ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 2
MODULE 2: ECONOMIC DEVELOPMENT OF ENTREPRENEURSHIP AND Its
COMPETENCIES

Learning Outcomes
By the end of this topic, you should be able to:
1) Describe the Philippine economic landscape in the present time.
2) Explain the different factors in determining economic growth;
3) Examine the contributory determinants in the making of an economy;
4) Discuss the role of employment as a contributory factor in economic development; and
5) Explain entrepreneurship and socio- economic development.

CONTENTS:
 Philippine Economic Landscape in the present time.
 Factors in determining economic growth.
 Entrepreneur and socio- economic development
 Managerial skills that makes a successful Entrepreneur
 Characteristics of an Entrepreneur
 The decision making process
 Organizing the business enterprise

PHILIPPINE ECONOMIC LANDSCAPE IN

THE PRESENT TIME
The Philippine Economic landscape remains to be the spring board of
questions when economic development is the focus of discussion. The
leaders of this nation, aim greatness for the Filipino people especially
during the time of election. Their honest intention of improving the
economic conditions is their battle cry that catapulted them into power,
yet in spite of many promises Filipinos remain poor. Instead of
improving the living condition of the Filipinos, they amassed wealth as
a preparation for the next election. Politics becomes an investment for
power and money and it is not the true essence of public service. Two
important factors hinder our growth as a nation:
1) Poverty is the making of its people and the kind of leaders that
holds the wheels of economic fortune.

Course Code: ELECT 101

Descriptive Title: ENTREPRENEURIAL MANAGEMENT Instructor:RHEA P. CORTEZ
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 2
2) Population explosion is another factors that contributes to the
poverty of our nation.

FACTORS IN DETERMINING ECONOMIC GROWTH

1. The Filipino values and culture.
a) Love for imported products.
 The country’s colonization for centuries has developed in the
Filipinos a culture of dependence and love for foreign
products. We still feel that imported products are superior in
quality and we look upon our own products as inferior.

b) Our values of BAHALA NA

 A true Filipino entrepreneur will not put his destiny in the
hands of the BAHALA NA. He must act with strong
determination and push for the development of his ideas.
Innovation and the creation of more goods and services are in
the hands of an entrepreneur who has the ability to make new
and innovative products or create a new channel of their
distribution.

c) Our Crab mentality

 Crab mentality is the action of people to pull down others who
are about to get out the verge of poverty and reach for their
success. Enviousness is making of people who could not think
better for himself. There are many of us who destroy others yet
when we look at the mirror we are not better than them.

d) The MANANA HABIT

 MAMAYA NA or BUKAS NA is a culture that is brought to
us by the colonizers who were fond of ESTEFA after lunch
time. We take time in stride wasting time. The real
entrepreneurs do not believe in siesta as they keep working
until things are done according to their plans.

e) The value of time

Course Code: ELECT 101

Descriptive Title: ENTREPRENEURIAL MANAGEMENT Instructor:RHEA P. CORTEZ
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 2
 Relative to the above discussion is our lack of value to the
precious time given to us, 24 hours a day and 364 days in a
year. We are always late in the start of the program, coming to
our classes, attending to office work and even in important
meetings and appointment. We take all the time in our hands,
not thinking that the meaning of progress rest in our value of
this precious gift of time.
f) Our Values of Hiya
 HIYA could be a positive value in dealing with business
condition. It could be a propelling reason for us to create better
service and proper dealings in business transaction. There are
still many of us who make shortcuts in the business dealings.
Good in its face value but with hidden agenda of fraud and
deception

g) Fiesta and social occasions

 The celebration of Fiestas of Saints that we inherited from the
Spanish colonizers could be another factor in the slow
development of our economy. People especially in the country
side would have all their savings spent in a day of the fiesta,
entertaining guest, only to find out the next day that there is no
more rice to feed their children.

2. Job Opportunities/ Employment

Employment opportunities remain to be elusive among Filipinos.
The industries in the economic zones and other urban centers could not
accommodate the growing employable. Most still receive minimum
wages that barely support the needs of five members the family.
a) Employment is one great factor in economic development
 The entrepreneur provides the necessary wok for people that
propel the economic development of nation. The money in
circulation for wages and salaries will help local industries to
develop new products and services that generate more small
and medium enterprise.
b) Income opportunity in the countryside is still subsistence in
nature.
Course Code: ELECT 101
Descriptive Title: ENTREPRENEURIAL MANAGEMENT Instructor:RHEA P. CORTEZ
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 2
 Most people are still dependent on old farming and fishing
system. We have not introduced modern farming technology
and the proper culture of our fishery resources. Our corals and
fish sanctuary are damaged by destructive methods of fishing.
Our vast shoreline could be developed into haven for fishery
development if new methods and technologies could have been
put in place to supply the food of nation.
3. Availability of needed capital
The banks are sources for limited capital for small and
medium enterprises. These resources are available in the banking
institutions. The poor people are not aware of these great
opportunities and they do not know how to go about it to avail of
the funds.
a) Republic Act 6977, known as the MAGNA CARTA FOR
SMALL ENTERPRISES provided the necessary funds for the
development of entrepreneurs in the countryside.
 Under this act, are small and medium enterprises engaged in
industry agribusiness and other services. These funds could be
availed by single proprietorship, cooperatives, partnership or
corporation.
b) Republic Act No. 6810 is the establishing the Magna Carta for
Countryside and Barangay Business Enterprises, granting
exemptions from any and all government rules and regulations
and o her incentive and benefits and for other categories.

ENTREPRENEUR AND SOCIO- ECONOMIC

DEVELOPMENT
The development of the nation economic activity is the making
of a small and medium enterprises mostly located in the country side.
They contribute to the economy of big corporations as they are also
consumers of their production. It is the entrepreneur who develops new
products and makes innovation that becomes the backbone of more
economics.

Course Code: ELECT 101

Descriptive Title: ENTREPRENEURIAL MANAGEMENT Instructor:RHEA P. CORTEZ
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 2
The following are the contributions of the Entrepreneur in our
Socio- Economic Development:
A. The Entrepreneur provides employment.
Employment generates income and those employed pay taxes to
the government which in turn gives benefits to the social and
educational needs of the greater population. Those with income through
employment become less burdensome to the government.

B. The entrepreneur pays taxes.

Entrepreneur pay taxes in the form of real estate tax, sales tax, import
and export tax and permits from the local and national government.

C. The Entrepreneur provides new lifestyle and pleasure.

Product innovation and development is the making of entrepreneurs.
Mobile phone is the newest contribution of the entrepreneur to make
a new style for more Filipinos. Communication between individuals
and business became so easy and handy as everyone enjoys new
innovation.
D. The Entrepreneur improves the capital base of the economy.
The entrepreneur mobilizes economic activity as the circulation of
money which pumps up the economic development of the community.
Capital investment base that will propel more business activities.
E. The Entrepreneur creates people empowerment and social
mobility.
Entrepreneurs accumulate financial resources that give them social
power in the community. They can afford to buy some personal
luxuries of life. They acquire new lifestyle of travel and pleasure. They
make new houses and invest in real properties that make then=m
respected in the community.
F. The Entrepreneur provided healthy competition.
Healthy competition provides people with choices of new products
or better services. Entrepreneur seeks better products and develops
Course Code: ELECT 101
Descriptive Title: ENTREPRENEURIAL MANAGEMENT Instructor:RHEA P. CORTEZ
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 2
new ones that will satisfy their target customers. Competition develops
pride for the entrepreneur that their product or service is superior from
the other.

MANAGERIAL SKILLS THAT MAKES A SUCCESSFUL

ENTREPRENEUR
A. The ability to plan and conceptualize
 Conceptualization and planning go together. Good concepts
need to be put in the planning table to avoid the risk factor.

B. The ability to organize the resources of the enterprise.

 A good business organization is based on around people and
resources. An entrepreneur works with others and needs
people with the same values and working ability. Efficiency
and effectiveness in the work arena are the working of people
with dedication and talent to do the job properly.

C. The ability to direct and motivate people in his organization.

 People are like machines that need oil that will make them
work smoothly and effectively. Machines will bug down if no
oil is put into its chamber while in operation. The same
principles work with people. They need proper compensation
and motivation for them to deliver the necessary output.

D. The ability to control.

 Controlling the whole operation is a difficult task for the
entrepreneur. Safeguards and control mechanism could put in
place with carefully crafted policies and procedures. Such
policies and procedures must be carefully disseminated and
understood by all who will implement them.

E. The ability to manage time.

 Time management is very essential ingredient to the success
of an entrepreneur. Because of the numerous activities could
be attended on time.

Course Code: ELECT 101

Descriptive Title: ENTREPRENEURIAL MANAGEMENT Instructor:RHEA P. CORTEZ
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 2
F. The ability to adapt to the changing environment of business.
 Business today is fast changing with the advent of technology
and innovation. The new entrepreneur must be able to adapt to
this changes in the business landscape for him to go with the
time of progress and expansion.

CHARACTERISTICS OF ENTREPRENEUR
1. Leadership and management abilities
 Managerial leadership is the ability to plan, organize, direct
and control the organization towards the goals and objective of
the organization. It requires conceptual skills in defining the
direction of the business and the development of plans and
programs that will work effectively. The mission and vision of
the organization must be set up based on his investments and
interest.
2. Positive risk takers
 The entrepreneur as a positive risk take, enjoys the challenges
of putting his money and time into a test. He calculates the
various alternatives open to him and careful choice of actions.
The entrepreneur gathers complete data and makes careful
analysis before making decisions.
3. Self- confidence and positive outlook
 The entrepreneur has strong belief in his capacity to make a
difference in their chosen field. They believe that
achievements are guiding principles in man’s success as faith
drives them to do better. The entrepreneur believes in the Lord
Almighty and that his talents are God given gift that he must
use for the well-being of mankind. His faith in God drives
him to work with great enthusiasm and perseverance to reach
his target goals.
4. Innovativeness and forward looking
 The blazing path to entrepreneurial success is the courage to
make innovations in products or service. The entrepreneur
refuses to stop at his achievements. He looks forward in
creating new things, something different from others. He
thinks of new technology that will create new and better things
Course Code: ELECT 101
Descriptive Title: ENTREPRENEURIAL MANAGEMENT Instructor:RHEA P. CORTEZ
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 2
for the customers. He introduces innovations that will satisfy
human needs and wants. He satisfies new market demand for
new and better products.
5. Natural intelligence and decision making skills.
 The entrepreneur’s natural intelligence is an important
requirement in making effective decisions. The entrepreneur
has to make decisions as he cannot make things happen
without making a wise choice of alternatives. Creativity and
innovativeness carry with it the power to make decisions as he
needs to satisfy customers’ needs for new and better products
and service.

THE DECISION MAKING PROCESS

1. Identify the problem.
 The risk involved in the management of the business has to be
identified and analyzed before solutions could be made.
Relevant data and information must be organized. The core
objective is to minimize the risk factor involved as wrong
choice of alternative would result to production or operation
losses.
2. Gather the data that brought the problem.
 Good and intelligent entrepreneur must be able to get the data
that brought about the problem. The solution to the problem is
dependent on the data available at hand. Correct information
would give better solutions. False and irrelevant data would
not give the best solutions.
3. Analyze the Data.
 Not all information is relevant to the solution of the problem.
Some data must be discarded. The data must focus on the
problem at hand. It must be timely gathered and the
information is based on actual situations prevailing in the
business environment. The internal and external sources must
be analyzed to find out which are relevant in formulating
alternative’s solutions.
4. Formulating alternative solutions.

Course Code: ELECT 101

Descriptive Title: ENTREPRENEURIAL MANAGEMENT Instructor:RHEA P. CORTEZ
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 2
 The Entrepreneur makes various alternative solutions to the
problem at hand. These solutions are subject to a series of
analysis and he may need outside opinion. He may subject the
alternatives to further study before making decisions until he
finds the right alternative course of actions.
5. Selecting the best alternatives course of action.
 After all the alternative courses of action had been analyzed,
the entrepreneur makes decision. The decision has to be
implemented with the less possible risks in terms of money,
time, and effort. It must take into account the available
manpower and material resources, supported with financial
logistics.
6. Implementing the best alternative.
 The modern entrepreneur utilizes group efforts in solving
business problems. Problems and solutions are best arrived
when people who will be implementing the decisions are
properly consulted and their opinions and ideas are taken into
account before the final decision is implemented. Group effort
is required in planning effective strategies for implementation.

ORGANIZING THE BUSINESS ENTERPRISE

The prospective entrepreneurs before going into the intricate
field of the business world should go first into deep analysis of their
personal and social attitudes. It is not only materials assets but personal
values and characteristics. Before venturing into field of business, it
is wise to develop entrepreneurial studies that will help determine the
feasibility of the project.
Some entrepreneurs failed because they are “plain copy cats” in
putting the business because the neighbor Juan makes money going into
a Mini- grocery. The entrepreneur must first evaluate his personal
interest, experience in the chosen field, the technical skills as well as
his human skills as these are the vital component in the success of the
business.
Business forecasting and planning skill is another vital
component that must be addressed before making investments. Careful

Course Code: ELECT 101

Descriptive Title: ENTREPRENEURIAL MANAGEMENT Instructor:RHEA P. CORTEZ
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 2
preparation is an essential factor in setting the enterprise into motion.
Investment in money and effort may go to waste without adequate
preparation and careful planning. The loss of money and time must be
prevented.
ENTREPRENEURIAL STUDIES
The entrepreneur must see for himself the kind of management
control and how the business will be able to generate his projected
profitable investment. He sees the wide open market of opportunities
and the possible problems before he plunges into the intricate operation
of the enterprise. Wise investment through a careful analysis of the
business environment would minimize business failures.
The following steps in the business formation have been done by
entrepreneurs that applied a more scientific study of the business
conditions. A business project either new or an expansion, undertake a
careful planning of the project which will serve as a guide in the
implementation.

REFERENCES:
 Marife Agustin- Acierto, copyright 2019

EVALUATION:
DIRECTION: Read and answer the questions carefully.
1. How do entrepreneurial studies affect success?
2. Given the prior knowledge is an important factor in opportunity recognition, does this
mean that younger people are less likely to recognize business opportunities compared to
older people?

Course Code: ELECT 101

Descriptive Title: ENTREPRENEURIAL MANAGEMENT Instructor:RHEA P. CORTEZ
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 2
INTENDED LEARNING ACTIVITY 1: Case Analysis
Instructions: Answer the following Case activity in the answer sheet provided in the
google classroom.

Marian’s Organization: A Chaotic One

It was in November 2019 when Miss Marian Rivero , a business
management graduate, opened her store “ Marian’s Sales” in downtown
Caloocan City as an exclusive dealer of shoes products of Parisiane in
MS City. After a few days, she hired a 16- year old boy to helped her
in the various manual tasks in the factory.
The five percent profit margin she attached to the cost of sales on
items she was handling provided enough reason for consumers to
patronize her factory. The increasing volume of sales justified her hiring
a sales assistant after five months of operation. By February 2021, her
factory was attended by 10 workers plus the helpers and the teenage help.

Presently, Miss Rivero is performing the following functions:

1. Purchasing merchandise’ stocks outside town;
2. Accounting;
3. Supervising sales activities;
4. Cashiering and treasury;
5. super vising inventory control

By December 2021, her factory sales reached an average of P 1.5

million per month on a P 3.5 million net worth. Her customer come from
Pampanga and the nearby towns of Pangasinan and others.
Marian realized that her sales were limited only by her ability to
serve more customers. She felt that if she could only expand her
network, it would be more successful. She considering putting up a
branch in San Carlos City and another one in Lingayen.
Her biggest problem now is how to set an organizational structure
that will match her expansion plans.

Course Code: ELECT 101

Descriptive Title: ENTREPRENEURIAL MANAGEMENT Instructor:RHEA P. CORTEZ
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 2
Answer the following questions.
1. In organizing a business enterprise, what is the most significant action of
Ms. Rivero that she considers?
2. Give at least 3 managerial skills of Ms. Rivero that makes her a successful
entrepreneur.

3. How will Ms. Rivero set an organizational structure that will

match her expansion plans?

Course Code: ELECT 101

Descriptive Title: ENTREPRENEURIAL MANAGEMENT Instructor:RHEA P. CORTEZ