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CHAPTER 9: ENCOURAGING ENTREPRENEURSHIP IN THE

PHILIPPINES
In this chapter, we understand how really important the entrepreneur and the
businesses in one country. Just what I remembered when I was a senior high school,
my teacher always told to us that “Entrepreneur is the support system of the economy”.
So, now I understand why because they create jobs for the people and the government
can collect tax to these businesses. And also to encourage more people to do business
the government and private sector do their part to development some programs and
organization that may help to strengthen and to grow their business.

One of the major problems here in our country is unemployed that result to
poverty. We all need a job to sustain our daily need and wants but we can’t deny that
this is one of the major problem in our country even the government can’t find a solution
to solve this problem. But, just what I've learned in this topic, how really important
MSMEs to us and to the government to support our economy.

The micro, small and medium enterprises (MSMEs) has really important roles in
our economy. They create a lot of job to the people and help to reduce poverty in our
country. Imagine about a millions of MSMEs here in our country and create a million of
jobs to the Filipino. This might be the solution to reduce or lessen unemployed here in
our country. By means of this, the major problem which is poverty can lessen if the
government focus to support these enterprises. It is beneficial to the government
because they can collect taxes to these enterprises and use this to build projects that
boost the economic growth of the country.

It is more convenient to the aspiring entrepreneurs to enter to business if the

government support them by means of creating organization that promote and develop
the MSMEs not just collecting taxes from them. So, the government provided some
programs to strengthen and grow their businesses and also to secure their rights as
entrepreneur. One of the programs develop to help the MSMEs is UP ISSI the major
purposes to train the people and assist existing small scale industries to increase
productivity and to promote and develop new ones, to provide consultancy and
extension services and lastly to lead the way in overcoming the various problems. Next
one is SERDEF to assist the promotion and development of entrepreneurship and small
and medium enterprises by to foster an enterprising culture in the Philippines society,
initiatives on new and innovative strategies and to initiate, sponsor, promote and
conduct research. Here are some programs that we’ll known Go negosyo, PinoyME
Foundation, Entrepreneur Philippines, Yes Philippines there primary goal is to help the
MSMEs here in our country to grow, to become innovative and make seminar to those
lack of knowledge in business.
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The government creates a law, policies and assistance program to ensure that
Entrepreneurs especially in the MSMEs sector not only protected but also to
encouraged to work and enjoy the fruits of their labour. Some laws exempt micro
enterprises from taxes and fees for numbers of years like BMBE but depends on the
qualifications they set on there provision. Also they create incentive programs to small
enterprises and assistance program in case they needed financial assistance for
expanding there business and accumulate some money or capital to buy equipment and
tools in expanding the business. But, MSMEs obtain this right if they registered to DTI
because this is the primary government organization mandated to promote, support and
spur the growth and development of MSMEs in all productive sectors of the economy.

We can see how these enterprises had a big part of our economy, they created a
job and government collect taxes from them, and the taxes that was collected by the
government build a program and opportunities to us. Just what I learned on the reporter
on this chapter it’s like a chain that continues to circulate, the both government and
entrepreneurs needed to support each other. Just what I’ve said above this MSMEs
only need is the support of the government to make a path and opportunities to grow
there business, especially right now we currently fighting for this pandemic, just what
I’ve heard in everyday news that the major affected is MSMEs, some choosing to closed
there businesses because of financial problem. We conclude how enterprises works for
us and hoping the government lend money for their financial to continue their business.
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CHAPTER 10: ENTERPRISE ENTRY STRATEGIES

It's not easy to build or open a new business; a lot of question and doubt come in
our mind what would be the best way to start a business. We should know the risk that
we're going to face if we build our own business. In this chapter, this will be helpful to
those people who plan to enter into business. And also we discussed the different entry
strategies like start from scratch, obtaining a franchise, taking over family business,
buying an existing business or running a business from home. These entry strategies
had difference in terms of advantages and disadvantages. To lessen/avoid the risk/loss
that you will face in the future, as entrepreneur you should have s background
knowledge in business – and this chapter will help you to answer the question “How
does one start a business?.”

As we discussed in this chapter, I learned that not solely you just open a new
business because a lot of way in opening a business, if you’re a risk taker, want some
challenge and have believe in yourself that you will succeed the choose a business from
scratch; but if you are came from a family who run a business and they inherit the
business to you, then you must ask yourself if this really the business you wanted for;
you can buy an existing business but as entrepreneur be ready for any risk and loss the
next one is obtaining franchise, but it was really expensive and you have limited
decision making and access; or you can choose work from home, whatever you choose
it depends on you on how you will handle the business specially there is uncertainty.

Every business has its own risk, as entrepreneur who should be knowledgeable
enough to come up with the new idea and solve any problem, studying every detail can
help your business to succeed. So, in these entry strategies I've learned the advantages
and disadvantages of every entry.

The first one is starting a business from scratch. This is the common means of
entry into business, we're the idea is initiated and developed by the entrepreneur
himself. As an entrepreneur, he is the one who set the business goals, the one who
create policies and procedures according to himself and also he is the one to start the
business, he need to be flexible, more time and energy to study the business idea. In
short, all the stress and pressure is on your shoulders, those who plan to be self-starter
should be prepared to work very hard to deal with uncertainty and risk.

The next one is taking a family business and if you were lucky that your family
owns a business you might be the inheritors or heir of your family business. So, here
are some advantages of taking a family business, all resources are available, the
management and the business itself and if there's uncertainty you can ask business
guidance from the family. Unfortunately, because you are the new owner of the
business, as entrepreneur you may need to compromise or sacrifice your own goal and
passion just to accommodate the business. So, we conclude it less risky than starting a
business from scratch.

The next entry strategy is less risky than building a business from zero, which is
buying an existing business and like taking family business it already has a name in the
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market place and set up its consumers demand; management, equipment and facilities
are also available; sources of raw materials are already established. In short it’s already
a business itself. But the concern here, as entrepreneur must bear in mind that buying
an existing business needs to exercise due diligence by researching on the business
information and consulting lawyers and accountants for legal and financial aspects of
the business to make sure he is making a right decision. Because you need to find the
answer to the question “why would they sell the business if the business had no any
problem at all?” Remember also, as new owner you need to deal from previous dealings
and transaction; there is also a difficulty to adjust or change the policies and procedures
of the previous management and there may be need to improve inefficient layout and
replace or remodel the deteriorated equipment – ask yourself first if this was the right
entry strategy for you.

The next one obtaining a franchise, this is really expensive because it’s worth a
million peso before you obtain s franchise. A franchise is a form of business
organization I which a firm established product or services and tested the business
models allow another business to offer to the market its product or service for free. The
franchisee (buyer) is able to go into business even without previous experience
because the franchisors will the one to train and guide in running your business as well
as advertising and promotion support. The disadvantage of it, you are not full authority
of your business and other one of the franchisee personal management system may not
be compatible with established system.

Most small business owner and aspiring entrepreneurs are choosing this entry
strategies because unlike to the other strategies mentioned above. This required lesser
capital and you can start anytime within your household grounds, thus avoiding costs
and risks associated with building new store factory. Operating from home need
essential technologies such as computers, software program, cellular phone and
internet to communicate to your customer because you choose home-based business
this will be actually a minimal capital and it’s less risky and less stress in terms of travel
and transportation. It is not surprising why many of our fellow Filipino and aspiring
entrepreneurs choose this kind of business. But, there is a conflict with your business
place at home because it may not be strategic, lots of distraction or may felt isolated
when working at home. And also the family demand of time and attention specially if
you’re a parent and had a daughter and son.

As entrepreneur and to those people who plan to enter to business, you need to
bare in our mind the word “Risk”. Entering to business need a lot of time, effort and
patience before you succeed. Here a quotation from Richard Branson “A big business
starts small” never ever scared of risking because all big businesses they started form
nothing and now they have almost everything keep dreaming because one day you’re
not just dreaming but motivating the youngster to your story of success.