Wednesday, January 30, 2013

UST AB Assignment: Rural Entrepreneurship: Grassroots Economics in Action

Dr Abe V Rotor 
A lecture outline on rural entrepreneurship
Communication Art: (3CA3, 3CA1, and 4CA5) Feature a model rural enterprise.  Cite facts and references.  Regular bond, handwritten.

Living with Nature School on Blog
Paaralang Bayan sa Himpapawid (People's School on Air) with Ms Melly C Tenorio
738 DZRB AM Band, Evening Class, Monday to Friday

 Farm-to-market enterprise (Manaoag Pangasinan); fishpen tilapia culture 
(Tiaong Quezon); bamboocraft (Bilanonan, Pangasinan)


 Give a man a fish and he will live for a day;(aids, grants, donations, etc)
    Teach a man how to fish, and he will live for many days, (skills development)
if I may add on following the trend of Confucian philosophy-
   “ Guide a man to raise fish, he will live for a lifetime.” (entrepreneurship)
1.    The rationale of rural entrepreneurship finds no reason for debate among those who      believe in such principles of development based on
·         internal growth
·         bottom-up approach
·         grassroots-based
·         people empowerment

2. Rural entrepreneurship focuses attention to the solution of present ills of Philippine society characterized by
·         exodus to cities and other urban areas
·         hemorrhage of human resources attracted by opportunities abroad.
·         mass poverty (around 50 percent living below the poverty line.)
·         poor quality of life, as a consequence.
·         reliance on external-led economic formula

3. Enterprise system provides/strengthens the links of

farm and market
production and processing
research and technology
principal and secondary processing
enhances value-added to products
equitable sharing of the benefits among the various sectors involved, 
optimum utilization of resources, 
reliable delivery/ distribution of goods

 The system leads on to the development of a higher level of enterprise which may involve diversification and integration, export- directed products, and the like, all leading to a common idea that entrepreneurship encompasses a wide range of business opportunities which leads us to two topics: leadership and enterprise models.

4.    Entrepreneurship rests on quality leadership and proven projects models. There are three phases of development, namely: social preparation, technical, and entrepreneurial preparations. 

5. Rural enterprise models of local or indigenous setting are found almost everywhere. To cite

  • Multiple cropping systems of Cavite and Ilocos (high- value crops revolving on rice and corn)
  • Agro-industrial in Bulacan and Laguna (Village- based dairy, food processing, etc)
  • Multipurpose cooperatives (rice milling and trading, market vending, irrigation, etc). There are many advantages of adopting local models, especially if they lend themselves to practical innovations. But this should not close our sight to suitable foreign models.

Typical buko (young coconut) station 

4. On the macro level, rural entrepreneurship must be extended necessary support and protection mainly through government policies like
  • Protectionism to guard against unfair competition particularly from foreign enterprises/ interventions,( A review of the import liberalization policy is deemed necessary.)
  • Removal of unnecessary bureaucratic control/ barrier·  
  • Assurance of peace and order
  • Provision of basic infrastructure
  • Physical (Roads, Bridges, port facilities, etc.)
  • Social (Cooperative structure, “Kalakalan 20” or family based- village type enterprise structure)
  • Education - emphasis should be towards functional literacy (one out of 4 Filipinos are functionally illiterate. Less than 10 percent of agriculture graduates go into farming)

As a rural enterprise grows it strives for viability and self-reliance, working on the principle of cooperation and linkages with other sectors and organizations. Government provides a protective umbrella that is important to enhance the growth and the development of rural enterprises. 

5. Unity of economics and ecology in rural entrepreneurship.

·    The “Unity of Enterprise” must be attuned to the “unity of the environment.”  The environment should be regarded as an ecosystem where all parts harmoniously work together. We help the ecosystem sustain its balance by protecting our forests, rivers, plains, coral reefs, and  other ecosystems.

Entrepreneurship should aim at enhancing the ecosystem’s balance, this being the foundation of sustainable productivity, the most important heritage we can pass on to the next generations.

On the enterprise level (micro), the concept of optimum resource utilization can be translated through vertical and horizontal integration. The Buspan (Bulacan) Multipurpose Cooperative embarked into this kind of integrated enterprise which has the following components: irrigation, rice milling, warehousing, input distribution, credit, waste recycling, grain drying, root crops and vegetable growing, and soon, cattle fattening

I hope that this article has opened up greater awareness on rural entrepreneurship as a vital component of any development formula. In fact, in many instances it is the formula itself. 

Rural entrepreneurship and cooperativism ideally go together. They provide a system for  collective expression, of thinking together, of sharing benefits and well as facing challenges, by working together, and moving forward together towards a common aspiration and goal.

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