I.

Lesson Title: Entrepreneurship in the Philippines

Reference: Evangelista, R. P. G. (2013). Entrepreneurship in the Philippines: Opportunities and
Challenges for Inclusive Growth. Center for International Private Enterprise.

II. Learning Outcomes:

At the end of the lesson, the learners will be able to:
1. Recognize the context of entrepreneurship in the Philippine Setting.
2. Learn from the stories of successful Filipino entrepreneurs.

III. Lectures:

Entrepreneurship in the Philippines

[Taken from the article Entrepreneurship in the Philippines: Opportunities and Challenges for
Inclusive Growth by R.P.G. Evangelista for the Center for International Private Enterprise]

In the Philippines, entrepreneurship is viewed as important to empowering the poor, enhancing

production, and as an impetus to innovation. 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.
Aspects of Philippine Entrepreneurship
1. 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.
2. Rule of Law
Rule of law, which encompasses regulatory structures, policy environment, and enforcement of
regulations, is one of the more important dimensions in assessing the competitiveness of
Philippine enterprises.
Taking the case of business start-ups for instance, when entrepreneurs draw up a business plan
and try to get under way, the first hurdle they face is complying with the procedures required to
incorporate and 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.
3. Access to credit
Another important dimension is access to financing. While specific laws such as the MSME
Magna Carta and Barangay Micro Business Enterprises (BMBE) development specifically
mandate financing for enterprises, obtaining said funds is a different story. Most lending
portfolios require collateral accompanied by tedious documentation and other technical
requirements that are difficult for MSMEs to comply with.
4. Internationalization and global production networks
The rapid integration of economies and globalization of markets has influenced the evolution of
entrepreneurship over the years. Thus, from the traditional concept of supporting the various
factors of production, entrepreneurship now entails the capacity to see an opportunity, come up
with an idea, and organize the capital, knowledge, partners and managerial skill needed to
develop and sustain business activities through internationalized value chains.
5. Role of enterprise networks
In the Philippines, apart from institutions like chambers of commerce and industry clubs,
entrepreneurship advocacy is mainstreamed by the creation of enterprise networks like the
Philippine Center for Entrepreneurship (PCE). PCE’s concrete goal is to spawn the creation of
so-called “Go Negosyo Communities” everywhere. Every “Go Negosyo” community is
distinguished by its ability to produce a continuous stream of start-up ventures.

Successful Filipino Entrepreneurs Who Started Small

[Taken from Eight Successful Filipino Entrepreneurs Who Started Small, an article by
Inquirer.net on its business section, Business.inquirer.net]

The following are some successful Filipino entrepreneurs who

started small from the list of Eight Successful Filipino
Entrepreneurs Who Started Small, an article by Inquirer.net on
its business section, Business.inquirer.net:
1. Socorro Ramos – National Book Store
Socorro Ramos entered the publishing and retail industry by
working as a salesgirl at a bookstore. At the age of 19, she
opened National Book Store in Escolta with her husband with a
capital of P200, selling books and school supplies to students. At that time, Manila was under the
control of the Japanese, who imposed censorship on books and periodicals. To augment their
earnings, she and her husband resorted to selling other items like candles and soaps.

After the post-war boom proved profitable for the company, ushering in bigger revenues, the
Ramoses opened a nine-story building along Avenida. At 95, she still believes in the time-
honored tradition of “hands-on approach” in business. She even designed the company’s logo
herself.
Image Source: http://happynoy.blogspot.com/2016/07/success-story-nanay-coring-and-national-
bookstore.html

2. Tony Tan Caktiong – Jollibee

Tony Tan Caktiong used to operate an ice cream parlor,
before converting it into a fast food restaurant called
Jollibee. With a starting capital of P350,000, the young
Caktiong opened two branches in Cubao and Quiapo,
together with friends who supported his idea. 
Caktiong decided to serve hamburgers, fried chicken, and
spaghetti to customers when they started looking beyond the usual ice cream.

Eventually, the business grew, and he had to hire more employees. By knowing the Filipino
market, Jollibee managed to excel as a fast food powerhouse.
Image Source: https://primer.com.ph/business/wp-content/uploads/sites/9/2017/03/
bilyonaryo_jollibee-1.jpg

3. Milagros, Clarita, and Doris Leelin – Goldilocks

Source: https://cdn01.vulcanpost.com/wp-uploads/2018/02/Goldilocks-FI.jpg
With only two cake displays and ten employees, Milagros, Clarita, and Doris Leelin started
Goldilocks at a 70-sq-m building space in Makati. Sisters Milagros and Clarita loved baking and
decided to pursue their passion into business. With the help of their sister-in-law Doris, the
Leelins opened their first branch.

In 1991, Goldilocks launched its franchising program. As of 2015, the bakeshop chain had
almost 400 stores across the country, with other branches in the USA, Canada, and Southeast
Asia. From a modest capital of P66,000, Goldilocks is now a multi-million food enterprise with
more than 4,000 employees.

4. Jose Magsaysay – Potato Corner

The young Magsaysay left school to bust tables, wash plates, and work on the cash register at a
fast food chain. In a few years, he became a manager, handling five stores.

With his background and skills in store management, Magsaysay’s friends asked him to handle
Potato Corner, of which he was a co-founder. They pooled their money together and started the
food cart business in 1992, offering franchises left and right. Today, Potato Corner has more than
550 stalls in the Philippines and around the world.
Image Source: https://i.ytimg.com/vi/_Ne5IY3Gu4U/maxresdefault.jpg

5. Edgar Sia – Mang Inasal

Hailing from Iloilo City, Edgar Sia dropped
out of college to pursue his own laundry and
photo-developing business at the age of 19. In
2003, 26-year old Sia decided to open the
barbecue fast food restaurant Mang Inasal—
Ilonggo for “Mr. Barbecue.” The first branch
was built at a mall parking lot in his home city.

The restaurant took off. When Tony Caktiong

heard about Sia’s burgeoning business, he
decided to buy Mang Inasal for a total of P5 billion. Sia eventually put the sales of Mang Inasal
to other investments like banking and healthcare. At 42, he’s considered the country’s youngest
billionaire.
Image Source: https://image.slidesharecdn.com/manginasalventure-120427123626-
phpapp02/95/mang-inasal-presentation-6-728.jpg?cb=1335530725