CHAPTER III

ENTREPRENEURSHIP IN THE
PHILIPPINES AND
ENTREPRENEURIAL
VENTURES IN THE
PHILIPPINES

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 Outline of Presentation

The Philippines in a Southeast Asian Nations (ASEAN). It is classified

as a factor-driven economy-relying mainly on its natural resources in
generating income and economic activities for the country. However, as
more businesses are engaged in service, the country is expected to move
from a factor driven to an efficiency-driven economy. The Philippines
posted a GDP growth rate of 5.8% in 2015, down from its 2014 GDP
growth rate of 6.1%. For the period of 2012– 2015, the country reported
an average GDP growth rate of 5.9%. Fifty-seven percent (57%) of its
GDP is accounted for by the services sector. The inflation rate in 2015
was computed at 1.4%. On the other hand, the unemployment rate in the
country has been reduced from 8% in 2006 to 6.5% in 2015. The
Philippines’ economic and social indicators are presented.

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 Outline of Presentation

Ranked as the 2nd most populous country in

the ASEAN, the Philippines has 101.57 million
citizens, with an average population growth rate
of 1.9% for the period 2010–2015. Twenty-eight
percent (28%) of the population belongs to the
youth sector, aged 15–29 years old. The adult
literacy rate is 95.4%, whereas net enrollment in
primary education is 93.8%

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 Outline of Presentation

In 2015, foreign direct investment (FDI) went

down by 1.6%. Communication in the country is mostly
done through cellular phones with 118.1 cellular phones
per 100 persons, the third lowest in the ASEAN. The
country is a heavy internet user with 40.7% of the
population subscribing to the internet, the fourth highest
among the ASEAN economies. However, the country has
the slowest broadband and the most expensive internet
connection in the region.

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 Enablers and Constraints

The economic growth of the country in support of the

development plan, focusing on inclusive growth, has resulted
in the reduction of the poverty incidence for the last 10 years.
As can be seen in Table 5, poverty incidence rates among the
population and families have consistently reduced from 26.6%
and 21% in 2006 to 21.6% and 16.5% in 2015, respectively.
Employment figures also improved with the continuous
reduction in unemployment rate from 8.0% in 2006 to 6.5% in
2015.

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 Initiatives Supporting Entrepreneurship
Entrepreneurship is encouraged in the Philippines through the
activities of the different government departments, such as the Department
of Trade and Industry, the Department of Science and Technology, Bangko
Sentral ng Pilipinas and the Commission on Higher Education.
Entrepreneurship is offered as a formal degree program at both
bachelor and graduate levels (BS, MS, and PhD) aiming to provide formal
training to aspiring entrepreneurs. Financial institutions like banks are
required to set aside a certain percentage of their loan portfolio to the capital
requirements of small and medium sized businesses.
.

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Gender Perspective, New York , USA, 5-6 December 2013
 Initiatives Supporting Entrepreneurship

The Department of Trade and Industry, through the Bureau of

Small and Medium Enterprise Development, have programs that assist
SMEs in developing their entrepreneurial capabilities.
The technological needs of SMEs are also being addressed by the
Department of Science and Technology thanks to a program known as
the Small Enterprise Technology Upgrading Program (SETUP).
Partnerships between government, academia and industry are
implemented in developing technology-based entrepreneurship through
the business incubator and technology parks programs.

LVCastro /EDGE Technical Meeting on Measuring Entrepreneurship from a

NATIONAL STATISTICAL COORDINATION BOARD
Gender Perspective, New York , USA, 5-6 December 2013
 The economic growth of the country in support of the
development plan, focusing on inclusive growth, has resulted
in the reduction of the poverty incidence for the last 10 years.
As can be seen in Table 5, poverty incidence rates among the
population and families have consistently reduced from 26.6%
and 21% in 2006 to 21.6% and 16.5% in 2015, respectively.
Employment figures also improved with the continuous
reduction in unemployment rate from 8.0% in 2006 to 6.5% in
2015.

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 Challenges for the Future

The biggest challenge the country faces in promoting

entrepreneurship is to develop the capability and skills of
Filipinos in starting and growing businesses; furthermore, it
needs to promote innovation to increase penetration in both
domestic and global markets. All this has to be well supported
by the inclusion of entrepreneurship and management courses
in the formal education system as well as the teaching of
creativity and innovation among the youth.

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 Challenges for the Future

Capability building of entrepreneurs through

formal and informal training has to be more actively
pursued. The country must take advantage of new
developments in the basic education sector, and make
entrepreneurship a formal part of the curriculum; it
should also redesign tertiary education programs to
promote entrepreneurship as an alternative to
employment.

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 Eight Successful Filipino
Entrepreneurs Who Started
Small

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 Such are the stories of these eight
individuals, all of them successful Filipino
entrepreneurs. Equally visionary founders,
these men, and women followed a similar path:
they started small, took risks, and eventually
expanded their businesses.

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 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.

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LVCastro /EDGE Technical Meeting on Measuring Entrepreneurship from a
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 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.

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 3. 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.

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LVCastro /EDGE Technical Meeting on Measuring Entrepreneurship from a
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 4. Cresida Tueres – Greenwich Pizza
In 1971, Cresida Tueres started Greenwich as a small over-the-counter
pizza store in Greenhills. Tueres had a knack for cooking. Her friends loved
the food she served so much that they decided to buy their own Greenwich
franchise.
Impressed with Tueres’s business acumen and the growth of Greenwich,
Jollibee Foods Corporation obtained a deal in 1994 to acquire 80% of
Greenwich’s shareholding. Since then, the pizza parlor branched out to
include other dishes in its menu. In 1997, Greenwich had a record sale of P1
billion.

LVCastro /EDGE Technical Meeting on Measuring Entrepreneurship from a

NATIONAL STATISTICAL COORDINATION BOARD
Gender Perspective, New York , USA, 5-6 December 2013
LVCastro /EDGE Technical Meeting on Measuring Entrepreneurship from a
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Gender Perspective, New York , USA, 5-6 December 2013
 5. Milagros, Clarita, and Doris Leelin – Goldilocks
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.

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 6. Joe 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.

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 7. Asiang Reyes – The Aristocrat
In the 1930s, Asiang Reyes started The Aristocrat as a mobile canteen in
Luneta, serving sandwiches filled with adobo and other Filipino viands.
Hotdog trucks were in vogue at that time. Reyes created her own version of
merienda for park-goers.
Reyes was supposed to name the canteen “Andy” after her eldest son, but
changed it to Aristocrat instead. The canteen prospered, and Reyes and her
husband decided to turn it into a full-time restaurant.

LVCastro /EDGE Technical Meeting on Measuring Entrepreneurship from a

NATIONAL STATISTICAL COORDINATION BOARD
Gender Perspective, New York , USA, 5-6 December 2013
LVCastro /EDGE Technical Meeting on Measuring Entrepreneurship from a
NATIONAL STATISTICAL COORDINATION BOARD
Gender Perspective, New York , USA, 5-6 December 2013
LVCastro /EDGE Technical Meeting on Measuring Entrepreneurship from a
NATIONAL STATISTICAL COORDINATION BOARD
Gender Perspective, New York , USA, 5-6 December 2013
 7. Asiang Reyes – The Aristocrat
In the 1930s, Asiang Reyes started The Aristocrat as a mobile canteen in
Luneta, serving sandwiches filled with adobo and other Filipino viands.
Hotdog trucks were in vogue at that time. Reyes created her own version of
merienda for park-goers.
Reyes was supposed to name the canteen “Andy” after her eldest son, but
changed it to Aristocrat instead. The canteen prospered, and Reyes and her
husband decided to turn it into a full-time restaurant.

LVCastro /EDGE Technical Meeting on Measuring Entrepreneurship from a

NATIONAL STATISTICAL COORDINATION BOARD
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 8. Araceli and Jun Manas – Hen Lin
Using the recipes they learned from a Chinese chef and a capital of
P30,000, Araceli and Jun Manas started Hen Lin in 1983. Jun worked for an
insurance firm while his wife Araceli worked in a bank. The couple had to
learn the intricacies of the business themselves. At night, they practiced
making siomai or dumplings.
The Manas couple opened the first Hen Lin store in SM Makati, which was
well received for its delicious dim sum offerings. 30 years on, Hen Lin is
popular in many malls, offering various products such as hopia, noodles,
congee, rice toppings, and breakfast food.

LVCastro /EDGE Technical Meeting on Measuring Entrepreneurship from a

NATIONAL STATISTICAL COORDINATION BOARD
Gender Perspective, New York , USA, 5-6 December 2013
LVCastro /EDGE Technical Meeting on Measuring Entrepreneurship from a
NATIONAL STATISTICAL COORDINATION BOARD
Gender Perspective, New York , USA, 5-6 December 2013
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 Mabuhay and Thank you!
URL: http://www.nscb.gov.ph

LVCastro /EDGE Technical Meeting on Measuring Entrepreneurship from a

NATIONAL STATISTICAL COORDINATION BOARD
Gender Perspective, New York , USA, 5-6 December 2013