The Philippine Economy; How Does An Economy Grow? PDF

UNIVERSITY OF CEBU - METC Alumnos, Mambaling, Cebu City ENTREPRENEURSHIP 100 THE PHILIPPINE ECONOMY: HOW DOES AN ECONOMY GROW MRS. MA. VENUS A. ALBANDIAINSTRUCTOR  LEARNING OBJECTIVES Orient on the status of Philippine Economy Identify the factors that...

UNIVERSITY OF CEBU - METC Alumnos, Mambaling, Cebu City ENTREPRENEURSHIP 100 THE PHILIPPINE ECONOMY: HOW DOES AN ECONOMY GROW MRS. MA. VENUS A. ALBANDIAINSTRUCTOR  LEARNING OBJECTIVES Orient on the status of Philippine Economy Identify the factors that greatly affects the business establishments in our country Explain how a specific economy grows Discuss how entrepreneurship could help improve the quality of life What is the role of Entrepreneurs in the country's economic growth?  THE PHILIPPINE ECONOMY: How does an Economy Grow? THE PHILIPPINE ECONOMY The national economy is composed of business enterprises, household, and the government.  THE PHILIPPINE ECONOMY: How does an Economy Grow? THE PHILIPPINE ECONOMY There are economic freedoms, like free competition, free choice of investments, and the prices, which are determined by the interaction between demand and supply.  THE PHILIPPINE ECONOMY: How does an Economy Grow? THE PHILIPPINE ECONOMY In economic development, knowledge, skills, values, and the quality of people are the main determinants of economic growth.  THE PHILIPPINE ECONOMY: How does an Economy Grow? THE PHILIPPINE ECONOMY The Philippines was a slave of three colonial masters: the United States, Japan and Spain. Nevertheless, the Chinese dominated the retail trade even before the Spanish time. The Spanish rule introduced the tabacco monopoly and galleon trade for the benefits of top-ranking Spanish citizens. Similarly, the Americans exploited our agricultural economy. Japan completely ruined our economy.  THE PHILIPPINE ECONOMY: How does an Economy Grow? THE PHILIPPINE ECONOMY The Philippine Government got its political independence in 1946, but not economic independence from US. The import control program of President Carlos Garcia gave a breathing space for Filipino entrepreneurs. However, this did not last because the US has its own way of dominating the Philippine economy.  THE PHILIPPINE ECONOMY: How does an Economy Grow? THE PHILIPPINE ECONOMY Under the Martial rule, the friends of the Dictator controlled Philippine business. Democracy was restored finally upon the assumption of Corazon Aquino as president. Under her administration, the engine of economic development has been assigned to the private business sector. The Ramos government has sustained most of the good programs of the Aquino administration.  THE PHILIPPINE ECONOMY: How does an Economy Grow? THE PHILIPPINE ECONOMY The national government, in its effort to alleviate poverty, has been promoting the growth of entrepreneurhip. It has several financial and technical assitance programs for the poor who are interested in putting up micro businesses. Even some NGOs are actively involved in entrepreneurial projects for the poor. THE ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT  ADD YOUR TITLE HERE Role of Entrepreneurship in Economic Development: Entrepreneurship offers an economical and faster method of distributing goods and services that accelerates economic develment.  ADD YOUR TITLE HERE Role of Entrepreneurship in Economic Development: Entrepreneurship is capable of generating more jobs, income, goods ands services.  ADD YOUR TITLE HERE Role of Entrepreneurship in Economic Development: Entrepreneurship improves the quality of life.  ADD YOUR TITLE HERE Role of Entrepreneurship in Economic Development: Entrepreneurship contributes to more equitable distribution of income, and therefore, eases social unrest.  ADD YOUR TITLE HERE Role of Entrepreneurship in Economic Development: Entrepreneurship utilizes and mobilizes resources to make the country productive.  ADD YOUR TITLE HERE Role of Entrepreneurship in Economic Development: Entrepreneurship brings social benefits through the government.  ADD YOUR TITLE HERE Role of Entrepreneurship in Economic Development: Entrepreneur takes the risks and invests his resources to make something new or better is engages in entrepreneurship. This applies not only to business, but also to social services. Role of Entrepreneurship in Economic Development: ADD YOUR TITLE HERE Economic development is a process, while economic growth is a product of economic development. Both economic and non-economic factors constitute the determinants of economic development. In less developed countries economic delopment refers to the progressive process of iproving human conditions by reducing or eliminating poverty, disease, injustice, illiteracy, and exploitation.  ADD YOUR TITLE HERE Role of Entrepreneurship in Economic Development: Development and Growth Theories: a. Laissez-Faire Theory - the government should not interfere in economic activities b. Keynessian Theory - the government should play the key role in economic development c. Ricardian Theory - the theory of David Ricardo focusing on agriculture playing the major role in economic development  ADD YOUR TITLE HERE Role of Entrepreneurship in Economic Development: d. Harrod-Domar Theory - by Sir Harrod of England and Prof Domar of U.S. claims that more products can be produced through the use of machines. e. Kaldor Theory - by Nichols Kaldor, maintains that the key factor is technology which explains that the modern technology in production of goods and services has been responsible for the economic success of highly developed countries f. Innovation Theory - by Joseph Schumpeter, stresses the role of innovators or entrepreneurs in economic development.  ADD YOUR TITLE HERE Role of Entrepreneurship in Economic Development: The contributions of entrepreneurship are: 1) development of new markets 2) discovery of new sources of materials 3) mobilization of capital resources 4) introduction of new technologies 5) creation of employment  How Does An Economy Grow? ECONOMIC EXPLANATIONS OF ECONOMIC DEVELOPMENT: 1) Technology improvements and division of labor lead to development. 2) Population changes affect development. 3) Entrepreneurship is an important factor in development. THANK YOU!