ENTREPRENEURSHIP IN THE

PHILIPPINE SETTING
LESSON #02
THC10 – Entrepreneurship in Tourism & Hospitality
 LEARNING OBJECTIVES:

At the end of the lesson, you should able to:

● describe the overview of Entrepreneurship in the Philippines;
● analyse how Entrepreneurship develop the country;
● identify the government agencies related to
entrepreneurship in the country;
● apply the Filipino values in business; and
● identify the different business that are in demand in the
Philippines.
A glimpse of the Philippines
● The Philippines has a mountainous terrain.
● Over 30,000,000 hectares of land
● has 7,100 islands in the archipelago with Luzon, Visayas and Mindanao as the
largest regions.
● has rich and diverse resources.
● Our land is fit for agricultural activities.
● Rice, corn, fruits and vegetables grows best
● Abaca, coconut and sugarcane are products widely seen around the country
● important minerals are mined like, Gold, Silver, copper, nickel, bauxite and carbon
● the Philippines also has oil reserves in Palawan and in the much contested, Spratly
Islands
● Dry and Typhoon Season
● Tagalog-based language and
● more than 100 dialects
A glimpse of the Philippines
●Our country is also abundant in marine resources, like fish, corals, and marine
vegetation which is a major source of income in many island inhabitants.
○42% FORESTED
○8% Urban, water underdeveloped
○15% Arable and uncultivated
○11% Arable and cultivated
○4% plains and grasslands
●FILIPINOS have excellent human relations
○Pakikipagkapawa-tao
○Pakikibagay
○Pagmamalasakit
○Pakikisama
○Bayanihan
●FILIPINOS uphold the value of self-esteem and good public image
A glimpse of the Philippines
●FILIPINO by nature are courageous
○Bahala Na
○“Ang Makipagsapalaran sa Maynila”
●FILIPINOS are noted for their ability to withstand crisis.
○Have natural strength of character and a strong sense of
faith in God.
○Extreme personalism
○Extreme family-centeredness
○Lack of discipline
○Passivity and lack of initiative
○Colonial Mentality
○Kanya-Kanya syndrome
○Lack of Self Analysis and Self Reflection
GOVERNMENT AGENCIES
Involved in
ENTREPRENEURSHIP in the
PHILIPPINES
DEPARTMENT OF TRADE AND INDUSTRY
(DTI)
∙ The DTI is responsible for realizing the country's goal of globally
competitive and innovative industry and services sector that contribute
to inclusive growth and employment generation.

∙ Pursuant to the Philippine Development Plan (PDP) 2017-2022, we

shall endeavor to reduce inequality and poverty by expanding
economic opportunities in industry and services, and by increasing the
access particularly of micro, small and medium enterprises (MSMEs),
cooperatives and overseas Filipinos (OFs) to these opportunities. To
attain these sector outcomes by 2022, we need to:
o Increase local and foreign direct investments
o Increase competitiveness, innovativeness and resilience of
industries and services
o Improve access to finance, to production networks, and to
markets
o Enhance productivity, efficiency, and resilience
o Ensure consumer access to safe and quality goods and services
 EXAMPLE of DTI Certification

For those interested in establishing sole

proprietorships and registering their business names,
The DTI is the office to head to. Businesses that are
importing and exporting are required to register with
DTI and in doing so, are eligible to receive special
incentives for importing. It is the entity that governs
organizations that promote investments such as
Board of Investments (BOI) and the Philippine
Economic Zone Authority (PEZA). This office is
in-charge of the accreditation responsibilities of the
Bureau of Product Standards (BPS) Accreditation
Scheme (BAS) and BPS Laboratory Accreditation
Scheme (BPSLAS).
 DTI ROLE in STRENGTHENING THE
ENTREPRENEURHSIP OF THE PHILIPPINES

Micro, small and medium enterprises (MSMEs) are the

backbone of the PHL’s economy since they serve as critical
drivers of our economic development, particularly in fostering
growth, employment, and income. The government, as it continues
to put its economic plan in place is an indication of recognizing
the importance of MSMEs in our country. Armed with this mission,
effective and efficient actions such as implementation of policy
provisions is essential to carry out the plans in addressing,
sustaining and expanding the programs and services of the
MSMEs which will undoubtedly contribute to the country’s GDP
and growing labor force.
 DTI ROLE in STRENGTHENING THE
ENTREPRENEURHSIP OF THE PHILIPPINES

Among the initiatives of the government is the DTI’s 7Ms

which aims to help Filipinos to set up their own business and be
smarter entrepreneurs. With the planned projects in attaining
the seven-point strategy that includes Mindset, Mastery,
Mentoring, Markets, Money, Machines, and Models of
Business, the Department of Trade and Industries hopes that
these ways can make a difference in the market which will
consequently contribute to the larger cause of sustaining the
Filipino entrepreneurship revolution (Department of Trade and
Industry, 2018b).
DEPARTMENT OF LABOR AND EMPLOYMENT
(DOLE)

DOLE is the national government agency

that is responsible for formulating
policies and implementing programs in
the field of labor and employment. The
agency protects workers and their
welfare by enforcing employment and
labor laws. For foreign nationals looking
to work in the Philippines, the DOLE is
where they must head to to apply for
Alien Employment Permits.
SECURITIES AND EXCHANGE COMMISSION
(SEC)

The commission’s major functions include

registration of securities, analysis of every
registered security, and evaluation of the
financial condition and operations of
applicants for security issue. Corporations
in the Philippines acquire their license from
and are registered with the Securities and
Exchange Commission. Partnerships and
corporations head to this office when
registering for their business names.
SOCIAL SECURITY SYSTEM
(SSS)
The Philippine Social Security System
(SSS) is a social insurance program for
employees in the Philippines. Founded
in 1957, the SSS is a government
agency that provides retirement and
health benefits to all paid up
employees in the Philippines. Members
of the SSS can also make 'salary' or
'calamity' loans.
HOUSE DEVELOPMENT MUTUAL FUND
(HDMF)

• The most popular program benefit of the Pag-IBIG Fund offers

assistance to its members by providing affordable financing
for their housing needs. HDMF accomplishes this by working
in partnership with the local Real Estate Developers and
arranging affordable loans to real estate buyers (Pag-IBIG
members).

• Membership to the HDMF is mandatory, therefore all

employers and employees must register and contribute to the
fund. This government entity is under and directed by the
Pag-IBIG fund. Through the HDMF, members are able to avail
housing loans and calamity relief funds.
PhilHealth
PhilHealth is the Philippine
government’s health care
corporation. The responsibility of
Philhealth is to give its members
the basic health insurance and
health care financing. SSS
members are required to register
for PhilHealth.
ENTREPRENEURSHIP
In the PHILIPPINE SETTING
ENTREPRENEURSHIP in the
PHILIPPINE SETTING
• Micro-, small and medium-sized enterprises (MSMEs) are
businesses employing less than 200 workers or those with an asset size
of no more than 100 million.
• Large enterprises, on the other hand, are defined as businesses having
more than 200 employees or with an asset size of more than 100 million.

• Small and Medium Sized enterprise (SMEs) make up

99.6% of registered business in the Philippines and employ over 70%
of the working population.
• 820,795 Micro Businesses, 86,955 Small Businesses, and 4,018
Medium Businesses. 911,768 total number of MSME in the Philippines.
FILIPINO Values
Existing values and culture of the people have significant
effects in business. They are among the factors that have to be
considered by anyone who is putting up a business. These
values and culture affect the buying decision.

● Filipinos have shown great human relations.

● Filipinos uphold the value of self-esteem and good public
image.
● Filipinos are generally adventurous.
● Filipinos by nature are courageous.
● Filipinos are noted for their ability to withstand crisis.
TEN REASONS
for doing business
in the PHILIPPINES
TOP REASONS
1. The Philippines is creating incentives to entice
foreign investors, opening opportunities
particularly in the areas of industrial and
infrastructure development.
2. Earning and capital can be freely converted and
repatriated.
3. A wave of privatization and deregulation has
added substantially to the investment attractions.
TOP REASONS
4. Philippines financial markets, while still volatile, have been
most rewarding emerging securities markets, posting
remarkable performance in the recent years.
5. The Philippines is one of Asia’s most accessible countries for
many Westeners because of its historic links with the Spain and
the U.S.
6. At the crossroads of international shipping and air routes, this
island nation is strategically positioned as a perfect
intermediary between Asia and the rest of the world. It is both
a potential source for those seeking suppliers worldwide and a
prime location from which to serve the rapidly growing Asia
markets.
TOP REASONS
7. The country offers a skilled, highly trainable, and inexpensive labor force
of more than 26 million people, many of whom speak in English.
8. The Philippines has a long-established reputation as a significant exporter
of agricultural products, minerals, and other raw materials commodity
goods.
9. The Philippines reawakening industrial sector has already begun to
produce and export a range of competitive, higher value-added industrial
products, and its effort at diversification are succeeding. The country is
fast becoming a competitive producer in regional and world markets.
10. The nation’s population constitute a huge domestic market for modern
consumer goods. Policies encouraging efforts mean a demand for imports
of intermediate goods, high tech machinery, and raw materials.
BUSINESS IDEAS
in the PHILIPPINES
 Home-Based Costume Rental
Palamig Business Shop

Php 150 – Php 5000

3,000
 Cellphone Loading Cake and Pastry
Business Business

Php 2,000-3,000 Php 40,000+

 Bills Payment Online Buy and Sell
Business Business

Php 5k – 45k Php 10K – 20K

 Piso WiFi Online Buy and Sell
Vending Machine Business

Php 5k – 45k Php 20K

 Photo Booth
Vlogging Rental

Php 20K – 30K+ Php 70K –

100K
 T-Shirt Printing Water Refilling
Business Station

Php 105k – 200k Php 100k – 300k

Food Cart Php 50K – 300K
Franchise
The Golden Rule for every
Businessman is this:
“Put Yourself in your
Customer’s Place”
THANK YOU
LESSON #02
THC10 – Entrepreneurship in Tourism & Hospitality