Do a
simple Google search and one of the things you will find is that an average of
13,311 new businesses are set-up in the Philippines annually starting 2006.
Entrepreneurship has now become a sexy buzzword and an alternate career option
for a lot of people. Young entrepreneurs view themselves as the next Elon Musk,
Mark Zuckerburg, or even Jack Ma.
In
a study done by the US Small Business Administration 80% of new businesses
survive on its first year. But the success rate dramatically falls down; 50%
fail within the next five years. Unfortunately, there is no study done in the
country. It can only be assumed that the numbers are quite similar or are not
too far off.
Being
an entrepreneur is one of the most exciting, exhilarating and life-changing
experiences you can have. Starting out can be the hardest and most awesome thing
you can do. There is no assurance of success. Failure rate is high. Loneliness
and being misunderstood are common. Sleepless night and stressful days are par
for the course in the first few months. Even then, success is not guaranteed. You
will discover more about yourself in the first few months of opening a business
– especially true if you have limited or no capital, connections or resources
to make your business fly. These experiences will test your humility, keep your
ego in check and question your grit and challenge your faith to the fullest.
In
an article written by Jessica Bruder published in the website Inc.com, there is
a psychological price that most entrepreneurs face. Entrepreneurs have, one way
or the other, experienced depression, stress and mental fatigue. These are not
highlighted since we view entrepreneurs as the new modern-day heroes; glorified
and immortalized in posters, TV appearances and talks and seminars. It is only
human nature to divert our attention from things that appear undesirable to
things that are pleasurable. Meeting payroll, training staff, balancing books,
facing unsatisfied customers are subjects which are not attractive placing them
in the back-burner. Expensive cars, luxurious vacations and big houses are more
appealing that’s why the focus is constantly on those things.
It
is in the nitty-gritty day-to-day tasks which enable the entrepreneur build the
business and make it grow. It is the repetitive and mundane tasks which enable
him to build the foundations of his/her business. These often take time,
effort, and resources – things not seen by the public.
The
entrepreneurs that the author has spoken with all experienced difficult,
sometimes, impossible situations. The only thing that got these entrepreneurs
through was their self-belief and faith in a Higher Power. Variations of ‘fight
your battles one day at a time, if you don’t believe in yourself who will, and
all things are possible through Him,” are a common theme coming from these
people when discussing adversity and challenges. It is no coincidence that most
entrepreneurs are also highly spiritual, if not religious.
The
country’s educational system has not been able to adapt to the present reality;
that more and more young people want to become entrepreneurs. It is for this
reason that when young graduates take the path of entrepreneurship the failure
rate is higher than most people who put-up business at a later age. Schools are
not preparing these students for the psychological, emotional and mental
roller-coaster typical entrepreneurs go through. There is still focus on
memorization, some analysis and little on real-world implementation and creativity.
Would-be
entrepreneurs view entrepreneurship in rose-colored lenses. The successes are
highlighted and all the trappings that come with it. What is often discussed
and talked about are the big incomes, properties, and countries where one was
able to travel to. One wants to know how much free time an entrepreneur has and
his ability to do other things and acquire more assets.
The
process of being successful and preparing for it are rarely talked about if not
given enough importance. When an ill-prepared would-be entrepreneur experiences
the first sign of hardship, s/he gives up and turns to the job market where
there is security of income and advancement. Giving up means a lost opportunity
not only for the would-be entrepreneur, but also for the country as well.
In
the Philippines where employment is relatively high at 4.5% compared to its
neighboring countries averaging about 3.5%, more small businesses are needed to
be successful in cutting poverty significantly. According to a 2018 study by
the Philippine Department of Trade and Industry, 63.19% of the work force are
employed by the micro, small and medium enterprises (MSME). Most of the
employers belong to the micro-enterprise, which provide employment to more than
2.6M Filipinos. Micro-enterprise is defined as a business that has an asset of
up to 3M of less and employs up to nine people.
The statistics that will be used here
come from the Philippines as the author is from that country. However, all the
words written in this book can be applied anywhere you are in the world.
Business basics remain the same whether you are from the Philippines, Thailand,
South Africa, or Brazil – that you must be able to sell your products to as
many people as possible while earning a healthy amount of profit for each
product sold. Mathematically speaking business can be defined as,
Business Profitability = Sales less
Expenses
For a
business to become successful and grow, the entrepreneur must be able to sell
enough products and services to his/her targeted customers and producing and
delivering these items or services at the most efficient way possible. Forgetting
this basic business equation leads to a business failing.
The aim of this book is guide would-be
entrepreneurs, both young and old, in preparing for and navigating their
entrepreneurship journey. The words, stories and learnings that the author will
share come from years of being mentored by and working with entrepreneurs,
experience in putting up businesses and from talking to other entrepreneurs who
have decided to share their wisdom and insights.
Your experiences may be different but
the core lessons, insights and practical wisdom remain the same all throughout.
After all, ensuring that a business will grow is similar to building a tall
building – foundations must be properly set before one can grow and reach new
heights.
