Is it crazy to talk and dream of business success in this season of vicious wars between our mostly corrupt politicians? No! In these politically noisy times, some leftist troublemakers and rightwing fascists are mouthing rubbish theories and fantasizing recklessly of bloody revolution. We must counter these anti-democracy and anti-progress campaign by igniting an entrepreneurial revolution throughout the country that is mass-based, democratic and focused on encouraging a vibrant people’s capitalism of numerous micro, small and medium enterprises. Let us frustrate and shut up the doomsayers who want our society to self-destruct. Let us defy our politicians’ antics and aggressively promote entrepreneurship!
The Philippine Center for Entrepreneurship (PCE), founded by Joey Concepcion and headed by executive director Federico Gonzalez, sought the cooperation of Anvil in its plan to promote entrepreneurship through schools nationwide. PCE also plans to publish an entrepreneurship book. In his speech, Concepcion complained about the "54 units of useless subjects" in our university curriculum, calling for less emphasis on Filipino language and Rizal subjects, but more emphasis on English, math and other subjects. He said the campaign to promote entrepreneurship should be private sector-driven through groups like the ABC, PCCI, Makati Business Club and others. Concepcion said he hopes that "people in the Philippines will someday learn to idolize entrepreneurs, not actors and actresses who teach all the wrong values."
In his Anvil speech, Ambassador Dee for the first time publicly announced that in October this year, the PCCI will establish an unprecedented P2.5 billion Small and Medium Enterprises (SME) Development Fund. He revealed that the government will provide the initial seed fund of P1 billion, while the country’s wealthiest taipans and other business tycoons shall be tapped to provide the rest of the funds to assist people from all walks of life to become entrepreneurs. From the business leaders, the SME Development Fund shall solicit not cash contributions, but promissory notes and pledges. Unlike the usual commercial banks, finance firms or other traditional lenders, the SME Development Fund shall grant loans to even new entrepreneurs who do not have the usual three-year track record in business. This fund will grant 14 percent interest rate for five-year fixed loans, and 11 percent interest for short-term loans.
Who are the new or existing micro, small and medium-sized entrepreneurs qualified to avail of this massive SME Development Fund? Ambassador Dee said businesses with 10 or less employees are classified as micro enterprises, businesses with 11 to 150 workers and with maximum assets of P10 million are small enterprises, businesses with over P10 million but not exceeding P100 million are considered medium-scale enterprises.
Dee said: "Having said all that, therefore, let me now move fast forward, and talk about our present-day situation, and what you Anvil Business Club members, as a rare breed of young entrepreneurs, can do for yourselves, your family, and for your country. Let me first discuss the prevailing situation of our country, and how it affects us, as businessmen, and ultimately, the survival of our nation.
"Beyond basic national survival, we need to nurture small businesses, make them grow bigger, attempt pioneering venture, create new jobs and new wealth. This is the only way that the Philippine economy will get out of being a basket case of Asia. This is the only way to avoid being a poor neighbor of rich nations."
Dee noted with sadness that there is a very "thin layer of quality entrepreneurs" in the country. While we’re not lacking in entrepreneurs ("We see them everywhere, from the balut and cigarette vendors to those selling newspapers, barbecues, and a variety of instant snacks..."), we do not provide them the room for growth, and they become desperate."
"We must now find ways on how we can cultivate the culture of entrepreneurship, and give this so-called small and medium enterprises, who number over 800,000, the possibility to grow and dream that someday, they might become another San Miguel Corporation, or PLDT, or Zest-O. Entrepreneurship has become the last resort of the poorest, less educated, and the most desperate to have the opportunity of having a decent life.
What our nation needs urgently in this new millennium are young men and women who can see opportunity when others cannot; people who have the vision and imagination to create something new of what we already have; people who dare to create where others only see wastes; people who know that they can mint wealth and jobs, and act on that knowledge. You are at a distinct advantage, because like me, you belong to the second or third generations of Filipino-Chinese families. We have obtained our business education right from the cradle. Most of our business schools do not train businessmen, but rather train workers.
"The question now is: Are there opportunities in our country today? Personally, I see unlimited opportunities in the basic segments of the economy. In agriculture and in services, particularly, in knowledge-based industries, and, in tourism. Never mind the industrial and manufacturing sector. The old elite and multinationals have cornered that part of the economy. What they have not gobbled, imports are bound to take away sooner or later. Some of you may see it differently, and I am not discouraging you. Go ahead. Do it if you feel strongly about it, and become the Dr. Rolando Hortaleza of Splash, who carved his niche in the beauty care industry, or the Alfredo Yao of Zest-O Juice and RC Cola, who is now a giant in the beverage industry.
"In the agriculture and lifestyle sectors, there are still huge opportunities for creative entrepreneurs. I have said many times that the Philippines is one big greenhouse. However, why is it that the Philippines still imports sugar, rice, pork, beef, and today, even vegetables and spices – our most basic food needs."
Dee noted that the Philippines’ cost of living is higher than that of, say, Indonesia and Thailand where workers can have a full meal for only P20. He said that to keep its economic independence, a country must be able to produce its own food in sufficient quantity. "That is the only way we can ensure that other nations will not use food supply as a blackmail weapon against us in times of crisis. The rich nations like Japan, European Union and the US knows this only too well. This is obvious in the WTO negotiation where food subsidies have become the most critical issue, and where the developed economies refused to give up the subsidies that they give to their farming sector, even if the rest of the world demands that the practice be stopped," explains Dee. He recalled that three years ago, the WTO discussions at the Cancun Ministerial Meeting collapsed because of the said issue. Dee feels that the same thing will happen in the upcoming Hong Kong Senior Ministerial Meeting of the WTO and stressed the importance of food self-sufficiency in preserving national security.
Dee continued: "In the case of the Philippines, the food sector has been shrinking in the last two and a half decades. Today, it only contributes 15 percent of the total value of goods and services, or our GDP. And yet, it is in the food sector where 40 million people depend on for livelihood. As a result, half of our 83 million people are poor, for they produce so little and even earn less. To my mind, the key is to make farming profitable to the tillers of our soil. Fishing and fish culture must be made a decent source of income for our fishermen. The exploitation of our forest resources must bring progress to our forest dwellers."
Realizing the need for a new breed of Filipino-Chinese entrepreneurs, he urged fellow businessmen to have a new mindset. He clarified that they need not go directly into farming and agriculture, but they can try to go into the processing of produce like what San Miguel Foods has done. By having a network of farmer-partners as contract growers, he said, they can immediately track the increase in their productivity. "The only way for us to progress is if we give a fair share of the profits to our farmers, ensure that they get a reasonable share of income, instead of continuing the present setup, where the bulk of income goes to traders, and very little goes to the farmers," he stressed. The same thing, he added, can be done when dealing with fishermen. For Dee, when the income of soil tillers improve, output will increase, which will in turn ensure basic industries a continuous supply of raw materials at reasonable prices. "That is the only way, we can reduce the cost of living, which ultimately will make us more competitive in the market place," he said.
As for tourism, Dee sees the need for us to go beyond mere potential. While the country has a good chance to become a world-class tourist destination, blessed as we are with white-sand beaches and lush rainforests, not to mention very hospitable citizens, the country’s third world accommodation facilities and inadequate infrastructure prevent tourists from coming in. "This sector needs investments. Until some of us begin to take a more serious look, and gamble at these exotic places, this would be another opportunity lost to us," Dee lamented.
Dee doesn’t believe that this country is in a hopeless situation. If only people would stop their bickerings and start doing something, "the country, given the rich natural resources, hospitable people, and very intelligent young men like you, can still be a great nation."
"Entrepreneurs, such as you Anvil Business Club members, play a critical role in the country’s dream to obtain that greatness. We, who came before you, did our best, but as the song says, it seems our best was not enough. Soon, we will have to pass on to you the torch of responsibility. You are better educated, and therefore, better prepared to take over the cudgel."