10 Questions
What is the primary advantage of entrepreneurship in addressing poverty?
Creating wealth and job opportunities
What is the role of an entrepreneur in the economy?
To anticipate needs and bring new ideas to market
What is the impact of high interest rates on businesses?
Decreased borrowing and reduced investment
What is the primary purpose of interest rates?
To compensate lenders for the use of their money
What is the risk associated with lending?
Credit risk
What is the role of government financial assistance in entrepreneurship?
To provide subsidies and grants to entrepreneurs
What is the reward for successful entrepreneurs?
Profits, fame, and continued growth opportunities
What is the characteristic of an entrepreneur?
Risk-taker and innovator
What is the primary goal of entrepreneurship?
To take calculated risks and create social value
What is the impact of government support on entrepreneurship?
Increases access to small business financing
Study Notes
Rentals and Monthly Fees
- Security deposit, advertising, Construction/renovation deposit, power/water meter deposit, and performance cash bond are other monthly fees entrepreneurs may encounter.
Minimum Wage
- The minimum wage sets a universal floor for the lowest rate an employer can legally pay an employee.
- Some countries have different regional, industrial, or occupational minimum wage rates.
- Certain types of workers can be excluded from the minimum wage, such as agricultural and domestic labor, the self-employed, and family enterprise workers.
- Entrepreneurs as employers must implement the minimum wage order to all minimum wage earners, regardless of position, job title, and status of employment.
Taxes
- National internal revenue taxes are imposed and collected pursuant to the National Internal Revenue Code, the Tariff and Customs Code, and several special laws.
- There are four main types of national internal revenue taxes: income, indirect (value-added and percentage taxes), all of which are administered by the Bureau of Internal Revenue (BIR).
- Local governments have some autonomy to impose taxes on business and ownership of real property.
- Entrepreneurs are obliged to pay the following taxes:
- Percentage Tax: imposed on small businesses with gross annual sales and receipts that do not exceed Php 1,919,500.00.
- Value Added Tax (VAT): a form of sales tax levied on the sale, barter, exchange or lease of goods or properties and services within the Philippines.
- Income Tax: a government levy imposed on individuals or entities that varies with the income or profits of the taxpayers.
Entrepreneurship
- Entrepreneurship refers to the talent of organizing resources to produce goods, seek new business opportunities, and develop new ways of doing things.
- Entrepreneurship is a way of giving individual access to better lives, creating wealth, more job opportunities, and social progress.
- An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards.
- Entrepreneurs play a key role in any economy, using skills and initiative to anticipate needs and bring new ideas to market.
Economic Issues
- Investment and interest rates affect businesses, with interest rates based on the amount of money a lender lends to a borrower.
- Entrepreneurs may encounter challenges related to investment and interest rates.
Test your knowledge on entrepreneurship and its role in addressing poverty and other economic issues in the Philippines. Learn about the definition and importance of entrepreneurship in improving lives.
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