Contemporary Economic Issues Facing Filipino Entrepreneurs

Real Estate and Investments

• Real estate refers to the land and any permanent structures attached to it, including natural or man-made improvements.
• Real estate is a form of real property.
• Indirect investments include savings accounts, bonds, and stocks.
• Bonds are used by governments or companies to raise money by borrowing from investors.
• Stocks give stockholders a share of ownership in a company.

Kinds of Indirect Investments

• Mutual Funds are companies that pool money from many investors and invest in securities such as stocks, bonds, and short-term debt.
• Life Insurance is a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period.

Rent and Unemployment

• Rent is a payment of a factor of production in excess of its opportunity cost.
• There are four types of rent: Inframarginal Rent, Pure Economic Rent, Quasi Rent, and Monopoly Rent.
• Unemployment is a situation where a person actively searches for employment but is unable to find work.
• Types of unemployment include Fictional Unemployment, Cyclical Unemployment, and Structural Unemployment.

Entrepreneurship

• Entrepreneurship refers to the process of identifying, creating, and pursuing opportunities to develop and manage innovative business ventures.
• An entrepreneur is a person who sets up a business or businesses, taking on financial risks in the hope of profit.
• An entrepreneur is commonly seen as a business leader and innovator of new ideas and business processes.

Characteristics of Entrepreneurs and Employees

• Employees are people employed for wages or salary, especially at non-executive level.
• Inventors are people who invent a particular process or device or who invent as an occupation.
• Characteristics of a successful entrepreneur include being independent, self-confident, determined, and persevering.
• Successful entrepreneurs are goal-oriented, know what they want, and are able to focus on achieving it.

Entrepreneurial Business

• Types of entrepreneurial business include Manufacturing and Wholesaling.
• Advantages of entrepreneurship include being one's own boss, choosing a business of interest, being creative, and making lots of money.
• Disadvantages of entrepreneurship include risk, uncertain and irregular incomes, working long hours, and making all decisions alone.

Entrepreneurial Process

• The four entrepreneurial process stages are:
  • Identification and evaluation of the opportunity
  • Development of the business plan
  • Determination of the required resources
  • Management of the resulting enterprise

Direct Investment

• Direct investment refers to business investments, such as spending by private businesses and nonprofits on physical capital (long-lasting assets used to produce goods and services).