Chapter 2 ECONOMIC DEVELOPMENT OF ENTREPRENEURSHIP AND ITS COMPETENCE. entrep.pptx

Economic Development

1. Title ECONOMIC DEVELOPMENT OF ENTREPRENEURSHIP AND IT’S COMPETENCE CHAAPTER 2

2. OVERVIEW Philippine economic landscape in the present time Factors in determining economic growth The Filipino products Job opportunities/employment Availability of Needed Capital Managerial Skill that makes a successful entrepreneur Characteristics of an entrepreneur

3. OBJECTIVES To familiarize with the Philippines economic landscape in the present time. To learn the role of employment as a contributory factor in economic development. To understand entrepreneurship and socio-economic development

4. PHILIPPINE ECONOMIC LANDSCAPE IN THE PRESENT TIME The Philippine Economic landscape remains to be the spring board of questions when economic development is the focus of decision. The leaders of this nation, aim greatness for the Filipino people especially during the time of election. Their honest intention of improving the economic condition is their battle cry that catapulted them into the power, yet in spite of the many promise Filipinos remain poor .

5. Two important factors hinder our growth as a nation : Poverty is the making of its people and the kind of leaders that holds the wheels of economic fortune. Population explosion is another factor that contributes to the poverty of our nation.

6. FACTORS IN DETERMINING ECONOMIC GROWTH The following factors are contributory determinants to our slow growth on economic development as a nations . The Filipino values and culture Job Opportunities/ Employment Availability of Needed Capital

7. The Filipino values and culture Love for imported product Our values of BAHALA NA Our crab mentality The MAŇANA HABIT The value of time Our values of HIYA Fiesta and social occasions

8. Job Opportunities/ Employment Employment is one great factor in economic development Income opportunity in the countryside is still subsistence in nature

9. Availability of Needed Capital The banks are sources for limited for small and medium enterprises. These resources are available in the banking institutions. The poor people are not aware of these great opportunities and they do not know how to go about it to avail of the funds .

10. Legality of this topic Republic Act 6977 Republic Act No. 6810

11. Republic Act 6977 known as the Magna Carta for Small Enterprises provide the necessary funds for the development of entrepreneurs in the countryside. Under this act, are small and medium enterprise engaged in industry, agribusiness, and other services. These funds could be availed by single proprietorships, cooperatives, partnership or corporation.

12. Micro Less than 150,000.00 Cottage 150,001.00 1,500,000.00 Small 1,500,001.00 15,000,000.00 Medium 15,000,001.00 60,000,000.00 Large 60,000,001.00 above In the small and medium enterprise whether engaged in industry, agribusiness and/ or service, weather single proprietorship, partnership, corporation or cooperative whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity ’ s office, plant and equipment are situated, must have value falling under the following categories The intention of the law is to provide the promotion, growth and development of SMALL AND MEDIUM ENTERPRISES by assisting government and RELEVANT AGENCIES (capitalize for emphasis) in tapping local and foreign capital and the use of existing guarantee funds.

13. The Law of SMALL AND MEDIUM ENTERPRISES DEVELOPMENT COUNCIL has some of the important that could the countryside and those of the local enterprises describe below ; To recommend to the President of the Philippine and Congress on policy matters affecting small and medium enterprise. To coordinate and integrate various government and private sector activities relating to small and medium scale enterprise. To monitor and determine the progress of various agencies geared towards the development of the sector. To provide appropriate policy guidance and coordinate frame work in assisting relevant government agencies in tapping of local and foreign funds for small and medium enterprise. To assist in the establishment of modern industrial estates outside the urban center .

14. 6. To promote the viability of small and medium enterprise by way of directing or assisting relevant government agencies in the national, regional and provincial levels towards to the following;   Technical training course and those related to business operation, like simple accounting and bookkeeping. Labour and management relation improve working condition. Product development and quality assurance and product diversification; Improve production techniques and the use of technology on production and the utilization of indigenous community resources and raw material. Provide and assistance in the marketing and distribution of product. Provide for concessional interest rates, lower financing, and amortization to business cash flows, effective substitution of government guarantee cover on loan for borrower’s lack of collateral, It provides for setting INTENSIVE INFORMAMTION CAMPAIGN and ENTREPRENEURIAL EDUCATION ( the intention of which is or give opportunity for all those with entrepreneurial talent and interest) The law provides easier access and uses of tax credits and other tax and duty incentives as provides for in OMNIBUS investment code and other laws. Provision for product research and development and system of experimentation and access to information on commercial technologies.

15. Republic Act No. 6810 ­ is the establishing the Magna Carta for Countryside and Barangay Business Enterprises, granting exemptions from any and ALL government rules and regulations and other incentives and benefits and for other purpose .

16. The important provision of this ACT are the following : To achieve development of countryside business enterprises in the BARANGAY level through the absence of BUREUCRATIC RESTRICTIONS and granting incentives and other benefits. The number of employees should not be more than twenty (20) at any time for the purpose of undertaking a productive business enterprise that will help the economy in the area. The productive enterprises shall be principally engaged in the following activities: Professional Services Retailing Wholesaling or trading of Commodities, Products or Merchandise

17. Analysis of the prevailing condition and the business laws that grant these incentives points to following failures in the implementation program An honest political will to implement the program to develop the countryside and the local entrepreneur. Information dissemination fails to cascade down to all sectors interested in the program. Vested interest groups take advantage of the program by establishing NON GOBVERNMENT AGENCIES in the disguise of helping the lowly business sector but it turned out that it is for their benefit. They established financing agencies with interest rates that benefits their organization. Banks and lending institutions required so many paper works beyond the comprehension of small business who don’t’ have formal training as provided for the law .

18. Entrepreneur and Socio – Economic Development The development of the nation economic activity is the making of small and medium enterprises mostly located in the countryside. They contribute to the economy of big corporations as they are also consumer of their production

19. The following are the contributions of the Entrepreneur in our Socio Economic Development The entrepreneur provides employment. The entrepreneur pays taxes The entrepreneur provides new lifestyle and pleasure The entrepreneur improves the capital base of the economy The entrepreneur creates people empowerment and social mobility The entrepreneur provides healthy competition

20. MANAGERIAL SKILL THAT MAKES A SUCCESSFUL ENTREPRENEUR Being hardworking and industrious are no guarantee in the making of business activities while they play an important role in the success of the enterprises. While many successful entrepreneur have not gone to business schools to acquire managerial theories in the management of the enterprise, they have developed managerial skills through share observation, or an inherent leadership ability and intelligence .

21. The entrepreneur has the following managerial skill The ability to plan and conceptualize The ability to organize the resources of the enterprise The ability to direct and motivate people in his organization The ability to control The ability to manage time The ability to adapt to the changing environment of business

22. The ability to plan and conceptualize Conceptualization and planning go together. Good concepts need to be put in the planning table to avoid the risk factor. The entrepreneur is able to forecast the future by seeing to it that risk involve are properly controlled.

23. The ability to organize the resources of the enterprise A good business organization is based on around people and resources. An entrepreneur works with others and needs people with the same values and working ability. Efficiency and effectiveness in the work arena are the working of people with dedication and talent to do the job properly.

24. The ability to direct and motivate people in his organization People are like machines that need oil that will make them work smoothly and efficiently and effectively. Machines will bug down id no oil is put into its chamber while in operation .

25. The ability to control Controlling the whole operation is a difficult task for the entrepreneur. Safeguards and control mechanism could put in place with carefully crafted policies and procedures.

26. The ability to manage time Time management is very essential ingredient to the success of an entrepreneur. Because of the numerous activities to attend to the entrepreneur must be able to log on his time schedule so that important activities could be attended on time.

27. The ability to adapt to the changing environment of business Business today is fast changing with advent of technology and innovation. The new entrepreneur must be able to adapt to this changes in the business landscape for him to go with time of progress and expansion.

28. CHARCTERISTICS OF AB ENTREPRENEUR Leadership and management abilities Positive risks takers Self – confidence and positive outlook Innovativeness and forward looking Natural intelligence and decision making skill

29. Leadership and management abilities Managerial Leadership is the ability to plan, organize, direct and control the organization towards the goals and objective of the organization. It requires conceptual skills in defending the direction of the business and the development of plans and programs that will work effectively.

30. Positive risks takers The entrepreneur as a positive risks take, enjoys the challenges of putting his money and time into test. He calculates the various alternatives open to him and careful in the choice of action

31. Self – confidence and positive outlook The entrepreneur has strong of belief in his capacity to make a difference in their chosen field. They believe that achievements are guiding principles in man’s success as faith drives them to do better.

32. Innovativeness and forward looking The blazing path to entrepreneurial success is the courage to make innovation in products or service. The entrepreneur refuses to stop at his achievement.

33. Natural intelligence and decision making skill The entrepreneur’s natural intelligence in an important requirement in making effective decisions. The entrepreneur has to make decisions as he cannot make things happen without making a wise choice of alternatives

34. The Decision making Process Identify the problem - The risk involved in the management of the business has to be identified and analysed before solutions could be made. Relevant data and information must be organized. Gather the data that brought the problem - Good and intelligence entrepreneur must be able to get the data that brought about the problem. The solution to the problem is dependent on the data available Analyze the data - Not all information is relevant to the solution of the problem. Some data must be discarded. The data focus on the problem at hand. It must be timely gathered and the information is based on actual situation prevailing in the business . Formulating alternative solutions - The entrepreneur makes various alternative solution to the problem at hand. These solution are subject to series of analysis and he may need outside opinion

35. The Decision making Process (CONT’N) Selecting the best alternatives course of action - After all the alternative courses of action had been analysed, the entrepreneur makes the decision. The decision has to be implemented with the less possible risks in terms of money, time, and effort. Implementing the best alternative - The modern entrepreneur utilizes group efforts in solving business problems. Problems and solution are best arrived when people who will be implementing the decision are properly consulted and their opinions and ideas are taken into account before the final decision in implemented.

36. ORGANIZING THE BUSINESS ENTERPRISE The prospective enterprise before going into the indicate field of the business world should first go into deep analysis of their personal and social attitudes. It is not only the material assets but personal values and characteristics and social attitudes.

37. ENTREPRENEURIAL STUDIES The entrepreneur must see for himself the kind of management control and how the business will be able to generate his projected profitable investment. He sees the wide open market of opportunities and the possible problems before he plunges into intricate operation of the enterprise.