ENTREPRENEURIAL BEHAVIOR

COLLEGE OF BUSINESS, ACCOUNTANCY, & ENTREPRENEURSHIP

UNIVERSIDAD DE MANILA

Ms. SHIRLY D. CUSAY-YU, CPHR, CLDP

MBA, LLb, BBM, AB Psychology

School year 2021-2022, First Semester

PART V - ENTREPRENEURSHIP IN THE PHILIPPINES

1. Introduction to Entrepreneurship Pinoy Setting
2. Filipino Risks and Rewards and Values.
3. Philippine Business Environment and MSME.
4. MSME and Human Development

ENTREPRENEURSHIP IN PHILIPPINE SETTING

Barter System - started in the dawn of
civilization, trades ones craft for gold coins.

known as  an old method of exchange and

has been practiced for centuries and long
before money was introduced.

People started exchanging services and

goods for other services and goods in
return.
ENTREPRENEURSHIP IN PHILIPPINE SETTING
Banking System - Middle Ages, bankers
would lend kings and clergyman funds
for their projects.

Primitive banking transactions existed

before, but until the economic revival of
the 13th century they were limited in
scope and occurrence.

By the dawn of the 12th and 13th centuries,

bankers were grouped into three distinct
categories: pawnbrokers, moneychangers,
and merchant bankers.
ENTREPRENEURSHIP IN PHILIPPINE SETTING
Manila-Acapulco Trade or
Galleon Trade
colony of Spain, ground for
globalization by bringing
about economic and cultural
exchange, and integration of
financial markets between
Asia and the Americas.

ENTREPRENEURSHIP IN PHILIPPINE SETTING

Spanish Era

San Miguel Bank of Philippine

Meralco
Brewery Islands
ENTREPRENEURSHIP IN PHILIPPINE SETTING
American Occupation
Philippine Long Distance Squires
Telephone
Bingham & Co.

Coca Cola
Globe
Telecom

ENTREPRENEURSHIP IN PHILIPPINE SETTING

Japanese Occupation

theatre and music

restaurateurs club owners
ENTREPRENEURSHIP IN PHILIPPINE SETTING
After World War II and during Martial Law
ENTREPRENEURSHIP IN PHILIPPINE SETTING
People Power

GoNegosyo IP E-Games Level-Up

TOP 10 SUCCESSFUL ENTREPRENEURS
HENRY TAN CHI SIENG SR.
TOP 10 SUCCESSFUL ENTREPRENEURS
TONY TAN CAKTIONG
TOP 10 SUCCESSFUL ENTREPRENEURS
JOHN GOKONGWEI JR.
TOP 10 SUCCESSFUL ENTREPRENEURS
Socorro C. Ramos
TOP 10 SUCCESSFUL ENTREPRENEURS
Cecilio Kwok Pedro
TOP 10 SUCCESSFUL ENTREPRENEURS
Mariano Que
TOP 10 SUCCESSFUL ENTREPRENEURS
Alfredo M. Yao
TOP 10 SUCCESSFUL ENTREPRENEURS
Corazon D. Ong
TOP 10 SUCCESSFUL ENTREPRENEURS
Gregorio G. Sanchez Jr.
TOP 10 SUCCESSFUL ENTREPRENEURS
Diosdado Banatao
FILIPINO VALUES FAVORABLE TO ENTREPRENEUR
PAKIKIPAGKAPWA - its about how we treat and relate to others.
HIYA lose of face PAGMAMALASAKIT concern
PAKIKISAMA togetherness or companionship BAYANIHAN cooperative spirit
PAKIKIBAGAY adjusting or adapting to other people
UTANG NA LOOB sense of gratitude

PAKIKIPAGKAPWA-TAO - provide things and services that are

valuable to others.
If we will cultivate this value we will run our business properly by not cheating our customers,
maltreating our workers, compete properly with his competitors and pays his taxes properly.
FILIPINO VALUES FAVORABLE TO ENTREPRENEUR
LAKAS NG LOOB - risk taking

strong-heartedness, already did his part & putting it to God’s will

BAHALA NA
(“Nasa tao ang gawa, nasa Diyos ang awa”)

GAYA-GAYA copy cat,

ability to learn and adapt new ways of doing things

SEGURISTAS sureness

The SEGURISTAS in us, makes us GAYA-GAYA, a tried and tested business because
we have confidence (LAKAS NG LOOB) that it will succeed.

FILIPINO VALUES FAVORABLE TO ENTREPRENEUR

KATAPATAN - loyalty, promotes ethical
business practices
MALASAKIT concern MAGALANG respectful

DAMAYAN mutual help MALASAKIT or PAGTULONG helpfulness

SAMAHAN camaraderie PAGDAMAY sympathy

MAAWAIN compassionate PAGKAKAISA solidarity

MADALING MAKAGAANAN NG LOOB easy to be relieved, easy to be liked

PAGPUNO SA KAKULANGAN understanding one’s fault or short coming

FILIPINO VALUES FAVORABLE TO ENTREPRENEUR
VALUES THAT PROMOTE SOCIAL MOBILITY

Social Mobility refers to the degree of difficulty or easiness in a

society or group of people where it allows a member to go up or
climb one social level to another.

SIPAG diligence PAGTITIMPI self-control

KATIPIRAN frugality PAGKAMATIISIN patience with endurance

FILIPINO VALUES THAT DETER ENTREPRENEURSHIP
Traditional child rearing practices that hinder the development of an
independent entrepreneurial spirit;

Belief in the existence of all powerful forces that control a person’s

destiny may destroy entrepreneurial initiatives;

Amor Proprio makes Filipino refuse to take full responsibility for his
action when he fails;
FILIPINO VALUES THAT DETER ENTREPRENEURSHIP
BAHALA NA attitude if not tempered with intelligent judgement and
planning, may lead to imprudent decision making;

Our family and relatives may be a strong supportive group, but they
can also do harm to the business enterprise;

Colonial mentality that impedes the development of a self-reliant

entrepreneurship.
REPUBLIC ACT NO. 6977 & ITS AMENDMENT
Magna Carta for Micro, Small and Medium
Enterprises
“promote, support, strengthen and encourage the
growth and development of MSMEs in all
productive sectors of the economy particularly
rural/agri-based enterprises.”

mandated banks to allot a certain portion (10%) of

their loan portfolio to MSMEs.
RELATED LAWS
REPUBLIC ACT NO. 9501
“An Act to Promote Entrepreneurship by Strengthening Development and
Assistance Programs to MICRO, SMALL AND MEDIUM SCALE ENTERPRISES,
amending for the purpose Republic Act No. 6977, as amended, otherwise known
as the “MAGNA CARTA FOR SMALL ENTERPRISES” and for other purposes.”

Republic Act No. 10644: Go Negosyo Act

“An Act Promoting Job Generation and Inclusive Growth Through the
Development of Micro, Small and Medium Enterprises”, otherwise known
as the “Go Negosyo Act”.  It was enacted into law on 15 July 2014 by His
Excellency President Benigno Simeon C. Aquino III.

CLASSIFICATION OF BUSINESS
NO. OF
CATEGORY TOTAL ASSETS
EMPLOYEES
MICRO ENTERPRISE Php 3,000,000 or less 1-9

Php 3,000,001 -
SMALL ENTERPRISE 10-99
15,000,000
Php 15,000,000 -
MEDIUM ENTERPRISE 100-199
100,000,000

LARGE >Php100M >100

RATIONALE IN PROMOTING MSME
• relative ease in setting up
• employment generation

• flexibility and lower capital cost per job created

• provision of niche services that may not be profitable for large business

• distribution of income
• utilization of local resources

• export earning
• “seedbed” for entrepreneurs
2020 MSME STATISTICS
The 2020 List of Establishments of the
Philippine Statistics Authority (PSA)

957,620 business enterprises

operating in the country

952,969 (99.51%) - MSMEs

4,651 (0.49%) - large enterprises

850,127 (88.77%) - micro

98,126 (10.25%) - small
4,716 (0.49%) - medium

GEOGRAPHICAL SPREAD OF MSME

These top five (5) locations accounted for about
6 0. 3 3 % o f t h e t o t a l n u m b e r o f M S M E
establishments in the country. Regional
concentration of MSMEs is largely associated
with economic activity and population size. 

National Capital Region (NCR) - 201,123 (21.10%)

Region 4-A (CALABARZON) - 139,363 (14.62%)
Region 3 (Central Luzon) - 111,262 (11.68%)
Region 7 (Central Visayas) with 65,682 (6.89%)
Region 6 (Western Visayas) with 57,469 (6.03%).
ADDITIONAL STATISTICS
6.2 - Filipino adult are business owners

18.4 are engaged in early-stage entrepreneurship

46% - positive view of the entrepreneurial opportunities in Phil
66 - believe the entrepreneurial capabilities needed to start a business
52% - Filipino entrepreneurs are in the age of 18-44 years
83% - retail trade, hotels, and restaurants
58% - women involved in entrepreneurship at early stage
55% - women involved in established business
CHALLENGES AND ISSUES
Competition in export markets and influx of mass produced products at
cheaper prices

Existence of small domestic markets and limited local market

need for imported parts and materials and limited industrial linkages

lack of basic management techniques

barriers to start-up business, lack of support in the areas of fund raising,

research and development
CHALLENGES AND ISSUES
limited economic activities at the local level

lack of financial support and working capital

information dissemination

poor provision of training aimed at expanding and sustaining businesses

INITIATIVES SUPPORTING ENTREPRENEURSHIP
1) GOVERNMENT INITIATIVES

DTI - Bureau of Small and Medium Enterprise Development - programs

that assist SME in developing their entrepreneurial capabilities.
CHED - formal degree program at both bachelor and graduate levels
(BS, MS and Phd) aiming to provide formal training to aspiring
entrepreneurs.
DOST - addressed the technological need of SMEs through SETUP
(Small Enterprise Technology Upgrading Program.
INITIATIVES SUPPORTING ENTREPRENEURSHIP
2) Financial Institutions - required to set aside a certain
percentage of their loan portfolio to the capital requirements
of small and medium enterprise; and

3) Partnerships between government, academia, and

industry - to develop technology-based entrepreneurship
through the business incubator and technology parks
programs.
MSME AND HUMAN CAPITAL DEVELOPMENT
HUMAN CAPITAL
DEVELOPMENT
expand and strengthen the
human resources capacity of
MSMEs through mentoring, group
training and online training.
CORE VALUES OF HUMAN ECONOMIC DEVELOPMENT
1. LIFE SUSTENANCE
The ability of the economy to provide the basic needs. The economy must be able to
provide to as many people possible the means of overcoming the helplessness and misery
from lack of food, shelter, health and protection;

2. SELF-ESTEEM
The extent of one can become a person. This is the sense of one’s self-worth and self
respect of not being used as a toll by others for their own selfish ends.
3. FREEDOM FROM SERVITUDE
The extent that a person is free in making choices - in liberating oneself from alienating
material and conditions of life from social-servitude to nature, ignorance, dogmatic beliefs,
and other people.

THANK YOU.