Checklist For Evaluating Internal Controls Essay Example for Free

Checklist For Evaluating Internal Controls Essay For publicly traded companies, the Sarbanes-Oxley Act of 2002 requires an audit of internal controls. The purpose of an internal control evaluation is to evaluate risk, which offers auditors a basis for audit planning and provides useful information to management (Sox Law, 2006). Auditors typically use the five basic components of internal control to approve the entire system. According to Louwers, Ramsay, Sinason, and Strawser (2007) the five components to internal controls include control environment, risk assessment, control activities, monitoring, and information and communication. Control environment involves the tone of the organization and includes â€Å"the integrity, ethical values, and competence of the companys people† (Louwers, Ramsay, Sinason, Strawser, 2007). Risk assessment involves a thorough assessment which â€Å"identify(s) risks, estimate their significance and likelihood, and consider how to manage the risks† (Louwers, Ramsay, Sinason, Strawser, 2007). Control activities involve specific actions which help ensure that management’s goals and projections are met. Monitoring involves the continuous assessment of internal controls. Information and communication relates to the efficiency and reliability of information and communication regarding how the information is presented and communicated to users. Internal controls protect the financial information and operations of a business. The development and implementation of these controls are typically the responsibility of the business owners. Internal or external audits may be used to gauge the efficiency of internal controls. This audit generally takes place following a standard process of risk measurement regarding the business operations and financial information. The measurement data is most effectively determined by using an internal control checklist. Checklist Phase One: Understand and Document the Client’s Internal Control Obtaining an Understanding Control Environment Evaluation Risk Assessment Evaluation Information and Communication Assessment Phase Two: Assess the Control Risk Phase Three: Test Controls and Review Control Risk Reassess Controls Direction of the Test of Controls Reassess the Control Risk

Are major programs considered temporary of permanent organizations

Are major programs considered temporary of permanent organizations From a management perspective, should major programs be regarded as permanent or temporary organizations? Change is permanent therefore all organisations are temporary. So does it matter if management regards major programs as temporary or permanent organisations? The answer is it does. Major programs are a social construct and there appears to be significant differences in culture, behaviour and performance that vary with the perception an organisation attaches to its lifespan. In this essay we will ask what major programs are, how they come about, what their purpose is, how they are planned and how all of this should be taken into account when considering whether they should be regarded as temporary or permanent organisations. We will explore cultural and behavioural characteristics to be found in permanent and temporary organisations and consider how this affects performance and outcomes. We will refer to theories of organisational design to see how major programs might be classified and structured in order to assess whether a temporary or permanent organisation is best suited to eff ective management. Finally, we will come to a conclusion about; whether, from a management perspective, projects should be regarded as temporary or permanent. Major programs can be viewed as the big version of programs which, themselves, are a collection of projects being operated for a common goal. Big in this context  [1]  refers to long duration (c7-10 years), and high cost (>$1bn). Beneath the surface there are many other complicating variables that impart each major program with its individual character. These include but are not limited to: significant bespoke product customisation, unprecedented scale, significant reputational factors, transformational change, continuous changes throughout life. With all this combined they present a much more complex and challenging environment than the single project. Major programs are commissioned in order to deliver a step change on a strategic scale. Quinn (1978) says they are a response to change deficit. Thiry (2007) says the need to change is usually caused by an unsatisfactory condition (p.119) which could be unsatisfied ambition. As they consume a substantial share of the organisations resource and capital for a sustained period they are authorised through the strategic plan. The need to maintain this link to strategic intent creates one of the most important issues and challenges relating to temporary or permanent form. In his widely respected work The Rise and Fall of Strategic Planning Mintzberg makes the argument that plans and strategy are not all deliberate. They operate within an unstable world where factors beyond organisational control are constantly interacting to create new realities. In this world the intended strategy is impacted or replaced by what Mintzberg terms as emergent strategy. Due to their duration, major programs m ust adjust to changed circumstances by making changes to their own plans and objectives. By virtue of their scale they also need to feed back into the strategy planning environment as an input, which will in turn influence emergent strategy via a Double Loop process (Thiry and Deguire 2007). From a company management perspective it is therefore important that a major program is operated through an organisation whose life expectancy and philosophy is aligned with strategic intent rather than specific start and end points along a simple time line. In the opinion of Thiry this requires regular reviews to ensure the program is on target, requiring adjustment and still needed. The termination date that is determined by the realisation of benefits rather than a handover to operations at product completion (Thiry 2007). Taking this notion still further, some major programs are now organised around a Build Own Operate (BOO) model, Jaafari (2007). BOOs are permanent organisations designed to counter the risk that project teams see themselves as temporary organisations who are not involved in realising benefits. To theorists like Thiry the link between the major program organisation and strategy is paramount. He states that programs need to produce business level benefits and are a link between strategy and projects Thiry (2007) p.114). So from its inception to its termination point the life of a major program is governed by strategic delivery. The role of the plan also has an influence on the practicalities of working via a temporary or permanent structure. Project teams organised according to conventional project management standards work best with fixed and accurate plans. The plan is the vehicle for their organisation. By approving the plan the permanent organisation is effectively creating a contract that delegates authority to a local organisation Ives (2005) p.45 that can take decisions and act quickly without constantly referring to the chain of command as it goes about its business. This style of project management, works well with a well-defined and accurate plan. But the plan for a ten year major program costing $1bn is inevitably going to be inaccurate (ref Mintzberg). The role of the external environment is likely to be greater, the program leader will be forced to spend time dealing with outside bodies (regulators, pressure groups) Hobbs and Miller (1988) p.147, there will be a need to appraise and review Thir y (2007) p.133 and, with so much company resource tied up in its operation, the program has a role to play in institutional learning, staff training and development. These fluid conditions do not support the fixed plan model. They are more familiar to general managers in a permanent organisation than project managers in a temporary organisation. This creates a tension in organisational design. The fact that project management has become the popular engine of change even leading to colonisation and the projectification of society Maylor et al (2006) p.664 testifies to dissatisfaction with past performance. Major programs had a history of failing even before they were called major programs. The adoption of a project approach is proof that organisations need special help to overcome internal resistance and opposition to strategic change. The project based temporary organisation offers the promise of being more single-minded, target driven, dynamic, better at lateral communication, fast er at decision taking and acting, undistracted, specialised and clear in mission. To explore the implications of adopting a temporary organisation structure in more detail it is useful to refer to A theory for the temporary organisation Lundin, R.A. and Soderholm, A. (1995). This theory refers to basic concepts of Time, Task, Team and Transition. It suggests that permanent organisations have a view of the world that is based on their presence continuing forever. By contrast temporary organisations use time as a primary measure. Key events actions are dimensioned against a linear time-line. Whilst permanent organisations are accountable for financial performance, the temporary organisation is given dispensation from fiscal contributions and any other distractions. The temporary organisation (Team) is funded to deliver an output which will eventually be transferred (via Transition) to the permanent organisation who will use it to create value in line with the strategic intent. The temporary organisation could be regarded as an entrepreneurial substitution for market pricing. According to the theory the temporary organisation passes through a sequence of phases that begin when a group promotes the Task for the project (Action based entrepreneurialism). Fragmentation of commitment building occurs when the team decouples from the organisation from other past, contemporary or even future sequences of activities. Planned isolation describes the process where the team closes itself away by deliberately isolating the organisation to execute the plan for which the whole operation should proceed like a train moving at high speed towards the end station without unwanted stops. Institutionalised Termination describes the process where the team is recoupled to the organisation and delivers their output to operations via a bridging process. Although this sequence would support a conventional project, a temporary organisation following this behaviour is unlikely to successfully span a ten year major program lifecycle. The emphasis on isolation, time based delivery and a fixed plan is unrealistic. Over a ten year period the temporary and permanent organisation will need to systematically exchange data, staff and revised plans. Splendid isolation with high speed delivery and no unwanted stops is not practical. Lundin and Soderholm only considered two types of project. Unique where the project was exploring new ground and repetitive which was a project (like construction) based on previously tried and tested plans. To move the discussion forward it would be useful to consider how a program might be classified in order to create an appropriate organisational design that fits the needs of strategy. In the case of major programs even repetitive projects (for example bridge building) present sufficient local variation for the managers to feel their task is unique. To consider whether temporary or permanent is best it would be useful for management to be able to assess the context of their specific project. Shenhars Diamond Model Shenhar (2007) based on contingency theory is useful for this. It appears to be applicable to the full spectrum of projects from single project to major program. Shenhar eschews the one size fits all p.10 Shenhar (2007) methodology of standard project management in favo ur of using classical contingency theory to address the need for adapting the right style to the right project Shenhar (2007). Having studied 600 projects Shenhar developed a view using Uncertainty and change, Complexity and Pace (UCP) as dimensions for plotting project profiles in his Diamond Model. To obtain readings to feed into the model managers are asked to follow a three step process to assess the Environment, Product and Task for the project. The goal is to use this data to plot a project profile that can then be used to identify specific managerial activities, decisions and style that are best appropriate for each level and each project type. The UCP model was expanded into NTCP with 13 readings on a four dimensional scale. Figure 1 NTCP Model (c) Shenhar 2006 (Reinventing Project Management) The system allows management to map out the scope / profile of a project with each point along the four dimensions analysed by variables giving relevant advice. A major program might well have a Complexity that is described at the Array level (large widely dispersed collections of systems function together to achieve a common purpose). Shenhars system states the Project Organization for this should be: An umbrella organization usually a program office to coordinate subprojects; many staff experts: technical, administrative, finance, legal etc. p.191 Shenhar (2007) Wiley. But he does not apply contingency theory to the structuring of an organisation. He also takes a conventional view on project lifetime. Though he is dismissive of narrow project management by Triple Constraints (cost, time and scope) he accepts the norm that projects can be seen as temporary organisations within organisations. The use of contingency and organisational theory in project organisation design is purposefully addressed by Molloy and van Donk. In their paper From organising projects to projects as organisations they detect a turn to a focus on structural, contextual and contingent factors or projects that supports an exploration of the relevance of organisational theory to project management p.131 Molloy et al (2008) They refer to the work of Mintzberg which bases organisational structure on nine design parameters influenced by five contingency factors, to map types of project to Mintzbergs five organisation structures (Simple, Machine bureaucracy, Professional bureaucracy, Divisionalised form, Adhocracy). Although major programs were not specifically included in this exercise Molloy and van Donk encourage the view that under different circumstances different organisational structures will be needed to be successful p.130. The message that is evolving for management from this exploration is that the question of whether major programs should be regarded as temporary or permanent organisations is entwined in a wide range of threads. Context, adaptation, flexibility, strategic alignment and a departure from the rigid standardisation of project management appear to be present. This is not a concern if you take the view that major programs can hold both permanent and temporary status. If you also believe it is possible to design a temporary organisation with a different management structure to the standard project management approach, you open the door to organisational theory and a contingency based approach and, this seems worthwhile. Organisational designers like Galbraith provide access to theories that have grappled with issues that are currently challenging project management and major project management. In particular, the view that organisations compete and gain advantage through organisational structure (Ref like the New Management Paradigm Gareis (2007) p254. The need for wider thinking is apparent from the realisation that major programs are capable of evolving from start-up to termination over ten years whilst passing through phases where they develop into large-scale enterprises involving many participants divided across many activities and sub-projects. There are obvious parallels with the way that permanent organisations develop under similar conditions. For management who have given the go ahead on a strategic plan with a ten year timeframe and a $1bn budget there are potential benefits in a contingency based process that uses Galbraiths Star system Galbraith et al (2002). This works through a dedica ted organisational design process that starts with Strategy and progresses through Structure, Processes, Rewards system and People planning (including policies on training and development). This seems a sensible alternative to a one size fits all philosophy that presumes a project is a temporary endeavour undertaken to create a unique product or service. PMI (2000). At this point we have travelled some distance from the original question about whether major programs should be regarded as permanent or permanent organisations. We started with strategic alignment because this is so important given the scale and importance of major programs. This was shown to be difficult to maintain using an approach based on project management in a temporary organisation that is narrowly managed by methods built around the Triple Constraint of time, cost and scope (Shenhar 2007). Major programs require input from many of the behaviours and methods used by permanent organisations. But this has to be managed carefully. Major programs still require the benefits of separation from the permanent organisation that accrue from successfully harvesting project virtues of dynamism and commitment to change. As long as project methodology is not allowed to gum-up progress with unhelpful adherence to rigid controls and time based management, it can still offer an escape from t he failure of permanent organisations to adopt change and give up bureaucratic structures. In search of a way to combine project management with appropriate organisational theory we saw how to classify a project using contingency theory and we were introduced to the Star framework that could be adapted to the management of major programs. Organisational theory has covered much of the ground that leads to discussion over whether major programs should be regarded as temporary or permanent organisations. Contingency theory and organisational design theory offers a way to design a delivery organisation that blends the benefits of both worlds. The conclusion from this discussion is definite. From a management perspective the decision to establish a permanent or temporary organisation for major projects should always be contextual. The start point is strategy. From this position management has to take account of the characteristics of the project and its environment. Calling on frameworks of analysis, a design should be formulated that maximises organisational efficiency in terms of project management, benefits delivery and strategic fit. At the end of this process, having maximised their prospects for success, the designers should step back and regard their creation. From this perspective, where they are standing at a safe distance from professional dogma, they can relax and observe whether what they have created a permanent or temporary organisation, or both.

Dale v. Boy Scouts of America Essay -- Homosexual Rights Court Papers

Dale v. Boy Scouts of America This case deals with the Plaintiff's expulsion from his position as Assistant Scoutmaster in a Boy Scouts of America (henceforth called "BSA") troop due to his status as an active homosexual. Dale, the Plaintiff, was serving as an Assistant Scoutmaster in 1990, when, due to a local newspaper article, it was discovered by officials in the local Monmouth BSA Council that he was an active homosexual. A letter was sent to Dale by the Council, notifying him of their decision to revoke his membership in the organization. Dale sent a letter in response, asking why this action was taken. The Council then notified Dale that his homosexual activities made him ineligible for membership in the BSA, as well as making him ineligible to serve as an adult leader. In September 1990, Dale contacted the BSA Regional Director, requesting a review of the expulsion decision. The Regional Director's office responded to Dale via letter, notifying him of the Director's decision to support the Council's actio n, and also notifying him of the National BSA Council's pending review of the case. New Jersey Superior Court Analysis Rather than wait for the National Council's decision, Dale filed a lawsuit in the New Jersey Superior Court against the BSA in July 1992. In the lawsuit, Dale claimed that the BSA is a place of public accommodation, and as such, violated the New Jersey Laws Against Discrimination (LAD). LAD states the following: "All persons shall have the opportunity to obtain employment, and to obtain all the accommodations, advantages, facilities, and privileges of any place of public accommodation, publicly assisted housing accommodation, and other real property without discrimination because of race, creed... ...significant precedent. It is also quite conceivable that Dale will last no longer than the current class of Supreme Court Justices. Assuming a few more years, it is doubtful that Dale would have been decided the same. One never knows. Perhaps this case will be seen as another Plessy v. Ferguson. Works Cited New Jersey Supreme Court. Dale v. Boy Scouts of America et. al. URL: http://lawlibrary.rutgers.edu/courts/supreme/a-195-97.opn.html Superior Court of New Jersey-Appellate Division. Dale v. Boy Scouts of America et. al. URL: http://lawlibrary.rutgers.edu/courts/appellate/a2427-95.opn.html United States Supreme Court. Boy Scouts of America et. al. v. Dale. URL:http://usgovinfo.about.com/newsissues/usgovinfo/gi/dynamic/offsite.htm?site=http://caselaw.findlaw.com/cgi%2Dbin/getcase.pl%3Fcourt=US%26amp%3Bnavby=case%26amp%3Bvol=000%26amp%3Binvol=99%2D699

Baldwins Perspective in Notes of a Native Son Essay -- James Baldwin

James Baldwin Born in Harlem in 1924, James Baldwin grew to be a complex man with many aspects. As an avid reader as a child, Baldwin soon developed the skills to become one of the most talented and strong writers of his time. His first novel was written in 1953 and was called â€Å"Go Tell it On the Mountain† and received critical acclaim. More great work from this novelist, essayist, and playwright were to come, one of which was â€Å"Notes of a Native Son,† which was first published in Harper’s Magazine in 1955 and was also first known as â€Å"Me and My House.† In â€Å"Notes of a Native Son,† Baldwin exercises his many talents as an essayist in how he manages to weave narratives and arguments throughout the essay. He is also able to use many of his experiences to prove his points. Baldwin effectively interlaces his narratives, arguments, and experiences so as to reach his central idea and to advocate the overall moral that he has learned to his a udience. This is what makes Baldwin so unique in his work: his ability to successfully moralize all people he comes in contact with. â€Å"Notes of a Native Son† is faceted with many ideas and arguments. The essay begins with Baldwin recounting July 29, 1943. The day his father died and his mother bore her last child (63). Baldwin shares his fathers’ past and of the hate and bitterness that filled him and how Baldwin realizes that it may soon fill him also. Baldwin spends the rest of the essay mostly analyzing his experiences and the behavior and mentality of his father, of whom he seemed to dislike. He comes to the conclusion that one must hold true two ideas: â€Å". . . acceptance, totally without rancor, of life as it is and men as they are: in light of this idea... injustice is... ...w had been laid to my charge to keep my own heart free of hatred and despair. This intimation made my heart heavy†¦Ã¢â‚¬  (84). Now that his father is gone, he wonders how strong he will remain. How will he maintain his strength? His father gave him what he needed to break free from hatred and to be strong, but now Baldwin desires that his father was still there with him to keep giving him what he needs. To keep giving him all the answers, so as not to lose all of the strength that keeps the rage in his blood from overflowing. To keep him away from the disease that ultimately brought down his father, and if he loses that strength, he will ultimately bring down himself into his own destruction. Works Cited Baldwin, James. â€Å"Notes of a Native Son.† 1955. James Baldwin: Collected Essays. Ed. Toni Morrison. New York: Library of America, 1998. 63-84.

Rape and Responsibility Essays -- Argumentative Persuasive Topics

Rape and Responsibility      Ã‚  Ã‚   When I hear the word "rape," I immediately visualize assault, violence, force, and pain. However, today, there are pills slipped into drinks, thus skipping all of the brutality and allowing the attacker to walk away unscathed. But above all of the pills and physical violence, there lies another story that is more commonly heard of today: rape through blame and excuses. What this means is that, more often than not, women wake up from a night of alcohol consumption, drug abuse, or from a situation where they were not strong enough to say "No," and they cry rape. It is because of this frivolous definition of "rape" that women who are actually attacked are finding it harder and harder to present a case for themselves. Now the question of rape has found a new urgency due to a dramatic increase in rape cases on college campuses. Administrators are using terms such as "verbal consent" and "dating codes." These are just two small sections concerning rules for dating due to the dramatic increase in the cases of sexual assault on campus. Claims of rape and sexual assault are on the rise, and most of these cases are false claims.      Ã‚  Ã‚   Many of these mock rape cases occur when a woman is not strong enough to say "No" and understand that her consumption of alcohol and drugs may impair her ability to act wisely. In these cases, the woman has not been raped. Of course, this does not give a man the right to take advantage of a woman when her judgment has been impaired, simply because it may not be defined as a rape case. However, the fact remains that a woman who puts herself in a vulnerable position should bear some of the responsibility for a sexual assault, both in preventing i... ...ape occurs when one partner's words and demands go unanswered by the other. When a woman says "No" in a clear and strong voice, she means "No," there is no other way to define it. The sooner women learn how to use this word and mean it too, the sooner they can save themselves and their male "attackers" a great deal of grief. Along with this goes the understanding that women should not put themselves in a vulnerable position where they can be taken advantage of. If a woman impairs herself by drinking alcohol or using drugs, and then consents to be alone with a man in a dark room, what exactly does she expect?    Sources   Gaitskill, Mary. 1998. "On Not Being a Victim: Sex, Rape, and the Trouble with Following Rules." In: Gilbert Muller (ed.). Here and Now : Current Readings for Writers. New York: McGraw-Hill Companies, Inc., p. 167-180.      

The Sociological Imagination – Obesity in United States

Obesity has become a large and dark reality in United States. For someone who does not have sociological imagination being overweight is the result of bad personal choices or genetic predisposition. Being overweight might have been the result of past individual struggles that were caused by wrong individual decision-making or behavior. For those who get the interplay of the heart of sociological imagination this is a complex social issue that is the result of patterns of modern economic and social life. Obesity’s effect in society can be seeing in the number of life-long and potentially life-threatening diseases and conditions, like high blood pressure, heart disease, and diabetes. People who get sociological imagination would most likely blame how the increase in these diseases put pressure on the health care system in the United States; thus, causing the taxation of already overcrowded hospitals and overworked health care professionals. They might also think that the impact on obesity is linked to diseases that contribute to early death and create an economic burden. A sociological imagination might blame these to the public policies that contribute to the problem are restaurant industries that serve inexpensive and easy-access foods with high calories and low nutrition. A demographer is someone who statistically studies the human population. According to Dr. Crosnoe, in order to compare different populations, we need national or international data. As a demographer, I want to find out the rate of obesity in each state, what ethnicity and race has the highest obesity rate, and the lifespan in United States. I would survey the human population in the United Sates to find the characteristics of the population in obesity. According to CDC report, non-Hispanic black is at 36. 8% and Hispanics is at 30. 7%. Thus, a demographer might hypothesizes that family influence is the causes of obesity. Too often Americans eat out; consume large meals and high-fat foods, and put taste and convenience ahead of nutrition. I can use this survey to rank racial groups in the United States. I can look at the trend of lifestyle behaviors such as what a person eats and his or her level of physical activity. Obesity continues to be a major health problem in the United States, leading to high rates of mortality. A historical sociologist is someone who studies trends across time using historical data. As a historical sociologist I want to know the factors that causes obesity, change in lifestyle. As a historical sociologist might hypothesizes that technology changes affect the obesity rate to go up since the 80s. I can look at how technology has made our lives easier and at the same time, made people lazy. For example, today, more people drive long distances to work instead of walking, live in neighborhoods without sidewalks, tend to eat out or get take out instead of cooking, or have vending machines with high-calorie, high-fat snacks at their workplace. Health-care providers must pay closer attention to obesity, and importantly, do their part to prevent obesity by focusing on children and adolescents who are only slightly or moderately overweight.

Entrepreneurship In The Philippines Essay

The Philippines is a highly entrepreneurial country. The main reason that drives its entrepreneur spirit is its poverty. Small and medium-sized enterprises (SME) account for the largest share of Philippine entrepreneurs. SMEs, including micro-enterprises, account for 99 percent of all business establishments and 60 percent of the exporting firms in the Philippines. SMEs currently employ about 55 percent of the Philippine labor force and contribute 30 percent to total domestic volume sales. Women hold significant leadership positions in national and local government, universities, business corporations and family business enterprises in the Philippines. 51% of entrepreneurs in Philippines are female. Challenges for entrepreneurs in Philippines include a lack of research and development, inadequate access to technology, financing—most entrepreneurs starting small business in the Philippines have difficulty acquiring capital, a lack of marketing advice and logistical problems. The Philippines government sees that Entrepreneurial efforts will help ignite economic growth, improve living standards, and build a worldwide market for Philippine products so they welcome foreign investors and offer incentive and support by lowering tariffs, opening its entire economy, including land ownership and â€Å"free trade. † Entrepreneurs are the backbone of our economy. The Philippines is an entrepreneurial country. Small and medium-sized enterprises (SME), including micro-enterprises, account for 99 percent of all business establishments and 60 percent of the exporting firms in the Philippines. According to the Department of Trade and Industry, SME’s currently employ about 55 percent of the Philippine labor force and contribute 30 percent to total domestic sales volume. Among the current problems that Filipino entrepreneurs encounter today are the inadequate access to technology, financing capital, marketing advice and logistical problems in setting up and maintaining their competitiveness in their community. For this reason, the Philippine government has identified the need to foster entrepreneurial spirit to jumpstart our lagging economy. To further emphasize the importance of developing entrepreneurship education, a recent study by the Center for Asia Pacific Studies reveals, â€Å"out of every 100 children enrolled every year, 66 will complete elementary education, 42 will finish high school and only 14 will earn a college degree. † A study by Smart Communications adds, † only 7. 7% of graduates get employed†. This means that out of 100 children that goes to school, only one will end up getting a job. This has led LET’S GO to ask – What happens to the rest? Students who do not graduate or cannot find decent employment in the country usually fall into the trap of joining the unemployed population, or resort to dealing with illegal drugs and crime as a means of living. The scarcity of jobs has further contributed to the exodus of skilled workers abroad, where 2,000 Filipinos leave the country everyday to seek higher income and greater opportunities in career advancement. With this in mind, LET’S GO believes that a viable solution to overcome these challenges today is by promoting Entrepreneurship and giving Filipinos the proper knowledge and tools in start their own businesses. Entrepreneurs are the backbone of our economy. The Philippines is an entrepreneurial country. Small and medium-sized enterprises (SME), including micro-enterprises, account for 99 percent of all business establishments and 60 percent of the exporting firms in the Philippines. According to the Department of Trade and Industry, SME’s currently employ about 55 percent of the Philippine labor force and contribute 30 percent to total domestic sales volume. Among the current problems that Filipino entrepreneurs encounter today are the inadequate access to technology, financing capital, marketing advice and logistical problems in setting up and maintaining their competitiveness in their community. For this reason, the Philippine government has identified the need to foster entrepreneurial spirit to jump start our lagging economy. To further emphasize the importance of developing entrepreneurship education, a recent study by the Center for Asia Pacific Studies reveals, â€Å"out of every 100 children enrolled every year, 66 will complete elementary education, 42 will finish high school and only 14 will earn a college degree. † A study by Smart Communications adds,† only 7. 7% of graduates get employed†. This means that out of 100 children that goes to school, only one will end up getting a ob. What happens to the rest? Students who do not graduate or cannot find decent employment in the country usually fall into the trap of joining the unemployed population, or resort to dealing with illegal drugs and crime as a means of living. The scarcity of jobs has further contributed to the exodus of skilled workers abroad, where 2,000 Filipinos leave the country everyday to seek higher income and greater opportunities in career advancement. I therefore believe that a viable solution to overcome these challenges today is by promoting Entrepreneurship and giving Filipinos the proper knowledge and tools in start their own businesses. What better age to start planting the seeds of entrepreneurial knowledge and skills than among the youth. One is never too Young to be an Entrepreneur The importance of developing an innovative and entrepreneurial culture is a crucial part of the Philippines developed state future. Entrepreneurship directly leads to more business, more job opportunities and better quality of life. Starting and running a business can be a real option for young people, offering an alternative means of achieving both financial and personal independence. There are 24 million youth in the Philippines today and counting. Of these 24 million, 39% or 9. 36M are part of the labor force while 40% or 9. 6M are living below the poverty line. Encouraging young people to consider business ownership as a viable option is becoming increasingly important given the current trend towards globalization. Supporting youth entrepreneurship can benefit both the Filipino Youth and the economy.