COLLEGE OF COMMERCE

BUSINESS ADMINISTRATION AND ENTREPRENEURSHIP

MODULE 5 PACKET
EC 413 – PROGRAMS AND POLICIES ON ENTERPRISE
DEVELOPMENT

MODULE 5: ENVIRONMETNAL AND ECONOMIC TRENDS AFFECTING

ENTREPRENEURSHIP
This Module presents the various economic trends and environmental factors
which should be closely and carefully studied in identifying entrepreneurial
opportunities as the business runs, grows, and takes its place as an established
player in the economy. Further, this Module discusses about: a)technological
evolution, b) social responsibility, c) inclusive growth, d) globalization, e) e-
commerce, f) the cyberspace, (g franchising trends, h) green economyThis
module also contains in-lesson activity/quiz/assignment.

MODULE 5 LEARNING OBJECTIVES:

Upon completion of this module, the students will be able to:

1. Carefully analyze how environmental and economic trends affect enterprise

development

2020-2021 Module Packets for AE 18 (Financial Markets and Institutions) | College of Commerce |

University of San Agustin, Iloilo City, 5000, Philippines

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2. Discuss how the environmental and economic trends will help identify
enterprising opportunities

COURSE CONTENT, LEARNING ACTIVITIES AND TIME ALLOCATION FOR MODULE 5:

ACTIVITY DESCRIPTION TIME TO COMPLETE

Review Module 4 topics 25 minutes

5.1 Technological Evolution

Interactive
Lecture
5.2 Social Responsibility
Power Point and
5.3 Inclusive Growth 1hour
video
presentation
5.4 Globalization
Class discussion

Interactive 5.5 E-Commerce

Lecture
5.6 The Cyberspace
1 hour
Power Point and 5.7 Franchising Trends
video
presentation 5.8 Green Economy

Class discussion

ACTIVITY 5– Home Assignment

(Individual work)

2020-2021 Module Packets for AE 18 (Financial Markets and Institutions) | College of Commerce |

University of San Agustin, Iloilo City, 5000, Philippines

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Activity 30 minutes

Summative quiz for module 5

Quiz 30 minutes

LECTURE DISCUSSIONS (MODULE 5)

2020-2021 Module Packets for AE 18 (Financial Markets and Institutions) | College of Commerce |

University of San Agustin, Iloilo City, 5000, Philippines

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5.1 TECHNOLOGICAL EVOLUTION

The evolution of technology saw the development initially of tools to assist man
in accomplishing a physical task mainly the obtaining of food. This was followed
by animal-powered equipment like the plow which increased the capability of man
to produce food. Then came the creation of machines powered by steam, wind,
water, and electricity that eased the human physical effort needed to operate
them, pushing forward the industrial revolution. Such machines include
windmills, cars, trains, airplanes, farm tractors, harvesting and milling machines
and others which further increased food productivity.

The latest technological innovations are nuclear energy and automation which
further improved the efficiency of the human element in machine operation and
control through automatic algorithm, such as digital watches, computer
programs, pacemakers and others. This implies that the knowledge factor is
becoming relatively more important than physical labor, an issue in business
competitiveness.

5.2 SOCIAL RESPONSIBILITY

Business is increasingly expected to behave ethically and contributes to

economic development while improving the quality of life of the workforce and
their families, the local community, as well as society at large. Awareness of
environmental impact of businesses, effect of laws and ethical values on
employees and concern for safety of the community are vital issues in the choice
of an enterprise.

As the focus of corporate social responsibility is usually limited o charitable

activities, business is now called upon to develop models that consider the triple
bottomline of People, Planet, and Profit.

5.3 INLCUSIVE GROWTH

Inclusive growth is taken to mean economic growth where all sectors of society,
including the poor actively taken part in the development process while at the
same time enjoying its benefits. Inclusive business practices contribute to
poverty reduction by involving the poor in the company’s value chain. This will
2020-2021 Module Packets for AE 18 (Financial Markets and Institutions) | College of Commerce |

University of San Agustin, Iloilo City, 5000, Philippines

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mean employing them or making them community suppliers and service

providers.

5.4 GLOBALIZATION

Rapidly changing international trade tends to affect the domestic business

scenario. Such issues as opportunities in new markets, elimination of trade
barriers among regional groupings (such as the ASEAN), and non-tariff trade
barriers of slow-growing economies call for studies in determining the market
situation for the identified enterprise.

The ASEAN economic integration will bring about challenges, opportunities, and
other factors that must be considered in the choice of enterprise to undertake.
This integration may strengthen or weaken market competition or expansion. It
may also enhance labor-exchange opportunities, or influence management
coordination or sharing.

5.5 E-COMMERCE

Development in information and communication technology have favored the

proliferation and advancement of e-commerce where selling of products and
services is done through the internet vie computers, mobile phones, and other
electronic communication tools.

Commonly known businesses using e-commerce are money transfers for

international and domestic payment systems, online marketing and processing of
information, data interchange, data gathering and management, buying and
selling among businesses and automated online transactions.

A recent development in e-commerce is the provision of market mileage to

restaurants or other consumer service businesses through blogs, facebook, and
other social media networks.

5.6 THE CYBERSPACE

Related to e-commerce, the realm of electronic communication has generated a

location where all data scored in computers and information networks are
represented as a three dimensional model called virtual reality. This cyberspace
phenomenon has generated various communication-based enterprises such as

2020-2021 Module Packets for AE 18 (Financial Markets and Institutions) | College of Commerce |

University of San Agustin, Iloilo City, 5000, Philippines

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multi-video gaming, tele-conferencing facilities, electronic sports, contact

centers, and business-processing services.

5.7 FRANCHISING TREND

Opportunities for business franchising have proliferated though the years for
small and medium-sized enterprises, mostly in food retailing.

Franchising opportunities have grown tremendously in the last decades and have
bred other entrepreneurial opportunities such as franchise brokering, franchising
consultancy, event franchising or home-based franchising.

5.8 GREEN ECONOMY

Burkart (2012) maintains that opportunities under green economy may fall within
the following sectors: generation of renewable energy; construction of green
buildings; operation of sustainable transportation systems; and water, waste and
land management. He also says that human well-being and social equity are
improved while reducing significantly environmental destruction and ecological
degradation.

For example, small enterprises allow recycling of readily-available waste

materials, such as used plastic bags and old newspapers and magazines which
are made into stylish items.

In some areas, the use of alternatives sources of energy that are not oil-based is
often a plus factor when the entrepreneur applies for business permits.

DR. DORIS P. LAURON

2020-2021 Module Packets for AE 18 (Financial Markets and Institutions) | College of Commerce |

University of San Agustin, Iloilo City, 5000, Philippines

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Professor

Consultation hours:

Viber or Messenger: 1:00 – 2:00 PM Mondays | Thursdays

Virtual time: 6:00 -7:00 PM Mondays I Thursdays

2020-2021 Module Packets for AE 18 (Financial Markets and Institutions) | College of Commerce |

University of San Agustin, Iloilo City, 5000, Philippines

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