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Folk Essay

859 words - 4 pages

MGMT 114
Introduction to Entrepreneurship

Entrepreneurship and Economic Growth
The Philippine Economy

The Economy of the Philippines is the 39th largest in the world, according to 2013 World Bank statistics, and is also one of the emerging markets in the world. The Philippines is considered as a newly industrialized country, which has been transitioning from being one based on agriculture to one based more on services and manufacturing. It is currently one of Asia's fastest growing economies. However, major problems remain, mainly having to do with alleviating the wide income and growth disparities between the country's different regions and socioeconomic classes, reducing ...view middle of the document...

The government planned to eradicate poverty as stated in the Philippines Development Plan 2011-2016 (PDP). The PDP for those six years are an annual economic growth of 7-8% and the achievement of the Millennium Development Goals (MDGs). Under the MDGs, Philippines committed itself to having extreme poverty from a 33.1% in 1991 to 12.6% by 2015.

Poverty Incidence in Region 8 (2012)
* Region VIII - 37.2
* Biliran - 20.7
* Eastern Samar 59.4
* Leyte - 31.9
* Northern Samar - 43.7
* Southern Leyte- 36.4
* Western Samar - 36.0

* Number of Establishments
As of 2012 count, there are 944,897 business enterprises operating in the Philippines. Of these, 99.58% (940,886) are micro, small, and medium enterprises (MSMEs) and the remaining 0.42% (4,011) are large enterprises. Of the total number of MSMEs, 89.78% (844,764) are micro enterprises, 9.78% (92,027) are small enterprises, and 0.44% (4,095) are medium enterprises.

* Sectoral Distribution

Majority of the 940,886 MSMEs in operation in 2012 are in the wholesale and retail trade, repair of motor vehicles and motorcycle industries with 436,809 business establishments; information and communication, financial and insurance activities, and other service activities with 133,157; accommodation and food services with 126,108; followed by manufacturing with 117,601; human health and social services, professional scientific and technical, education, administrative and support services, arts, entertainment and recreation industries, and real estate  with 105,927. These industries accounted for about 97.74% of the total number of MSME establishments.

* Geographical Spread of MSMEs

Majority of the MSMEs in operation...

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