Global Trends and ASEAN Integration

Global Trends and ASEAN Integration

• Digital transformation and e-commerce growth is occurring through digital technologies to improve reach and efficiency
• Businesses are prioritizing sustainable and green practices, with remote work becoming increasingly adopted
• Financial technology (Fintech) and digital payments revolutionize business transactions
• ASEAN integration enhances political, economic, and social cooperation among member countries
• An economic integration creates a single market for goods, services, and capital
• Political & Security Cooperation promotes peace and stability through diplomatic efforts
• Sociocultural Integration fosters cultural exchange and mutual understanding

Impact of ASEAN Integration

• ASEAN integration creates new markets and attracts investments which fosters economic growth
• Philippine businesses access a wider market and talent pool, but face heightened competition
• ASEAN integration creates both opportunities and challenges for local businesses
• Promotes the adoption of digital technologies and fintech solutions, impacting the Philippine digital economy

Opportunities for Philippine Businesses

• Wider market access is available to over 600 million consumers with reduced tariffs and trade barriers
• Foreign investment creates increased opportunities for investments from regional and global sources
• Skilled labor mobility allows access to a larger talent pool across ASEAN for skilled workers
• Infrastructure development allows participation in regional infrastructure projects
• Export growth expands export opportunities for products like agriculture, electronics, and services
• Collaboration & innovation allows opportunities for joint ventures, tech partnerships, and innovation

Challenges for Philippine Businesses

• Intense competition comes from ASEAN countries with advanced economies or lower costs
• Infrastructure gaps include inadequate transportation and logistics
• Access to financing is challenging for SMEs seeking affordable capital
• Skills mismatch occurs when there is difficulty finding workers with the right skills
• Regulatory barriers involve challenges in complying with varying ASEAN regulations
• Technology gaps occur with the slow adoption of new technologies

Entrepreneurial Characteristics

• Risk-taking is embraced as integral to business ventures
• Creativity allows minds to produce innovative ideas and solutions
• Adaptability is a necessity to adjust to changing circumstances
• Confidence allows entrepreneurs to exhibit self-belief
• Passion is a driving force behind entrepreneurial success
• Curiosity allows successful entrepreneurs to seek knowledge and insights
• Leadership guides teams and fosters collaboration

Entrepreneurial Competencies

• Opportunity seeking and initiative involves acting on opportunities with a belief in their vision
• Risk management includes assessing and mitigating potential risks
• Goal setting involves establishing clear and measurable objectives
• Planning and organizing means structuring business activities to achieve goals
• Decision-making comprises making informed decisions based on information
• Networking occurs through building relationships to foster growth
• Financial literacy involves understanding financial management principles

Types of Entrepreneurs

• Innovative entrepreneurs create new products by introducing novel ideas
• Imitative entrepreneurs copy existing business models
• Hustler entrepreneurs build businesses through relentless effort
• Social entrepreneurs start businesses with the primary goal of solving societal problems
• Scalable startup entrepreneurs focus on rapid growth, often leveraging technology
• Small business entrepreneurs maintain steady income through their business
• Lifestyle entrepreneurs build businesses around their passions
• Serial entrepreneurs continuously start and run multiple businesses
• Tech entrepreneurs create digital products, software, or tech-driven services
• Corporate entrepreneurs (Intrapreneurs) develop innovations within a company

Social Responsibilities of Entrepreneurs

• Community impact is achieved when contributing positively to the community by creating jobs
• Fair treatment of employees: requires creating an environment of dignity, fairness, and respect
• Environmental sustainability involves adopting green technologies
• Corporate Social Responsibility (CSR) allows donation to charitable causes

Ethical Responsibilities of Entrepreneurs

• Integrity and transparency involves honest and fair business dealings
• Product and service quality achieves meeting safety standards and consumer expectations
• Protecting consumer privacy through safeguarding consumer data from breaches
• Fair competition involves engaging in fair competition

Challenges to Upholding Responsibilities

• Balancing profit with social and ethical obligations is challenging
• Uncertainty in regulatory compliance around environmental protection
• Ethical dilemmas occur frequently in decision-making, e.g., labor standards

Business Reputation

• Reputation management in the digital age requires managing brand image carefully
• Cultural and societal expectations require navigating societal norms, because ethics vary by region

Types of Business Organization

• Manufacturing businesses produce finished goods from raw materials
• Trading businesses buy and sell goods without changing their form
• Wholesaling businesses buy in bulk and sell in smaller quantities
• Retailing businesses sell goods or services directly to consumers
• Service industry businesses provide intangible goods

Types of Real Estate

• Residential real estate includes homes and apartments
• Commercial real estate includes offices and malls
• Industrial real estate includes warehouses and factories
• Land is raw land for development

Real Estate Key Players

• Agents & brokers connect buyers and sellers
• Developers build new properties
• Investors purchase properties for profit
• Property managers oversee property maintenance

How Real Estate Works

• Buying & selling occurs through market research, valuation, and negotiations
• Leasing & renting generates income through tenant management
• Real estate development involves acquiring land, construction, and sales
• Investment is for capital appreciation

Types of Home-Based Businesses

• Online selling using platforms like Shopee and Lazada
• Freelancing as a writer, designer, tutor, or consultant
• Making & selling products like jewelry or crafts
• Food businesses cooking food or baking goods to sell
• Teaching from home providing online lessons

Business Organization Models

• Franchising: A franchisee operates a business using an established brand
• New business trends are emerging ideas and industries
• Online businesses operate primarily on the internet

Entrepreneurship in the Philippines

• Small business entrepreneurs run sari-sari stores
• Social entrepreneurs solve social problems through business
• Technopreneurs use technology to create products
• Agripreneurs are involved in agriculture
• Corporate entrepreneurs create products within companies

Challenges Faced by Filipino Entrepreneurs

• Lack of capital or financial support hinders business growth
• Competition from big companies is a struggle for small businesses
• Government regulations require strict compliance with permits and taxes
• Limited access to technology hinders business improvements
• Market instability causes sudden changes in prices and demand

Government Support Programs

• TESDA training programs offer skills development
• Go Negosyo Act provides support for SMEs
• DTI programs offer assistance in business development and trade
• Loans from government banks (Landbank and DBP) provide financial assistance

Top Filipino Entrepreneurs

• Tony Tan Caktiong from Jollibee
• Henry Sy owns SM Group
• Socorro Ramos owns National Bookstore
• John Gokongwei Jr. owns J.G. Summit Holdings
• Lucio Tan owns Philippine Airlines and Asia Brewery

Qualities of an Entrepreneur

• Self-preparation requires acquiring skills and a mindset for success
• Self-assessment involves identifying strengths and weaknesses
• Skill development requires improving communication and leadership
• Education & training involves taking courses and attending workshops
• Goal setting requires setting realistic goals
• Financial readiness involves saving for initial funding
• An entrepreneurial mindset means overcoming challenges
• Foster creativity and innovation
• Resilience and adaptability requires embracing failure
• Being proactive means taking initiative
• Developing a growth mindset means seeking improvements
• Strong decision-making skills comes from analyzing situations critically

Reasons to Start a Business

• Control & independence comes from building something for oneself
• Being your own boss gains autonomy
• Earning more income has the potential to increase earnings
• Following your passion can turn interests into a fulfilling career
• Making a positive impact contributes to the community
• Creating job opportunities helps contribute to the economy
• Financial freedom means controlling your earnings
• Building long-term wealth creates an asset
• Escaping paycheck-to-paycheck living achieves stability
• Setting your own schedule lets you work on your terms
• Balancing work and life gains more control
• Staying passionate and setting clear goals helps towards progress
• Learning from failures allows opportunities for growth
• Surrounding yourself with support allows seeking guidance from mentors
• Continuously learning and improving refines business strategies
• Opportunities identification involves recognizing gaps in the market
• Ideas germination: entails Developing a raw idea into a concept
• Product innovations means improving or creating new products

Types of Innovations

• Incremental innovation are small product improvements
• Disruptive innovation Introduces a new concept
• Sustaining innovation enhances existing features
• Radical innovation creates industry-changing products

Entrepreneurship Models

• Small business models center local markets
• Scalable startups have rapid growth
• Social entrepreneurship solves social issues
• Corporate entrepreneurship involves innovation within corporations
• Franchise models expand a business by allowing others to operate

Key Components of Entrepreneurship Models

• Opportunity identification means recognizing market gaps
• Value proposition defines the unique customer benefit
• Revenue generation sells products/services directly
• Market entry involves local vs. global expansion
• Risk management identifies financial risks

Entrepreneurship Frameworks

• Business Model Canvas (BMC) outlines key elements
• Lean Startup Model focuses on product development and feedback
• Effectuation Theory leverages resources vs. planning alone
• Triple Bottom Line (TBL) evaluates success based on social impact, the planet, and profit

Factors Influencing Entrepreneurship Models

• Economic environment: Inflation, rates, and policies
• Technology and innovation: Digital transformation, e-commerce, and automation
• Government policies and regulations: Tax policies and incentives
• Consumer behavior and market trends: Preferences, sustainability, and online shopping

Business Model Canvas

• A visual chart outlines key components of a business model

Building Blocks of the BMC

• Customer segments: The groups a business aims to serve
• Value propositions: Solving problems or satisfying customers
• Channels: Product and service delivery
• Customer relationships: The type of interaction
• Revenue streams: How the business earns money
• Key resources: Crucial assets
• Key activities: Essential actions
• Key partnerships: The network of suppliers and partners
• Cost structure: The business's expenses

Benefits of Using the Business Model Canvas

• Provides a clear overview of the business
• Enhances communication within teams
• Facilitates innovation
• Identifies gaps and opportunities