Why Filipino Wants to Run Their Own Business
Are you interested in starting your own business? Looking for some good advice?
Though running your own business is a big challenge and a lot of hard work, many Filipinos are considering this career option, rather than working in a company.
In this article, we will look at the trends in how Filipinos are considering starting their own business and discuss the pros & cons.
What is self-employment?
First of all, there are many words to express the style of how you have your own business. Freelancer, entrepreneur, business owner, independent contractor, though it mostly depends on the size and form of your business, it indicates a similar thing.
The official terms used for the labor statistic would be “self-employed” or “self-employment”. Philippines Statistic Authority defines it as “Include persons who operate their businesses or trades and do not employ paid workers in the conduct of their economic activities. This category includes workers who worked purely on a commission basis and who may not have regular working hours. ”
Examples of self-employment
Here is a quick list of self-employment which is common to Filipinos.
- Food Service
- Retail (Import & Export)
- Home-Based Online Business
- Rental Service (Equipment, Car)
- Health and Beauty
- Home Repair and Improvement
- Real Estate
Are the number of self-employed Filipinos increasing? (2022)
So, what are the trends in self-employment in the Philippines like? Let’s look at the facts.
Currently, there are approximately an 11.1million people working as self-employed in the Philippines, according to data by Statista.
In addition, the number from World Bank in 2019 shows that it’s 36.2% of total employment. You could tell from the graph that it’s decreasing compared to 1991 when we have more than 50%.
But, on the contrary, the reality might be bit different. Under the pandemic, more people are considering “self-employment’ as the better option, according to the article by Inquire.net. It says that “the number of self-employed Filipinos without any paid employee rose to 12.1 million in July from 11.5 million a year ago.”
It could be said that more Filipinos are preferring to have some form of side-business for more financial security. Considering how the business have responded to the current pandemic situation, with many job cuts, that seems reasonable choice.
Now that we know about the trend and the reason behind it, let’s look at the pros & cons of running your own business.
Pros & cons of being self-employed in the Philippines
So, there are many Filipinos who want to have their own business rather than work in a company.
Yes, if you are working in a company, you must follow the rule of a company, you should be there for 8 hours a day 5 days a week. While having your own business you have all the freedom to do what you want to do to manage your business.
But, for any job that you choose, there are always pros & cons which you should carefully consider before making a big decision.
You have more freedom and excitement to try new things
If you have your own business, you are in charge of making rules and decisions. You have all the right to do what is good for your business.
Furthermore, if your business is running smoothly, you have peace of mind to relax. You don’t have a boss, but you are the boss. Also, you don’t have competition with your colleagues inside the company, but you will compete with the business rivals.
You will manage your own time
As you manage your own business well, you can manage your time in your way as well. Of course, if you have a meeting with a customer or client, you will need to adjust.
But, as long as it doesn’t conflict with your business, you can allocate the rest of your time to do other activities, such as spending with your family and friends or studying more to achieve what you want in life.
Aside from your time, you could spend your time expanding your network and sharing your idea on how to grow a small business with someone.
You might earn more money than a regular employee
Hard work and effort will come with high returns. In addition, if you have a successful business of your own, you might earn more than just being a regular employee.
You have many opportunities in life
If you have your own business, you also have more opportunities in life like,
- Having more friends,
- Spending more time with your family,
- Earning more money,
- Being more successful in your business,
- And, helping other people by giving them a job.
Your money and investment may be at risk
Having our own business is not easy. It takes a lot of courage, time, money, and all your best effort to succeed.
Depending on a decision that you make, you might put your money or your investment at risk. You don’t know if your business will become successful or not until you run it.
The best advice is to consider carefully your skills and service, product, and market before you put up a business
Your time is 100% for the business
On the other hand, having your own business is about managing it 24 hours, 7 days a week, of doing and thinking about how your business will become successful.
Even if you are taking a rest physically, your mind will be about business, because it is part of your life. For some people, this idea may be a bit stressful.
Your income is not consistent
When you have a new business start-up, you may not earn as much as you expected. Till business is on the track with steady customers, you have to be patient to wait as well as survive with your savings
Competitors are always there
Whatever business you choose, there is always a competitor. In the market that you are joining, there might be several companies already competing. Even if there isn’t now, somebody might copy your business if you are successful. Or, it could be a big brand company coming to your town to take away your customers.
To create a strong business and stay longer in business, you will need to think about better service, better price, and better quality.
May not have the benefits that the company gave you
Here in the Philippines, if you work in a company, the company must give you some welfare benefits like Social Security System (SSS), PhilHealth, Pag-IBIG Fund, and Health Insurance.
Or, if you work in government agencies, you also have many benefits like the Government Service Insurance System (GSIS), Home Development Mutual Fund (HDMF), and Department of Budget and Management (DBM).
There is also a vacation leave, and a sick leave, which you may not have if you are on your own. Closing the shop may be the only choice if you don’t have an employee to take your place.
Tips for starting your own business from digital professionals
Let’s say that you have read this article and think that starting your business is a good choice for your career. To put up your small business, you will need money, time, and a place to build it. Our tips are that there are ways to save all of them.
- Avoid time looking for shop space or paying expensive rent, with an online shop
- Save your money for printing with digital advertisements on Facebook and Instagram
- Secure your money with safe and easy digital payment (GCash, PayMaya), instead of keeping the cash
- Gather your customer with a website, where you can serve both locally and internationally
Now that we live in an age of digital transformation, using the web from the beginning might be a smart option. Depending on your business model, it is worth considering having a website before starting a physical store. If you are interested in this topic, you can check our articles about the product that are trending for online businesses.
We hope this article helped you to get some idea or confidence about starting your own business, if you haven’t yet. If you have any questions, contact us anytime for more discussion about how we can help your business to grow.