The Development of Entrepreneurship in the Philippines

Entrepreneurship is the process of creating, running, develop, manage and organize business which aims to gain lots of profit. It was never been easy; you will face lots of financial, emotional, and mental problems. You have to overcome all of it to become more successful. One of the best examples is the Jollibee food corporation, the rise of “Mang Inasal” in filipino market become threat to Jollibee. They their product offering are different while they both serving food. Filipino tend to love  “Mang Inasal” because of their unli-rice Filipino are really into rice, because of this the management of Jollibee bought “Mang Inasal” so that it won’t be a threat to them, so last 2010 the “Mang Inasal” became part of Jollibee food corporation.

Entrepreneur is the creator of the business, they are the one who do the business plan. They have the authority to overview all the business process and sees the opportunity all the time. Big decisions are coming from them, they should be a risk taker because there is guarantee that their business will bloom. One of the best progressive businesses here in the Philippines is SM supermarket. And the owner of this business is Henry Sy, he started his business from a shoe shop and little by little he establishes the SM. We can see how successful the SM Supermarket today. It has lots of branches nationwide; it has 47 SM Department stores, 38 SM Supermarkets, and 86 Savemore markets. These lovely malls are nothing without the entrepreneur.

So lets discuss the development of Entrepreneurship in the Philippines.

The development of Entrepreneurship in the Philippines is very slow. There lots of entrepreneur here in the Philippines, most of them are small businesses. Poverty plays a major role for this, it hinder us to have lots of capital. Small business starts their businesses with small capital, wishing to make it larger as time goes by. Lack of research and development can slow the pace of the improvement of entrepreneurship here in our country, and we are left behind to advancement of technology. These challenges will proves that the concept of entrepreneurship for small business man is just to earn profit, not to improve or innovate because of lack of marketing ideas and mostly lack on financial. We tend to attract foreign financial investors on helping us with capital, and then start their business on our country. Foreign entrepreneur will soon reign the Philippine local market. And only small business is left for Filipino people.   

How Innovation plays an important role to the success of an Entrepreneur?

Many businesses are operating now a day, in order to measure growth you must satisfy the needs of your market. Customers needs and demand are changing, so as the business itself. Change happens all the time, who can’t cope up to change will be left behind. Customers are the dictator in business world; you must produce what they want. if you can’t you will be eaten by your competitor. Best example is Nokia, they didn’t adapt to android instead they want to use their own operating system. Look where they are now, before them we’re top notch in producing Cell-phones but now they are left behind in competition. Businesses should not be stagnant, it should grow from time to time, always remember that you are not the only one business in the world. The most advance business will overtake you all. If you don’t go for innovation, you will be eaten by your competitors like what happen in Nokia on early 20’s

The twelve (12) entrepreneurial contributions to economic development.

• Utilization of local resources - The resources that is not that useful can be more useful than we expect. There are baskets made from water lily, bags made from rubber tires, and bicycle made from bamboo. This company proves that the resources considered as waste can transform into new valuable product. this also can improve the value of waste materials, and can treat as precious as raw materials.

• Promotion of technology – enterprise is promoting the advancement of technology naturally. Just like the machine use in production of products. The energy saving appliances the use of solar panel in some malls. This can influence the customer on purchasing one.

• Capital Formation – Businesses are the one who contributes lots of income to our country, they provide job to the people that can able to pay tax. And these taxes are the generating income of our country. Imagine the tax you are paying for your entire company plus the taxes paid by your people equals a income for our country. With this the company contributes a lot in providing capital to our country.

• Creation of employment Opportunities – Businesses can’t run on its own, it needs manpower. This manpower can generate a job for certain people that can help them to generate income. That gives them money to spend on their own, for their everyday life. You’re not only generating national income, you’re contributing to the welfare of your people.

• Promotion of Entrepreneurial culture – being a successful entrepreneur, can influence youngster to build one. Just like me, because I love Jollibee and we can agree that they are successful today. I somehow think that may be I can start my own business and possibly it may take off. That’s how powerful an image can be. You think you’re just running your business and gaining profit, but you put an image to the mind of your customer and serves as idols for them in the future.

• Export promotion – Some entrepreneurs are getting the attention of foreign markets so that you can export some of your product, through this you can create relationship through foreign businesses and can create a good relationship in foreign businesses, your connection will became broad.

• Favorable balance of payment – the improvement of small businesses are rising, this can balance the amount we’re paying for import products. It is the manifestation of the improvement of the small businesses itself. The amount of imports is equal to the income in exports. It is a little by little process; maybe soon the exports will overtake the amount we import. It shows how develop our economy is. 

• Improved marketing of locally Produced Products – the improvement in the small business sectors results to improvement into internal and external market, which means competition, is abundant and the product that is being produce is with high quality standards. This means that many local products can be equal to the quality produce by international business. It can results to more local sales and local market can attract more customers.

• Improved infrastructure – creating of business can creates lots of buildings. Successful businesses in specific area can guarantee change like the mode of transformation, and the road itself, and the internet connection. Because the income generated from the income tax of the company should be manifested in the improvement of the area. Imagine if all the cities in the Philippines are global city, there would be no clogging of people here in Manila.

• Promotion of talent and hobbies – Businesses exploit the talent of new generation. Like the brand model of this brand, ambassador of this brand. Especially today company tends to go to influencers rather than most of celebrities, because they are the one who’s expose on the social media, knowing that many people are into social media rather than T.V. businesses are creating opportunities for the young people.

• Improved growth in Gross domestic products – Local business can generate income and today there are lots of small businesses here in the Philippines. They can contribute a little for the income tax but, if the sum of all the small business plus large corporation is computed the GDP of our country will be considered high.

  • Self-reliance – Entrepreneurs enable to help the citizen to survive from their everyday needs without borrowing large money. For example a Master Siomai franchise, you just need a little amount of money for that you can have your small little business. You can start with a cart later on this cart can turn into large place where you can sell bunch of product related to Siomai.

  If I am a Entrepreneur, I will use the principles and concepts of Marketing Management to my entrepreneurial organization

  Entrepreneurship is all about starting, running, and establishing a strong business that can out stand competitors. Marketing is all about creating strategies in order to become competitive and control sales and production of the company. Marketing management are the ones who creates decision base on what are the needs and wants of the customer, by establishing your own business you can use the concept of marketing to maintain your competitive advantage to outrun competitions. For example you want to establish a business a shoe business, you can refer to the 4 P’s of marketing. You must find a good location, where you can place your business and has a high demand for shoe industry. You can place your business in a mall if it is a original one, and in Cartimar if it is considered as Class A. you must also find a right price, there are pricing strategies use, you can use price skimming or cost-based pricing, it depends on you. If you have knowledge about this you can have a good start. And you must have promotional strategies that can control your inventories and boost your sales.