Philippine Culture and

Entrepreneurship

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Since we all know that the emergence of
entrepreneurs is related to the values held
by a culture, it is worthwhile to examine in
greater detail how our own culture favors
the thriving and growth of entrepreneurial
potentials. As you will see, there is enough
stimulation in our life experiences as
Filipinos that can enable us to meet the
demands, excitement and challenge of
entrepreneurship.
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If only more of us Filipinos took
advantage of this “heritage!” Only
few years back, young boys and
girls, when asked of their ambitions
in life, seldom spoke of becoming
an entrepreneur. As a result, it took
foreign entrepreneurs to take
advantage of the most promising
business opportunities in the
country.
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And how did our countrymen end
up? They ended up, paradoxically,
as employees and workers of those
foreign – owned enterprise in their
country!

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We are potentially capable of eliminating
poverty from our midst through our own
initiative. The reason why our efforts to
attain economic prosperity failed in the
past is perhaps because we did not
appreciate enough the contribution which
each one of us – whether as a manual
laborer, mayor, student or housewife –
we can make towards development.
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Even the role of entrepreneurs has been
taken for granted until recently.
Happily, today times are changing.
More and more Filipinos are becoming
aware that a college diploma does not
assure one of a successful life and that it
is more important to take up a career or
vocation that answers people’s needs
and corresponds to one’s own interest.
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For a long time, we have
allowed people from other
countries to judge us and
interpret our way of life. As a
result many of us have not
developed enough faith and
pride in ourselves, as a
matters of our own destiny.
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For example, we were made to believe that
as Filipinos, we were tamad (lazy), segurista
(one who doesn’t take risks), mahilig
makisama (one who likes to go along with
the group), gaya-gaya (copy cut), ningas
kugon (one who loses steam after a burst of
enthusiasm), balat sibuyas (over-sensitive)
and given to a fatalistic bahala na (let faith
decide) attitude.

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All these traits were seen negatively,
and were cited as the reasons for the
underdeveloped state of our country.
But as we shall see later, our
culture has much more in it than just
these “negative” traits. In fact, these
very “negative” traits have a positive
side to them unknown to the
foreigners who observed them.
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Understandably, as foreigners, they
had probably different sets of values
and so little familiarity with our own
to be able to make a sound
judgement of our way of life. What
is hard to understand, however, is
that Filipinos not only listen but also
believed and agreed with them –
with all their heart.
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Many of us feel a misplaced sense
of inferiority just because we are
different from the Americans or
Europeans. The Japanese people
are an exemplary people who have
attained economic success by
capitalizing on their own way of
life.
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Japanese did not copy
Western ways blindly but
rather selectively and
prudently adapted those
which can enhance their own
culture and economy.
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Our forebears were not lacking
in prudent judgement. They left
us a proverb which goes:

“Pulutin ang mabuti, ang

masama ay iwaksi.” (Pick up the
good and cast the bad away.)
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 This old Filipino saying
implies that we mainly
decide what is good and bad
for us, according to our own
cultural standards.

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 FILIPINO VALUES
FAVORABLE
TO
ENTREPRENEURSHIP

15
1. “Pakikipagkapwa” values promote
ideals of entrepreneurship.
In many ways, our cultural values are
favorable to entrepreneurship. Take for
instance our value for pakikipagkapwa
(human relation) which encompasses our
concern of hiya (loss of face), pakikisama
(togetherness), pakikibagay (adjusting or
adapting to other people.)
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At the root of this value lies all
our standards of interaction with
others. Pakikipagkapwa tells us
to treat others as fellow human
beings – every bit God’s creature
as we are. This value is very
much connected with our
concept of pagkatao or character.
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Pakikipagkapwa favors
entrepreneurship because it is against
any form of exploitation against
another. In fact, the role of the
entrepreneur is a practical translation
of one’s pakikipagkapwatao because
his work is to provide things and
services of value to others, he raises
their standards of living and improves
their lives.
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The entrepreneur that has
pakikipagkapwa does not cheat his
customers by overpricing or under
weighing his goods; nor undercut his
competitors by under pricing or
maligning them; nor maltreat his
workers by underpaying or
overworking them; nor cheat the
government by avoiding or evading
taxes.
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2. Many values promote risk
– taking or “lakas ng loob”
Individuals who are
without “guts” or who shrink
before challenges do not
become entrepreneurs.
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Bahala na
As Filipinos we are by nature malakas
ang loob (strong hearted),and not timid and
fearful as we were made to believe in the
past. In situations where we are uncertain of
our ability to accomplish things, we say
“bahala na” (let fate decide the outcome) and
do the best we can, believing that, “Nasa
Diyos ang awa, nasa tao ang gawa.” (Look to
GOD for compassion, and to man for action.)

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 Perhaps our lakas ng
loob stems from our
tremendous capacity to
tolerate ambiguity, and to
make improvisations or
remedyo.
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Pakikipagsapalaran
(adventure)
The saying “Ang taong
talagang duwag, tumatakbo’y
walang sugat” (a coward runs
away from the fight even before
he is wounded) tells us that we as
a people do not consider it
honorable to retreat before
uncertainty or challenge. 23
Gaya gaya
Our ability to learn and adapt to
new ways of doing things may also be
seen in our talent for gaya gaya or
imitation. Of course as one matures in
an entrepreneurial career, the habit of
gaya gaya can backfire because one
really has to be more creative and
innovative to make one’s products and
services more appealing to customers.
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Close family ties
We generally have no reason to
be overly fearful because we are
always surrounded by others who
care enough about us to support us in
whatever way they can. The
emphasis on “togetherness” provides
plenty of support to any aspiring
entrepreneur.
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Utang na loob,hiya, awa,
bayanihan

utang na loob (expectation of

some of some future time when
they in need our assistance.
Hiya (loss of face)
awa (compassion)
bayanihan
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We also have cultural values which
somehow ensure that we do not take
risks too high for us to overcome. In
the main, we have amor propio or
self – esteem. In any venture we
take, our whole pagkatao (humanity
or sense of shame) is at stake. We
therefore strive to give of our best to
assure success.
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3. Other values drive us to succeed
in enterprise
a. Kasipagan
One such value has to do with
industriousness or kasipagan which
is an essential characteristics of an
entrepreneur. We have our ways to
deal with the Juan Tamad around us,
through banters and proverbs such
as:
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Ang tamad namamatay sa gutom.
(The lazy man starves to death)

Ang hipong tulog tinatangay ng

agos.
(The sleeping shrimp is carried away
by the current.)

Pag hangin ang tinanim, bagyo ang

aanihin. (He who sows the wind
shall reap a storm.) 29
b. Pagtitipid
We also place a high value on
pagtitipid (thrift). You are
familiar with Asyong Aksaya

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Kung may isinuksok ,may madurukot.
(Put aside something today so that you
may draw upon it tomorrow)

Ubos – ubos biyaya, pagkaubos

tutungatunganga. ( Splurge today and
woe unto you on the morrow)

habang maiksi and kumot, magtiis na

mamaluktot. ( Flex yourself smaller
underneath a short blanket.)
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 Frugality and being industrious
usually come together like twin
brothers. It is difficult to unwisely
spend money which is hard-earned.
Individuals who save eventually
save enough to set up their own
business; and as entrepreneurs, they
do nor carelessly spend on things
that do not pay back in terms of
profit.
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c. Pagtitiis (endurance)
We are likewise persistent,
persevering people. We do not
easily give up in the face of
adversity.
Even the poorest of the poor
believe that by dint of hard
work, they face a brighter
future.
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d. Pagtitimpi
Another manifestation or our
endurance is our emphasis on
pagtitimpi ( self-control ). We do
not allow ourselves to display,
verbally or otherwise, our emotion
at the slightest provocation. We like
to wait until “mapuno na ang
gatangan” (we reach our limit)
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4. “Katapatan” as a value promotes
ethical business practices.
We do not like to exploit others,
otherwise we are tagged
“masamang tao” (worthless
persons). Rather we emphasize
katapatan (sincerity) or kalinisan ng
loob (purity of heart).
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5. Our values promote harmonious
labor-management relations
For his emphasis on katapatan and
kalinisan ng kalooban, the Filipino
cannot be a good manager of his
workers. He treats his people with
concern or malasakit. He sees to it that
there is damayan (mutual help) and
samahan (camaraderie) in his company,
and that his workers find him to be
personal, madaling makagaanan ng loob
and may awa. 36
 Meanwhile, he will be fortunate
to have workers who will not abuse
him because of their utang na loob
to him and for all his malasakit,
pagdamay (sympathy) and balato
(bonus), not to mention their job
itself. They will reciprocate by
showing their own respect,
helpfulness and understanding of
one’s inadequacies and solidarity.
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6. Our values promotes social
mobility
We are fortunate to live in a
culture where there is respect for
people who rise from the bottom
through hard work.

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Now you know what an entrepreneur
does and how he behaves.

Are you now motivated to go into

business?

Is motivation enough to make you an

entrepreneur or get you into
business?
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 To start and managing a
business, you must first
identify business
opportunities and select from
among these best business
idea – the one that would
assure you of maximum
return of investment.
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BUSINESS OPPORTUNITIES
Business opportunities are every
where as long as there are people with
money, and they are willing to satisfy
their needs. However there are more
business opportunities for individuals
who are creative, resourceful and risk-
takers because they create opportunities
instead of waiting for opportunities to
come. These are the real entrepreneurs.
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 Identifying Business Opportunities

What business must I get into?

Where and how will I spot them?
What tools and techniques may
serve as useful guide in choosing
business opportunities?
And if opportunities do come, how
will I capture and sustain them?
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 Let’s suppose you have some
capital or savings that you wish would
earn you more money. You’re not
sure what to do with it. You’re toying
with the idea of investing it in
business. But only if you can be sure
that the returns of the profits from it
will be more than the interest you will
get if you deposited it in a bank.
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 You, then ask yourself:
If I went into business, what
business would assure me of a fair
return?
How can I make sure that the
business I choose will earn?

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 Clearly, identifying potential
opportunities and, finally selecting an
entrepreneurial undertaking among
so many ideas is a task that requires a
lot of resourcefulness, creative and
innovative thinking, and a continuous
search for improvement through
research and analytical work.
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Areas to Consider in Screening Project Ideas
•Screening viable businesses can be
approached from both the broad(macro)
and narrow(micro) perspectives. The first
allows you to see business opportunities by
looking at the total business environment. In
other words, you observe developments and
trends taking place in the economy,
demography, and the society as a whole –
including political, ecological and
technological concerns.
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What is happening in the broad
picture will greatly affect your
decision on what products to produce
or services to offer. At the same time,
micro view is needed. This means
that you should thoroughly examine
your own capacities and capabilities –
including resources, values and
beliefs, skills and aptitudes.
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Both views – broad and
narrow – should then be
matched with each other.
Both the macro and micro
situations must be able to
support or justify the
business venture to be set up.
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 Techniques in Business Opportunity
Identification
1.Find a business opportunity in every market
need.
 One of the first things you should remember
in trying to identify business opportunities is
that all entrepreneurial projects answer, in one
way or another, a particular human need.
Whether it is a project or a service, it must
respond to what the buyers need or want.
Satisfaction for these needs and wants is a
good head start in business.
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2. Study demand and supply gaps.
Find out how the present demand for
certain products or services in the
community is being satisfied. Is demand
for certain products or services being
filled by local suppliers or producers?
Find out whether or not local supply can
cope with or totally satisfy local demand.
If not, this may suggest that there is
room for still one more in the business.
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3. Study import – export movements.
Again, perhaps a number of
products are being supplied by
producers or suppliers outside the
community or imported from other
countries. Study these imported
products. It is possible that given the
resources, you can produce them. You
may not be able to produce the same
high quality as the imported ones.
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 However, if you can produce at a
much lower cost and sell the
products cheaper, you have a
competitive advantage there. You
may find that your cheap though
lower – quality products will also be
attractive to the market. For
example, locally – cured ham, corn
beef tocino and longanisa have
become acceptable substitutes for
imported processed meats. 52
4. Capitalize on available
resources.
The availability of certain
resources in an area or
community can suggest business
opportunities. These resources
may be in the form of raw
materials, specialized skills,
information or technology.
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Consider the following:
Raw Materials – Determine the materials
that are indigenous to the area and
available in abundant quantities. Study
the possibility of making money out of
these abundant resources either through
gathering the materials, trading them,
processing them partially or
manufacturing finished products out the
materials.
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Local specialized skills – Are specialized,
traditional skills available in the
community? These refer to skills that can
be used or developed for commercial
purposes. Study these skills carefully for
possible upgrading and innovation. The
availability of skilled weavers in a
community, for example, can be
exploited in organizing a weaving,
handicraft or handloom industry.
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Industrial information – Read
technical and business
journals will keep you up to
date on business ideas.

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5. Adapt, complement, reshape.
Be observant. Familiarize
yourself with the current economic
situation in communities or
countries comparable to yours. You
can derive business ideas from a
number of projects which have
worked in these areas and which you
can adapt to your own local
situation. However don’t just copy
or imitate. Innovate! 57
6. Explore forward – backward industry
linkages.
No doubt, there are a number of
industries in your community. Find out what
possible business ideas you can pick up from
existing operations. A backward linkage of a
meat processing plant in your area may spur
agri – business activities, such as poultry or
hog raising, transport services or supplying
of raw materials required for meat
processing.
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7. Screen and select the best
investment alternative.
You may be able to identify a
number of alternative business
ideas. You may then narrow
down the choice to two or three
possible projects.
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 for example, food garments or
furniture making. Each of these
business ideas has its own plus
(advantages) or minus
(disadvantages) factors. But
since you have limited resources,
you can’t go into all the projects
at once. You’ll have to screen
and select the best one.
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How to screen business
options
1. Ease of entry
2. Degree of risk
involved
3. Return of investment.
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Planning the enterprise
Planning a business enterprise is
like planning the construction of a
house. In building a house, experts
will tell you that there are several
sub-plans and steps involved before
actual constructions. You will be
advised to think carefully and
consider various factors.
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 Planning in plain and
simple language is thinking
ahead. In business, it is
thinking ahead of objectives,
strategies, financing,
production, marketing, profit,
prospects, and growth
possibilities.
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 However, business planning
should be realistic. This means
planning is based on available
resources, and its responsive to the
needs of the community. Otherwise,
planning is no different from
dreaming. Not a few business and
government projects fail because
their objectives do not much their
resources.
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 Business Planning Explained

• what to do
• how to do it
• Planning is
• when to do it
• what to expect in
the future

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 Business planning involves the
attainment of goals, and the way
to accomplish such goals. A time
frame is needed in attaining the
goals. Supposing you want to put
up a poultry project. How do you
do it? Do you have funds? Do
you also have the skills and
interests?
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Assuming there are no
problems in money,
skills and interests,
when are you going to
start the projects?
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 Starting the business is not the end
of business planning. Ultimately, it is
the consumer satisfaction that requires
planning. This should be properly
planned because consumer satisfaction
means business stability and growth. In
financial language, consumer
satisfaction is profit. Thus, business
planning is a continuous process until
consumer satisfaction is maximized and
sustained.
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Why prepare a plan?
In the same way that you can build a
house without drawing up a construction
plan, you can also run an enterprise
without writing a business plan. But
building a house or a business without
planning is risky if not downright
wasteful. You might end up with a
defective or unsatisfactory house or
business.
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You might end up paying or
investing more money that you
should have spent in building it.
You might also find out in the
end that the house or the business
has very weak foundations and
therefore is not liveable or
sustainable over the long term.
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In preparing the business plan you can:
- minimize, if not eliminate the risk of losing
money on a poor business idea.
- save on costly mistakes
- determine your financial requirements
- program your activities in advance
- evaluate actual performance against set
targets, especially in terms of sales, costs and
profits.
- approach a financial institution for loans, in
which a business plan is a common pre –
requisite.
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 Principles of Planning

Planning must be realistic

It must be based on available
resources – human, financial, and
physical resources. If these are not
enough, then it would be impossible to
implement successfully the project. Any
planning which is not supported by
adequate resources is likely to fail.
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Planning must be based on felt
needs.
The objectives of the
entrepreneur should fit the needs
of the people in a community.
Such needs can be known
through observations, personal
interviews and questionnaires.
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Planning must be flexible.
Resources, needs and economic
conditions change. Planning should be
adjusted to such changes to be effective
and relevant. For instance, fundamental
changes in government policies require
changes in planning the affected aspects
of the business. Likewise, planning
should be responsive to the trends in
consumer tastes and preferences.
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Planning must start with simple
projects.
In the Philippines, many people are
poor and have no business experiences.
The most appropriate project for them
in the micro business. This requires
very simple management and
technology. It also needs simple and
few resources in terms of funds,
materials, and equipment.
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 Such simple business enterprise
has a greater possibility of success.
More importantly, it provides a
good training experience for
operating a business. Later on,
operator can engage in bigger
business projects as he acquires
more resources and management
experiences.
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Stages of Business Planning
Professor Philip Kotler, author
of Marketing Management said that
there are four stages of business
planning. Business which have
passed these stages are on their way
to sophisticated planning. Many
enterprises are classified in each of
these stages.
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Unplanned stage
At the start of the business, the
owner-manager is busy looking
for funds, customers, materials
and equipment. He has no time
for planning. His entire attention
is devoted to the daily operations
of his business in his intense
desire to survive.
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Budgeting – System stage
Eventually, the owner-
manager realizes the need to
develop and use a budgeting
system. Estimated incomes from
sales and expected expenditures
are made. This is done to
facilitate the orderly functions of
the growing enterprise.
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Annual planning stage
The owner-manager drafts
an annual plan. He can use
either the top-down
management planning of
bottom up planning.

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Strategic planning stage
As the business enterprise
becomes bigger, a long range
planning is needed. This is a
three or five year plan. Such
plan has flexibility to able to
adjust to changing conditions.
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Criteria of Effective Planning
1. The plan should state clearly
its objectives. Such clear
statement is necessary so that
those who will involved in the
execution of the plan will
understand, believe, accept and
support it.
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2. The plan should provide measures
for a satisfactory accomplishment of the
objectives in terms of quantity, quality,
time, and cost. These help in
delegating responsibility and measuring
results.

3. The plan should state the policies

which should guide people in attaining
the objectives.
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4. The plan should indicate what
department or unit will be involved in
accomplishing the objectives. It may or
may not spell out the procedures for
performing the required work.

5. The plan should indicate the time

which should be allowed for each
activity. It may be necessary to
establish a target data for completing
the activity.
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6. The plan should specify the
required resources and their
corresponding costs.

7. The plan should designate the

officers who will be held
accountable for the accomplishment
of the objectives. Sufficient
authority should be delegated to
such officers/executives.
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Components of Business Planning
1. SWOT – the chances of a product
or service can be evaluated through
SWOT analyses. Every product or
service has its own strength,
weakness, opportunity and threat.
Planning should include the
improvement of the product/service
in order to survive competition.
86
2. Objectives – these should be specific
and realistic. Such objectives can be
daily, weekly, monthly and yearly.

3. Strategies – these are ways of

accomplishing the objectives. Such
ways are stated in the financial,
production, marketing, and
organizational plans of the enterprise.

87
4. Time frame – in business,
time is gold. For instance, an
entrepreneur must be efficient
in time management. Every
activity has its own time
schedule. Activities which are
completed on time save
money.
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Importance of Business Planning
Putting up a business is not a
game of chance. It is not a win
or loss activity. However, there
are always risks in business.
Some of these can be avoided.
Others cannot be avoided like
natural calamities, but their
effects can be minimized.
89
Planning can eliminate business risks
because it carefully studies the
competence, interest and resources of the
entrepreneur against the needs of
consumers, together with the presence of
competitors. Through marketing
research or feasibility study, the
entrepreneur can determine whether it is
profitable to set up a certain kind of
business or not.
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Planning can minimize costs of
production. The resources if production
such as money, materials, machines
and manpower are properly used and
scheduled according to plan. The
entrepreneur monitors and controls
every aspects of the business operations
to prevent unnecessary wastes. This
results to economy and efficiency.
Without planning production inputs are
wasted more often than not.
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Planning can detect the weaknesses of
the business operations. In planning
goals and objectives are formulated.
Alternative strategies are designated on
how to attain the objectives and goals.
The various resources or inputs are also
indicated to support the strategies. If the
goals and objectives have not been
accomplished according to time frame,
there are something wrong with the
operation.
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Steps in Business
Planning

93
1. Evaluate your personal resources and
interests, and the resources of the community.
 Do you have the necessary fund?
 Do you have the skills or management
experience?
 Does the government provide financial
and technical assistance?
 Are raw materials available?
 Are you interested in such business?
 Do you have good human relations?
94
2. Analyze your market
• Is there a good demand for your product or
services?
• How many competitors are there in the
market?
• What is your estimated share in the market?
• Who are your customers?
• Are they interested in the existing product or
service?
• Is it possible for you to offer a better quality or
a lower price?
• Is there a reasonable profit? 95
3. Choose a proper business location
• Is it near your prospective customers?
• Are there facilities like electricity, water,
transportation and communication?
• Is the place clean, decent, and peaceful?
• Do you have a good alternatives in case
the best locations is expensive?
• Is it accessible to raw materials and
other suppliers?
96
4. Prepare a financial plan
• What are your objectives?
• How much money do you need?
• How will you spend the money?
• Where will you get the money
• What are your expenses?
• How soon can you recover your
money or investment?
97
5. Prepare a production plan
• Is it more economical to rent or buy a
production equipment?
• Can you ensure or improve your
product design or quality?
• Can your production facilities meet
demand?
• Do you have inventory control?
• Do you have proper scheduling of
production? 98
6. Prepare an organizational plan
• What type of business organization is most
suitable?
• Do you know the corresponding laws, policies
and requirements of your business
organization?
• Are you aware of the advantages and
disadvantages of each type of business
organization?
• Who will be the officers and employees of your
enterprise?
• What are their duties and responsibilities?
99
7. Prepare a management plan
• What are your goals and objectives?
• What are your strategies?
• Do you have business policies for
your customers?
• Do you have human resources
development for your employees?
• What is your program of social
responsibility?
100