Learning Objectives :Learning Objectives :

Distinguished between developed and Distinguished between developed and developing countriesdeveloping countries

Define Development and its core valuesDefine Development and its core values Discuss relationship of entrepreneurship Discuss relationship of entrepreneurship

and human developmentand human development

HUMAN DEVELOPMENT HUMAN DEVELOPMENT and ENTREPRENEURSHIPand ENTREPRENEURSHIP

HUMAN DEVELOPMENT HUMAN DEVELOPMENT and ENTREPRENEURSHIPand ENTREPRENEURSHIP

COUNTRYCOUNTRY HDI RANK HDI RANK Life Life Literacy RateLiteracy Rate Ave. GDP/Ave. GDP/ Expectancy CAPITA Expectancy CAPITA

(USD(USD))NorwayNorway 11 78.978.9 100%100% 36,60036,600

Sweden Sweden 22 80.o80.o 100100 26,05026,050Australia Australia 33 79.179.1 100100 28,26028,260CanadaCanada 55 79.379.3 100100 29,46029,460USAUSA 88 7777 92.392.3 35,75035,750Japan Japan 99 7979 100100 28,94028,940Singapore Singapore 2525 7878 92.592.5 24,04024,040ThailandThailand 7676 69.169.1 92.692.6 7,0407,040PhilippinesPhilippines 8383 69.869.8 92.692.6 4,1704,170IndonesiaIndonesia 111111 66.666.6 87.987.9 3,2303,230India India 127127 63.763.7 61.361.3 2,6702,670BangladeshBangladesh 138138 61.161.1 41.141.1 1,7001,700

Source : UNDP HDI , 2003

Development and its Core Development and its Core ValuesValues

3 Core Values of Development3 Core Values of Development1.1. Life SustenanceLife Sustenance - the ability of the - the ability of the

economy to provide basic needseconomy to provide basic needs2.2. Self- EsteemSelf- Esteem – the extent one can – the extent one can

become a person with sense of one’s become a person with sense of one’s self-worth and self- respectself-worth and self- respect

3.3. Freedom from ServitudeFreedom from Servitude – the extent – the extent that a person is free in making choicesthat a person is free in making choices

Philippine Culture, Philippine Culture, Entrepreneurship and Entrepreneurship and DevelopmentDevelopment

Theories about Economic Development is Theories about Economic Development is brought about by: brought about by:

1.1. ““Invisible Hand “according to Invisible Hand “according to Adam Adam SmithSmith

2.2. ““Individuals who like to create and get Individuals who like to create and get things done not for profit but for more things done not for profit but for more noble motives “ according to noble motives “ according to Joseph Joseph SchumpeterSchumpeter

Development and its Core Development and its Core ValuesValues

According to Michael Todaro, a According to Michael Todaro, a development economist :development economist :

DevelopmentDevelopment is “ a multidimensional is “ a multidimensional process involving major changes in the process involving major changes in the social structures, population, attitudes, social structures, population, attitudes, and national institutions as well as and national institutions as well as acceleration of economic growth, the acceleration of economic growth, the reduction of inequality and eradication reduction of inequality and eradication absolute poverty “absolute poverty “

Nature and Importance of Nature and Importance of EntrepreneurshipEntrepreneurship

EntrepreneurEntrepreneur Individual who takes risks and starts Individual who takes risks and starts

something newsomething new

Entrepreneurial processEntrepreneurial process The process of pursuing a new venture, The process of pursuing a new venture,

whether it be new products into existing whether it be new products into existing markets, existing products into new markets, markets, existing products into new markets, and/or the creation of a new organizationand/or the creation of a new organization

77

Who is an Entrepreneur?Who is an Entrepreneur?

Entrepreneur – an individual who establishes and manages a business for the principal purposes of profit and growth… characterized principally by innovative behavior, and employs strategic management practices in the business.

Entrepreneur is one who :Entrepreneur is one who :

- perceives business opportunities in the perceives business opportunities in the environmentenvironment

- takes riskstakes risks- invests his own or borrows money to use in invests his own or borrows money to use in

businessbusiness- introduces innovations and improvementsintroduces innovations and improvements- makes plans and decisionsmakes plans and decisions- generate profitgenerate profit

Risks and RewardsRisks and Rewards

REWARDS:REWARDS: Make MoneyMake Money Be Your Own BossBe Your Own Boss Express CreativityExpress Creativity Feeling of Self-SatisfactionFeeling of Self-Satisfaction

- Gain self-confidenceGain self-confidence

1010

Risks and Trials Risks and Trials

The Risk of FailureThe Risk of Failure Unpredictable Business Unpredictable Business

ConditionsConditions Long Hours of Hard Long Hours of Hard

WorkWork Unwanted Unwanted

ResponsibilitiesResponsibilities

1111

WHY GO INTO BUSINESS?WHY GO INTO BUSINESS?RecognitionRecognitionProfitsProfitsHobbyHobbyWay of practicing Way of practicing

professionprofessionSecuritySecurityGenerate employmentGenerate employmentHelping othersHelping othersHas capitalHas capital

CULTURAL FACTORS that CULTURAL FACTORS that Contribute to the Contribute to the Emergence of Emergence of Entrepreneurs :Entrepreneurs :Cultural Values are ideals held by a community Cultural Values are ideals held by a community

as standard for social and interpersonal as standard for social and interpersonal behavior behavior

1.1. Views on CompetitionViews on Competition2.2. Time OrientationTime Orientation3.3. Regard for Entrepreneurs, Traders and Regard for Entrepreneurs, Traders and

CapitalistsCapitalists4.4. Conferment of Social RanksConferment of Social Ranks5.5. Work EthicsWork Ethics6.6. Attitude towards MoneyAttitude towards Money

Philippine CULTURAL VALUES Philippine CULTURAL VALUES and Entrepreneurship and Entrepreneurship

According to some foreigners Filipinos tend to :-Be lazy ( shades of Juan Tamad)-Mahina ang loob, segurista-Sobrang makisama-Balat sibuyas-Ningas –kugon-Bahala na-Gustong laging bida o sikat/alimango-Gaya-gaya

Philippine CULTURAL VALUES Philippine CULTURAL VALUES and Entrepreneurship and Entrepreneurship

Filipino Values favorable to Entrepreneurship “1.Pakkikipagkapwa 2.Lakas ng Loob3.Ethical Business Practice4.Harmonious Labor relationships5.Social Mobility6.Filipino traits to succeed

Filipino Values that deter Filipino Values that deter Entrepreneurship Entrepreneurship

1.Traditional child rearing practices2.Belief in the existence of all-powerful forces that control a person’s destiny3.Amor propio4. Bahala ba attitude5. Close family ties6. Colonial mentality7. Crab mentality