way or another, makes the following contributions to the local community: 1. It provides employment in the community. 2. It creates new demand in the market. 3. It makes substantial contribution to the raising and collection of taxes, 4. It facilitates the movement of the factors of production, 5. It creates new business opportunities, 6. It promotes a peaceful and loving community. 7. It increases constructive competition. Importance to the Philippine Economy Entrepreneurship makes the following contributions to the Philippine economy: 1. It encourages competitiveness and thereby challenges entrepreneurs to keep improving their products and services. 2. Ithelps find an entrepreneurial niche in the world market. 3."It helps hasten the economic recovery process of the Philippines during financial turmoil or crackdown, 4. If facilitates the smooth flow of money in the local market, 5." It assists the national government in its-desire to have favorable economic ratings in the world market. Chapter 1 | Understanding Entrepreneurship iPe EN 1. Entrepreneurship affects the lives of the Filipinos, the local community, and the Philippine economy. 2, Entrepreneurship makes the following contributions to the lives of the Filipinos: a, Itprovides guidelines in their wealth-creating ventures. b, Ithelps improve their financial and social life. ¢. Ithelps broaden their creativity. d. Ithelps make their lives happy, fruitful, and successful. 3, Entrepreneurship, in one way or another, makes the following contributions to the local community: a. Itprovides employment in the community. b. It creates new demand in the market. c. Itmakes substantial contribution to the raising and collection of taxes. d. It facilitates the movement of the factors of production. e. It creates new business opportunities. " £ Itpromotes a peaceful and loving community. g. Itincreases constructive competition. 4, Entrepreneurship makes the following contributions to the Philippine economy: a. It encourages competitiveness and thereby challenges entrepreneurs to keep improving their products and services. b. Ithelps find an entrepreneurial niche in the world market. c. Ithelps hasten the economic recovery process of the Philippines during financial turmoil or crackdown. d. It facilitates the smooth flow of money in the local market. e. It assists the national government in its desire to have favorable economic ratings in the world market. Lesson 6 | Importance of Entrepreneurship ill