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• What is Economics

• Economics is a social science concerned with the production,


distribution and consumption of goods and services. It studies
how individuals, businesses, governments and nations make
choices on allocating resources to satisfy their wants and
needs, and tries to determine how these groups should
organize and coordinate efforts to achieve maximum output.
• Economic analysis often progresses through deductive
processes, much like mathematical logic, where the implications
of specific human activities are considered in a "means-ends"
framework.
• BREAKING DOWN Economics
• Unlimited Wants and Limited Means
• One of the earliest recorded economic thinkers was the 8th-
century BC Greek farmer/poet Hesiod, who wrote that labor,
materials and time needed to be allocated efficiently to
overcome scarcity. But the founding of modern Western
economics occurred much later, generally credited to the
publication of Scottish philosopher Adam Smith's 1776 book,
"An Inquiry Into the Nature and Causes of the Wealth of
Nations."
• The principle (and problem) of economics is that human beings
occupy a world of unlimited wants and limited means. For this
reason, the concepts of efficiency and productivity are held
paramount by economists. Increased productivity and a more
efficient use of resources, they argue, could lead to a higher
standard of living.
• Despite this view, economics has been pejoratively known as the
"dismal science," a term coined by by Scottish historian Thomas
Carlyle in 1849. He may have written it to describe the gloomy
predictions by Thomas Robert Malthus that population growth would
always outstrip the food supply, though some sources suggest
Carlyle was actually targeting economist John Stuart Milland his
liberal views on race and social equality.
TYPE OF ECONOMIC
• Microeconomics focuses on how individual consumers and
producers make their decisions. This includes a single person, a
household, a business or a governmental
organization. Microeconomics ranges from how these individuals
trade with one another to how prices are affected by the supply and
demand of goods. Also studied are the efficiency and costs
associated with producing goods and services, how labor is divided
and allocated, uncertainty, risk, and strategicgame theory.
• Macroeconomics studies the overall economy. This can include a
distinct geographical region, a country, a continent or even the whole
world. Topics studied include government fiscal and monetary policy,
unemployment rates, growth as reflected by changes in the Gross
Domestic Product (GDP) andbusiness cycles that result in
expansion, booms, recessions and depressions.
There are also schools of economic thought. Two of the most
common are Classical andKeynesian. The Classical view
believes that free markets are the best way to allocate resources
and the government’s role should be limited to that of a fair, strict
referee. In contrast, the Keynesian approach believes that
markets don’t work well at allocating resources on their own, and
that governments must step in from time to time and actively
reallocate resources efficiently.
• Some branches of economic thought emphasize empiricism in
economics, rather than formal logic — specifically,
macroeconomics or Marshallian microeconomics, which attempt
to use the procedural observations and falsifiable tests
associated with the natural sciences. Since true experiments
cannot be created in economics, empirical economists rely on
simplifying assumptions and retroactive data analysis. However,
some economists argue economics is not well suited to
empirical testing, and that such methods often generate
incorrect or inconsistent answers.
The Economics of Labor and Trade
• The building blocks of economics are the studies of labor
and trade. Since there are many possible applications of human
labor and many different ways to acquire resources, it is difficult
to determine which methods yield the best results in equilibrium.
• Economics demonstrates, for example, that it is more efficient
for individuals or companies to specialize in specific types of
labor and then trade for their other needs or wants, rather than
trying to produce everything they need or want on their own. It
also demonstrates trade is most efficient when coordinated
through a medium of exchange, or money.
Incentives and Subjective Value
• Economics, with its focus on labor, relates to the actions of
human beings. Most economic models are based on
assumptions that humans act with rational behavior, seeking
the most optimal level of benefit or utility. But of course, human
behavior can be unpredictable or inconsistent, and based on
personal, subjective values (another reason why economic
theories often are not well suited to empirical testing). This
means that some economic models may be unattainable or
impossible, or just not work in real life.
• Still, they do provide key insights for understanding the behavior
of financial markets, governments, economies – and human
decisions behind these entities. As it is, economic laws tend to
be very general, and formulated by studying human incentives:
Economics can say profits incentivize new competitors to enter
a market, for example, or that taxesdisincentivize spending.
Economic Indicators
• Economic indicators are reports that detail a country's economic
performance in a specific area. These reports are usually
published periodically by governmental agencies or private
organizations, and they often have a considerable effect on
stock , fixed income, and forex markets when they are released.
• Below are some of the major U.S. economic reports and
indicators used for fundamental analysis.
• Gross Domestic Product (GDP)
The Gross Domestic Product (GDP) is considered by many to be the
broadest measure of a country's economic performance. It
represents the total market value of all finished goods and services
produced in a country in a given year or other period (the Bureau of
Economic Analysis also issues a report monthly during the later
part of the month). Many investors, analysts and traders don't
actually focus on the final annual GDP report, but rather on the two
reports issued a few months before: the advance GDP report and
the preliminary report. This is because the final GDP figure is
frequently considered a lagging indicator, meaning it can confirm a
trend but it can't predict a trend. In comparison to the stock market,
the GDP report is somewhat similar to the income statement a public
company reports at year-end.
• Retail Sales
Reported by the Department of Commerceduring the middle of each
month, the retail sales report is very closely watched, and measures
the total receipts, or dollar value, of all merchandise sold stores. The
report estimates the total merchandise sold by taking sample data
from retailers across the country. This figure serves as a proxy of
consumer spending levels. Because consumer spending represents
more than two-thirds of the economy, this report is very useful to
gage the economy's general direction. Also, because the report's
data is based on the previous month sales, it is a timely indicator.
The content in the retail sales report can cause above normal
volatility in the market, and information in the report can also be used
to gage inflationary pressures that affect Fed rates.
• Industrial Production
The industrial production report, released monthly by the
Federal Reserve, reports on the changes in the production of
factories, mines and utilities in the U.S. One of the closely
watched measures included in this report is the capacity
utilization ratio, which estimates the level of production activity
in the economy. It is preferable for a country to see increasing
values of production and capacity utilization at high levels.
Typically, capacity utilization in the range of 82-85 percent is
considered "tight" and can increase the likelihood of price
increases or supply shortages in the near term. Levels below 80
percent are usually interpreted as showing "slack" in the
economy, which might increase the likelihood of a recession.
• Employment Data
The Bureau of Labor Statistics (BLS) releases employment data in a
report called the non-farm payrolls, on the first Friday of each month.
Generally, sharp increases in employment indicate prosperous
economic growth. Likewise, potential contractions may be imminent
if significant decreases occur. While these are general trends, it is
important to consider the current position of the economy. For
example, strong employment data could cause a currency to
appreciate if the country has recently been through economic
troubles, because the growth could be a sign of economic health and
recovery. Conversely, in an overheated economy, high employment
can also lead to inflation, which in this situation could move the
currency downward.
• Consumer Price Index (CPI)
The Consumer Price Index (CPI), also issued by the BLS,
measures the level of retail price changes (the costs that
consumers pay) and is the benchmark for measuring inflation.
Using a basket that is representative of the goods and services
in the economy, the CPI compares the price changes month
after month and year after year. This report is one of the more
important economic indicators available, and its release can
increase volatility in equity, fixed income, and forex markets.
Greater-than-expected price increases are considered a sign of
inflation, which will likely cause the underlying currency to
depreciate.
ENTREPRENEURSHIP

• Description
• Entrepreneurship is the process of designing, launching and
running a new business, which is often initially a small business.
The people who create these businesses are called
entrepreneurs.
• Entrepreneurship is the process of designing, launching and running a new business,
which is often initially a small business. The people who create these businesses are
calledentrepreneurs.[1][need quotation to verify][2]
• Entrepreneurship has been described as the "capacity and willingness to develop,
organize and manage a business venture along with any of its risks in order to make
a profit".[3]While definitions of entrepreneurship typically focus on the launching and
running of businesses, due to the high risks involved in launching a start-up, a significant
proportion of start-up businesses have to close due to "lack of funding, bad business
decisions, an economic crisis, lack of market demand—or a combination of all of these.[4]
• A broader definition of the term is sometimes used, especially in the field of economics. In
this usage, an Entrepreneur is an entity which has the ability to find and act upon
opportunities to translate inventions or technology into new products: "The entrepreneur is
able to recognize the commercial potential of the invention and organize the capital,
talent, and other resources that turn an invention into a commercially viable
innovation." [5] In this sense, the term "Entrepreneurship" also captures innovative
activities on the part of established firms, in addition to similar activities on the part of new
businesses.
• Entrepreneurship is the act of being anentrepreneur, or "the owner or manager of
a business enterprise who, by risk and initiative, attempts to make
profits".[6] Entrepreneurs act as managers and oversee the launch and growth of
an enterprise. Entrepreneurship is the process by which either an individual or a
team identifies a business opportunity and acquires and deploys the necessary
resources required for its exploitation. Early-19th-century French
economist Jean-Baptiste Say provided a broad definition of entrepreneurship,
saying that it "shifts economic resources out of an area of lower and into an area
of higher productivity and greater yield". Entrepreneurs create something new,
something different—they change or transmute values.[7] Regardless of the firm
size, big or small, they can partake in entrepreneurship opportunities. The
opportunity to become an entrepreneur requires four criteria. First, there must be
opportunities or situations to recombine resources to generate profit. Second,
entrepreneurship requires differences between people, such as preferential
access to certain individuals or the ability to recognize information about
opportunities. Third, taking on risk is a necessary. Fourth, the entrepreneurial
process requires the organization of people and resources.[8]
• The entrepreneur is a factor in and the study of entrepreneurship reaches back to the
work of Richard Cantillon and Adam Smith in the late 17th and early 18th centuries.
However, entrepreneurship was largely ignored theoretically until the late 19th and early
20th centuries and empirically until a profound resurgence in business and economics
since the late 1970s. In the 20th century, the understanding of entrepreneurship owes
much to the work of economist Joseph Schumpeter in the 1930s and other Austrian
economists such as Carl Menger, Ludwig von Mises and Friedrich von Hayek. According
to Schumpeter, an entrepreneur is a person who is willing and able to convert a new idea
or invention into a successful innovation. Entrepreneurship employs what Schumpeter
called "the gale of creative destruction" to replace in whole or in part inferior innovations
across markets and industries, simultaneously creating new products including new
business models. In this way, creative destruction is largely responsible for the dynamism
of industries and long-run economic growth. The supposition that entrepreneurship leads
to economic growth is an interpretation of the residual in endogenous growth theory and
as such is hotly debated in academic economics. An alternative description posited by
Israel Kirzner suggests that the majority of innovations may be much more incremental
improvements such as the replacement of paper with plastic in the making of drinking
straws.
• The exploitation of entrepreneurial opportunities may include:[9]
• Developing a business plan
• Hiring the human resources
• Acquiring financial and material resources
• Providing leadership
• Being responsible for both the venture's success or failure
• Risk aversion
• Economist Joseph Schumpeter (1883–1950) saw the role of the entrepreneur in the
economy as "creative destruction" – launching innovations that simultaneously destroy old
industries while ushering in new industries and approaches. For Schumpeter, the
changes and "dynamic disequilibriumbrought on by the innovating entrepreneur [were] the
norm of a healthy economy".[10]While entrepreneurship is often associated with new,
small, for-profit start-ups, entrepreneurial behavior can be seen in small-, medium- and
large-sized firms, new and established firms and in for-profit and not-for-profit
organizations, including voluntary-sector groups, charitable
organizations andgovernment.[11]
• Entrepreneurship may operate within anentrepreneurship ecosystem which often
includes:
• Government programs and services that promote entrepreneurship and support
entrepreneurs and start-ups
• Non-governmental organizations such as small-business associations and
organizations that offer advice and mentoring to entrepreneurs (e.g. through
entrepreneurship centers or websites)
• Small-business advocacy organizationsthat lobby governments for increased
support for entrepreneurship programs and more small business-friendly laws
and regulations
• Entrepreneurship resources and facilities (e.g. business incubators and seed
accelerators)
• Entrepreneurship education and training programs offered by schools, colleges
and universities
• Financing (e.g. bank loans, venture capital financing, angel investing and
government and private foundation grants)[12][
• In the 2000s, usage of the term "entrepreneurship" expanded to
include how and why some individuals (or teams) identify
opportunities, evaluate them as viable, and then decide to exploit
them.[13] The term has also been used to discuss how people might
use these opportunities to develop new products or services, launch
new firms or industries, and create wealth.[14] The entrepreneurial
process is uncertain because opportunities can only be identified
after they have been exploited.[15]
• Entrepreneurs tend exhibit positive biasestowards finding new
possibilities and seeing unmet market needs, and a tendency
towards risk-taking that makes them more likely to exploit business
opportunities.[16][17]
ETHNIC
• The term "ethnic entrepreneurship" refers toself-employed business owners who
belong to racial or ethnic minority groups in the United States and Europe. A long
tradition of academic research explores the experiences and strategies of ethnic
entrepreneurs as they strive to integrate economically into mainstream U.S. or
European society. Classic cases include Jewish merchants and tradespeople in
large U.S. cities in the 19th and early 20th centuries as well as Chinese and
Japanese small business owners (restaurants, farmers, shop owners) on the
West Coast.[39] In the 2010s, ethnic entrepreneurship has been studied in the
case of Cuban business owners in Miami, Indian motel owners of the U.S. and
Chinese business owners in Chinatowns across the United States. While
entrepreneurship offers these groups many opportunities for economic
advancement, self-employment and business ownership in the United States
remain unevenly distributed along racial/ethnic lines.[40] Despite numerous
success stories of Asian entrepreneurs, a recent statistical analysis of U.S.
census data shows that whites are more likely than Asians, African-Americans
and Latinos to be self-employed in high prestige, lucrative industries.[40]
Institutional
• The American-born British economist Edith Penrose has
highlighted the collective nature of entrepreneurship. She
mentions that in modern organizations, human resources need
to be combined in order to better capture and create business
opportunities.[41] The sociologist Paul DiMaggio (1988:14) has
expanded this view to say that "new institutions arise when
organized actors with sufficient resources [institutional
entrepreneurs] see in them an opportunity to realize interests
that they value highly".[42] The notion has been widely applied.
Feminist
• A feminist entrepreneur is an individual who applies feminist
values and approaches through entrepreneurship, with the goal
of improving the quality of life and well-being of girls and
women.[48] Many are doing so by creating "for women, by
women" enterprises. Feminist entrepreneurs are motivated to
enter commercial markets by desire to create wealth and social
change, based on the ethics of cooperation, equality and mutual
respect.[
Social
• Social entrepreneurship is the use of the bystart up companies and
other entrepreneursto develop, fund and implement solutions to social,
cultural, or environmental issues.[51]This concept may be applied to a
variety of organizations with different sizes, aims, and beliefs.[52] For-profit
entrepreneurs typically measure performance using business metrics
like profit, revenues and increases in stock prices, but social entrepreneurs
are eithernon-profits or blend for-profit goals with generating a positive
"return to society" and therefore must use different metrics. Social
entrepreneurship typically attempts to further broad social, cultural, and
environmental goals often associated with the voluntary sector[53] in areas
such as poverty alleviation,health care[54] and community development. At
times, profit-making social enterprises may be established to support the
social or cultural goals of the organization but not as an end in itself. For
example, an organization that aims to provide housing and employment to
the homeless may operate a restaurant, both to raise money and to
provide employment for the homeless people.
Nascent
• A nascent entrepreneur is someone in the process of establishing a business venture. [55]In this observation, the nascent
entrepreneur can be seen as pursuing an opportunity, i.e. a possibility to introduce new services or products, serve new
markets, or develop more efficient production methods in a profitable manner. [56][57] But before such a venture is actually
established, the opportunity is just a venture idea. [58] In other words, the pursued opportunity is perceptual in nature,
propped by the nascent entrepreneur's personal beliefs about the feasibility of the venturing outcomes the nascent
entrepreneur seeks to achieve.[59][60][61] Its prescience and value cannot be confirmed ex ante but only gradually, in the
context of the actions that the nascent entrepreneur undertakes towards establishing the venture, [62] Ultimately, these
actions can lead to a path that the nascent entrepreneur deems no longer attractive or feasible, or result in the
emergence of a (viable) business. In this sense, over time, the nascent venture can move towards being discontinued
or towards emerging successfully as an operating entity.
• The distinction between the novice, serial and portfolio entrepreneurs is an example of behavior-based
categorization.[63] Other examples are the (related) studies by,[64][65] on start-up event sequences. Nascent
entrepreneurship that emphasizes the series of activities involved in new venture emergence, [66][67][68] rather than the
solitary act of exploiting an opportunity. Such research will help separate entrepreneurial action into its basic sub-
activities and elucidate the inter- relationships between activities, between an activity (or sequence of activities) and an
individual's motivation to form an opportunity belief, and between an activity (or sequence of activities) and the
knowledge needed to form an opportunity belief. With this research, scholars will be able to begin constructing a theory
of the micro-foundations of entrepreneurial action.
• Scholars interested in nascent entrepreneurship tend to focus less on the single act of opportunity exploitation and
more on the series of actions in new venture emergence, [66][69],.[68] Indeed, nascent entrepreneurs undertake
numerousentrepreneurial activities, including actions that make their businesses more concrete to themselves and
others. For instance, nascent entrepreneurs often look for and purchase facilities and equipment; seek and obtain
financial backing, form legal entities, organize teams; and dedicate all their time and energy to their business [70]
Project-based
• Project entrepreneurs are individuals who are engaged in the repeated assembly or creation of
temporary organizations.[71] These are organizations that have limited lifespans which are devoted
to producing a singular objective or goal and get disbanded rapidly when the project ends.
Industries where project-based enterprises are widespread include: sound recording, film
production,software development, television production,new media and construction.[72] What
makes project-entrepreneurs distinctive from a theoretical standpoint is that they have to "rewire"
these temporary ventures and modify them to suit the needs of new project opportunities that
emerge. A project entrepreneur who used a certain approach and team for one project may have to
modify the business model or team for a subsequent project.
• Project entrepreneurs are exposed repeatedly to problems and tasks typical of the entrepreneurial
process.[73] Indeed, project-entrepreneurs face two critical challenges that invariably characterize
the creation of a new venture: locating the right opportunity to launch the project venture and
assembling the most appropriate team to exploit that opportunity. Resolving the first challenge
requires project-entrepreneurs to access an extensive range of information needed to seize new
investment opportunities. Resolving the second challenge requires assembling a collaborative team
that has to fit well with the particular challenges of the project and has to function almost
immediately to reduce the risk that performance might be adversely affected. Another type of project
entrepreneurship involves entrepreneurs working with business students to get analytical work done
on their ideas.
Millennial
• The term "millennial entrepreneur" refers to a business owner who is
affiliated with the generation that was brought up using digital technology
and mass media—the products ofBaby Boomers, those people born
during the 1980s and early 1990s. Also known asGeneration Y, these
business owners are well equipped with knowledge of new technology and
new business models and have a strong grasp of its business applications.
There have been many breakthrough businesses that have come from
millennial entrepreneurs such as Mark Zuckerberg, who
createdFacebook.[74] Despite the expectation of millennial success, there
have been recent studies that have proven this to not be the case. The
comparison between millennials who are self-employed and those who are
not self-employed shows that the latter is higher. The reason for this is
because they have grown up in a different generation and attitude than
their elders. Some of the barriers to entry for entrepreneurs are the
economy, debt from schooling and the challenges of regulatory
compliance.[75]
Entrepreneurship history in the
Philippines
• In the Philippines, entrepreneurship is viewed as important to
empowering the poor, enhancing production, and as an impetus
to innovation. The 1987 Philippine Constitution
recognizes entrepreneurship as an engine of economic
growth. ... In 2011, there were approximately 830,000 business
enterprises in the Philippines.Nov 15, 2013
Development of Entrepreneurship in the
Philippines
• History of Entrepreneurship in the Philippines Entrepreneurship,
in general, started during the dawn of civilization, when one
artisan trades one of his crafts for another item during the age
of barter system or trades his craft for gold coins when coinage
replaced the barter system. This system went unchanged up
until the Middle Ages, when banking was considered another
form of entrepreneurship, wherein bankers would lend kings
and clergymen funds for their projects.
Definition of an Entrepreneur

But the term entrepreneur became first used during the 16th
century, denoting that an entrepreneur is a person who
undertakes a business venture. The term was refined during the
17th and 18th centuries when the industrial revolution was
gaining speed in developed countries and in their colonies. Even
in the Philippines, then a colony of Spain, the business
atmosphere is taking shape. With the Manila-Acapulco trade
system, many businessmen were becoming successful. But
mainly it was a one-sided affair, wherein only Filipinos of Spanish
descent can have opportunities.
Background of Entrepreneurship in the
Philippines
• San Miguel Brewery can trace back its history to Spanish-Filipino entrepreneurs
Enrico Barretto and Pablo Roxas who were granted royal grants by Spain. Bank
of the Philippine Islands and Meralco can also be traced back to its start as royal
grants by Spain. That changed during the American occupation. Americans were
espousing many freedoms, including free enterprise. During the pre-war years,
many companies, mainly with American help, came into fruition. Companies like
PLDT, Globe Telecom, Squires Bingham & Co. and the franchising of Coca-Cola
helped many entrepreneurs and also helped the shaping-up of the economy
during those times. Even during times of war and the Japanese occupation, many
entrepreneurs risked their investments just to make money and make their lives
comparatively secure. Examples of these are theatre and music club owners and
restaurateurs, who previously tended to Americans, came to serve Japanese
officers and diplomats. Philippine Airlines was started before the attack on the
Philippines by the Japanese, and San Miguel brewery continued making
beverages even though the war is in full swing.
Entrepreneur People in the Philippines
and Their Companies
• Entrepreneurship in the Philippines greatly diversified after the war and during the times of Martial
Law. Companies like ABS-CBN, Petron, GMA Network, Metrobank, Max’s, FPIC, ICTSI, Jollibee,
SM Prime and JG Summit Holdings were founded either after the war or during the Marcos
presidency and helped not only the economy of the country, but also helped reconstruct the
infrastructure of the country and helped it rise up to competitive status globally. Even in the present
condition in the country’s economy, many entrepreneurs still strive and risk just helping not only
themselves, but others as well.
• One good example would be Joey Conception’s GoNegosyo and other social entrepreneurship
efforts. Many see profit from the age of electronics. IP E-Games and Level-Up were companies who
saw the potential in the internet and gaming industry, and industry that is quickly gaining ground in
the country. The companies mentioned in this paper are mainly now corporate giants, who have
been know throughout the country, but in the world of entrepreneurship, the small-fry and unnamed
in this paper are the ones who are shaping the economy.
• The Philippines is an entrepreneurial country. According to recent statistics, small and medium-
sized enterprises (SME), including micro-enterprises, account for 99 percent of all business
establishments and 60 percent of the exporting firms in the Philippines. According to the
Department of Trade and Industry, SME’s currently employ about 55 percent of the Philippine labor
force and contribute 30 percent to total domestic sales volume.
Philippines’ Entrepreneurship: Conclusion

• If this is true, then entrepreneurship is the key to the success of


the economy of the country, and that people should try to risk
and venture into business in order to not only help themselves,
but also others and the whole country as well. These small
enterprises are the bricks that build our economy.

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