Week 1 Module

1. 11
APPLIED ECONOMICS
Quarter 4 – Module 1
Effects of Contemporary
Economic Issues Affecting
Filipino Entrepreneur
SENIOR HIGH SCHOOL

2. Applied Economics – Grade 11
Alternative Delivery Mode
Quarter 4 – Module 1: Effects of Contemporary Economic Issues Affecting
Filipino Entrepreneur
First Edition, 2020
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Published by the Department of Education
Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio
Printed in the Philippines by ________________________
Department of Education –Region VII Schools Division of Negros Oriental
Office Address: Kagawasan, Ave., Daro, Dumaguete City, Negros Oriental
Tele #: (035) 225 2376 / 541 1117
E-mail Address: negros.oriental@deped.gov.ph
Development Team of the Module
Writer: Rosita Alaban Lozano
Editor: Jee Liza T. Inguito
Reviewer: Maria Acenith D. Pastor
Layout Artist: Bb. Boy Jonnel C. Diaz
Management Team: Senen Priscillo P. Paulin, CESO V Elisa L. Baguio, Ed.D
Joelyza M. Arcilla EdD, CESE Rosela R. Abiera
Marcelo K. Palispis, JD, EdD Maricel S. Rasid
Nilita L. Ragay, Ed.D Elmar L. Cabrera

3. 11
Applied Economics
Quarter 4 – Module 1
Effects of Contemporary
Economic Issues Affecting
Filipino Entrepreneur

4. 2
I
This module for Applied Economics explores all concepts
necessary in the Senior High School Accountancy, Business and
Management Track. This gives students a strong foundation which
will be used throughout their Economics studies.
It is aligned with the BEC of the Department of Education
following the prescribed MELCs (Most Essential Learning
Competencies. It has the following features proven to be valuable aids
to learning Economics even at home.
This section contains pre-activities like review of the prior
knowledge pertaining to Applied Economics. This module includes
the effects of Contemporary Economic Issues Affecting the Filipino
Entrepreneur.
LEARNING COMPETENCY:
▪ Analyze the effects of Contemporary Economic Issues Affecting
the Filipino Entrepreneur (CODE).
I
OBJECTIVES:
K: Identify the different challenges faced by Filipino
entrepreneurs;
S: Analyze the effects of contemporary issues
affecting business; and
A: Propose solutions to the economic problems that will be of
help to entrepreneurs in their locality.

5. 3
Task 1 Pre-Assessment
Multiple Choice: Choose the best answer and write your answers on your activity notebook.
1. It refers to the product or anything that a person spends their money on with the hope
that it will give them income in the future.
A. Investment C. Minimum Wage
B. Taxes D. Rentals
2. It is a property from which the owner received payment from the occupants, known as
tenants, in return for occupying or using the property.
A. Investment C. Rentals
B. Taxes D. Minimum Wage
3. This refers to the minimum amount of remuneration that an employer is required to
pay wage earners for the work performed during a given period.
A. Investment C. Taxes
B. Minimum Wage D. Rentals
4. It is a mandatory financial charge or some type of levy imposed by the government
organization in order to fund various public expenditures.
A. Taxes C. Investment
B. Rentals D. Minimum Wage
5. It is expected to be enough for the ordinary worker to afford things that he/she buys.
A. Investment C. Minimum Wage
B. Taxes D. Rentals
6. These are inflows for the government and outflows for the firms.
A. Investment C. Rentals
B. Minimum Wage D. Taxes
7. An example of these are assets that the company intends to hold for more than one
year.
A. Minimum Wage C. Taxes
B. Rentals D. Investment
8. It refers to the amount that an employee is entitled to and cannot be reduced by
collective agreement of an individual contract.
A. Rentals C. Investment
B. Taxes D. Minimum Wage
9. It refers to using one’s savings in a way that earns a return.
A. Rentals C. Investment
B. Taxes D. Minimum Wage
10. It refers to purchasing shares of corporate stock hoping to earn a return.
A. Rentals C. Investment
B. Taxes D. Minimum Wage
I

6. 4
’s In
Task 2: Read and Reflect
The global COVID-19 pandemic has affected millions of people. It has become a big
sanitary and health crisis. The severe effects of this pandemic has caused the strange
downturn of the global economy. Entrepreneurs are one of those people mostly affected by
this global pandemic. Most of the income generating establishments or institutions have shut
their operations down.
Questions:
Observe the local businesses in our country as seen in the news,
1. Are there some whose operation ceases because of the pandemic?
2. What are some of the reasons why their operation stopped?
3. How did these Filipino entrepreneurs respond to this global crisis?
4. What can you propose to help entrepreneurs affected by the global pandemic?
Task 3. Directions: Consider yourself as a young entrepreneur, imagine how your business
will go by looking at the Business Model below. On your activity notebook, draw the
business model below and write down your own interpretation and explanation of the
business model presented.
Operating
Assets
Products or
Services
Business
Owners
Banks
Cash
Asset
Use
2
2
Sale
s
3
5
4
Capital
Figure 1. Fundamental Business Model
Return
1
Cost
4
’s New

7. 5
Entrepreneurship is the ability to know what products and services are needed by
people and to be able to provide these things at the right time, at the right place and to the
right people and at the right price. The person who does entrepreneurship is called
“entrepreneur”. An entrepreneur organizes his own business, assumes all the risk and returns
on his investment, decides on what, how and how much of a food or service will be provided
and monitors and controls all the activities of the business.
Contemporary Issues Affecting Filipino Entrepreneurs
1. Investment and interest rate
When an entrepreneur starts, the very first issue that they encounter is how
they will get their capital. Some entrepreneurs really do not have the capital in the
beginning, some may have (out from their savings), but acquiring capital usually
comes in a form of loan in a bank or any other financial institutions or some get
financial assistance from the government. Entrepreneurs shoulder higher rates of
interest from the loan they made from a financial institution.
Investment
- It is an asset or item acquired with the goal of generating income.
Investing includes the purchase of new plants, new equipment, new homes
and net increases in inventories.
There are two types of investments:
1. Long-Term Investment
2. Short Term Investment
Long Term Investment
- These are assets of the company which include stocks, bonds and real
estate. Long term investments are assets that a company intends to hold
for more than a year.
Short Term Investment
- These are investments that must be readily be convertible to cash
Interest Rates
- It is the amount a lender charges for the use of assets expresses as a
percentage of the principal.
- It is usually noted on an annual basis known as the annual percentage rate
(APR)
- The assets borrowed could include cash, consumer, goods, or large assets
such as a vehicle or building.
is It

8. 6
2. Rentals
Starting entrepreneurs usually do not have their own space to start their
business. Some rent spaces on a mall or stalls to start the operation of the business.
Rentals has become an issue to starting entrepreneurs because doing a business does
not guarantee you a very big sale right away, so if you don’t make a sale and you still
have to pay a rent, it will really cause problem.
3. Minimum Wage
Entrepreneurs provide job opportunities that is why they have employees.
Entrepreneurs are called employer. As an employer, they are forced to implement the wage
order to all minimum wage earners regardless of their title, ranks, etc. The Philippines has
this law called “Minimum Wage Law”. This law establishes a minimum amount that an
employer can pay a worker for one day of labor.
4.Taxes
A tax is mandatory financial charge or some other type of levy imposed upon a
taxpayer by a governmental organization in order to fund various expenditures. Failure to
pay, along with evasion of or resistance to taxation, is punishable by law. Taxes are
considered inflows for the government and outflows for firms. The way tax is imposed often
is justified in the basis of one of two general principles:
a. The benefits received (Benefits-Received Tax Principle)
- This principle relates taxes to the benefits taxpayers receive from a public
good.
b. The ability to pay (Ability to Pay Tax Principle)
- This approach to taxes relates that those with a greater ability to pay are taxed
more.
There are four main types of national internal revenue taxes: income, indirect (value-
added and percentage taxes), excise and documentary stamp taxes, all of which are
administered by the Bureau of Internal Revenue (BIR).
Corporate Income Taxes
- The regular corporate income tax (RCIT) is 30% on net taxable income.
There is a minimum corporate income tax (MCIT) equivalent to 2% of gross
income, which applies beginning on the fourth year of commercial operation.
Withholding Taxes
- Most income is subject to withholding of taxes. If the payor is classified as a
top-20,000 corporation or a top-5000 individual engaged in business, it is
required to withhold on all payments for the purchase of goods (1%) and
services (2%). Withholding taxes on income subject to the RCIT are
creditable against the calculated liability.
Indirect Taxes
- A 12% VAT is imposed on the gross selling price on the sale, barter or
exchange of goods and properties, as well as on the gross receipts from the
sale of services within the Philippines, including the lease of properties.

9. 7
Excise Taxes
- In addition to VAT, excise taxes are imposed on the following: alcohol,
tobacco, petroleum products, automobiles, mineral products, and non-
essential goods such as jewelry and precious stones, perfumes, yachts and
other sport vessels.
Documentary Stamp Tax
- A documentary stamp tax (DST) is required for certain documents,
transactions or instruments specified in the tax code when the obligation or
right arises from Philippine sources or when the property is situated in the
Philippines.
8 Things that Hinder the Success of Filipino Entrepreneurs
Entrepreneurship is cool, challenging and fulfilling. However, it is also hard to
succeed. In the Philippines, aspiring Filipino entrepreneurs face even harder challenges than
their counterparts from the other parts of the world. There are many external and internal
factors that hinder entrepreneurs in our country in their journey to entrepreneurial success.
The following are only some of those things:
1. RED-TAPE
Despite of the Anti-red tape law in the Philippines, too much bureaucracy in the
government is still palpable. Business owners and entrepreneurs are still suffering from
expensive and time-consuming business registration and compliance processes. Many
entrepreneurs dream of having a duly registered business and wish to have income tax returns
but the government is making it hard for them to realize their dreams because of red-tape.
What to do?
Despite of red-tape, entrepreneurs should still work harder and produce more patience
to comply with the government’ requirements. Remember to comply first before you
complain.
2. POOR PUBLIC UTILITY SERVICES
Entrepreneurs in the Philippines, especially in the provinces, are continuously
annoyed by brownouts and slow internet connection. These poor services do not only destroy
the efficiency of their business operation but also cause them a lot of stress.
What to do?
Consider buying a generator or better use solar power which is a more environment-friendly
source of electricity. For the slow Internet, if a reliable Internet connection is vital to your
business operation, try to find a better location where internet is faster.

10. 8
3. LACK OF FINANCIAL SUPPORT
For startup owners who are not yet earning operating income, getting financial aid
from the government or obtaining a loan from banks in the Philippines seems to be
impossible. To get a loan, you must have a collateral or show some years of operating
income. It seems that the ones who can borrow money are those who don’t need to borrow.
We can understand the banks because it’s their business but for the government, I don’t get it.
What to do?
Get financial help from your family or from your close friends who can lend you money with
zero or little interest. Start a professional service business where you only sell your talents
and skills and don’t need big money to operate it.
4. LACK OF MARKETING SKILLS
Entrepreneurs need to sell, build good customer relationships, earn lasting profits, and
continuously grow their business. But many aspiring entrepreneurs in the Philippines don’t
spend enough on marketing campaigns. They rely too much on their product while forgetting
the other elements of marketing, such as place, price, people and promotion.
What to do?
Learn the fundamentals of marketing and practice your marketing skills. Also consider hiring
a marketing strategist or outsourcing a marketing firm to delegate the important marketing
tasks that your business needs in order to succeed.
5. INEFFECTIVE MANAGEMENT
Many entrepreneurs have passion for business, but don’t have a passion for
management and leadership. Managing and organizing things inside a business is a tough job.
Leading people is an even tougher job. Without the ability to motivate employees and build
stronger teams in their companies, entrepreneurs cannot succeed and grow their business.
What to do?
Practice your management and leadership skills. Attend seminars and workshops to champion
the leader in you. Learn how to be compassionate and how to make other people happy. You
have to make your team happy, motivated and more productive.
6. INABILITY TO INNOVATE
Technology evolves rapidly, so as the people. New business processes and marketing
methods emerge. For example, online channels like search engines and social media are now
vital for business promotion. Without adapting to these new strategies and changes,
entrepreneurs cannot become competitive.

11. 9
What to do?
Know your competition. Spy on your competitors. Don’t be left behind and lose your
competition. Understand that technology is not a problem but rather an opportunity or a
power that you should harness to advance your business. To start adapting to new
technologies, start from the basics. You don’t need to know it all at once. Read a book, read a
blog, or get a mentor to teach you.
7. LACK OF CUSTOMER CARE
Businesses need to consistently satisfy and make their customers happy. Without
giving satisfaction to customers, a business cannot survive in a long run. Many entrepreneurs
focus on earning money rather than earning loyal customers. Consequently, their profit
doesn’t last for long.
What to do?
Listen to your customers to understand their current and future needs. Get feedbacks
by putting a suggestion box in your store of office. Interact and answer your customers’
questions and inquirers online and offline. Moreover, you can also be a customer of your own
business to understand its strengths and weaknesses.
8. LACK OF SELF-GROWTH
Finally, what hinders the success of some Filipino entrepreneurs is the lack of
personal development. They lack self-control to concentrate on their core goals. They lack
self-leadership to lead others. They also lack patience, compassion and some love to always
make their customers smile. Without good habits and personal qualities, an entrepreneur
cannot advance. Without self-growth, an entrepreneur cannot also achieve business growth.
What to do?
Have enough time to spend alone with yourself. Use this time to meditate and reflect
on things that will help you understand yourself better. Think about your past mistakes and
learn how to correct them so that you can learn from them and become a better person. Don’t
forget to ask advice from your friends, parents and life coach.

12. 10
I Have Learned
’s More
Task 4
Directions: Create a poster about “Contemporary Economic Issues Affecting the Filipino
Entrepreneur” and explain what your poster means. Be guided with the criteria below. Write
your answers in your notebook.
Rubrics 5 4 3
Color and creativity The use of 5-color
combination or more with a
remarkable result of
creativity.
The use of at least 3-color
combination with
an acceptable work of
creativity
The use of one-color
activity with poor
creativity
Craftsmanship Output is Exceptionally
unique with much attention
to details.
Output is fair with less
attention to details.
Output is poorly made
with no attention to
details at all
Effort Work shows extra effort
exerted to make the output
extraordinary
Work shows basic
effort exerted to make the
output.
Work shows little to less
effort exerted to make
the output.
Punctuality The student submitted the
output on time.
The student submitted
the output a few weeks after
the submission period.
The student
submitted as
a “removal”.
Task 5
Directions: Complete the following statements. Write your statements in your activity
notebook.
1. As a Senior High student, I have learned that contemporary issues affects the
Contemporary Economic Issues Affecting the Filipino Entrepreneur because
______________________.
2. As a Senior High student, it is very important for us to learn to conceptualize how these
Filipino entrepreneurs will be able to overcome these contemporary issues because
_______________________.
3.Using the knowledge I have learned in this lesson, I will be able
to_______________________.

13. 11
I Can Do
Task 6 (150-Word Essay)
As a CEO of a business firm, how will you strengthen your business operations when
you are faced with the previously identified contemporary economic issues?
The rubrics below will be used to identify your score for this performance.
Level of
Achievement
General Approach Comprehension
Exemplary
(20 pts quizzes)
•Addresses the problem.
•States a relevant, justifiable
answer.
•Presents arguments in a logical
order.
•Demonstrates an accurate and complete
understanding of the problem.
•Backs conclusions with data and warrants.
•Uses 2 or more ideas, examples and/or
arguments that support the answer.
Adequate
(15 pts quizzes)
•Does not address the question
explicitly, although does so
tangentially.
•States a relevant and justifiable
answer.
•Presents arguments in a logical
order.
•Demonstrates accurate but only adequate
understanding of question because does not
back conclusions with warrants and data.
•Uses only one idea to support the answer.
•Less thorough than above.
Needs
Improvement
(10 pts quizzes)
•Does not address the problem.
•States no relevant answers.
•Indicates misconceptions.
•Is not clearly or logically
organized.
•Does not demonstrate accurate understanding
of the question.
•Does not provide evidence to support their
answer to the problem.
No answer (0 pt)
Task 7
Multiple Choice: Choose the letter of the correct answer for each item. Write your answers
on your activity notebook.
1. It is a financial inflow to the government but an outflow from the firm and is
mandatory, failure to pay so is punishable by law.
A. Interest C. Taxes

14. 12
B. Minimum Wage D. Investment
2. It is a law that establishes a minimum amount that an employer can pay a worker for
one day of labor.
A. Civil Code of the Philippines
B. Rent Control Act in the Philippines
C. Minimum Wage Law
D. Tariff and Customs Code
3. It is a property used by the occupants, also known as tenants, in which owner receives
payments of from using the property.
A. Taxes C. Investment
B. Rentals D. Interest Rate
4. It is the art of making an idea into a business.
A. Entrepreneurship C. Investing
B. Marketing D. Loan
5. It refers to the person who converts idea into a business
A. Investor C. Creditor
B. Debtor D. Entrepreneur
6. It refers to an asset or something that you acquire with a goal of having a return from
it in a form of income.
A. Taxes C. Interest
B. Investment D. Rental
7. These are taxes that are imposed on the following: alcohol, tobacco, petroleum
products, automobiles, mineral products, and non-essential goods such as jewelry and
precious stones, perfumes, yachts and other sport vessels.
A. Community Tax C. Vat
B. Excise Tax D. Documentary Stamp
8. The regular ________________ is 30% on net taxable income.
A. Corporate Income Tax C. Documentary Stamp Tax
B. Community Tax D. Value Added Tax
9. It is required for certain documents, transactions or instruments specified in the tax
code.
A. Documentary Stamp Tax C. Community Tax
B. Corporate Income Tax D. Value Added Tax
10. It refers to purchasing shares of corporate stock hoping to earn a return.
A. Investment C. Taxes
B. Rentals D. Minimum Wage

15. 13
Task
1
Pre-assessment
1.
a
2.
c
3.
b
4.
a
5.
c
6.
d
7.
D
8.
D
9.
C
10.
c
Task
2
(Answers
may
vary)
Task
3
(Answers
may
vary)
Task
4
(Answers
may
vary)
Task
5
(Answers
may
vary)
Task
6
(Answers
may
vary)
Task
7
(Answers
may
vary)
Task
7
Assessment
1.
c
2.
c
3.
b
4.
a
5.
d
6.
b
7.
b
8.
a
9.
a
10.
a

16. 14
References
Book
Roman L. D. Jr., (2016) “Applied Economics for Senior High School”. Mindshapers: Manila.
Ancheta, R. D. Ph. D., Torrefranca,N. and Ancheta, U. J., (2017) “Applied Economics Senior
High Edition”. Fastbooks Educational Supply, Inc: Sampaloc, Manila, Philippines.
Online
Anonymous (n.d.) “Impact of Covid-19 to Philippine Businesses.” Retrieved from:
[https://www.adb.org/publications/covid-19-impact-philippine-business], Accessed: March
20, 2021.
“Covid 19 Implications to Businesses” Retrieved from:
[https://home.kpmg/ph/en/home/insights/2020/03/the-business-implications-of-
coronovirus.html], Accessed: March 20, 2021
“Top Challenges of Businesses”, Retrieved from: [https://www.tmf-group.com/en/news-
insights/business-culture/top-challenges-philippines/], Accessed: March 20, 2021
“ Applied Economics”, Retrieved from: [https://pdfcoffee.com/applied-economic-quarter-1-
module-6-week6-1-pdf-free.html], Accessed: March 20, 2021
“Contemporary Economic Issues facing the Filipino Entrepreneurs.”, Retrieved
from:[https://www.coursehero.com/file/39314419/1-CONTEMPORARY-ECONOMIC-
ISSUES-FACING-THE-FILIPINO-ENTREPRENEUR-LECTURE-FOR-FINALSpdf/],
Accessed: April 4, 2021
Figures
Figure 1:“Fundamental Business Model.”Retrieved from: [
http://www.trieu.xyz/2018/08/business-model.html], Accessed: April 4, 2021

17. For inquiries or feedback, please write or call:
Department of Education – Schools Division of Negros Oriental
Kagawasan, Avenue, Daro, Dumaguete City, Negros Oriental
Tel #: (035) 225 2376 / 541 1117
Email Address: negros.oriental@deped.gov.ph
Website: lrmds.depednodis.net