CHAPTER 1

THE PHILIPPINE ECONOMY

The national economy is composed of business enterprises, households and the
government. These are the major sectors of the economy. The strength or weakness of one sector
affects the other sectors because of their interdependence. However, it is the government which
provides the leadership in improving the economy.
Basically, we have market economy or free enterprise economy. This means there are
economic freedoms, like fee competition, free choice of investments, and prices are determined
by the interaction between demand and supply. The role of the government is to extend financial
and technical assistance, and to formulate policies that are conductive to economic growth.
Unfortunately, our economy has not improved much in terms of the interests of the
masses, because of our colonial and primitive agricultural economy. Foreigners control our
economy from production through marketing. Our agricultural outputs are not even sufficient to
feed our growing population. Hence grinding poverty has not left us. Such situation has been
aggravated by our population explosion.
A deeper analysis of the economies of rich countries reveals that most of them are not
endowed with abundant natural resources. Japan is a very good example. The country imports
about 90 percent of raw materials for its industries. Yet Japan has excelled, without equal, in
trade and industry.
In economic development, the bottom line is the quality of the people of a given country.
Knowledge, skills and values are the main determinants of economic growth. Needless to say,
values constitute the key to economic success of any nation. The Japanese are risk takers,
hardworking and self-reliant. Such entrepreneurial qualities have made Japan prosperous nation.
But above all, the Japanese love their country- including its culture, traditions, institutions, and
products.
This introductory chapter presents major topics, such as the economic history of
Philippine development, entrepreneurial economy, economy priorities and fundamental problems
pf the economy, among others.
Philippine Economic Development
About 250,000 to 3000,000 years ago, there were already inhabitants in the Philippines.
They came from other countries in Asia through land bridges. Over the long years, many other
foreign groups settled in the Philippines. They lived by hunting, fishing, and food gathering.
Later on, more civilized migrants introduced primitive agriculture and handicrafts. The barter
system was also practiced throughout the century. This time, the people were no longer nomadic,
they established permanent settlements.
As early as the 10th century, there was already trade with the Arabs. Three hundred years later,
the Chinese dominated the trade from Batanes to Sulu. Such foreign trade created new
communities in bay areas and in places near the major rivers. Santa Ana is an example. Also
foreign trade expanded domestic trade. Local traders went as far as Malacca, China, and Borneo
to conduct their businesses. They paid taxes to the Ming Emperor to be able to enter Chinese
ports.
The Colonial Rule
The Philippine became the salve of three colonial masters: Spain, United States, and
Japan. For more than three centuries we were under Spanish rule, and about half century under
the American regime. The Chinese dominated the retail trade business even during the Spanish
time. The Chinese clustered around Intramuros – which literally means “city within the walls” –
the Spanish colonial capital. Tondo, Binondo and Santa Cruz were inhabited by the Chinese.
Parian was the commercial center. The only economic contribution of the Spanish rule were the
ecomiendas, galleon trade and tobacco monopoly. All these benefitted the colonial masters while
the Filipinos were exploited.
Under the American regime, many Filipinos thought that the coming of the Americans
was a great blessing. At that time, the tremendous growth of factories in the United States
created big problems. Where to sell their surplus factory products where to get raw materials
were the big problems. To solve these problems, the United States colonized new territories like
the Philippines.
To control Philippine trade, the United States set up free trade through the Payne-Aldrich
Act in 1909. All U.S. goods in unlimited qualities entered in the Philippines free of tax.
Philippine products also entered the United States tax free, but only primary products like sugar,
tobacco, coconut and abaca. To complete U.S. economic exploitations, our Philippine economy
was designed for agricultural development, not for industrial development which is the economy
of the rich countries.
Likewise, Japan invaded the Philippines and other Southeast Asian countries for
economic reasons. It had problems such as population explosion, shortage of raw materials and
surplus factory products. Japan could not penetrate the world market due to trade barriers. It sold
the idea of Co-Prosperity Sphere to Southeast Asia countries. This was an economic cooperation
against the United States and Europe. Because the Asian countries did not buy the Japanese idea
of economic cooperation, Japan used military force to conquer Southeast Asian countries.
Our economy was at its worst during the Japanese time. Goods and services were
extremely scarce. The production of sugar stopped for lack of foreign market. As a result,
inflation became very high. This was aggravated by the printing of money by the Japanese
government. Most Filipinos starved. Rice sacks were used as clothing. The price of rice per
cavan was P30 before the war. During the Japanese time, it was P3, 000.
The Republic 1946-1972
 The United States granted our political independence on July 4, 1946. Filipinos rejoiced
and their gratitude to the U.S. government, only to realize later that our independence was not
meaningful. The United States still influenced our political and economic policies.
The American imposed the Bell Trade Act of 1946. This gave the American businessmen
the right to exploit our natural resources to operate public utilities and other businesses, and to
enjoy the pre-war free-trade agreement. The Philippine government accepted the Bell Trade Act
in exchange for war damage payment.
When the Philippine economy plunged into its lowest level, the United States agreed to
impose import and foreign exchange control. Clearly, this reduced U.S. exports to the
Philippines. But the United States had no better alternative for fear of communist takeover once
the national economy became bankrupt.
The import control program of the Philippine government provided Filipino
entrepreneurs opportunities to put their own enterprises. There was no foreign competition. In
1958, President Carlos Garcia introduced Filipino First Policy. It granted the Filipinos
preferential treatment in the Philippine economy. Thus, more Filipino factories were established,
particularly along EDSA.
However, the control program lasted only for seven years. The U.S. government
pressured the Philippine government to return to free trade which naturally favored U.S. business
interests. In 1962, the newly elected president Diosdado Macapagal abolished the import and
foreign exchange control. In exchange, the Philippine government received more than $500
million loan from United States.
The abolition of control pulled down the economy. President Ferdinand Marcos, in his
1965 State of the Nation of Address, said that more than 1,500 industries were in distress, and
hundreds of workers were jobless. Despite Marcos criticism of the decontrol program, he was
forced to continue such program due to heavy pressure from the WB-IMF. The Philippine
government was heavily indebted to United States, and it needed more funds for its projects.
During Marcos regime, the peso was devalued several times.
The Martial Law Regime
There was a fast decay in Philippine society and deterioration in the economy. To prevent
further ruins, martial law was declared. It was supported by the United States. On the other hand,
critics of martial law claimed that its real objective was to protect the interests of the local elite
and foreign capitalists.
The WB-IMF played a dominant role in the economy under the martial rule. The said
giant financial reforms, import liberalization, foreign investments, export processing zones, tariff
reduction, high interests rates, devaluation. And tight credit policy.
Due to U.S. intervention in our economic policies, by means of WB-IMF conditionalities,
foreign investments through multi-national corporations practically monopolized the production
of cash crops, instead of food crops, was given the first priority. Such capitalist’ agriculture was
controlled by the United States and Japan.
 The remaining few years of martial rule was marked with economic devastation and
political instability. In 1984, inflation rate reach 50 percent. Foreign debts rose to $27 billion
form $600 million in 1965. The GNP growth rate was negative 7.1 percent. In 1985, GNP
growth rate was negative 4.1 percent. Government financial institutions like the PNB and the
DBP were bankrupt. Crony capitalism and dictatorship led to the destruction of the economy and
society. Finally in February 1986, people power ended the Marcos regime.
The Aquino Administration
Economic recovery was the first priority of the Aquino government. It stressed rural
development and the development of labor-intensive industries. Such economic development
program was planned to poverty and to generate jobs and incomes for the poor especially in the
rural communities. The Aquino 6-year development plan was based on the following principles:
- Respect for human rights
- Promotion of social justice
- Wiping out of poverty
- Attainment of economic growth
- Market economy
Here are some of the major national policy thrusts:
1. Greater reliance on the interplay of market forces and private sector initiative.
2. Provision of basic infrastructure and social services.
3. Implementation of tax reforms to enhance the efficiency and fairness of the tax system,
and improve tax administration.
4. Establishments of more effective means of helping the poor, including the proper
implementation of the agrarian reform program, and the delivery of basic social services.
5. More effective implementation of the population program; and
6. Improvement of agricultural and industrial productivity.
The Aquino administration was able to turn around the negative GNP growth rate of the last two
years of Marcos regime into 1.8 percent in 1986, 5.9 percent in 1987, 5.7 percent in 1989 and 3.1
percent in 1990. However, in 1991 the GNP posted negative one-half percent decline. It was
noted that the last two years of the Aquino government were experiencing decline in economic
growth. Natural calamities, deteriorating peace and order, global recession, and the IMF and WB
control on government expenditures were responsible for the poor economic performance of the
Aquino government.
The Ramos Government
Unlike the Aquino government, President Fidel V. Ramos was lucky in inheriting
political stability, together with democratic institutions in place. Likewise, long range economic
and social infrastructures have been undergoing construction. Basically, the Ramos government
in just an extension of the Aquino government.
Aside from continuing the good social and economic programs of the previous
government, like cooperatives, agrarian reform, foreign investments, rural development, decrease
of poverty, and market economy, the Ramos government has given priorities to the problems of
energy, peace and order, and the strengthening of local government units. The success of the
Ramos government on these areas would certainly mean business growth. More local and foreign
investments would be encouraged to put up their business. And this would result to more jobs for
the people.
In any government, political will is important in pushing good government programs for
the masses. As long as there are graft and corruption, nepotism and social injustice, there would
be no economic progress for the people – only for the few.
Fundamental Economic Problems
All countries have economic problems. We have economic problems because our
resources – money, materials and machines – are limited while our human needs are unlimited.
The unfair distribution of productive resources and population explosion have created more
economic problems. Most people are poor because they depend only on their labor resources. In
less developed countries like the Philippines, the price of labor is very low. In other words,
salaries for employees are generally low. In more ways than one, salaries are not sufficient to
satisfy the basic human needs.
The biggest economic problem of our country is unemployment. Those who are willing
and able to work cannot find jobs. In industrial countries like, Japan, Germany, Italy and the
United States, they even import workers for their factories. Hundreds of thousands of Filipinos
like to work in other countries for lack of job opportunities in our own country.
Unemployment creates social problems such as housing, health and sanitation,
prostitution, robbery and other related crimes. Jobless people go to the cities to search for jobs.
Most of them cannot get jobs. So they become squatters. Such sudden influx of people in the city
poses tremendous social liabilities. They compete with already scarce social services of the
government. To survive, they are the most likely to commit social crimes.
The grim faces of poverty are all around us. Dirty individuals, young and old, are begging
in all busy streets, not a few sleep in empty dilapidated wooden boxes or even in empty tombs.
Shanties grow by leaps and bounds. Barongbarongs proliferate along river banks. The food of
the dog of the rich is must better than the food of the poor people. Even the houses of the dead
rich are far better than the houses of the living poor.
Where is social justices? We may ask. It is the responsibility of the national government
to provide economic opportunities for the poor and powerless. It is also the social responsibility
of the rich to share their extra blessings with the less unfortunates. However, given reasonable
opportunities, the poor must be self-reliant, industrious and creative. There are many rags-to-
riches stories. These should inspire them to be hardworking and ambitious.
The Entrepreneurship Economy
Free enterprise or market economy is an entrepreneurial economy. This is an economy
dominated by the entrepreneurs. Such individuals are risks takers. They organize and manage
their own business.
 One of the main thrusts of the national governments is the creation of the spirit of the
entrepreneurship among the poor. In this connection, the governments extends financial and
technical assistance to small-scale industries, especially micro-business enterprises. Such type of
enterprises requires small capital, low technology and local materials. More importantly, it is
easy to manage and it is labor intensive. Small business is exactly the need of our developing
economy. It is within the competence and resource of the masses.
Many are looking for jobs. A much better alternative is to create jobs for others. This is
only possible if small business are put up. Many claim that they have no money and skills to start
their business. This is not really a problem. The government and non-governmental organizations
(NGOs) provide financial and technical support to livelihood projects. For example, the making
of toys, Christmas decors, toccino, patis, vinegar ballot or any other ventures that are income
producing are worthy micro-business.
Fortune Favors the Entrepreneurs
Not a few giant business came from micro-businesses. In our country, we have National
Bookstore, Sarao Jeepney and Rufina Patis. Jack Simplot, one of the richest person in United
States, started his business by selling two copies of new papers day. The one who invented the
paper clip became wealthy. Likewise, the one who introduced the chewing gum became
prosperous. Such simple and practical creativity can also be done by others.
Evidently, entrepreneurs like Soccoro Ramos of National Book Store all the rewards of
their efforts. Moreover, they creates jobs for people, and they help the government through tax
payments. On the other hand, employees get only low salaries, and they are not the boss.
Employees do not become rich. It is in the business where there is money and economic fortune.
In fact, market vendors have more incomes than office clerks.
Many Filipinos are poor and jobless. Yet our country is rich in natural resources. The
government should train the poor to be entrepreneurs. Then give them the opportunities to
transform our idle natural resources into useful products. Thus, the problem of unemployment is
reduced, and our idle natural resources are utilized.
All we have to be is to be self-reliant, hardworking, and creative and risk takers. These
are some of the traits of successful entrepreneurs. With these tool of human virtues, we can
acquire what we do not have. Many entrepreneurs started from scratch. Now they are rich or
prosperous. Their children study in the best schools.
Our country is a poor country because of the quality of its people. Some countries have
poor natural resources, and yet they are rich. We prefer to be servants of the rich countries. We
build the roads and buildings of the Middle East. We teach the students of some Asian and
African countries. We provide medical services in U.S. hospitals. Such treasure of human
resources should have been utilized for our own economic development.
The real and enduring wealth of any country is its people. Their values, skills, and
knowledge make the difference. The United States is a great country because the values of the
people. The United States is a great country because the values of its people, not to mention their
skills and knowledge, contribute to its greatness. The same is true in the case of Japan. It is sad to
state that our country we do not only have colonial mentality, but also crab mentality. We pull
down our neighbors so that no one succeeds in reaching the top. There should be group
cooperation and social responsibility among us. The individual aspiration to be successful should
be admired and encouraged.
CHAPTER 2
THE ROLE OF ENTRENEURSHIP IN ECONOMIC
DEVELOPMENT
There are various definitions of entrepreneurship. However, the key concept is innovation. This
refer to new different ways of doing things like technology, marketing, human relations,
management, and so forth. When an individual creates a new product, it is innovation. When he
sells his product in a different approach it is also innovation.
Evidently, a more efficient way of producing goods and services contributes to economic
development. Likewise, a more economical and faster method of distributing goods and service
accelerates economic development. A more appropriate system of utilizing the inputs of
production, such as money, materials, machines and manpower, can favorably contribute to
economic development. All the three aforementioned situations comprise entrepreneurial
activities.
In the view of the innovative nature of entrepreneurship, it is capable of generating more
jobs, incomes, goods, and services. Ultimately, this means better economy and higher standard of
living for the people. However, the real contributions of entrepreneurship is measured in items if
the welfare of the masses. It should be Filipino entrepreneurship for Filipino economic
development- whose benefits seep down to the level of masses.
This chapter explains the various theories of economic development and growth, the
goals of the economy, the contributions of entrepreneurship, and the role of women. In
additional, an entrepreneurial economy based on economic nationalism is discussed.
ENTREPRENEURSHIP DEFINED
Entrepreneurship, according to Professor Nathaniel Left, is the capacity for innovation,
investment and expansion in new markets, products and techniques. The definition implies that
an enterprise is at work whenever an individual takes the risk and invest resources to make
something unique or something new, designs a new way of making something that already
exists, or creates new markets.
However, entrepreneurship is not only applicable to business enterprises. It can be also
done in schools, hospitals, and other social services institutions. Entrepreneurship has special or
extra- ordinary features, such as the creation of something new or something different. In short, it
is innovation which distinguishes entrepreneurship from other activities.
Any person who can create something new or something different has already acquired a
competitive advantage. Because it means an improvement. Consumers like to buy an improved
product or service. Japanese businessmen are successful due to their innovations. If someone can
introduce better way of public service, it is certainly good for the people, especially for the poor
masses obviously favorable to the economy. Hence, the importance of the entrepreneurship for
ordinary people, businessmen and the government. Professor Hirsh said:
“Entrepreneurship is more than a word. It is a mission. We must perceive opportunities
inherent in change; we must create a desire for pursuing the opportunities that arise; and we
must create an environment in which success is possible and the consequences of failure are
tolerable”
ECONOMIC DEVELOPMENT AND GROWTH EXPLAINED
Development is a process while growth is a product. So, growth is the result of
development. In agriculture, the application of fertilizers, insecticides, labor, machines, and other
productive inputs represents a process or development. The results or outputs are crops like rice,
corn or sugar. In simple terms, development is input while growth is the output.
In economics, development does not only include economic factors like money, machines
and materials, but also other factors which are non-economic, such as culture, values, religion,
government and education. These mixtures of economic and non-economic factors which are
applied in the creation of goods and services constitute economic development. Clearly, it is not
effective to solve economic problems with economic solutions alone. It is also caused by
unfavorable culture or social values.
In poor countries which re usually dominated illiteracy, unjust distribution of wealth,
income and power, the concept of economic development has a more relevant definition. Under
this socio-economic context, economic development refers to a progressive process of improving
human conditions by eliminating or reducing poverty, unemployment, disease, illiteracy,
injustice and exploitation.
What are needed in poor countries are more economic activities through the operations of
factories, agricultural production, trade and service industries. In concrete terms, such economic
activities multiply jobs and incomes. However, social injustice must prevail. There should be a
fair distribution of wealth, income and power. Unfortunately, it is almost impossible to
redistribute wealth in poor countries. Their land reform programs are failure, because there was
no political will on the part of top government officials who obviously prefer to sustain the
existing socio-economic order.
In view of the very limited access to economic opportunities by the masses, a better
option is to develop an entrepreneurial class. With the strong support of the government md the
private sector, small-scale enterprises can flourish in the countryside. Such community-based
projects can generate jobs and incomes for the poor. This is all what they need to uplift their
social and economic conditions.
DEVELOPMENT AND GROWTH THEORIES
1. Laissez Faire Theory. These are French introduced by the Physiocrats to mean economic
freedom. This theory explains that the government should not interfere in economic
activities. It is absolutely free-enterprise economy. The role of the government is only
confined in education, justice and public works. It is argued that with economic
 freedoms, business can be more efficient through free competition. And this benefits the
economy.
2. Keynesian Theory. The government should play the key role in economic development,
particularly in less developed countries, or those with depressed economic conditions.
This theory contends that during economic depression the government should put up
massive public works like, construction of roads and bridges, and other labor-intensive
projects. These generate large-scale employment resulting to more incomes for more
people. Such situation increases the demand for goods and services. This means more
production, and this enhances economic development.
3. Ricardian Theory. This the theory of David Ricardo, and English classical economist. He
believes that the key factor in economic growth is land. This means that agriculture play a
major role in economic development. Such theory was earlier supported by the
Physiocrats. They claim that all wealth comes from the land. People cannot live without
food and natural resources. Hence the importance of land or agriculture.
4. Harrod-Domar Theory. This was conceptualized by sir Harrod of England and Professor
Domar of the United States. The key factor in economic growth is physical capital like
machines, the theory claims that more products can be produced through the use of
machines. In other words, production is far more efficient with the use of machines. This
theory appears to explain the industrial success of rich countries.
5. Kaldor Theory. Nicholas Kador maintains that the key factor is technology. This theory
explains that the application of modern technology in the production of goods and
services has been responsible for the economic success of the highly developed countries
like the United States. Japan, Great Britain, France, Italy, and Germany. In the case of
Japan, it can raise vegetables without the use of soil. Only fertilized water is used. Such
technology has been exported to the Middle East where agricultural lands are scarce.
6. Innovation Theory. This was developed by Joseph Schumpeter. He stresses the role of
innovators or entrepreneurs in economic development. Schumpeter says that it is the
innovator who has the courage and imagination to handle old systems, and be able to
transform theory into reality. It is the innovator who introduces change for the better.
7. Non-economic Theory. These are several other theories which are non-economic in
nature. Their key factors are political stability, efficient public administration, open
society, and positive cultural values. Max Weber, author of Protestants Ethics of the
Spirit of Capitalism, claims that Protestant countries are more prosperous than Catholic
countries and others. He says that thrift, industry and an entrepreneurial spirit have
contributed much to the economic growth of protestant countries.
Not a few economist argue that corruption in the government is the No.1 enemy
of economic development in Asia. Others say that inefficient public administration has
resulted to wasteful and improper use of resources. Likewise, in a close society, there is
no economic and social mobility. The poor have no right to improve their miserable
conditions. All these unfavorable factors clearly drive away economic growth.
In the case of highly developed countries, their values and institutions are
conducive to economic growth. Their governments are efficient and honest. Their values
such ad punctuality, industry, and dedication are effective instruments of development.
 Above all, they have many good entrepreneurs who have created employment and wealth
for their economies.
THE IMPORTANCE OF ENTREPRENEURSHIP
Statistics in both rich and poor countries show that small enterprises are leading in the
generation jobs and wealth. In fact, the small business sector saved the United States economy
from economic stagnation or depression during 1960’s and 1970’s. Professor Peter Drucker,
America’s foremost management specialist, stated that the entrepreneurial economy had been the
most important development in American economy. It created 335 million jobs at a time when
traditional big business and the government had lost 5 million jobs in 1970’s and early 1980’s.
In the Philippines, most of our economic activities fall under the micro and small
business categories. There are many retailers, vendors, and other small sole proprietors. As long
as they perform some risk-taking ventures, innovations, and creative undertaking, they are
considered entrepreneurs.
Because of the proven importance of entrepreneurship, subjects in entrepreneurship have
been included in the curriculum of high schools, colleges, and universities in many countries.
Harvard President Derek Bok said:
“The Harvard Business School is beginning to see that its role is not just training general
managers, but also training and providing preparation for people to start their own business. . . It
is a kind of a new freedom to go out and take some risks and run your own show. . . It’s a kind of
a new frontier for people of some boldness and creativity.
CONTRIBUTIONS OF ENTREPRENEURS
1. Develop new markets. Under the modern concept of marketing, markets are people
who are willing and able to satisfy their needs. In economics, this is called effective
demand. Entrepreneurs are resourceful and creative. They can create customers or
buyers. This makes entrepreneurs different from ordinary businessmen who only
perform traditional functions of management like planning organization and
coordination.
2. Discover new source of materials. Entrepreneurs are never satisfied with traditional or
existing sources of materials. Due to their innovative nature, they persist on
discovering new sources of materials to improve their enterprises. In business, those
who can develop new sources of materials enjoy a comparative advantage in terms of
supply, cost and quality. In Japan, due to the extreme scarcity of local raw materials,
entrepreneurs give top priority to research and development in order to discover
alternative materials.
3. Mobilize capital resources. Entrepreneurs are the organizers and coordinators of the
major factors of production, such as land, labor and capital. They properly mix these
this factors of production to create goods and services. Capital resources, from a
layman’s view refer to money. However, in economics, capital resources represent
machines, buildings, and other physical productive resources. Entrepreneurs have
 initiative and self- confidence in accumulating and mobilizing capital resources for
new business or business expansion.
4. Introduce new technologies, new industries and new products. Aside from being
innovators and reasonable risk-takers, entrepreneurs take advantage of business
opportunities, and transform these into profits. So, they introduce something new or
something different. Such entrepreneurial spirit has greatly contributed to the
modernization of our economy. Every year, there are new technologies and new
products. All of these are intended to satisfy human needs in a more convenient and
pleasant way.
5. Create employment. The biggest employer is the private business sectors. Millions of
jobs are provided by factories, service industries, agricultural enterprises, and the
numerous small-scale business. For instance, the super department stores like SM,
Uniwide, Robinson and others employ of thousands of workers. Likewise, giant
corporations like SMC, Ayala and Soriano group of companies are great job creators.
Such massive employment has multiplier and accelerator effects on the whole
company. More jobs mean more incomes. This increases demand for goods and
services. This stimulates production. Again, more production requires more
employment.
PARTICIPATION OF WOMEN
As stated earlier, human resources are the most important productive resources.
Unfortunately in poor countries or underdeveloped economies, most of the women
are engaged in unproductive activities. It is true that in a rural areas, women help in
the farms. But their economic contributions are insignificant. Even without their help,
farm production remains the same. This simply means there is no need for them to
work in the farms their labor is just a surplus one. In economics, such situation is
referred to as disguised unemployment.
Women constitute a big portion of the total population. Their exclusion from the
productive enterprises is a great economic loss. They should be the producers and not
merely consumers. The business potential of women have gained the attention of
some United Nations agencies and other non-governmental organizations (NGO’s).
As a result, there are now programs\projects for women, especially in the rural areas
of poor countries, which are envisioned to train women for business enterprises and
livelihood endeavors.
Bangladesh, formerly East Pakistan, is very poor country. Women comprise about
49 percent of the population. They were bypassed by the development programs of
their country. Most of the women are unschooled, socially depressed and have
conservative attitudes.
Having recognized the vast economic possibilities of including women in
development scheme of the country, the government of Bangladesh finally set up
entrepreneurial projects for poor natural women. Skills trainings were conducted for
micro handicrafts or cottage industry enterprises. The program of the government is
planned to encourage rural women to be entrepreneurs. Credit facilities have been
extended to entrepreneurial projects.
 Women’s participation in socio-economic development as entrepreneurs has
tremendous impact in terms of additional jobs incomes, goods and services. This can
speed up the economic development of Bangladesh. If all poor urban and rural
communities have small enterprises run by women, poverty will be greatly reduced.
According to Schumacher, the legendary author of Small Is Beautiful, the presence of
one small factory in every village heralds coming of prosperity.
FILIPINO ENTREPRENEURSHIP
One of the top programs of the government is the development and promotion of Filipino
entrepreneurship. There are many government agencies and private organizations which extend
financial and technical assistance to micro and small-scale enterprises. Many are not aware of
such assistance, especially the poor and unschooled rural folks. Those who know are not
enthusiastic about the program due to the numerous conditions and paper works, not to mention
red tape. For the same reason, the rural poor prefer to depend on usurers for their credit needs,
rather than borrow from lending institutions.
Our economic resources are mostly in the hands of few local elite multinational
corporations. A great majority of the people are workers, laborers, and office clerks. They only
get salaries which are not even enough to support their basic needs. Such unjust distribution of
income can be corrected by giving people easy access to business activities. Through business,
even the poor are likely to improve their social and economic conditions.
Claro M. Recto, considered the father of modern father of nationalism, said that we need
economic nationalism as the control of economic resources of the country by its own people, and
their use such resources of their own benefit and enjoyment. Recto also claimed that the cause of
our poverty is that we allow foreigners to dominate our economy. He blamed the U.S.
educational system –
“The educational system fired our people’s desire for political liberty, but it
purposely neglected to developed economic nationalism among the citizens, and instead
insidiously inculcated in them ideas of economic dependence on America”.
At present, our educational system should stress patriotism and economic nationalism. Although
this is mentioned in our Constitution, it appears that colonial mentality is still infused in the
minds and actions of many Filipinos. Such attitude is clearly counter-productive as far as the
Philippine economy is concerned. Pride and preference for foreign goods, especially American
products, are still strong. Peoples in other countries patronize their own products. And this is
good for their economy.
Our educational system should also emphasize in its curriculum the importance of local
entrepreneurship. By and large, Filipinos are employee-oriented, especially for white-collar jobs.
We are not risk-takers. Many of us are afraid to put up our own business because of the
possibility of bankruptcy. Such lack of entrepreneurial spirit, particularly among professionals,
has encouraged foreigners to take advantage of our cheap labor and rich natural resources. They
are the ones who are rich now. And they are our masters in our own country.