Big Picture in Focus: ULO - B.

Discuss the economic development of

entrepreneurship and its competencies

Metalanguage

Below are the essential terms that are operationally defined for you to better
understand this section of the course.

1. Socio-economic. This term generally analyzes how modern societies progress,

stagnate, or regress because of their local or regional economy, or the global
economy.

2. Capital base. This is a term used by individual investors, publicly traded companies,
and banks to refer to a base level of funding.

Essential Knowledge

PHILIPPINE ECONOMIC LANDSCAPE IN THE PRESENT TIME

The Philippine Economic landscape remains to be the spring board of questions when
economic development is the focus of discussion. Despite the government’s intention
to improve the country’s economic condition, Filipinos remain poor. Two important
factors hinder our growth as a nation:

1. Poverty is the making of its people and the kind of leaders that holds the wheels
of economic fortune.
2. Population explosion is another factor that contributes to the poverty of our
nation.

FACTORS IN DETERMINING ECONOMIC GROWTH

1. The Filipino values and culture

▪ Love for imported products. Filipinos often feel that imported products
are superior in quality and look upon domestic products as inferior.
Buying imported goods develops the economy of foreign countries and
drains the Philippines economy.

▪ Our values of BAHALA NA. A true entrepreneur will not put his destiny
in the hands of the BATHALA. He must act with strong determination
and push for the development of his ideas. BAHALA NA is the concept
of belief in BATHALA, the gods of the lazy of bones and undetermined
individuals. Faith in GOD could be the driving force of any entrepreneur
 to make things happen as he believes that his power to think and
innovate comes from the true GOD that guides the destiny of man.

▪ Our crab mentality. Crab mentality is the action of people to pull down
others who are about to get out of the verge of poverty and reach for
their success. An example of this would be Pedro opening a SARI-SARI
store and JUAN opening the same kind of business in the next corner.
Thinking that someone on the other corner is making good in selling
barbeque or a LITSONG MANOK, he opens the same outlet not thinking
that competition is pulling down both of their profit.

▪ The MAÑANA habit. MAMAYA NA or BUKAS NA is a culture that is

brought to us by the colonizers who were fond of SIESTA after lunch
time. Real entrepreneurs do not believe in siesta as they keep working
until things are done according to their plans.

▪ The value of time. Filipinos’ are known noted for our lack of value for
time. We are always late in the start of the program, coming to our
classes, attending to office work and even in important meetings and
appointments. Entrepreneurs get the golden opportunity as they do not
lose time to make money and fortune.

▪ Our values of hiya. HIYA could be a positive value in dealing with

business condition. It could be a propelling reason for us to create better
service and proper dealings in business transaction. Tourism could be a
haven for economic development if our people love to treat our visitors
with HIYA of cheating them with taxi fares and services. Apparently, our
political and social systems have not developed the value of HIYA, as
graft and corruption still exist because of our love for material things,
money, and power.

▪ Fiesta and social occasion. The celebration of Fiestas of Saints that we

inherited from the Spanish colonizers could be another factor in the slow
development of our economy. There could be nothing wrong with
celebration as it is part of happy Filipinos. The negative side, is the little
money that we could spend for more important business that would
generate more profit in the long run.

2. Job Opportunities/Employment

▪ Employment is one great factor in economic development. The

entrepreneur provides necessary work for people that propel the
economic development of the nation. The money in circulation for wages
and salaries will help local industries to develop new products and
services that generate more small and medium enterprises.

▪ Income opportunity in the countryside is still subsistence in nature. Most

people are still dependent on old farming and fishing system. Modern
farming technology and the proper culture of our fishery resources have
 not been introduced. Technology is one important factor in the
development of the economy and entrepreneurial activity.

3. Availability of Needed Capital

▪ Republic Act 6977, known as the Magna Carta for Small Enterprises.
This act provides necessary funds for the development of entrepreneurs
in the countryside. Under this act, are small and medium enterprises
engaged in industry, agribusiness, and other services.

▪ Republic Act No. 6810, known as the Magna Carta for Countryside and
Barangay Business Enterprises. This act grants exemptions from any
and all government rules and regulations and other incentives and
benefits and for other purposes.

FACTORS IN DETERMINING ECONOMIC GROWTH

The following are the contributions of the entrepreneur in our Socio-Economic
Development:

1. The entrepreneur provides employment. Employment generates income and

those employed pay taxes to the government which in turn gives benefits to the
social and educational needs of the greater population.

2. The entrepreneur pays taxes. Entrepreneur pays taxes in the form of real estate
tax, sales tax, import and export tax, and permits from the local and national
government. With the taxes paid, the government could maintain better peace
and order situation as police and military personnel could better protect the
people.

3. The entrepreneur provides new lifestyle and pleasures. Product innovation and
development is the making of entrepreneurs. New technology like computers
and other household conveniences are the results of entrepreneurial geniuses
that turned our life to new lifestyle and pleasures.

4. The entrepreneur improves the capital base of the economy. The entrepreneur
mobilized economic activity as the circulation of money pumps up the economic
development of the community. Capital investment generates profit. Profit, in
turn, is growth in investment base that will propel more business activities.

5. The entrepreneur creates people empowerment and social mobility.

Entrepreneurs accumulate financial resources that give them social power in
the community. They make new houses and invest in real properties that make
them respected in the community. Their high income differentiates them from
those employed as their life style become more diverse and complex.
 6. The entrepreneur provides healthy competition. Healthy competition provides
people with choices of new products or better services. The entrepreneurial ego
of human superiority in the development of new product or service drives the
entrepreneur to more innovation and development, hence, the greater goods
cascade down to the consumer who wants new products and services.

MANAGERIAL SKILLS THAT MAKES A SUCCESSFUL ENTREPRENEUR

1. The ability to plan and conceptualize. Conceptualization and planning go

together. The entrepreneur is able to forecast the future by seeing to it that the
risk involve are properly controlled.

2. The ability to organize the resources of the enterprise. A good business

organization is based on around people and resources. An entrepreneur must
be able to give specific direction and work activities that will redound to efficient
delivery of the necessary services to the customers and clients.

3. The ability to direct and motivate people in his organization. An entrepreneur

must be able to communicate ideas and plans to his subordinates with sense
of humility. Good communications and human relations drive people to be
motivated to perform their task with pride.

4. The ability to control. Controlling the whole operation is a difficult task.

Safeguards and control mechanism could be put in place with carefully crafted
policies and procedures. Such policies and procedures must be carefully
disseminated and understood by all who will implement them.

5. The ability to manage time. Time management is very essential ingredient to

the success of an entrepreneur. Because of the numerous activities to attend
to, the entrepreneur must be able to log on his time schedule so that important
activities could be attended on time.

6. The ability to adapt to the changing environment of business. The entrepreneur

must be able to adapt to the fast-changing business environment to be attuned
with the time of progress and expansion.

CHARACTERISTICS OF AN ENTREPRENEUR

1. Leadership and management abilities

2. Positive risk takers
 3. Self-confidence and positive outlook
4. Innovativeness and forward looking
5. Natural intelligence and decision-making skills

THE DECISION MAKING PROCESS

1. Identify the problem. The risk involved in the management of business has to
be identified and analyzed before solutions could be made. The core objective
is to minimize the risk factor involved as wrong choice of alternative would result
to production or operation losses.

2. Gather the data that brought the problem. The solution to the problem is
dependent on the data available at hand. Correct information would give better
solutions.

3. Analyze the data. Data must be timely gathered and information must be based
on the actual situations prevailing in the business environment. The internal
and external sources must be analyzed to find out which are relevant in
formulating alternative solutions.

4. Formulating alternative solutions. Various alternative solutions to the problem

must be made and analyzed from internal and external perspectives. It may be
subject for further study until the right one comes up.

5. Selecting the best alternatives course of action. After all the alternative courses
of action, the entrepreneur must make the decision which has to be
implemented with the less possible risks in terms of money, time, and effort.

6. Implementing the best alternative. Problems and solutions are best arrived
when people who will be implementing the decisions are properly consulted and
their opinions and ideas are taken into account before the final decision is
implemented.

Self-Help: You can also refer to the sources below to help you
further understand the lesson:

* Agustin – Acierto, M. (2019). Entrepreneurial management. Unlimited Books

Library Services & Publishing Inc. Manila
* Philippines : Filipinos in sweden explore entrepreneurship prospects in the
philippines. (2018). MENA Report, Retrieved from
https://search.proquest.com/docview/2019183753?accountid=31259