ECONOMIC DEVELOPMENT

THROUGH
ENTREPRENEURSHIP
 WHAT IS ECONOMIC
DEVELOPMENT?

“Economic development essentially means a

process of upward change whereby the real
per capita income of a country increases over
a period of time.”
 TO BEGIN WITH, LET’S ASK FIRST,
WHY ENTREPRENEURS ARE SO VITAL IN THE
ECONOMIC GROWTH

DOMINOES
FALLING
 ENTREPRENEURS

NEW BUSINESS

CREATE JOBS

STRENGTHEN MARKET
COMPETITION

INCREASE PRODUCTIVITY
 INVESTING IN PRODUCTS AND SERVICES
PEOPLE NEED

1. Entrepreneurs create new businesses in response to unmet needs and demands in the market. –That’s why they
create new business.

2. There is an opportunity to provide a product or service that is not currently in existence, or otherwise
available.

3. Entrepreneurs launch new enterprises in response to market needs, are key players when it comes to
fostering economic growth in a region.

4. They enable access to goods and services that populations require in order to be productive.
 CREAT JOB OPPORTUNITIES

1. Entrepreneurs are by nature and definition job creators, as opposed to job seekers.

2. This kind of job creation by new and existing businesses is again is one of the basic goals of economic
development.

3. New businesses need to hire employees.

4.They create jobs and these economic opportunities uplift and support communities through increasing
the quality of life and overall standard of living.

5. Self-employment as an entrepreneur offers the best way for independent and honorable life.
 BALANCED REGIONAL DEVELOPMENT

1. Entrepreneurs setting up new businesses and industrial units help with regional development by
locating in less developed and backward areas.
(Example: Entrepreneurs from different provinces in the Philippines]
2. Entrepreneurs in the public and private sectors help to remove regional disparities in economic
development.
3. Technology has made it possible for small, entrepreneur-led businesses to expand into regional and
global markets.
[Using the powerful tool of social media like Facebook to generate sales]
4. When new businesses export goods and services to nearby regions, these enterprises contribute directly
to a region’s productivity and earnings.
[Example: Exporting goods from Region 1 – Ilocos Norte to Region 2 –Cagayan]
 NEW TECHNOLOGIES PROMOTE
EFFICIENCY

1. The ability to turn ideas into new products and services that people need is the fount
of prosperity for any developed country.

2. Periods of rapid innovation historically have been accompanied by periods of strong

economic growth.

3. Creating innovative products and solutions requires an educated population and an

environment where collaborative work can take place.
 INNOVATION IMPACTS SOCIO-ECONOMIC OBJECTIVES

1. Innovative business practices create efficiency and conserve resources.

2. Entrepreneurs set up industries which remove scarcity of essential commodities and introduce
new products.
3. Production of goods on mass scale and manufacture of handicrafts, etc., in the small scale
sector help to improve the standards of life of a common man.
[Example, automation that reduces production costs and enables faster production will make a
business unit more productive, while also providing its customers with the same goods at lower
prices]
 COMMUNITY DEVELOPMENT

1. Economic development doesn’t always translate into community development.

2. Community development requires infrastructure for education and training, healthcare, and
other public services.
3. For example, you need highly educated and skilled workers in a community to attract new
businesses.
4. If there are educational institutions, technical training schools and internship opportunities,
that will help build the pool of educated and skilled workers.
ETHICS AND SOCIAL
RESPONSIBILITY OF
ENTREPRENEURS
 WHAT IS ETHICS?
~IT IS THE STUDY OF MORAL
OBLIGATION INVOLVING THE
DISTINCTION BETWEEN THE RIGHT AND
WRONG.
 THE EFFECT OF ADHERANCE TO THE ETHICAL
STANDARDS

1. ADHERANCE TO THE ETHICAL STANDARDS

2. ESTABLISHMENT OF TRUST
[BETWEEN BUYERS AND SELLERS / BETWEEN LENDERS AND BORROWERS]

3. SMOOTH FLOW OF BUSINESS EXCHANGE

THE ETHICAL BEHAVIOUR REQUIRED OF ENTREPRENEURS IN
DETERMINED BY T HE FOLLOWING

1. THE PUBLIC

2. INTEREST GROUPS

3. BUSINESS ORGANIZATIONS

4. THE INDIVIDUAL’S PERSONAL MORALS AND VALUES

 HOW THE ETHICAL BEHAVIOUR IS ENCOURAGED

1. ADOPTION OF A CODE OF ETHICS

2. INSTITUTION OF REWARDS AND PUNISHMENTS CONCERNING
ETHICAL BEHAVIOUR
3. ADOPTION OF INTERNAL PROGRAMS FOR RESOLVING TOPICS
4. CREATION OF ETHICS REVIEW COMMITTEES
5. PROVISION OF TRAINING IN ETHICS FOR EMPLOYEES
6. TOP MANAGEMENT SUPPORT
 CODE OF ETHICS

IT IS A FORMAL DOCUMENT INDICATING THE

ENTREPRENEURSHIP’S ADAPTED PRINCIPLES OF
APPROPRIATED BEHAVIOUR.
 REWARDS AND PUNISHMENTS CONCERNING
ETHICAL BEHAVIOUR

PUNISHMENT COULD TAKE THE FORM OF DISMISSAL, DEMOTION,

SUSPENSION, OR REPRIMAND.

REWARDS MAY BE GIVEN IN THE FORM OF CASH GIFTS,

PROMOTION, OR CITATION.
 ETHICS COMMITTE

THE COMMITTEE IS USUALLY COMPOSED OF COMPANY

EMPLOYEES AS WELL AS SOME WHO ARE NOT EMPLOYED BY THE
COMPANY.

THESE PERSONS HAVE UNDERGONE SPECIAL TRANING IN

ETHICS.
 PROVISION OF TRAINING IN ETHICS FOR EMPLOYEES

COMPANY PERSONNEL WHO ARE EXPOSED TO THE ACTIVITIES

THAT ARE ETHICAL CHANGED MUST BE PROVIDED WITH
SUFFICIENT TRAINING IN ETHICS.
 ETHICAL ISSUES FACING ENTREPRENEURS

1. BETWEEN THE COMPANY AND CUSTOMERS.

2. BETWEEN THE COMPANY AND ITS PERSONNEL AND
EMPLOYEES.
3. BETWEEN THE COMPANY AND ITS BUSINESS ASSOCIATES.
4. BETWEEN THE COMPANY AND THE INVESTORS AND FINANCIAL
COMMUNITY.
 RELATIONS WITH CUSTOMERS

1. THE RIGHT TO BE SAFE

2. THE RIGHT TO BE INFORMED
3. THE RIGHT TO BE SAFE
4. THE RIGHT TO BE INFORMED
5. THE RIGHT TO BE TO CHOOSE
6. THE RIGHT TO BE HEARD
 RELATIONS WITH PERSONNEL AND EMPLOYEES

GOOD ETHICAL CONDUCT REQUIRES ENTREPRENEURS TO BE AWARE

OF THEIR RESPOSIBILITIES TO EMPLOYEES. THESE ARE THE
FOLLOWING;

1. WORKPLACE SAFETY
2. QUALITY OF LIFE ISSUES
3. AVOID DISCRIMINATION
4. PREVENTING SEXUAL HARASSMENTRT
“ETHICS MUST BEGIN AT THE TOP OF AN ORGANIZATION, IT IS A
LEADERSHIP ISSUE AND A CHIEF EXECUTIVE MUST SET AN EXAMPLE.”