CONTEMPORARY ECONOMIC
ISSUES FACING THE FILIPINO
ENTREPRENEUR
Jean-Baptiste Say
(1767-1832)
“Entrepreneur”
Say’s law of demand
Which states that
“production drives demand.”
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
“is a subset of labor”
“an example of human
capital”.
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
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- Is largely
entails
putting
up
Innovators
a business
and assuming all
Visionaries
Riskrisks.
Takers
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
Innovators
Visionaries
Risk Takers
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
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• Creation of a new product
• Improvement of an existing
product
• Process improvement
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
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Innovation is about finding in a
niche market and creating a
product or service that
addresses a consumer need of
problem.
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
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- Is defined as a process that, as
the name implies, “disrupts” or
changes the structure of an
existing market.
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CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
HENRY SY
“Degree is not a
prerequisite to become an
entrepreneur.”
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
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DTI
Department of Trade and Industry
The agency is in of charge of
business registration and trade
policies.
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
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R.A No. 10679 – Youth Entrepreneurship Act
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-to support the development of young
individuals (18-30 y/o) in the field of
entrepreneurship and finance
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
Philippine Center for Entrepreneurship
(PCE)
-nonprofit organization that advocates
entrepreneurship in the country.
“GoNegosyo”
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
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Sole Proprietorship
-refers to business having
a single owner.
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
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Partnership
-refers to business having
more than one owner.
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
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Corporation
Conglomerate
-refers to business type -refers to two or more
where the owner and corporations under the
the business are
same ownership or
considered as separate
parent company.
entities.
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CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
1
DTI
Register business name.
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2
Barangay
Secure barangay clearance.
3
Municipality
Get a business permit.
4
BIR
Apply for tax identification number (TIN); secure
authority to print receipts; have ledgers and
invoices stamped.
5
SSS
Apply as self-employed owner.
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
Investments, Interest and Financing
Rent
Minimum Wage
Taxes
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
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-Interest is the cost of borrowing.
-Consumers typically borrow from
banks to finance spending and
investments.
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
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Grants and Loans
-it may be awarded to qualified
individuals under the Youth
Entrepreneurship Act.
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
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Two Sources of Financing
1. Use one’s own funds – come from
entrepreneur’s savings, loans, or
personal securities investments.
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CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
Two Sources of Financing
2. External financing – refers to sourcing
funds from third party investors who are
willing to provide the required capital in
exchange for a share in the ownership of the
idea.
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CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
Crowdsourcing
-is a term that describes
solicitation of funds and
outsourcing services or ideas to
people via the internet.
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
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-One of the highest costs that
drive down operating income.
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
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-Higher wage rates translate to
lower profit because companies
have to pay workers more.
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
-A higher income tax means less
disposable income available for the
business.
-there are local and national taxes to
settle.
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CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
Register, File, Pay
Register the business
File the applicable tax forms
Pay the calculated tax liability
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
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Percentage Tax
VAT
Capital Gains Tax
Income Tax
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
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Percentage Tax
-is paid by entities that are exempt
from VAT, with gross annuals sales not
exceeding a limit prescribed by the BIR,
and subject to additional guidelines.
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CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
VAT
-is a tax on sale, lease and importation
of goods and services and is subject to
additional guidelines.
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CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
Capital Gains Tax
-is imposed on the sale of capital
assets such as real estate properties
and stocks.
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CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
Income Tax
-is the most common tax filed by
employed and self-employed individuals
or those who derive their income from
business or professional practices.
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CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
Tax Reform for Acceleration and
Inclusion (TRAIN)
-otherwise known as Republic Act
10963, was signed into law last 19 of
December 2017.
20XX
CONTEMPORARY ECONOMIC ISSUES FACING
THE FILIPINO ENTREPRENEUR
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THANK YOU!