ENTREPRENEURIAL
MANAGEMENT:
INTRODUCTION
PREPARED BY:
KAREN G. GANENAS, MBA
THE PHILIPPINE ECONOMY
❑The national economy is composed of business enterprises, households and
the government.
❑Basically, we have a market economy or free enterprise economy. This
means there are economic freedoms, like free competition, free choices of
investment, and prices are determined by interaction between demand
and supply.
❑The role of the government is to extend financial and technical assistance,
and to formulate policies that are conducive to economic growth.
• In economic development, the bottom-line is the quality of the people of a given
country.
• then main determinants of economic growth are Knowledge, skills and values.
PHILIPPINE ECONOMIC DEVELOPMENT 250,000- 300,000 YEARS:
❑There were already inhabitants in the Philippines. They came from other countries in
Asia through the land bridges.
❑They lived by hunting, fishing and food gathering.
❑Later on, more civilized migrants introduced primitive agricultures and handicrafts.
❑The barter system was also practiced throughout the century.
“As early as the 10th century, there was already TRADE with the ARABS. THREE
HUNDRED
YEARS later, the CHINESE dominated the trade from Batanes to Sulu”.
THE COLONIAL RULE
The Philippine became the slave of three colonial masters: Spain, United States
and Japan.
Japan invaded the Philippines and other Southeast Asian Countries for
economics reasons. It had problems such as population explosion, shortage of
raw materials and surplus factory products.
Our economy was its worst during the Japanese time
➢Good and services were extremely scarce.
➢The production of sugar stopped for lack of foreign market.
➢Most Filipinos starved.
➢Rice sacks were used as clothing.
➢Price of rice per cavan was P30 before the war.
THE REPUBLIC 1946- 1972
• The United States granted our political interdependence on July 4, 1946.
• The united State still influenced our political economic policies.
❑ The Americans imposed the Bell Trade Act of 1946. This gave the American Businessmen the right to
exploit our natural resources, to operate public utilities and other businesses, and to enjoy the pre-
war free trade agreement.
❑ It was an act passed by the United States Congress specifying policy governing trade between the
Philippines and the United States following independence of the Philippines from the United States.
❑ In 1958, President Carlos Garcia introduced the Filipino First Policy. There was no foreign
competition.
❑ More Filipino factories were established, particularly along EDSA.
❑ In 1965, during President Ferdinand Marcos, The Philippine government was heavily indebted to the
United States, and it needed more funds for its projects. The peso was devaluated several times.
THE MARTIAL LAW REGIME
The WB-IMF (World Bank International Monetary Fund) played a dominant role
in the economy under martial law.
The financial institutions were responsible in imposing financial reforms, import
liberalization, foreign investments, export processing zones, tariff reduction,
high interest rates, devaluation, and tight credit policy.
Due to U.S. intervention in our economic policies, by means of WB-IMF
conditionalities:
❑Foreign investments through multinational corporations practically
monopolized the production, processing and marketing of products.
❑In agriculture, capitalist agriculture was controlled by the U.S.
THE AQUINO ADMINISTRATION
• Economic recovery was the first priority of the AQUINO GOVERNMENT.
The economic program development was planned to poverty and to
generate jobs and incomes for the poor, especially in the rural economy.
THE AQUINO 6 YEAR DEVELOPMENT PLAN WAS BASED ON THE FF. PRINCIPLES:
1. Respect Human Rights
2. Promotion of Social Justice
3. Wiping out of Poverty.
4. Attainment of economic growth.
5. Market economy
THE RAMOS GOVERNEMENT
• Aside from continuing the good social economic programs of the previous
government, like cooperatives, agrarian reform, foreign investment, rural
development, decrease of poverty, and market economy;
• The RAMOS GOVERNMENT, has given priorities to the problems of energy,
peace and order, and strengthening of local government units.
• The success of the Ramos government on these areas would certainly mean
business growth.
FUNDEMENTAL ECONOMIC
PROBLEMS
All countries have economic problems such as
1. The resources – money, materials, machines are limited while our humans
needs are unlimited.
2. The unfair distribution of productive resources and population explosion.
3. Most people are poor.
4. Less developed countries ( the price of labor is very low).
5. Unemployment (housing, health and sanitation, prostitution, robbery, and
other related crimes).
RELEVANCE OF ENTREPRENEURSHIP TO
AN ORGANIZATION
1. Development of Managerial capabilities- An entrepreneur studies a problem,
identifies its alternatives, compares the alternatives in terms of cost and benefit
implications, and finally chooses the best alternative.
2. Creation of Organizations- Entrepreneurship results in creation of organizations
when entrepreneurs assemble and coordinate physical, human resources and
direct them towards achievement of objectives through managerial skills.
3. Improving Standard of living- By creating productive organizations,
entrepreneurship helps in making a wide variety of goods and services available
to society which results into higher standard of living for the people.
4. Means of economic development- entrepreneurship involves creation and use of
innovative ideas, maximization of output from given resources, and development
of managerial skills. All these factors are essential to economic development of a
country.
FACTORS AFFECTING
ENTREPTRENEURSHIP
A. PERSONALITY FACTORS
1. Initiative- does things before being asked
2. Proactive- identifies and utilizes opportunities
3. Perseverance- works against all odds to overcome obstacles and is never
complacent with success.
4. Problem solver- develops and maintain relationship with customers and financers;
conceives new ideas and introduces innovative solutions.
5. Persuasion- convinces customers and financiers to patronize his business
6. Self-confidence- makes decisions and sticks to his decisions
7. Self-critical- learn from his mistakes and from experiences of others
8. Planner- collects information, prepares a plan, and monitor performance.
9. Risk-taker- is willing to take calculated risks.
CONT. FACTORS AFFECTING
ENTREPTRENEURSHIP
B. ENVIRONMENTAL FACTORS
These factors relate to the conditions in which an entrepreneur has to
work. Environmental factors such as political climate, legal system, economic
and social conditions and market situations, contribute significally towards the
growth of entrepreneurship.
END OF CHAPTER 1 ☺
