ENTREPRENEURSHIP

IN THE PHILIPPINE
SETTING
 MANDATES
• The 1987 Philippine Constitution recognizes entrepreneurship as an
engine of economic growth.
• Article XII Section 1 highlights the role of private enterprises in
supporting equitable distribution of income and wealth, sustaining
production of goods and services and expanding productivity, therefore
raising the quality of life.
• 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.
 ENTERPRISE DEVELOPMENT AND
COMPETITIVENESS
• entails the ability to produce products that can be accepted globally
• focuses on the level of support given to enterprises to help them
produce, innovate, and gain market access
• although relatively mature and free, enterprise development in the
Philippines is beset with critical challenges
 RULE OF LAW
• one of the more important dimensions in assessing the competitiveness
of Philippine enterprises
• Encompasses the following:
a. regulatory structures
b. policy environment, and
c. enforcement of regulations

• the Philippines ranks 138 of 185 economies with regards to the ease of
doing business
 CHALLENGES OF BUSINESS START-
UPS
• Creating a business plan
• The first hurdle they face is complying with the procedures required to
register the new firm before they can legally operate
• The Philippines requires at least 15 procedures and takes some 30 or more
days to start a business
• Getting access to financing
 SUPPORT NEEDED BY BUSINESS
START-UPS
• strong social and physical infrastructure
• labor productivity
• Laboratories
• business incubators
• business planning
• marketing and branding, and
• conformance to international standards
 A COMPARISON BETWEEN THE
FILIPINO AND CHINESE FAMILIES
• In a typical Filipino environment, entrepreneurship is not so much
encouraged at an early age. Children were brought up focusing their
attention in getting an education so they can later find outside
employment. They were never moulded for a lifetime endeavor that is
based on autonomy and independence. However, in families of
Chinese descent, parents require their children to start working early by
helping in the family. The effect has been the proliferation of
businesses owned by the “Chinoys.”
 SIGNIFICANCE OF FILIPINO VALUES IN
RUNNING A BUSINESS
Factors that affect the business:
- Existing Values
- Culture
Some Negative Values/ Traits of Filipinos that foreign countries noted:
- Tamad Segurista Mahilig Makisama
- Gaya-gaya Ningas-kugon Balat-sibuyas
- Bahalana attitude
 POSITIVE EFFECTS OF FILIPINO
CULTURE
1. EXCELLENT HUMAN RELATIONS
– Filipinos have high regard for “pakikipagkapwa-tao” which turn
elicits certain values like pakikisama, pakikibagay, bayanihan at
pagmamalasakit. Filipinos like to be in harmony with others. They
always maintain what is known as SIR or Smooth Interpersonal
Relationship in their social dealings.
 POSITIVE EFFECTS OF FILIPINO
CULTURE
2. IMPACT ON ENTREPRENEURSHIP
– Filipinos do not favour exploitation of others. With these attitudes,
the entrepreneur is able to build rapport easily with those involved in his
business. He gains satisfaction from the fact that he engages in
something of value to others such as improving their lot.
 POSITIVE EFFECTS OF FILIPINO
CULTURE
3. THE VALUE OF SELF-ESTEEM AND GOOD PUBLIC IMAGE
– Filipinos though morally obliged to place the group’s interests above
their own, they nonetheless try to preserve their dignity. The Filipino
attitude of amor-propio (meaning love of one’s self) and delicadeza
(connoting a sense of decency) reflects this assertion. It is common for
Filipinos to avoid getting embarrassed by not making moves that would
warrant disapproval from peers or the public.
 POSITIVE EFFECTS OF FILIPINO
CULTURE
4. ADVENTUROUS
– It is seen in the form of risk-taking. It is common for us to see people
coming from different provinces migrating to urban districts. Their
common answer as to why they migrate is they want to try their luck in
Metro Manila.
 POSITIVE EFFECTS OF FILIPINO
CULTURE
5. COURAGEOUS
– Filipinos when confronted with certain uncertainties, the usual answer
is “bahala na.” During times when they have financial crisis in the
province, the first option that comes to mind is to try their luck outside
the province, some even have the greatest desire to go abroad to work.
This is also a kind of risk-taking that reflects the optimism of Filipinos in
life.
 POSITIVE EFFECTS OF FILIPINO
CULTURE
6. SENSE OF OPTIMISM
– Over the past years, several crisis such as political, economic and
natural calamities have beset Filipinos. But they have a natural strength
of character and a strong sense of faith in God which enables them to
face and withstand any crisis.
 BUSINESS MODELS
• WHAT IS A BUSINESS MODEL?
- A business model is a conceptual structure that supports
the viability of a product or company and explains how
the company operates, makes money, and how it intends
to achieve its goals. All the business processes and
policies that a company adopts and follows are part of the
business model.
 DIFFERENT TYPES OF BUSINESS
MODELS
• MANUFACTURER - makes finished products from raw
materials. It may sell directly to the customers or sell it to a
middleman i.e. another business that sells it finally to the
customer. Examples – Ford, 3M, GE
• DISTRIBUTOR - buys products from manufacturers and
resells them to the retailers or the public. Examples – Auto
Dealerships
 DIFFERENT TYPES OF BUSINESS
MODELS
• RETAILER - sells directly to the public after purchasing the
products from a distributor or wholesaler. Examples –
Amazon, Tesco, retail online shops, sari-sari stores
• Franchise - can be a manufacturer, distributor or retailer.
Instead of creating a new product, the franchisee uses the
parent business’s model and brand while paying royalties to it.
Examples – McDonald’s, Pizza Hut.
 DIFFERENT TYPES OF BUSINESS
MODELS
• E-COMMERCE business model is an upgrade of the
traditional brick-and-mortar business model. It focuses on
selling products by creating a web-store on the internet.
• NICKEL-AND-DIME - In this model, the basic product
provided to the customers is very cost-sensitive and hence
priced as low as possible. For every other service that comes
with it, a certain amount is charged. Examples – All low-cost
air carriers.
 DIFFERENT TYPES OF BUSINESS
MODELS
• SUBSCRIPTION - If customer acquisition costs are high, this business
model might be the most suitable option. The subscription business
model lets you keep customers over a long-term contract and get
recurring revenues from them through repeat purchases. Examples –
Netflix, Dollar Shave Club.
• AGGREGATOR - a recently developed model where the company is a
various service providers of a niche and sell their services under its own
brand. The money is earned as commissions. Examples – Uber, Airbnb,
Oyo Hotels
 DIFFERENT TYPES OF BUSINESS
MODELS
• DATA LICENCING / DATA SELLING - With the
advent of the internet, there has been an increase in the
amount of data generated upon the users’ activities over
the internet. Many companies like Twitter and Onesignal
sell or licence the data of its users or users of users to third
parties which then use the same for analysis, advertising,
and other purposes.
 DIFFERENT TYPES OF BUSINESS
MODELS
• ADVERTISEMENT - evolving even more with the rise of the
demand for free products and services on the internet. Just like
the earlier times, these business models are popular with media
publishers like YouTube, Forbes, etc. where the information is
provided for free but are accompanied with advertisements
which are paid for by identified sponsors.
 DIFFERENT TYPES OF BUSINESS
MODELS
• NETWORK MARKETING OR MULTI-LEVEL
MARKETING
- involves a pyramid structured network of people who sell a
company’s products. The model runs on a commission basis
where the participants are remunerated when :
• They make a sale of the company’s product.
• Their recruits make a sale of the product.
 DIFFERENT TYPES OF BUSINESS
MODELS
• CROWDSOURCING - involves the users to contribute to the
value provided. This business model is often combined with
other business and revenue models to create an ultimate
solution for the user and to earn money. Examples of
businesses using the crowdsourcing business model are
Wikipedia, reCAPTCHA, Duolingo, etc.
 DIFFERENT TYPES OF BUSINESS
MODELS
• HIGH TOUCH MODEL - is one which requires lots of
human interaction. The relationship between the salesperson
and the customer has a huge impact on the overall revenues of
the company. The companies with this business model operate
on trust and credibility. Examples – Hair salons, consulting
firms.
 DIFFERENT TYPES OF BUSINESS
MODELS
• LOW TOUCH - The opposite of the High Touch model, it
requires minimal human assistance or intervention in selling a
product or service. Since as a company, you do not have to
maintain a huge sales force, your costs decrease, though such
companies also focus on improving technology to further
reduce human intervention while making the customer
experience better at the same time. Examples – Ikea,
SurveyMonkey.
 WEBSITE REFERENCES:

• https://www.cipe.org/resources/entrepreneurship-philippines-opportunities-challenges-in
clusive-growth/
• https://
www.scribd.com/presentation/354474333/Ch-02-Entrepreneurship-in-the-Philippine-Sett
ing
• https://www.feedough.com/what-is-a-business-model/