HUMAN DEVELOPMENT

AND ENTREPRENEURSHIP
THE DIFFERENCES BETWEEN
DEVELOPED AND
DEVELOPING COUNTRIES
 Human Development Indicators (HDI) of Selected Countries, 2002
Life Literacy Average Gross
Country HDI rank expectancy Rate (%) Domestic Products per HDI, 2002
Capita (US$)
Norway 1 78.9 100 36600 .956
Sweden 2 80.0 100 26050 .946
Australia 3 79.1 100 28260 .946
Canada 4 79.3 100 29460 .943
USA 5 77.0 92.3 35750 .939
Japan 8 79.1 100 28940 .938
New Zealand 9 78.2 99 21740 .926
Singapore 18 78.0 92.5 24040 .962
Thailand 25 69.1 92.6 7040 .768
Philippines 76 69.8 92.6 4170 .756
Indonesia 83 66.6 87.9 3230 .692
Egypt 111 68.0 55.6 3810 .654
India 127 63.7 61.3 2670 .595
Bangladesh 138 61.1 41.1 1700 .478
Meaning of Development

 Traditional economics measures development in

terms of national economy’s capacity to generate
and sustain an annual increase in Gross National
Product (GDP).
 GNP measures the value of goods and services
produced by only a country's citizens but both
domestically and abroad.
 Development

 A multi-dimensional process involving major changes

in social structures, population attitudes, and
national institutions, as well as acceleration of
economic growth, the reduction of inequality, and
the eradication of absolute poverty.
 Development must be able to elevate an entire

society and its social system towards a better and

more humane life.
- (Michael Todaro)
 Core values of development

1. Life sustenance or the ability of the economy to provide basic

needs. The economy must be able to provide to as many
people as possible the means of overcoming the helplessness
and misery arising from lack of food, shelter, health and
protection.
2. Self-esteem or the extent one can become a person. This is
the sense of one’s self-worth and self-respect, of not being
used as a tool by others for their own selfish ends. All people
seek self-esteem, also known as authenticity, identity, dignity,
respect, honor or recognition.
3. Freedom from servitude or the extent that a person is
free in making choices – in emancipating oneself from
alienating material conditions of life and from social
servitude to nature, ignorance, dogmatic beliefs. Free
involves expanded range of choices for societies and
their members together with the minimization of
external constraints in the pursuit of social goals that
have come to be called development.
 Entrepreneurship and Human
Development

 Poor countries to alleviate poverty send their

citizens to work in developed economies, others are
agreement that enable the environment for the
micro, small, and medium enterprises (MSMEs) to
attain higher human development.
 PHILIPPINE CULTURE,
ENTREPRENEURSHIP AND
DEVELOPMENT
How countries grow and become rich

1. Economic development is brought about by an

“invisible hand”. (Adam Smith)
1. Development is brought about by individuals who set
out to produce valuable goods and services for their
personal gain and profits.
2. As they work for their selfish motives, their fellow men
benefit from them without intending to and this will
also motivate them to do the best interest of their
community or country as a whole.
2. Economic development is brought about by
individual who like to create and get things done not
primarily for profit but for more noble motives.
Joseph Schumpeter said that economic growth is
initiated by enterprising men and women who produce
not for profit but noble or less selfish reasons.
 They promote new goods, new methods of
production, use of new materials, and explore new
markets because they:
 Find enjoyment in creating or producing product
 Feel a sense of fulfillment in getting things done

 Like to achieve for achievement’s sake

 Role of Entrepreneur

 Someone who plans, organizes, and puts together

all the resources required to bring new enterprise
into existence and to run and manage it on a long-
term basis.
 Puts together human resources (workers, managers,
customers, and suppliers) and non-human resources
(land, building, money, machines, materials and
methods).
Entrepreneur can be defined as:

 Perceives business opportunities in the environment

 Takes risks to make use of these business
opportunities
 Invests his own or borrows money to use in the
business
 Introduces innovations or improvements to make the
business better, more efficient and more profitable
 Generates profit for the business
 An entrepreneur is not

 A person who lends money to another (this person is

a financier or investor).
 Not a person who hires and pays big salary to
manage the business fulltime for its owners.
 Not an inventor of a product who stops working
after inventing and developing a product.
 Not a person who gives advice to entrepreneur to
make his business more efficient or profitable.
How does entrepreneurs make a country rich?