CONTEMPORARY ECONOMIC ISSUES FACING

THE FILIPINO ENTREPRENEUR

WHAT IS ENTREPRENEURSHIP?

Entrepreneurship refers to the talent that some

people have for organizing the resources of land,
labor, and capital to produce goods, seek new
business opportunities, and develop new ways of
doing things.
WHAT IS ENTREPRENEUR?

Entrepreneur:
 Is an individual who attempts to organize his own business rather than
working as an employee.
 He assumes all the risk and return on his investment.
 He decides on what, how, and how much of a good or service will be
produced.
 He also monitors and controls all the activities of his business.
 ECONOMIC ISSUES FACING THE FILIPINO
ENTREPRENEUR

1. Investment and interest rate

Investment
Is a process of building up capital stock, or the expenditure
which determines the income and production in the
economy.
 INVESTMENT IS CLASSIFIED INTO TWO TYPES:

1. Fixed Income Investment

Fixed income investment (FIIs) are investments that provide
fixed periodic sources of income over a certain period of time
2. Variable Income Investment
Are forms of investment that are suitable for risk tolerant
individuals
Entrepreneurs who are new in business or not yet
earning income from their operations, getting
financial assistance from the government or
obtaining loan from the private banks in the
country is very difficult.
Interest rate
Represents the cost of using or borrowing money
In economics, interest is used in two ways:
1. It can be the price of the credit, which is often referred to as
loanable funds.
2. It can also be the return that the capital earns as an input in the
production process.
2. Rentals
 Fixed cost include rent, machinery and equipment.
Rent
It is the price paid for the use of land and other natural
resources or factors of production that is in fixed supply
Entrepreneurs doing business in shopping malls
need to pay higher rental rates that after a year or
two they decides to transfer to other place, offering
lower rental fee, instead of losing money for the
rental fees.
 FOUR MARKET STRUCTURES
Characteristics Perfect Competition Pure Monopoly Monopolistics Oligopoly
Competition

Number of firms Very large firms One Large firm Few

Conditions of Freedom of entry/exit Blocked Relatively easy Difficult

entry/exit entry/existence of
entry depends on
barriers to entry
Type of Product Homogeneous/ Unique product/no Similar but not Homogeneous/
identical product close substitutes identical products differentiated
products
Control over product Price taker Price maker Limited amount of Firm has the power to
price control influence market
prices
Non-price No competition on May or may not Great emphasis on For identical
Competition the basis of product engage in extensive advertising and product- none
quality, advertising advertising and sales promotion For differentiated
or sales promotion sales promotion product-more
emphasis on
advertising and
promotion
Products Farm products Water and electricity Clothing, Shoe, Homogeneous
Restaurant - steel, cement,
aluminum, chemicals
Differentiated
products
- oil, car, household
appliances, soft
drinks, liquor, wines,
public utility vehicles
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 Maria Nicole Nojara
 Hannavie P. Eresmas
 Diane C. Mapula