ST.

ALEXIUS COLLEGE
Gen. San. Drive, City of Koronadal, South Cotabato, Philippines 9506, Tel.: (083) 228-2019, Fax: (083) 228 4015, Email: registrar@stalexiuscollege.edu.ph

Name: Jarissa D. Gallaza GEE1- BSPHARM1A

BSPHARM 1A Date: 03-30-2023

5. D Social and Economic Contribution of Entrepreneurship

Entrepreneurship is viewed as essential to a vibrant economy. Entrepreneurs not only
create jobs for themselves but also for other people. By introducing innovative goods,
techniques, and manufacturing processes to the market and by increasing overall productivity
and competitiveness, entrepreneurial activities may have an impact on a nation's economic
performance. Institutions that support an entrepreneurially friendly climate are necessary for
realizing these benefits. Protecting intellectual and other property rights, streamlining and
enforcing commercial laws, enhancing the business climate, lowering regulatory burdens, and
fostering a culture of second chances for failed entrepreneurs are particularly crucial.

UNIT 6: Government Assistance Program for Small Business

6. A Financial Assistance

 A business loan is any business needs money or capital to start earning profits. The Z
capital of income is in a form of a loan. In a nutshell, a business loan refers to money received
from banks, the government, and other financial institutions. Business owner use this capital to
develop products and offer services. Entrepreneurs can also use the money to pay off debts and
other obligations. Whatever the intended use, business loans offer relief to entrepreneurs who
need more money for their operations.  Next, the lenders collect payments with interest from the
business owners. Depending on the agreed-upon payment schedule, the business owners have to
pay an amount in a certain period of time. 
1. Term Loans- With the help of a term loan, business owner can finance their operations for the
long or short term. They can also do this while maintaining control over their own cash
flow. This is a small business loan fantastic for starting business owner who want to spread out
their repayments over time. 
2. Credit Line- A credit line refers to finds you can instantly access. This is a small business
loan also known as a short-term loan.  Because interest only starts to accrue after you make a
purchase using the credit line, this gives you more financial control. In addition, only the amount
you use acquires an interest. 
3. Secured Business Loan- Small businesses loan for commercial purposes, a secured loan
requires collateral. The lender can claim the collateral to recoup their losses if the borrower
defaults on the loan. Collateral examples include real estate properties and vehicles. 
4. Unsecured Business Loans- In contrast to secured loans, start-up enterprises in the
Philippines can obtain an unsecured business loan. As the name suggests, the small businesses
loan does not require collateral. However, this is a small business loan that is more challenging
to qualify for. In particular, those with a poor credit history or no credit history will find it hard
to get an unsecured business loan. 

6. B Technical Assistance
The Small Business Technical Assistance Grant Program enhances the capabilities and
expertise of organizations that offer technical assistance, education, and capital access to small
businesses, many of which are run by women, people of color, and veterans. The funding
program supports continuing economic development initiatives in Gateway Cities around the
state as well as low- and moderate-income, underrepresented regions.
This state-funded Small Business Technical Assistance Grant Program leverages
community and economic development non-profits to help small businesses create and preserve
jobs. The grants are awarded to community development corporations, chambers of commerce,
and similar non-profits. They use the funds to provide crucial services, such as technical
assistance, training in business skills, and access to financing, to their local businesses. In
addition, we offer mini-grants, through our grantees, to small business owners with needs for
professional, technical, and operational services.

6. B Technical Assistance
The Department of Trade and Industry through the Board of Investments prepared the
annual investment Priorities Plan. The document embodies the investment areas where the
administration will provide support in terms of necessary government resources.
For this year, the investment Priorities Plan (IPP) has for its theme "Sustaining Economic
Development Through Globally Competitive Industries." The 2002 IPP continued to pursue the
agro-industrial development of the country through countryside development. These activities
are geared towards attracting more investments and generate more jobs and business
opportunities to small and medium enterprises especially in the rural areas.
In support of the action plans of the administration, the 2002 IPP aims to achieve the following
goals:
 Create employment opportunities;
 Reduce the high cost of doing business;
 Increase exports;
 Disperse industry in the countryside;
 Strengthen agricultural productivity through modernization;
 Employ efficient environmental management;
 Sustain information and Communication Technology (ICT) competitiveness.
 Support enterprise expansion and modernization;
 Establish industry clusters;
 Support SME development

References:
 https://wol.iza.org/articles/entrepreneurs-and-their-impact-on-jobs-and-economic-
growth/long#:~:text=Entrepreneurs%20create%20employment%20opportunities
%20not,productivity%20and%20competition%20more%20broadly.
 https://hicaps.com.ph/loan-for-small-business-government/
 https://www.mass.gov/small-business-technical-assistance-grant-proposals
 https://www.tesda.gov.ph/About/TESDA/70