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University of San Carlos

Department of Accountancy
School of Business and Economics

HOGSPIRE

_________________________________________________

A Concept Paper
Presented to the
Undergraduate Faculty of Department of Business Administration University of San
Carlos
Cebu City, Philippines

In Partial Fulfillment
Of the requirement for the Course
Introduction to Social Entrepreneurship (SOEN 1)

_________________________________________________

ARLOS, JAYCEE FARAH NOYNAY


CABRERA, ERICK CAESAR JAIN
CAPATOY, ALTHEA PATRICE PACA-ANAS
NUÑEZ, VAN JOSHUA CANDARI
RONGCALES, KISHA MAY CARDUCE

November 2021
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ENDORSEMENT SHEET

This Concept paper entitled “TITLE OF STUDY” prepared and submitted by NAME OF
STUDENTS in partial fulfillment of the requirements for the course on INTRODUCTION
TO SOCIAL ENTREPRENEURSHIP has been accepted for ORAL PRESENTATION.

___________________________________________________

APRIL JOAN BAGANO

Adviser
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STUDENTS’ DECLARATION OF ORIGINALITY

We, Jaycee Farah Arlos, Erick Caesar Cabrera, Althea Patrice Capatoy, Van Joshua
Nuñez, and Kisha May Rongcales, here submit our paper entitled Hogspire and truthfully
declare that the paper is a product of our original research investigation. To our best
knowledge and belief, it contains no material previously published or written by another
person nor does it include contents that are falsified or fabricated. We also sought
permission from the copyright owner to use text, illustrations and/or framework
substantively used in the paper. I understand that should the University of San Carlos,
represented by its Administrators and Faculty, eventually discover that my attestations
herein are not so, I accept the right of the University to impose the appropriate sanctions
including the non-granting of the degree, if so warranted.

Signed (input date) at the University of San Carlos, Cebu City, Philippines.

Student’s Name Year/ Course Signature

Jaycee Farah Arlos BSA 2

Erick Caesar Cabrera BSA 2

Althea Patrice Capatoy BSA 2

Van Joshua Nuñez BSA 2

Kisha May Rongcales BSA 2

Attested by:

Name of Faculty Adviser: _______________________________________________

Signature of Faculty Adviser: _______________________________________________

Date Signed: _______________________________________________


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EXECUTIVE SUMMARY

As regards Social Entrepreneurship 1, the paper was conducted to identify a


deprived, depressed, and underprivileged community and develop an innovative solution
that would help resolve their problem.

The paper identified the hog raisers in Brgy. Mercedes, Catbalogan City, Samar,
as trapped in a never-ending cycle of “isang kahig, isang tuka.” Because of lack of
education, increased population growth, absence of technological advancement, and
principally, their conventional agricultural system, the hog raisers could hardly progress
their livelihood despite dedicating their entire lives to it and hence, constantly dwelling
under the poverty line. Its objective is to help hog raisers in Brgy. Mercedes advance their
livestock industry and their quality of life. By doing so, the paper discussed the community,
the overview, the current trends, and root causes of the problem as well as the institutions
and analysis of its interventions in the pressing societal issue.

The researchers recognized and reinforced three of the UN Sustainable


Development Goals. The 1st SDG - No Poverty. They believe that a livestock-related
enterprise would nurture the hog raisers' expertise that could help in their livelihood and
sustain their basic needs. They also accounted for the 8th SDG - Decent Work and
Economic Growth, to help improve their small-established businesses by introducing
modern-day techniques and technology to secure a stable source of income and promote
economic growth in the community. Lastly, they integrated the 9th SDG - Industry,
Innovation & Infrastructure, since the targeted solution incorporates technological
advancement to help the hog raisers effectively sustain their businesses and attract more
investors. With all that considered, the paper managed to devise a digital and avant-garde
product they called “hogspire.”

Hogspire aims to inspire, support, and sustain the hog raisers as well as its
investors. Fortified with a market linkage and fee-for-service model together with its
crowdfunding system, Hogspire is built with a mission to help improve employment and
economic growth, alleviate poverty, and support hog raising industry in Brgy. Mercedes.
To ensure a well-designed concept plan, the researchers formulated two impact
indicators: (1) to increase the number of in-app registered and verified hog raisers; (2) to
obtain support from the relevant government agencies and other enterprises. As social
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entrepreneurs, the researchers conceived this digitally innovative product to help the hog-
raising industry crisis in Brgy, Mercedes, and to spread awareness, initiate the change,
and become part of the solution.
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ACKNOWLEDGEMENT

In the conduct of this study, a lot of people have offered their time, support, and effort for
its accomplishment. Through this, the researchers would like to extend their deepest and
heartfelt gratitude to those who made this research successful.

First of all, we would like to send our sincerest appreciation to our Social
Entrepreneurship 1 advisor, Ms. April Joan Bagano, for her supervision, guidance, and
lessons that have greatly helped in finishing this study. Her objective evaluation of the
progress of our study encouraged us to do our best and become better researchers and
social entrepreneurs.

Second, the researchers would also like to express their heartfelt gratitude to their
family and friends who never failed to show their love, understanding and their continuous
encouragement throughout the process in making this research a success. The
researchers are truly indebted to their service.

Lastly, the researchers would like to hand out their thankful hearts to our Almighty
Father whose Holiness has granted them wisdom, knowledge, courage, and strength to
overcome all the problems and challenges that stood in their way. The road was rough
but the destination was worth it all. Having a strong support system has pushed the
researchers beyond their limitations, learning a lot more than what they have bargained
for. The researchers are forever grateful.
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TABLE OF CONTENTS

Section Page No.

Title Page i

Endorsement Sheet ii

Student’s Declaration of Originality iii

Executive Summary iv

Acknowledgement vi

Table of Content vii

List of Tables viii

List of Figures ix

1 Introduction

The Rationale of the Study 1

Significance of the Study 2

Profile of the Community 3

2 Need and Opportunity Analysis (NOA)

Overview of Social Problem 7

Current Trends (PESTEL) 9

Root Causes of the Problem 12

Environmental Landscape 13

The Project Statement (HMW Question) 15

3 Social Entrepreneurial Opportunity

The Solution 16

Impact Indicators (Metrics) 19

Concept Map 20

BIBLIOGRAPHY 21

APPENDICES

A Map of the Barangay/ Locality 23

B Curriculum Vitae 24
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LIST OF TABLES

Page No.

Table 1. Total population and growth rate of Brgy. Mercedes 4

Table 2. Household size of Brgy. Mercedes in 2015 4

Table 3. Age distribution of Brgy. Mercedes in 2015 5


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LIST OF FIGURES

Page No.

Figure 1. Barangay Mercedes Map 3

Figure 2. Fishbone Diagram 12

Figure 3. Market Linkage Model 17

Figure 4. Fee-for-service Model 18

Figure 5. Concept Map 20


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CHAPTER 1

INTRODUCTION

The Rationale of the Study

A lengthy line of buildings bordering the shore and skirting the mountain slopes
may be seen driving north along the national road immediately after crossing the Antiao
Bridge. The people of Barangay Mercedes, Catbalogan City, Samar, live in these robust,
and fun-loving homes. The City of Catbalogan, the capital of the province of Samar,
Philippines, is home to 57 barangays, one of which is Barangay Mercedes, the subject of
this study. It is located between Maulong and Downtown Catbalogan, at the slopes that
constitute the barangay's backdrop. Barangay Mercedes is subdivided into eight puroks,
along the Maharlika National Highway and 2 sitios in the mountains.

Mercedes is a large barangay in Catbalogan. With a population of 12,281, it


accounts for 11.54% of the city’s total population. It was originally a thriving community of
farmers who reaped plentiful harvests, raised high-quality livestock, and had a ready
market for their products in the city. But, as a result of the crude and limited knowledge of
agricultural methods, the soil gradually lost its fertility, farming livestock became harder,
and farmers abandoned their farms one by one, taking their families with them until the
land became a shadow of its past wealth.

The barangay's livestock farmers are facing a vicious daily cycle of “isang kahig,
isang tuka,” which means that they are barely getting by. They lack the capital and financial
skills to better their predicament. Most farmers are left behind by so many advances in
agriculture and technology that could help them improve their condition. As they have not
acquired adequate agricultural, commercial, and economic education, they refrain from
exploring and making improvements presented by new studies or by professionals in the
field for fear of being taken advantage of. Despite the amount of potential and prospects
for expansion and development, the livestock sector in the barangay appears to be a lost
business. Hence, this study aims to help animal farmers of Brgy. Mercedes, Catbalogan
City, to advance their livestock industry and boost their quality of life.
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Significance of the Study

The study of socioeconomic and agricultural issues can be a helpful learning tool
for the community in aiding their decision-making. This could create better opportunities
to expand their knowledge and connections with the help of various advancements
technology and the agriculture community has made.

Livestock farmers. The goal of this study is to help the farmers improve their
agricultural competence and business acumen and to help restore their once
abundant livestock industry. This study will help them connect and cooperate with
potential investors, other livestock farmers, and buyers from all across the region,
providing them with greater opportunities and wider horizons.

The Community. The beneficiaries of this study are also the community of
Barangay Mercedes and their public market. The study aims to help the hog raisers
of the community which in the long run should also be able to help their economy.
This shall also serve as an eye-opener to its residents that education and sufficient
proficiency in one’s professional field even in traditional jobs like livestock farming
is an essential factor to alleviating poverty.

Philippine Agricultural Sector. The Philippine Statistics Authority reported on


Monday, August 9 2021 that agricultural production fell 1.5% in the second quarter
of 2021, compared with a growth of 0.5% in the same period in 2020. The African
swine fever continues to stalk pig farmers, which led livestock production to fall
sharply by 19.3%. The agricultural industry in the country, especially the livestock
sector has been experiencing challenges that should be addressed as soon as
possible. This study also aims to aid the livestock industry of the agricultural sector
of the country by supporting local farmers and providing them with resources, both
financially and intellectually, ultimately boosting this sector as one of the most
productive and efficient in the country’s economy.
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The Community

The depressed, deprived, and undeserved (DDU) community that will be focused
in this research are the residents of Barangay Mercedes. Barangay Mercedes, also known
as Burak, is one of the fifty-seven (57) barangays in the city of Catbalogan under the
province of Samar. Mercedes is a big barangay as it has a total area of 1,190,000 square
kilometers. It faces the sea and is located at the foothills that form the barangay's
backdrop. Burak was formerly a thriving community of farmers who reaped good harvests
and had a ready market for their commodities in the City of Catbalogan. However, as a
result of the farmers' poor and limited knowledge of agricultural methods, the soil
eventually lost its richness. Hence, making Barangay Mercedes became a shadow of its
former prosperity as, one by one, the farmers abandoned their fields, taking their families
and livestock with them.

Figure 1. Barangay Mercedes Map

Demographics
Population
Barangay Mercedes is the most populated in the whole Region VIII by having a
population of 12,281, which accounts for 11.54% of Catbalogan's total population. From
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the previous population of 9,716 in 2015, the latest census results in 2020 show a positive
growth rate of 5.05% or an increase of 2,565 persons.

Census date Population Growth rate

1990 May 1 6,927 –

1995 Sep 1 7,718 2.05%

2000 May 1 8,278 1.51%

2007 Aug 1 9,315 1.64%

2010 May 1 9,255 -0.23%

2015 Aug 1 9,716 0.93%

2020 May 1 12,281 5.05%

Table 1. Total population and growth rate of Brgy. Mercedes

Household
Brgy. Mercedes had a household population of 9,716 people in 2015, divided into
2,006 households with an average of 4.84 people per household.

Census date Household Number of Average


population households household size

1990 May 1 6,927 1,303 5.32

1995 Sep 1 7,718 1,469 5.25


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2000 May 1 8,277 1,569 5.28

2007 Aug 1 9,315 1,659 5.61

2010 May 1 9,255 1,813 5.10

2015 Aug 1 9,716 2,006 4.84

Table 2. Household size of Brgy. Mercedes in 2015

Age Distribution
According to the 2015 Census, when the age groups are combined, the majority
age group of this vast population is the economically active or potential members of the
working population, age ranging from 15 to 64, which accounts for the 61% (5,927) of the
total population in Barangay Mercedes. In comparison, those aged 14 and under, including
infants, children, and young teenagers, accounted for 34.69% (3,370) of the population.
Finally, the senior citizens, which includes individuals aged 65 and above, accounts for
4.31% (419) of the overall population.

Age group Population (2015) Age group percentage

Under 1 217 2.23%

1 to 4 914 9.41%

5 to 9 1,080 11.12%

10 to 14 1,159 11.93%

15 to 19 1,122 11.55%
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20 to 24 953 9.81%

25 to 29 722 7.43%

30 to 34 560 5.76%

35 to 39 593 6.10%

40 to 44 551 5.67%

45 to 49 466 4.80%

50 to 54 410 4.22%

55 to 59 307 3.16%

60 to 64 243 2.50%

65 to 69 170 1.75%

70 to 74 118 1.21%

75 to 79 67 0.69%

80 and over 64 0.66%

Total 9,716 100.00%

Table 3. Age distribution of Brgy. Mercedes in 2015


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CHAPTER 2

NEED AND OPPORTUNITY ANALYSIS

Overview of Social Problem

Poverty - it is the largest and most popular, yet perpetually intractable, societal
problem. Unlike other viral plagues, and now where the Covid-19 pandemic has been
continuously prevalent for two years since November 2019, the pervasive chronicle of
poverty continues to be resolved to this day. But what exactly is it, and why does it appear
to be so pretty difficult to solve?

As defined by the United Nations (1998), “fundamentally, poverty is a denial of


choices and opportunities, a violation of human dignity. It means [a] lack of basic capacity
to participate effectively in society. It means not having enough to feed and clothe a
family..., not having the land on which to grow one’s food or a job to earn one’s living, not
having access to credit...It...often implies living in marginal or fragile environments…” It is
an issue that does not go away instantly due to variables, which contribute to the
complexity in resolving it, such as overpopulation and unemployment. Because of the
lower household income and interfering business activity caused by the COVID-19
pandemic, the World Bank (2021) informed that there would be at least 2 million more
Filipinos who will become impoverished in 2020. The status of poverty is reported to be
16.6% of the population in the Philippines, or about 17.6 million people living under the
poverty line, according to the 2018 PSA survey. Farmers, fisherfolks, people living in rural
regions, and children from households with incomes below the official poverty line had the
greatest poverty occurrences among the basic sectors in 2015 and 2018.

The researchers spearheaded this study to generate a comprehensive approach


to address this social problem. They specifically found the hog raisers of Barangay
Mercedes of Catbalogan City, Samar as a candidate of a deprived, depressed, and
underprivileged community. Due to lack of education, high birth rate, traditional agricultural
system, and external factors such as political, economic, socio-cultural, technological,
environmental, and legal attributes, hog raisers are one of the most disadvantaged groups
in the community.
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Despite the Eastern Visayas being referred to as the third poorest region of the
country, Catbalogan City does not record a high percentage of poverty incidence as
opposed to other provinces. However, with the growing population, people inevitably suffer
and are poorer since people outweigh the resources and livelihood in the area.
Overpopulation coupled with the lack of sustainable livelihood and advancement
opportunities meant tough times for the community. The situation has caused a slew of
socioeconomic and agricultural issues that need to be addressed. In Barangay Mercedes,
there is a need for inclusive growth and development to help hog raisers in conducting
their business and strengthen the livestock industries in the area. Fishing and farming are
the typical livelihoods in the community as they are located on the coast. But since most
of them did not finish schooling and were unable to take proper courses specializing in
business, agriculture, and fisheries, they could hardly progress their livelihood despite
working their whole life out of it.

In accordance with the metadata on the 2012 Census of Agriculture and Fisheries
(CAF), which is the National Statistics Office's (NSO) sixth decennial agriculture census,
Samar, where Barangay Mercedes, Catbalogan, was situated, reported 15,831 Farms
Reporting of Swine, the largest among all other livestock listed. For this reason, the
researcher finds a gap to link the interest in livestock of farmers in the barangay to help
them sustain their families with secure livelihood. Moreover, as shared by Dr. Enrico
Garzon Jr., DA Assistant Secretary for Livestock, in the Department of Agriculture (DA)
Mapagmalasakit program, a seminar conducted in Catbalogan last June 24. 2019, Samar
and Leyte have high potentials for livestock production, which is currently untapped or
under-utilized. Hence, the farmers need to be provided with proper training and utilize it
by venturing into the livestock industry and locating potential investors or philanthropic
people. Thereby, poverty will diminish and Barangay Mercedes will once again live in the
era of a flourishing agricultural sector.

The Sustainable Development Goals (SDG) are a call to action for all countries–
poor, rich, and middle-income–to enhance prosperity while safeguarding the environment.
Hence, the study targeted to achieve three SDGs in developing a sensible solution for the
community of Barangay Mercedes. Principally, the central SDG that surrounds the study
of the researchers is SDG 1 - No poverty. It strives to alleviate poverty by improving the
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quality of life of the hog raisers who have been barely scraping by. Poverty is the pandemic
that people have been used to living in ever since. Despite giving countless financial
assistance to every family, as long as they do not earn a permanent job with sufficient pay,
it would hardly get them out from deprivation. A livestock-related enterprise would boost
their expertise with the community's experience of growing animals.

According to Guy Ryder (n.d.), Director-General of the International Labour


Organization, “ending poverty and promoting decent work are two sides of the same coin.
Decent work is both the major instrument to make development happen and also in effect,
the central objective of sustainable development.” Thus, the study also accounts for SDG
8 - Decent Work and Economic Growth. Although not entirely providing a new source
of employment, the researchers' end goal is to help small-established hog raisers improve
their enterprise. If the hog raisers would engage in modern-day techniques and
technology, they will eventually be able to reap the fruits of their investment and secure a
more stable source of income and promote economic growth in the community. The
projected social enterprise also aims at the goal of SDG 9 - Industry, Innovation &
Infrastructure. Particularly, this venture strives to incorporate technological advancement
in creating an innovative solution that would help the farmers sustain their business and
attract more investors. Also, rendering livestock farming and e-business workshops and
seminars will equip and empower farmers to work harder to better their situation, possibly
influencing others to do the same.

Current Trends (PESTEL)


Political Factor. There are many things that are affecting a business especially when it
comes to the political side of things. A lot of things go on over or under the table in politics,
most of which are unbeknownst to the outside world. One of the problems that could
greatly affect our creating a business in Barangay Mercedes is corruption. In helping the
barangay prosper we intend to get rid of that and make sure that everything we’re doing
is to help the barangay and just for oneself.

Mitigating Actions: Being transparent and honest to the community would be a


great step in making sure everyone is being treated fairly. No one is being left out
in our business and everyone is getting the same chances and opportunities to
grow, still it is up to them how they use those chances and opportunities. The
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community will be given access to the transactions that are being made and how
we run our business. To let them know that they can trust us and we want nothing
but to help them and improve their lives.

Economic Factor. It was observed that the economy in Barangay Mercedes is one of the
lowest in Samar. Being in a far place where it is hard for people to reach resulted in less
people wanting to go there and do business. People have a hard time living as it was
known that they live from one paycheck to another and sometimes would sleep hungry.
The prices in this barangay also are rising but their salaries and income are not. That is a
grave problem since soon the community won't’ be able to sustain their daily needs

Mitigating Actions: Creating this business and making Barangay Mercedes the
center of it would put this place at an advantage for their economy to grow. With
their economy growing, eventually their income would catch up to the ever inflation
of the prices and they would be able to afford their daily necessities. With the help
of Hogspire, it will also help unemployed people to get a job because in order to
keep the hogs healthy always, someone has to look after them, also the delivery
of these hogs and more. With Hogspire, these problems would be alleviated.

Social Factor. With Barangay Mercedes being situated far from the city and having less
access to. Getting people to be in Barangay Mercedes won’t be as easy as it would be.
Having less knowledge on how to interact with people through social media and how
applications work is a factor that we need to attend to since a lot of the agricultural workers
are on the older side of the workforce spectrum. The lifestyle of these people would also
be a factor that we would address since there could be a tendency that having a lot of
money affects the way they think in budgeting their day, week, or month.

Mitigating Actions: We provide seminars or webinars, trainings that will help the
people of Barangay Mercedes in having this important knowledge to control the
way they spend their money and giving them the education they need to operate
our application.

Technological Factor. One of the factors that will need to be addressed is the internet
connectivity of the community. Since Hogspire is an online application, we need to make
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sure that the internet connection of the community is strong enough to be able to
communicate with the hog raisers, investors, and the buyers. Having to introduce Hogspire
to the public and getting them to download the application and making them trust Hogspire
would need to have great advertisement and showing them that Hogspire is worth their
trust.

Mitigating Actions: A supervision would be needed in order to stabilize the


problems that would be arising concerning the connectivity of the community. A
customer service person that can help the hog raisers or the buyers to navigate
the application and communicate with one another. The need to show to the public
our goals and also showing them about Hogspire would result in them gaining and
interest and eventually downloading the application and giving Hogspire a chance.

Environmental Factor. As the focus of Hogspire is the community in Barangay Mercedes,


geographically it would be a challenge making transactions and transporting the goods
from there to different parts of the country. Climate Change is also one thing that can affect
our business since climate change can affect the internet connectivity and the health of
the Hogs and the Raisers of the former. As the heat and a sudden drop of the rain would
damage the health of these hogs.

Mitigating Actions: A study conducted on how to improve the transaction of


person to person and specially in the transportation of the goods from one place
to another making sure that the state of the goods from Barangay Mercedes is in
the same state when it reaches its destination. A constant communication among
the hog raisers and Hogspire would take place to ensure that everything is going
as smoothly as can be.

Legal Factor. In the Labor Law of the Philippines it is not allowed to hire an employee for
more than 6 months without making them a regular. Employees will be needed by
Hogspire to keep the application running without flaws, fixing the problems, and to
supervise to make sure that everything is running according to plan. Some companies,
with the knowledge of this law, have been doing a scheme in which they let go of the
employee before they reach 6 months and rehire them again avoiding the regular
employee benefits that are supposed to be given to them.
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Mitigating Actions: We have to be alert and be mindful of the kinds of laws that
concerns our business to further avoid complications that would cause the
business problems. In knowing these laws, we can be conscious of what not to do
and when the employee reaches the required 6 months, it is only right to make
them a regular in Hogspire.

Root Causes of the Problem

Figure 2. Fishbone Diagram

The poverty of the hog raising industry in Brgy. Mercedes, Catbalogan City is
caused by several factors such as the hog raisers’ inadequate agricultural education,
insubstantial business acumen, insufficient capital and technological incompetence. They
have been lacking advancement opportunities in these areas as they continue struggling
with sustaining their livelihood and providing for their families. Most of the factors
apparently stems from the lack of education and the fixed unhealthy mindset that these
hog raisers have developed from living in poverty for decades. They have shown
impassivity towards learning new things and when interest does spark, it only lasts
temporarily since they do not really have anyone to turn to for help, developing learned
helplessness. This creates and feeds a vicious cycle of poverty or worse, escalates their
already impoverished situation.
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Environmental Landscape
Institutions Addressing the Social Issue
Department of Agriculture. The Department of Agriculture is a government agency
tasked with promoting agricultural growth in the Philippines by providing a framework,
public investments, and support services to domestic and export-oriented farming
industries. The Department's primary objective is to cooperatively empower farmers and
fishers and the private sector to boost agricultural productivity and profitability while
ensuring sustainability and resilience. It promotes people's involvement in agricultural
development through sectoral representation in agricultural policy-making bodies,
ensuring that the Department's policies, plans, and programs are established and
implemented to meet their requirements.

The Department of Agriculture offers a variety of initiatives to assist farmers


through financing. Some of the programs include providing loans to young entrepreneurs
and agriculture-fishery graduates to finance new or existing agriculture-based enterprises.
Also, during the enhanced community quarantine, the Department provides working
capital loans to farmers to continue to operate and maintain food availability. These
projects aim to help more farmers access timely, adequate, and fair production and
increase agricultural output viability by ensuring irrigation services, extension, and market
relations.

Cropital. Cropital is a social enterprise that was launched in November 2015. It was built
to break the cycle of oppressive financing to farmers. In the Philippines, small farmers live
in debt by paying high-interest rates because the farmers here are left with no choice but
to accept these kinds of terms in order for them to live on a day-to-day basis. In addition
to that, unfortunately, they are also taken advantage of by these unjust traders who buy
the farmers' produce for a small price and sell it for ten times the price they bought, making
them get all the profits that should have been for the farmers.

Cropital is a social impact crowdfunding platform that connects local farmers with
potential investors and the general public. It is governed by the Securities and Exchange
Commission's norms and regulations, allowing users to examine, select, lend, and monitor
local farmers. Cropital and its agriculture partners curate, instruct, monitor, and provide
crop insurance to farmers participating in the platform. In addition to that, it connects willing
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lenders with competent farmers. Its platform allows investors to fund farmers virtually. On
behalf of the lender, Cropital conducts due diligence, monitoring, and collections.

Agro-Eco Philippines. Agro-Eco Philippines is a farmer-led national network


organization composed of 305 active People's Organizations, 18 Partner Local
Government Units, 28 Partner Non-Governmental Organizations, 14 Partner Universities
and Colleges, and 158 young agriculturists. Through their partnerships with the groups
mentioned above, the organization continues to help the poor and vulnerable farming
communities in Mindanao's 23 provinces and 15 cities and extend capacity-building
programs in line with climate change resiliency in Visayas and Luzon. Agro-Eco made this
possible by educating the inexperienced farmers and establishing marketing hubs for
organic and transformed products through farmer-managed stores.

The mission of Agro-Eco Philippines is to bridge the gap between government and
Non-Governmental Organizations' programs and the difficulties that farmers face. Its
primary objectives are to improve poor farmers' quality of life and resources by focusing
on an integrated and long-term development plan. Moreover, to promote the local
initiatives of the disadvantaged farmers, Agro-Eco utilized strategies such as bottom-up
approach, farmer-scientist partnerships, farmer-led research and development, farmer-to-
farmer mode of transfer, and advocacy for farmers’ rights.

Assessment of Effectiveness of the Implemented Interventions

The local crop farmers in Barangay Mercedes were left so far behind due to
inadequate agricultural education, insubstantial financial skills, insufficient capital, and
technological incompetence, leaving them with no choice but to abandon their fields. Their
situation was almost clear that it was helpless until the social initiatives came. The
Department of Agriculture, Cropital, and Agro-Eco's interventions and solutions to solve
this crisis were successful. The measures done were very effective, as evidenced by the
resurgence of the locals' interest in agriculture. Furthermore, these initiatives gradually
improve the farmers' agricultural education, financial skills, and working capital. However,
these initiatives must also look at the wider scope of agriculture. They must also take into
account the livestock industry in the Barangay as the continuing cycle here seemed
untouched.
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The Project Statement (HMW Question)


We are living in an era of unimaginable change, and our reality is amidst managing
it. In any case, life has remained generally unchanged for a few. Small, local businesses
struggle reacting to change. Micro businesses are frequently dominated by their larger
counterparts. Where do we step in since innovation and technology are at our grip, and
how can we guarantee that change is inclusive for all?

The researchers devised a concept plan which proposes a product that would aid
in the resolution of social issues such as poverty and unequal business opportunity to the
chosen community, which is Brgy. Mercedes, Catbalogan City. With HOGSPIRE, a mobile
app, it aims to empower micro businesses in the agricultural livestock sector by helping
them establish a digital presence. This would gain traction on a wider customer base,
which would help them promote their livestock and ultimately increase in their sales. The
vendors will greatly accept the platform because of its free registration and usage. Their
online presence is used to generate space data for fine meat targeting certain customer
categories. Moreover, the researchers seek to address relevant and timely social issues
by realizing the UN's Sustainable Development Goals 1, 8, and 9, which are to end
poverty, promote inclusive and sustainable economic growth, and boost innovation. This
concept plan intends to meet all of the researchers' objectives through this innovative and
user-friendly product.
16

CHAPTER 3
SOCIAL ENTREPRENEURIAL OPPORTUNITY
The Solution
Due to lack of education, increasing growth population, small-scale and
conventional farming system, and other external factors, hog raisers experience a lack of
income and productive resources, which generally contributes to their poverty. Intending
to help the hog raisers improve their small businesses and bolster the three sustainable
development goals: no poverty, decent work and economic growth, and industry,
innovation & infrastructure, the researchers introduce an avant-garde solution they name
“HOGSPIRE.”

Hogspire is a crowdfunding social platform that connects anyone and everyone to


help finance hog raisers. It aims to inspire, support, and sustain. The term hogspire is
derived from the words, “hogs” and “inspire,” thus, they intend to inspire hog raisers in
improving their hog-raising businesses and inspire potential investors and public markets
to help fund hog raisers with a cause. While upholding the core values of becoming
transparent, easily accessible, and socially responsible, Hogspire’s mission is to help
Brgy. Mercedes, Catbalogan City to improve employment and economic growth, alleviate
poverty, and support hog raisers in sustaining their piggery. The worldwide accessibility
of the Internet enables social networks to transform business enterprises into the next
level. The global survey held in March 2020 revealed that 70% of responding internet
users worldwide were using smartphones more as a direct result of the coronavirus
outbreak, among the countries, China and the Philippines reported the highest percentage
of 86%. Thus, introducing the Hogspire mobile application will not only save costs. It will
also bring convenience to their clients in the community and around the region.

The beneficiaries of Hogspire are the livestock farmers, specifically hog raisers,
and the investors.

Hog raisers
The study identifies them as the DDU community. Hence, the purpose is to help
them improve their agricultural, technical, entrepreneurial skills and to help them increase
the economic growth of their livestock industry. Through assiduous evaluation of finding
hog raisers, Hogspire will assist them in connecting with possible investors and customers
17

to give them long-term prospects and monitor them at least twice a month. They will also
provide seminars when new agricultural studies, advancement opportunities, and
technological progress occurs, which can help the hog raisers conduct their business.

Investors
Hogspire will serve expediently to the investors as they have the luxury to choose
who among all the Hogspire’s hog raisers they would like to collaborate with. Hogspire as
a social crowdfunding social platform will be the gateway to finding potential investors.
The process is to download the app, choose a farm, invest, and confirm investment, to
become official investors. Hogspire will also open a free website for it to be accessible to
other devices. The investors will also receive regular investment updates. In doing so, it
protects the interest and upholds the transparency of the social platform.

The Hogspire operations are stimulated by two operating models: the market
linkage model and fee-for-service.

Market Linkage model


Hogspire is a rising social platform with a mission of linking markets. The main
objective is to promote social collaboration and develop agri-business partnerships
between the clients. In doing so, the social platform links the hog raisers of Brgy. Mercedes
directly to investors and helps these clients to secure contracts and have well-coordinated
partnerships.

Figure 3. Market Linkage Model


18

Fee-for-service model
Hogspire uses its social programs to support hog raisers to improve and enhance
their skills, as well as develop their quality of life. In this case, income generated from the
operations will be utilized in sustaining and growing their hog-raising business. For this
reason, Hogspire will collate the service fee of 5% charged each from its clients: hog
raisers and investors. With a minimum investment of Php.5,000 of investors, the 5% or
Php.250 of the money will go to Hogspire, and the remaining 95% or Php.4,750, will be
attributed to hog raisers funds. For hog raisers, on the other hand, the 5% fee will be
extracted from the gross income specified in their contract. Therefore, when the hogs are
sold, and hog raisers earn profits, the fixed interest along with its capital will be returned
to the investors and Hogspire.

Figure 4. Fee-for-service Model

Furthermore, as its description suggests, Hogspire is a crowdfunding social


platform. Hence, they employed Donation-based crowdfunding to raise money that will
help cater to the enterprise by asking willing people to donate. They also utilized Equity-
based crowdfunding to gather funds from potential investors, and in return, they will get a
3.5% return on their investment. Investors were pre-oriented towards a low return of
investment to avoid high expectancy and because the platform is established to help the
DDU community, not to earn huge profits. To protect their clients and the Hogspire in
general, investors who want to withdraw their investment will be charged with withdrawing
fund service fees as per the investment quota. For instance, the minimum investment of
Php.5,000 will be charged as a Php.250 withdrawing fee. Hogspire will also generate
revenues through the facilitation of the transactions and subscriptions.
19

Impact Indicators (Metrics)


Impact indicators track the success of the program's objectives, which are often
related to some form of short-term change. Impact indicators, in particular, will typically
relate to changes in knowledge, attitudes, and intended behavior.

SDG 1 calls to end poverty in all forms. In order to realize this, we aim to provide
a bigger avenue for small livestock vendors who struggle to make ends meet. We aim to
help them by establishing a digital presence within their business. This would gain traction
on a wider customer base and would ultimately increase in their sales.

By increasing sales in the agricultural sector, SDG 8's call for inclusive and
sustainable economic growth can also be realized. To measure this, we’ll be aiming for a
25% increase in sales for the first year of operations as our impact indicator.

Moreover, SDG 9 targets the integration of small scale industries into value chains
and markets. In order to measure this, we will be looking at two impact indicators. For our
first impact indicator, we aim to increase the number of the in-app registered and verified
hog vendors up to 40% by our second year of operations. It aims to amplify small and
medium enterprises in the agricultural livestock sector in the long run. It also aims to
establish a digital ecosystem as a foundation for digital inclusivity, which opens doors for
potential investors, supporting the hog raisers and animal producers. For our second
impact indicator, we aim to obtain support from the relevant government agencies and
other enterprises contributing to 30% of our revenues, also by the second year of
operations. This is in line with SDG 9's target of supporting domestic technology
development, research, and innovation.
20

Concept Map
Project:
Hogspire - a crowdfunding social platform that connects the hog raisers to their investors
and market.

Figure 5. Concept Map

Problem:
The hog-raising industry in Brgy. Mercedes is a lost business. Baranggay Mercedes is
one of the barangays of Catbalogan City. With a population of 12,281, it accounts for
11.54% of the city's total population. Among the livelihood of its residents is hog raising.
Despite years of experience in the industry, the barangay’s hog raisers are facing a vicious
daily cycle of “isang kahig, isang tuka,” which means that they’re barely getting by. Due to
inadequate agricultural education, insubstantial financial skills, insufficient capital, and
technological incompetence, these hog raisers are left so far behind by the advances in
agriculture and technology. As a result, their lack of resources impede their chances of
bettering their predicament

Solution:
To build a platform that connects people to help these hog raisers - a social platform that
would connect them to their potential investors and to the market. It must be transparent,
easily accessible, and socially responsible to help these hog raisers acquire greater
capital, so that they can try out new hog raising techniques and obtain new technology for
efficient business operations. The solution is to contribute to the establishment of a
community of intelligent, skilled, and modern-day hog-raisers.
21

BIBLIOGRAPHY
Internet Resources:
Aseo, K. (2019, December 23). Eastern Visayas poverty incidence down by 10.3
percentage points in 2018. NEDA Region 8. Retrieved November 6, 2021, from
https://nro8.neda.gov.ph/eastern-visayas-poverty-incidence-down-by-10-9-
percentage-points-in-2018/.

Baldosa, C. (2019, June 24). DA Mapagmalasakit program kicks off in Catbalogan,


Samar. Official Portal of the Department of Agriculture. Retrieved November 6,
2021, from https://www.da.gov.ph/da-mapagmalasakit-program-kicks-off-in-
catbalogan-samar/.

Bersales, L. G. S. (2017, June 30). Philippine Statistics Authority | Republic of the


Philippines. Philippine Statistics Authority. Retrieved November 12, 2021, from
https://psa.gov.ph/poverty-press-releases.

Cordero, T. (2021, June 8). World Bank estimates 2m more Filipinos became poor
in 2020 due to covid-19 pandemic. GMA News Online. Retrieved November 6,
2021, from https://www.gmanetwork.com/news/money/content/790665/world-
bank-estimates-2m-more-filipinos-became-poor-in-2020-due-to-covid-19-
pandemic/story/.

Ezzo, J. (n.d.). Poverty and inequality: Home. LibGuides. Retrieved November 6,


2021, from https://libguides.lib.msu.edu/poverty.

Mapa, C. D. S. (2020, June 3). Philippine Statistics Authority | Republic of the


Philippines. Philippine Statistics Authority. Retrieved November 6, 2021, from
https://psa.gov.ph/poverty-press-releases/nid/162541.

Mapa, C. D. S. (2019, December 6). Philippine Statistics Authority | Republic of


the Philippines. Philippine Statistics Authority. Retrieved November 6, 2021, from
https://psa.gov.ph/poverty-press-releases/nid/144752.
22

Mercedes, Catbalogan. Wikiwand. (n.d.). Retrieved November 12, 2021, from


https://www.wikiwand.com/en/Mercedes,_Catbalogan.

Mercedes, city of catbalogan, province of samar. PhilAtlas. (n.d.). Retrieved


November 12, 2021, from
https://www.philatlas.com/visayas/r08/samar/catbalogan/mercedes.html#sectionL
ocation.

Philippine Statistics Authority (2019, November 28). Metadata. PSA OpenSTAT.


Retrieved November 12, 2021, from
https://openstat.psa.gov.ph/Metadata/2E6CPHB0.

Poverty: UN global compact. Poverty | UN Global Compact. (n.d.). Retrieved


November 6, 2021, from https://www.unglobalcompact.org/what-is-gc/our-
work/social/poverty.

United Nations. (n.d.). United Nations Sustainable Development – 17 goals to


transform our world. United Nations. Retrieved November 6, 2021, from
https://www.un.org/sustainabledevelopment/.

Watson, A. (2020, June 18). Coronavirus impact: Global device usage increase by
country 2020. Statista. Retrieved November 12, 2021, from
https://www.statista.com/statistics/1106607/device-usage-coronavirus-worldwide-
by-country/.
23

APPENDIX A
MAP OF THE LOCALITY
24

APPENDIX B
CURRICULUM VITAE
Profile
Jaycee Farah N. Arlos is a 19 year-old aspiring
businesswoman and social entrepreneur. She is currently
studying Bachelor of Science in Accountancy in University
of San Carlos, Cebu City. She took the NC III Bookkeeping
exam in September 2019 and passed it.

She is an active member and facilitator of the


Youth for Christ, Palompon Leyte Chapter. She is passionate about addressing social
issues such as poverty and unemployment. She hopes to become a successful and
responsible business woman that brings a positive impact to her community.

Personal Information
Age: 19 Date of Birth: February 13, 2002
Address: Brgy. San Isidro, Palompon Leyte Civil Status: Single

Educational Background
Primary Education: Ace Learning Center, Inc., Palompon Leyte (2008- 2014)
Secondary Education: Palompon Institute of Technology, Palompon, Leyte (2014 - 2018)
University of San Jose- Recoletos, Cebu City (2018 - 2020)
Tertiary Education: University of San Carlos, Cebu City (2020 - present)

Involvement in the Community:


She is a facilitator of the Youth for Christ, Palompon Chapter. She was also an active
member of the Commission on Youth.
25

Profile
Cabrera, Erick Caesar J. A 20 year-old male living
in Talisay City, Cebu. I am currently studying for a
Bachelor of Science in Accountancy at the University of
San Carlos. A man of simple taste, just wants to be on the
low, and lead a simple life. When I was in high school I
joined a Rotaract club in my school. I’ve always wanted to
help people in my own little way. In joining this club, I was
able to be of help to a lot of people in need and give them happiness.

My passion is basketball, I like to play it every chance I get. It’s like an escape from
the real world. Though, all I want to do is spread happiness to people and show them how
great life can be. I am motivated by my parents, my parents always wanted to help people
in any way they can and I want to pass that forward to people and down to my kids, to
their kids, and so on. Just showing kindness to people to convey that the world is not as
cruel as it seems.

Personal Information
Age: 20 Date of Birth: May 30, 2001
Address: Deca Homes Phase 1, Dumlog, Talisay Civil Status: Single
City, Cebu

Educational Background
Primary Education: First Baptist Christian School Incorporated (2008- 2014)
Secondary Education: Cebu Institute of Technology-University (2014 - 2020)
Tertiary Education: University of San Carlos, Cebu City (2020 - present)

Relevant student experience:


He is an active member of the Rotaract Cebu chapter.

Involvement in the Community:


He is a member in his community, Deca Baywalk Youth, that cleans the bay walk every
Sunday and does other things too.
26

Profile
Althea Patrice P. Capatoy is a 19 years old
aspiring social entrepreneur from Tacloban City, Leyte.
She is currently studying Bachelor of Science in
Accountancy at the University of San Carlos, Cebu City
and is passionate about helping the Filipino community’s
environmental, social and economic condition. She
believes in financial and technological literacy and is
determined to share her success with society one day.

As she pursues her dreams of a better Filipino community, she enjoys the lessons
and the interactions with people that she meets along the way. She is inspired by the ideas
of the successful and is motivated by the cries of the impoverished. She is resolute in
contributing to the betterment of her fellow countrymen.

Personal Information
Age: 19 Date of Birth: April 16, 2002
Address: Brgy. Abucay, Tacloban City, Leyte Civil Status: Single

Educational Background
Primary Education: Tacloban Angelicum Learning Center (2008- 2014)
Secondary Education: Leyte National High School, Tacloban City (2014 - 2018)
Saint Paul School of Professional Studies, Palo (2018 - 2020)
Tertiary Education: University of San Carlos, Cebu City (2020 - present)

Involvement in the Community:


She is an active member and a facilitator of the Youth for Christ - Basey, Samar Chapter.
27

Profile
Van Joshua Nuñez is a 19 years old aspiring
social entrepreneur from Catbalogan City, Samar. He is
currently a 2nd-Year Bachelor of Science in Accountancy
student at the University of San Carlos. Like John Wick,
he is a man of focus, commitment, and sheer will. He is a
completely driven and compassionate man who is highly
capable of doing work effectively.

He is so passionate about other people in ways he can. However, due to his


visionary mindset, he finds his contribution underwhelming. He believes that if he becomes
wealthy someday, he will significantly impact the whole world, so he always tries to excel
in any field he chooses.

Personal Information
Age: 19 Date of Birth: February 13, 2002
Address: Brgy.Mercedes, Catbalogan City, Samar Civil Status: Single

Educational Background
Primary Education: St. Mary’s College of Catbalogan, Catbalogan City (2008- 2014)
Secondary Education: Samar National School, Catbalogan City (2014 - 2018)
Saint Paul School of Professional Studies (2018-2020)
Tertiary Education: University of San Carlos, Cebu City (2020 - present)

Involvement in the Community:


He is a member of the Knights of the Altar in Catbalogan Parish.
28

Profile
Kisha May C. Rongcales is an aspiring social
entrepreneur. She is currently taking up BS Accountancy
at the University of San Carlos as a surviving 2nd-year
student. She is blessed to be born in a middle-class
family. That is why poverty is something that she has
witnessed ever since. She’s not an active participant in
the local community, but she always feels sad seeing a
meager man. Taking up the course EDM 1 in this institution made her realize the power
she holds to help the underprivileged ones, that it is one of her end goals to be of help to
them one day after she finishes her academic obligation and earns enough. It has been a
privilege to be part of this project about the livestock industry with her team. Presently, her
family has a small Agri Feed Store. Sometimes she partakes in interacting with customers
who are observed as in low and middle-class families. Thus, she encounters customers
with various intentions in hog raising. Some aim to sell the meat afterward or sell the pigs
or piglets for income, and some to serve it as Lechon in their future celebrations.

As an aspiring social entrepreneur, she realizes that, in business, there are still
enterprises whose deeds are philanthropic. They are not centered on profits but rather on
social development, and what motivates a social entrepreneur is knowing that she can
help and inspire at the same time.

Personal Information
Age: 19 Date of Birth: May 29, 2002
Address: Brgy. Imelda, Mondragon, N.Samar Civil Status: Single

Educational Background
Primary Education: Mondragon 1 Central School, Mondragon, N. Samar (2008- 2014)
Secondary Education: St. Anthony Academy, Mondragon, Northern Samar (2014 - 2018)
University of Eastern Philippines, University Town, N. Samar (2018 - 2020)

Tertiary Education: University of San Carlos, Cebu City (2020 - present)

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