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ENTREPRENEURSHIP

IN ECONOMIC
DEVELOPMENT
Introduction:
Economic Development
Increase in wants (needs) coupled with
increase in means (income) to meet the
wants is economic development.

Wants here mean goods and services we


want to own or acquire. Means are the
money related forms that are required to
meet wants.
Economic Development
Development economics seeks to
determine how poor countries can be
transformed into prosperous ones.
Strategies for transforming a
developing economy tend to be unique,
because the social and political
background of countries can vary
dramatically.
Economic Development
Branch of economics that focuses on
improving the economies of developing
countries.
Development economics considers how
to promote economic growth in such
countries by improving factors like
health, education, working conditions,
domestic and international policies and
market conditions.
Economic Development
Philippines economic development has been very
fast in recent years.

http://www.worldbank.org/en/news/feature/2017/05/04/philippines-economic-update-april-2017
Economic Development
Economic development in Philippines has been low
because of high government spending.
A hard working service sector and large allowance
from millions of Filipinos working abroad played an
important role in Philippines economic development.
BUT.. economic development of Philippines is
required to alleviate poverty from that country and
address imbalances in distribution of income.
It also stresses on high population growth.
The Philippine Economy
QUESTIONS?

How are you going to describe the


current situation of the Philippine
economy?
The Philippine Economy
THINK?

Do you believe that development is based on


the aspects where they belong to our country.

The economic aspect there is based on the


purchasing power of people while social aspects is
based on life expectancy at birth and adult literacy
which is known as educational attainment.
The Philippine Economy
QUESTIONS?
The question still exist in the nation's
community development.

Why do most Filipinos choose to leave


their homeland and live and work
elsewhere?
Based on findings and
observations including opinions
First, when a graduates apply
jobs after their graduation, it
was resulted to lack of good-
paying jobs because there are
more job opportunities abroad
and the standard of living is
better in most countries than in
the Philippines.

Most of all, the salary is much


higher in other countries which
is true in terms of actual job.
Based on my findings and
observations including opinions
Second, the fulfillment of the dreams because
most Filipino people choose to leave their
homeland and live and work elsewhere
because they want to fulfill a childhood dream.
Based on my findings and
observations including opinions
Third, there is a feeling of
desperation because the
Philippines compare to well-
developed countries is
backward in many ways and
seems hopeless in getting away
from a culture of corruption that
most Filipinos want to leave the
land of their birth to work and
live in other countries where
they could find peace and
prosperity.
What is Entrepreneurs?
Entrepreneurs create jobs, disperse
wealth and encourage regional
development.
Entrepreneurs are the basis of
economic development, because they
create new businesses and products
separate from large corporations.
An Entrepreneur :
An Entrepreneur A person who holds a
vision, spirit, intelligence and an art of
making an enterprise run successfully.
But what is the role of an entrepreneur from
the social aspect. He as a part of society
also has to play an important role in
bringing in new ideas, methods and objects
for the welfare of the society.
Who is Entrepreneurs
Entrepreneurs are essential to economic
development. Since entrepreneurs are self-employed
and create new businesses, they stimulate the local
economy in many ways.
Their new businesses create jobs that were not there
before, which reduces the unemployment rate and
puts more money into circulation.
Producing new goods and services also helps
stimulate the flow of money. These smaller
businesses keep wealth distributed much better than
larger corporations.
Significance of Entrepreneurs
Entrepreneurial efforts encourage local development, and the
collective force of entrepreneurs has an impact on the overall
economy for the country.
Entrepreneurs also contribute to local and national happiness
due to adding jobs and money to the economy. In addition, the
act of starting something new has a significant impact on their
own happiness and self-esteem.
This positively impacts economic development, since people
who are happy are more likely to go out and spend money.
Entrepreneurs also help improve living standards with locally
sourced options that offer lower prices, help form a sense of
community due to the localization of the product and encourage
people to seek out new types of business and work on their
own.
Entrepreneurship, Innovation,
and Economic Development
Entrepreneurship and innovation can help
spur economic development and thus
address critical issues and enhance value in
important sectors by
generating new ways to serve people whose
needs are not currently being met,
better addressing those needs that are being
met, or
doing either or both at lower cost.
Types of Entrepreneurship
Arbitrage
Discovering the price gaps that exist and
acting on that margin to close the gap
Buy low Sell high
Innovative
Discovering new trading opportunities
(Smith)
Discovering lower cost or new technologies
(Schumpeter)
ROLE OF ENTREPRENEURSHIP
IN ECONOMIC DEVELOPMENT
Industrial development could be said to be a major component
of economic development and industrial development
envisages entrepreneurial development i.e., entrepreneurial
development leading to industrial development and the later
leading to economic development, and so, the emphasis on
entrepreneurial development.
Effectiveness of small enterprises depends upon the
entrepreneurial and managerial capabilities of those involved
in the business .management and entrepreneurial skills must
be blended in the small enterprise owners total make-up.
He/she must be both efficient and effective and, skill has to be
developed into an effective manager by inculcating in him/her
the entrepreneurial spirit.
Significant Contributions
There is a wide range of significant contributions that
entrepreneurs and entrepreneurship can make to the
development process. These include the following:
1. Entrepreneurship raises productivity through technical and other
forms of innovation.
2. Entrepreneurship is a powerful tool of job creation.
3. Entrepreneurs facilitate the transfer of technology.
4. Entrepreneurs play a strategic role in commercializing new
inventions and products.
5. Entrepreneurs play critical role in the restructuring and
transformation of economy.
6. Entrepreneurs help reduce the ossification of established social
institutions and the concentration of economic power.
7. Entrepreneurs and Entrepreneurial behavior can breathe vitality
into the life of large corporations and governmental enterprises.
8. Entrepreneurs make markets more competitive and there by
reduce both static and dynamic market inefficiencies.
Significant Contributions
9. Micro- entrepreneurs operating in the informal sector
circumvent established government authority when government
and their programs inhibit economic development.

10. Entrepreneurs stimulate a redistribution of wealth income and


political power within societies in ways that are economically
positive and without being politically disruptive.

11. Entrepreneurs improve the social welfare of a country by


harnessing dormant previously overlooked talent.

12. Entrepreneurs create new markets and facilitate expansion


into international markets.
Role of an Entrepreneur :
Role Of An Entrepreneur Entrepreneurs
occupy a central position in a market
economy.
For it's the entrepreneurs who serve as the
spark plug in the economy's engine, activating
and stimulating all economic activity.
The economic success of nations worldwide is
the result of encouraging and rewarding the
entrepreneurial instinct.
Ability / Characteristics /Skills

Alertness is the entrepreneur's ability to


perceive new economic opportunities that no
prior economic actor has yet recognized.
The entrepreneur might foresee demand for a
new product that has not hitherto been
manufactured; he might then decide to
manufacture that good himself.
Ability / Characteristics /Skills
Responsibilities In addition to their
investments in the business, owners are
usually required to personally guarantee the
responsibilities of the business.
This puts owners at significant financial risk and
exposure. As such, successful owners will ensure
that their businesses are properly cared for to ensure
healthy growth.