CONTEMPORARY
ECONOMIC ISSUES
AFFECTING FILIPINO
ENTREPRENEURS
(Applied Economics)

Lesson Objectives:
•Identify the different challenges faced by Filipino
entrepreneurs;
•Analyze the effects of contemporary issues affecting
business; and
•Propose solutions to the economic problems that will
be of help to entrepreneurs in their locality.

Entrepreneurship
• 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
•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

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.

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.

Four main Types of National Internal
Revenue Taxes
•Income,
•Indirect (value-added and percentage taxes),
•Excise
•Documentary stamp taxes

Activity 1:Read and Reflect
• Read the passage below and kindly answer the following
questions:
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:
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?