This chapter discusses how entrepreneurship and the development of entrepreneurial skills can help drive economic growth in the Philippines. It argues that entrepreneurship offers benefits like generating more jobs and income, accelerating economic development, improving quality of life, and promoting a more equitable distribution of resources. The chapter outlines different economic theories around factors like technology, innovation, and entrepreneurship that can contribute to development. It advocates for policies that support entrepreneurs through assistance programs and developing a culture where productive resources are controlled by Filipinos.

1. THE PHILIPPINE
ECONOMY:
How does an Economy
Grow CHAPTER 2

2. INTRODUCTION:
This chapter seeks to re-orient the school system
to respond more positively to the need for more
entrepreneurs on whom development depends. It
aims to inculcate entrepreneurship into the
consciousness of the youth as prestigious,
challenging and possibly more financially
rewarding than law, medicine, engineering,
education, the arts, and other more conventional
professions

3. <Those who want to reap
the benefits of this great
nation must bear the
fatigue of supporting it..

4. 1. The national economy is composed of
business enterprises, household, and the
government.
2. There are economic freedoms: •Free
Competition •Free Choice of Investments
•And the Prices Which are determined
by the interaction between demand and
supply.
The Philippine Economy

5. 3. In economic development, knowledge,
skills, values, and the quality of people
are the main determinants of economic
growth.
4. There were inhabitants in the
Philippines about 250,000 to 30,000
years ago. They arrived from other
countries through the land bridges. They
had primitive economic existence. More
civilized migrants came in later years.
5. The Philippine Government was a slave
of three colonial masters: The US, Japan
and Spain.

6. •The Chinese dominated the
retail trade even before the
Spanish time.
•The Spanish rule introduced
the tobacco monopoly and
galleon trade for the benefits of
top-ranking Spanish citizens.
•Similarly the Americans
exploited our agricultural
economy. •Japan completely
ruined our economy.

7. 6. The Philippine Government got its
political independence from the US.
The import control program of
President Carlos P. Garcia gave a
breathing space for Filipino
entrepreneurs. However this did not
last because the US had its own way
of dominating the Philippine economy

8. 7. Under the Martial rule, the friends of
the Dictator controlled the Philippine
business. Democracy was restored finally
upon the assumption of Corazon Aquino.
Under her administration, the engine of
economic development has been
assigned to the private business sector.
The Ramos government has sustained
most of the programs of the Aquino
administration

9. 8. 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 the poor who are interested
in putting up their micro businesses.
Even some NGOs are actively involved in
entrepreneurial project for the poor

11. 1. Entrepreneurship offers an economical and faster
method of distributing goods and services that accelerates
economic development.
2. Entrepreneurship is capable of generating more jobs,
income, goods, and services.
3. Entrepreneurship improves the quality of life.
4. Entrepreneurship contributes to more equitable
distribution of income, and therefore, eases social unrest.

12. 5. Entrepreneurship utilizes and mobilizes
resources to make the country productive.
6. Entrepreneurship brings social benefits
through the government.
7. Entrepreneurship has several definitions.
Any person who takes the risks and invest his
resources to make something new or engaged
in entrepreneurship. This also applies to social
services

14. 9. Development of Growth theories.
a. Laissez-Faire Theory – the government should not
interfere in economic activities.
b. Keynesian Theory – the government should play the
key role in economic development.
c. Ricardian Theory – the theory of David Ricardo
focusing on agriculture playing the major role in
economic development.
d. Harrod-Domar Theory – conceptualized by Sir Harrod
of England and Prof. Domar of the U.S., claims that more
products can be produced through the use of machines

15. e. Kaldor Theory – by Nichols Kaldor, maintains that the
key factor is technology. The theory explains that the
application of modern technology in the production of
goods and services has been responsible for the
economic success of the highly developed countries.
f. Innovation Theory – Developed by Joseph Schumpeter,
stresses the role of innovators or entrepreneurs in
economic development

17. 11. There is a need for a Filipino entrepreneurial
economy. This means that our productive resources
should be in the hands of Filipinos for their own benefits.
A reasonable economic nationalism should dominate our
business culture for our own prosperity as a nation.
School should stress the value of entrepreneurship based
on just economic nationalism.

18. 12. The government can support
entrepreneurs from their various
assistance programs on the following: -
Peace and order - Marketing assistance -
Political stability - Financial assistance -
Taxes - Infrastructures - Education and
training - Public administration -
Production technology

24. Population
Technology Entrepreneurship
Technology is the use of
scientific knowledge for
practical purposes or
applications, whether in
industry or in our everyday
lives.
The population mean is the
average of all values in a
given population, which
represents the entire set of
individuals or objects of
interest.
Entrepreneurship is one of the
resources economists
categorize as integral to
production, the other three
being land/natural resources,
labor, and capital.

26. THANK YOU