HUMAN DEVELOPMENT and ENTREPRENEURSHIP

Learning Objectives :
Distinguished between developed and developing countries Define Development and its core values Discuss relationship of entrepreneurship and human development

HUMAN DEVELOPMENT and ENTREPRENEURSHIP

COUNTRY
Norway Sweden Australia Canada USA Japan Singapore Thailand Philippines Indonesia India Bangladesh

HDI RANK
1 2 3 5 8 9 25 76 83 111 127 138

Life Literacy Rate Expectancy 78.9 100%

80.o 79.1 79.3 77 79 78 69.1 69.8 66.6 63.7 61.1 100 100 100 92.3 100 92.5 92.6 92.6 87.9 61.3 41.1

Ave. GDP/ CAPITA (USD) 36,600

26,050 28,260 29,460 35,750 28,940 24,040 7,040 4,170 3,230 2,670 1,700

Source : UNDP HDI , 2003

Development and its Core Values

3 Core Values of Development 1. Life Sustenance - the ability of the economy to provide basic needs 2. Self- Esteem the extent one can become a person with sense of ones self-worth and self- respect 3. Freedom from Servitude the extent that a person is free in making choices

Philippine Culture, Entrepreneurship and Development

Theories about Economic Development is brought about by: 1. Invisible Hand according to Adam Smith 2. Individuals who like to create and get things done not for profit but for more noble motives according to Joseph Schumpeter

Development and its Core Values

According to Michael Todaro, a development economist : Development is a multidimensional process involving major changes in the social structures, population, attitudes, and national institutions as well as acceleration of economic growth, the reduction of inequality and eradication absolute poverty

Nature and Importance of Entrepreneurship

Entrepreneur
Individual who takes risks and starts something new

Entrepreneurial process
The process of pursuing a new venture, whether it be new products into existing markets, existing products into new markets, and/or the creation of a new organization

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.
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Entrepreneur is one who :

- perceives business opportunities in the environment - takes risks - invests his own or borrows money to use in business - introduces innovations and improvements - makes plans and decisions - generate profit

Risks and Rewards

REWARDS: Make Money Be Your Own Boss Express Creativity Feeling of Self-Satisfaction - Gain self-confidence

Risks and Trials

The Risk of Failure Unpredictable Business Conditions Long Hours of Hard Work Unwanted Responsibilities

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WHY GO INTO BUSINESS?

Recognition Profits Hobby Way of practicing profession Security Generate employment Helping others Has capital

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CULTURAL FACTORS that Contribute to the Emergence of Entrepreneurs :

Cultural Values are ideals held by a community as standard for social and interpersonal behavior
1. Views on Competition 2. Time Orientation 3. Regard for Entrepreneurs, Traders and Capitalists 4. Conferment of Social Ranks 5. Work Ethics 6. Attitude towards Money

Philippine CULTURAL VALUES 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 and Entrepreneurship

Filipino Values favorable to Entrepreneurship 1. Pakkikipagkapwa 2. Lakas ng Loob 3. Ethical Business Practice 4. Harmonious Labor relationships 5. Social Mobility 6. Filipino traits to succeed

Filipino Values that deter Entrepreneurship

1.Traditional child rearing practices 2.Belief in the existence of all-powerful forces that control a persons destiny 3.Amor propio 4. Bahala ba attitude 5. Close family ties 6. Colonial mentality 7. Crab mentality