Monograph Launch: Entrepreneurship in the Philippines 2015-2016 Report
22 June 2017, The Verdure, De La Salle University
Executive Summary
The results of the 2015 Philippine APS and NES show the confidence of Filipinos in entrepreneurship as a mover to a better life and more progressive society. Although government policies, structure, and bureaucracy are seen as constraints on growth and sustainability of entrepreneurial undertaking, more than half of the population sees business opportunity in the country and close to 70% believe that they have the necessary skills to seize the entrepreneurial opportunities in the economy. On the other hand, there is a high business closure rate mainly due to unprofitable business operations and difficulty in accessing financing to continue business operations.
There is also very high gender equity where the Philippines registered the highest among 65 economies that participated in the 2015 GEM survey. As for the entrepreneurship impact on the economic development of the country, only 10.2% of total early-stage entrepreneurial activity (TEA) or startup businesses envision to employ more than 5 workers in the next 5 years, 5.5% offered innovative products or services, and 2.7% are in the service industry. Eighty-two percent of all TEA is into retail or wholesale business while only 2% is in manufacturing and 4.4% is into services.
The trend on entrepreneurship motivation, activity, and aspirations was also analyzed from 2006–2015 (periods when the Philippines joined GEM research). The trend showed the same pattern for a factor-driven economy where poor countries registered a higher percentage of the population starting a business. Filipinos sustained their high perception on their capability to be an entrepreneur, their belief that there is good business opportunity in the country, and the society’s view that entrepreneurship is a good career option. Media has played a very important role in generating more interest in entrepreneurship by featuring successful Filipino entrepreneurs and offering programs to encourage formation and conduct of businesses.
Improvement in the economy dampens to some extent the interest to start a business given the availability of more jobs during the last 10 years. More startup businesses are put up because of a better opportunity for financial rewards and independence rather than for necessity or because there is no job available. There is also a sustained increase in established businesses as the economy improved.
To sustain the development of small and medium enterprises, policy recommendations are outlined to have more established businesses and for Philippine businesses to be more active in the global market. Following policy recommendations are given:
● Identification of industry priority areas where the country can be more competitive globally,
● Evaluation of the regulatory environment for startup businesses and ease of doing business,
● Development of innovation capabilities of the business sector,
● Introduction of entrepreneurship and its different forms in all levels of education,
● Creation of new ways of accessing financing through equity,
● Promotion of export capacity and ability to integrate in the global supply chain, and
● Enhancement of human capital development for women and the youth on entrepreneurship.
Philippine Entrepreneurship Report 2015-2016
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