The Filipino Entrepreneur | Vidar Halvorsen

DLSU
MANPR.
THE FILIPINO ENTREPRENEUR
The Article “The Entrepreneur as a Change Agent” gives a picture of what makes a good
entrepreneur. Not in terms of successfulness in profits, but in terms of seeing opportunities where
none has, and making opportunities where they are needed.

We are introduced to Illac Diaz, an entrepreneur from AIM, who encompasses the very idea of
entrepreneurship. AIM had encouraged their students to go for so called “Serendipity walks “ (or
Walkabouts as Australian calls it); walking the real world for inspiration. And Diaz did get it. Out of
the loitering of seafarers waiting to have papers processed in Ermita, Diaz had a “Eureka Moment”,
and came up with the idea of a transient-dormitory especially targeted for this segment. Less than a
year after this “eureka Moment” Diaz opened the PIER ONE Dormitory , where his entrepreneurial
mind expanded from just offering sleeping facilities for these seafarers, to a concept where the
Dormitory invited their clients into their organization, working whilst waiting for their papers to be
processed, or in other ways helping and networking for the seafarers. The Dormitory has later
expanded to water bottling business, internet store, a network hub for placement agents, health
station, a barbershop, a canteen and recreational facilities.

In this way, Diaz has lived the very concept of an entrepreneur, Involving people in his visions,
building with people, for people, for sustainability and for profits. As much as profits are a necessity
for continuation of the concept it is however not the most important aspect of the business in Diaz’
eyes. As a Social Entrepreneur, it is what is given BACK that makes the foundation of his success. He
state:” Somehow by giving, you get so much more”.

But Diaz’ entrepreneurial ideas hasn’t stopped there. In the pursuit of never settling, never
stagnating, Diaz has moved on to other areas of entrepreneurship, still being true to his human ways.
He has developed low-cost dome-shaped shelters that have proven to be storm proof, waterproof
and fireproof- all at a fraction of the cost a normal townhouse would could. At a cost of 70.000 peso,
and with the quality and security this concept offer, several organizations has already sought the help
of Diaz, using this concept to erect habitats for the poor and the marginalized.

By Caring, this social entrepreneur has become acknowledged in international as well as national and
local organizations. Again; an effect of working for people, with people, in the social entrepreneur
way. He has also contributed to the development of a peanut-Sheller, a machine that will greatly
help the poor peanut farmers significantly increase their productivity, as peanut shelling is mostly
done by hand. He is working with HOLCIM and TESTDA to teach farming communities how to put this
machine into use and by that improve their lives also.
So what does this teach us about the Filipino entrepreneur? To get a first hand view on it, I
interviewed Richard Ferrer, a DLSU MBA graduate whom founded a tea-shop franchise called
ZENTEA.

Ferrer was an IT engineer who took up MBA at DLSU. Being of an entrepreneurial min he wanted to
have a firmer grasp on the workings of business. During his studies he became interested in the
workings of smaller drinks stations, wondering what made them attractive to consumers and where
the real business laid. Over time the idea of his own little business grew, and with learning from his
MBA a business plan formed, with experience from his IT background he wrote a POS program which
also functioned as a control unit and statistics data collector.

Ferrer opened his first ZENTEA shop in 2006, and it slowly became something of a success. It offered
iced teas in a contemporary style with a variety of flavors, all based on Chinese black tea. From Apple
Green tea, to Nai Cha milk tea, the varieties were many. The clientele took to the flavors, the concept
and the shop, and before long, people started to notice lines of customer at his shop. As a result, it
didn’t take long before questions of franchising started coming.
This however was something Ferrer had learned could be both an opportunity and a curse. He had
plans of expanding himself, and knew well the risks of growing too fast. He therefore made a choice
of developing a sound basis for franchise expansion, and started the growth by first expanding with a
single unit himself, learning the ropes of practical expansion. After that, a few more franchises were
taken in, and the challenges of centralized logistics took form, teaching Ferrer as he went along.
Within a few years, what had started as a small tea shop of exciting teas, cold and hot; had grown to
4 self-owned locations and 17 franchises, and some 20 product offerings in both hot and iced tea.
An entrepreneurial challenge if ever there was one.
Today, Ferrer scrutinizes questions of new franchises, and maintains a strong grip on control
functions for the franchises. Ferrer believe in people making the business. He is therefore careful to
choose his employees, and those working in the franchises. What background they come from is of
lesser importance; their willingness to learn, and their willingness to stay true to ZENTEA’s values. IF
a franchise potential shows lack in any of the areas which is important to Ferrer’s concept – Franchise
will be denied.

So what similarities does Ferrer the entrepreneur have with Diaz the entrepreneur?
Both of these individuals were dreamers. They had this dream of creating, dream of growing
“something” and dream of making something out of themselves. What differ the “common” dreamer
and the Entrepreneur, I believe, is the acceptance to risk. As a graduate of Entrepreneurship, and an
MBA graduate, both of these individuals had equipped themselves with tools to understand the
difference of risk and foolishness. They also both had visions, plans and foresight to make decisions
which enabled them to start, secure and grow their businesses. Unquestionably, there have been
instances where decisions have been made, decisions where those of non-entrepreneurial mind, risk-
avoiding and of lesser visions would have faltered. Both Diaz and Ferrer have risen above challenges,
managed well and grown through planned, controlled strategic moves.

I believe the true Filipino is a product both of need and opportunity; the need for self achievement,
and the eye for the right opportunity at the right time. This is certainly the case with Ferrer. A solid
background to equipped him with the tools for success, but it was his eye for opportunity, his
willingness for risk, and his need to create his own future that ”made” him.