St. Paul University Philippines Tuguegarao City. Cagayan Valley 3500

February 20, 2013
[EN 200: ENTREPRENEURSHIP IN NURSING]
ST. PAUL UNIVERSITY PHILIPPINES TUGUEGARAO CITY. CAGAYAN VALLEY 3500
SCHOOL OF HEALTH SCIENCES
MASTER OF SCIENCE IN NURSING
EN200:ENTREPRENEURSHIP IN NURSING
SUBMITTED BY: SAPP, DARYL RENZ A.
SUBMITTED TO: ROBERT DEUS UMOSO JR.
SAPP, DARYL RENZ A. , REFLECTIVE JOURNAL #1 MODULE 1
February 20, 2013
REFLECTIVE JOURNAL NO. 1
1. WHAT IS THE BEST CONTRIBUTION OF ENTREPRENEURSHIP IN NURSING? WHY? Basically it showed nurses on how to maximize their capabilities not just merely on bedside. Nurses learned how to innovate themselves and went out to their shells and burst out their cores. Here in our county when the no. Of nursing students drastically increasing, it came to a point that a lot of nurses put up their own review centres just to meet the demands of those who will take the Nursing Licensure Examinations and served as their business thru maximizing their abilities and functions as a nurse which is being a Nurse Educator.
2. IN DISCUSSING THE DIFFERENT DEVELOPMENT AND GROWTH THEORIES. WHAT DO YOU THINK IS THE BEST ? EXPLAIN. For me , the best theory is the economic theory it coined that an entrepreneur needs not to stick on what his use to do but rather it entails that he should be innovative to grow continuously and develop himself to a more competitive individual which in turn a globally competitive entrepreneur.
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THE DIFFERENT THEORIES OF ENTREPRENEURSHIP
Entrepreneurship is an evolved thing. With the advancement of science and technology it has undergone metamorphosis change and emerged as a critical input for socio-economic development. Various writers have developed various theories on entrepreneurship and popularized the concept among the common people. The theories propounded by them can be categorized as : Sociological theory Economic theory Cultural theory Psychological theory
Sociological Theories The following theories explain how sociological factors accelerate the growth of entrepreneurs: 1-Theory of religious beliefs 2- Theory of social change
Theory of religious beliefs Max Weber has propounded the theory of religious belief. According to him, entrepreneurism is a function of religious beliefs and impact of religion shapes the entrepreneurial culture. He emphasized that entrepreneurial energies are exogenous supplied by means of religious beliefs. the important elements of Webers theory are discussed further1- Spirit of CapitalismSAPP, DARYL RENZ A. , REFLECTIVE JOURNAL #1 MODULE 1 3
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In the Weberian theory, spirit of capitalism is highlighted. We all know that capitalism is an economic system in which economic freedom and private enterprise are glorified, so also the entrepreneurial culture. 2- Adventurous SpiritWeber also made a distinction between spirit of capitalism and adventurous spirit. According to him, the former is influenced by the strict discipline whereas the latter is affected by free force of impulse. Entrepreneurship culture is influenced by both these factors. 3- Protestant ethicaccording to Max Weber the spirit of capitalism can be grown only when the mental attitude in the society is favorable to capitalism 4 -Inducement of profitWeber introduced the new businessman into the picture of tranquil routine. The spirit of capitalism intertwined with the motive of profit resulted in creation of greater number of business enterprises. In fact, this theory suited the British rulers, who desired to encourage European entrepreneurship in India. This theory was vehemently criticized by many researchers because of the unrealistic assumptions. Theory of Social Change Everett E. Hagen, in his theory of social change propounded how a traditional society becomes one in which continuing technical progress takes place. The theory exhorts the following feature which presumes the entrepreneurs creativity as the key element of social transformation and economic growth. Presentation of general model of the society- the theory reveals a general model of the society which considers interrelationship among physical environment, social structure, personality and culture. Economic Growth : product of social change and political change : According to Hagen, most of the economic theories of underdevelopment are inadequate. Rejection of followers syndrome : Hagen rejected the idea that the solution to economic development lies in imitating western technology. So the followers syndrome on the part of the entrepreneur, is discouraged.
ECONOMIC THEORIES
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Entrepreneurship and economic development are interdependent. Economic development takes place when a country's real rational income increases overall period of time wherein the role of entrepreneurs is an integral part. Schumpeters Theory of Innovation Schumpeters theory of entrepreneurship is a pioneering work of economic development. development in his sense, implies that carrying out of new combination of entrepreneurship is basically a creative activity. According to Schumpeter an entrepreneur is one who perceives the opportunities to innovate, i.e. to carry out new combinations or enterprise. In his views, the concept of new combination leading to innovation covers the following 5 cases1- The introduction of new goods, that is the one with which consumers are not yet familiar, of a new quality. 2- The introduction of new method of production 3- The opening of new market 4- the conquest of new source of supply of raw material 5-The carrying out of new organization In view of the above, Schumpeterian theory of entrepreneurship has got the following features1- Distinction between invention and innovation Schumpeter makes a distinction between innovation and invention. Invention means creation of new things and innovation means application of new things into practical use. 2- Emphasis on entrepreneurial function- Schumpeter has given emphasis on the role of entrepreneurial functions in economic development. In his views, development means basic transformation of the economy that is brought about by entrepreneurial functions. 3- Presentation of disequilibrium situation through entrepreneurial activity-the entrepreneurial activity represents a disequilibrium situation, a dynamic phenomenon and a break from the routine or a circular flow or tendency towards equilibrium. 4- Entrepreneurialism dream and the will to found a private kingdom- the motives of creating things and applying these things into practice inspire the entrepreneur to undertake innovation.
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CULTURAL THEORIES Advocates of cultural theories point out that entrepreneurship is the product of culture. Entrepreneurial talents come from cultural values and cultural system embedded into the cultural environment. Hoselitzs Theory Hoselitz explains that the supply of entrepreneurship is governed by cultural factors, and culturally minority groups are the spark-plugs of entrepreneurial and economic development. In many countries, entrepreneurs have emerged from a particular socioeconomic class. He emphasized the role of culturally marginally groups like Jews and the Greeks in medieval Europe, the Chinese in South Africa and Indian in east Africa in promoting economic development.
Psychological Theories Psychological theories centre's around the psychological characteristic so the individual in a society. Psychological characteristics affect the supply of entrepreneurs in the society.Entrepreneurship gets a boost when society has sufficient supply of individuals with necessary psychological characteristics .The psychological characteristics include need for high achievement, a vision or foresight, ability to face opposition. These characteristics are formed during the individuals upbringing which stress on standards of excellence, self reliance and low father dominance.
3. HOW CAN ECONOMIC NATIONALISM HELP OUR ECONOMY? ECONOMIC NATIONALISM OR SIMPLY PATRONIZING THE PRODUCTS AND SERVICES THAT IS SERVE IN OUR MARKET LEADS TO ECONOMIC PROGRESS, THE MORE CONSUMERS PATRONIZED OUR LOCAL PRODUCTS AND SERVICES THE HIGHER THE REVENUES OR LEVIES THAT OUR GOVERNMENT WILL BE COLLECTED, THE RECIPIENT OF THIS REVENUES IS OUR ECONOMY. 4. WHAT IS THE ROLE OF GOVERNMENT IN ECONOMIC DEVELOPMENT? While consumers and producers make most decisions that mold the economy, government activities have a powerful effect on the U.S. economy in at least four areas. Stabilization and Growth. Perhaps most importantly, the federal government guides the overall pace of economic activity, attempting to maintain steady growth, high levels of
SAPP, DARYL RENZ A. , REFLECTIVE JOURNAL #1 MODULE 1 6
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employment, and price stability. By adjusting spending and tax rates (fiscal policy) or managing the money supply and controlling the use of credit (monetary policy), it can slow down or speed up the economy's rate of growth -- in the process, affecting the level of prices and employment. For many years following the Great Depression of the 1930s, recessions -- periods of slow economic growth and high unemployment -- were viewed as the greatest of economic threats. When the danger of recession appeared most serious, government sought to strengthen the economy by spending heavily itself or cutting taxes so that consumers would spend more, and by fostering rapid growth in the money supply, which also encouraged more spending. In the 1970s, major price increases, particularly for energy, created a strong fear ofinflation -- increases in the overall level of prices. As a result, government leaders came to concentrate more on controlling inflation than on combatingrecession by limiting spending, resisting tax cuts, and reining in growth in the money supply. Ideas about the best tools for stabilizing the economy changed substantially between the 1960s and the 1990s. In the 1960s, government had great faith in fiscal policy -manipulation of government revenues to influence the economy. Since spending and taxes are controlled by the president and the Congress, these elected officials played a leading role in directing the economy. A period of high inflation, high unemployment, and huge government deficits weakened confidence infiscal policy as a tool for regulating the overall pace of economic activity. Instead, monetary policy -- controlling the nation's money supply through such devices as interest rates -- assumed growing prominence. Monetary policy is directed by the nation's central bank, known as the Federal Reserve Board, with considerable independence from the president and the Congress. This article is adapted from the book "Outline of the U.S. Economy" by Conte and Carr and has been adapted with permission from the U.S. Department of State. 5. RELATE POLTICAL INSTABILITY TO GROWTH OF ENTREPRENEURSHIP? The growth in countries and time periods with a high propensity of government collapse, growth is significantly lower than otherwise. Economic growth and political stability are deeply interconnected. On the one hand, the uncertainty associated with an unstable political environment may reduce investment and the speed of economic development. On the other hand, poor economic performance may lead to government collapse and political unrest. A different argument leading to a similar relation between political instability and growth is implied by Grossmans (1991) analysis of revolutions. In countries where rulers are relatively weak,i.e. more easily overthrown, the probability of revolutions is higher and 4 the citizens have higher incentives to engage in revolutionary activities rather than productive market activities. On the contrary, a strong ruler who makes a revolution unlikely to succeed discourages revolutionary activities in favor of market activities. Grossman, H. (1991), A General Equilibrium Theory of Insurrections, American Economic Review, forthcoming.
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Alesina, Alberto, Sule Ozler, Nouriel Roubini, and Phillip Swagel. 1996. Political instability and economic growth. Journal of Economic Growth 1(2): 189-211. 6. EXPLAIN ONE PROGRAM OF THE GOVERNMENT FOR THE DEVELOPMENT OF MICRO OR SMALL BUSINESS. The government needs to help its fellowmen thru teaching them to utilized the capabilities and to mold them to be the best that they can be and to enhance what is already innate in them. The government as well is helping them by tying up to institution that can help them finance those projects like small enterprises. A sample of which is downloaded below.
FINANCING SMALL AND MEDIUM ENTERPRISES (sources: Small Business Corporation, Land Bank of the Philippines,Development Bank of the Philippines ) SMALL BUSINESS CORPORATION On 16 November 2001, the Small Business Guarantee and Finance Corporation (SBGFC) and the Guarantee Fund for Small and Medium Enterprises (GFSME) were merged and became known as the Small Business Corporation. Today, Small Business Corporation is the National Governments third largest provider of SME financing, with a lending portfolio of over P3 Billion. There are over 3,000 clients, 71 partner financial institutions, and serving 57 of the 75 provinces across the country. Through its Direct Lending Program, it offers loan facilities designed to suit the specific financing needs of micro, small and medium enterprises (MSMEs). It also provides additional liquidity to business needs and is a credit champion for MSMEs. Among their Direct Lending facilities are the following: 1. Fixed Asset Financing A direct lending facility intended to finance the expansion projects of domestic enterprises to sustain, expand and improve their business operations. Purpose of the loan will include the following: o Equipment or motor vehicle acquisition o Lot acquisition (limited to 25% of total loan)
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fixed asset acquisition (except for loans from other government financial institutions) 2. Working Capital Financing A direct lending facility which aims to address the working capital needs of domestic enterprises. It supports the enterprises gapping of receivables and build-up of inventory. A credit line facility for MSME suppliers where the subject of financing is the purchase order and/or the receivable from its qualified buyers including foreign buyers, top-2000 domestic anchor firms, industry anchor firms, franchisor firms and on case-to-case basis, government agencies/corporations. Under this facility, SBC also rediscounts PDCs to assist suppliers of domestic firms which need not be among the top-2000, but who have issued post-dated checks (PDC) to cover the transaction. Demand Loan A credit line facility intended to better address the working capital needs of MSMEs that are pre-bankable in terms of collateral and of credit track record with the banks, but are mature in terms of a well-established accounting system and the capability to submit regular financial reports. Soft Investment Loan An amortized term loan facility for financing of soft or intangible investment requirements of the enterprise such as R & D, marketing including trade fair participation, pre-operating expenses for an expansion project, training, rental deposit, IT software packages, and franchise development packages among others. Micro Working Capital Loan An amortized term loan facility intended for accounts receivable and/or inventory financing for micro and small enterprises who are not yet ready for a credit line transaction and who prefer to amortize its working capital loan. Financing for MSME IT-Capability A wholesale rediscounting facility for local IT providers intended to help MSMEs develop some degree of IT capability in terms of simple hardware facilities, software solutions and website development among others. 3. Financing for Start-Up Enterprises A direct lending facility which aims to support start-up domestic entrepreneurs whose
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product or service prototype has already been produced and market-tested. This facility also caters to start-up franchisees. Subject of financing will include the following: o Equipment or motor vehicle acquisition o Lot acquisition (limited to 25% of total loan) -operating costs Minimum Borrower Qualifications 1. Must be a Filipino-owned enterprise; in the case of corporation, must be at least 60% Filipino-owned. 2. Should have an asset size of not less than P500 Thousand and not more than P100 Million, excluding the value of land. 3. Must have at least one year positive business track record. 4. The MSME industry involved should not be among the following exclusionary list of SBGFC:
-generating operations 5. Must have a BRR score of 5 or better per SBC evaluation. Loan Size P 15.0 Million (Management approval limit; may be higher but needs Board approval) Note: The projects market potential and debt-servicing capacity serve as the most critical bases for determining the loan amount. Maturity/Repayment Term
o One-year credit line o Repayment term depends on movement of accounts receivables and inventory Collateral Requirement Assets to be financed by the loan (AR, inventory and fixed assets) Note: The presence of additional collateral external to the business will not assure the granting of loan and absence of such additional collateral will not be a
February 20, 2013
reason for loan denial. Total collateral cover, however, will impact on the pricing of loan. Interest Rates - 10.1% to 12.5% - 10.8% to 16.0% - 11.9% to 18.0% Note: Interest rates are tiered based on the Borrower Risk Rating, collateral cover and the term of the loan. For more information about direct loan products, please contact: Small Business Corporation 17th & 18th Floors 139 Corporate Center 139 Valero Street, Salcedo Village, Makati City Tel. No. (632) 751-1888 or at any SBC office nearest you. Website: www.sbgfc.org.ph DEVELOPMENT BANK OF THE PHILIPPINES SMALL AND MEDIUM ENTERPRISES (SME) FINANCING DBP finances many SME projects in recognition of the role of small and medium enterprises in spurring the growth of the economy. DBP provides both credit and noncredit assistance in the form of technical support in the areas of marketing, research and development, business diagnosis, and human resource development. Eligible Borrowers Single proprietorships, registered partnerships, cooperatives, associations, private corporations, private financial institutions, local government units, non-government organizations. Acceptable Collaterals Generally, acceptable collaterals for loans are registered first mortgage on titled real estate properties, buildings, machinery and equipment and other mortgageable assets which are already owned by the applicant or to be acquired partly or fully with proceeds of the loan applied for. Hold-out on savings and time deposits as well as government security placements are also considered as acceptable collaterals. In some cases, the Bank also accepts the guarantees of the following as part of collaterals: Quedan and Rural Credit Guarantee Corporation (QUENDANCOR), Small Business Guarantee and Finance Corporation (SBGFC), Philippine Export-Import Credit Agency (PHILEXIM), Home Insurance Guaranty Corporation (HIGC). Interest Rate and Other Charges
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The rate of interest and other charges for loans and other credit accommodations are generally market-based. Debt-Equity Requirements The debt-equity requirements of the Bank would depend on the type of project to be financed taken in conjunction with the Bank's assessment of the risk factors for a particular borrower. Types of Projects Financed 1. Industrial a. Large manufacturing and non-manufacturing industries b. Small and medium manufacturing and non-manufacturing industries c. Industrial Estate Projects 2. Public Utilities a. Land, air and water transportation b. Telecommunications c. Power generation and distribution d. Water supply and distribution 3. Community Development a. Housing b. Hospitals c. Schools d. Infrastructure e. Eco-Tourism 4. Agro-industrial a. Post harvest-facility b. Agri-business 5. Focused Lending Programs a. Environmental
certification under ISO 14000 b. Micro-financing c. Lending program for franchises d. Program towards obtaining ISO 9000 certification e. New and renewable energy (NRE) projects f. Technology development and commercialization g. LGU financing program
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h. Sustainable Logistics Development Program
6. Other Programs a. Factoring b. Loans Against Hold Out on Deposit Sustainable Partnership for Energizing Entrepreneurship Development (SPEED) The SPEED program provides Filipino entrepreneurs with efficient and convenient access to market information, technology, research and development, and credit and technical assistance. It is being implemented in collaboration with the Department of Trade and Industry (DTI), the Department of Science and Technology (DOST), the Medium and SmallScale Industries Coordinated Action Program II (MASICAP) Development Foundation Inc., and the Alliance of Philippine Partners in Enterprise Development (APPEND). A key component of the SPEED program is the establishment of Business Assistance Centers (BAC) in key areas in Luzon, Visayas and Mindanao. These BACs are a one-stop shop for SMEs, offering support services such as e-services, business counseling, project development, and financial advisory under one roof. Currently, the SPEED program has BACs in: Mariano Marcos State University - Batac, Ilocos Norte Benguet State University - La Trinidad, Benguet Pampanga Agricultural College - Magalang, Pampanga Palawan State University - Puerto Princesa City, Palawan Camarines Sur State Agricultural College - Calabanga, Camarines Sur Aklan State University - Banga, Aklan Central Philippine University - Jaro, Iloilo City Foundation University - Dumaguete City, Negros Oriental Cebu State College of Science and Technology System - Cebu City, Cebu DBP Davao Branch - C.M. Recto Ave., Davao City Applying for a LoanStep 1: Discuss your project proposal with a DBP account officer. Fill up the form (http://www.devbankphil.com.ph/sme/sme_account.php) to contact a DBP Account Officer and DBP shall assess your business needs. Step 2: File your application form together with the required documents. Upon submission,
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DBP shall conduct the necessary evaluation and processing of your application. DBP shall advise you through a formal letter and phone call if your application has been approved. Step 3: Once your application has been approved, open an account at DBP. All transactions will then be made through your DBP account. On the average, it takes 30 to 36 days to process a loan, assuming all documents are complete. A project is monitored three months after the loan has been released. For new projects, quarterly visits are conducted. For more information about DBP loan products, please contact: The Development Bank of the Philippines Head Office: Sen. Gil J. Puyat Avenue corner Makati Avenue, Makati City, Philippines Mailing Address: P.O. Box 1996 Makati Central Post Office 1200 Makati City, Philippines Trunk Line: (632) 818-9511 to 20/818-9611 to 20 E-mail: info@devbankphil.com.ph Website: http://www.devbankphil.com.ph or at any DBP branch nearest you. LAND BANK OF THE PHILIPPINES TODO UNLAD PROGRAM Total Development Options Unified LandBank Approach to Development (TODO UNLAD) is LandBanks flagship program for countryside development. Through its various lending programs and support services, TODO UNLAD links cooperatives, local government units, private corporations / small and medium enterprises and non-government organizations in specific areas around an integrated development project. TODO UNLAD moves away from piecemeal efforts in developing an area. Instead, it extends loans and other support services to all key players in a pre-identified area to ensure that all efforts lead to an integrated area development. TODO UNLAD projects aim to achieve countryside development by linking producers to markets and processors, strengthening cooperatives and local government units. Specifically, it hopes to increase agricultural productivity, improve basic infrastructure, and eventually pave the way towards rural industrialization and to transfer partially or wholly, the
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ownership and management of productive assets to cooperatives. Its projects are composed of a combination of two or more of any of the following loans and services:
n or post-harvest facilities financing
Note: A project can be considered as a TODO UNLAD project even if only one (1) of the services enumerated above is availed of provided that the partner who availed of the loan or services is a cooperative in Agrarian Reform Communities area, and provided further that the other key partners, e.g. LGU, DA, DAR, private entities, etc., committed to extend financial/technical assistance. Development Advocacy Program The Development Advocacy Program (Devad) is a new lending modality which LANDBANK banks on the strength of market contracts purchase orders (P.O.), receivables and other credit enhancement. It veers away from the rigors of traditional lending. Eligible Accounts character) or without collateral but with viable projects and established/confirmed markets -traditional lending modalities (e.g. receivables financing, purchase order financing) g. marketing agreement, guarantee covers) Eligible Borrowers
-Business Entities
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Eligible Projects
quisition Loanable Amount For project-based: Loanable amount depends on the project requirements (up to 80% of the project cost). Loans against receivables and P.O. shall not exceed 70% of their current values. Interest Rate The program shall adopt the regular pricing structure for each identified sector/client Securities The DevAd accounts shall be secured by any or combination of the following:
cover -dated checks For more information on LandBanks TODO UNLAD and DEVAD, please coordinate with: Program Management Department I Land Bank of the Philippines 28 th Floor, Land Bank Plaza 1598 M.H. del Pilar Street corner Quintos Street Malate, Manila Tel. Nos. (632) 522-0000/ 551-2200 (local 2307 or 2376) Website: www.landbank.com
REFERENCES:
February 20, 2013
www.scribd.com/doc/13735208/Theories-of-Entrepreneurship www.landbank.com (sources: Small Business Corporation, Land Bank of the Philippines, Development Bank of the Philippines ) Grossman, H. (1991), A General Equilibrium Theory of Insurrections, American Economic Review, forthcoming. Alesina, Alberto, Sule Ozler, Nouriel Roubini, and Phillip Swagel. 1996. Political instability and economic growth. Journal of Economic Growth 1(2): 189-211.
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February 20, 2013

[EN 200: ENTREPRENEURSHIP IN NURSING]