ABELARDO CORTEZ l February 27, 2024 l Manila Bulletin
Probably there’s more to that recent news story which we must appreciate. The recent wellness index online survey conducted by HMO Philcare strongly indicated that many Filipino Generation X known as post-Boomers whose ages are between 43 and 58 as well as Filipino Generation Y whose ages are between 27-42, have expressed strong preference to business ownership rather than employment. In a manner of speaking, this is a welcome reaction from this group.
One of the biggest areas of complaint by many is usually their work. They say it’s not exciting and, sometimes, their bosses are not even that good and, as equally important, their pay is low. We have heard such remarks several times which likely motivated the big desire by many to just work for themselves so that they never have to deal with boring situations and lackluster bosses.
Put it this way. At various times in our lives, we may come into some funds like an inheritance from a rich relative, or a redundancy package, or even a lottery win. Some people would likely use such cash flows to start their own businesses or buy an existing one.
Carl Schramm of the Ewing Marion Kauffman Foundation said that based on their own research, “growth correlates directly with startups that get big”. He called this the X factor behind America’s historical economic success, continuously spawning many startups that would launch products, find their market niche, implement strategic business and marketing plans and eventually become big after some period of time. The famous economist John Maynard Keynes once defined capitalism as “the astounding belief that the wickedest of men will do the wickedest things for the greatest good of everyone”. Keynes’s definition was not far off the mark; when people ambitiously pursue their own self-interest, they often end up doing great good for the community. That’s how capitalism works, which still is the best system that works in enriching the lives of many ordinary citizens due to risk takers among the citizenry in pushing their own business plans.
Essentially, what we all must do is support an efficient, less corrupt business environment that promotes basic business rules and laws in our market economy. These would include regulations on protecting property rights, upholding contracts, and protection against fraud, lies, and other unlawful business practices. In principle, such rules are enforceable through our judicial system but some courts, try as they might, remain slow and costly doing the judicial process. We cannot afford to run a capitalist system in this manner. Regulatory freedom is not an end in itself but the upholding of good governance and practice is.
Let us cite some notable exceptions. We recall one of the most successful business startups in our country, Jollibee Foods Corp. What Tony Tan Caktiong started as an ice cream parlor in 1978 (with initial capital of P1.2M) has become the largest Filipino brand in the fast-food industry. Another outstanding example is Mang Inasal’s founder and CEO, Edgar “Injap” Sia II. He opened his first Mang Inasal branch in December 2003 at Robinson’s Place, Iloilo. Now, Mang Inasal has more than 570 branches nationwide and has remained consistently profitable ever since. Jollibee saw Mang Inasal’s huge future business potential and decided to buy into Mang Inasal. By the way, take note of this. Double Dragon Corporation, the property firm owned by Edgar “Injap” Sia II, now plans to sign a deal with a special purpose acquisition company (SPAC) next month for a planned listing on the Nasdaq stock market. Definitely, there will be a lot of positives with strategic move to list in the USA market.
Here’s the crucial lesson to remember; both our government and private sector group must remain aggressively supportive in promoting clear policies that will spawn more business startups. The dedicated commitment must always be there given the continuing serious challenges to make our economy resilient and grow fast. Remember, all of us have choices in life. Either we accept what we have, or we decide to live our lives to their full potential with our own business plans.
Things don’t have to end where they began. Life is a dynamic process.
*** Atty. Abelardo “Billy” Cortez is formerly FINEX national president. He’s board director of IAFEI (International Association of Financial Executives Institutes) as well as independent board director at First Metro Investment Bank’s companies/subsidiaries (Metrobank Group). He’s an awardee of the Most Distinguished Bedan Alumnus in the field of banking and finance from San Beda University.