This was about economic issues faced by Filipino entrepreneurs

1. CONTEMPORARY ECONOMIC ISSUES
FACING THE FILIPINO
ENTREPRENEURS

4. What is Entrepreneurship?
Entrepreneurship is
the art of turning an
idea into a business.
Venture Capitalist (Fred Wilson)

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.
What is Entrepreneurship?

6. What Entrepreneurs Do?
Entrepreneurs assemble and then integrate all the
resources needed –the money, the people, the business
model, the strategy—needed to transform an invention
or an idea into a viable business.

7. What are the Economic Issues faced by Filipino
Entrepreneurs?
? ? ? ?

8. INVESTMENT AND INTEREST
RATES
CONTEMPORARY ECONOMIC ISSUES FACING THE
FILIPINO ENTREPRENEURS

9. Investment is an asset or item acquired with
the goal of generating income or appreciation.
INVESTMENT
Appreciation refers to an increase in the value of
an asset over time.

10. Investing includes the purchase of new
plants, new equipment, new homes and net
increases in inventories.
INVEST TO EARN A
RETURN
Investing generally refers to using one's savings
in a way that earns a return.

11. 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.
LONG-TERM INVESTMENT

12. This is an investment that will mature to cash
within a one-year time period and is
considered liquid. When someone invests in
short-term stock and bonds, the thinking is
that these assets can be cashed in quickly.
SHORT-TERM
INVESTMENT

13. An asset is liquid if the owner can readily
access it, and it has an established market
where prices cannot be manipulated by one
buyer or seller.
SHORT-TERM
INVESTMENT

14. Short-term investments have two main
requirements.
1. These must readily be convertible to cash.
2. Management must intend to convert or sell
the investment within 3 to 12 months.
SHORT-TERM
INVESTMENT

15. INTEREST RATES
The interest rate is the amount a lender charges for the use
of assets expressed as a percentage of the principal. The
interest rate is typically 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.

16. A loan that is considered low risk by the
lender will have a lower interest rate.
A loan that is considered high risk will have a
higher interest rate.
INTEREST RATES

17. When are interest rates
applied?

18. Businesses take loans to fund capital projects and
expand their operations by purchasing fixed and
long-term assets such as land, buildings, and
machinery. Borrowed money is repaid either in a
lump sum by a pre-determined date or in periodic
installments.
INTEREST RATES

19. The money to be repaid is usually more than the
borrowed amount since lenders require compensation
for the loss of use of the money during the loan
period. The lender could have invested the funds
during that period instead of providing a loan, which
would have generated income from the asset.
INTEREST RATES

20. The difference between the total repayment
sum and the original loan is the interest
charged. The interest charged is applied to
the principal amount.
INTEREST RATES

21. Assume that you have P500,000 worth of savings and you want
to raise P1,000,000 to start your own business. You could borrow
funds from a bank, form a corporation and sell stock to the
public, or sell corporate bonds.
Which of these alternatives would you choose? Explain how you
would try to convince the bank or investors to provide you with
the funds you need.

22. RENTALS
CONTEMPORARY ECONOMIC ISSUES FACING THE
FILIPINO ENTREPRENEURS

23. A property from which the owner receives
payment from the occupant(s), known as
tenants, in return for occupying or using
the property.
RENTALS

24. Republic Act 9653, better known as the Rent Control
Act of 2009, is the law that protects housing tenants
(especially in the lower-income class) against
unreasonable rent increases. It also provides the
eviction rules that both landlords and tenants must
observe.
RENT CONTROL ACT IN THE
PHILIPPINES

25. The Civil Code has lease provisions that cover
rentals above PHP 10,000 and those not
covered by the Rent Control Act of 2009,
including commercial spaces and rent-to-own
units.
CIVIL CODE OF THE PHILIPPINES

26. MINIMUM WAGE
CONTEMPORARY ECONOMIC ISSUES FACING THE
FILIPINO ENTREPRENEURS

27. 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, which cannot be reduced by
collective agreement or an individual contract.
MINIMUM WAGE

28. This law establishes a minimum amount
that an employer can pay a worker for
one day of labor.
MINIMUM WAGE LAW
For example, the current minimum wage for nonagricultural work
is P491 a day and an average of P410 a day for agricultural work.

29. TAXES
CONTEMPORARY ECONOMIC ISSUES FACING THE
FILIPINO ENTREPRENEURS

30. A tax is a mandatory financial charge or some
other type of levy imposed upon a taxpayer by a
governmental organization in order to fund various
public expenditures.
TAXES
Failure to pay, along with evasion of or resistance
to taxation, is punishable by law.

31. Taxes are considered inflows for the
government and outflows for firms.
The way a tax is imposed often is justified in the
basis of one of two general principles: the benefits
received and the ability to pay.
TAXES

32. This principle relates taxes to the benefits
taxpayers receive from a public good.
BENEFITS-RECEIVED TAX
PRINCIPLE
For example, gasoline tax payments increase the more
people drive. The more people drive, the more they
benefit from roads that the gasoline tax finances.

33. This approach to taxes relates that those with
a greater ability to pay are taxed more.
ABILITY TO PAY TAX
PRINCIPLE
Income and property taxes usually rely on the
ability to pay tax approach.

34. REFERENCE:
 https://donboscolms.com/wp-content/uploads/2020/10/Lesson-5_Contemporary-
Economic-Issues.pptx
 https://www.youtube.com/watch?v=LWaOf5wFyS8