Why There Are Only Few Filipino Entrepreneurs In The Philippines

I had the opportunity to talk to a Filipino entrepreneur and one of the founders of one of the best software development firms here in the Philippines. Being a former programmer or software developer/engineer, I thought that he could enlighten me on a lot of my many questions and help me cross the path from employee to entrepreneur.

I was not mistaken... In fact, I think he made a mistake because he treated for lunch in such an expensive restaurant! I mentioned his name here before in my post about revenue vs profit and how he helped me understand why revenue was announced more than profit. But here I introduce again, Mr. Calen Legaspi the owner of Orange and Bronze Software Labs.

So, one of the topics that we came along to discuss is what is preventing a lot of Filipinos to venture to business? Or why are there only few Filipino entrepreneurs? It was a rather long talk and I didn't bring along a notepad or pen for me to take notes (I had my mobile phone though). I'll try to recall them and present the ideas as accurately as possible.

Why There Are Only Few Filipino Entrepreneurs

The Anti-Entrepreneur Culture of Filipinos - Here's the problem... Most Filipinos live in an extended family. The entrepreneur being the self-starter and dreamer that he is, is usually the bread-winner or depended upon by a lot of relatives. When the main source of income is threatened, mutiny arise within the family! You'll hear stuff like, you can't do this... You can't do that. The entrepreneur is being discouraged to put up a business and is encouraged to take on the "proven way" as they say...

In our culture, we are given this "one-shot principle" where in you only got one chance to make this right or you'll be dragging along all the people that depends on you. This often times intimidate the entrepreneur and most often than not... Gives up his dreams and ideas. Please do not be one of them. Do not be an entrepreneur killer! Support your friends and families who want to have a sense of freedom, their dreams realized by building up their own business.

Incorporating Is Hard - I want to be very careful on this one as I am not an expert nor very familiar with the legal system in business here in the Philippines. But basically, what my mentor said is that  is is easier to incorporate in other countries like the US compared here in the Philippines. He said that the system here is somehow different from what we read in books (i.e. Rich Dad Poor Dad) and you have to make certain adjustments. He suggested considering starting as a sole proprietor first and eventually transform  your business into a corporation. I asked if you can still use your business name and during the transition... He wasn't very sure but he reminded me that aside from registering my business name, I should also trademark my business name. Just so that no one will take it away from you when your business name is already popular.

Hard Access To Capital - Although I've written ideas on how to finance your business, there may come a time when you need access to higher capital. Banks often only lend to companies that are at least 4 years in successful operation so he suggested financing your business from your own savings (he had 6 months when he started with his business) when you are just starting up and borrowing from relatives you can trust. He himself is willing to help technology startup companies if he and his partners believe on the potential of the product being proposed to them. However, such opportunity to be funded wouldn't be possible without a strong connection which is why in one of my earlier posts, I suggest to make strong connections.

In all of the things that the CEO shared to me, I find number 1 the hardest to overcome because this is related to the fear of rejection in which a lot of us find hard to overcome... But are you not excited to form your own start-up If you're reading this and you feel that excitement in you... Maybe... Just maybe... That is the entrepreneurial spirit calling?

Photo Credit: Shubert Ciencia