Entrepreneurship
-refers to the talent of organizing labor, land, and capital
to produce goods and services.
-a way of giving individuals access to better lives not
only for themselves but for their family as a whole.
-a mindset, a way of thinking and acting.
-about imagining new ways to solve problems and
create value.
-a pursuit o solution, a single relentless focus on solving
a problem doing something drastically from the way it is
done today.
-ability to recognize the bigger picture and continually
test your assumptions.
-the art and science of building profitable systems to
help people in ways that other systems do not.
-the ability to understand the feelings of others.
Entrepreneur
-generate new ways to do things
-a person with entrepreneurship
-attempts to organize his own business
-assumes all the risks and return on his investment
-monitor and controls all the activities of the business
-a good leader
-possesses grit, grit is made up of persistence, passion
and resilience.
-dreamers and the visionaries, without them, the world
stagnates and progress stops.
*attitude – confident, believe in yourself
*creativity – think differently
*relationships – connection
*organization – raise finance, money, tax
ECONOMIC ISSUES FACING THE FILIPINO
ENTREPRENEUR
Investment
-a determinant of income
-It is a process of building up capital stock, or the
expenditure which determines the income production in
the economy.
-the capital expenditure on the purchase of physical
assets such as plant, machinery, and equipment (also
known as fixed investment) and stocks (also known as
inventory investments).
-also refers to the value of machinery, plants, and
buildings that are brought by firms for production
purposes. So, if a firm decides to use additional capital
to produce more goods and services, it is actually
investing in this particular factor of production.
Interest Rate
-play a key role in increasing capital stock, which in turn
affect investments.
-represents the cost of using or borrowing money.
-Interest rates affect the level of production of
investment goods. A change in interest rates results in a
change in investment demand. The rate at which the
borrower pays for the money that is borrowed is usually
influenced by macroeconomic conditions such as
inflation – which reduces the purchasing power of
capital – and money supply.
Rentals
-typically refers to the use of property for a certain
amount.
-the price paid for the use of land and other natural
resources or factors of production that is in fixed supply.
Taxes
-are the lifeblood of the government.
-Without taxes, the government will not be able to
provide services to its people, such as public
works, health, education, defense and police
protection, and social services. Hence, taxation
is necessary for the government to be able to
finance its expenditures.
TYPES OF TAX
Income tax – government levy tax
- Oblige to pay by the entrepreneurs
Percentage tax – tax based on annual sales tax
VAT (value added tax) – sales tax, indirect tax, added to
products or goods and services
Minimum Wage
-expected to be enough for the ordinary workers to
afford things that he/she usually buys
INNOVATION STRATEGIES OF AN ENTREPRENEUR
- Creation of a new product or service
- Improvement of existing product
- Process improvement
Disruptive Innovation
-the process that disrupts or changes the structure of an
existing market
TYPES OF BUSINESS STRUCTURE
Sole Proprietorship
-only one owner
-the simplest business structure and involves one
individual who is responsible for the day-to-day
-owned by one individual who makes all the business
decisions
Partnership
-partners in business
-form of business structure that comprises two or more
owners
-shares a lot of similarities with sole proprietorship
-the business does not exist as a separate legal entity
from its owners, and therefore, the owners and the
entity are treated as one person
Corporation
-many owner
-gives the entity a separate legal entity from its owners
-complex and expensive to set up
-requires the owners to comply with more tax
requirements and regulations
-hire the attorneys to oversee the registration process
and to ensure that the entity complies with the state
laws where it is registered
NEW BUSINESS REGISTRATION
1. DTI- register business name
2. Barangay- secure barangay clearance
3. Municipality- get a business permit
4. BIR- apply for tax identification number, secure
authority print receipts, have ledgers and
invoices stamped
5. SSS- apply SSS self-employed owner
10 PRINCIPLES IN CREATING SUCCESSFUL
BUSINESS
1. Scalability- capacity to accommodate
growth
2. Big Ideas- willing to adjust to new ideas
3. Systems- programs that can monitor the
status of our business
 4. Sustainability- business should be dynamic  Government continuously makes improvement
condition in community infrastructure to entice other
5. Growth- determination to grow of the business to invest in the community
owner and employee  Contributes more opportunities in terms of
6. Vision- exemplify the vision you will fulfill health, peace and order, social culture, etc.
7. Purpose- the purpose of one’s business  Helps the establishment of better schools, more
8. Autonomy- the business is separated from business and more jobs
your personal consumption  Leads improved business services to the
9. Profitability- the company will be close if it community
is not profitable  Improves community life
10. Standards- your basis to have a successful RECOMMENDATIONS IN MAXIMIZING POSITIVE
business IMPACT TO COMMUNITY
7 STEPS IN EFFECTIVE DECISION-MAKING Divert a proportion of revenues to good and
1. Identify the decision to be made. worthy causes for community development and
2. Gather relevant information. outreach programs.
3. Identify alternatives. Find creative ways to improve the life of the
4. Weigh evidence. firms’ employees and the community.
5. Choose among alternatives. Establishment of linkage between business and
6. Take action. community to thresh out some problems
7. Review decision and consequences regarding social and environmental issues and
TOOLS AND TECHNIQUES IN MAKING AN EFFICIENT consultations.
BUSINESS Establishment of scholarship grants to deserving
 Use technology to speed up workflow. students on the community.
 Shorter meetings fuel efficiency. Help build customer attraction, satisfaction, and
 Smart office space pays. loyalty, at a time when customers are
 Small changes, big savings. increasingly exercising their right to choose.
 Manage staff expenses. Reduce risks of negative publicity, boycotts, and
 Keep a firm grip on cashflow. tarnished public image.
 Stay connected on the move. Improve product, image, brand and reputation.
 Use time more efficiently.
 Get the best deal on insurance.
 Do not be lax with the legal.
VARIOUS SOCIOECONOMIC FACTORS AFFECTING
BUSINESS AND INDUSTRY
 Income – amount of money individuals earn
from their daily economic activities, be it
employment, business or investments.
 Education – equips members of the society with
the skills and knowledge they require to be
employed in different jobs and professions.
 Occupation – refers to type of jobs people
perform by virtue of their skills, experience or
choices.
OTHER FACTORS AFFECTING BUSINESS AND
INDUSTRY
 Economic Conditions
 Social Environment
 Government
 Economic Changes
 Political Changes
 Changes in Technology
 Environmental Factors
BUSINESS VIABILITY AND ITS EFFECT TO THE
COMMUNITY
Viability
-ability to survive
-in business, it is linked to financial performance and
position
A viable business has great effects to the community
and these are:
 Provides jobs in the business sector
 Provides taxable income both business
establishment and workers