MSMEs (Micro Small and Medium Enterprises) are considered the backbone of the Philippine Economy. Leaders of both government and private sectors admit the role of entrepreneurs play. According to an Asian Development Bank study, new and small firms generated 50 percent of innovations during the 20th century. Every Filipino has a gift of selling and dream of getting into business. In fact, if one were to make a survey there are micro businesses occurring in every office. There are employees who conduct side businesses like electronic loading of cellphone credits, buy and sell of clothes which may be paid in “gives” (installment plans). Others even extend credit or “paluwagan”.
In my 25 years in this profession, I admire those entrepreneurs who dare transcend to another level. They wanted to explore different possibilities. Thus, an entrepreneur can be somebody who is fearless, an out of the box thinker and open-minded. Remaining in their status quo is not in their vocabulary.
More and more young people are daring the older generation gets scared. I believe it is more of seizing opportunities and doing at the right time.
The growth of many businesses in the country can be attributed to the desire of an entrepreneur to expand and maximize the potential of the concept. It is a fact majority of businesses belong the MSME (Micro Small and Medium Enterprise). According to the Department of Trade and Industry the following are the classifications based on Asset:
Micro: Up to P3, 000,000
Small: P3, 000,001-P15, 000,000
Medium: P15, 000,001 – P100, 000,000
On Number of Employees
Micro: 1 – 9
Small: 10 — 99
Medium: 100 — 199
One sure way of achieving business independence is taking the Franchise route.
How did the word “franchise “come about? According to the Wikitionary.org it is from middle English franchisen, fraunchisen, from Old French franchir (stem franchiss-, “to set free”), from franc (“free”). From this definition, franchising is defined as being in business for yourself, BUT not by yourself. For an entrepreneur, there is this liberation of thinking how, where and when to build branches. There are other people called franchisees who with great interest, willingness to invest and manage the branches. On the other hand, the franchisees enjoy managing the business under the guidance of the franchisor.
The relationship of the two parties is and should be synergistic. There must be a win-win basis. However, there are areas, which need to be reinforced. First is the awareness and education level of franchising among entrepreneurs. Certainly, there is no doubt the brand is catapulted to greater heights and eventually the value of the business increases with expansion via franchising. Doing the right way of franchising a business begins with a proper mindset. If the motive of the person is to immediately fast track the franchise program for the purpose of getting the money of people interested, well I do not think such a business is worth getting into.
The other day I was talking with a young man who narrated how he and his wife felt betrayed by the franchisor. They both believed in the concept and potential of the business. They did sign up and invested somewhere to the tune of Php 3M. That money was hard earned and great portion came from both parents borrowed at “zero” interest or pay when able. What is sad is as the months passed by the couple felt the waning support of the franchisor as well the head office. Stocks were not consistent they were left to fend for themselves. Asked if they tried to meet the franchisor? The secretary of the franchisor just ran out of excuses to give! With a bitter pill, the couple had to swallow the fact nothing positive is happening. They even had to contact the other franchisees to ask if such problems have also been experienced. They were never given occasion to meet all together.
The couple cut further loses and threw in the towel. However, as the saying “when one door closes, the Almighty opens another”. True! Today their newfound business is on its 4th year with 6 strong branches and has carved a niche in the market. The couple shall soon be franchising. What happened to their former franchise? Unfortunately, the word “karma” has caught up with the owner. Only one branch remains standing.
Finally, here are my valuable tips especially now that many are planning of going into business:
1. Do conduct your business as it were a Mission of Goodwill.
2. Remember and apply the Golden Rule.
3. Impossible is always “It is Possible”.
4. If you believe in your business concept, pursue to a higher level
5. Expanding a business depends on the passion and confidence of Entrepreneur.
6. If you have a dream, pursue step by step; a business given the proper care grows.
7. Franchising is still the best route; tried and tested based on a prototype.
8. When one door closes, remember the Almighty opens another