CONTEMPORARY

ECONOMIC ISSUES
AFFECTING THE
FILIPINO
ENTREPRENEUR
INVESTMENTS

• A product that people buy with the hope that they

will be beneficial or will generate income in the
future.
a. Long-term Investment
b. Short-term Investment
• Effect 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
RENTALS

• As an investor, what will you do if you don’t own

land or space to be used for your business? The
answer is rent or lease a land or space. But, how
does rental affect your business operations?
• Effects to entrepreneur:
In Income Statement, rental fee is in expense
account which means the bigger the place/space, the
higher the cost. Also consider the location; it is more
costly to rent in urban areas than in rural areas.
MINIMUM WAGE
• It refers to the lowest wage permitted by law. In the Philippines, the
Department of Labor and Employment (DOLE)issued wage order for
minimum wage earners effective January 1. 2020. Minimum wage
rates are determined by factors such as poverty threshold, prevailing
wage rates as determined by the Labor Force Survey, and socio-
economic indicators (i.e. inflation, employment figures, Gross
Regional Domestic Product, among others), which insure better
workers protection
• Effects to 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
TAXES

• Tax is the lifeblood of the economy. It fuels the

social services provided by the government to its
citizen. But how does tax affect the entrepreneur?
• Effects to 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. How can entrepreneurs gain from tax? Government
gives considerations to new entrepreneurs with tax holiday up to
6 years and vat exemption for purchase of supplies of the firm
that is going to export 100% of its product.
ACTIVITY

• Thumbs Up! Thumbs Down!

• Read each statement very carefully. Write the word
Thumbs Up if you agree with the statement, and
Thumbs Down if you disagree with the statement.
1. Low rental fees mean more businesses will be created.
2. High interest in external borrowings attracts potential
investors.
3. Increase in minimum wage will increase the buying power of
workers.
4. High tax rates mean less investors.
5. Entrepreneurs always consider the following when making
business decisions: rental fees, tax rates, minimum wage rate,
amount of investment and the interest rate.
ASSIGNMENT:

• How has COVID-19 affected the Filipino

entrepreneurs especially the newbies in the
business?
• Encode or Write in an A4 Bond Paper not less than
500 words.