Entrepreneurship

IN THE

PHILIPPINES
ENT 101
 How
Entrepreneurship
is defined in the
Philippines
 ENTREPRENEURSHIP IN
THE PHILIPPINES
Being an entrepreneur requires having a risk-taking
personality, need for achievement, internal focus of control,
tolerance for ambiguity and having a type A behavior or
striving to achieve more in less time and general
competitiveness (Gilles and Mondejar, 2008).
 ENTREPRENEURSHIP IN
THE PHILIPPINES
In the Philippines, 6.2% of the adult population are
established business owners and 18.4% are engaged in early-
stage entrepreneurship (TEA). The country’s TEA rate is far
higher than the average for Asia and Oceania (13%) .
 ENTREPRENEURSHIP IN
THE PHILIPPINES
Nearly half (46%) of all Filipinos have a very positive view of
the entrepreneurial opportunities in their country;
furthermore, 66% believe they have the entrepreneurial
capabilities needed to start a business. Although perceived
entrepreneurial capabilities of Filipinos are high, 89.5% did
not receive formal training at school. Filipino entrepreneurs
see owning a business as a path to being independent as
well as the opportunity to earn a living and improve one’s
economic lot.
 ENTREPRENEURSHIP IN
THE PHILIPPINES
Entrepreneurship is seen by Philippine society as a very good
means to improve one’s economic and social standing. This
social and cultural orientation serves as one of the major
drivers promoting entrepreneurship. The large domestic
market with high consumer spending as well as good
education and training also drives the population to try
entrepreneurial activities.
 ENTREPRENEURSHIP IN
THE PHILIPPINES
The Philippine Development Plan (PDP) further reinforces the
thrust on entrepreneurship through trade and investment to
achieve the government’s goal of economic development and
job creation. Based on the plan, measures for macro-
economic stability, employment, trade and investment,
agribusiness, power-sector reforms, infrastructure,
competition, science and technology, and anti-corruption are
being pursued to strengthen Philippines’s competitiveness
and contribute to job creation.
 ENTREPRENEURSHIP IN THE
PHILIPPINES
ENABLERS AND CONSTRAINTS
Entrepreneurship is seen by Philippine society as a very good
means to improve one’s economic and social standing. This
social and cultural orientation serves as one of the major
drivers promoting entrepreneurship. The large domestic
market with high consumer spending as well as good
education and training also drives the population to try
entrepreneurial activities. There are also several government
programs that support entrepreneurship.
 ENTREPRENEURSHIP IN THE
PHILIPPINES
ENABLERS AND CONSTRAINTS
On the other hand, there are several constraints to the development
of entrepreneurship in the country:

A lack of financial support and working capital, hindering

business expansion;
Poor information dissemination – the inconsistent
implementation of government policies and programs that
support entrepreneurship;
Poor provision of training aimed at expanding and sustaining
businesses.
 ENTREPRENEURSHIP IN THE
PHILIPPINES
INITIATIVES SUPPORTING ENTREPRENEURSHIP

Entrepreneurship is encouraged in the Philippines through the

activities of the different government departments, such as the
Department of Trade and Industry, the Department of Science and
Technology, Bangko Sentral ng Pilipinas and the Commission on
Higher Education.
 ENTREPRENEURSHIP IN THE
PHILIPPINES
INITIATIVES SUPPORTING ENTREPRENEURSHIP
Entrepreneurship is offered as a formal degree program at both
bachelor and graduate levels (BS, MS, and PhD) aiming to provide
formal training to aspiring entrepreneurs. Financial institutions like
banks are required to set aside a certain percentage of their loan
portfolio to the capital requirements of small and medium sized
businesses.

The Department of Trade and Industry, through the Bureau of Small

and Medium Enterprise Development, have programs that assist
SMEs in developing their entrepreneurial capabilities.
 ENTREPRENEURSHIP IN THE
PHILIPPINES
INITIATIVES SUPPORTING ENTREPRENEURSHIP
The technological needs of SMEs are also being addressed by the
Department of Science and Technology thanks to a program
known as the Small Enterprise Technology Upgrading Program
(SETUP). Partnerships between government, academia and
industry are implemented in developing technology-based
entrepreneurship through the business incubator and technology
parks programs.
 ENTREPRENEURSHIP IN THE
PHILIPPINES
TRENDS OVER TIME
Among Filipino youth, a new attitude is forming; they are
progressively viewing entrepreneurship as a viable alternative to
employment. The supporting framework for this is slowly
improving, with the offering of formal academic degrees on
entrepreneurship, the encouragement of industry, new graduate
partnerships on start-ups, and enhanced interest from civil
societies/ NGOs in supporting entrepreneurial development and
activities.
 Enterprise
Development and
Competitiveness
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
Enterprise development in the context of competitiveness not
only entails the ability to produce products that can be accepted
globally but also the level of support given to enterprises to help
them produce, innovate, and gain market access.

It encompasses the process of improving a company’s image

and increasing the capital by bringing more value to the
customers. The main intention of the enterprise development
process is leading to positive societal change through
stimulating economic activity.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
GOVERNMENT ASSISTANCE PROGRAMS FOR MSME’S
Philippine MSMEs play an important role in the economic
development of our country. According to the Department of
Trade and Industry, 99.58% of all businesses in the country are
MSMEs.

Indeed, small businesses are the lifeblood of our economy, and

the Philippine government recognizes this fact. This is why the
government has come up with various programs to help small
business owners and entrepreneurs grow.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
GOVERNMENT ASSISTANCE PROGRAMS FOR MSME’S
1.KAPATID MENTOR ME

Once in a while, entrepreneurs need advice on how to operate

their businesses ethically and a network to support them in
doing so.
This is why the Department of Trade and Industry developed a
program that aims to support SMEs by equipping business
owners with the skills they need to operate a business.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
GOVERNMENT ASSISTANCE PROGRAMS FOR MSME’S
1.KAPATID MENTOR ME

The KAPATID MENTOR ME program is a 12-week program that

consists of 10 modules, including:
Product development
Marketing
Operations Management
Accounting
Taxation
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
GOVERNMENT ASSISTANCE PROGRAMS FOR MSME’S
1.KAPATID MENTOR ME

Finance and obligations

Contracts

A presentation of the mentee’s improved business plans is

necessary for graduation after the sessions are over.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
GOVERNMENT ASSISTANCE PROGRAMS FOR MSME’S
2. Pondo sa Pagbabago at Pag-Asenso (P3)

One big problem for first-time entrepreneurs is how to apply

for a business loan. However, this is handled through SB
Corp’s Pondo sa Pagbabago at Pag-Asenso (P3) program.
This government assistance program for small business in the
Philippines aims to streamline the loan application process
and offer MSMEs an alternate credit line.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
GOVERNMENT ASSISTANCE PROGRAMS FOR MSME’S
2. Pondo sa Pagbabago at Pag-Asenso (P3)

Under P3, MSME owners in the Philippines can borrow money

for as little as PHP 5,000 up to PHP 200,000 at a low-interest
rate of 2.5% per month, which is adequate to launch a small
business.
You’re eligible for the P3 program if you’re self-employed or a
microentrepreneur with at least one year of business
operations.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
GOVERNMENT ASSISTANCE PROGRAMS FOR MSME’S
3. Small and Medium Enterprise Roving Academy

DTI conducts free seminars for budding entrepreneurs through

the SME Roving Academy in various towns across the nation.
This is an effort to expand the number of local enterprises that
can compete in the global market. In the SME Roving Academy,
business owners who are enrolled in the program are partnered
with a counselor and an expert who can provide advice on the
training and business development services they might need.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
GOVERNMENT ASSISTANCE PROGRAMS FOR MSME’S
4. Go Lokal!

The DTI launched this government assistance program for

small business in the Philippines as a platform for MSMEs to
gain access to the market.
The accessibility that Go Lokal! can give is excellent for
MSMEs with distinctive products seeking a larger market,
particularly those manufactured from regional and local
traditions.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
GOVERNMENT ASSISTANCE PROGRAMS FOR MSME’S
4. Go Lokal!

Once a business owner is enrolled in the program, they can

now have a chance to undergo free intensive product
development training, access Go Lokal!’s marketing platforms,
and participate in Go Lokal!’s year-long promotional events.
They can also be a regular supplier to Go Lokal! shops and
retail partners, such as Ayala Malls, Rustan’s, Duty-Free,
Robinsons Malls, and many more.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
GOVERNMENT ASSISTANCE PROGRAMS FOR MSME’S
4. Go Lokal!
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
GOVERNMENT ASSISTANCE PROGRAMS FOR MSME’S
4. Go Lokal!
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
GOVERNMENT ASSISTANCE PROGRAMS FOR MSME’S
5. Barangay Micro Business Enterprise

The Barangay Micro Business Enterprise (BMBE) Law, which

was signed into law in 2002, promotes the creation of
microbusinesses, especially in remote and suburban areas,
through incentives and benefits.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
GOVERNMENT ASSISTANCE PROGRAMS FOR MSME’S
5. Barangay Micro Business Enterprise

Some of the incentives and benefits include:

Assistance programs and training
Social security and healthcare benefits
Income tax exemption
Exemption from the minimum wage law
Priority for a special credit window
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
GOVERNMENT ASSISTANCE PROGRAMS FOR MSME’S
5. Barangay Micro Business Enterprise

A BMBE is defined as any business enterprise with total assets

of less than PHP 3 million that produces, processes, or
manufactures goods, including agricultural products, as well
as trades and services.

The BMBE Certificate of Authority will be valid for two (2)

years starting on the date of issuance.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
DEPARTMENT OF TRADE AND INDUSTRY 7 M’S
Way of Uplifting Micro, Small and Medium Enterprises

With the goal of ensuring inclusive growth and addressing

income inequality, there is a need to empower those at the
bottom of the pyramid and marginalized sectors with the right
mindset and know-how to be able to move up in life.

We’ll “teach them how to fish” and not just give them fish, as
the saying goes.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
DEPARTMENT OF TRADE AND INDUSTRY 7 M’S
To achieve that goal, the DTI endeavors to provide enabling
programs to help individuals rollout a business.

DTI has come up with 7Ms to help people set up their own
business and be a smarter entrepreneur to earn more. These
can equip them in making a difference in the market, while
contributing to the larger cause of sustaining the Filipino
entrepreneurial revolution.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
DEPARTMENT OF TRADE AND INDUSTRY 7 M’S
1.Mindset Change

Helping aspiring entrepreneurs embrace the right and positive

entrepreneurial attitude that will carry them through their
vibrant entrepreneurial journey. With DTI’s Negosyo Center
seminars, SME Roving Academy and Kapatid Mentore ME
program, DTI infuse an entrepreneurial mindset that is
success- and innovation-driven, collaborative and proactive.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
DEPARTMENT OF TRADE AND INDUSTRY 7 M’S
2.Mastery

At DTI Negosyo Centers, they teach entrepreneurs to master

the know-how and how-to’s of entrepreneurship, from what
they need to set-up a business, basic rules of spotting market
opportunities, finding your product positioning and
differentiation, product development, market development,
basic business finance and plan preparation, as well as
developing a system for continuous innovation.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
DEPARTMENT OF TRADE AND INDUSTRY 7 M’S
3.Mentoring

DTI provides the entrepreneurs with continuous business

guidance in partnership with the private sector members like
Go Negosyo, PCCI, PFA, AFFI and FFCCCII, thanks to programs
like Kapatid Mentor ME. Coaching and mentoring of industry
experts and large corporations on different aspects of
business operations is for free.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
DEPARTMENT OF TRADE AND INDUSTRY 7 M’S
4.Money

DTI gives access to funding through DTI’s P3 microfinancing

program -- in cooperation with SB Corp.-- or connect them to
microfinance institutions (MFI’s) to help you out with
financing, whether they’re setting up a business or if they want
to expand.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
DEPARTMENT OF TRADE AND INDUSTRY 7 M’S
5.Machine

DTI equips the entrepreneurs not only with the must-have

knowledge on equipment and right tools to ensure quality
production under the Shared Service Facilities (SSF) program,
but they can also use these to level up their production and
increase productivity. With innovation, the entrepreneurs can
produce more products more efficiently.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
DEPARTMENT OF TRADE AND INDUSTRY 7 M’S
6.Market Access

DTI helps entrepreneurs promote their products through

provincial and national trade fairs, One-Town, One Product
(OTOP) shows, Go Lokal! retail store concepts in major malls,
and the internationally-recognized FAME exhibits. DTI can also
link their business to big companies or to government so that
the entrepreneurs can supply them with their products on a
continued basis.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
DEPARTMENT OF TRADE AND INDUSTRY 7 M’S
7.Models of Negosyo

DTI gives the entrepreneurs different business ideas to help

them get into business, from traditional enterprises to direct
selling and franchising. DTI also teach them livelihood skills
like baking, soap-making, etc. At DTI Negosyo Centers, there’s
more than one way to do business.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
DEPARTMENT OF TRADE AND INDUSTRY 7 M’S

This is DTI’s way of promoting change for every Filipino

aspiring entrepreneur’s life and pursue their entrepreneurial
dreams. This is their way to encourage people to move up in
life and take control of their destiny, continuing the
entrepreneurial revolution in the Philippines.
Rule of Law
 RULE OF LAW
WHAT IS THE RULE OF LAW?

The rule of law is a set of principles, or ideals, for ensuring an

orderly and just society. Many countries throughout the world
strive to uphold the rule of law where no one is above the law,
everyone is treated equally under the law, everyone is held
accountable to the same laws, there are clear and fair
processes for enforcing laws, there is an independent judiciary,
and human rights are guaranteed for all.
 RULE OF LAW
IMPORTANCE OF RULE OF LAW IN BUSINESS

The rule of law is important to business. Can you imagine trying

to do business without being able to have any reasonable
expectations of other people’s behavior? Would you be willing
to conduct business if you had no legal means by which to
protect your property interests? And in the case of a dispute,
without a rule of law system, there would be no established way
of resolving it. Without the rule of law, business would be
chaotic.
 RULE OF LAW
IMPORTANCE OF RULE OF LAW IN BUSINESS

The rule of law provides guidance and direction in every area of

business. For example, it provides a means to bring a complaint
against another party to a neutral decision maker so that a
decision can be made regarding the dispute. Because of our rule
of law system, we know that we are permitted to file a complaint
in the proper court to commence litigation. Or we can try an
alternative method of dispute resolution if we do not wish to
engage in litigation. We know that we are permitted to do these
things because our rule of law system allows us to do them.
 RULE OF LAW
IMPORTANCE OF RULE OF LAW IN BUSINESS

The rule of law also governs contracts between people and

between merchants.
The rule of law also provides protection for property.
The rule of law govern the debtor and creditor relationships.
The rule of law also protects people from businesses.
The rule of law also protects businesses from government.
 RULE OF LAW
IMPORTANCE OF RULE OF LAW IN BUSINESS

Without a rule of law system, people would have to extract

satisfaction for the wrongs committed against them on their
own. They would have to physically protect their own property.
This would lead to a breakdown in social structure, and it would
result in vigilant justice and physical strength playing primary
roles in dispute resolution.
Economy in the
Philippines
 ECONOMY OF THE PHILIPPINES

Would you believe that Philippines is on track on becoming a

one trillion dollar economy by 2033?

The Philippines economy grew at a pace of 7.6% in 2022, the

fastest rate of economic growth recorded by the Philippines
since 1976. With strong growth forecast over the medium-term
outlook, the size of Philippines GDP measured in US Dollar
nominal terms is set to reach USD one trillion by 2033.
 ECONOMY OF THE PHILIPPINES

This will make the Philippines one of the largest emerging

markets in the Asia-Pacific as well as a leading emerging market
globally.

The strong rebound from the COVID-19 pandemic during 2022

helped to drive the pace of growth of the Philippines economy to
the fastest rate since 1976. The Philippines GDP growth rate of
7.6% was comparable to some of the world's fastest growing
large emerging markets in 2022.
 ECONOMY OF THE PHILIPPINES
An important stabilizing factor for the Philippines economy has
been overseas worker remittances by Filipinos working abroad,
which remained quite stable during 2020 despite the COVID-19
pandemic, down only 0.8% y/y, and equivalent to around 10% of
GDP. Remittances sent home by workers are an important factor
supporting domestic consumer spending in the Philippines.

Rapid growth in exports from the IT-BPO sector have also

become an important boost for the Philippines economy and for
total exports. IT-BPO exports have risen from USD 9.5 billion in
2010 to USD 25.1 billion by 2021, according to BSP estimates.
 ECONOMY OF THE PHILIPPINES

By 2033, the Philippines is forecast to become one of the Asia-

Pacific region's small group of one trillion-dollar economies,
joining mainland China, Japan, India, South Korea, Australia,
Taiwan and Indonesia in this grouping of the largest economies
in APAC.

This will help to underpin the growth of the Philippines domestic

consumer market, catalysing foreign and domestic investment
into many sectors of the Philippines economy.
 ECONOMY OF THE PHILIPPINES

Consequently, the outlook for the Philippines economy over the

next decade is very favourable, with significant progress in
economic development expected. In 2021, the Family Income
and Expenditure Survey of the Philippines government indicated
that 20 million people, or around 18.1% of the total population,
still live below the poverty threshold. Rapidly rising per capita
GDP and standards of living will help to underpin a broad
improvement in human development indicators and should
deliver a significant reduction in the share of the population
living in extreme poverty over the decade ahead.
THAT’S ALL
THANK YOU!