CHAPTER 2

• OVERVIEW OF ENTREPRENEURSHIP IN THE PHILIPPINES

• HOW ENTREPRENEURSHIP DEVELOP THE COUNTRY
• GOVERNMENT AGENCIES RELATED TO ENTREPRENEURSHIP IN THE COUNTRY
• FILIPINO VALUES IN BUSINESS
• DIFFERENT BUSINESS THAT ARE IN DEMAND IN THE PHILIPPINES
HOW ARE SMALL ENTERPRISE DEFINED AND
CATEGORIZED
CLASSIFICATION BY ASSET
Category Asset Size
Micro P 150, 000 and below
Small Above P1.5 million to P15 million
Medium Above P15 million to P60 million
Large Above P60 million
 CLASSIFICATION BY EMPLOYMENT
Category No. of Employees
Micro 1-4
Small 10 – 99
Medium 100 – 199
Large 200 and over
 BROAD POLICIES AND LAWS FOR SUPPORTING
SMALL ENTERPRISE

LAWS AND BASIC FOR SMALL ENTERPRISE

• MAGNA CARTA FOR SMALL ENTERPRISES
R.A. 6977 OR THE MAGNA CARTA FOR SMALL ENTERPRISES WAS PASSED
BY THE PHILIPPINE CONGRESS IN 1991 IN ORDER TO NURTURE THE “GROWING
FILIPINO ENTREPRENEURIAL SPIRIT “ BY PROVIDING A CLIMATE THAT MINIMIZES
REGULATIONS WHILE AT THE SAME TIME ASSURING STABLE OPERATING RULES.
SPECIFICALLY, IT PROVIDED FOR THE CREATION OF A SMALL AND MEDIUM
ENTERPRISES DEVELOPMENT COUNCIL AND A SMALL BUSINESS GUARANTEE
AND FINANCE CORPORATION.
 R.A. 7882 AN ACT ASSISTANCE TO WOMEN
• THIS PARTICULAR LEGISLATION RECOGNIZES THE SPECIAL ROLE
OF WOMEN IN DEVELOPMENT AND SUPPORTS WOMEN
ENTREPRENEURS WHO ARE ENGAGED IN MANUFACTURING,
PROCESSING, SERVICE AND TRADING BUSINESS.
 FAIR TRADE LAWS

• THESE LAWS DEFINE OPERATING BOUNDARIES WITHIN WHICH

BUSINESS CAN CARRY OUT THEIR AFFAIRS WHILE AT THE SAME
TIME PROTECTING THE INTEREST OF CONSUMERS. IN EFFECT
THESE LAWS ALLOW BUSINESSES TO DO WHAT THEY LIKE, BUT
THERE ARE RESTRICTIONS. THE GOVERNMENT CAN CLOSE THE
FIRMS DOWN WHEN IT IS PROVEN THAT HARMFUL IS BEING
DONE TO PUBLIC.
 BUSINESS NAME REGISTRATION

• RA 3883 PROTECTS AN ENTERPRISE GUARANTEEING EXCLUSIVE

USE OF ITS REGISTERED NAME AND THE GOODWILL AND
PATRONAGE THAT IT REPRESENTS.
 EXECUTIVE ORDER NO. 226 OMNIBUS
INVESTMENT CODE

• THIS REGULATION WELCOMES PRIVATE INVESTMENTS WHETHER

LOCAL OR FOREIGN INTO THE PHILIPPINE ECONOMY. FISCAL AND
OTHER FORMS OF INCENTIVES ARE GIVEN ECONOMICALLY
DESIRABLE PROJECTS WHICH ARE LISTED IN THE ANNUAL
INVESTMENT PRIORITIES PLAN.
 EXECUTIVE ORDER NOS. 264 AND 288 TARIFF
REFORM MEASURES
• THE LOWERING OF TARIFF IS EXPECTED TO ENCOURAGE
TECHNOLOGY INNOVATIONS AMONG SME’S BY LOWERING THE
COST OF IMPORTED EQUIPMENT.
 DECENTRALIZATION/LOCALIZATION
• THE GOVERNMENT IS NOW MOVING TOWARDS
DECENTRALIZATION OF SERVICES TO THE REGIONS AND
INCREASING PARTICIPATION OF LOCAL GOVERNMENT IN
CRUCIAL ACTIVITIES. THIS MEANS THAT YOU DON’T HAVE TO
COME TO MANILA TO FINALIZE YOUR TRANSACTION WITH
GOVERNMENT OFFICES, AS THERE ARE ALREADY BRANCHES IN
THE REGIONS THAT CAN ATTEND TO YOUR NEEDS.
 FAIR TRADE LAWS
• THESE LAWS DEFINE OPERATING BOUNDARIES WITHIN WHICH
BUSINESS CAN CARRY OUT THEIR AFFAIRS WHILE AT THE SAME
TIME PROTECTING THE INTEREST OF CONSUMERS. IN EFFECT
THESE LAWS ALLOW BUSINESS TO DO WHAT TO DO WHAT THEY
LIKE, BUT THERE ARE RESTRICTIONS, LIKE HARMFUL
INGREDIENTS, POLLUTANTS, CHEATING.
 BUSINESS NAME REGISTRATION

R.A. 3883 PROTECTS AN ENTERPRISE GUARANTEEING EXCLUSIVE USE OF ITS

REGISTERED NAME AND THE GOODWILL AND PATRONAGE THAT IT
REPRESENTS. WITH THE DEPARTMENT OF TRADE AND INDUSTRY (DTI). YOUR
GOOD NAME IS PROTECTED BECAUSE DTI HAS NOW COMPUTERIZED THEIR
PROCESSING AND STORAGE OF DATA SO THAT NO DUPLICATION OCCURS AND
THEY CAN PROVIDE YOU WITH THE INFORMATION FASTER. YOU CAN TAKE THE
"COPYCATS" TO COURT NOBODY CAN COPY YOUR BUSINESS NAME ONCE IT IS
REGISTERED
 RETAIL TRADE ACT OF 1954

• THIS LAW RESERVES THE BUSINESS OF DIRECT SELLING TO THE

ULTIMATE CONSUMER TO 100% FILIPINO OWNERS. IN OTHER
WORDS, ONLY FILIPINO CITIZENS CAN ENGAGE IN THE RETAIL
BUSINESS. HOWEVER, THERE IS A PENDING BILL IN CONGRESS
TO ALLOW FOREIGN INVESTORS TO GO INTO THE RETAIL TRADE.
 EXECUTIVE ORDER NO. 226 OMNIBUS
INVESTMENT CODE

• THIS REGULATION WELCOMES PRIVATE INVESTMENTS WHETHER

FOREIGN INTO THE PHILIPPINE ECONOMY INCENTIVES ARE
GIVEN TO ECONOMICALLY DESIRABLE PROJECT IN THE ANNUAL
INVESTMENT PRIORITIES PLAN.
 POSITIVE VALUES OF A FILIPINO
ENTREPRENEURS
• PAKIKIPAGKAPWA TAO
• THERE ARE MANY WAYS IN MAKING OUR CULTURAL VALUES FAVORABLE TO
ENTREPRENEURSHIP CONCERN OF “HIYA” (LOSS OF FACE), PAKIKISAMA
(TOGETHERNESS), PAKIKIBAGAY (ADJUSTING AND ADOPTING TO OTHER
PEOPLE) MALASAKIT ( CONCERN) “UTANG NA LOOB” (DEBT OF GRATITUDE)
AMOR PROPIO ( SELF ESTEEM) AND BAYANIHAN (COOPERATIVE SPIRIT) THESE
VALUES ARE FAVORABLE TO ENTREPRENEURSHIP BECAUSE IT IS AGAINST
ANY FORM OF EXPLOITATION OF ANOTHER.
• BAHALA NA
• BY NATURE FILIPINOS ARE MALAKAS ANG LOOB (STRONG HEARTED
AND NOT TIMID). THE FACT IS THAT MANY OF US PURSUE OUR PLANS
AND PROJECTS EVEN IF WE ARE NOT SURE OF FUTURE
DEVELOPMENTS OR EVENTS THAT MAY AFFECT THEIR
ACCOMPLISHMENT.
• PAKIKIPAGSAPALARAN
• THE SAYING “ ANG TAONG TALAGANG DUWAG, TOMAKTAKBO’T
WALANG SUGAT”, SHOWS THAT WE AS A PEOPLE DO NOT CONSIDER
IT HONORABLE TO SURRENDER BEFORE UNCERTAINTY OR
CHALLENGE. WE ARE VERY QUICK TO ADJUST TO NEW AND STRANGE
SITUATIONS. IT IS NOT SURPRISING WHY THERE IS PLENTY OF
MOBILITY AMONG OF COUNTRYMEN; AND IT IS NOT UNUSUAL TO FIND
INTER-PROVINCE MIGRATION AS PRECIPITATED BY THE LOVE FOR “
PAKIKIPAGSAPALARAN” (ADVENTURE) THAT IS RISK TAKING.
 GAYA-GAYA

• OUR ABILITY TO LEARN AND ADAPT NEW WAYS OF DOING THINGS MAY ALSO
BE SEEN IN OUR TALENT FOR GAYA-GAYA OR IMITATION. OF COURSE AS ONE
MATURES IN AN ENTREPRENEURIAL CAREER, THE HABIT OF GAYA-GAYA CAN
BACKFIRE BECAUSE ONE REALLY HAS TO BE MORE CREATIVE AND
INNOVATIVE TO MAKE ONE’S PRODUCTS AND SERVICES MORE APPEALING
BUSINESS IDEAS IN THE PHILIPPINES

COMPUTER SOFTWARE AND SERVICES

THE PHILIPPINES CURRENTLY DOES NOT POSSESS THE CAPACITY TO
COMPETITIVELY MANUFACTURE COMPUTER HARDWARE. THERE IS, HOWEVER, A
GREAT DEAL OF INVESTMENT THAT GOES INTO SOFTWARE DEVELOPMENT,
HARDWARE ASSEMBLY, NETWORK SERVICES, AND COMPUTER SERVICES. WITH
THE INFLUX OF TECHNOLOGICAL AND COMPUTER SCHOOLS PLUS THE
TECHNOLOGICAL ADVANCES IN COMMUNICATIONS, THERE IS A SURE MARKET
FOR THIS BUSINESS. THIS DOES NOT REQUIRE A LARGE SPACE. IF YOU HAVE A
SPACE WHERE YOU CAN PLACE COMPUTERS, PRINTERS, FAX MACHINES, PHONE
LINES, INTERNET CONNECTIONS, AND COPYING MACHINE, ADD IN SOME PENS,
PAPERS AND OFFICE SUPPLIES, YOU MAY HAVE THIS BUSINESS.
ROOMS FOR RENT/INNS/LODGING

CONVERT YOUR EXTRA SPACE INTO MONEY BY LETTING SOMEONE

RENT A ROOM. THIS IS ESPECIALLY PROFITABLE IF YOUR LOCATION
IS IN THE VICINITY OF TOURIST SPOTS AND SCHOOLS. TRAVELERS
ALWAYS LOOK FOR A PLACE TO STAY THAT HAS A "HOMEY"
AMBIANCE AND OF COURSE, HAS AN AFFORDABLE PRICE
ADDITIONAL REVENUE IS ADDED IF YOU CAN PROVIDE FOOD.
 LOCKERS FOR RENT

SCHOOLS MAKE MONEY BY PUTTING UP LOCKERS AND LETTING

STUDENT USE IT FOR A FEE. IF YOU HAVE A BIG GARAGE OR AN
IDLE LAND, WHY NOT APPLY THIS CONCEPT. PUT UP LOCKERS AND
LET SOMEBODY RENT IT. MANY PEOPLE LOOK FOR PLACES WHERE
THEY COULD STORE THEIR MATERIALS.
ONE-STOP APPLIANCE REPAIR SHOP
(REFRIGERATOR, AIR CONDITIONER, RADIO,
TELEVISION, ETC. REPAIR SERVICE)
THERE ARE A LOT OF PEOPLE WHO TOOK UP VOCATIONAL
EDUCATION. THERE ARE TECHNICAL TRAININGS AND SEMINARS
GIVEN BY VOCATIONAL SCHOOLS NATIONWIDE. YOU CAN EMPLOY
GRADUATES WITH THESE TRAININGS OR YOU YOURSELF MAY
WANT TO TAKE UP THE TRAINING FOR A MORE PERSONALIZED
TOUCH.
 EVENT AND PARTY PLANNER

A LOT OF PEOPLE AVOID ORGANIZING PARTIES. OFTEN TIMES,

THEIR BUSY SCHEDULE DOES NOT ALLOW THEM TO FULLY
PREPARE FOR THE EVENT. IF YOU LIKE WORKING OUT DETAILS
AND KNOW WHERE TO GET THE REQUIRED STUFF LIKE
BALLOONS, DECORATIONS, CAKES, VENUES, ETC, THIS MIGHT BE
THE BUSINESS FOR YOU. PHONE LINES AND A FLEXIBLE
SCHEDULE ARE NEEDED.
 MEAT PROCESSING
FILIPINOS LOVE TO EAT. IN FACT, FOOD VENDORS CAN BE SEEN IN
ALMOST EVERY STREET. PROOCESSING MEAT GIVES AN ADDED
VALUE TO THE MEAT BEING SOLD IN THE MARKETS. YOU MAY BE
ABLE TO SUPPLY TOCINO, LONGGANISA, HAM, AND TAPA TO YOUR
NEIGHBORS, OFFICE MATES, CANTEENS, MARKET STALLS AND
EVEN TO THE STREET VENDORS. ASIDE FROM THOSE
PROCESSING MEAT GIVES AN ADDED VALUE TO THE MENTIONED
ABOVE, OTHER FAVORITES ARE PORK AND CHICKEN BARBEQUES,
DIMSUMS, HAMBURGER PATTIES, FISHBALLS, AND SQUIDBALLS.
 FOOD CARTS

THESE HAVE PROVED TO BE A' LUCRATIVE BUSINESS NOT ONLY IN

THE MALLS BUT ALSO ON THE STREETS. HAVE A FOOD CART
MADE (PREFERABLY MADE OF STAINLESS STEEL, OR LIKE THOSE
IN THE MALLS), THEN YOU MAY CHOOSE TO PUT IN VARIETIES OF
FOOD SUCH AS DONUTS, FLAVORED COFFEE. BOTTLED WATER OR
SOFT DRINKS, CANDIES, POTATO FRIES, PEANUTS, ETC.
 FRUIT AND FLAVORED DRINKS
THE PHILIPPINES IS BLESSED WITH DIFFERENT TROPICAL FRUITS
THAT CAN BE BLENDED INTO FRESH FRUIT JUICES. RECENTLY,
THERE HAS BEEN AN EMERGENCE OF OUTLETS AND FRANCHISES
THAT ARE MAKING MONEY IN SELLING FRUIT AND FLAVORED
JUICES. THE COMMON SAGO FOR ONE HAS BEEN ADDED AS A
TOUCH OF INNOVATION. THEY HAVE SUCCESSFULLY INNOVATED
THE CONCEPT OF FRUIT OR FLAVORED DRINKS AND SELL IT TO
THE PUBLIC BY PUTTING IT IN COLORFUL CONTAINERS AND THEN
SEALING IT. LF YOU CAN BE ABLE TO DUPLICATE THE TASTE OR
ACHIEVE OTHER FLAVORS, AND SELL IT FOR A MUCH LOWER
PRICE, THE BUSINESS MAY BE ABLE TO COMPETE.
 HOTDOG, BARBEQUE AND BURGER STAND

IF YOU HAVE A GOOD LOCATION THIS IS A GOOD BUSINESS. THIS

BUSINESS WILL "CLICK" IF IT IS LOCATED NEAR SCHOOLS,
FACTORIES, MARKETS AND OFFICES. IF YOU DO NOT HAVE
ENOUGH CAPITAL FOR A FRANCHISE STAND BUT BELIEVE THAT
THESE FOOD PRODUCTS WILL SELL, THEN THIS BUSINESS IS FOR
YOU.
 CAR WASH AND MINOR CAR REPAIRS
THIS IS A BUSINESS THAT HAS PROVED ITS INCOME GENERATING
CAPACITY ESPECIALLY IN MIDDLE CLASS COMMUNITIES. TRANSPORT
CABS AND JEEPNEY DRIVERS OFTEN HAVE THEIR VEHICLES
WASHED. A CAR OWNER WOULD GO TO THIS BUSINESS TO AVOID
HIGH CHARGES OF MAINTENANCE FOR SERVICE LIKE CHANGE OIL,
CAR CLEANING, CAR WAX AND OTHER MINOR CAR MAINTENANCE.
YOU MAY EVEN GO TO NEIGHBORS AND ASK IF THEY WANT THEIR
CAR MAINTAINED IF THEIR SCHEDULES ARE BUSY. THIS BUSINESS
DO NOT REQUIRE COMPLEX AND EXPENSIVE GADGETS.
 SIGNS AND SILKSCREEN PRINTING

EVERY BUSINESS, NEW OR OLD, NEED SIGNS TO PROMOTE.

BUSINESSMEN LOOK FOR STALLS LIKE THIS SO THAT THEIR IDEAS
MAY BE TRANSLATED INTO ARTISTIC FIGURES AND DRAWINGS
THAT AIM TO ATTRACT PEOPLE SILKSCREEN PAINTING ON THE
OTHER HAND IS GOOD BECAUSE THERE ARE A LOT OF
COMPANIES OR PEOPLE (ESPECIALLY DURING ELECTIONS) THAT
ORDERS SHIRTS, BAGS, CAPS ETC, TO BE PRINTED FOR
PROMOTIONAL PURPOSES
 FASHION ACCESSORIES
MEN AND WOMEN, ESPECIALLY THE YOUNG ONES, VISIT THESE
STALLS TO CHECK OUT THE LATEST IN FASHION ACCESSORIES. THEY
OFTEN BUY ACCESSORIES THAT LOOK SIMILAR TO WHAT THEIR
FAVORITE MODELS, ACTORS AND ACTRESSES WEAR AN ADDED
ATTRACTION TO THE VENTURE IS WHEN YOU CAN OFFER
CUSTOMIZED ACCESSORIES THAT WILL SUIT YOUR CUSTOMER'S
DESIRE. IF YOU KNOW WERE TO GET THE BEADS, BUTTONS,
BROOCHES, SUNGLASSES, HAIRCLIPS, UMBRELLAS, CAPS, HATS, AND
ANYTHING THAT IS FASHIONABLE, THIS BUSINESS IS WORTH A TRY.
 JUNK SHOP AND RECYCLING CENTER
SOME PEOPLE LOOK DOWN ON THIS BUSINESS BECAUSE IT IS MESSY.
BUT YOU WOULD BE SURPRISED ON HOW MUCH MONEY THE JUNKSHOP
OWNER GETS. SOME PEOPLE DO NOT REALIZE THAT SOME OF THE
THINGS THEY THROW AWAY CAN STILL BE USED AND MADE INTO
ANOTHER ITEM. COMPANIES IN THE MANUFACTURING INDUSTRIES GET
THEIR SUPPLY OF CONTAINERS SUCH AS GLASSES, BOTTLES AND
PLASTICS FROM THEM. EVEN MEDICINE BOTTLES, OLD NEWSPAPERS
AND METAL SCRAPS CAN BE FOUND IN THESE SHOPS. THE JUNK
MATERIALS OF OTHER PEOPLE MAYBE TRUE GEMS OF ANOTHER.
 RAISING PETS

THIS IS A GOOD BUSINESS FOR ANIMAL LOVERS. YOU HAVE A WIDE VARIETY OF
PET ANIMALS TO CHOOSE FROM. PRESENTLY, RAISING DOGS, BIRDS, FRESH
AND SALT-WATER FISHES, AND EVEN SNAKES AND REPTILES FETCH GOOD
MONEY. A PUPPY WITH A GOOD PEDIGREE CAN BE SOLD FOR THOUSAND
PESOS. IN FISHES, IF YOU ARE ABLE TO CATCH EXOTIC ONES AND INCREASE
THEIR SIZE, YOU CAN BE SURE OF SELLING THEM AT A HIGH PRICE, THE SAME
ALSO TRUE WITH BIRDS AND REPTILES. THIS BUSINESS CAN BE BOTH AND FUN
AT THE SAME TIME.