ROLE OF ENTREPRENEURSHIP IN ECONOMIC GROWTH AND DEVELOPMENT1

Answer 1

“An increase in the number of entrepreneur leads to an increase in economic

growth.”

Question 2

This was according to the works of

Answer 2

Joseph Schumpeter,

Question 3

Joseph Schumpeter, a professor

Answer 3

economics in University of Harvard

Question 4

who studied the relationship of
entrepreneurship and economic growth.

Answer 4

Joseph Schumpeter,

Question 5

According to him, the effect of
increased number of entrepreneur results to a

Answer 5

“concrete expression of their
skills, and more precisely, their propensity to innovate,”

Question 6

He described this
innovative activity as the

Answer 6

“carrying out of new combinations”

Question 7

He described this
innovative activity as the “carrying out of new combinations” which is
distinguished by five cases:

Answer 7

1) The introduction of a new product;
2) The introduction of a new method of production;
3) The opening of a new market;

4) The conquest of a new source of supply of raw materials or half-
manufactured goods; and

5) The carrying out of the new organization of any industry, like the creation
or the breaking-up of a monopoly position.

Question 8

Through this innovative activity, an entrepreneur seeks to create

Answer 8

new
profit opportunities.

Question 9

The increase in productivity mentioned above is a result of investments
stimulated by innovation, According to

Answer 9

R.D. Hisrich and M.P. Peters

Question 10

“The role of entrepreneurship in economic development involves more
than just increasing per capita output and income, it also

Answer 10

involves in initiating
and constituting change in the structure of business and society.

Question 11

Agribusiness encompasses primary production, upstream economic
activities related to the production and distribution of all inputs and services
used in on-farm production, and downstream industries involving all of
processing, manufacturing, transportation, and related services involved in
transforming raw agricultural produce into finished products for domestic
consumption or export.

Answer 11

(Manuel Q. Lim Jr.)

Question 12

From the above definition of agribusiness and earlier definition of
entrepreneurship, we could conclude that Agribusiness Entrepreneurship

refers

Answer 12

innovation in the agribusiness sector

Question 13

From the above definition of agribusiness and earlier definition of
entrepreneurship, we could conclude that refers to the innovation in the agribusiness sector (including all of its sub-
sectors) for the purpose of creating opportunities that could lead to increase

investments thus initiating economic growth under the conditions of risk and
uncertainty.

Answer 13

Agribusiness Entrepreneurship

Question 14

Importance of Agribusiness Entrepreneurship

Answer 14

Creates Employment
Improves Quality of Life
Contributes to more equitable distribution of income and therefore eases
social unrest
Entrepreneurial undertakings contribute significantly to the continuous
improvement of living standards
Utilizes and mobilizes resources for great national productivity
Brings social benefits through the government

Question 15

When entrepreneurs put up a business, they often
times need to hire or employ at least one or two other people in order to get
things done. When individuals are employed, they are able to feed their
families, support their children through school, provide them with decent
homes, acquire medical services whenever needed, and contribute to
government revenues through payment of income taxes.

Answer 15

Creates Employment

Question 16

Entrepreneurs continuously innovate and develop
new products and services based on what they perceive as the needs of
society. They also look for ways in which these goods and services could be
more efficiently produced. Such innovative efforts lead to better machines
and more efficient production systems.

Answer 16

Improves Quality of Life

Question 17

By putting up an enterprise in the locality entrepreneurs are
actually dispersing the benefits of development to other parts of the country.
When many segments of society are left deprived, social tensions (manifested
by immigration and overcrowding in urban areas, threats of revolution and
dissident movements) may arise. When income is more evenly distributed,

Answer 17

Contributes to more equitable distribution of income and therefore eases
social unrest

Question 18

The· development of new products and
the delivery of needed services make life easier and comfortable for society
in general.

Answer 18

Entrepreneurial undertakings contribute significantly to the continuous
improvement of living standards

Question 19

Our
country will develop faster economically if none of its resources were idle or
unused. Entrepreneurship also provides an avenue for making productive use
of capital resources such as family or personal savings. Otherwise, these may
remain unutilized or channeled to unproductive ventures such as gambling or
luxury spending, such as buying imported goods.

Answer 19

Utilizes and mobilizes resources for great national productivity

Question 20

The government revenues
collected from taxes, duties and licenses paid by the entrepreneurs. The
government allocates the disbursement of these revenues to different
services to and projects for communities. These services and projects come
in the form of infrastructure such as roads and bridges, educational and
medical facilities and services, and maintenance of peace and order.

Answer 20

Brings social benefits through the government

Question 21

The low productivity of agricultural production
is attributed to small and dispersed farm landholdings which hamper
operations of economies of scale. Industry clustering and a cooperative
system are proposed for efficient and effective operations.

Answer 21

Productivity Improvement

Question 22

Only 1.3 million hectare of farmland is
irrigated, of which 815,000 ha, 40percent are serviced by efficient full scale
irrigation. Total area under rice cultivation is 3.12million hectare.

Answer 22

Only 1.3 million hectare of farmland is
irrigated, of which 815,000 ha, 40percent are serviced by efficient full scale
irrigation. Total area under rice cultivation is 3.12million hectare.

Question 23

The lack of adequately maintained roads
connecting farms to markets limits the mobility of farm product
transportation. Investment in road and bridge construction offers
opportunities for private investors.

Answer 23

Infrastructure Development

Question 24

According to the
Land Bank, the post-harvest losses of rice in 1999 were recorded at 14 percent
while perishable crop losses ranged from 28 percent to 42 percent.

Answer 24

Construction of Post-Harvest Facilities / Trading Centers -

Question 25

Continuous training is vital to strengthening
weak farmer cooperative organizations / associations.

Answer 25

Institutional Development -

Question 26

The high cost at borrowing from banks impedes
expansion plans of agricultural SMEs. In the case of micro-enterprises,stringent bank requirements and voluminous paperwork discourage small-
scale farmers from seeking loans.

Answer 26

Credit Accessibility -

Question 27

In the Philippines, production costs of
agribusiness activities are much higher than its regional competitors (e.g.,
India, Thailand and Vietnam). The costs of sugar, electricity, fuel, packaging
materials, transport and labor in the Philippines are high.

Answer 27

Uncompetitive Production Costs -

Question 28

• The producers are not properly linked to SMEs
  (processors, exporters) because of erratic raw material supplies. Further, it
  is difficult to create a “win-win zone” between suppliers and buyers, which
  results in “pole vaulting.”

Answer 28

Uneven Product Distribution

Question 29

There is a need to improve quality production in
order to meet market specifications / requirements of global markets.

Answer 29

Product Quality Standards -

Question 30

Unstable government policies discourage agribusiness
investments

Answer 30

Policy Reforms -

Question 31

From past lessons learned by the Philippines,
agribusiness development projects now operate with preferential
consideration for market opportunities, market specification and possible
niche markets.

Answer 31

Market-led Development -

Question 32

The government will not compete with, or
crowd out, the private sector. Rather, it supports agribusiness entrepreneurs
through market identification, institutional development, product promotion
and investment matching / promotion.

Answer 32

Private Sector-led Development -

Question 33

the initiatives of research and
development institutions are geared towards product extension through
continuous innovation, in order to expand agribusiness Industries and provide
convenient, ready-to-cook, attractive, high quality and nutritious consumer
items.

Answer 33

Advanced Technology-based Development -

Question 34

The government, through the departments
concerned, will focus on public investments in infrastructure such as irrigation
systems, farm-to-market roads, post-harvest facilities, terminal markets and
essential “public goods.”

Answer 34

Minimal Government Subsidy -

Question 35

In compliance with policies of the World Trade
Organization, the Asia-Pacific Economic Cooperation Forum and the Asian
Free Trade Area, the Philippines is liberalizing trade in agribusiness.

Answer 35

Trade Liberalization -

Question 36

• The Department of
  Agriculture initiates and mobilizes the participation of private organizations,
  NGOs, Agriculture and Fishery Councils and the state colleges and universities
  in order to integrate the involvement of key sector players.

Answer 36

Broad-based Transparent Program Implementation

Question 37

WHAT MAKES AN ENTREPRENEUR DIFFERENT?

Answer 37

By Margie Quimpo-Espino

Question 38

What’s the difference between businessmen and entrepreneurs? For
starters, the former usually puts up a business solely for profits: the latter sees
a need and answers it.

Answer 38

“Many businessmen’s decisions are tainted by profits. If the business is losing, he
cuts costs. An entrepreneur’s thinking is employees depend on me, I have to go
on.”

Question 39

No Free Lunch
ARE FILIPINOS ENTREPRENEURIAL?

Answer 39

By Cielito Habito, Philippine Daily Inquirer,