Becoming an entrepreneur offers personal and professional freedom, including the chance to manage work-life balance and make decisions about a company's future. Running a business does come with risks, including those related to market and economic trends, finances and technology. Market uncertainty, financial risk, health risk, and no guaranteed returns are the risks associated with starting a business enterprise. There are many rewards of running a business; these include freedom, job satisfaction, and financial gains.

1. The Rewards and Risks of Being
an Entrepreneur
Week 2

12. ● 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
● Mostly Catholic religion
● In the typical Filipino environment, entrepreneurship is not so much encouraged at an early
age.
A glimpse of the Philippines

13. ●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
○Amor-Propio
○Delicadeza
○Mapahiya
A glimpse of the Philippines

14. ●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
A glimpse of the Philippines

15. GOVERNMENT AGENCIES
Involved in
ENTREPRENEURSHIP in the
PHILIPPINES

16. 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

17. 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).

18. 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.

19. 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).

21. 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.

22. 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.

23. 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.

24. 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.

25. 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.

28. ENTREPRENEURSHIP
In the PHILIPPINE SETTING

29. 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.

33. 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.
FILIPINO Values

34. TEN REASONS
for doing business
in the PHILIPPINES

35. 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

36. 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

37. 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
TOP REASONS

38. BUSINESS IDEAS
in the PHILIPPINES

39. Home-Based
Palamig Business
Costume Rental
Shop
Php 150 – 3,000 Php 5000

40. Cellphone Loading
Business
Cake and Pastry
Business
Php 2,000-3,000 Php 40,000+

41. Bills Payment
Business
Online Buy and Sell
Business
Php 5k – 45k Php 10K – 20K

42. Piso WiFi
Vending Machine
Online Buy and Sell
Business
Php 5k – 45k Php 20K

43. Vlogging Photo Booth
Rental
Php 20K – 30K+ Php 70K – 100K

44. T-Shirt Printing
Business
Water Refilling
Station
Php 105k – 200k Php 100k – 300k

45. Food Cart
Franchise
Php 50K – 300K

46. Filipino Values that
Deter
Entrepreneurship

47. 1. Traditional child-rearing practices
hinder the development of an
independent, Entrepreneurial spirit.
• Many parents still cling to the traditional,
authoritarian way of raising their children.
Young sons and daughters are discouraged
from taking initiative, exploring their
surroundings, and taking risks. In their
growing-up years, they are often protected,
kept safe and closely supervised.
• Authoritarian upbringing can dampen the
independent spirit among young. This is the
very spirit that carries the enterprising spark,

48. 2. Beliefs in the existence of all-powerful forces that
control a person's destiny may destroy, Entrepreneurial
initiatives.
• "Ang kapalaran ay di ko man hanapin,
dudulog at lalapit kung talagang akin“
• "Kung di ukol, di bubukol“
• "What is not destined to be, won't be“
• "It's not meant to be“
The real Entrepreneurs are those who take
responsibility for the outcome of their own
actions.

49. 3. Amor propio makes the Filipino
refuse to take full responsibility for his
action when he fails.
• Amor porpio (self-esteem or sense of pride)
• can have positive as well as negative effects
on our entrepreneurial drive.
• Amor porpio can inspire us to give our best in
any undertaking. On the other hand, it can
cause us to disown our failings.
• The success-driven entrepreneur likes to
review what he did wrong or what went
wrong so that he can do better the next time
around.

50. 4. The bahala na attitude, if not tempered by intelligent
judgement and planning, may lead to imprudent decision
making.
• There is danger that bahala na may be carried
to extremes. Some Entrepreneurship may be
misled to take up projects and plans on the
basis of bahala na rather than on a sound of
planning and analytical process. The result
may be disastrous to the business.

51. 5. Our family and relatives may be very supportive
group, but they can also do harm to the business
enterprise.
• Close family ties are a potent source of
support to the new Entrepreneur. At the same
time , the family can also be a problem, if we
don’t watch out. Family members and friends
expect to be given special treatment by the
Entrepreneur. They expect discounts,
unlimited credit, and employment. Since we
value their approval, it is difficult for us to
deny and disappoint them.
• The successful Entrepreneurs have to learned

52. 6. Colonial mentality impedes the
development of a self-reliant
entrepreneurship.
• "colonial mentality" is the opposite of
being nationalistic.
• A manifestation of this is the view that
anything imported--- especially those
coming from former colonizing
countries like America, Japan, England--
is always better than those "made in the
Philippines." This mentality springs from
lack of appreciation for what our

53. 7. Crab mentality is particularly
destructive to Entrepreneurship.
• Crab mentality (Kanya-kanya attitude)
• Kanya-kanya attitude leads people to think
only of personal or group interest.
• It will orient us towards cutthroat competition
where intriga and siraan (destructive criticism)
prevail. IN THE END EVERYBODY LOSSES.

54. The Golden Rule for every
Businessman is this:
“Put Yourself in your
Customer’s Place”

55. THANK YOU
LESSON #02
THC10 – Entrepreneurship in Tourism & Hospitality