A presentation about the history of Entrepreneurship in the Philippines.

1. CHAPTER
3:ENTREPRENEURSHIP IN
THE PHILIPPINES
Presented by: DAYBIE C. ROQUE

2. THE FILIPINO ENTREPRENEURIAL LANDSCAPE
Entrepreneurship is part of the historical and economical
changes that happened in the Philippines.
THE PRE-SPANISH PERIOD
Early inhabitants of Filipino came from all parts of Asia through
land bridges.
The group of Islands is settled by different tribes.
Primitive Agriculture- their way of living
-planting and gathering food
-hunting wild animals
-fishing along the shores
Later on they lived permanently as a group led by a leader who
was usually the older or most powerful individual.

3. Barter System Exchange/Barter System
a system where people gave something in exchange for a
commodity they received.
No money was involved but instead, they practiced an
honest exchange for goods.
In this period, exchange of goods become a practice for
centuries and entrepreneurship was primitive as values
were not established.

4. Filipinos traded with the Arabs as early as the 10th
century. They exchange clothing made from silk with gold
and pearls.
Then Chinese came in boats with their porcelain and
traded with the natives from Northern tips of Luzon to
Sulu.
Chinese left their goods and later collected gold,
handicraft and pearls from natives as payment.
Local then started to trade their handicraftsand other
ornaments, travelled as far as Borneo, Malacca, and
China.

5. They paid taxes to the Ming Emperor with valuable goods
so that they can be able to trade goods.
Shores that were highly inhabited or along major rivers
became tading ports.

6. SPANISH COLONIZER
More than 300 years we were under Spanish rule.
Entrepreneurship was limited to the development of agricultue as
the Spanish promoted the encomiendas for the colonial masters.
Encomienda -is a grant by the Spanish crown to a colonist in
America conferring the right to demand tribute and forced labor from
the inhabitants of an area.
In the later part, they promoted a colonial entrepreneurial activity.
The lands were devoted to the planting of tobacco especially in
the northern part of be exported to Spain through the Galleon
Trade.

7. Galleon Trade
-the trade route itself between Acapulco and Manila,
which lasted from 1565 to 1815.
-the so-called Manila Galleon (“Nao de China” or Nao
de Acapulco”) brought porcelain, silk, ivory, spices, and
myriad other exotic goods from China to Mexico in
exchange for New World silver.
Bicol region is devoted to the planting of abaca and the
finished product were sent to Spain through the same
trade system to be trade into ropes for use of the Galleon
vessels.
Chinese still dominate the market.

8. THE AMERICAN ECONOMIC IMPERIALISM
American colonization is an economic activity and
imperialist act to capture the Philippine market for the
excess product in their factories that started their
industrial revolution.
Philippines became the supplier o raw materials that
entered American ports free of taxes and fees and finish
products were exported to the country with multiple
profits.
The country was made an agricultural arena for the
production of more coconut, tobacco, sugar and abaca.

9. PAYNE-ALDRICH TARRIF ACT
-which provided for free entry to the United States of
all the Philippines products except rice, sugar, and tobacco.
Rice imports were subjected to regular tarrifs, and quotas
were stablished for sugar and tobacco.
In this period, entrepreneurship was in the hands od
foreigners as they had the power and resources.
Chinese was still in control of the retail trade as they knew
how to deal with the American interest.

10. THE JAPANESE EXPANSIONISM
The Japanese entrepreneurial invasion was the result of
the idea of co-prosperity for the Southern Asia region.
Japan also had excess products and they would like to
penetrate the nearby countries in Southeast Asia.
They also needed raw materials like copper , iron ore,
and forest products to develop further their industries.
Since they had strong army and armaments to support
their economic expansion, they went with war to America
and Europe to expand their economic interest.

11. Entrepreneurial activities were on a standstill as no
American came nor Japan goods were supplies into the
stream of business as they were busy at war.
Export sugar, coconut, abaca, and other product were on
hold and the supply of money to buy basic needs became
scarce.
The war brought havoc of destruction not only
infrastructure but also the economic activities.
For about five years his conditions prevailed until the
Americans recaptured the country with the help of gallant
Filipino soldiers.

12. ENTREPRENEURSHIP IN THE INDEPENDENT
REPUBLIC
After more than a year, after the war, the Americans
gained the Phnes its independence and gave the
leadership of the country to the Filipinos.
Manuel L. Quezon was elected as President of the new
Republic.
In 1946, immediately after the granting of independence,
the Americans imposed the Bell Trade Act.
It gives the right to American businessman to exploit
natural resources especially in the areas of mining and
the operation of utilities.

13. With the devastated economy, the poor Filipinos found
difficulty in making business activities. The hungry
Filipinos and the lowly farmers could hardly find decent
work or employment.
Rebellion was offing in the country side and many
disgruntled leaders wanted a change in deology from
democracy to communism.
They wanted the lands distributed to the farmers and for
them to get the fruits to the soil they worked for.
For fear of change in the government agreed to impose
import and exchange control.

14. American goods were reduced and this provided the local
entrepreneur to gradually develop the local business enterprise.
Under the administration of President Carlos P. Garcia, factories
began to operate and supply local products under the First Filipino
policy.
It only lasted for barely seven years.
Diosdado Macapagal was then elected as the President, elected
by the political maneuvers fo the United States.
The World Bank and the International Monetary Fund granted the
Philippines loans in the amount of more than US$500 Million as
economic aid to be paid for several years.

15. As a result of the decontrol program, many local
industries that started their operation had to close shop as
they could not compete with American products that came
due to the decontrol program.
As a result of the closure of the different industries, many
became jobless again and hungry workers began to go on
strike and near uprising.

16. THE DOOMSDAY IN THE PHILIPPINES ECONOMY
President Ferdinand E. Marcos suspended the election to protect
political elites and the economic cronies of the administration and
for them to be in control.
He imposed Martial Law.
As support to the Martial law regime, the WB-IMF granted more
loans amounting to US$27 Billion, which left a question on
Filipino's mind where the money went.
The WB-IMF played the major role by imposing financial reforms,
import liberalization to favor American and Japanese interest, and
the entry of foreign investments, tarrif, reduction and the creation
of export processing zones.

17. The economy was in total devastation. The government
has to impose taxes to pay for the loans with WB-IMF.
Entrepreneurship in this period was in the hands of multi-
National corporations they operated factories in the export
processing zone to support their respective enterprise
using the Filipino labor force where in they pay minimum
wages.
Employment in factories did not improve the economy as
the economic growth rate was negative for several years.
The Philippines was left behind in the Asian growth
region, as we have to pay loans with the International
financial institutions.

18. PEOPLE POWER PRESIDENT
President Corazon C. Aquino came into power through
People Revolution, the first in the world of nation as the
bloodless revolt that happened in the coming of the new-
millenium.
The focus of the new adminitration was the creation of of
new jobs by creating labor industries in the export
processing zones and the development of the rural
communities through the intensive agricultural production.
Dollar's came in forms of remittances that helped proper
economic growth and develop new entrepreneurs.

19. The new administration released the economic break for
the interplay of market forces and the participation of the
local private enterpreneur in policy formulation for
economic development.
Land Reform programs was emphasized and all the lands
were distributed to the farmers.
The gate value to economic prosperity and the
development of entrepreneurial activity among the local
businessman was not all honey with the changes in
administration. Political opportunist and the old cronies
still existed.

20. THE PAR CRY HOPE IN THE NEW DEMOCRACY
• President Fidel V. Ramos was elected President with the
high hopes for a new generation in economic recovery.
• He developed more power plants to solve the current
cries in energy.
• Graft and corruption still existed.
• Good intentions and programs could not be put in place
where there are people in the government that remained
to be corrupt.

21. THE LAST DECADE OF ECONOMIC RECOVERY
The new administrations of the last two Presidents in the new
decade did not change the political and econoic landscape.
The few people that control business activity continue to amass
more wealth that catapulted them in the new book of the business
community as billionaires.
Most of them are Chinese.
While the previous administration continued to herald
accomplishments in economic growth and recovery, the exploding
population continued to suffer the hunger and unemployment.

22. The new battlecry for reforms in government administration is
sustaining in awareness in the frontal government administration
yet it must cascade down the local government units as they are
in the frontline in development of local entrepreneur and in the
delivery of basic social service.
ANG TUWID NA DAAN TUNGO SA KAUNLARAN will remain a
mystery as people will remain in the dark side of corruption ad
greed for more wealth and money.
The country is a great ground for the development of local
entrepreneurship and must start now before the foreign invaders
come in to exploit further our dwindling natural resources.

23. THANK YOU FOR LISTENING!