CHAPTER 2

THE PHILIPPINE
ECONOMY:HOW DOES
ECONOMY GROW
 MAIN TOPICS

Introduction
The Philippine Economy: How Does Economy
Grow:
The Rule Of Entrepreneurship in Economic
Development
How does an economy grow?
 OBJECTIVES

Orient people on the status of Philippine

Economy
 Identify 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
PHILIPPINE ECONOMY
-The Philippine economy being a mixed
economy means it has elements of both
a free market and government
intervention
 THE PHILIPPINE ECONOMY: HOW DOES AN ECONOMY GROW

The Philippine Economy

The national economy is composed of business enterprises, household, and the
government.
• There are economic freedoms, like free competition, free
choice of investments, and the prices, which are determined
by the interaction between demand and supply.
• In economic development, knowledge, skills, values, and
the quality of people are the main determinants of economic
growth.
• The national government, in its effort to alleviate poverty,
has been promoting the growth of entrepreneurship. It has
several financial and technical assistance programs for poor
who are interested in putting their micro businesses. Even
some NGOs are actively involved in entrepreneurial projects
 FACTORS THAT GREATLY AFFECTS
THE BUSINESS ESTABLISHMENTS
IN OUR COUNTRY:

• Low tax rates

• Time/Cost of starting a business
• Political stability
• Level of corruption
• and etc.
 THE ROLE OF ENTREPRENEURSHIP IN
ECONOMIC DEVELOPMENT

1.Entrepreneurship speeds up economic development efficiently.

2.Entrepreneurship creates jobs and income.
3.Entrepreneurship improves the quality of life.
4. Entrepreneurship contributes to more equitable distribution of
income, and therefore, eases social unrest.
5. Entrepreneurship utilizes and mobilizes resources to make the
country productive.
6. Entrepreneurship brings social benefits through the
government.
7.Entrepreneurship involves taking risks and investing resources to create
innovations or improvements.
WHAT ARE THE DIFFERENCE BETWEEN
ECONOMIC GROWTH AND ECONOMIC
DEVELOPMENT?
8. Economic development is a progressive progress aimed at
improving Human conditions while Economic growth is a product ,
influence by various factors.
10. 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 and, 5) Creation of Employment.
11.Filipinos should build an entrepreneurial economy to benefit from
productive resources. Economic nationalism and promoting
entrepreneurship in schools will lead to national prosperity.
12.Government supports entrepreneurs through programs on peace,
stability, taxes, infrastructure, education, technology, marketing,
and finance.
13.Entrepreneurial activities can boost economic and social
development, helping our country catch up with others.
HOW DOES AN
ECONOMY GROW?
 HOW DOES AN ECONOMY
GROW

A. The theories of economic growth can be grouped into three

categories: natural and inevitable, rational response to
opportunities for self-interest or social welfare, and
economically irrational yet psychologically and sociologically
satisfying activities of enterprising individuals.
 B. GENERAL EXPLANATIONS OF ECONOMIC
DEVELOPMENT

1.Economic development proceeds according to a master plan or

“Law of Nature.”
2.Economic development is brought about by an “Invisible Hand.”
3.Economic Development is brought about by “Cultural Diffusion,”
4.Racial heritage determines the economic development of people.
5.Climatic conditions determine the energy levels of people and in
turn its rate of development.
6.The challenge of the natural environment is responsible for the
rise of civilization.
 C. ECONOMIC EXPLANATIONS OF
ECONOMIC DEVELOPMENT

 Technology improvements and division of labor lead

to development.
 Population changes affect development.
 Entrepreneurship is an important factor in
development.
 D. SOCIO-PSYCHOLOGICAL EXPLANATIONS
OF ECONOMIC DEVELOPMENT.
According to the work of Talcott Parsons, individuals in modern
Societies are:
 Unemotional.
 Interested in themselves.
 Able to relate to Others In term's of their social roles or Their ability to do a job.
 Known for their accomplishments; and
 Able to relate to others in specific economic terms.
2. In contrast, members of traditional societies tend to:
 Be emotional;
 Be more interested in the general welfare of the community;
 Relate to others in terms of their unique qualities;
 Be known for who they are; and –
 Tie up economic relationships with all sorts of other , relationships involving kinship and
political, religious, and other social structures.
CHAPTER 3
ATTRIBUTES, QUALITIES,
AND CHARACTERISTICS
OF AN ENTREPRENEUR
DEFINE THE WORD
“ENTREPRENEUR”
 QUALITIES OF AN
ENTREPRENEUR
SELF AWARERNESS INFORMATION SEEKING
SELF MOTIVATED PERSEVERANCE
COURAGE DRIVE

CONFIDENCE RISK TAKING

INNOVATIVE
POSITVE THINKERS
OPPORTUNITY SEEKING
PATIENCE
DEMAND FOR EFFICIENCY AND
DECISIVENESS QULITY
EXPERENCE SYSTEMATIC PLANNING AND
KNOWLEDGE MONITORING
PERSUASION AND NETWORKING
SELF-AWARENESS - means knowing yourself your strengths, weaknesses, and how you
react to different situations.
SELF-MOTIVATED-individuals use discipline and passion to complete essential tasks on
time, limiting procrastination and producing results.
COURAGE -willingness to take risks, make difficult decisions, and move forward despite
uncertainty and potential failure.
CONFIDENCE - is what will allow you to turn obstacles into opportunities, weaknesses into
advantages, and setbacks into breakthroughs
POSITIVE THINKERS- Entrepreneur are positive thinkers.
PATIENCE - In business doesn’t mean complacency
DECISIVENESS - business has been describe as a process of making one fast decision
after another.
EXPERIENCE - Is a must for crucial, success and growth.
KNOWLEDGE - You need to know as mush as possible about business basic
INFORMATION SEEKING - To achieve their goals, entrepreneurs constantly look for
important information about the market, customers, suppliers, and competitors. They also
seek advice from experts on business and technical issues.
PERSEVERANCE- is the ability to keep going despite obstacles. It’s a critical trait that
helps entrepreneurs push through challenges to achieve their goals.
DRIVE - Success in business requires drive, which is a deep belief in your goals and a determination
to succeed. without dedication to your goals, your business may falter.
RISK TAKING - Willingness to invest time, effort, and resources into ventures with uncertain
outcomes, accepting potential failure as part of the process.
INNOVATIVE -The capacity to generate and implement novel ideas, solutions, or products that
significantly improve existing practices or create new value.
OPPORTUNITY SEEKING – The ability to identify and pursue new prospects and gaps in the market,
capitalizing on emerging trends or needs.
DEMAND for EFFICIENCY and QUALITY - Reflects a need for both optimized performance and
high standards in products or services.
EFFICIENCY – emphasizes minimizing resource use and reducing costs while achieving desired
outcomes, aiming for streamlined operations and maximum productivity.
QUALITY – focuses on meeting or surpassing standards, ensuring that products or services are reliable,
durable, and provide significant value to consumers.
SYSTEMATIC PLANNING AND MONITORING - Essential for success in business. The
entrepreneur can follow a clear plan.
PERSUASION AND NETWORKING- Persuading others helps them make many useful connections.