SSP Lecture 4 (The Philippine Environment for Entrepreneurship)

Understanding the Business Environment

- Essential for business entrepreneurs - Operates a very dynamic environment - Affected by different factors

Filipino Entrepreneural Economy

- Free enterprise or maket economy - Individuals are risk-takers - One of the national government's main thrust is the creation of the spirit of entrepreneurship among the poor.

No. of Employees in Micro Enterprise

1-9

Views on competition

Entrepreneurs are not afraid of competitors

Employment Generation

Growing number of business

Utilization of local resources

Handicraft industry

Flexibility and lower capital cost per job

If you want to expand it or closed it, you can also easily do so.

Attitude towards money

Invest it in a productive activity like a small business.

AFTA

Laid out a comprehensive regional tariff reduction

Total Assets of Medium Enterprises

₱15,000,001 - ₱100,000,000

Total Assets of Micro Enterprises

₱3,000,000 or less

Total Assets of Small Enterprises

₱3,000,001-₱15,000,000

Distribution of income

MSMEs employ people, so as income

Seedbed for Entrepreneurs

MSMEs serve as _____

APEC

Premier in facilitating economic growth, cooperation, trade and investment

1. World Trade Organization 2. Association of Southeast Asian Nations 3. ASEAN Free Trade Area 4. Asia Pacific Economic Cooperation

1. WTO 2. ASEAN 3. AFTA 4. APEC

No. of Employees in Small Enterprise

10-99

No. of Employees in Micro Enterprise

100-199

Conferment of social ranks

A culture that encourages entrepreneurship

Major Challenges and Issues for Philippines MSMEs

A. Competition in export markets B. Existence of small domestic markets and limited local market C. Need for imported parts and materials D. Lack of essential management techniques E. Barriers to starting up businesses F. Limited economic activities at the local level

ASEAN (Association of Southeast Asian Nations)

Accelerate economic growth, social progress, and cultural development

Work Ethics

Culture with good work ethics mirror

Niche Sevices

Small business that are seasonal or those that are not always needed

Export earnings

The Philippines is one of many countries that export raw materials to other countries

Time Orientation

The entrepreneur is time conscious or always thinking about the right timing

WTO

To assure that trade flows as smoothly, prdictablyand freely as possible