4 THE GOVERNMENT AND THE DEVELOPMENT OF ENTREPRENEURIAL ECONOMY THE PHILIPPINE ECONOMIC LANDSCAPE The Filipinos remain to be poor because they have not totally developed the natural potential of the land and its people for economic development. According to the latest survey, many are still living below poverty line and that the government has to make dole outs in the amount of 36 billion pesos for the poverty alleviation program. The next national budget has programmed more money for the poor of this country. The amount of money given directly to poorest of the poor will give them a little food for the day. The government attached conditions that those given cash grants should send their children-to school and should visit government health centers. The government hope that with literate population it will help sustain the modest economic growth of the country. Assuring them that healthy bodies will make them productive, individuals have guarantee that economic development could be achieved. DEVELOPMENT OF BETTER EMPLOYMENT OPPORTUNTIES Employment generates income for the people. With income, the people will have money to buy the basic needs of food, clothing shelter, and improved condition. This will develop the local economy as factories will be producing basic necessities of life. They will be able to generate local employment that will in turn pay taxes to the government to provide basic services like education and health. While employment is the hope for the needed component of economic development, it still remains elusive for the many job seekers as the need has exceeded more than the demand. We need skilled manpower and those who can be employed in OUTSOURCING COMPANY. . Our college graduates who have undergone college with English as medium of instructions are supposed to have developed the mastery of the language. In high school, English is the medium of instruction and another four years in college yet ‘or call center agencies for failure to deliver the necessary we remain not qualified f Skills, The survey conducted on this area needs some fifty thousand more employees especially those of other languages like Spanish and Japanese. Our high school graduates lack skills for employment. We need welders, stee! man, masons, skilled carpenters, and many others in the construction industry yet the Supply of this manpower is not enough. Electronic companies want to hire machine Spetators and expand their manpower base for plant expansion yet many are not qualified for the position. INVESTMENT IN NEW INDUSTRIES new ventures especially in the countryside will develop the economy Investmentin: 0 ‘ore employment and other local business ventures, of the nation. It will create m Scanned with CamScannerInvestment of foreign nationals should be looked into acoores 2 be Provig of law. Filipino entrepreneurs must be partners in such ven Protect our, interest and those of the environment. The agricultural sectors remain to be a wide area eae eae a resources in the Southern Tagalog region and those in Mindanao are vast aq development for exportable products. Coconut husk and shells need new techng for more viable product for development either for local industries and those of og market. Coconut juice is beginning to find new markets abroad and we need to these in the countryside where these resources are more abundant. Good vin comes from coconut or SASA Palms better than synthetic and chemicals. The government should come in for intensive research for medicinal plants abounds in the countryside so that we can supply our population with local medig We need to sustain our health program with cheaper local products so that we can away from the bondage of branded medicines that are dictated by foreign nation Investment in medical research is investment in the future of our nation and the bg health program for the masses. The vast agricultural areas that remain uncultivated could be planted to exporta high value fruits and crops like mangoes, dorian, jack fruit or langka, and various that could be processed into dried chips or puree for export to other countries, switch of taste buds from the bottled drinks to more fruit flavours are oppor for expansion. " components and other electronic industries should be encouraged by the gove for employment opportunities of the expanding semi urban population. / Training component should go hand in hand with this development in investmenk that qualified manpower could be supplied in these industries, TOURISM AS ECONOMIC COMPONENT The country is noted for its beautiful beaches and sceneries that attract with money and wealth for leisure and pleasure. The government should come i development of these potentials for more money and investment. Government investment in promotional activiti change the image of this country if we do not im component for the attraction of more tourists; ies abroad could do nothing prove the following areas which 1, Educational campaign among those involv: 2 ed in this industry should be Pll! place along the following: a. The Government Authorities at the Port of Entry, The port of entry is the show win dow of th ecially people who travelled widely to comp Steg Wit tho coal are our facilities with those count Scanned with CamScannerwere they spent their time, Our facilities should include among others pecial tourist lounges where they could experience the usual Filipino hospitality. A show window of our bamboo organ, our native dances and pictures of beautiful Philippine scenery not only of Boracay but also other tourist destination, that remained unexplored by other tourists. The usual Filipino smile of hospitality must be experienced in their visit to our country. IMPROVEMENT IN THE PEACE AND ORDER SITUATION The tourist will not come to a country where their life and property will be in danger. The taxi drivers serving the tourists should show the utmost courtesy and trust in their honesty of service. Tourists must have peace of mind while in their hotels, and places of accommodations, that no bad elements will harm them in their time of peace and enjoyment. Their money must be worth in terms of service or the products that they bought for souvenirs. There is more fun in the Philippines if tourists are happy to telll other tourists that they enjoyed their stay and have not experienced any problem in their stay in this beautiful country. Investors would not come in the country where other nationalities are not sure of their stay and be protected of their investment. Peace and order is the prime responsibility of the government. Mindanao is the haven of investment. Investment in agriculture in this region is profitable due to its weather condition and the rich natural resources. : No investment in the countryside would come in if the government could not control the left leaning forces that collect revolutionary taxes from businessmen. They will be paying more in taxes, one from the government and another for outside force. This is the sad state of countryside business activities and does not encourage investment. DEVELOPMENT OF BETTER INFRASTRUCTURES ies for tourist destination must be improved by the government in order to attract tourists. Incentives in the development of better hotel facilities and other recreational areas must come from the government. Liberal interest rates must be given to local entrepreneurs in the development of theit areas and encourage foreign partnership. Airport and Road faciliti m industry worldwide must discover that the nient, Tourists would come in if proper the expertise to develop areas of tourist Foreign investors in the tourism Philippines has all the potential for invest exposure is also made by those who have attractions. program should focus in the development of more .d better road facilities for the transfer of agricultural Government infrastructure highways in the countryside an Scanned with CamScanner— ; ila and its Products to the urban center, Traffic in the Metropolitan Manila and its surroyng, » afeas are causing a lot of fuel consumption and travel time. A more viable system of transportation should be put in place ea this trag condition. The transfer of raw materials and finished products mus A re cient, Frat teach their destination without delay especially perishable goo ome vegeta png the Fish products that came from the countryside. Traffic caused by K_ COPS in the transport of important commodities must be totally eliminated, POLITICAL STREAMLINING Too much politics in this country could be one of the greatest evil in the econo development of this country. Politics is the entrepreneurial activity of those in po Their investment during election is their investment to amass more money yw they come into power though graft and corruptions. They hold valuable gove contracts and projects and the release of fund carries with it some grease money, Billions of PORK BARRELS or in other words, countryside devel funds are in the hands of Congress and Senate. How they spend this money is ng known. These are political “fish rods” that lure the eléctorate showing their ba of accomplishments. The same is true in the local political arena even those in fh BARANGAY level. he An honest audit for expenses of project would show that only fifty percent spent for the hi igh profile claimed accomplishments. Political awakening for th electorate is needed for better politicians, The price of selling their votes during election, the entertainment given them terms of food and wine and the many dole outs are the making of politicians with bad intentions. Political education and inculcating the values of honest election is ano! he mandate for the educational sector. Many would like to make this country great but they do not have the means to fig the giants in the political arena. The law on Political Dynasty has to be implemented and revised that politicians and: their relatives could only serve for one term. The root cause of our poverty 5 the making of too much politics and proliferation of dirty politicians that omass ti wealth of poor JUAN DELA CRUZ. 2 Political will and honest intentions for the gteater good of the country could bell vehicle for economic development, Political transparency and bere ojeon ett could propel economic development and more investment could be parveted wil honest government. N Scanned with CamScanner meBanners and pict a ammunity overtone pox: featical figures now abound in almost all corners of the G Year before election, They are announcing and congratulating graduates. We can see pictures a iti 5 ind politi er ions i for the needed name recall come hectic i posters on any occasions in the community ime. They already spent mone is politi veeemient 'y for such non-sense campaign and this political investment is the root road to graft and corruption. Politicians in power heralded their accomplishments with posters while their real job i the people's meney! ile their real job is to do projects as they come from The national administration has stopped such practice but local politics still could not follow for their personal interest. The time call for political maturity is badly needed for our economic development. Laws regulating such practice could’be the making of honest politicians, who will dare control their personal ambitions. INVESTMENTS IN PRODUCTION, TECHNOLOGY AND RESEARCH The economic success of most countries in the western world and Japan is attributed to the introduction of more advance technology in the production of goods and services. The more advance technology would mean more goods from the the production line. More production would mean less cost as the economies of scale operate in the system, More goods for consumption would mean lesser price for the buying public. Steady supply of farm products to the urban center with the introduction of modern farming system would mean price stability for the basic necessities for the growing Filipino population. Increase in farm yields would generate better income for the farmers and develop their living condition. Technology transfer needed government support to make things happen. New farms implement that would reduce labor cost in the cultivation of the land should be the investment priority of the government better than the cash transfer program. Increase agricultural productivity would remove the bondage of poverty in the countryside and this would minimize the internal migration to the urban centres that causes imbalance in the distribution of population. .ds new technology and the preservation of fish sanctuary wn, Modern fish culture should be introduced in the ‘dwindling fish resources, Dynamite fishing should be + corrals and fish sanctuaries. Violators should be put litical amnesty for offenders. Our fishing industry nee needs government attentio countryside to preserve our totally banned for it destroys ou to jail and there should be no pol inland shorelines should be developed not only for the aor ee SANGUS AND TILAPIA but also for the high value fish aches LAPU-LAPU, CRABS, SUGPO and other high value fish products for local and export market. The Bureau of Fishery and Aq fishing environment and introdt atic Resources (BFAR) must do its job of protecting the face new technology to increase fish production. More Scanned with CamScannerstringent implementation of fishery laws must be made as an antidote to e recovery in the fishing industry. Research and technology would make investments in the processing of more Products into exportable products for the world market. Our local handy craft ind needs new technology. Improve our local products so that we will be able the export market. More research programs should be done by the government these area would improve the country’s economic landscape. GOVERNMENT INCENTIVES TO SMALL AND MEDIUM ENTERPRISES Mostof the economiea the Philippine setting are found in the count and operates as small and medium enterprises. We find them as retailers, dealers, and sell small vendors, and mostly sole proprietor entrepreneur. For some, we call call them the underground economies that are included in the statistical bul economic activity. Small and Medium enterprises are the great contributors in the development, our economy. More people are employed by small entrepreneurs and they immensely to our economy. We are poor as a people because we lack ent interest as government imposes a lot of restriction in the organization of business, The Government should encourage the development of entrepreneurial in transforming local resources into products or services that would generate necessary employment opportunities and improve the economic conditions of people. For many years, the government administration has neglected the use of our material and natural resources. The poor seem not to have the right be rich and the government has neglected to give them the opportunity to grow economic activity, while big corporations and investments from foreign countries: given incentives in terms of taxes, small enterprises that are just getting off the searching for more opportunities and capital are taxed immediately on the first of operation. If we are really honest in our intention of improving the economy of nation, then our officials should look into giving the Filipinos more incentives to business entrepreneurs, The following are suggestions for government incentives that would entrepreneurial activities. TAXES AND FEES. ‘A. Small Entrepreneurs with Capital of Less Than One Million. 1. They should be free from tax for a period of at least 2 years. They hi to Jearn the rudiments of business activities and find viable means operation. They need some take off points, 2. DI Registration should be at two hundred pesos, ‘pal li and permits should not be more one thousand poe aan PERMITS should not be more than one hundred pesos. Scanned with CamScannerB. Entrepreneur with Capital Base of More than 1 Million to 5 Million. 1, Tax free for a period of one year 2. DTI Registration — P5990 3. Barangay Permits - P200,00 4. Municipal Licenses and Fees — P5,000.00 C. Entrepreneur with Capital Base of More Than P5,000,000. 1. Tax free for 6 month 2. DTI Registration ~ P2,000.00 3. Barangay Permits — P1,000.00 4. Municipal Permit and License Fees — P10,000.00 These enterprises shall pay regular taxes and fees as imposed by the regulating agencies of the Bureau of Internal Revenue and the Municipality after the expiration of their period of exemption. The government has to generate the necessary funds for development of the community. Government should conduct the necessary audit to make them pay the right taxes as most entrepreneurs also make false statement of income to avoid the payment of right taxes. STABILITY IN THE PRICE OF GOODS AND SERVICES While prices dictate.the world economy and the fluctuation in the exchange rate, the government must support price stability as it is an important component in the growth of the business sector. There are two opposing components in the foreign exchange rate. When the value of the dollar goes higher the exporter are happy as they get more for their products, when it falls the importers are happy as they enjoy lower cost of imported materials. The market forces in the exchange rates are conditioned by the ability of the government to make balance in the growth of export and the control of imports. Balance in the supply of foreign reserves stabilizes the exchange rate of the country that will result in the stability of prices. The flow of dollars to the country in terms of remittance from OFW is another factor in the stability of our dollar reserves. SMUGGLING Smuggling means deterrent to the growtl Bovernment control on economy. an outflow of dollars without government control and it is a h of our local industries and our economic development. Strict these activities could develop our local industries and our onions and other vegetables from China-is deterrent to Jtural sectors as prices are beyond the production cost ot given incentives by the government. Smuggled Smuggling of garlic, improvement in the agricul Of the local farmers who were Scanned with CamScannerimported shoes from China and Korea killed the shoe ins dustry in Marikina and shoe producing towns of Laguna. Taxes from these imported goods could be tu into production incentives for small business entrepreneur that are trying hard jg compete with foreign products. The entry of foreign products in the country is the making of powerful economies of the world. They impose the FREE TRADE AGREEMENTS and GATT - Governmeng Agreement on Tariff and Trade for the entry of imported products. While they could produce more products due to the introduction of more mechanized technology and enjoy production through the economies of scale, poor developing countries could hardly produce products of such magnitude. Their of production is very much higher and therefore competition is in favour of rich countries. Another factor is that we love imported products more than local products, Smuggling is the business of the powerful and the influential in the government, Cutting them from the roots isa difficult task for the officials that need grease money for the election. Support for the entrepreneur in the local setting is needed by eliminati or at least cutting to the minimum the elements of smuggling. Competition with smuggled goods would not make our local industries grow. The government must start to solve this problem of smuggling and corruption support the local entrepreneurs in our sincer¢ efforts to develop the economy of this country. Today is high time as tomorrow may be too late. ENTREPRENEUR AND SOCIO-ECONOMIC DEVELOPMENT The development of the nation economic activity is the making of small medium enterprises mostly located in the countryside. They contribute to economy of big corporations as they are also consumers of their production. It is entrepreneur who develops new products and makes innovation that becomes the backbone of more economies. The following are the contributions of the Entrepreneur in our Socio Econ¢ Development: 1. The Entrepreneur Provides Employment, Employment generates income and those employed pay taxes to thé government which in turn gives benoit the social and educational neeés the greater population. Those with income through less burdensome to the government, 8) employment becom They pay Medicare contributions and send their child: ivate school They enjoy Ge er a benefits that make them selesuice! their retirement age. The enjoy housing by < Its housing become affordable. i benefits from their Pag-ibig funds Scanned with CamScanner|. The Entrepreneur P, ‘ay Taxes, Entrepreneur pa s taxes i A export tax, and penises in the form of real estate tax, sales tax, import and fom the local and national government. Taxes collected fro oe m the entrepreneur pump up the development of better et in terms of better road facilities, etier school buildings for the » and other social services, With the taxes paid the government could maintain better peace and order situati P a el could better protect the peace, uation a8 police and military personn .. The Entrepreneur Provides New Lifestyle and Pleasures. Product innovation and development is the making of entrepreneurs. Mobile phone is the newest contribution of the entrepreneur to make a new life style for more Filipinos. Communication between individuals and business became so easy and handy as everyone enjoys new innovation. New technology like computers and other household conveniences are the results of entrepreneurial geniuses that turned our life to new life style and pleasures. They provide life convenience beyond the imagination of man. Entrepreneurs do not stop searching for better products and services. The Entrepreneur Improves the Capital Base of the Economy. The entrepreneur mobilizes economic activity as the circulation of money which pumps up the economic development of the community. Capital investment generates profit. Profit, in return, is growth in investment base that will propel more business activities. Entrepreneurs do not keep their money in the piggy banks or make this as idle deposit in banks. The greater money in circulation the greater is the economic activity of the nation. More investment generates more employment opportunities for the people. The Entrepreneur Creates People Empowerment and Social Mobility. ‘neurs accumulate financial resources that give them social power in the community. They can afford to buy some personal luxuries of life. They acquire new life style of travel and pleasure. They make new houses and invest in real properties that make them respected in the community. .r5 them to make decisions related to the wise use of money. me differentiates them from those employed as their life styles d complex. Empowerment makes entrepreneur the ir innovation and hard work. Entrepret It empower! Their high incom: become more diverse and idol of community for thei The Entrepreneur Provides Healthy Competition. tition provides people with choices of new products or thy com) Healthy iP seeks better products and develops new ones better services. Entrepreneur Scanned with CamScannertition develops pride for that will sati i tomers. Comy will satisfy their target cust \pet rior from the other. entrepreneur that their product or service is supe! ‘The entrepreneurial ego of human superiority in the development new product or service drives the entrepreneur to more innovation development hence the greater good cascade down to the consumer w wants new products and services. The David of economic development is in the Asian Region. The Goliath of the western world is beginning to loss foothold in economic supremacy. David has all the resources for development and is awakened to the call of the time. P-NOY should stat to think like David with stone in his hand to topple the giants in the world economy, You and I should start the noble objective of making this nation a new haven of development. Scanned with CamScannerCase 4 SHASHA TOYS: YOU'LL NEVER WALK ALONE SS When Ms. Ronabeth Bondoc took an early retirement from the private bank she used to work with, she was only forty five years old, Little did she know that her retirement benefits would be invested in a business that will make her work again on a full-time basis. A few days after her retirément, she attended a three-day training in toy-making sponsored by the Department of Trade in Makati. Inspired by the bright prospect of the toy industry, she started to mobilize her resources to get some income. Her father allowed her the use of their one-hectare lot in San. Felipe, Zambales. A hundred square meter low-cost building was constructed where some equipment and machinery were installed. The firm was named Shasha Toys. At the middle of operations, Ms. Bondoc herself manufactured the toys assisted by three helpers, a male and a two female. Whenever possible, her children also helped. This was also the time when she negotiated with supermarkets in Makati for supplying them with her manufactured toys. By July 2005, orders from Manila increased, requiring her strengthen her workforce to twenty skilled laborers, two foreman, and two clerks. She was already making sales at an average of P900,000 per month. It was in March 2008 when Ms. Bondoc was approached by an exporter prodding, her to manufacture for export. She knew that the export market for toys was lucrative and she could easily double or triple her sales is she explored it. However, her immediate problems, were how to increase the capacity of her small factory and how to improve the design of her products. Scanned with CamScanner