RESEARCH ACTIVITY

ABM 66

1. Research and discuss your own understanding of the Philippine Investment Climate.
According to a report by US, the United States Department of States (DOS) has
recognized the latest 2020 Philippines’ investment climate improvement from the
Investment Climate Statements. They even mentioned reforms made by the
administration of Duterte that helped more to improve the business climate of the
country. It was noted by the 2020 Investment Climate Statements which was
released on September, that the Philippines was able to continue to address the
investment constraints in the country.

Congress have noted pending bills that could give large impact on the investment
climate in the country. These include the Public Service Act, the Retail Trade
Liberalization Act and the Foreign Investment Act, which will going to open more
sectors to the foereign players.

Foreign ownership limitations in many sectors of the economy constrain

investments,” the USDOS said. It added that despite the improvement in the
investment climate, the country’s foreign direct investment (FDI) is relatively low
compared to its neighbors in Southeast Asia.

“The Philippines ranks fifth out of 10 Asean countries for total FDI in 2019. FDI
declined by almost 24 percent in 2019 to USD7.6 billion from USD9.9 billion in 2018,”
the 2020 Investment Climate Statements said.

On the other hand, the 2020 Investment Climate Statements has lauded the
Philippine Economic Zone Authority (PEZA) as it offers a business environment for
export-oriented companies.

2. Research the definition and contribution of Micro, Small and Medium Enterprises in
the Philippines.
An MSME in the Philippines is defined as any business activity or enterprise
engaged in industry, agri-business and/or services that has: (1) an asset size (less
land) of up to PhP100 million; and (2) an employment size with less than 200
employees.
They played an important role in the philippine economy. Giving employment to the
Filipinos, spearheading innovation, spreading the wealth, and sharing to the world. Aside
grom that it also creates an improvement to the development of Philippine economy
through their contribution to rural industrialization, rural development and
decantrelization of industries, use of indigenous resources, earning foreign exchange and
also entrepreneural development.
MSEM's are notably skillful in maximizing the use of scarce capital resources and are
able to partner with large firms by supplying local available resources. MSEM's can act
as the seedbed for the development of entrepreneural skills and innovation.
MSEM's also contributes to the creation of wealth, employment, and income
generation, both in rural and urban areas. Thus, ensuring a more equitable income
 distribution. MSEM's provides the economy with continuous supply of ideas, skills, and
innovations necessary to promote competition and efficient allocation of scarce
resources.

3. Research and discuss entrepreneurship in the Philippines by using your own words.
Entrepreneurship is an act of creating a business or business while scaling to
generate a profit. In the Philippines, it serves an important in empowering the poor,
enhancing the production, and as an impetus to innovation. The entrepreneurship in
the Philippines recognize by the 1987 Philippine Constitution as an engine of
economic growth.
According to the research, on 2011 there were approximately 830,000
business enterprises in the Philippines.  99.6% are classifies as micro, small, and
medium sized enterprises (MSME) which responsible for the 38% to total job growth.