APPLIED ECONOMICS
LET’S HAVE A RECAP
What
are the four types of
market structure? Give
examples on each.
ACTIVITY TIME
Read and Reflect
The global COVID-19 pandemic has affected
millions of people. It has become a big sanitary
and health crisis. The severe effects of this
pandemic have caused the strange downturn of
the global economy. Entrepreneurs are one of
those people mostly affected by this global
pandemic. Most of the income generating
establishments or institutions have shut their
operations down.
FOLLOW-UP QUESTIONS
Observe the local businesses in our
country as seen in the news,
1. Are there some whose operation
ceases because of the pandemic?
2. What are some of the reasons why
their operation stopped?
FOLLOW-UP QUESTIONS
Observethe local businesses in our
country as seen in the news.
3. How did these Filipino entrepreneurs
respond to this global crisis?
4. What can you propose to help
entrepreneurs affected by the global
pandemic?
INTRODUCTION
Business, as they say, is like a
gamble. It takes a brave heart to
invest their resources with no
guarantee that there will be a return
of investments. Today, let us discuss
the contemporary issues affecting the
Filipino entrepreneurs.
WHAT IS
ENTREPRENEUR?
ENTREPRENEUR
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. The person who does
entrepreneurship is called
“entrepreneur”.
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.
ENTREPRENEUR
As an entrepreneur, it is very important
to identify the different contemporary
issues for you understand the current
situation in the market that might affect
your business operation and to be
equipped with possible solutions to
prevent problems that will be
encountered by the business.
WHAT ARE THE
CONTEMPORARY ISSUES
AFFECTING FILIPINO
ENTREPRENEUR?
CONTEMPORARY ISSUES
Marked by characteristics of the
present period.
It is happening, existing, living, or
coming into being during the same
period of time.
CONTEMPORARY ISSUES
There are different contemporary
issues in the Philippines affecting
Filipino entrepreneurs. But these are
most notable issues that are usually
encountered by most business
entrepreneurs.
CONTEMPORARY ISSUES AFFECTING
FILIPINO ENTREPRENEURS
Investment and interest rate
Rentals
Minimum Wage
Taxes
INVESTMENT
When an entrepreneur starts, the very first issue
that they encounter is how they will get their
capital. Some entrepreneurs really do not have
the capital in the beginning, some may have
(out from their savings), but acquiring capital
usually comes in a form of loan in a bank or any
other financial institutions or some get financial
assistance from the government. Entrepreneur’s
shoulder higher rates of interest from the loan
they made from a financial institution.
INVESTMENT
Investment -It is an asset or item
acquired with the goal of generating
income. Investing includes the purchase
of new tools, new equipment, or new
homes.
There are two types of investments:
1. Long-Term Investment
2. Short Term Investment
INVESTMENT
Long Term Investment
-These are assets of the company which
include stocks, bonds and real estate.
Long term investments are assets that a
company intends to hold for more than a
year.
INVESTMENT
Short Term Investment
-These are investments that must be
readily be convertible to cash
INTEREST RATE
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)
The assets borrowed could include cash,
consumer, goods, or large assets such as a
vehicle or building.
HOW DOES IT AFFECT
THE ENTREPRENEUR?
INVESTMENT AND INTEREST RATE
When the entrepreneur has no enough
investment, he will resort to borrowings
or borrow from financial institutions like
banks. The borrowings bear interest
rates. This is the amount of interest due
per period, as a proportion of the
amount lent, deposited or borrowed.
RENTALS
It is the action of renting something.
It is an amount paid or received as rent
HOW DOES IT AFFECT
THE ENTREPRENEUR?
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. Rentals has become
an issue to starting entrepreneurs because
doing a business does not guarantee you a very
big sale right away, so if you don’t make a sale
and you still have to pay a rent, it will really
cause problem.
APPLIED ECONOMICS
MINIMUM WAGE
It refers to the lowest wage permitted by law
below which if paid by employer will subject
him to penalty from the government.
Minimum wage rates are determined by factors
such as poverty threshold. It is the minimum
income/expenditure required for a
family/individual to meet the basic food and
non-food requirement
PH minimum wage = P467.95
HOW DOES IT AFFECT
THE ENTREPRENEUR?
MINIMUM WAGE
Entrepreneursprovide 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.
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.
Failure to pay, along with evasion of or
resistance to taxation, is punishable by
law. Taxes are considered inflows for the
government and outflows for firms.
TAXES
There are four main types of national
internal revenue taxes: income, indirect
(value-added and percentage taxes),
excise, and documentary stamp taxes,
all of which are administered by the
Bureau of Internal Revenue (BIR).
TAXES
INCOME TAXES
-The term “income tax” refers to a type of
tax that governments impose on income
generated by businesses and individuals
within their jurisdiction. By law, taxpayers
must file an income tax return annually to
determine their tax obligations. Income taxes
are a source of revenue for governments.
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.
TAXES
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.
TAXES
DOCUMENTARY STAMP TAXES
-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.
HOW DOES IT AFFECT
THE ENTREPRENEUR?
TAXES
END OF
DISCUSSION
APPLIED ECONOMICS
LET’S HAVE A RECAP
What are the contemporary issues
affecting the Filipino entrepreneurs
today? Cite one then explain
INTRODUCTION
Entrepreneurship is cool, fulfilling and
challenging. It is, however, difficult to succeed.
In the Philippines, aspiring Filipino
entrepreneurs confront even greater obstacles
than their counterparts from the other parts of
the world. There are numerous external and
internal constraints that hinder our country’s
entrepreneurs on their path to success. The
following are only a few examples
EIGHT THINGS THAT HINDER
THE SUCCESS OF FILIPINO
ENTREPRENEURS
SUCCESS
Red Tape
Poor Public Utility Services
Lac of Financial Support
Lack of Marketing Skills
Ineffective Management
Inability to Innovate
Lack of Customer Care
Lac of Self Growth
RED TAPE
Itis something that takes much longer
than it should and involves more
procedures, forms, or rules than make
sense. Example applying for a passport or
a driver's license is well known for the
amount of red tape involved.
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.
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. To get
a loan, you must have a collateral or show
some years of operating income
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.
They rely too much on their product while
forgetting the other elements of marketing,
such as place, price, people and promotion.
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.
Without the ability to motivate employees and
build stronger teams in their companies,
entrepreneurs cannot succeed and grow their
business.
INABILITY TO INNOVATE
Technology evolves rapidly, so as the
people. New business processes and
marketing methods emerge. For example,
online channels like search engines and
social media are now vital for business
promotion. Without adapting to these new
strategies and changes, entrepreneurs
cannot become competitive.
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.
Many entrepreneurs focus on earning
money rather than earning loyal
customers. Consequently, their profit
doesn’t last for long.
LACK OF SELF-GROWTH
Finally,what hinders the success of some Filipino
entrepreneurs is the lack of personal
development. 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. Without good habits
and personal qualities, an entrepreneur cannot
advance. Without self-growth, an entrepreneur
cannot also achieve business growth.
END OF
DISCUSSION
APPLIED ECONOMICS
ESSAY WRITING
If you are an owner or CEO of a business
firm, how will you give solution to the
previously identified contemporary economic
issues?
On a crosswise paper, answer the given
question. Choose only ONE contemporary
issue. Explain it in at least TEN sentences.
You may use English, Tagalog or Taglish.
ESSAY WRITING
If you are an owner or CEO of a business
firm, how will you give solution to the
previously identified contemporary economic
issues?
The rubrics below will be used to identify
your score for this performance.
ESSAY WRITING
