UNIT 1 – ECONOMICS & REAL-WORLD CHALLENGES

APPLIED
ECONOMICS
MODULE 5: Contemporary Economic
Issues Facing the Filipino
Entrepreneur
 What is
Entrepreneurship
 Innovation
Strategies of
Entrepreneur
Disruptive Innovation
Defined as a process that, as
the name implies, “disrupts”
or changes the structure of an
existing market.
Governance and Support
The Department of Trade
and Industry (DTI)
governs entrepreneurs
and business in the
Philippines.
 Types of Business
Structures
•Sole Proprietorship
•Partnership
•Corporation
Sole Proprietorship
Refers to a business having
a single owner.
 Partnership
Refers to a business
having more than one
owner.
 Corporations
Refers to a business type
where the owner and the
business are considered as
separate entities.
New Business Registration
A sole proprietorship business
registration has eight steps based on
the published procedure on the
national government’s Web site
while a corporation on average
takes 15 steps to register based on
the Doing Business 2015 study if
World Bank.
1 DTI Register business name.

2 Barangay Secure barangay clearance.

3 Municipality Get a business permit.

Apply for tax identification

number (TIN); secure authority
4 BIR
to print receipts; have ledgers
and invoices stamped.

Apply as self-employed
5 SSS
owne.
Issues and Challenges
Facing the Filipino
Entrepreneur
In this section, you will learn
some common issues and
challenges faced by Filipino
entrepreneurs.
Investments, Interest, and
Financing
Interest is the cost of
borrowing. Consumers
typically borrow from banks
to finance spending and
investments such as real
estate, cars, or other
expensive purchases.
 Rent
For business that require a
physical store, rent is one of
the highest costs that drive
down operating income.
 Minimum Wage
Operating expense is wages.
Higher wage rates translate to
lower profit because the
companies have to pay workers
more.
 Taxes
Higher income tax means less
disposable income available
for the business.