*Jozzua | The Magnificent TechnopreneurHow Can A Small Business Make it Big in the Philippines?
Posted by Jozzua on Aug 23, 2006 in Thoughts & Relationships • 8 commentsA person I consider a mentor once told me, “It’s very difficult to start a business in the Philippines because the Big Companies already control most of the supply-chain systems in place.” What did she mean? I figured she referred to the retail sector.
She states an example. Consumer buy supplies from sari-sari stores and supermarkets. Who supplies products to the supermarkets? Del Monte? San Miguel? How do supermarkets choose who to buy from? Robinson malls, for instance, would get their products from its products from sister companies like Universal Robina Corp, right?
I vaguely understood what she meant but let’s think about it for a while. Major food products come from farms. Who owns the farms? The big corporations and the large land owners. For example, who are the biggest real estate owners? Ayalas? Land owners typically also control the mode of transport for the products. The processing companies are owned by big corporations. The lending companies and banks are owned by the same people.
What does it all mean? I think, as in all countries, there are major power players. The power players have the most money and therefore have a say in most of the businesses. They have money to burn. They could use their finances as ‘experiment’ capital for other busineses, and so on. Statistics indicate that 1 out of 10 businesses succeed. They just play the numbers game-make enought money to experiment on ten busineses.
That just my theory, but there may be something to it. For a small player to be successful in business, the owner would probably have to:
- Stay invisible from the eyes of the big busineses and yet profitable.
- Get a whole lot of support from one big business/corporation/power player.
- Play realpolitik. Let the big players wrestle it out and show neither support nor opposition.
What do you think?
in my opinion it’s quite hard to start a business in the phils because of lack of knowledge.. in the business itself, the industry, how to go about with bir, no business plan. are all businesses really dependent on the big companies? probably, but then, one should have the knowledge to make it complement one’s activity.
hey jozzua, happy birth anniversary!!!!
mabuhay!!!!
Hey Gwen! Thanks for the greeting.
Try niching. Find a small but lucrative niche that the big players have chosen to ignore or not to target. Afraid you’re just “one of the many” bars out there? Target a certain group of people, say those who’d like to drink the best beers from all over the world, or make it an exclusive bar that only fifty can go in at one time. The possibilities are limitless…
Look at using the Internet. Start an online business!The field is more levelled than the traditional brick and mortar business.
That is what I am doing right. I am starting to build my online business - preenroller.elearnlibrary.com
Agreed.
I think starting a bzness in the Phil. is not hard, (& no luck is involved too) just need to be fully prepared basically and have a business plan so an idea is iron out beforehand, where your bzness will be going and sustaining it. Also, you need at least a good amts. to start to be able to sustain during the early months of negative cash flow of your bzness.
Lastly, it’s all hardwork + the faith from the Lord are all it matters to succeed.
Starting a business in the Philippines does not require a great deal of capital, knowledge, or ingenuity. I have supplied my wife with capital and she has started a business in the Philippines.
Three distinct advantages to doing business in the Philippines.
1. Less market saturation because there is a lower number of entrepreneurs due to culture. (mainly laziness)
2. Relative poverty of two thirds of the country, so purchasing capital assets is fairly inexpensive. (this also supports item 1)
3. Little, if any real commerce exists outside of Manila. Instead of trying to rush into Manila where competition is fierce, try doing business elsewhere. That’s a sure way to succeed. BTW, this is exactly what WALMART did. Walmart is now the largest retailer in the world.
In all honesty, I find it fairly easy to succeed in the Philippines. Our business is experiencing exponentail growth right now. While that will probably taper off to normalized growth rates in two years or so there is a great deal of room to grow.
Business? we people just think about business if we are already fed up with our financial resources. Some people would really say that putting up own business is hard and some would say it’s easy. There is no such easy or hard in putting up own business as for me, it’s all about good strategies on how to manage and run your capital for business in a most profitable way. As for me, if I would put up own business, I would think of something which is not in common, then think if it is very helpful to the society that you will say people will be coming and availing the offer and services. Mini supermarket is the most common business we do in Philippines, it’s gonna be be hard coz in the first place you gonna have many near competitors just your neighbor, then all the supplies is getting so expensive today and people right now doesn’t spend that much due to crises. If I would to put up my own business prefer with financial support (loans), tour & Travel Agency, Beauty Parlor and more.
that’s it…. I hope this gives you idea….. all the best to you who are business-minded people… goodluck & god bless!