Holy Angel University

School of Business and Accountancy

Accountancy Department

Economic Development
Summer term

News Clipping

Submitted by:
Samia, Kyla Alyssa D.

A-221

Submitted to:
Dr. Maria Lina T. Ramoneda

May 28, 2023

News Clippings

MANILA, Philippines — A majority of Filipinos are inclined toward

entrepreneurship, according to results of a survey conducted by OCTA Research.
Based on its Tugon ng Masa nationwide survey, OCTA said the majority of Filipinos
are inclined toward entrepreneurship, and consider mentorship as an important
element for small businesses.
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“The survey found that 78 percent of respondents would choose to go into

business, citing the following as reasons: manage own time/schedule (31 percent),
having no boss to report to/ get along with (30 percent), no limit in profit/ bigger salary
(16 percent), daily income/ money (12 percent), and ability to work/earn at home or
anywhere (11 percent),” OCTA said. OCTA also found out that Filipinos appear to be
more attuned to entrepreneurship, as evidenced by the high awareness rating of the
non-profit Go Negosyo, which advocates for micro, small and medium enterprises
(MSMEs) in the Philippines.

Survey results also showed a 68 percent awareness rating for Go Negosyo,

the highest awareness (78 percent) being in the Visayas region. In addition, Go
Negosyo founder Joey Concepcion enjoyed a 60 percent awareness rating among
the respondents.The survey also showed that the respondents had a high awareness
rating of what the non-profit does. More than half of the respondents (54 percent) see
Go Negosyo as a partner of, or supporting small enterprises, while 42 percent see Go
Negosyo as an organization that teaches how to run a business.

Meanwhile, respondents of the survey identified capital and mentorship as

the support that small entrepreneurs need from the government, at 82 percent and 67
percent, respectively.“Mentorship was seen as important to small businesses by 95
percent of all respondents, saying it is very important (67 percent) and somewhat
important (28 percent),” OCTA said.The OCTA survey was conducted in March and
had 1,200 Filipino respondents aged 18 and older, from across all socioeconomic
classes.
“We welcome OCTA’s findings that more Filipinos are considering entrepreneurship.
If there is one sector that has been active and striving during the pandemic, it is the
micro, small and medium enterprises, and they are the ones poised to lead the
Philippines’ economic development, especially as we recover from the pandemic,”
Concepcion said in a statement yesterday.

Concepcion said the growing number of Filipinos willing to explore

entrepreneurship means that its advocacy at Go Negosyo is getting across to all
Filipinos from all the socio-economic classes and all over the country.
“We have been doing this for almost 18 years now and we will continue to reach out
through our online and in-person platforms for entrepreneurs, whether they are
aspiring or active entrepreneurs, are into retail or agriculture, are nano-entrepreneurs
or small and micro entrepreneurs,” Concepcion said.
Earlier this week, Concepcion highlighted that MSMEs are pre-positioned to lead the
country’s recovery following three years of the Covid-19 pandemic.
“If there is one sector that has been active and striving during the pandemic,
it is the MSMEs.They have borne the brunt of the worst but they persevered and they
are ready to take advantage of this rebound,” Concepcion said.
He emphasized that the pandemic even became an opportunity for some MSMEs to
pivot to digital technology.
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“They quickly adapted to selling online, and thanks to platforms that were
easy and accessible for them, such as the digital payments platforms, social media,
and delivery and ride-hailing apps, they became quite fast at changing the way they
did business,” he said.

The Go Negosyo founder further said that present conditions are favorable
for MSMEs as the Senate and the House of Representatives facilitated two crucial
laws that are critical to MSME development and jobs creation.

Last Monday, the Senate passed on third and final reading Senate Bill
2021, or the proposed amendments to the Magna Carta for Small Enterprises,
institutionalizing shared service facilities (SSF) for MSMEs. The House of
Representatives, meanwhile, approved on third and final reading House Bill 6336, a
measure condoning the existing loans that farmers incurred in owning lands under the
Comprehensive Agrarian Reform Program (CARP).

“I am glad that MSMEs remain a priority of the President’s agenda. Even

the condonation of agrarian reform beneficiaries’ debts will help because many of our
nano- and microentrepreneurs are in the agriculture sector.Both the amendment to
the Magna Carta for Small Businesses and House Bill 6336 will go a long way in
helping generate more jobs for the country,” he said.

Source: https://www.philstar.com/business/2023/05/26/2268998/most-pinoys-
interested-entrepreneurship-octa-survey-shows-
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Managing personalized schedules, having no boss to tell what you should do,
having a bigger salary, and ability to work anywhere are just some of the few
advantages why many Filipinos are encouraged to become entrepreneurs. With the
support of the government in assisting every micro, small and medium business
(MSMEs) in their Go Negosyo Act, there is an increase of self-confidence to become
an entrepreneur someday. These were according to an OCTA research survey that
was conducted in March and had 1,200 Filipino respondents aged 18 and older, from
across all socioeconomic classes. Moreover, with the rise of new entrepreneurs, there
are some sectors or businesses who are happy and sad about this news.

The first sector who will be delighted and provides a positive implication is the
government. This means that their approved Go Negosyo Act was effective in
encouraging Filipinos to become entrepreneurs by seeing how some MSMEs were
given support by this act such as mentorships. Not only that but also, this provides
more taxes which can be used to boost the Philippine’s economy. Second,
unemployed job seekers will also be in joy since more business means more job
openings are available. This would help them earn income and provide necessities
for themselves or their family. Third, online business marketing platforms such as
Shoppe, Lazada, Food Panda, Grab and others will be given positive implication
because if there are more businesses to open, they earn more money through sale
commissions, transaction fee or even service fee for marketing the product. Fourth,
banks and other financing institutions are at their advantage since more businesses
means more money, they can lend to these businesses in starting their business. This
will provide them with a bigger amount of interest when the borrower returns the
money. Fifth, manufacturing industries who produce raw materials for inventory type
products businesses will be booming since more businesses will be acquiring for their
product. These are all sectors, businesses, and industries who will receive positive
implications since most of their products or services will be in demand sometime in
the future.

On the other hand, the negative implication applies mostly to other business
owners who have already established their own business. There is a possibility that
their customer will shift to another same type of business. There is an increase in
competition upon entry of new businesses which can possibly lower the current
market price of their goods or services. Not only that but also, there is also a possibility
of snatching suppliers from other businesses. As a result, these business owners
receive negative implications and are sad about the news since less profits are
anticipated.

Overall, it can be synthesized how Filipinos are becoming more aware of the
advantages of having a business and are much willing to break the corporate
employee stereotype. Finally, it can be seen how even just a soon to be established
business can create a domino effect either positively by acquiring products or services
to banks, online business marketing platforms, and manufacturing industries or affect
negatively by becoming a threat to established business.