EFFECTS OF CONTEMPORARY

ECONOMIC ISSUES
AFFECTING THE FILIPINO
ENTREPRENEUR
APPLIED ECONOMICS
TERUEEENNRPR

Introduction
TERUEEENNRPR
ENTREPRENEUR

Introduction
IUINMMM AEGW

Introduction
IUINMMM AEGW
MINIMUM WAGE

Introduction
XEATS

Introduction
XEATS
TAXES

Introduction
ETTVSINMEN

Introduction
ETTVSINMEN
INVESTMENT

Introduction
 ENTREPRENEUR
Organize own business
Assumes all risk and ROI
Monitor and controls the business

Introduction
CONTEMPORARY ECONOMIC ISSUES
AFFECTING THE FILIPINO
ENTREPRENEUR
Investment and Interest Rate
Rentals
Minimum wage
Taxes

Introduction
 CONTEMPORARY ECONOMIC ISSUES
AFFECTING THE FILIPINO
ENTREPRENEUR
Investment and Interest Rate
Investment - building up the capital stock for future
production and consumption
Interest rate - amount of interest due per period

Discussion
 CONTEMPORARY ECONOMIC ISSUES
AFFECTING THE FILIPINO
ENTREPRENEUR
Investment and Interest Rate
Effects to entrepreneur:
Low interest rate attracts more entrepreneurs to
invest, while high interest rates lessen the opportunity
of the entrepreneurs to start their business in the
country. Discussion
 CONTEMPORARY ECONOMIC ISSUES
AFFECTING THE FILIPINO
ENTREPRENEUR
Rentals
Done if you don't own land or space to be used for
your business.
Rental fee - is in expense account which means the
bigger the place/space, the higher the cost
Discussion
 CONTEMPORARY ECONOMIC ISSUES
AFFECTING THE FILIPINO
ENTREPRENEUR
Rentals
Effects to entrepreneur
It is more costly to rent in urban areas than in rural areas. For
example, the rental fee of 100 square meter of land in Pasig
City is P50,000.00 per month, but in Pampanga with the
same area is only P25,000 per month. So, the size and
location matter when planning to rent. Discussion
 CONTEMPORARY ECONOMIC ISSUES
AFFECTING THE FILIPINO
ENTREPRENEUR
Minimum Wage
It refers to the lowest wage permitted by law below
which if paid by employer will subject him to penalty from
the government
Department of Labor and Employment (DOLE)

Discussion
 CONTEMPORARY ECONOMIC ISSUES
AFFECTING THE FILIPINO
ENTREPRENEUR
Minimum Wage
Determined by factors such as
poverty threshold
prevailing wage
socio-economic indicators (inflation, employment
figures, GDP)
Discussion
 CONTEMPORARY ECONOMIC ISSUES
AFFECTING THE FILIPINO
ENTREPRENEUR
Minimum Wage
Effects to the entrepreneur:
Over and above minimum wage is the voluntary
productivity-based pay, which encourages workers and
enterprises to become more competitive and productive by
rewarding employees supplementary pay based on the
quality of their performance. Discussion
Discussion
 CONTEMPORARY ECONOMIC ISSUES
AFFECTING THE FILIPINO
ENTREPRENEUR
Tax
Lifeblood of the economy
Fuels the social services provided by the government to
its citizen

Discussion
 CONTEMPORARY ECONOMIC ISSUES
AFFECTING THE FILIPINO
ENTREPRENEUR
Tax
Effects to the entrepreneur:
High taxes tend to lessen investment because this is
considered an additional cost on the part of the entrepreneur.
Low taxes mean fewer government projects such as school
buildings, roads, bridges and providing social services to people.

Discussion