EFFECTS OF

CONTEMPORARY
Economic Issues
Affecting
Filipino
Entrepreneur
MANILYN L.
ENTREPRENEURSHIP
Entrepreneurship is the ability to know
what products and services are needed by
people and to be able to provide these
things at the right time, at the right place
and to the right people and at the right
price.
 ENTREPRENEUR
An entrepreneur organizes his own business,
assumes all the risk and returns on his investment,
decides on what, how and how much of a food or
service will be provided and monitors and controls
all the activities of the business.
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CONTEMPORARY ISSUES
AFFECTING FILIPINO
ENTREPRENEURS
1. INVESTMENT AND
INTEREST RATE
Entrepreneur’s shoulder higher rates of interest from the
loan they made from a financial institution.

Investment
- It is an asset or item acquired with the goal of generating income.
Investing includes the purchase of new plants, new equipment, new
homes and net increases in inventories.
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1. INVESTMENT AND
INTEREST RATE
Long Term Investment
- Long term investments are assets that a company intends to
hold for more than a year.

Short Term Investment

- These are investments that must be readily be convertible to
cash

Appl i ed Ec onomi cs
1. INVESTMENT AND
INTEREST RATE
Interest Rates

- It is the amount a lender charges for the use of assets expresses

as a percentage of the principal.
- It is usually noted on an annual basis known as the annual
percentage rate (APR)

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 2. RENTALS
Starting entrepreneurs usually do not have their
own space to start their business. Some rent spaces
on a mall or stalls to start the operation of the
business.

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 3. MINIMUM WAGE
Entrepreneurs provide job opportunities that is why they
have employees. Entrepreneurs are called employer. As
an employer, they are forced to implement the wage
order to all minimum wage earners regardless of their
title, ranks, etc. The Philippines has this law called
“Minimum Wage Law”. This law establishes a minimum
amount that an employer can pay a worker for one day
of labor.

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 4.TAXES
A tax is mandatory financial charge or some other type of levy imposed upon
a taxpayer by a governmental organization in order to fund various
expenditures.

a. The benefits received (Benefits-Received Tax Principle)

- This principle relates taxes to the benefits taxpayers receive from a public
good.
b. The ability to pay (Ability to Pay Tax Principle)
- This approach to taxes relates that those with a greater ability to pay are
taxed more.

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 4.TAXES
There are four main types of national internal revenue taxes:
Corporate Income Taxes
- The regular corporate income tax (RCIT) is 30% on net taxable income. There is a
minimum corporate income tax (MCIT) equivalent to 2% of gross income, which
applies beginning on the fourth year of commercial operation.

Withholding Taxes
- Most income is subject to withholding of taxes. If the payor is classified as a
top-20,000 corporation or a top-5000 individual engaged in business, it is
required to withhold on all payments for the purchase of goods (1%) and
services (2%).
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 4.TAXES
There are four main types of national internal revenue taxes:
Indirect Taxes
- A 12% VAT is imposed on the gross selling price on the sale, barter or exchange of
goods and properties, as well as on the gross receipts from the sale of services within
the Philippines, including the lease of properties.

Excise Taxes
- In addition to VAT, excise taxes are imposed on the following: alcohol,
tobacco, petroleum products, automobiles, mineral products, and non-essential
goods such as jewelry and precious stones, perfumes, yachts and other sport
vessels.
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 4.TAXES
There are four main types of national internal revenue taxes:

Documentary Stamp Tax

- A documentary stamp tax (DST) is required for certain documents,
transactions or instruments specified in the tax code when the obligation
or right arises from Philippine sources or when the property is situated
in the Philippines.

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EIGHT THINGS THAT HINDER THE
SUCCESS OF FILIPINO
ENTREPRENEURS
 1. RED-TAPE
Red tape can be defined as organisational rules,
regulations, and procedures that perform no significant
social or administrative function.

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 2. POOR PUBLIC UTILITY
SERVICES
Entrepreneurs in the Philippines, especially in the
provinces, are continuously annoyed by brownouts and
slow internet connection. These poor services do not
only destroy the efficiency of their business operation
but also cause them a lot of stress.

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 3. LACK OF FINANCIAL
SUPPORT

For startup owners who are not yet earning operating

income, getting financial aid from the government or
obtaining a loan from banks in the Philippines seems to
be impossible.

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 4. LACK OF MARKETING
SKILLS

Entrepreneurs need to sell, build good customer

relationships, earn lasting profits, and continuously
grow their business. But many aspiring entrepreneurs in
the Philippines don’t spend enough on marketing
campaigns.

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 5. INEFFECTIVE MANAGEMENT

Many entrepreneurs have passion for business, but don’t

have a passion for management and leadership.
Managing and organizing things inside a business is a
tough job. Leading people is an even tougher job.

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 6. INABILITY TO INNOVATE

Technology evolves rapidly, so as the people. New

business processes and marketing methods emerge.
Without adapting to these new strategies and changes,
entrepreneurs cannot become competitive.

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 7. LACK OF CUSTOMER CARE

Businesses need to consistently satisfy and make their

customers happy. Without giving satisfaction to
customers, a business cannot survive in a long run.

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 8. LACK OF SELF-GROWTH

They lack self-control to concentrate on their core goals.

They lack self-leadership to lead others. They also lack
patience, compassion and some love to always make
their customers smile.

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THANK YOU

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