Philippines Books

Are There Business Opportunities To Be Had In The Philippines? We Take A Look Each Month.

So far I know of people who are getting involved in bat guano, tempura cart sales, sari sari wholesale supply and a few other interesting ventures, including real estate development, sea shells, prescription eyewear and more! The common denominator seems to be the desire to get involved in something. However, a word of warning.

A business in the Philippines can indeed be started on a frayed shoestring, unlike something you might try back home. But be aware that the less you invest the less it will produce. This has nothing to do with any law of diminishing returns, it is simply that the successful businesses here are successful for the same reasons a business is successful back in the UK or America.

If you have insufficient capital, or a poor location or no real business plan then just because it is only a few dollars to get Dong going doesn’t mean it has any special chance of success or even survival just because it is started in the Philippines. I was in a Chilli’s franchise tonight. Cost of the meals are over P200 and well into P400 with some even more. Drinks were fairly pricey too, but you can have the buy one take one beer deal for P65 that works out pretty good value. Anyway, the points I am making are twofold. Firstly it took a fair chunk of change to put up a decent business like Chilli’s in the first place and secondly, there is money in this country!

There may not be much to spread around in the province where the asawa comes from but in Quezon City there is a lot of it! I was speaking to a car dealer who brings in “gray imports”. On his lot he had a VW Tuareg, a Dodge Ram, a Mercedes, three Honda’s and so on. Plus a 2004 Range Rover HSE going for P6 million! Given the fact Land Rover pulled out of the country due to the gray import market back dooring them for billions, I wonder where the eventual buyer will get it serviced? Woe betide him if it breaks down or the computer chip needs a zap, nobody has the diagnostic gear to fix it!

So between the gray imports and the authorised importers, there has never been more new car metal on the roads in Manila. And it all costs money because financing here is a joke. I left Chilli’s and walked down T.Morato Avenue and turned into Timog Avenue, part of the South Triangle area of Quezon City. The place is wall to wall restaurants, coffee shops, liquor stores, aerobics gyms and anything else you want. By the time you sweat your way onto Quezon Avenue the giant KTV lounges and nite clubs fill your horizon with their ridiculous prices and lurid neon lies of love and popularity. No money here? Rubbish!

So if you don’t have real chunks of cash, then you are in the realm of the SME or small to medium enterprise, which officially lists a micro business as being worth up to P3 million, not including buildings etc!!!! Small businesses are P3-P15 million and medium sized P15-P100 million. Anything with more investment than that gets to call itself a large, or big business. If you don’t believe me, check the official DOLE figures! So unless you have US$60,000 or more in the venture, it isn’t even a “small” business! 

Getting back into Manila, my old stomping grounds, after a two year hiatus in Cebu has proven more than merely interesting. I have really gone out of my way to get back into the street vibe that oozes from this city’s pores. Everywhere you turn in Manila somebody is trying to turn a peso. Across the street from me every morning at 5.30am a young woman sets up a simple stall selling corn, sits there all day and by nightfall it still looks like she hasn’t sold a single cob.

Every second house has its obligatory sari sari store attached, the barred serving hatch the sign of a micro enterprise in the making. On the street corners, food vendors offer BBQ meat, BBQ bananas, squid balls, taho and anything else you can think of. There are ten million people in this city and it seems that at any one time five million of them are trying to sell the other five million something. Like I said, there is money in this country, it’s just a question of who has it and how much at any one time.