Human Development and Entrepreneurship: The Differences between Developed &

Developing countries – The Meaning of Development and its core values

The Differences Between Developed and Developing Countries

1. Access to natural resources
2. Access to capital resources
3. Numbers and skills of human resources
4. Levels of economic development
5. Standards of living and quality of life
6. Relationships between economic development and quality of life

Development – must be able to elevate an entire society and its social system towards a better and more
humane life.

Core values of Development:

1. Life Sustenance – is the ability of the economy to provide basic needs,
2. Self-esteem – extent one can become a person. This is the sense of one’s self-worth and self-
respect, of not being used as a tool by the others for their own selfish ends.
3. Freedom from Servitude – the extent that a person is free in making choices.
Human development – is the sum of all efforts to improve the situation of people in all parts of the world, Its
end goal is to expand the choices of people.

Philippine Culture, Entrepreneurship & Development

How Countries Grow and Become Rich

The primary way that countries have become wealthy is via capitalism. Capitalism works best
with stable money and low taxes.
If taxes are too high, and money is too unstable, capitalism – the incredibly complex
arrangement of relationships that allow humans to cooperate together in vast networks of investment,
production and trade, via the market system – becomes impaired, or collapses completely.

How Entrepreneurs Make a Country Rich & Self-Reliant

A developing country needs entrepreneur who are competent to perceive new opportunities
and are willing to incur the necessary risk in exploiting them. A developing economy is required to be
brought out of the vicious circle of low income and poverty. Entrepreneur can break this vicious circle.
Entrepreneurs and helping government can change a developing economy in developed economy.

What an Entrepreneur Does

Entrepreneurs develop, design, produce, market, and eventually sell businesses with the end
goal of financial profit. They own and operate everything from small shoe stores to tech startups.
There are entrepreneurs behind every business in the country, no matter what the size and scope
(think Coca Cola, Microsoft, Facebook, Amazon, McDonald's etc).

Rewards and Risks of Being an Entrepreneur

 Entrepreneurship can only be rewarding with time. In the beginning, you can’t expect to
escape struggle. Let’s have a look at the risk factors of being an entrepreneur.

Risks of an Entrepreneur

 Sacrifice Paycheck
 Depend on Personal Capital
 Evaluating Popular Interest
 Depending on a Key Employee
 Sacrificing Your Personal Time and Health

Rewards of an Entrepreneur

 Passionate about your work

 Satisfaction
 Be Your Own Boss
 Financial Reward

Cultural Factors that Contribute to the Emergence of Entrepreneurs

 Values – ideals held by a community as standards for social or interpersonal behavior
 Views on competition
 Time orientation
 Regard for entrepreneurs, traders, and “capitalist”
 Conferment on social ranks
 Work ethics
 Attitude towards money.

Philippine Cultural Values and Entrepreneurship

 Be lazy, indulgent, and prone to relax and take things easy.

 Avoid taking risks
 Go along with wishes of the group even if, personally, one wants to do something else
 Be oversensitive to criticism so that one stops what he is doing when it does not meet the
approval of others
 Lack perseverance and persistence, that is, Filipinos tend to lose interest after an initial
burst of enthusiasm
 Be fatalistic or to let fate or destiny decide the outcome of what one does
 Put one over each other which in turn leads one to put down fellow-Filipinos who are
making it to the top
 Lack originality and creativity, and is apt to imitate what others are doing.

Filipino Values Favorable to Entrepreneurship

 Honesty
  Hard work
 Cooperation
 Self-sacrifice
 Pakikipagkapwa – it is about how we treat and relate to others.
 Risk-taking or lakas ng loob
 Pakikipagsapalaran
 Close family ties

Filipino Values that Deter Entrepreneurship

 Traditional child rearing practices
 Belief in the existence of all-powerful forces that control a person’s destiny may destroy
entrepreneurial initiatives.
 Amor propio – makes Filipino refuse to take full responsibility for his actions when he fails
 The “Bahala na” attitude – if not tempered by intelligent judgement and planning, may lead
to prudent decision making
 Family and relatives
 Colonial mentality

The Link Between Family & Entrepreneurship

The concepts of entrepreneurship and family business are complementary. Entrepreneurship
refers to something new and innovative in terms of entities, products, services, markets, and systems.
And, family enterprises are those wherein members of a family have a significant influence on the
direction of the firm and/or are the sole proprietors of the business. Any business begins with a
founder’s or a family’s entrepreneurial vision and entrepreneurship continues to play a significant role
throughout the family firm’s evolution as it grows and prospers.

The Link Between Education & Entrepreneurship

School Education can contribute to the developing entrepreneurship skills and to the
knowledge about business and about the role of entrepreneurs in society. Also, education can
contribute to the encouraging entrepreneurial initiative and to the development of the entrepreneurial
attitude.