Instead of jobs, more young Filipinos are looking for profitable franchises
CHERYL M. ARCIBAL, GMANews.TV
07/01/2009 | 07:01 PM
MANILA, Philippines - More and more young Filipinos are opting to put up their own businesses instead of becoming salaried, eight-to-five office workers.
Considered as members of the “second-generation" of franchisers, these young Filipinos – many of them in their early 20s – have been encouraged to pursue franchising because their parents have operated successful franchised business themselves, officers of the Philippine Franchise Association (PFA) said on Wednesday.
“Prospects of franchising in the Philippines are good," said Froilan Manotok, South Luzon Operations head of Red Ribbon and the vice president for membership of the Philippine Franchise Association (PFA). “Worldwide, people are losing jobs and they turn to small businesses and franchises for incomes."
Young entrepreneurs set up their own franchise and to “learn the ropes" of running their own businesses, said Lin Deres, Franchise Relations Manager of Goldilocks Bakeshop Inc. and overall chairman of the Philippine International Franchise Conference & Expo (Pifce) 2009.
“In our case, those who want to avail of franchises are the second-generation franchisers. Usually, their parents are successful franchisers and they want to avail of the same opportunity," said Manotok.
The PFA said the “opportunity remains" in the Philippines especially with the continued growth of remittances from overseas Filipinos, a major disposable income source for most of the population.
The franchising industry will grow anywhere from five to ten percent, Robert Trota, president of (PFA) and Max’s Restaurant and director of Krispy Kreme Philippines.
Besides underscoring the opportunity in the domestic market, Trota cited expansion plans of various franchisers.
The Generics Pharmacy, which only started operations three years ago, is already looking to have 300 stores by 2012, Trota said.
“It's the same with Mang Inasal, which presently has 100 stores and is also targeting to have 300 by 2012. The expansion is still there because we believe that Filipinos are resilient," Trota said.
By the end of the year, Manotok said the group wants to convince 30 more businesses to open their operations to franchising. The group currently has 200 members.
Despite the projected expansion of PFA members and the growth of the industry, Manotok and Deres said the government could do much more to encourage more young Filipinos to be entrepreneurs.
Funding is a concern that government financial institutions could address, Deres said.
Entrepreneurs would also be helped if government could establish “a one-stop-shop to fulfill requirements of the Department of Trade and Industry and Intellectual Property Office," she added.
“These people also need to know what to do and where to go to set up their businesses," said Deres.
Another concern is the “complicated" process of getting permits in the municipality and city levels, Manotok added. He cited that among the friendliest locations for businesses were Taguig, Makati, and Pasig.
“We hope that they can synchronize the permits in the national and local government level," Manotok said.
Several local universities and colleges were also commended by PFA for offering entrepreneurship and franchising courses and subjects to students.
“There are more and more schools offering these courses and that's very encouraging," said Deres. - GMANews.TV
Considered as members of the “second-generation" of franchisers, these young Filipinos – many of them in their early 20s – have been encouraged to pursue franchising because their parents have operated successful franchised business themselves, officers of the Philippine Franchise Association (PFA) said on Wednesday.
“Prospects of franchising in the Philippines are good," said Froilan Manotok, South Luzon Operations head of Red Ribbon and the vice president for membership of the Philippine Franchise Association (PFA). “Worldwide, people are losing jobs and they turn to small businesses and franchises for incomes."
Young entrepreneurs set up their own franchise and to “learn the ropes" of running their own businesses, said Lin Deres, Franchise Relations Manager of Goldilocks Bakeshop Inc. and overall chairman of the Philippine International Franchise Conference & Expo (Pifce) 2009.
“In our case, those who want to avail of franchises are the second-generation franchisers. Usually, their parents are successful franchisers and they want to avail of the same opportunity," said Manotok.
The PFA said the “opportunity remains" in the Philippines especially with the continued growth of remittances from overseas Filipinos, a major disposable income source for most of the population.
The franchising industry will grow anywhere from five to ten percent, Robert Trota, president of (PFA) and Max’s Restaurant and director of Krispy Kreme Philippines.
Besides underscoring the opportunity in the domestic market, Trota cited expansion plans of various franchisers.
The Generics Pharmacy, which only started operations three years ago, is already looking to have 300 stores by 2012, Trota said.
“It's the same with Mang Inasal, which presently has 100 stores and is also targeting to have 300 by 2012. The expansion is still there because we believe that Filipinos are resilient," Trota said.
By the end of the year, Manotok said the group wants to convince 30 more businesses to open their operations to franchising. The group currently has 200 members.
Despite the projected expansion of PFA members and the growth of the industry, Manotok and Deres said the government could do much more to encourage more young Filipinos to be entrepreneurs.
Funding is a concern that government financial institutions could address, Deres said.
Entrepreneurs would also be helped if government could establish “a one-stop-shop to fulfill requirements of the Department of Trade and Industry and Intellectual Property Office," she added.
“These people also need to know what to do and where to go to set up their businesses," said Deres.
Another concern is the “complicated" process of getting permits in the municipality and city levels, Manotok added. He cited that among the friendliest locations for businesses were Taguig, Makati, and Pasig.
“We hope that they can synchronize the permits in the national and local government level," Manotok said.
Several local universities and colleges were also commended by PFA for offering entrepreneurship and franchising courses and subjects to students.
“There are more and more schools offering these courses and that's very encouraging," said Deres. - GMANews.TV
