TOPIC OUTLINE

TOPIC 1 ROLE OF ENTREPRENEURSHIP IN TOURISM AND ECONOMIC

DEVELOPMENT

TOPIC 2 ENTREPRENUERIAL ETHICS

TOPIC 3 CONTRIBUTION OF ENTREPRENEURS IN THE PHILIPPINES

TOPIC 4 ENTREPRENEURS

TOPIC 5 BANE AND BOON OF ENTREPRENEURS

TOPIC 6 SPOTTING OPPORTUNITIES

TOPIC 7 MARKETING AND ENTREPRENEURSHIP

TOPIC 8 OPERATING AN ENTERPRISE

TOPIC 9 ORGANIZING AND MANAGING THE ENTERPRISE

TOPIC 10 FINANCING THE ENTERPRISE

 TOPIC 1

ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT

Ecclesiastes 7:12 
For the protection of wisdom is like the protection of money,
and the advantage of knowledge is that wisdom preserves the
life of him who has it.

At the end of the topic the students are expected to:

1. Enumerate the different theories that explains economic growth;

2. Discuss the meaning of entrepreneurship;
3. Deliberate current entrepreneurial development worldwide and the different
element of globalization;
4. Relate entrepreneurial activity and tourism to the economic growth of the
community;
5. Recognize the different factors that affect entrepreneurial activities in the
Philippines.

The origin of entrepreneurship is difficult to trace thus, theories are establish to

explain different event as to how it comes to being. Since time immemorial, human race
displayed its entrepreneurial ability with the barter system, where in an exchange
happen between at least two individuals, communities and then nation.

This topic will attempt to explain the different theories of entrepreneurship and
how each theory differ and relate to each other. Depending on the era, the theories will
help expound the learners understanding in grasping how entrepreneurship becomes a
norm that benefits society.

Four theories that explain economic growth

Theory of Mercantilism

Mercantilism is an economic theory where the government seeks to regulate the

economy and trade in order to promote domestic industry – often at the expense of
other countries (Pettinger, 2019). Mercantilism is associated with policies which restrict
imports, increase stocks of gold and protect domestic industries. This is the first major
economic theory known in the world.

It was based on the idea that a nation’s wealth will increase only if the
government regulated all the nation’s commercial interests. The theory believes that
the government should handle all economic activities of the country. Due to its system
of “me first” and “no import,” mercantilism cannot be maintained forever for it will lead to
a stagnant global economy. Each country wanted to export and no one wanted to
import.

The result of the theory leads to people revolting against its idea and stressing
the need to conduct free trade with other nations. The result of the revolution leads to
the implementation of the laissez fair economics in the 19th century. Mercantilism
therefore, opposes the next theory of Adam Smith the proponent of the Laissez – fair
Capitalism.

Laissez –Faire Theory

Leave us alone is the translation of the French term laissez faire. It is a political
philosophy rejecting the government’s intervention in an economy. In addition, the
practice of the state to interfere is perceived as an obstacle to economic growth and
development. The term came out in the 18 th century during the industrial revolution.
The industrialists of France used the term in response to the government’s voluntary aid
to promote business. The theory mainly advocates government non – intervention.

The proponent of the theory is an economist named Adam Smith and he believed
that the optimal functioning of markets needed minimal government intervention. Adam
also documented industrial development in Europe. He expounded the need to
minimize government intervention and taxation in the free markets, saying that an
“invisible hand” guides supply and demand, reflecting the concept that each person, by
looking out for himself/herself, creates the best outcome for all.

It is not from the benevolence of the butcher, the brewer, or the baker that one
can expect the dinner, but from their regard for their own interest. By selling their
products, the butcher, brewer and baker makes money if customers are satisfied, they
will be rewarded financially, which is the point of being in business. With money as the
motivator, they provide the people what they need and want through their product
offering.

Socialism Theory
 Socialism, social and economic doctrine calls for the public rather than private
ownership or control of property and natural resources. Individuals do not live in
isolation but live in cooperation with each other, as viewed by the supporters of this
theory. Moreover, everything that humans produce is in sense a social product, and
everyone who contributes to the production of a good is entitled to a share in it. Society
in general should own or at least control property for the benefit of all its members.

Karl Marx the primary author of the theory disagrees with Adam Smith and other
supporters of the Laissez Faire Theory. He argued human history as a class struggle
between workers and employers. He declared than free enterprise would lead to
increasingly severe losses and would eventually bring about revolution by the workers.

Economic Growth theory

The economic growth theory can be said to have originated with Joseph A.
Schumpeter. The proponent stresses on the role of the entrepreneur or businessmen.
He explained that economic growth is started by the people (entrepreneur) who produce
goods not only for personal profit but also for the goods of everyone around them. He
called entrepreneurs the backbone of the economy. It was the quality of his
performance that determined whether capital would grow rapidly or slowly and whether
this growth would involve innovation and change—i.e., the development of new
products and new productive techniques. 

Entrepreneurs are people who find joy in creating or producing goods; who find
self-fulfilment in getting things done; and who have strong need for achievement. This
theory is also called entrepreneur – centered theory and widely used to answer the
need d=for socio economic development.

Further readings: (necessary for the activity 1)

http://www.enotes.com/mercantilism-reference/mercantilism
http://www.investopedia.com/articles/economics/08/adam-smith-economics.asp#ixzz2N212kVDY
http://www. Internationalviewpoint.org/spip.php?article287
http://www.economist .com/node/9070610

Activity 1. Class Debate (should this not happen face to face a lengthy report of
each theory with costumes will do in a video)

1. Organize the class into four groups:

a. Group 1 will look up the theory of mercantilism and prepare their points in
favor of this theory of economic development.
 b. Group 2 will research the laissez faire theory and prepare their points in
favour of this theory.
c. Group 3 will investigate Karl Marx theory of socialism and prepare a good
argument in favour of this theory.
d. Group 4 will study the theory of socio economic development started by
Schumpeter and prepare their points in favour of this theory.
2. Designate a day when all four groups will meet to discuss these theories in a
historical debate. If possible, have the members of the class dress in costumes
of the historical period they represent.
3. Discuss the pros and cons of each theory and come up with conclusions.

Concepts of Entrepreneurships

What is Entrepreneurship?
The word has been defined by several authors in different textbooks. What is it
then and what makes this word worth studying and investigating.
Banastao and Farias define entrepreneurship as the process of creating something new
with value by devoting the necessary time and effort, assuming the accompanying
financial, psychic, and social risk, and receiving the resulting rewards of monetary and
personal satisfaction and independence.
A Harvard professor defined it as the process of creating or seizing opportunity,
and pursing it regardless of the resources currently controlled.

Basic Aspects of being an Entrepreneur

1. Creation of something of value
2. Devotion of necessary time and effort
3. Assumption of necessary risk
4. Getting rewards

Views of Entrepreneurship (Prof. Robert Stevenson)

1. Entrepreneurship flourishes in communities where resources are mobile
2. Entrepreneurship is greater when successful members of a community reinvest
excess capital in the projects of other community members.
3. Entrepreneurship flourishes in communities in which success other community
members is celebrated rather than derided.
4. Entrepreneurship is greater in communities that see change as positive rather
than negative.
Stevenson list in the matrix below the key business dimensions and the differences
between the entrepreneur and the administrator:

A Process Definition of Entrepreneurship

Entrepreneur Key Business Dimension Administrator

Driven by perception of Strategic Orientation Driven by Resource
opportunity Currently Controlled
Quick commitment Commitment of Evolutionary with Long
Opportunity Duration
Multi-Stage with minimal Commitment Process Single –Stage with
exposure at each stage Complete commitment
Upon Decision
Episodic use of rent of Control of Resources Ownership or employment
required resources of required resources
Fiat with multiple Management Structure Formalized hierarchy
information system
Value based and team Reward System Resource - based;
based individual and Promotion
oriented

Activity 1Reporting and Debate

Using the views of Stevenson, divide the class into five member per group and
let each group pick one view. Each group should report their understanding of the view
assigned or picked by them. An example should be utilized for further understanding of
the statement. Let the group give the judgement on whether or not they see this
statement working in their community and give justification of their observation. From
these observations, can the group predict if entrepreneurship will flourish in their
community? Let each group defend their observation.

Activity 2. Video Showing and Reporting

1. Divide the class into small group of five. Let each group watch a TED (listed
below) presentation assigned to them.
2. Let the students discuss the salient points after watching the presentation,
focusing on how the talk affects the students’ lives on how it may influence them
to take on the challenge of entrepreneurship.
 3. After watching the video presentation, let the members of each group presents
their observations and learning points to the rest of the class.
Groups TED Presentation them and site
1 and 6 Global entrepreneurship Matter
www.ted.com/tedx/events/7141
2 and 7 3Es: Education, Environment,
Entrepreneurship
www.ted.com/tedx/events/4196
3 and 8 Entrepreneurship: does it pay?/
www.ted.com/tedx/events/4034
4 and 9 Innovation and management
www.ted.com.tedx/events/6451
5 and 10 Entrepreneurship
www.ted.com/tedx/events/5369

Current Developments Related to Entrepreneurship Worldwide and

the Various Aspects of Globalization

Technology and communication have shrunk the world. Making the world small
for the east and west can be connected with the click of a computer. Buying chocolates
and other imported items has been the trend with the use of a simple click. We are
undergoing economic phenomena called Global capitalism also known as globalization.
Globalization is characterized by free circulation of capital in the entire world and
regulation by market forces or “free trade” where there is an easy or “free” flow of goods
each country because the taxes coming into a country has been lowered or removed.
Japan (Toyota), USA (Ford) and Switzerland (Nestle) has come to the country to
invest by bringing their capital, technical knowledge and even establish business here
with Filipino as their partners and co-investors. Likewise, some Filipino companies are
now opened for business abroad such as San Miguel Corporation which now has
brewery set up in Hong Kong and Jollibee which now has branches all over major cities
in the world. This scenarios are classic examples of “free flow of capital” and of course
- GLOBALIZATION.
Globalization was initiated in the 1950s in the USA, then it swept through Europe
in the 1970, Asia in the 1980s and is still processing. When it comes to trading, the
world indeed has become smaller. Listed below are the possible reasons:
1. Globalization has emerged because of the advances in information,
communication and transportation technologies.
 2. There are new techniques of production and new forms of organization that
have given flexibility to the location of industrial activities and reduced the
share of wages in production.
3. The most influential organization namely, the International Monetary Fund
(IMF), the World Bank (WB), and the World Trade Organization (WTO) are
promoting the emergence of a global market.
4. Politically, USA dominates the world scene and the dollar is the international
currency. The collapse of the Soviet Union and the unification of Germany
have removed obstacle to the spread of capitalism.
This situation made the world ”smaller” not physically but in the sense that travel
time of information and transportation have been made faster with the use of neew
technologies. Using telephones, mobile phones and internet one can communicate
even if one is on the other side of the world in a matter of seconds. Unlike before it will
take 20 to 24 hours to reach Western Europe unlike now this will only take 12 hours
using commercial planes. All these developments have dramatically reduced the
geographical barriers for the emerging international class of entrepreneurs, managers
and financiers. The cost of the transactions that crisscross around the world at
remarkable speeds have been greatly reduced. Trade transactions as well as
speculative ventures are now possible without physical and time constraints.
 Labor is becoming a dispensable commodity. It is easy for multinational
companies to close down its factory in one country and transfer to another
country.
 The feeling saturates that the process of globalization and economic
integration is unavoidable.
Statistically speaking, the increase of global capitalism is amazing. The volume
of world trade was twice as fast as the world output during the last two decades.
Exports, foreign direct investment and foreign exchange transaction also grew
astonishingly.

Activity 1. (What is in the other side of the world)

Using the following sentence, “The world has become smaller in terms pf travel
time (fast transportation), exchange of information and availability of common goods.”
Give examples that indeed the world has become smaller. Perhaps some of you
travelled and some have relatives and friends from other countries that they are in touch
with constantly. How can this happen today? Refer to the matrix below because it can
help individual or group structure the answer.
Countries experiences Students’ comments Students’ comments Students’ comment on
by students or their on Exchange of on Travel time availability of Goods
friends Information

Activity 2. Knowing the Philippines’ Asian neighbours

 Let the students select an Asian country to search for data and facts using
internet and other sources on the level of entrepreneurship in their selected
country. (to avoid repetition of country, the teacher can select the countries for
each students)
 if some students have relatives and friends in the Asian countries assign to them,
they can interview the relatives and friends inquiring about the entrepreneurship
in the countries and their interactions with the local people in that country.
Pictures of the different countries will be appreciated.
 On the day of the reporting, the students can wear costumes traditionally worn in
these countries, if this is possible. Students may utilize youtube or other films
and videos so the class can have a feel about the entrepreneurial atmosphere in
the country they have chosen or assigned.
 Besides economic data, the students can report on the culture, society,
education and other aspects of their selected country.
 If face to face reporting is impossible, prepare a video for the activity.
 Here are some suggested countries that are in Asia
 China
 Japan
 South Korea
 Malaysia
 Singapore
 Cambodia
 Laos
 Thailand
 Vietnam
 Taiwan
 Indonesia
Obstacle to Globalization

If one thinks that going global is as easy as pie, then one is at the wrong side of
the road. The potential for going global is vast obstacles are also present but not
impenetrable. The following are considered barriers of going global
1. Language Barriers
2. Laws
3. Currency Fluctuation
4. Political climate
5. Tariffs or taxes
6. Fortuitous event
7. Peace and order Regional Trade Alliances

Factors that Drive Entrepreneurs to Go Global

When business activities flourish, entrepreneurs will feel the need to expand or to
get out from where they are because of certain factors. These are as follows:
 Cutting Costs
 Competition
 Availability of Resources
 Market growth

Activity 1. Scapbook.

Expain the barriers of globalization and motivation to go global by entrepreneurs

using scrapbook.

Activity 2. Department of Trade and Industry Immersion

Visit the DTI and check some lists of exportable products and potential markets.
Identify the products and evaluate its potential.

Role of Entrepreneurship in Economic Growth

Entrepreneurship is a primary factor is promising improvements not only in the

personal life of the entrepreneur but the entire community and country as well. The
businesses in the community as a whole become a sort of huge basket that supports all
the lives of the people there. The goods that they need to carry on with their lives are
provided by the establishments owned by the entrepreneurs. Entrepreneurs make their
money circulate and grow within the community as well as within the country and then
the world. Entrepreneurship improves the well-being of all.

Entrepreneurship helps provide the following:

 Commodities that sustain life;
 Freedom from servitude, ignorance, social deprivation and misery; and
 Self- esteem for the entrepreneur.
There is a symbiotic relationship between enterprises and community. They need
each other to survive. They should help each other. The product of one enterprise can
be the raw material needed by another enterprise. Thus, money circulates. The
combined efforts and cooperation of everyone in the community create more
opportunities for citizens to work and earn.

National well-being brings about development for people are assured of having the
necessary goods on time, within reach, as needed, even as money circulates and
entrepreneurs make profit. Enterprises are a big factor in any country’s development
and national well-being. People get to have jobs, pay taxes, improve the circulation of
money, and have goods to buy and share.

Micros, small and medium enterprise (SMEs) are vital components of the economy.
It provide 70 percent of the Philippine labor force. It is important for the economy to
increase the output of the MSME to help the economy move and grow. To attain this,
the MSME should have more access to:
 Credit;
 Better sources of raw material;
 Modern technology; and
 More Marketing Information.
The government has three strategies to help MSMEs. They are:
1. Provide credit, technology and marketing support to new enterprises.
2. Tap overseas Filipino workers to invest their earnings in MSME.
3. Promote greater involvement of Local Government Units (LGUs) in promoting
small business activities by providing them information on business opportunities,
available sources of funds and the latest product design.
The following are indicators proving that a country has reached national well – being
and true development:
1. Owners live within the community where their enterprise is located.
2. Enterprises serve the needs of the residents for products and services and make
a living from doing this.
 3. The community has an adequate supply of raw materials that the enterprise
would need.
4. The community offers the enterprise a steady source of labor and in turn is
provided gainful employment by the business.
5. The community willingly patronizes the enterprises and its products and services.
6. Local government executives are supportive of the business enterprises.
7. Local government executives are considerate and friendly to business owners.
8. Local government executives assure the business peace and order at all times.
9. There is an abundance of water and power supply.
True development considers every aspect of life, it takes care the whole person,
enabling the person to find the richest possible expression of self. The lives of the
entrepreneur and those of the people around him are improved by proper development.
Entrepreneurship makes development happen and possible.

Activity 1. Observe and Appreciate.

 Imagine walking down the neighbourhood and notice the different enterprises
that beckon people to buy from them to drink their Coke or to have a massage in
the wellness spa. Recall what you ordinary see in your city/municipality when
they go around it daily. How many businesses (doesn’t really matter what type at
this time) they see on their way to school from their homes. Some will be
flourishing, some will be just average, while others are starting to deteriorate and
die.
 Let each student/group classify their observation in the matrix below.
Name of the enterprise Product/Service Impressions and
and its owner(optional) Specialty Remarks (flourishing;
average;
deteriorating,etch)

 Let each members of the group discuss what they remember from the past (5
years ago)when there were not so many businesses in the community. Example,
when buying appliances they have to go to ICM but not anymore for appliance
centers are available to the hometown). Let the students observe their
observations in the matrix listed bellow.
 Common Activities 5 years ago Today
shopping
Going to school
Going to dental check up
Dining out/lunch out
Others

He who is determined to accomplish something sees only the

potential and never the obstacle.