PINOY BUSINESS COACH

A call to upgrade Philippine business education

2014-12-02T17:04:00.000+08:00

With the advent of a strong economy, comes a new challenge to strengthen business education about business and real estate professionals. Click here for insights into the Philippine real estate market.

MANILA, Philippines - The Philippine Council of Deans and Educators in Business (PCDEB) is holding its 14th Annual Convention and the 8th Business Education Industry Summit in February, to further enhance the delivery of quality business education in the Philippines and to strengthen it in line with the upcoming ASEAN Integration in 2015.

The forum, with the theme “Global Alignment of Business Education towards ASEAN Economic Integration,” will serve as an annual meeting of school officials, deans, business educators, and industry partners.
It will be held on Feb. 19-20, 2015 at Hotel Jen (formerly Traders Hotel Manila), Roxas Blvd. Manila, Philippines.

Dr. Eduardo “E.G.” Ong, known as the “Father of Philippine Real Estate,” will be speaking during the convention. He will discuss several issues in the academe and the real estate industry in the Philippines to shed light on the questions on the looming integration of the economies of Southeast Asian nations next year.

Dr. Ong once topped the Real Estate consultancy examination and the Real Estate brokers examination administered by the Department of Trade and Industry.
Currently, Dr. Ong serves as the head of the board of directors of the PCDEB. He was also appointed by President Aquino as the first chairman of the Professional Regulatory Board of Real Estate Service.

He also wore different hats in the leadership of the Philippine Chamber of Commerce and Industry, the largest business group in the Philippines.

Aside from him, other speakers will be discussing key issues in the business education front during the forum. Topics include: Preparing the Youth for Regional Leadership Towards Asean 2015, Increasing People Competitiveness for ASEAN Integration, and Ensuring Philippine Readiness for ASEAN 2015 Through Greater Regional Integration, among others.

The convention will also serve as an avenue for the induction of new members of the PCDEB and the election of its new officers.

The PCDEB is a professional organization of deans, directors, chairpersons, administrators, and professors teaching business courses such as Accountancy, Business Administration, Marketing, Economics, Travel and Hotel Management, Entrepreneurship, Commerce, Management, and Office Administration in various colleges and universities nationwide.

Since its inception 12 years ago, the group has been organizing regional associations and sponsoring fora, seminars, and conventions in Manila and in different regions for the professional growth of members and business students.
It also aims to bridge the gap between education and employment and attain inclusive growth for the country.

For inquiries, call PCDEB secretariat at (632) 6970943, 6970962, 9869954; 09274790273, 09369765547, 09153920815; or email at mediablitzgroup.pcdeb2015@yahoo.com or visit www.pcdeb.org.

Change your passwords NOW: Heartbleed Internet Bug

2014-04-12T15:34:00.000+08:00

Click the poster to learn more about the Heartbleed Internet Bug!
Photo courtesy: http://500px.com/photo/33632281

Chamber of Thrift banks take on SME sector enabler role

2014-02-19T00:39:00.000+08:00

The Chamber of Thrift Banks (CTB) is taking active steps to help the small medium enterprise (SMEs) realize the benefits of a financially integrated Asean economic community (AEC) in 2015.

CTB President Jose Teodoro K. Limcaoco, also the president of BPI Family Savings Bank, said.

CTB is holding a convention that focuses on preparing thrift banks and their SMEs customers for the anticipated economic integration of the region beginning 2015.

“Our customers will be challenged by the opening up of trade. Therefore, we want to make sure that our customers, particularly SMEs, are prepared for it and the thrift banks are prepared for it as well,” he said.

The Asean framework for equitable economic development, intended to narrow the development gaps in the region, was seen leading to eventual financial inclusion.

“We will make sure our SME companies are better financed and that they know how to compete. Whether they build up their business locally, look for opportunities outside or look for partners. It’s a concern for our clients,” Limcaoco added. He said thrift banks need to fill up technology and focus on the local market SMEs and consumers.

He also said the market is “large enough for other savings bank to be in” and that “every savings bank has a niche to fill.”

“The year 2014 will be a challenging year for thrift banks because of the competition from commercial banks,” he acknowledged.

** Methinks that the government is still not doing enough to assist Small to Medium Enterprises have access to expansion capital. Comparing with other Asian countries, the Philippines is lagging behind in terms of extending financial assistance in the form of capital access, low interest loans and other financial interventions that can help a fledging business grow and be more prepared to cope with the coming Asean integration.

Intriguing Cedric Lee

2014-02-19T00:34:00.000+08:00

By now, the case with Vhong Navarro and the mauling case he had been involved in has still not gone to a close and is going to a rather ugly legal battle. Who is this mysterious Cedric Lee and where did he emerge from.

An article from the Inquirer is quoted as saying:

"In his LinkedIn, an exclusive social networking site for professionals, Lee is a contractor by occupation.

He is the Board Chairman and Company President of Izumo Contractors, which built the Davao del Sur Cultural Sports Business Center, the Maasin City Integrated Market Complex.

According to his LinkedIn profile, the Izumo Contractors has its office in Robinsons Galleria Corporate Center.

Lee also posted several of his architectural projects in the social networking site Pinterest.

The alleged Navarro-Bunevacz attacker is also the managing director of Colossal Mining Corporation, the biggest iron and sand concessionaire in the Philippines, which in 2004 had tenements totaling 40,000 hectares.

Lee is also the chairman and president of Phil-Asia Dredging and Reclamation Corporation, which is on a two-year contract to conduct dredging operations on the Cagayan River.

Another of Lee’s companies, Waste Management Incorporated, is in contract with the provincial government of Cebu that would manage the province’s landfill.

Lee has a Bachelor’s degree on Business Management from the De La Salle University, his profile said."

While another local paper described him as follows:

" Philippine Retired police generals – including one implicated in the P34-million helicopter purchase scam – are among the partners of controversial businessman Cedric Lee in his almost 20 business ventures, Securities and Exchange Commission (SEC) records show.

Most of the companies in which Lee is stockholder, board member, or incorporator have also turned out to be non-compliant with SEC’s reportorial requirements. Only three of the companies have complied with the reporting requirements of the corporate watchdog."

Whoever this guy is, he sure has friends in high places.

PHL Investment Level detoriorating

2013-09-22T01:12:00.000+08:00

By : JUN B. VALLACERA, click here for original article.

Investment activities in the Philippines as percent of local output or gross domestic product (GDP) have fallen sharply lower to only around 20 percent of GDP the past decade from some 30 percent of GDP in the 1970s, the Manila unit of the World Bank reported on Friday.

The deteriorating level of investments is one of a number of problems hounding the economy that has kept productivity low in the agricultural sector and the local manufacturing sector rather weak, for instance.

These developments, in turn, helped perpetuate the high 26.5-percent incidence of poverty in the country and partly explains why about a third of middle-income Filipinos would rather work abroad or migrate to other countries altogether, the World Bank said in its 2013 Philippine Development Report released only on Friday.

According to the World Bank, 60 years of underinvestments contributed to the slow growth of agriculture, whose potential contribution to overall economic expansion cannot be underestimated.

Agriculture in the Philippines is backward-looking and unproductive, while its manufacturing sector is stagnant and offers few job opportunities for Filipinos, the World Bank said.

“Although the country’s average growth record of 4.1 percent in the last three decades is comparable to global performance, it is considerably lower than the 6.5-percent growth of its more dynamic East Asian peers over the same period. In per-capita terms, Philippine growth is much lower at around 1.4 percent, given its historically higher population growth rate of 2.7 percent. While there have been a few growth spurts, the country has rarely been able to sustain growth at above 5 percent for an extended period, again in contrast to its neighbors,” the World Bank said.

Karl Kendrick Chua, senior country economist at the World Bank in Manila, said the Philippines has a long way to catch up with Malaysia, for instance, whose above 7-percent growth had been going on for maybe 20 or 30 years.

He said that while Manila typically attracts $2 billion worth of foreign direct investments (FDI) in a year, its neighbors have no trouble attracting 10 times more FDI.

It was noted the Philippines posted high growth rates in the 1970 as a result of large-scale growth in infrastructure, although this was not sustainable as such growth was debt-driven and best illustrated by the debt crisis in the 1980s.

Growth accelerated in the 1990s, when the government promoted exports, FDI and domestic competition, but was stymied by the 1997 region-wide financial crisis and brought the country to its third recession in 15 years.

“Finally, between 2003 and 2012, the country generated higher per-capita growth of above 3 percent; however, this has yet to translate into significant job creation and poverty reduction. Growth has largely benefited the top 20 percent of Filipinos,” the World Bank said.

The World Bank blames persistent policy distortions and lack of structural transformation as explanation for the slow growth of agriculture and manufacturing the past 60 years.

“In agriculture, these include protectionist policies, such as the rice self-sufficiency policy, large subsidies for inputs and distortions in institutions that prevent broad and secure access to land by small shareholders,” it said.

It also said protectionist policies in place as far back as the 1930s, such as high tariff walls, preferential loans and tax incentives to cronies in addition to uncompetitive practices in the various manufacturing industries contributed to the decline of the sector.

“With the exception of food manufacturing and electronics, the rest of the manufacturing subsectors either stagnated or declined. The bulk of manufacturing value added has come from capital-intensive industries such as electronics, while labor-intensive manufacturing such as garments, footwear and furniture continued to decline,” the World Bank said.

In the same Philippine Development Report, the World Bank highlighted the need for the government to accelerate inclusive growth and the creation of jobs to help reduce the poverty incidence and sustain growth for the long haul.

This developed even as an additional 1.15 million enter the labor force every year, or 14.6 million more in the next four years.

According to the World Bank, only one of four Filipino jobseekers eventually gets a job and only around half of some 500,000 graduates every year are absorbed; the other half will find work overseas.

It said more recent high-growth outturns help employ some of the jobless but even then, an estimated 12.4 million will have been jobless by 2016.

“Addressing this jobs challenge requires meeting a dual challenge: expanding the formal-sector employment even faster while rapidly raising the incomes of those informally employed,” the World Bank said.

Note: We made special mention of the Philippines being "Investment Grade" in this article.

Investment grade simply put is that the business climate in the Philippines is getting better for foreign companies to set up shop. Financial Times has a more concise definition, click here.

Major revamps in government laws supporting MSMEs, infrastructure spending and other essential housekeeping needs to be done.

Father builds successful business with Php 5,000 capital

2013-09-15T00:56:00.001+08:00

repost FROM THIS ORIGINAL ARTICLE

Cagayan de Oro City—His sweat drips from his forehead down to the ground as he thoughtfully adds firewood for his boiling pot of water. His skin is reddened and wrinkled by the toil of long days and nights; and his hands, hardened and calloused with years of labor.

Joel Obsid, a father of four, is accustomed to this environment. At 46 years old, Joel once worked as a medical representative. His wife is a 45-year-old office clerk, and her wage can barely support the family’s basic needs. Three of their children still live with them, all of whom are school-aged.

Total recall

In November 2011 Joel recalls Tropical Storm Sendong struck and took from him everything it could. He lost his job and his home. His wife and children were spared, but there was nothing for them to return to.

Having no secured income but with a family to tend to, Joel urgently needed to find a new job, which was hard to come by after the storm. This prompted him to start a small hanging-rice business. A trade he learned from his mother-in-law that seemed to be his only option at the time. Still, his biggest concern was his lack of financial capital.

With the three younger children still in school and their home in shambles, there was no money left to build a business. However, what seemed to be one unfortunate event after another took a turn for the better.

Second chances

In February 2012 Joel received a P5,000 loan from the Department of Social Welfare and Development (DSWD), through the Sustainable Livelihood Program. Joel also continues to receive financial-literacy and skills-enhancement trainings from the DSWD through the program. Furthermore, his family also received a housing unit from the DSWD’s partner-organization, Habitat for Humanity.

Less than a year after Sendong wreaked havoc, Joel’s family was able to relocate to a new home in Barangay Canitoan, still within the city. Not only that, but he was finally able to start his hanging- rice business, which he hoped would help them become financially stable.

Sustainable livelihood program

Every piece of hanging rice begins from a carefully woven coconut leaf. After which, uncooked rice or bigas is poured into the woven pocket, and then boiled until the rice is cooked. It is hung when sold, thus the name hanging rice.

Joel’s family is one of the 237,501 poor households assisted by the Sustainable Livelihood Program. Under the program, participants are provided with capital assistance for starting and managing microenterprises or are provided with employment opportunities through partnerships with other institutions both private and public.

Qualified participants are assessed based on their financial and social performance to identify the requirements of an enterprise for business growth. Appropriate training activities and other follow-through interventions are continuously provided for the participants to improve their existing microenterprise.

Regaining every fiber of hope

Today, Joel runs the hanging-rice business in the Cogon public market with the assistance of his children. Consuming one-and-a-half sacks of sinandomeng rice daily, Joel’s business has gained a following and earns a daily net profit of more than P1,000.

He is uncertain if he will find another job. He would not dare leave his loyal customers. He hopes that the business will allow him to send his children to school until they finish college. After all, the business has taken his family from ground zero and into life anew.

In Photo: Joel Obsid makes 2,000 to 3,000 pieces of hanging rice a day and sells them at the market for P3 each.

Now if you think that you need large sums of capital to start that entrepreneurial dream then you must see that other forms of capital like know-how, emotional intelligence, financial literacy and other vital skills are needed to make a business work.

Filipinos as money ‘experts’: Clueless on bonds, stocks, loans

2013-08-01T23:21:00.000+08:00

4:47 am | Friday, June 28th, 2013

"I understand small business coach, I was one." - George W. Bush

While taking my newspaper e-session the other evening I came across this article. What fancied me about all of these words was the study made on what our Filipino workers are prioritizing. Read on and see why this blog makes a lot of sense to read and why investing in a business is a great option, only when the entrepreneur gets educated and coached. In as simplified manner, coaching is defined here. Read on and enjoy!

MANILA, Philippines—One out of every five Filipinos from the middle to upper income groups claims to be an “expert” in money matters. But a global insurance giant recently found that members of these classes perform poorly in a basic financial literacy quiz.

Sun Life of Canada’s latest annual study of lifestyles, attitudes and relationships (Solar) showed that Filipinos were typically confident about how they manage their finances, with 20 percent considering themselves an “expert” and sometimes even a “specialist.”

However, test scores from the financial literacy quiz given to a group of respondents showed that only 8 percent got a score of more than 80 percent.

The median score was 50 percent, nowhere near the “passing” mark.

Nobody among the respondents scored more than 90 percent, said the research report that Mylene Lopa, Sun Life Financial Philippines chief marketing officer, presented to the media on Thursday.

The study was based on a sample of 1,100 respondents from the Classes A, B and C across the country with a monthly household income of P30,000 and above.

The respondents were between 23 and 55 years of age and were interviewed face to face in the first quarter of the year.

A 16-question financial literacy quiz was introduced this year to measure the level of awareness and knowledge of basic financial concepts and products, and the capacity to apply such concepts.

Paradox
The wide gap between Filipinos’ self-perception and actual financial literacy level is cited by Sun Life as the paradox of financial literacy.

When respondents were asked how they defined financial security, the top answer was “having enough bank savings.” Eight out of 10 Filipinos were relying on bank savings, overlooking other options such as life insurance and investments, the research report said.

“Putting one’s savings in a bank account remains prevalent and such an approach reveals how Filipinos prepare or underprepare for tomorrow. One’s money is intact in a bank account but with so little growth, or even negative real growth, there is doubt if it can ensure one’s financial security,” the report said.

Eye-opener
Since the Solar study was launched five years ago, it has been an “eye-opener” for Sun Life on designing its financial literacy program, said Sun Life Financial Philippines president Riza Mantaring at a briefing that presented 2013 results.

“The report showed us many interesting insights. For instance, Filipinos seem confident in their knowledge of money matters but in fact, lack knowledge of basic financial concepts and how to properly prepare for their future needs. These findings strengthened Sun Life’s resolve to continue, expand and enhance its financial literacy campaign,” Mantaring said.

Optimistic people
The study found that Filipinos were an optimistic people. Asked how they expected their financial situation to change in the next three to five years, 87 percent expressed a positive outlook.

The report said this optimistic outlook was a probable outcome of the robust macroeconomic backdrop. “The Philippines is moving up, at a time when other countries are reeling from weak economies, political backlash and widespread unemployment,” it said.

While the study revealed a lack of knowledge of some financial concepts, Mantaring said it did indicate an improving attitude toward life insurance. “Life insurance is now considered by a third of the respondents a priority purchase for the next two years,” she said.

Priorities
Asked about their priorities in the next two years, the respondents gave the following answers: opening a business (51 percent); purchasing a parcel of land (45 percent); and getting life insurance (39 percent).

Other priorities were an education plan (39 percent), a car/vehicle (37 percent), gadgets (37 percent), health insurance (37 percent), house/condominium (37 percent), house renovation (35 percent) and durables/appliances (27 percent).

While 80 percent prepared for the future by putting savings in
a bank, 30 percent were planning to put up a business. Only 20 percent were planning to get a life insurance and 10 percent were planning to invest.

“Filipinos must be encouraged to learn the basics of proper financial planning and explore a wider array of financial instruments to help them achieve their goals and aspirations,” the research said.

Quiz coverage
In the quiz, Filipinos were mostly knowledgeable about topics relating to investment, annual interest rate, credit card, asset, life insurance, real estate, debt, savings accounts and current account. A majority answered questions on these topics correctly.

They typically scored poorly in questions relating to preneed plans, stocks, loans, mutual funds, inflation, a healthy budget and bonds.

Multiple choices were given for each question.
———
The Quiz included questions such as the following:
1. Which of the following statements about inflation is false ?
a. Higher inflation means higher prices of consumer goods
b. Purchasing power is lower if inflation is high
c. As inflation rises, every peso will buy a fewer amount of goods.
d. None of the above
e. All of the above

2. The formula for a healthy budget should be …
a. Expense + income = Savings
b. Income – savings = Expenses
c. Income – expenses = Savings
d. None of the above

3. If a savings account has an annual interest rate of 2 percent, how much will a P100,000 deposit earn after a year?
a. P2
b. P20
c. P2,000
d. P20,000

4. Which of the following can be considered an asset?
a. Cash
b. Credit
c. Utility bills
d. All of the above
e. None of the above

5. Which of the following can be considered a debt?
a. Insurance
b. Loan
c. Real estate
d. All of the above
e. None of the above

6. Which of the following can be considered an investment?
a. Stocks
b. Taxes
c. Revenue
d. All of the above
e. None of the above

Answers: 1) d; 2) b; 3)c; 4)a; 5)b; and 6)a

Products for your 10,000 peso business

2013-05-13T20:30:00.000+08:00

By; Paul Ryan Gusay

The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.

Peter Drucker

The 10,000 peso Entrepreneur might be caught up in webs and views that often can trap the mission and vision for his business.

"Ang ganda ng produkto ko !" (My product is so good.)

"Etong produkto ko ang bumubuhay sa negosyo ko.." (The product is what makes the business survive.)

While we all know the role of products that play in a business, a new Entrepreneur might in essence be so focused on his product and promotion that the other aspects of the business turn out to be neglected.

In my consumer distribution business, I am in constant search of products that are innovative, can serve a particular niche and can be easily promoted. At the start of the year, my team and I have scourged through different products and services and have been able to decide on 1, that is how slow we decide on taking on a product.

http://www.flickr.com/photos/63991153@N00/2590036459

Here are few guidelines that I take as personal pointers before I take on the product under my wing:
1. Will the manufacturer be willing to sell the product to us on payment terms? (it might be cash on the first few transactions but will eventually turn into terms).
2. Is the manufacturer/principal distributor policy on returning bad stocks flexible and helpful?
3. Would the logistical cost of the products not pose a burden to the end user?
4. Is the profit margin and price mark-up acceptable to our team or not?
5. Will the manufacturer/principal distributor be willing to start out on a few initial orders and grow the volume eventually?

These are just 5 guide questions that we use so that we do not get burned in the process. Of course this does not apply if you would like to go into retailing.

If I were to go into retailing then I would probably not try to sell everything to everybody. I would at first identify the segment of the market with the appropriate buying capacity and then would find products to sell to this segment, this way I am able to appropriate initial scarce resources to inventory. One approach to starting a business is to look at the segment in which you think you can market effectively.

Looking around, you can observe that many Chinese traders go into product segments that can be classified as "commodities" : rice, corn, edible cooking oil etc. Most of these traders believe that there will always be customers to these essentials. As a matter of observation also, I do not know a lot of Chinese traders who run internet cafes or who go into selling products and services that are regarded as pleasure items.

Remember, the product or service IS NOT the business. You do not need to love a product that you are selling, though it helps that you have experience with the product but then again, having an efficient marketing system to reach the customers is one important point that is missed by new start-ups.

For small to medium sized companies, hiring a product manager is actually a good idea, given that the product manager is indeed an expert and knows more about the product and the promotion to your selected target market.

Cash flow remains to be the vital point of every business in this day and age.

http://www.flickr.com/photos/23433155@N07/2375537962

The 10,000 peso idea or dilemma

2013-05-07T16:21:00.000+08:00

"The important thing is not being afraid to take a chance. Remember, the greatest failure is to not try. Once you find something you love to do, be the best at doing it." – Debbi Fields

Quote courtesy of this site. This particular article has a lot of motivational quotes for business, you should check it out.

For some reason, people have been searching for subjects within this site related to a "10,000 peso Business."  This may be very well attractive to people since 10,000 is more or less within ones reach.  But let me point out that the amount attached to the micro or small business is less relevant to the leadership, character and emotional intelligence of the Entrepreneur.

"Leadership is a potent combination of strategy and character. But if you must be without one, be without the strategy." – Norman Schwarzkopf.  Courtesy of this site.

In the past, I have written about start-up tips that one can learn and plan before engaging in business.  Here is the link to that article, click here. Getting as much education will help you plan your business better and help you know what to expect.

If you are indeed looking for a business or busily engaging in opportunity spotting then you might want to invest some time in networking with other business-minded individuals and joining clubs that can help you do just that.

Forget the government in helping you get into the business, it is too bureaucratic and too corrupt to even solve its own problems. The government has not realized the importance of MSME (Micr0-Small to Medium Enterprises) and it's impact on the national economy, that is probably part of the reason why Joey Concepcion went on a crusade with his Go-Negosyo

Photo courtesy of: Flickrcc

Here are few tips to go about your opportunity spotting:

1. Distribute an invention/product.

2. Solve a crisis, irritant or problem in your town.

3. Identify different ideas from other cities and bring them locally to your town.

4. Watch out for products or services that have "ready demand"

5. Learn to sift for franchises.

Are we busiiness competitive

2013-04-24T02:37:00.000+08:00

by Armando O. Bartolome

THE news is out and radio commentators are talking about it a lot, TV talk shows are discussing it and Facebook walls are full of posts about the investment-grade rating that Fitch Ratings recently gave the Philippines.

The excitement may have been long overdue, as the country has been waiting for this one big break for decades.

One big windfall from the rating is the possible influx of investments. Foreign businessmen would be lured into looking at various opportunities that the Philippines has to offer. They may also be transferring their regional offices or manufacturing plants to the country, a move that would be a boost to generating employment.

Let me focus on local businesses and examine how competitive they can be vis-à-vis their foreign counterparts.

The micro and small entrepreneurs need to be assisted. It is a fact that majority of our businesses stem from these players. We cannot allow our entrepreneurs to remain now and forever selling at public markets and street corners.

I do salute those entrepreneurs who have gone beyond the parochial mind-set. They believe that with passion, innovation and respect for consumers, they would be able to make their businesses grow.

The Department of Trade and Industry (DTI) has been holding various seminars almost every week for the micro and small entrepreneurs. The Bureau of Micro, Small and Medium Enterprise Development (BSMED), under Director Rhodora Leano, has been hosting these seminars. The speakers for different topics are all professionals. I take time off to honor invitations for me to share my business experience with many participants. I was surprised that people young and old came to listen and interact. Majority wanted to know techniques on growing and expanding their business.

There is also the Go Negosyo group, which is having “Nego” seminars almost every month at the RFM Auditorium in Mandaluyong City. (Nego is short for negosyo, Filipino colloquial for “business.”) The place is almost standing room only as everybody listens to speakers coming from the pool of Angelpreneurs, group of entrepreneurs who volunteer to share and talk about their businesses.

There are other groups and companies that are reaching out, as well, to various communities. The question I have to ask the entrepreneurs is: Is there willingness on their part to cope and adapt to improve? We can attend seminars or enroll in graduate courses but if we fail to cross the bridge and implement what we learn, then we fail and just waste money and time. What matters most to me is not to lose out on opportunities being presented to us. On second thought, we Filipinos are one breed who always excel in everything we do.

*This article is a repost from this original source. This author is one of the principal driving forces to "Mang Inasal". I agree with everything that he said, the business aptitude, experience and education coupled with the right timing and application of proven business principles will enable one to succeed and have a thriving enterprise.

SME contribution to Asia economy limited – Google (A commentary)

2013-04-06T20:22:00.001+08:00

“Nobody talks of entrepreneurship as survival, but that's exactly what it is.”

-Anita Roddick, founder of The Body Shop

As I was doing my late night current events updating, I stumbled across this article from the Philippine Star. This is really interesting and worth contemplating about. This is not my article but I am going to attach a few of my comments.

By Louella Desiderio (Philippine Star), click HERE for original article

SINGAPORE – Despite small and medium enterprises (SMEs) dominating businesses in Asia including the Philippines, their contribution to the total economic output has been limited, with the growth of these enterprises not keeping pace with their numbers.

“More businesses in Asian economies are small businesses...and they’re driving change faster than many of the big companies you read about,” Google Asia Pacific president Karim Temsamani said in a forum held here yesterday.

“The big numbers of small and medium businesses (SMBs) however, don’t fully translate into GDP (gross domestic product),” he said further.

[This is quite mind-boggling, this means that small to medium businesses in the Philippines are not having an impact in the lives of ordinary Filipinos. Can this be true?]

He noted that while SMBs make up between 80- to 100-percent of businesses in Asia, the sector’s contribution to their respective countries’ GDP ranges between a little over 20- to 70-percent.

In the Philippines, where most businesses are SMBs, the sector’s share to GDP is only a little over 30 percent.

He said that among the factors to be blamed for the low contribution to GDP of SMBs in the Philippines is lack of infrastructure to allow these businesses to go online and provide their services through the Internet.

[Talking about infrastructure, one of the most hilarious things to bring this up is the fact that the speed of internet connectivity in the Philippines is way below to that of their neighbors. It is really wise to go into internet marketing due to the fact that the cost is low and the reach is far and wide. There needs to be a vast utilization of internet marketing professionals and that virtual assistants. When we talk about infrastructure, it does not only include physical things but the skill set of a country as well.]

But while this is considered a constraint, Temsamani said it is just a small challenge given earlier announced investments by firms to improve access to the Internet in their country.

The bigger challenge in allowing SMBs to increase their share in the total economic output, however, is making these businesses aware of the huge opportunities available for them by going online.

“Education is an issue. A lot of businesses don’t understand that the Internet can help them efficiently to reach customers,” Temsamani said.

Through the Internet, he said SMBs could reach not just people in the immediate area, but everyone with online access.

SMBs buy text, video and mobile ads that reach people for less than the most basic offline marketing campaign would have cost 10 years ago.

“This power (the Internet) needs to be accessible to every small business, because every business can use it to make their ambitions larger,” he said.

[The information age indeed has changed almost everything; reaching people can now be done at a fraction of the cost. Small companies can now compete with big companies in their messaging campaigns. It is through websites that small companies can do this.]

Temsamani said that as more and more people use mobile devices, SMBs need to make sure they could be found through those gadgets.

“A lot of SMBs don’t have websites optimized to mobile devices. Everyone needs to understand that consumers have moved to mobile devices,” he said. “Mobile provides tremendous opportunities for SMBs whether its the apps (applications) or the Web,” he said further.

At present, Google has online tools to help businesses grow such as AdWords, an advertising platform that allows an enterprise to show advertisements to individuals who type in keywords related to the products or services it offers. Google Asia Pacific’s director for SMB operations Kevin

O’Kane added that such platform allows businesses not only to choose the message they want, but also who they want to reach.

He also said that even if all SMBs decide to establish an online presence which would mean greater competition, they could still succeed through better goal-setting.

“These businesses could get more targeted. The more targeted and specific you are, the more successful you are going to be,” he said

[What great marketing advice. In business, targeting and getting through your customer is indeed everything.]

OFWs and Starting the 10,000 peso business.

2013-04-06T20:22:00.000+08:00

Recently, I had a facebook chat with one of of my good friends whom I served an LDS Mission more than a decade ago. We are good buddies and both served in the island of Mindoro Occidental, particularly the town of San Jose. After exchanging pleasantries and catching up on our personal and family situations, the conversation shifted to our livelihood.

I asked him, "Where are you working right now?"

He replied, "I am an OFW (Overseas Foreign Worker) assigned here Western Australia, working in a company that manufactures thermal blankets for heavy equipment."

Photo Credit: http://www.flickr.com/photos/32594277@N04/3688704665

A little bit puzzled with his job, I responded

"You must earn a lot of money, I would suggest saving and learning to invest your money either in a business or profitable vehicle."

To which he blurted "Kung may matira pa (if there are left-overs)."

It is a fact that a basic worker in Australia would earn up to 2 Million Pesos/year (converted). That is an average of 160T Pesos per month. That is how good the pay is there so I was really wondering why an OFW in Australia who's family is located in Luzon is not able to put aside a little money each month for investing purposes or a seed fund for a business. With a little budgeting, a family of modest means can make a few pesos go a long, long way so that money-making assets can be realized for the future.

Managing your personal finances is one of the prerequisites if you want to start your own micro or small business. Talking to your wife or spouse and setting a goal to set aside a percentage of income and place it in a separate bank account so that when the right business idea or opportunity is spotted, one would not be in a desperate situation because of the unavailability of funds.

Here is a real life story on managing funds from a real OFW, this article comes from Randell Tiongson's website and can be filled with wonderful insights that all of us can relate to:

Read the article Here.

The sum of the matter is OFWs have the potential to be great business people and investors if they are willing to be financially educated and literate. By acquiring the right mindset, changing perspectives and managing funds smartly, they might not be only the rightful saviors of the Philippines but can be an investor force for the country as well.

The 10 Richest Filipinos (2013)

2013-03-30T16:40:00.000+08:00

Forbes Magazine released its 2013 list of the world’s richest, with 11 Filipinos included, up from just six in 2012. As of March 2013, the Philippines’ No. 1, Henry Sy & Family’s net worth has risen to $13.2 billion, in retail, residential and mall development and banking.

Original article here.

Henry Sy (Source: celebritynetworth.com)
1. Henry Sy & familymall development, banking and real estate
Age: 88
Net Worth $9.1B

Lucio Tan (Source: forbes.com)

2. Lucio Tan & family
tobacco, brewery, airlines and banking
Age: 78
Net Worth: $4.5B

Enrique Razon, Jr. (Source: forbes.com)

3. Enrique Razon, Jr.
port operations and gaming resort
Age: 53
Net Worth: $3.6B

John Gokongwei, Jr. (Source: affordablecebu.com)

4. John Gokongwei, Jr. & family
malls, budget airline, publishing, real estate and food products
Age: 85
Net Worth: $3.2B

David Consunji (Source: worldfolio.co.uk)

5. David Consunji & family
engineering, construction and real estateAge: 91
Net Worth: $2.7B

Andrew Tan (Source: forbes.com)
6. Andrew Tan
food and beverage, real estate and gaming
Age: 60
Net Worth: $2.3B

Jamie Zobel de Ayala (Source: Ayala Corporation)

7. Jaime Zobel de Ayala & family
telecommunications, property development, infrastructure, banking and mall development
Age: 78
Net Worth: $2.2B

George Ty (Source: forbes.com)

8. George Ty & family
banking, insurance and car manufacturing
Age: 80
Net Worth: $1.7B

Roberto Ongpin (Source: forbes.com)
9. Roberto Ongpin
telecommunications, property development, gaming and mining
Age: 76
Net worth: $1.5B

Eduardo Conjuangco
(Source: afforadblecebu.com)

10. Eduardo Cojuangco
brewery, power, infrastructure and heavy industry
Age: 77
Net Worth: $1.4B

*We may not make it to their league in this lifetime but if you start investing in a worthwhile business, you may earning very well yourself.

PH gets first-ever investment grade rating

2013-03-28T16:14:00.000+08:00

by Kathleen A. Martin, ABS-CBNnews.com

Posted at 03/27/2013 2:44 PM | Updated as of 03/27/2013 9:30 PM

MANILA (2ND UPDATE) -- The Philippines got its first long-coveted investment-grade rating on Wednesday, as Fitch Ratings gave the country a 'BBB-' with a stable outlook.

An investment grade status opens up the country to more investments that can lead to additional jobs and funds for infrastructure, and help create sustainable economic growth.
"The Philippine economy has been resilient, expanding 6.6% in 2012 amid a weak global economic backdrop. Strong domestic demand drove this outturn," Fitch said in a statement. (For the full statement, click here.)

But the credit rater expects the economy to slow down to 5.5% this year, lower than government estimates of a 6-7% growth.

Fitch lauded the improvements in Philippines' fiscal management that began under former President Gloria Macapagal-Arroyo that made "general government debt dynamics more resilient to shocks."
These improvements, the debt watcher said, made the country's strong economic and moderate budget deficits in line with investment-grade status.

Efforts of the Bangko Sentral ng Pilipinas, meanwhile, were also not in vain as Fitch stressed the inflation management mechanism and policy-making framework of the central bank gave way to the country's current favorable macroeconomic conditions.

However, Fitch pointed out more governance reforms should be put in place as the Philippines lag behind other BBB countries in this aspect.

"Governance reform has been a centerpiece of the Aquino administration's policy efforts. Entrenching these reforms by 2016 is a policy priority of the government," Fitch noted.

The credit rater also recounted the low fiscal revenue of the Philippines maybe below investment-grade standard, but the recent sin tax law should allow the government to rake in more tax revenues.

A further positive rating action on the Philippines is possible if the country can sustain its economic growth or broaden its fiscal revenue, Fitch said. But a downgrade is also possible if the country sees a reversal of the reforms in place, a higher fiscal debt, an unstable banking sector, or a deterioration in monetary policy management.

Reactions
The Philippine Stock Exchange index (PSEi) soared to a new high on Wednesday, lifted by the news of the Philippines' investment grade rating.

BSP Governor Amando M. Tetangco, Jr., in a statement on Wednesday said "The investment grade upgrade should inspire the entire government bureaucracy and the Filipino people to capitalize on the opportunities that will arise from the rating upgrade."

"From our end at the BSP, we will remain committed to our mandate of maintaining a stable inflation environment supportive of economic growth, and on enhancing governance standards of financial institutions in line with the national priority of good governance," he continued.

Finance Secretary Cesar V. Purisima also welcomed the rating upgrade, saying this "opens up more sources of financing for our businesses, lowers the cost of borrowing, and encourages more investments, which in turn will lead to more jobs and greater incomes for our people."

"The Aquino administration remains committed to eliminating corruption, investing in our people, and enhancing our infrastructure and overall business climate. We have already done so much in the past 3 years, with greater cooperation from our people, we can do so much more," Purisima added.

Two other credit raters, Standard & Poor's and Moody's Investors Service, rate the country a notch below investment grade. S&P awarded the Philippines a BB+ with a positive outlook, while Moody's gave it Ba1 with a stable outlook.

Economists noted there are still a lot to be done following the rating upgrade to sustain and boost economic growth.

"Fitch's rating upgrade of Philippines to investment status will certainly boost investment confidence in the country, which is seeing strong growth momentum and improved public finances," Bernard Aw, economist at Forecast PTE in Singapore, said.

"However more work needs still need to be done, particularly in terms of pushing through reforms to increase investments as well as government revenue," he added.

Jose Vistan, research head at AB Capital Securities in Manila, said for his part: "It's something that was already expected by the stock market but I think investors will welcome it and that will push the main index to 7,000 possibly next week. We're just 200 points away from that level."

"The question now is what's next after the ratings upgrade. There's a lot of concern about valuations," he pointed out.

Norio Usui, country economist at the Asian Development Bank, said the rating is "unprecedented in the Philippines and can trigger the kind of investment that will help carry the country into its next phase of development."

"Prudent measures to attract investment, improve the business climate and diversify the economy have paved the way for growth. Now it's up to the authorities to make that growth more inclusive by creating more and better jobs," Usui added.-- with Reuters

*Are you gonna be a part of this great economic bustle or just stay at the sidelines and watch?

Leading Health food company diversifies into organic produce

2013-02-09T23:50:00.000+08:00

Have you ever noticed that the chickens we eat nowadays often give you an allergic sting one way or another. The company -Health Options is diversifying into the organic food sector to meet this crucial need for healthier food. My other blog also reiterates the same principles that this article is saying. Pinoy Business Coach realizes the potential of your dreams and aspirations to be a source of a worthwhile business.

By: Ma Stella F. Arnaldo

HEALTHY Options Inc., reputedly the leading chain of premier health-food stores in the country, is projecting a 20-percent increase in its retail sales this year, boosted by its new organic-produce line.

For the new line, the company invested an initial P3 million in a 5-hectare organic farm in Majayjay, Laguna, in 2012, said Romy Sia, managing director of Healthy Options.

“It’s a partnership with the Costales Nature Farms. We built chicken coops, put in money to buy more breeds, to buy more pigs and set up a hygienic vegetable processing plant,” Sia told the BusinessMirror. The plant, he said, was “especially critical” to assure Healthy Options’s clients that they would be buying only the freshest and cleanest produce.

The new line of organic vegetables, culinary herbs, pork, chicken and eggs will be sold under the brand “Organika” in all 18 stores of Healthy Options, most of which are found in leading malls nationwide.

Organika was formally launched last week with a fashion show at E’s bar at the Edsa Shangri-La Manila. “By launching these products from our very own farm, we renew our commitment to giving our customers better choices for a better life. It is also a show of support to small organic farmers, and to healthy, humane and sustainable farming,” according to Sia.

Via text message, he said that Healthy Options “hopes to grow by 20 percent in sales this year, especially with the contribution of the Organika line.” In 2012, Sia added, sales grew by 11 percent. The company’s biggest sellers are its multivitamins, food and herbal supplements and natural hair dyes.

At the sidelines of Organika’s press launch, Ronaldo Costales, vice president and chief operating officer of Costales Nature Farms, said the property produces monthly 8 to 10 tons of organic vegetables such as lettuce, culinary herbs, cabbage, French beans and cherry tomatoes.

The farm also has 50 head of pigs and 2,000 to 2,500 heads of chicken “at any given time, just to supply Healthy Options.”

Six months after they are born, the hogs are brought to a double A slaughterhouse in Sariaya, Quezon, which ensures the sanitary conditions under which the animals are prepared.

Founded in 2005, Costales Nature Farms has been supplying organic vegetables and culinary herbs to restaurants and hotels in Metro Manila. But its hogs and chickens will be exclusively sold to Healthy Options, Costales said.

Meanwhile, Sia said he decided to go into organic products after witnessing the heartless way hogs were transported from the farms to slaughterhouses often in cramped jeepneys or trucks. “They’re not treated well. Just because we eat pigs doesn’t mean we should mistreat them. I cannot have in good conscience to sit down and eat pork adobo or lechon knowing how much the pig has suffered.”

He noted that in the UK where he also keeps a home, hogs are raised differently. There, Sia said, “they focus a lot on the welfare of the animals.” Organic farming, he added, believes in the same kind of techniques in raising farm animals.

Most industrial farms use synthetic fertilizers, pesticides and genetically modified crops, while steroids, growth hormones, sub-therapeutic doses of antibiotics and synthetic trace supplements are usually injected into farm animals.

While organic products are often priced higher than ordinarily grown produce and farm-bred animals, Sia underscored the health benefits of eating such products. “We want cheap food yet all these chickens, for instance, are injected with growth hormones for them to grow bigger and fatter.”

Most commercial farms also practice mono-cropping, which leads to higher pest attacks, use additives to hasten production and cram poultry and livestock in very tight, unsanitary spaces that expose them to stress and diseases.

Since the company’s soft launch of Organika in September, Sia said, the response has been overwhelming. Healthy Options’s customers are often affluent, coming from the A-B classes who can afford the higher price points of organic produce.

Aside from offering superior meat and vegetable produce, Healthy Options’s farm does not cause excessive waste or pollution, resulting in a healthier ecosystem.

“We will deliver products that have the Healthy Options guarantee of freshness and quality, just as we have been doing for more than a decade,” Sia said.

With his partner and childhood friend Christian Tan, he founded Healthy Options in 1995, as an offshoot of Sia trying to find relief for his son’s food allergies. Sia and Tan have since branched out to a natural pet-food and accessories store called Bow & Wow and a premier wine shop, Wine Story.

Best practices of successful multi-outlet franchisees

2013-02-06T23:35:00.000+08:00

Here is a quick repost (original article here) of a real guru in Philippine franchising. I have read his book- Is Franchising for you? and can honestly say that the man knows his stuff. He is the one responsible for the success of "Mang Inasal". Being an Entrepreneur can be viable nowadays, here is an article that can help you decide. Whether the conventional way or the franchising way, this site can encourage and help you out.

By: BUTCH BARTOLOME

I WAS pleased to know the response of readers to the best practices of franchisees whom I mentioned in my column last week. Some of the readers said that they felt inspired to follow, innovate and begin breathing new life to their own business.

Here are some more who could inspire some more who might want to be franchisees:

Guillermo Perales, Burger King franchisee who operates 90 branches:

He believes that when you have the whole market, you can do what you think is right. Owning the market allows you to close, move and build stores and set uniform pricing and promotions without ruffling the feathers of customers who notice different deals at different locations, or have disagreements with other franchisees. “It’s only one price, one promotion, one message.”

Guillermo has long felt that a business cannot truly thrive without taking an active hand in cultivating strong communities.

To support education and provide incentives for Latino students to stay in school, he created a Certificate of Achievement Award program. Through the company, almost 4 million free meal certificates are distributed every year to local students through the program. A small effort to support education since he believes that improving education among Latinos is crucial.

His advice for smaller franchisees is to be open-minded. Listen to the opinions of the brand managers and other franchisees and don’t assume you know everything right away. Find lenders to help you grow, he says, and sooner or later you’ll own the whole market.

Rapid growth has been a crucial part of the strategy. “With one, you can fail easily, but with several, you can support the network.”

Guillermo does not just operate franchises; he owns much of the property as well. That’s a cornerstone of his growth initiatives.

He delegates to his directors and rely on their expertise to keep the outlets operating effectively. If there’s a problem, that’s the time he steps in.

Guillermo is very close to the operations. He sees the numbers every week. He has an eye on the cash flow and visits the stores.

Employee retention is paramount. It seems, he says, that he is constantly looking for ways to lower turnover.

Finally, according to Guillermo, he is not afraid to make a change when it comes to a poor performing store or manager. The quicker you get to the problem, he says, the better off you’ll be.

Vkram Bakshi, McDonald’s franchisee in India who operates 210 branches:

He suggested to McDonald’s to be sensitive to Indian culture when introducing products. Thus, their menu has neither beef nor pork.

Vkram sources 90 percent of the products being used in the stores from within India.

He introduced his Indian suppliers to its global buyers. As a result, not a single supplier has left Big

Mac since the very beginning of his business journey in India.

Vkram has an efficient supply-chain system that has helped McDonald’s reduce the raw material cost and eventually become an affordable brand.

He believes that the best opportunity to make comprehensive models for business growth is during economic slowdown.

Vkram does not believe in forcing his people to do something; instead, he inculcates in them a practice where they deliver the work on natural trust and team spirit.

He believes in following collaborative leadership where every member feels like a part of the team rather than as an individual subordinate.

Vkram also introduced the “Litter Patrols” consisting of McDonald’s employees who virtually comb the garbage spilled in immediate vicinity of the restaurant for a cleaner neighborhood.

In the store, they use only heavy-duty garbage bags to collect garbage and given only to an authorized garbage collector for proper disposal.

Vkram pioneered the concept of “Grease Traps” for zero oil contamination in residual wastewater.

He formed a menu development team right from the beginning, which basically carries out consumer surveys on changing food habits and comes out with a menu for that purpose.

The menu reflects changing consumer behavior, and that’s what the brand is all about fresh, peppy and contemporary.

The growth is by cluster. The franchise tends to consolidate area-wise. It makes sure that it has a strong base before it goes to another place.

In building stores, Vkram’s principle is that the stores must be convenient to customers. He makes a priority locations across highways, airports and stations.

These inspirations people are ordinary folk. Yet, one thing for sure is that they are passionate and treat the franchise business more than their own. There is also a synergistic relationship established with their franchisers. This is the true meaning of what franchising ought to be: “To be in business for yourself but not by yourself.” The key most franchisers are in search of when expanding their business is not location but more discovering, cultivating and getting into the groove of the partnership with the franchiser.

(My recent book, Franchise Wisdom From The Masters, is not yet available in bookstores. If any reader in the Philippines is interested in purchasing a copy, e-mail me at philfranchiseguru@gmail.com.)

Nurturing the homegrown

2013-02-02T23:21:00.003+08:00

"It is often inspiring to read the stories of how businesses came to be. Stories like this can really motivate the would-be Entrepreneur. This article further states that a mission can be spiritual and powerful as well in driving a business. The original article can be accessed here. Stay motivated to let your business dreams come true by continuously following our site.

BY EUSH TAYCO

The idea for Human Nature came when Anna Meloto-Wilk had her second child in the US, and her sister Camille Meloto was there to help out. Ms. Meloto also had some bridal makeup artist gigs at the time, and one of the brides gave her a package of natural cosmetics. "It was my first time seeing such cosmetics that are 100% natural. Prior to that, I didn't think it was possible. It got me very interested," she said in an interview.

From left: Anna Meloto-Wilk and Camille Meloto.

Ms. Wilk and her husband Dylan had been making conscious efforts to adopt a more natural and healthy lifestyle for their kids. When her sister showed her the all-natural cosmetics, and the good results that she got from them, they checked the ingredients and were surprised to find ingredients like coconut, aloe vera, lemongrass, and other plants that could be easily grown in the Philippines.

"That sparked the idea to come up with our own line of locally made natural beauty products," Ms. Wilk said in an interview.

"We know that natural products are expensive in the Philippines, so I guess that's where the dream started," Ms. Meloto added.

When the sisters returned to the Philippines in 2008, they enrolled in seminars on essential oil extraction and collaborated with a natural formulator to come up with a product line. Human Nature, also run with Mr. Wilk, was then formally launched on Nov. 27, 2008.

Today, the company is also an oft-cited example of a successful social enterprise, as ingredients are locally and organically grown by partner NGOs and communities.

"From the start, we knew that we had to do it not solely for profit but really for equal distribution of profit, and to be able to help as many people as we can," Ms. Meloto said.

For her part, Ms. Wilk said, "We have always been united in our vision for Human Nature, which is to provide quality of life for the poor — those directly employed by us and also the farming communities that we source our raw materials from — and to become a world-class company producing the best natural products."

The business was not without its share of growing pains, however. "Problems were faced before by all of us trying to make a decision, and aligning our company decisions with our personal principles and the principles that we set for our company," Ms. Meloto said.

"There are always problems, especially at the beginning when there weren't a lot of systems in place yet and we were still building our team," Ms. Wilk added. "We were all very stressed — and we still are, especially Camille and Dylan! Our growth has been lightning fast, and everything needs to be done yesterday, so that can cause a lot of fatigue and misunderstanding."

The entrepreneurs' family relationship, however, has had positive effects on Human Nature as a company. "We have the same set of values, having been raised in one family, and we try to treat all our employees with compassion [and] fairness, while still holding them to the highest standards of excellence," Ms. Wilk said. "Actually, the last part about excellence has been mostly because of the culture that my husband Dylan has also instituted in our company. We've learned a lot from him, and we continue to do so. Having a different perspective from the West has helped us raise the bar in our day-to-day work."

As for the future, Human Nature hopes to strengthen its position in the country. "First of all, [we want to] be a household brand in the Philippines that every Filipino can be proud of, and after that get a foothold on the export market. We want to be a global company with a heart that gives back to the Philippines, especially the poor in our country," Ms. Wilk said.

Ms. Meloto also aims to extend and grow the brand while retaining the values that shape Human Nature. "We'll show the world the principles that we believe in and never shortchange people for the quality that they are getting. We will continue to spread the word of goodness that's coming from the Philippines through a brand that commits to provide only the good."

Human Nature
463 Commonwealth Avenue, Quezon City
(02) 931-5787
(02) 433-1202

More OFWs opting to go into business

2012-08-27T11:48:00.001+08:00

Returning OFWs are indeed a boon to the country if they succeed in starting and growing their businesses. Here is an excellent article that can aid budding start-up entrepreneurs in growing their enterprise. Landbank usually gives out these kinds of loans to OFWs on a per project basis. If you have any relatives or friends who just came back, then this site can help them.

By: Mayen Jaymalin (The Philippine Star- repost)

Manila, Philippines - More overseas Filipino workers are opting to return home for good and put up their own business in the country, the Department of Labor and Employment (DOLE) reported yesterday.

Labor Secretary Rosalinda Baldoz said close to 500 OFWs have put up their own enterprises over a year since the government launched a P2-billion reintegration program.
Baldoz said that the Land Bank of the Philippines, which is the Overseas Workers Welfare Administration (OWWA’s) partner in the program, has already approved 410 loan applications

“The total loan amount has already reached P261,707,063.20,” Baldoz said, citing the OWWA’s update report.

Majority or 71 percent the borrower-beneficiaries, were males while only 29 percent, were females.

Many of the OFW-borrowers also came from the CALABARZON region, followed by Central Luzon and then Western Visayas and Bicol Region.

According to Baldoz, the business ventures funded by the loans generated 1,458 jobs.

Most borrowers engaged in food production, trading business, agri-business, and services.

The loan program is managed by the Land Bank of the Philippines and carries an annual rate of 7.5 percent in declining balance with a flexible payment scheme maximum of 5 years and an incentive grace period of two years. A borrower can borrow a maximum of P2 million.

Baldoz said the government hopes to turn more overseas Filipino workers (OFWs) into becoming successful entrepreneurs.

“We want our OFWs to be their own boss by investing on livelihood projects and considering entrepreneurial opportunities through the assistance of the government’s strengthened reintegration program,” Baldoz said.

She stressed that there are better long-term opportunities for OFWs beyond overseas work.

PHL: Good Potential; Little Probability

2012-08-24T14:16:00.000+08:00

Wednesday, 22 August 2012 21:09 John Mangun / Outside the Box

Here is an article from one of my favorite authors- John Mangun, the original article can be found in this link. One of the reasons we are not a rich nation is because of the way the majority of us think. This article in this blog covers the mindset needed to raise our country to other possibilities and realities. In developing the Entrepreneurial Spirit, we push the country to new heights. Pinoy Business Coach believes we can do better.

THE title of the editorial in yesterday’s issue of the Business-Mirror sums it all up: “PPP Inches Forward.” While the editorial was speaking to the dismally slow progress of the Public-Private Partnership Program, PPP could mean “Philippines Pathetic Progress.”

It is absolutely ridiculous to read a headline “PHL Makes Top 10 List of Fastest Growing Economies” when the article talks about the year 2050. Further, our 2050 neighbors will include Mongolia, Nigeria and Egypt.

The “experts” at Knight Frank and Citi Private Wealth feel they can make accurate predictions 38 years down the road, but I want to see their predictions for next year on Nigeria’s ongoing civil war and Egypt’s move backward into the 8th century. It is all nonsense.

In 2005 I wrote an article, “The ‘Good Old Days:’ Philippine Economic Progress Since 1988” that analyzed the Philippine economy’s progress from 1988.

Between 1989 and 2005, the gross domestic product (GDP) of the Philippines increased by 700 percent. Another interesting fact that I discovered was that the Philippines was at times better at turning its growing national wealth into human development regardless of the fact that poverty had grown and that the experts even now complain about growth not reaching all of the population. But in fact, for example from 1990 to 2001 the GDP growth averaged a meager 1-percent growth, while PHL’s Human Development Index (HDI) score went up 2.74 percent. By comparison, Thailand averaged 3-percent growth but their HDI score only increased by 3.9 percent. The Philippines actually got more economic bang for its buck of wealth growth.

United Nations Development Program statistics showed that PHL rated a score of 16 on “Converting Wealth to Human Development” while our neighbors lagged behind. Their scores were China: 9, South Korea: 3, India: 2, Indonesia: -1, and Malaysia and Thailand both -7.

The one factor that became evident in my research was that the government was the single most important factor that was keeping the Philippines down. During the period from 1988 to 2004, the GDP was increasing at a rate of 4.5 percent on average, but government borrowing was rising at the phenomenal rate of 17 percent per year. Furthermore, all that government borrowing through four administrations did not translate into propelling the PHL economy forward.

Thanks to the efforts of the last administration finally getting a handle on the government debt problem and those polices carrying forward now, PHL government debt is not an anchor around the neck of the economy.

However, the same inefficient and ineffective national government of the 1980s, 1990s, and beyond is still running (or maybe ruining) the show.

On Monday one article in this paper was titled “BSP Gold Purchases Drop By 95%.” The report says that gold purchases by the Bangko Sentral ng Pilipinas (BSP) dropped by 95 percent in the first half of 2012.

The reason for this is not a lack of production but that the gold is being smuggled out of the Philippines. Since the Bureau of Internal Revenue (BIR) started cracking down on alleged tax evaders who might also be those who transact gold selling to the BSP, the sellers have found “alternative” sources to buy their gold.

I am not defending those who would cheat on their taxes. But you might think that the government could figure out how to do their jobs well. The BSP, the BIR, and Bureau of Customs cannot seem to figure out how some P10 billion or P20 billion worth of gold suddenly disappeared out of the country. Perhaps they could start by asking a local cigarette vendor in any provincial area outside of Davao. Or a fisherman along some deserted Davao del Norte coastline. While corruption in government may be a significant problem, perhaps a greater problem is competency. If the private sector was managed and operated the way the government seems to be, Filipinos would all be living in nipa huts and riding carabaos for transportation.

Something must quickly change for the better in the government or nothing is going to change for the better for the nation.

*Dark and controlling powerful personalities are still controlling the destiny of this nation.

The Facebook investor you never want to become

2012-06-20T09:52:00.000+08:00

This article spells the right techniques in investing, even in evaluating business ideas. A copy of the original can be found here. Like investing, setting up a business entails skills, this article mentions a few of those skills that you can develop to start your way to the entrepreneurial path. For more articles on the subject of business, refer your friends to this site.

By: Rebecca Waber

A recent article in The Wall Street Journal about Facebook’s initial public offering mentioned a small-time investor in Chicago who had purchased $10,000 worth of stock in the social-media giant. He borrowed more than half of that sum from his mother. Clearly, this investor thought Facebook was a sure bet. But he’s probably kicking himself today, as the value of the stock has dropped more than 27 percent since its May 18 debut.

This poor soul, like so many others, failed to judge risk accurately, and no doubt there are myriad reasons for that. But I’d like to suggest that one critically important factor is Facebook’s starring role in so many people’s lives—a fact that contributes to what psychologists term the “availability bias.”

Availability bias is the rule of thumb whereby we call to mind our personal knowledge of a topic in order to figure out how important it is. It’s the reason so many people overestimate the risks of flying while underestimating the dangers of driving, even though they’re far more likely to die in a car crash than in an airplane accident. The latter simply makes much bigger news.

Likewise, Facebook produces big headlines and is on the minds of millions of people, especially regular users. This means that many investors value Facebook more than they should, given the facts.

Availability bias distorts business investments in the same way, particularly when corporations seek new growth. In deciding where to allocate development funds, firms all too often view their core or high-profile markets as the safest bets only because they’re familiar.

The alternative to constraining your decisions to the familiar (or the famous) is to ground your investments in a decision-making process that is deliberate, not reactive:

Focus on discovering customers’ needs. When you uncover consumer needs, you naturally create differentiated offerings with true market value.
Pursue a long-term strategy. In an effective strategy, short-term moves should lead you toward solid long-term goals. A collection of opportunistic bets, no matter how sure they seem in the moment, is not a strategy.
Don’t follow the herd. We’re all human, and there’s emotional comfort in doing what everyone else is doing. But stay vigilant and rigorously evaluate each investment opportunity based on its merits, not its media profile.

Rebecca Waber is a manager at the growth and innovation consultancy Innosight.

Start-Up Companies Need Full Support

2012-06-14T21:32:00.000+08:00

I came across this article from The Manila Bulletin, find it by clicking here. This is the sentiment of the business sector that support from the government to start up enterprise is not enough. The best planning that you can ever have before engaging in business is an article I wrote in this site. REad that article here.

By EMMIE V. ABADILLA

June 12, 2012, 4:49pm

MANILA, Philippines --- Local start-ups need the support of both public and private sectors to achieve global success.

For the first time, top venture capital firms – Ideaspace, Kickstart Ventures, and Wireless Wings – called for incentives to cultivate a local Information Communications Technology (ICT) culture to create the Philippines’ own Silicon Valley during the recent Information Technology Journalists Association of the Philippines (ITJAP) forum on “Start-ups and Technopreneurs.”

“It’s not just money, but other forms of support that we need to make sure start-ups become successful,” stressed Earl Martin Valencia, co-founder of Ideaspace Foundation.

The Ideaspace Foundation, a non-profit start-up incubator company, was funded by the Manuel V. Pangilinan group of companies --- Smart Communications, Manila Electric Co. (Meralco), Maynilad Water and Metro Pacific Investments Corp.

The Philippines could very well produce the next billion dollar company like Google, Facebook and Apple, Valencia added.

The key is to create an ecosystem that would encourage people interested in technology to pursue ideas and create innovations that have never been seen anywhere else in the world, suggested Marthyn Cuan, Meralco’s chief information officer (CIO) and Ideaspace co-founder.

Part of this ecosystem would be improving the education system especially in the area of science and technology, and making it easier to do business in the country.

Making the country’s business environment friendlier to start-ups would provide people, particularly students, alternative paths to success.

“You don’t have to work in multi-national corporations to be successful and add value to the country. We want to give Filipinos an alternative, and this should not be exclusive to those that come from landed families and can afford expensive educations,” Cuan explained.

The goal should be to build the “infrastructure” of venture capitalists, mentors, and facilities that can ensure that ideas are turned into commercially viable products in the shortest amount of time, Minette Navarette, president of angel capital firm Kickstart Ventures pointed out.

“Start-ups should be given a chance to talk to people that have been on that road before. People that have succeeded in this area. They can help expose a start-up founder to the way a big company thinks. And we should also get big companies to start vouching for entrepreneurs so that they can get bank loans,” she elaborated.

Start-up founders should stop being afraid of failing. “In Asia, failing is often seen as a shameful thing. But in the world of start-ups, if you haven’t failed yet, it means you haven’t done enough,” she said.

"I think Manny Pangilinan is headed in the right direction for supporting this sector of the start-up industry.

Strong fundamentals seen to attract foreign capital

2012-06-12T21:20:00.000+08:00

Here is an excellent article on the investment and business climate in our country. The original article is from this newspaper. Don't you think it is a good time to consider starting a business? For Start up tips, visit our article by clicking here.

Pinoy Business Coach is dedicated to educating the masses with the right mindset and plan to starting and running their own businesses.

By: Lawrence Ogcaoili (Philippine Star)

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) believes that foreign capital would continue to flow to emerging markets including the Philippines amid the continuing sovereign debt crisis in Europe and the economic slowdown in the US.

BSP deputy governor Diwa Guinigundo said the country would continue to attract foreign capital due to its strong macroeconomic fundamentals led by the stronger-than-expected gross domestic product (GDP) growth in the first quarter amid a low inflation environment.

“We have the pull factor of strong macroeconomic fundamentals and very few would argue against that especially in the light of continued search for yields and safe haven,” Guinigundo stressed.
The BSP official brushed aside the decline in the amount of foreign exchange that flowed into the country over the past few months due to the deleveraging in Europe and economic uncertainty in the US.

Data from the BSP showed that the net inflow of speculative investments or “hot money” was cut by more than half to $772.4 million in the first four months of the year from $1.646 billion in the same period last year as investments in shares listed at the Philippine Stock Exchange (PSE) declined.
Gross inflows posted a double digit level decline of 12 percent to $5.507 billion in the first four months of the year from $6.262 billion in the same period last year while gross outflows inched up by 2.6 percent to $4.735 billion from $4.616 billion.

The BSP said major sources of foreign portfolio investments include the US, the United Kingdom, Singapore, Luxembourg, and Hong Kong.

“I am not exactly losing sleep because of weak portfolio flows. This is something expected because of risk aversion as a result of sustained deleveraging in Europe and adverse economic reports from the US,” Guinigundo explained.

“After the dust has settled, I would expect foreign exchange inflows to resume. I believe we have a very good combination of monetary, foreign exchange and fiscal policies at present. I don’t think we should contemplate of additional measures to prevent foreign exchange outflows,” Guinigundo said.

Last March, the BSP further liberalized the country’s foreign exchange regulatory framework to boost confidence in the country’s strong macroeconomic fundamentals.

Under the amendments to the Manual of Regulations on Foreign Exchange Transactions, the ceiling for importations that would not be required to be supported by documents to be submitted to the BSP-International Operations Departments was increased 10 times to $500,000 from $50,000.
Likewise, the new guidelines also lifted the submission by banks and authorized agent banks – foreign exchange companies to BSP of hard copies of the “Consolidated Daily Foreign Portfolio Investment Registration and Outward Remittance Report.”

The changes would encourage outflow of foreign exchange and would ease pressure on the strengthening of the peso against the dollar.
The BSP has so far implemented six phases of reforms in its foreign exchange regulatory framework since 2007.

"This is absolutely good news and a good time to start a business."

Financial Management for your 10,000 p.eso business. PART 2

2012-04-14T22:25:00.002+08:00

We mentioned a lot of tips in the part 1 of this article which you can access it here. Part of the issues of financial management is the fact that start-up or new entrepreneurs need to raise sufficient cash to be able to start a business or expand one for that matter.

The most basic of being able to financially manage your future company or to efficiently run an existing one is by focusing on YOUR OWN PERSONAL finances. By setting time and effort to effectively maintain financial records of your income and expenses on a daily basis, you will be disciplined to think in terms of cash flow, income statements and balance sheets.

Most people are threatened when they hear those big words that form a financial statement. I used to be afraid of these words also until I realized that the fear came from the fact that I did not understand them at all. By starting to record my daily expenses and knowing my income on a weekly basis, I was able to start a life-long habit of being able think in terms of cash in and cash out and to know my cash position.

Cash position, by my understanding was the current cash on hand and any income coming in, before any major payable. When I was able to understand how this works and forecasting payments at a personal level taught me how to 'save-up' and not spend those precious pesos until I was able to pay that coming bill or financial obligation.

Some mock the Chinese for being diligent record keepers of income and expenses, but from my point of view, all that mocking is in vain for there lies the secret to the skill of Cash flow Management. Today. my wife and I are consciously listing our expenses and incomes on an excel file and review them constantly to determine the cash position. If the cash is not sufficient to pay a coming financial obligation then we use the time before that bill is due to find the cash or funds to settle that obligation when it becomes due. Talk about great training for our imaginations and resourcefulness.

These are skills that are not taught in school which I think that we all need to develop.

The American Idol Business

2012-04-11T15:30:00.002+08:00

Look at it as a case study, this site is set so that you can open your mind that what we view as entertainment, especially American Idol. is really a money-generating scheme. The more people spend time viewing the show, the richer the owners of the show become, reminds me of an article on Time Utilization & Money, you can read that here.

Here are just some of the income that the "Idol" or "Idle" show rakes in:

1. RATINGS- the more audience follows and watches the show means that the show has growing value over time. This can be compared to the price of a stock or a commodity.

2. ADVERSTISING- major companies pay more in air time advertising in between the segments of the show, helping the network earn more and pushing the price of the licenses and rights to air the show.

3. TEXT MESSAGING- yup, the votes that people cast are really a milking cow, imagine if Millions would vote for their performers each time the show goes live, try to calculate the total votes, that in itself is a whopper!

4. BRAND EQUITY- the more artists come out of American idol, like David Cook, David Archuleta (who just starred in a local show here in the Philippines), the more the Brand becomes highly valuable and gets more expensive.

5. CONCERT TICKETS/ROYALTIES- the stars of the show often go on tour and get to visit different parts of the world, because they are a result of the American Idol brand then promoters would have to pay owners of the Brand royalties in tickets etc.

It is a perfect blend of many earning sources of cash that enable American idol to pay the salaries of the 3 judges, which I think are expensive in and of themselves (they definitely are not doing it for free). American Idol is therefore a business case that is worth copying and emulating.

House 2nd reads bill for renewable energy vehicles

2012-04-09T15:18:00.002+08:00

Thursday, 29 March 2012 19:09 Fernan Marasigan / Reporter

Comments: This interesting article was taken here. Spotting trends like this proves that it does not take money to take money, an explanation of this concept can be found in this previous article. There are websites that help generate positive & profitable ideas., one of those sites look like this. Pinoy Business Coach believes in the capability of the Filipino Entrepreneur!

THE House of Representatives, in a plenary session, has approved on second reading a bill that will provide incentives for the manufacture, assembly, conversion and importation of electric, hybrid and other alternative-fuel vehicles.

House Bill 5460 aims to lay down the groundwork for the widespread use of hybrid and alternative-fuel vehicles in the country and thus lessen dependence on imported fossil fuel.

The measure, which substitutes House Bills 01, 4794, 5139 and 5161, also seeks to protect the environment by mitigating the deleterious effects of harmful carbon emission into the atmosphere.

It defines an electric vehicle (EV) as any vehicle that uses electric motors solely for propulsion, while a hybrid vehicle (HV) refers to any vehicle that combines the technologies of using an internal combustion engine (Ice) with a battery-powered electric motor to gain advantages of both propulsion systems.

An alternative-fuel vehicle (AFV) pertains to any vehicle using alternative sources of energy such as but not limited to solar, wind, hydrogen fuel cell, compressed natural gas (CNG) or liquefied natural gas (LNG) and liquefied petroleum gas (LPG) other than conventional sources of energy like petroleum and gasoline for propulsion.

The bill seeks to exempt from the payment of excise taxes and duties for nine years from the effectivity of the law the manufacture or assembly of completely knocked-down (CKD) parts of electric, hybrid and other alternative-fuel vehicles, including the conversion of vehicles into electric, hybrid and other alternative-fuel vehicles.

It also exempts from the payment of value-added tax for nine years from the effectivity of the law the importation of raw materials, spare parts, components and capital equipment used in the manufacture or assembly of electric, hybrid and other alternative-fuel vehicles, including the conversion of vehicles into electric, hybrid and other alternative-fuel vehicles.

The sale of raw materials, spare parts, components and capital equipment used in the manufacture or assembly of electric, hybrid and other alternative-fuel vehicles, including the conversion into such vehicles, shall be subject to 0-percent VAT rate for nine years from the effectivity of the law.

The bill exempts from the payment of excise taxes and duties for four years from the effectivity of the law the importation of completely built units (CBUs) of electric, hybrid and other alternative-fuel vehicles.

*This is a positive trend that can open a whole new line of products and services to small business people. Being aware of trends can bring in income generating ideas!