Development of the Circulation of Money
During the ancient time….
• Barter system- Goods and services are traded in exchange for other good.
Money Economy
Money• medium of exchange• is commonly accepted by a group of people for the exchange of goods, services, or resources. Every country has its own system of coins and paper money.
Money economy• Where goods and services are paid in currency or money
Money Economy
Paper money is invented in
China.
The Lydians became the first in the Western world to make
coins.
To commemorate the Centennial of Independence from more than 300
years of Spanish colonial rule in 1998, the government of the
Philippines wanted to do something very special. It issued the world's largest banknote (14" x 8 1/2"),
beating the previous record: China Ming Dynasty 1 Kuan (8 3/4" x 13
1/4").
Transactions by Households and FirmsHOUSEHOLDS FIRMS
Owns factors of production, including labor, which they supply to firms
Use factors of production supplied by households to produce goods and services
Receive incomes from firms in exchange for supplying factors of production
Pay households for use of factors of production
Spend on goods and services produced by firms
Sell goods and services to households
Includes the entire population of society
Provideconsumers with goods and services
Exists when people who are willing to work cannot find jobs
Firms hire productive services from households. They do this to make profit by selling the goods and services they produce to households
firms cannot sell all the goods they are producing
They cut back on production and reduce their work force
People lose their jobs and become unemployed
Inflation • is defined as an increase in the general
price level
Growth
• Occurs when unemployed resources are put back to work and when there is increased flow of goods and services from firms to households and increased flow
of income to households
Entrepreneurship on the context of small and medium-scale industries and its role in economic growth
Micro Less than- 50,000php
Cottage 50,001php- 500,000php
Small 500,001php- 5,000,000php
Medium 5,000,001php- 20,000,000php
Various Business Opportunities in the Community
Business opportunities are everywhere as long as there are people with money, and they are willing to satisfy their needs.
Real entrepreneurs can see more business opportunities because they are creative, resourceful and risk-takers.
They create opportunities instead of waiting for opportunities to come
Factors /resources to be evaluated for higher probability of success:
Markets
•Number of prospective buyers•Presence of competitors•Prices •Quality of goods and services
Individual Interests•Business interests of individuals vary•Interests should match opportunities
Capital
• Money is very important in putting up a business.
• The availability of funds should fit the type of business to be organized.
Skills
• The entrepreneur should have the proper skills in the business he is going to undertake
Suppliers of Inputs
• It is important that there are steady suppliers of raw materials and other inputs of the business.
• If there is no materials to be used in production, then nothing will be produced
Manpower
• People are the most important resources.• The success of any business depends on the
efficiency of its employees
Technology
• Tastes and preferences of consumers are not permanent. These are heavily influenced by innovations.