Government's Program for SMEs

One of the programs of the Philippine Government for Small and Medium Enterprise (SME) is “Strategic Imperatives for SME Development” under a program “Forging a Truly Dynamic and Competitive SME Sector” with an aim of modernizing the SME sector to have an economic development because Small and medium enterprises are a key component in the chain of institutions contributing to national economic growth. Enhancing the vitality of SMEs is of pivotal importance in maintaining Philippine dynamism into the 21st century.  SMEs are a major vehicle in the growth and sustainable development of a globally- competitive Philippine economy. (DTI-Cebu)

Initially, the program focuses on defining the importance of the SME to the Philippine Economy. SMEs currently constitute 99% of all business establishments, employ 55% of the country's labor force and contribute to some 25% of value-added. Most SMEs, however, face various challenges in the areas of human resource development, technology and R&D, access to financing, to name a few. To address the problem, the government came up to imperative strategies in promoting and developing the SME industry. The five imperative strategies are:

1. Narrowing the Focus: Small Firms, Specific Sectors

2. Promoting Synergistic Linkages among Firms:

 Gearing Up for Maximum Growth

3. Strengthening Technology and R&D Initiatives

4. Bolstering Human Resource Development for SMEs

5. Improving SME Access to Financing

1. Narrowing the Focus: Small Firms. Specific sectors- the government urges the local SME investors to start the business venture in a focused and defined industry, grow it and starts to widens the array of the product. For instance, in Benguet province, the local government urges the farmers to have a zoning. Meaning, the government urges the farmers to choose specific type of vegetables/ fruits they want to grow and the other farmers to plant other crops so there would be a control in production. We can ascertain that all the key crops will be available in an adequate amount, not over or under production. In that way, a return of investment will be assured with profits. Moreover, the government will provide seminars and tutorials on how to grow the products they cultivate better to provide a better production.  In other word, they will be undergoing skill development to the products they cultivate.

2. Promoting Synergistic Linkages among Firms. This means that, the government will help the SME entrepreneurs in promoting their products. This is an imperative strategy in providing proper linkages on how to transport products from farmlands to markets. With the help of this strategy, the assurance of proper disposal of products will be attained and the consumers in all sides of the country, even international markets will have an access to the products.  With the help of this strategy, the production and transportation costs will be lessened so helping them to invest more. If they invest more, there would be higher government income from taxes, more jobs, and more economic stability.

3. Strengthening Technology and R&D Initiatives. One of the challenges that our SMEs are facing is the access to the right technology that would aid in better and faster productions while lessening the production costs.  The government will help the SMEs in identifying their needs in production, and help them in acquiring such technological needs, probably through loans or lease.

4. Bolstering Human Resource Development for SMEs. This imperative strategy focuses on human resource development. In a business, proper human resourcing is vital in cost effectiveness, as well as production effectiveness. The government, through Local Government Units (LGUs) and specific national departments of the government such as CHED, TESDA, DOLE and DECS, will provide proper trainings especially in Human resource management and production management to the SMEs so they will gain knowledge, skills and proper attitudes of being globally competitive businessmen.

5. Improving SME Access to Financing. This strategy focuses on financing SME entrepreneurs to start business and help them grow their businesses. The government provides ways to help the small scale businessmen in financial matters. With the help of the government owned financial institutions like banks and social departments like PAG-IBIG, SSS and GSIS, the entrepreneurs can easily have their loans and leases to start their business and/or expand their business.

      To sum up, the “Strategic Imperatives for SME Development” program of the government to the Small scale businessmen is a win-win solution for the SMEs and the government in promoting a stable economy and economic development. At the end of the day, the Government has the sole responsibility to its people in helping them to be globally competitive businessmen because this will also mean a Globally Competitive Philippine Economy.

Relationship of Political Stability to Growth of Entrepreneurship

In order to relate political stability to growth of entrepreneurship, let us first define political stability. Political stability is defined as durability and integrity of a current government regime.  This is determined based on the amount of violence and terrorism expressed in the nation and by citizens associated with the state. A stable society is one that is satisfied with the ruling party and system of operations and is not interested in revolutionary or despotic ideas. (ask.com, 2014). A stable political picture of a country where the government takes full ruling is favored by most of the population, more especially the entrepreneurs because it means growth and stability. Political stability obliges the people to act together with the government to come up with a better understanding on how to promote public and private partnership. Political stability easily means absence of social unrest, revolutions, crises, problems, revolutions, hardships, and/or terrorism, and that the government is competent enough to control the nation in every incidence that might arise.

     Having been able to substantiate political stability, it would be easier for us to recount political stability to growth of entrepreneurship. A stable country always and at all times attracts investors to invest in the country and that the investors are giving their full trust to the government that their investments are not at stake. With their investments, they create jobs, therefore promoting economic development. In other words, the more stable the country is politically, the more investments the country will attract, therefore attracting entrepreneurs to enterprise and grows economically. The political stability runs hand in hand with economic development in defining the growth and intensification of entrepreneurship and entrepreneurs in a specific place or country.

Role of Government in Economic Development

The role of the government to the economy and economic development is comparative to the bones in human body. In every nation, the government is the backbone of the people and its future. In economy, the government is the one in control of the country and its economy. The uphill or downfall of economy of every nation depends on the institutional framework of its government.

     In application, the government has the sole responsibility in building the economy of the country, including its maintenance and development, for the people and the sovereign lands.  It is being directed by the leader of the state and guided by the state policies.

     Let me site an example on how the government influences the economy and promotes economic development.  It all starts by creation of economic policies. The objective of this is to establish implementing rules and guidelines on how to create programs in promoting economic stability and development. The economic policies are created by the government (that has three major branches- Legislative, Judiciary and executive). A policy proposal in terms of Bills will be submitted to the legislative branch of the government (Senate and the House of Representatives) for study, discussions, amendments and votations to become a rule of law. Thereafter, the bill will be submitted to the Executive branch (the President) for approval.  Is the bill becomes a law; it will serve as a basis in creation of programs of the government. For instance, industrial policies in the Philippines play a significant influence on the environmental character of industrial growth and thereby on the sustainability of economic growth as a whole. By virtue of the industrial policies, the government can take control of country’s economy. That is taking control of the businesses, imports and exports, labor force, foreign currencies, etc. This is what they call industrialization.  In most of the developing and industrialized countries like India, UAE, KSA, Qatar and Oman, most of the leaders believed that industrialization is the key to economic development. These beliefs was all the more convincing in India because of the country’s large size, substantial natural resources, and desire to develop its own defense industries, so most of their economic policies focus on industrialization of the country. The same way with the Gulf Countries like where natural resources like oils is very abundant and critical economic policies must be created to enhance the economy of the country through the proper usage and development of the resources, therefore promoting economic development.

Economic Nationalism in Economy

In order to fully understand the role of the economic nationalism to the development of our country, let us take a look at its characterization. As defined in Wikipedia, Economic nationalism is a body of policies that emphasize domestic control of the economy, labor, and capital formation, even if this requires the imposition of tariffs and other restrictions on the movement of labor, goods and capital. It should be understood as a set of practices to create, bolster and protect national economies in the context of world markets. The objective of economic nationalism is to for the government to take control over the economy to help its citizen involve in building the country through participation in income generation by means of self employment and entrepreneurship or by employment in privately or publicly owned industries.

We must take into accounts that the success of economy is based on employment, capitalization or capital formation, stock market, government debts, trades, national products and inflation rates and these are all regulated by economic nationalism with the virtue of implementing rules and regulations of the government.  Through economic nationalism, the government controls the trading in the country, some implements tariffs to products for income generation, which in turn used to finance projects that will enhance the quality of life of the people and create jobs. Also, it helps the government finance the projects to industrialize the country without borrowing monetary help from international agencies, so decreasing governmental debts.  With economic nationalism, the government accentuates control over political stability, which in the end attracts investors and promotes economic development. All these interrelated matter have one goal, help build economy.

Best Development and Growth Theory in Entrepreneurship

In 21^st century, we are already in the era where almost everything we need, we want and we like are available and within reach. Perhaps, we have to take into accounts that all of these are because of the past and present researchers, inventors, theorists and scientists.  While reflecting the world around us, I come to realize that these are all innovations as a result of our “Malikot na pag iisip”( Critical and analytic thinking) as what they say in Filipino language brought about by the needs of the society. With this, I consider a development and growth theory that has an objective of innovation as a best theory in entrepreneurship and economic development, and that is Schumpeter’s theory of Innovation.

Schumpeter’s theory of economic development is a pioneer work of economic development. it urges development by creating a new combination of entrepreneurship. According to Schumpeter, an entrepreneur is one who perceives the opportunities to innovate and creates new methods of enterprising. In his views, the concept of new combination leading to innovation covers the five (5) cases:

1. The introduction of new products that the community is not familiar with.

     2. The introduction of new methods of production,

     3. The opening of new market,

     4. The conquest of new source of supply of raw materials,

5. The carrying out of new organizations like creation of monopoly.

According to him, the introduction of new products and continuous improvement of the existing ones will lead to development. I consider this theory as one of the best theories of entrepreneurship and economic development because aside from its simplicity to understand, it offers ways to start a new business ventures. One of the successful entrepreneurs is Steve Jobs of Macintosh Company. In analysis, he used the five innovation criteria of Schumpeter when he started offering the public his new products. He introduced to the public the smart phones and tablets that the consumers are not yet familiar with. He opened a new market of telecommunications by the use of internet browsing to connect to the world in the cheaper way. Moreover, his expensive products was manufactured mostly in China where the labor costs and material costs are far cheaper than in America, where he is based. He also immediately applied for patency rights to create a monopoly of the smart communications. In the end, he was so successful and if we only follow the Schumpeter’s theory, we, in the future, will also be successful.

Best Contribution of Entrepreneurship in Nursing

The best contribution of entrepreneurship in nursing is I believe change. A change for the betterment of the profession, the professionals, the practice and the clients. Going to the basic definition of entrepreneurship, it is innovation. Innovation in a form of development by means of the use of available resources such as technology, evidence-based ideas and practices and strategies. Therefore, nursing entrepreneurship is an innovative development both professional and social, as well as business creation and improvement.
      In nursing profession, the contribution of entrepreneurship is the creation of a sub specialty in nursing that provides an opportunity to the professionals in building themselves professionally and financially.
      In addition, the involvement of entrepreneurship to professional nurses is the opportunity to utilize the learned skills, knowledge and attitude for self and professional improvement. Self improvement includes income generating business for the use of the skills and talents that a nurse has. Also, it will help the nurse become nursing consultants in various fields that range from clinical consulting to service and process management consulting to legal process management consulting and work as expert nurses and witnesses. For instance, David Martin, RN, founded VeinInnovations, a company that has grown into one of the largest and most successful vein health and treatment clinics in Georgia, USA. He's become adept at developing and adopting new techniques marketing and growing a successful clinic and managing staff.
     Theresa Campa, DNP, APN, NP-C, is assistant professor and entrepreneur based in Marmora, NJ. She started a business that provides educational seminars to nurse practitioners and nurse practitioner students, and specializes in clinically enhancing courses - procedures, diagnostic, test interpretations, etc.
     In legal process management consulting, Fern Wasserman, MSN, RN, ANP-BC APRN, CLNC, is president and founder of New York Legal Nurse Consultants Inc., and works both as a legal nurse consultant and an advance care planning facilitator. Wasserman works with clients privately to assist them in completing their advance directives so they're able to effectively communicate their wishes to family, loved ones and healthcare agents.
      To the community, the contribution of nursing entrepreneurship is easy accessibility to the health treatment and management, as well as up to date treatment modalities to various diseases and illnesses.
      In a nutshell, we can take into account that with nursing entrepreneurship, healthcare setting brought a big lift to all of us, especially in nursing profession. The innovation brought about by entrepreneurship gave us a drastic change in the profession, as well as the community. Nursing from simple and basic caring to a “profession of a little of everything” as I always believe includes nursing entrepreneurship as one of the motivation for change, and as what they say, the only constant in this world is “Change”, so as in the Nursing profession, change for the betterment of the humanity.