Entrepreneurship

and the Philippine

Economy
Prepared by:
MRS. HELEN A. BAESA
Objectives:
 Identify the factors that affects the business
establishments in the Philippines.
 Explain how the economy grows.
 Discuss how entrepreneurship could improve the
quality of life.
THE PHILIPPINE ECONOMY: HOW
DOES AN ECONOMY GROW
 Economic Freedoms
• Free competition
• Free choice of investments
• Prices
 Main Determinants of
Economic Growth
• Knowledge
• Skills
• Values
• Quality of people
Inhabitants in the Philippines
Our country was a slave of
three colonial masters
• Americans exploited our agricultural economy.
• Japan completely ruined our economy.
• Spanish rule introduced the tobacco monopoly
and galleon trade for the benefits of top-ranking
Spanish citizens.
• Chinese subjugated the retail trade even earlier
the Spanish time.
 THE REPUBLIC:1946-1972
• Political independence in 1946
• The import control for program of
• President Carlos Garcia
• US had its own of dominating the
Philippine economy.
THE MARTIAL LAW REGIME
• OBJECTIVE:
• To protect the interests of the
local elite and foreign capitalists.
• WB-IMF played a dominant role
in the economy
 THE AQUINO
ADMINISTRATION
• Economic recovery was the first priority.
• The Aquino 6-year development plan was based on the
following principle:
• Respect for human rights
• Promotion of social justice
• Wiping out of poverty
• Attainment of economic growth
• Market economy
 A Brief History of
Entrepreneurship
• Earliest Period
• Middle Ages
• 17th Century
• 18th Century
• 19th Century & 20th Century
Resources Used in Business
Resources Used in Business
 Socio-economic Benefits From
Entrepreneurship
 Promotes self- help and employment
 Mobilizes capital
 Provides taxes to economy
 Empowers individual
 Enhances national identity and pride
 Enhances competitive consciousness
 Improves quality of life
 Enhance equitable distribution of income and wealth
Barriers to Growth of Philippine SMEs
 Poor access to finance
 Obsolete technology
 Low productivity
 Lack of skills upgrading
 Lack of information
 Inability to make entrepreneurial transition
 Poor linkage among small, medium and large industries
 Inappropriate location
 Management incompetence
 Poor market access
 Lack of infrastructure
 Bureaucratic/cumbersome procedures
 Severe global competition
The Role of Entrepreneurship in
Economy Development
1. Entrepreneurship bids an economical and faster technique of
distributing goods and services that hastens economic development.
2. Entrepreneurship is capable of generating jobs, income, goods, and
services.
3. Entrepreneurship improves the quality of life.
4. Entrepreneurship contributes to more reasonable distribution of income,
and therefore, comforts social unrest.
5. Entrepreneurship uses and mobilizes resources to make the country
fruitful.
 The Role of Entrepreneurship in
Economy Development
6. Entrepreneurship brings social benefits through the government.
7. Entrepreneurship has several definitions.
• Any person who takes the risks and invest his resources to make something
new or better is engaged in entrepreneurship.
8. Economic development is a process, while economic growth is a product of
economic development, both economic and non-economic factors constitute
the determinants of economic development.
• In less developed countries, economic human conditions by reducing or
eliminating poverty, disease, injustice, illiteracy, and exploitation.
9. Development and Growth Theories.
 Ricardian Theory
Theory of David Ricardo
Focusing on agriculture
playing the major role in
economic development.
 Harrod-Domar Theory
Conceptualized by Sir Harrold of
England claims more products can be
produced through the use of
machines.
 Kaldor Theory
Kaldor Theory, by Nicholas
Kaldor, maintains that the key
factor is technology.
 Innovation Theory
Developed by Joseph Schumpeter,
stresses the role of innovators or
entrepreneurs in economic
development.
 The contributions of
entrepreneurship are:
1. Development of new markets
2. Discovery of new source of materials
3. Mobilization of capital resources.
4. Introduction of new technologies
5. Creation of employment.
 Entrepreneurial Economy
This means our productive resources
should be on the hands of Filipinos for
their own paybacks.
 The government can help
entrepreneurs from their several
assistance programs on the following:
• Peace and Order • Education and training
• Political • Public administration
• Stability • Production technology
• Taxes • Marketing Assistance
• Infrastructure • Financial Assistance.