The Global Entrepreneurship Monitor (GEM) 2013 report said Filipinos regard entrepreneurship “as a reliable means
to improve one’s economic and social standing.” The report said the country’s huge population, high educational attainment and the growing consumption expenditure in the domestic market motivate the population to engage in entrepreneurial activities.
The report also noted Filipinos did not regard failure as a major challenge (39 percent) in venturing into business. In fact, the report said many respondents showed a very high intention (44.1 percent) to start a business. “This may be an outcome of a highly positive perception [68.4 percent] of business opportunities present in the country coupled by few available traditional wage-earning jobs,” the study said.
“This may also indicate that people believe that they have the capabilities to start a business leading them to have a low fear of failing in their business start-ups,” the study added.
The report said Filipinos have a high regard on entrepreneurship, with 85 percent expressing interest to make entrepreneur as a good career choice. The report also said strong media exposure has contributed to the popularity of successful entrepreneurs, which has served as examples to the people.
The report said the results of the Asia Pacific Study (APS) on entrepreneurial attitudes show a high percentage of entrepreneurial intention. Forty four percent of Filipino respondents expect to start a business within three years.
The report said almost half of the respondents agree their location offer good opportunities to start a business, and majority believes that they have the competency and capability to start entrepreneurial activities.
The youth factor is very strong as around 45 percent of those engaged in early stage entrepreneurship belong to the group of 18 to 34 years old. Entrepreneurs in the start-up phase are mostly high-school graduates. Business start-ups are also being initiated by Filipinos with college and graduate degrees. Around 10 percent of Filipinos in established businesses have college and postgraduate degrees.
“On the other hand, close to 65 percent of those in established business are between 35 and 64 years, evenly distributed within specific age brackets. Since Filipinos start young in setting a business, most [28.34 percent] are in the established business in the age group of 25 to 30 years,” the study noted.
Filipino entrepreneurs are active in consumer services in both early stage and established businesses. Consumer services include retail, motor vehicles, lodging, restaurants, personal services, health, education and social services and recreational services.
On a macro level, the report said Filipinos displayed a bullish outlook on entrepreneurship. With the current economy boom being experienced by the Philippines, the respondents (48 percent) believe there are lot of opportunities for entrepreneurship, a figure that ranks highest among countries in the Asia Pacific and South Asia. “More than half [68 percent] have the confidence that they have the capabilities and skills required to start a business. Filipinos rate themselves highest in the region in terms of the ability to start a business,” the report said.
The De La Salle University-Angelo King Institute’s Promoting Entrepreneurship Research in Southeast Asia used the GEM report 2013 model for the project, which was funded by the International Development Research Center.
The Philippine report was authored by Aida Licaros Velasco, Mitzie Irene Conchada, Brian Gozun, Gerardo Largoza, Janette Perez and Emilina Sarreal.