OBJECTIVES

 Trace the development of entrepreneurship

 Explain the entrepreneurial process
 Discuss the relevance of entrepreneurship in
economic growth and society
When did entrepreneurship started in
the Philippines?

What are the common enterprises in the

Philippines?
Brief History of Entrepreneurship in the Philippines.

Did you know that in the Philippines

 
Based on 2014 figures provided by the Philippine Statistics
Authority (PSA), there are 946,988 establishments in the
Philippines.
 
Of these, 99.6% (942,925) are micro, small, and medium
enterprises
(MSMEs) and the remaining 0.4% (4,063) are large enterprises.

Of the total number of MSMEs, 90.3% (851,756) are micro

enterprises, 9.3% (87,283) are small enterprises, and 0.4%
(3,886)are medium enterprises.
  11 Sectors of the Creative and Cultural
Industry (CCI)
Advertising and Architecture Performing Arts Books
Marketing Architectural firms Performing arts Physical and digital
Advertising agencies activities: books sales
dance, theatre, live (including scientific,
music, technical
opera, ballet, etc. and medical books)
Music Movie Newspapers & Gaming
Sound recording and Motion picture Magazines Video game publishers,
music production, post- Newspapers and developers and
publishing industry, production and magazine retailers;
live music distribution publishing industry equipment sales
Radio TV Visual Arts *Gastronomy
Radio broadcasting TV programming, Visual arts creation, Local dishes, fusion
activities production and museums, and
broadcasting including photographic and
innovative dishes in
cable and design
satellite activities restaurants
 Difference of Creative Industry and
Cultural Industry
 Cultural Industry is part of the bigger Creative
Industry
 Cultural Industry gives an importance to an inherent
identity to the product because
of the place of its origin and thus, the product has an
added “value”
 Creative Industry is set on an individual talent or skill
or process to create a product
and earn from it
 Artisanal Product

 Produced by artisans, either completely by hand, or

with the help of hand tools or even mechanical
means, as long as the direct manual contribution of
the artisan remains the most substantial component
of the finished product.

 These are produced without restriction in terms of

quantity
and using raw materials from sustainable resources.

 The special nature of artisanal products derives from

their
distinctive features, which can be utilitarian,
aesthetic,

 artistic,
creative, culturally attached, decorative,
functional,

 traditional, religiously and socially symbolic and

significant.
Example of Cultural Industry
The Cultural Industry is not
limited to the heritage but can
also be attributed to “popular
culture” as well as emerging
culture within the place.
Example of Creative Industry
 By definition, are industries which
have their origin in individual
creativity, skill
and talent and which have a
potential for wealth and job
creation.
WHAT IS COMMON ABOUT
THESE COMPANIES?
THEY ARE ALL OWNED BY
PEOPLE WHOCAME FROM RAGS
TO RICHES
WHY DOESTHE GOVERNMENT
FOCUSING ON PROMOTING
ENTREPRENEURSHIP?

ENTREPRENEURS MAKE A
COUNTRY RICH
DO FILIPINO CULTURE HAVE AN
EFFECTON BEING AN ENTREPRENEUR?
 STUDIES SHOW THAT INTEREST AND LATER DECISION TO
BE AN ENTREPRENEUR CAME ABOUT DUE TO A
COMBINATION OF SEVERAL FACTORS. THESE INCLUDES:

 THE CULTURE IN WHICH THE PERSON WAS BORN AND

RAISED;

 HIS SOCIAL FAMILY, EDUCATIONAL AND WORK

BACKGROUND; HIS PSYCHOLOGICAL TRAITS AND
QUALITIES; AND

 SUPPORT GIVEN BY THE GOVERNMENT AND OTHER

INSTITUTIONS.
PHILIPPINE CULTURAL VALUES
AND ENTREPRENEURSHIP
SOMETHING TO THINK ABOUT….

 OURCOUNTRY IS RICH NOT ONLY IN RESOURCES

BUT ALSO IN HUMAN

 GENERAL,
FILIPINO WORKING OVERSEAS TO BE
SUCCESSFUL, HARDWORKING

 WITHTHE ABILITY TO SPEAK ENGLISH WELL WITH

FELLOW WORKERS OF DIFFERENT NATIONALITIES
AND CULTURES.
SOME FOREIGNERS FILIPINOS TEND TO:
  BE LAZY, INDULGENT AND PRONE TO
TAKE THINGS EASY (SHADES OF JUAN IMAGE)
  AVOID TAKING RISKS (SEGURISTA,
LOOB)
  GO ALONG WITH WISHES OF THE GROUP
PERSONALLY, ONE WANTS TO DO(SOBRANG
MAKISAMA )
  BE OVER SENSITIVE TO CRITICISMS SO HE TENDS TO
STOP WHAT HE IS DOING WHEN HE DOES NOT MEET THE
APPROVAL OF OTHERS (BALAT- SIBUYAS)

  LACK PERSEVERANCE AND PERSISTENCE,

FILIPINOS TEND TO LOSE INTEREST AFTER
INITIAL BURST OF ENTHUSIASM (NINGAS- KUGON)
 BE FATALISTIC OR TO LET FATE DECIDE FOR
THE OUTCOME OF WHAT ONE DOES.

PUT ONE OVER EACH OTHER (GUSTOPABIDA)

WHICH IN TURN LEADS ONES COMPANION TO BE
ON TOP (UTAK ALIMANGO OR CRABMENTALITY)

 LACK ORIGINALITY AND CREATIVITY, AND

TENDS
TO IMITATE THE WORK OF OTHERS)GAYA-
GAYA)
 What do we do when we hear bad things being
said about us?

 Do we keep quiet and shrug or shoulders?

 Do we laugh in embarrassment but agree in

silence?

 Or worse, do we heartily admit what others say?

 FILIPINO VALUES FAVORABLE TO ENTREPRENEUR

• PAKIKIPAGKAPWA
- VALUES THAT PROMOTE THE IDEALS OF ENTREPRENEURSHIP

 ITS ABOUT HOW WE TREAT AND RELATE TO OTHERS. THIS

FILIPINO VALUE ENCOMPASSES OUR CONCERN FOR HIYA (LOSE
OF FACE),

 PAKIKISAMA (TOGETHERNESS OR COMPANIONSHIP),

 PAKIKIBAGAY (ADJUSTING OR ADAPTING TO OTHER PEOPLE)

 PAGMAMALASAKIT (CONCERN), UTANG NA LOOB (SENSE OF

GRATITUDE), AMOR PROPIO (SELF-ESTEEM) AND

 BAYANIHAN (COOPERATIVE SPIRIT)

 HOW ARE THAESE VALUES PROMOTE THE
IDEALS OF ENTREPRENEURSHIP?

 THE ROLE OF THE ENTREPRENEUR IS A

PRACTICAL TRANSLATION OF ONE’S
PAKIKIPAGKAPWA-TAO BECAUSE HIS MAIN
CONCERN IS TO PROVIDE THINGS AND SERVICES
THAT ARE VALUABLE TO OTHERS.

 THIS MEAN IF WE CULTIVATE THIS VALUE WELL,

WE WILL RUN OUR BUSINESS PROPERLY BY NOT
CHEATING OUR CUSTOMERS, MALTREATING
OUR WORKERS, COMPETE PROPERLY WITH HIS
COMPETITORS AND PAYS HIS TAXES PROPERLY.
 FILIPINO VALUES FAVORABLE TO ENTREPRENEURS

 MANY FILIPINO VALUES PROMOTE RISK TAKING OR LAKAS NG LOOB THESE

VALUES ARE:

 BAHALA NA - REALLY IMPLIES STRONG-HEARTEDNESS BECAUSE WHEN A PERSON

SAYS BAHALA NA IT MEANS HE ALREADY DID HIS PART AND PUTTING IT TO GOD’S
WILL (NASA TAO ANG GAWA, SA DIYOS ANG AWA) ;

 THIS BELIEF IS A UNIQUE FILIPINO ABILITY TO ACT AS NEEDED IMPARTS MORE OF

OPTIMISM THAN FATALISM

 GAYA-GAYA (COPY-CAT) - FILIPINOS ABILITY TO LEARN AND ADAPT NEWS WAYS OF

DOING THINGS MAY ALSO BE SEEN IN OUR TALENT OF IMITATION. THOUGH GAYA-
GAYA CAN BE BAD FOR THE BUSINESS LONG TIME, FILIPINO CREATIVITY AND

 INNOVATIVENESS WILL SOON OUTGROW THE INITIAL ENTRY POINT IN THE

BUSINESS TO CREATE A COMPETITIVE ADVANTAGE.

 THE SEGURISTAS IN US, MAKES US IMMITATE A TRIED AND TESTED BUSINESS

BECAUSE WE ARE CONFIDENT ENOUGH THAT IT WILL SUCCEED WITH OUR
(LAKAS NG LOOB )
 MANY FILIPINO
VALUES PROMOTE RISK TAKING
OR LAKAS NG LOOB THESE VALUES ARE:

 PAKIKIPAGSAPALARAN (SENSE OF ADVENTURE)

 CLOSE FAMILY TIES

 UTANGNA LOOB, HIYA, AMOR PROPIO, AWA,

BAYANIHAN
 KATAPATAN AS A VALUE PROMOTES ETHICAL BUSINESS PRACTICES
 FILIPINOS HAVE BEEN RAISED WITH STRONG SPIRITUAL VALUES
AND MORAL VALUES

 OUR VALUES PROMOTE HARMONIOUS LABOR-MANAGEMENT

RELATIONS.

 AS A MANAGER HE TENDS TO SHOW MALASAKIT (CONCERN),

DAMAYAN (MUTUAL HELP) AND SAMAHAN(CAMARADERIE);

 HE TRIES HARD TO BE MADALING MAKAGAAN NG LOOB (EASY TO

BE WITH) AND TO BE MAAWAIN (COMPASSIONATE) IN DEALING
WITH OTHERS.

 AS A WORKERHE TENDS TO BE MAGALANG (RESPECTFUL),

MALASAKIT, PAGTULONG (HELPFULNESS), PAGDAMAY (SYMPATHY)
AND PAGPUNO SA KAKULANGAN (UNDERSTANDING OF ONE’S
FAULT OR SHORT COMINGS AND
SOLIDARITY)
 
 THERE ARE TRADITIONAL FILIPINO TRAITS
THAT DRIVE US TO SUCCEED IN ENTERPRISE:
SIPAG(DILIGENCE), KATIPIRAN (FRUGALITY),
PAGKAMATIISIN (PATIENCE WITH ENDURANCE)
AND PAGTITIMPI (SELF-CONTROL)
 RATIONALE IN PROMOTING MICRO, SMALL AND MEDIUM
ENTERPRISE

THE GOVERNMENT HAS LONG RECOGNIZED THE IMPORTANCE OF

MSME IN IN THE ECONOMIC AND SOCIAL DEVELOPMENT OF A
COUNTRY. MSMES HAVE THEIR UNIQUE SET OF STRENGTHS AND
ADVANTAGES SUCH AS:

RELATIVE EASE IN SETTING-UP.
 EMPLOYMENT GENERATION
 FLEXIBILITY AND LOWER CAPITAL COST PER JOB CREATED
 PROVISION OF NICHE SERVICES THAT MAY NOT BE PROFITABLE
FOR LARGE BUSINESSES

 DISTRIBUTION OF INCOME
 UTILIZATION OF LOCAL RESOURCES
 EXPORT EARNINGS
 “SEEDBED “ FOR ENTREPRENEURS
 SOMETHINGTO THINK ABOUT…
MSME MAKES UP 99.6% IN THE TOTAL
ESTABLISHMENT IN THE PHILIPPINES; 70% OF
EMPLOYMENT
 DIFFERENTIATING THE MICRO, SMALL, AND MEDIUM
ENTERPRISE IN THE PHILIPPINES
MSME’S ARE DEFINED ON BASIS OF THEIR TOTAL ASSETS AND NUMBER
OF EMPLOYEES
The definition does not include classification by each sector (e.g.
manufacturing or commerce) or the type of enterprise.

CATERGOR TOTAL No. of

Y ASSETS Employees
Micro P 3,000,000 1-9
Enterprise or less
Small P 3,000,001 - 10 - 99
Enterprise 15,000,000
Medium P 15,000,001 - 100 -
Enterprise 100,000,000 199
MAJOR CHALLENGES AND ISSUES FOR PHILIPPINE MSMES
 COMPETITION IN EXPORT MARKETS AND INFLUX OF
MASS PRODUCED PRODUCTS AT CHEAPER PRICES

 EXISTENCE OF SMALL DOMESTIC MARKETS AND LIMITED

LOCAL MARKET

 NEED FOR IMPORTED PARTS AND MATERIALS AND

LIMITED INDUSTRIAL LINKAGES

 LACK OF BASIC MANAGEMENT TECHNIQUES

BARRIERS TO START-UP BUSINESS, LACK OF SUPPORT IN

THE AREAS OF FUND RAISING, RESEARCH AND
DEVELOPMENT
 LIMITED ECONOMIC ACTIVITIES AT THE LOCAL LEVEL
 LIMITATIONS AND WEAKNESSES OF MSMES

 OUTMODED, LESS PRODUCTIVE METHODS OF OPERATION

 INEFFICIENT USE OF APPROPRIATE TECHNOLOGY

 LIMITED ABILITY TO GAIN ECONOMIES OF SCALE

 INSUFFICIENT MANAGEMENT AND PROFESSIONAL KNOW-

HOW

 INSUFFICIENT AND INACCESSIBLE FINANCIAL SOURCES

 UNAPPRECIATED AND INADEQUATE PROFESSIONAL

SERVICES
 INSUFFICIENT INCENTIVES AND INABILITY TO MEET

REGULATORY PROCEDURES

 INSUFFICIENT ACCESS TO “RELEVANT AND

SIGNIFCANT”

INFORMATION

 LOW ACCESS TO CAPITAL

 LOW FIXED ASSETS AND PROFITABILITY

 INADEQUATE KNOWLEDGE OF MARKETS AND NARROW

ACCESS TO MARKETS
 What are the government agencies that help/assist
entrepreneurship in the Philippines?

5 Government SME Programs You Should Take

Advantage Of
 Negosyo Centers
 Small and Medium Enterprise Roving Academy
 KAPATID MENTOR ME Program
 Shared Service Facilities Program (SSF)
 Barangay Micro Business Enterprise.
 Negosyo Centers
 As a product of RA 10644, also known as The Go Negosyo Act,” the
of Negosyo Center allows the creation of more jobs by aiding the
boost of the growth of SMEs. With a goal to help you set up your
business, the Negosyo Center has three main services:
1. Business registration assistance
Applying for the necessary permits can be very confusing and tedious.
Visiting a Negosyo Center will help you ease the registration process so
that you can focus on the bigger picture of your business. 

2. Business advisory services

If you need guidance on how to run your business, you can always
consult with one of their specialists, who can then help you develop a
feasible business plan. 

3. Business information and advocacy 

For those who lack any prior knowledge on running a business, you’ll
have the opportunity to learn through seminars conducted by your local
Negosyo Center. 
Small and Medium Enterprise
Roving Academy
 
 It’s only natural that the number of seminars conducted by
Negosyo Center cannot satisfy the demand for it. To help the
discrepancy, it partnered with established agencies and
entrepreneurs to establish the SME Roving Academy. 
KAPATID MENTOR ME Program
 Initiatedby the Department of Trade and Industry (DTI),
the program aims to assist SMEs by education
entrepreneurs with the necessary skills to run a business. It
is a 12-week program that consists of 10 modules that
cover product development, marketing, operations
management, accounting, taxation, finance and obligations
and contracts. 
Shared Service Facilities Program
(SSF)
 Competition is an important factor in the growth of a
business. Sadly, the facilities and equipment that various
businesses need to stay ahead of the competition tend to be
costly. 

 So in order to give different SMEs a chance to go head-to-

head with other businesses, the Shared Service Facilities
program was launched. The SSF program provides businesses
all over the country the opportunity to borrow necessary
equipment, tools and resources in order to help increase their
productivity. 
Barangay Micro Business
Enterprise
 Signed into law in 2003, the Barangay Micro Business
Enterprise (BMBE) Law encourages the formation of such
through incentives and benefits. As an entrepreneur,
registering will grant you income tax exemption, exemption
of coverage from the minimum wage law, social security and
healthcare benefits, priority for a special credit window,
assistance programs and training and, through it depends on
the LGU, possibility of reduction in the amount of taxes,
fees and charges when setting up. 
Why do we consider Entrepreneurship
as a Catalyst for Change?
SSA# 1 in MS FORMS
Be ready with LSA#1 next Meeting.
Study the following:

Nature and Relevance of

Entrepreneurship

Concept of Entrepreneurship