GUIDED REFLECTIVE JOURNAL #1

GUIDED REFLECTIVE JOURNAL #1 (Individual)

1. What is the best contribution of entrepreneurship in nursing? Why?
2. In discussing the different development and growth theories, what do you think is the best? Explain.
3. How can economic nationalism help our economy?
4. What is the role of government in economic development?
5. Relate political stability to growth of entrepreneurship.
6. Explain one program of the government for the development of micro or small business.

1. The best contribution of entrepreneurship in nursing is that Nurse Entrepreneurs use their nursing education and business background to start ventures within the healthcare industry—establishing, promoting and running their own companies. Some develop medical devices, computerized systems, or home health products.

Nurse Entrepreneur. (2015, October 30). Retrieved from

https://www.discovernursing.com/specialty/nurse-entrepreneur#.VixmHvlViko

2. In discussing the different development and growth theories, I think Schumpeter’s theory of Innovation is the best because innovation is a critical dimension of economic change. Joseph Schumpeter argued that economic change revolves around innovation, entrepreneurial activities, and market power. He sought to prove that innovation-originated market power can provide better results than the invisible hand and price competition. He argues that technological innovation often creates temporary monopolies, allowing abnormal profits that would soon be competed away by rivals and imitators. These temporary monopolies were necessary to provide the incentive for firms to develop new products and processes.

3. Economic nationalism help the government controls the trading in the country. It 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.

4. The roles of government in economic development are regulating business, providing public goods, redistribute income and ensuring economic stability.

In regulating business, the government prevents business from taking unfair advantage of workers (discrimination, etc.). They also protect the consumers (FDA). The government promotes competition by creating and enforcing of the anti-trust laws (no monopolies).

In providing public goods, government tries supply to its citizens a special type of goods or services (streetlights, national defense, court systems, correctional institutions, law enforcement). The government merit and demerit goods that are considered as socially acceptable and unacceptable. For example is the strict taxation or regulation in alcohol, tobacco and firearms.

The government redistributes income by using taxes to assist citizens in need like Social Insurance Programs (SSS, GSIS) and Public Assistance Programs (DSWD).

The government ensure economic stability by keeping the unemployment rate and inflation rate low.

5. Political stability is the 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.

What is political stability? (2015, October 30). Retrieved from

http://www.ask.com/world-view/political-stability-2718e42bbeb25731

Political stability enables other macro-economic objectives to be achieved, such as stable prices and stable and sustainable growth. It also creates the right environment for job creation and a balance of payments. This is largely because stability creates certainty and confidence and this encourages investment in technology and human capital.

Policies for stabilisation and growth. (2015, October 30). Retrieved from

http://www.economicsonline.co.uk/Global_economics/Policies_for_stability_and_growth.html

6. One program of the government for the development of micro or small business is the Barangay Micro Business Enterprises Act of 2002. It's a law that (theoretically) allows businesses with assets worth less than 3 million pesos to be exempted from paying income tax. Registered BMBEs can avail income tax exemption from income arising from the operations of the enterprise; exemption from the coverage of the Minimum Wage Law (BMBE employees will still receive the same Social Security and Health Care benefits as other employees); priority to special credit window set up specifically for the financing requirements of BMBEs and technology transfer, production and management training and marketing assistance program for BMBE beneficiaries.

Business START-Up or Financial Investment? By Dr. Carl Balita

One cannot compare an apple with grapes.  Each has strength and risk but one can certainly engage in both business and investment.  In fact both have one end-in-mind – and that is making money.

Many investments are passive income.  They may generate profit for you without you having to work for it.  It is making money make more money.  From buying stocks to mutual funds, or other financial investments, you have nothing much to do except monitor some dynamics and measure to find out whether your money is making money.  There are companies or brokers who can guide you through it while you are learning how to do it yourself.  The risk is still there but if transaction is legitimate like those being offered by financial institutions like banks, the risk are well managed.  But unless you have big amount in these investments, and can afford to wait longer, I am biased at business start-up.

Last week, I wrote about the guidelines to investment, and let us review before I give you guidelines on how to start your business.  Those who missed that column may see and review it online at www.kabayanweekly.com.

I-nitiate a savings plan. You can’t invest something unless you saved.

N-ever succumb to the “wants.” Limit expenses to your needs.

V-alue every hard-earned money you have.  It is your sweat and blood.

E-xamine your options.  Ask! Research!  THINK and FEEL.

S-elect the best but don’t put all your eggs in one basket. Diversify!

T-ake personal responsibility for your decisions and investments.

My bias for business is for obvious reason that you can always dream big, start small and keep simple.  The business is yours and can grow it into an empire, which you can actually pass on to the next generation.  Your children cannot inherit your degree, license or employment – but certainly your children can inherit your business.  You can earn from the stockmarket but it will be a lifetime struggle to own or even be a majority stockholder of Jollibee.  But you can start a restaurant which you can grow to a brand that will compete with Jollibee.

There are many benefits from being in business – which includes being your own boss.  You will call the shots.  You could be in control.  Business can also be an expression of your creativity and passion in life.  It becomes an extension of your life purpose.  And it is your contribution to this world.

Here are some guides to STARTing a business.

S-eek the DECISION to start from the WHY you want to be in business;

T-hink of a BUSINESS IDEA that will sell and people will buy;

A-ccumulate RESOURCES that you will need to be able to start;

R-each the MARKET to understand it more

T-ry to EXECUTE as you expand the opportunities and calculate the risks

Start with a decision.  Don’t think too much, unless you already have the decision.  Don’t even search for a business idea before making a decision. The certainty of your decision will change the way you think and the course of action you will eventually take.  Some are thinking too much that they are taking forever to make a decision and upon making decision, they have to re-think and go back to zero wasting everything.  Between thinking and deciding, I suggest DECIDE! After making the decision, THINK, PLAN, and ACT with all the details towards your decision.  To simplify your decision making process, you have to be convinced WHY you should be in business.  With a clear answer to the question why, the how will be easier.  The biggest answer to why should overseas Filipinos be in business is – because they will soon be back for good to be reunited with the family and could still be productive as entrepreneur.

After the decision is made, the overseas Filipino should think of a business idea, which leads to a product or service that someone will buy.  Remember, you are only in business if someone buys from you and you are making money out of it.  Where will you get those business ideas?  Remember this TIP: Technology, Ideas, Passion.  Technology gives birth to another technology needed for it.  For example, the mobile phone gave birth to an idea of the case, the selfie stick, powerback, and others.  Look around you and find the technology that may give rise to more technology.  Ideas will come from asking yourself what is it that the people needs and wants? Provide them that and you will realize that there are many business ideas.  Passion is what you do best that you enjoy most doing that people will buy.  If you are good at baking or cooking or anything – that could be something the people will be most willing to buy from you.  Then you are IN BUSINESS.

After finalizing the business idea, you may start accumulating the resources you will need to start the business.  The resources include the 5 Ms which are money (capital), materials (raw materials), machines (equipment), manpower (people and teams), and moment (time).  Then later on come the methods (processes) and models.  Accumulate them and plan along the end-in-mind (plan).  Don’t rush these up, just enjoy within your capability to build them.  At the end of it all, you will still lack something.  Remember, a good entrepreneur will start with what they have (never mindful of their limitations).  They see what they have as good enough to start something.  If you will wait to complete everything you need, it will take forever! (and there is no forever!)

You have to understand the market more.  Specify and focus on your target market and study them thoroughly.  Who are they? What do they want? How do they want it? Where do they buy it? Why do they buy it? When do they buy it? And how much will they buy it?  The closer you get to the full understanding of the market, the more you will be able to win them and win over the competition.  Then look into the competition to make sure you have something better than what they offer.  Then you will WIN!

Then the best part of it is when you EXECUTE and TRY it.  This is where real entrepreneurs are differentiated from other people.  They execute to deliver results.  They don’t want to just sit down to plan and to talk to make a sound.  They want to act on opportunities and seize more opportunities.  They are not afraid to take risks – as they are capable of calculating risk and taking it.  If they fail and, if the failure did not kill them, then they will bounce back and make sure they learned the lessons to make their next try better with their hope for the best.

If after reading this column you feel itching to take action, you are a budding entrepreneur. DECIDE to be one and the rest will follow.

Invest… fail… invest By Dr. Carl Balita

I am glad that investment has become your interest.  And the fact that you have tried and failed, it means you have what it takes to be successful the next time around.  Remember: there are NO mistakes, just lessons. I just hope that your failure will not be a reason for you to give-up.  I want to capitalize on your positive attitude and action of having invested already.  The sad part is, you have failed. But the good news is that you may have learned the best lessons and you can now bounce back and move on forward towards the right direction of investment, and getting into business as well.

Here are some simple tips on INVESTment!  These do not guarantee foolproof success but certainly will manage the risk and will provide you simple guide to PROSPERITY.

I – nitiate a savings plan

N – ever succumb to the “wants”

V – alue every hard-earned money you have

E – xamine your options

S – elect the best but don’t put all your eggs in one basket

T – ake personal responsibility for your decisions and investments

Initiate a savings plan because if you don’t have one, you have nothing to invest.  The rule is simple: allocate savings first before the expenses.  If there is a will, there is a way!  The formula of the rich is: income – savings = expense!  The poor man’s formula is: income – expense = savings!  The poor man’s formula ends up to negative.  The rich becomes richer because they see money as a resource that gives more money; unlike the poor who looks at money as something to spend.  You have to consider savings as a disciplined priority.  It is a MUST and no matter how small, savings should be reserved.  Overseas Filipinos may need to discuss this with the family so that they become part of the planning and the disciplined practice of savings.  Many financial experts propose that a family should have a savings enough to cover the three months of family expenses and possible emergencies.  But wait! Savings is NOT yet the investment.  The money deposited in the savings account is not investment and will not earn significantly.  Save so you can make money earn more money through investments.

Never succumb or give-in to the wants because they are unlimited and bottomless. Our wants will always be beyond our current resources to achieve.  They are very powerful force that will compete with what matters most – the needs.  You and your family should focus on the need, rather than the want. For example, the need for a communication gadget need not be the expensive mobile phone that they want. Stop making your family feel good about your material compensation for your being away from home!  Focus should be on the needs, which if not fulfilled will cause you to die or not survive like food, shelter, others! Let the wants be the aspiration or a dream to save for and to work hard for.

Value every hard-earned money you have.  You and your family should realize that the overseas employment is a difficult decision and that it is never easy to earn the money overseas.  Every peso spent should be a reminder of how many meals are missed and how sad it was to earn it.  The monetary conversion may confuse but there is a need to give valid justification for every remittance sent or purchase made out of it.  The overseas Filipinos should avoid making it look easy and happy being away from home.  Make them feel the truth about your work and your struggle to earn! Don’t sugarcoat your sadness.

Examine your options.  Try to compare one investment with another, and with more.  Begin with the vendor.  Look into the credibility of the person convincing you! Don’t deal with someone who has a bad reputation on money matters, and people who have nothing to lose.  Then, consider the stability of the company behind the investment.  Search for proofs of that stability through various and not only a single source like a flyer.  Understand the scheme! Never enter in a multi-level marketing or networking, which products are not worth buying for its worth, and whose income comes from recruiting people who will pay membership fees rather than by selling worthwhile products.  Ask about the risk! The investments with the promise of high and fast income are almost always high-risk investments.  Be realistic!  Moderate your greed.  Many greedy investors end up as victims of scams.

Select the best options by eliminating those that are not worthy of your trust.  Establish your own criteria and compare one option over the others.  Then choose the best options.  In the beginning, it is advisable to distribute your investments among several best options until such time that you are convinced that one is the final basket, which will deserve your trust and confidence.  Be patient.  Only time will tell.

Take personal responsibility for your decision and action.  It is psychologically refreshing to blame others for making you a victim; but in the end, you should take personal responsibility for whatever decision you take and actions you make.  This is why one needs to be personally in-charged.  An educated and empowered decision usually leads to successful outcome.  If you refuse to be a victim, you will take the necessary precaution and will empower yourself with correct information.

Which is better, financial investment or business?

Why overseas Filipinos need to be entrepreneurs By Dr. Carl Balita

Filipinos are not entrepreneurial.  If Filipinos were, the Philippines would have been rich. Given the rich resources we are blessed with as a country, the Philippines could have exported more than its people.  And knowing the creativity and passion of the Filipinos, there is no reason to doubt that we can be entrepreneurial.

The usual excuse is the lack of capital.  I disagree! How come we have money if we need to pay placement fees? It is because the overseas employment has fascinated us more than the risk of getting into business.  There is nothing wrong with overseas employment, but I should say there is no forever in this career.  What we lack is the decision to be in business and to take the calculated risk towards a dream business and growth.

As you are reading this column, you should be convinced that entrepreneurship is you next option – your life’s next big thing.  Here are seven reasons why an overseas Filipino needs to be in business:

1. Because overseas employment is only temporary and the Middle East offers very slim chance of permanent residence.  Acknowledge the fact that you shall be back sooner than later.  There is no forever in overseas employment.  The opportunities you have in this country are limited to your productivity.  You don’t want to age or die here, don’t you? You have to envision your productive integration!

2. Because your family needs you! Yes, for now, they value the sacrifices you both make to be away for some material benefits, which are not as much as compared when, you were home.  But there is social cost in overseas employment that money can’t buy. Ask them and they will choose to be with you instead. You have to dream with them about being home soon! 

3. Because there are no job opportunities back home, which can match your income overseas – and business is the only way to earn as much as you are earning abroad.  You can’t be less productive or unproductive when you are back home, right?  Believe that there are opportunities back home too!

4. Because you have been exposed to many ideas that can lead to your business.  You have seen products and services as well as lifestyle and workstyles that you can adopt when you decide to be in business. Look around and find time to learn and grow as a person.  Spend productive days and nights in preparing yourself for your grand return. Bring home the best business ideas you see overseas!

5. Because Philippine economy is improving and business is good back home.  With the recent development like the ASEAN Economic Cooperation, business opportunities are getting better in the country and that you are prepared for it.  Embrace the global opportunities available in the Philippines!

6. Because you have the qualities to be a successful entrepreneur! In the future column, I shall characterize the entrepreneurs as they take the road of entrepreneurship, and I bet that there are more of these qualities that are already with you. Your courage to take the risk of overseas employment itself is the biggest proof that you can be a successful entrepreneur.   Level up from being an overseas Filipino into being an ENTREPINOY HERO.

7. Because more and more Filipinos have been convinced that entrepreneurship is one of the best careers we can pursue if only to be rich and most productive.  The richest families in your community must be engage in business (or monkey business, which I discourage!).  You can follow their lead to the decision to be one entrepreneur when you get back home.  Think Rich and Be Rich!

8. Because there is no place like home, and that your heroism does not end in your overseas employment.  There is more that you can do even in the comfort of your own home and in the caring embrace of your community and country. Your family needs you and your country is waiting for you.  Be Home!

When the “why” is big enough, the “how” is going to be easy.  As the Filipino saying has it: Kapag gusto may paraan, kapag ayaw may dahilan (If one wants it, there is a way; if one does not want it, there is an excuse).  I have given you eight reasons why! There are more within you that will justify the dream to be back home as entrepinoy hero.  Begin with that dream, for it is the seed that will be nurtured everyday until it becomes a reality.

Believe in that special moment when the dream and the dreamer become ONE in you as an entrepinoy… and still a hero…