Entrepreneurship is main driver of growth

Business World
Vol. XIX, No. 3
Friday, July 29, 2005 | MANILA, PHILIPPINES

BY NORMAN P. AQUINO, Senior Reporter

Entrepreneurship is main driver of growth

Entrepreneurship is a driver of growth and can have a greater impact on development if it is initiated by the private sector where managerial, organizational and technological experts abound.

Mobile phone companies have taken advantage of the opportunities opened up by low-income groups, called bottom of pyramid market.

It was with this in mind that a group of graduate students from the Massachusetts Institute of Technology (MIT) organized the Philippine Emerging Startups Open (PESO). PESO is a local entrepreneurship program and technology business plan competition modelled after the MIT $50K Entrepreneurship Competition.

Federico Gonzales, PESO president and chief executive officer, said a program such as this could play a major role in realizing their vision of a rich entrepreneurial environment.

"If we do this thing right, it can be a powerful agent of change and development for this country," Mr. Gonzales told an audience of would-be entrepreneurs at the competition launch in Pasig City.

The organizers envision an entrepreneurial environment that fosters the creation of new and innovative business ventures that will not only create jobs, but also elevate the knowledge and skills to ensure their place in an increasingly techno-savvy world.

Mr. Gonzales said the PESO initiative seeks to reinstill, reshape and redevelop the spirit of enterprise through a two-pronged strategy.

One is through advocacy of the "believe and inspire movement," which champions the spirit and culture of enterprise towards national prosperity.

It will also promote entrepreneurship education through the newly established Philippine Center for Entrepreneurship (PCE).

PCE wants to be a premier institution that will promote entrepreneurship nationwide by improving entrepreneurship education, fostering a culture of enterprise and providing a marketplace of information on product or service innovation, as well as on the business best practices.

Mr. Gonzales said many parents have yet to understand that entrepreneurship could be a good career path for their children.

"They still believe that a good career for their children is either the profession of an engineer, a lawyer or an accountant. We would like to change that mindset," he pointed out.

Mr. Gonzales said PCE, where he is the executive director, wants to provide "the right kind of education for the right market segment at the right cost."

And the earlier students could understand the value of an entrepreneurial spirit, the better it will be for the country.

"The entrepreneurial spirit is not so much a skill, but a mindset and culture that has to displace the other culture and fight the existing mindset -- that to be a professional is the highest career aspiration," he said.

Mr. Gonzales said PCE would be training teachers to become effective enterprise teachers, since many who teach courses in entrepreneurship used to teach management, which is an entirely different course. "Teachers have to understand what an entrepreneur is, particularly his risk-taking ability and the like."

Aside from teacher training programs, PCE would also be providing curriculum enhancement in all levels, materials development series, short-term non-degree programs for the youth, training for low-income communities and mentoring programs for would be entrepreneurs.

He said PESO as a business plan competition is a grassroots program that seeks to generate and commercialize business ideas.

Under the rules, business plans must be submitted by a team of three to five members -- one with a technology background and another with a management background.

At least one member must be enrolled in a degree program at a local college or university while the other two may either be students, faculty or professionals.

Categories include information technology/telecommunications, agriculture and aquaculture, life and biosciences, services and process technology and engineering.

Aside from education and business plan competitions, the movement also wants to popularize and demystify the prerequisites of entrepreneurial success through communications and recognize deserving entrepreneurs through an awards and recognition system.

The initiative also intends to mobilize and expand its network and link with the academe and think tanks for pioneering studies.

Meanwhile, Mr. Gonzales said the "bottom of pyramid" (BOP) market presents the biggest opportunity for entrepreneurs since they are the biggest market and also have purchasing power, contrary to popular belief.

He also said this segment looks for value for money and quality, so enterprisers should find a way to introduce innovative products that cater to their needs.

Mr. Gonzales said mobile phone companies have taken advantage of the opportunities opened up by this low-income group and would-be entrepreneurs can also make money while giving them more product and service choices.