Have you noticed how many small businesses run by students are blowing up online lately? It’s inspiring to see young people making a big splash on the internet with their businesses.
This increasing number of student entrepreneurs is a promising sign that the youth nowadays are starting to reshape the Philippines’ economic future. It cannot be denied that opportunities are pouring for today’s young business minds, especially with the support given by country leaders.
This article will take a closer look at why starting a small business can be a game-changer for our economy, and how you can become a vital part of that growth.
What is the role of entrepreneurship in a country’s economy?
Did you know that almost half (46%) of all Filipinos think there are great chances for starting a business in the Philippines? About two-thirds (66%) believe they have the skills needed to start their own business.
Entrepreneurship is vital for a country’s economy and society. Entrepreneurs are the people who come up with innovative ideas, create jobs, and make social changes that help the country thrive.
Dr. Bernardo M. Villegas of the University of Asia and the Pacific (UA&P) highlights how some young entrepreneurs in the Philippines can contribute to the economic growth and development. They positively impact relevant key issues like unemployment and poverty by starting fresh and innovative micro, small, and medium businesses.
Why are small businesses important?
- Job Creation – Did you know that small businesses in the Philippines play a big role in creating jobs? Small businesses are officially called ‘small and medium-sized enterprises’ or SMEs – and they make up about 99.5% of all businesses in the Philippines and provide jobs for 70% of the workforce.
- Reducing Poverty – It’s a domino effect and everything is interrelated. When you have more small businesses offering more job opportunities, you also help reduce poverty, thus improving lives.
- Innovation – Believe it or not, small businesses are often the birthplace of some really cool and innovative ideas. Without the heavy layers of approval due to the hierarchical structure needed in bigger companies, small businesses can quickly try out new things and innovate.
- Local Economy Boost – When you spend money at a small business, more of that money circulates in the local community. This helps other businesses and the local economy as a whole because the money stays within the area, supporting other ventures and community services.
- Driving Economic Growth – Small businesses contribute significantly to the country’s Gross Domestic Product (GDP). By creating jobs and paying taxes, they help fuel economic growth. When small businesses thrive, they can expand, hire more people, and contribute even more to the economy.
What are the challenges of starting a small business?
It’s true. Starting your own business is not smooth sailing. It can be really challenging, and a lot of people tend to give up whenever they don’t see immediate results.
Sure your idea has potential and can possibly change lives, but in the execution of a business plan, you have to have a specific set of skills that can help you thrive.
It does not happen overnight. Here’s a look at some common hurdles you might face if you decide to launch a business:
- Money Matters – One of the first big challenges is getting enough money to start your business and keep it running until it starts to make a profit. You might need to figure out how to handle money coming in and going out, get some funds from investors, or take out a loan.
- Competition – There are likely other businesses already doing something similar to what you want to do. Standing out and attracting customers can be tough. You need to think about what makes your business special and why customers would choose you over someone else.
- Rules and Regulations – There are lots of rules that businesses have to follow, which can get pretty complicated. This might mean getting the right permits, following local laws, and understanding taxes.
- Keeping Up with Tech – Technology changes fast, and keeping your business up-to-date with the latest tech can help you work more efficiently. But, it can also be tricky and expensive, especially when you’re just starting out.
- Getting Customers – Drawing in customers and keeping them coming back is crucial. This means you need to be sharp with your marketing and really understand what your customers want. Plus, awesome customer service goes a long way.
- Growing Your Business – Once your business is up and running, thinking about how to grow bigger, like hiring more people, increasing what you offer, or reaching new markets, introduces a whole new set of challenges.
- Dealing with Risks – Running a business can be unpredictable. You’ll need to be smart about spotting potential problems and figuring out how to handle them before they get too big.
- Balancing Act – Starting a business can take over your life if you’re not careful. Trying to keep a good balance between work and your personal life is super important to avoid burning out.
Knowing these challenges in advance can really up your preparation game. It involves thorough planning, understanding your market, smart resource management, and staying resilient in tough times.
But guess what? Learning from others is a game-changer. Seeking guidance from experienced entrepreneurs or mentors can prevent costly mistakes. That’s where a solid mentorship program comes in handy.
Mentorship initiatives tailored for young business owners
Speaking of mentorship, where can you find the best mentorship that can help you with your business goals? Did you know that graduates from programs like the Entrepreneurial Management Program (EMP) are totally ready to help with this? They don’t just start businesses; they make sure those businesses can grow and stick around, making our economy even stronger. Here are some of the benefits of getting the value-driven mentorship:
- Contribution to National Goals – EMP aligns with the current Administration’s efforts to support the growth of Micro, small, and medium enterprises (MSMEs)which can be considered as the Philippines’ economic backbone. They make up 99.5% of business establishments in the country, providing 63% of employment to the Philippine workforce, and contribute about 40% to the country’s Gross Domestic Product (GDP). By joining EMP, students can directly contribute to these ambitious goals.
- Job Creation – EMP empowers students to establish new business ventures, leading to the creation of much-needed jobs in the country. This helps tackle unemployment and underemployment issues, making a positive impact on the community.
- Long-Term Solution to Poverty – Through EMP, students acquire skills and values that enable them to address poverty effectively. By becoming young entrepreneurs, EMP graduates implement sustainable solutions to uplift the Philippines economically.
- Transition Support – EMP bridges the gap between microenterprises and small to medium-scale businesses, fostering a healthy industrial economy. Graduates play a crucial role in supporting microentrepreneurs, acting as mentors and partners in growth.
- Values Formation – EMP emphasizes values such as solidarity and common good, ensuring that graduates prioritize the well-being of society. This ethical foundation guides EMP students to make responsible business decisions for the benefit of all.
Through the Entrepreneurial Management Program, students become agents of positive change in their communities and the nation as a whole. Join EMP and embark on a journey to make a difference through entrepreneurship.
To learn more about the UA&P Entrepreneurial Management Program, check out our website at https://em.uap.asia/about/