The danger of OFWs starting businesses

Overseas Filipino workers (OFWs) are rightfully called modern-day heroes. Their sacrifices have sustained countless families and propped up the Philippine economy through billions in remittances.

However, behind the success stories, many OFWs face heartbreaking realities—especially when it comes to starting businesses.

Entrepreneurship is often seen as the ultimate dream for OFWs, a way to finally come home for good and enjoy financial independence. While the intention is noble, the risk is real.

In fact, the danger is highest when OFWs attempt to start businesses while still working abroad.

Here are the reasons why:

1. Funding without leading

One of the biggest mistakes OFWs make is becoming “absentee entrepreneurs.” You provide the capital, but someone else runs the business.

In many cases, this person is a family member or friend. While there are exceptions, the sad reality is that trust doesn’t always translate to competence—or integrity.

You’re working 12-hour shifts abroad, sending your hard-earned money back home, and hoping your sari-sari store, tricycle business or mini grocery will grow.

But you’re not there to monitor the daily operations. You’re not seeing where the money goes. You don’t know if the earnings are being reinvested or spent.

I’ve heard countless stories where the OFW is left with nothing: the business folds, relationships are strained and years of sacrifice are lost.

Entrepreneurship requires hands-on leadership. Capital alone does not guarantee success.

2. Lack of business know-how

Many OFWs dive into business without the proper training or experience. They might be great at their jobs overseas—as nurses, engineers or technicians—but business is a different world. It demands knowledge in operations, marketing, accounting and more.

Starting a business just because a relative or friend suggests it—or because it worked for someone else—is not a wise strategy. Every business involves risk, and without education and preparation, that risk multiplies.

Before putting money into a venture, OFWs should invest first in financial literacy and entrepreneurial training.

Learn before you launch.

3. Over-romanticizing the ‘come-home-for-good’ dream

It’s natural for OFWs to dream of coming home for good.

But it must be backed by a solid plan, not just emotion. Many OFWs are so eager to return that they rush into business without counting the cost.

A business isn’t a magic exit from working abroad. In fact, it can create more stress, especially when it starts to fail. Instead of being a pathway to freedom, it becomes a trap of debt and regret.

The transition from employment to entrepreneurship should be gradual and well-planned. Don’t use your business as a ticket home unless it has already proven to be stable, profitable and sustainable.

4. Pressure from family and community

Let’s be honest. Many OFWs are pressured to support not just their immediate family but their extended relatives.

Often, the idea of starting a business is influenced by well-meaning—but sometimes entitled—family members who promise to “take care of it.”

This dynamic can lead to emotional manipulation:

“Kaya mo na ‘yan; ikaw na ang nasa abroad!” (You can take care of it; you’re the one based overseas.)

“Para naman makauwi ka na!” (It’s so that you can come home)

And so, out of guilt or desire to please, OFWs pour money into businesses they did not study or plan for.

Entrepreneurship requires objectivity. It cannot be driven by pressure or utang na loob (debt of gratitude).

Always remember: your hard-earned money deserves wise stewardship.

5. Starting with the wrong mindset

Another danger is the belief that entrepreneurship is the answer to all financial problems. It’s not. Most small businesses in the Philippines don’t last beyond three years. Success in business is not guaranteed.

Some OFWs pour everything they have—retirement money, savings, even borrowed funds—into one business venture. It’s an all-or-nothing move.

When it doesn’t work out, the result is devastating: no savings, no income and in some cases, no way to go back abroad.

If you are going to start a business, do it with the mindset of a steward, not a gambler.

Start small. Test the waters. Grow gradually.

Focus first on building a strong financial foundation. This means having an emergency fund, insurance, zero debt and savings set aside for capital, not borrowed money.

At the same time, educate yourself through business courses or mentors. Start small while abroad, and wait until you’re home or have a trusted partner before going all in.

I believe many OFWs can become great entrepreneurs. But it must be done wisely, not emotionally. Don’t let your years of sacrifice go to waste because of poor planning and misplaced trust.

Remember: A business can be a blessing—but only if built with vision, discipline and stewardship.

Source: Inquirer

Philippines falls in global startup index for 4th year in a row

The Philippines dropped four spots in the 2025 Global Startup Ecosystem Index amid persistent gaps in infrastructure and regulations, according to global research firm StartupBlink.

In this year’s index, the Philippines slipped to 64th place out of 100 countries with a score of 2.237.

This was the fourth straight year of decline for the Philippines, which ranked 52nd in 2021, 57th in 2022, 59th in 2023 and 60th in 2024.

“The ecosystem growth of the Philippines is around 0.56% this year, and it’s being overtaken even by locations that are also decreasing in the rankings,” StartupBlink Head of Data & Consulting Ghers Fisman said.

Funding by Year

The Philippines’ annual ecosystem growth rate was the lowest in Southeast Asia.

To increase the Philippines’ score, Mr. Fisman said the process of establishing a startup at the business level should be easier. He also noted the importance of faster and wider internet access for Philippine entrepreneurs.

The Global Startup Ecosystem Index evaluates startup ecosystems across 100 countries and 1,000 cities, using scores that assess the quantity and quality of startups and their existing business environment.

“The Philippines is making progress toward becoming a formidable startup ecosystem in the Asia-Pacific region,” StartupBlink said in the report.

The Philippines received total funding of $273.6 million (around P15.22 billion) last year, according to the report.

“The Philippines’ startup ecosystem is anchored by robust sectors such as fintech (financial technology), e-commerce, healthtech, edtech, and software-as-a-service. This diversification is propelled by a large digital consumer base and increasing regional demand,” it said.

StartupBlink noted the Philippines’ attractiveness to foreign entrepreneurs and digital nomads “should allow for successful ecosystem growth — provided more of the local population embraces entrepreneurship.”

The Philippines has six cities in the global top 1,000, led by Manila.

Manila ranked 112th globally, dropping 11 spots from the previous year. It also dropped to 6th place in Southeast Asia rankings and was the only city to see a decline.

“The Philippines’ startup scene remains centralized in Manila, whose ecosystem is twelve times larger than Cebu City’s. This gap has more than doubled since 2020,” StartupBlink said.

However, Manila had the lowest ecosystem annual growth rate among cities in the Philippines at 2.6%.

Cebu City fell 10 spots globally to rank 469th, with an annual growth rate of 9%.

Davao City rose 163 spots to 580th spot globally, as its startup ecosystem grew by 97.7% last year.

Cagayan de Oro and Naga climbed the global rankings at 693rd and 767th, respectively.

New entrants to the global rankings include Iloilo City (744th), Cauayan City, Isabela (1,040th), and Solana City in Cagayan (1,170th).

“The Philippines stands as Southeast Asia’s fastest-growing digital economy, reflecting a dynamic consumer market ripe for innovative startups,” StartupBlink  said.

However, the Philippines faces several challenges that are hampering its development as a mature startup ecosystem.

“The lack of infrastructure is a limiting factor to the country’s economic growth, and entrepreneurs struggle with slow regulatory support for their startups,” it added.

John Paolo R. Rivera, senior research fellow at the Philippine Institute for Development Studies, said the country’s continued decline in the global startup rankings reflect structural gaps in the ecosystem.

“Improving our rank will depend not on isolated programs but on building a dynamic innovation ecosystem with strong interlinkages across the government, academe, industry, and startup founders themselves,” he said.

Key gaps in the local startup scene include poor early-stage funding support, uneven regional startup development, regulatory bottlenecks, and a “brain drain” of digital and entrepreneurial talent, Mr. Rivera said.

To address this, the Philippine government must adequately fund and fully implement the Philippine Startup Development Program, reduce bureaucratic red tape, and harmonize startup registrations and incentives, he added.

Venture capitalists and the private sector should also expand early-stage funding, mentorship, and link Filipino startups to global markets. Academic institutions can support student-founded ventures through incubation, intellectual property protection, and seed grants, Mr. Rivera said.

Source: Business World

Inclusive procurement for women empowerment

The struggles faced by micro, small and medium enterprises (MSMEs) to bid and participate in government procurement opportunities are quite different from large enterprises, and the struggle is even more apparent for women micro, small and medium enterprises (WMSMEs).

Recent studies show the potential of MSMEs to transform our economy and promote social equity, especially when women entrepreneurs are able to participate.

This was the topic of a recent talk during the 2024 Procurement Summit on Oct. 21, organized by the Government Procurement Policy Board -Technical Support Office, with the theme “Leveraging Local MSMEs for Inclusive and Sustainable Procurement”.

Current state of WMSMEs

The impact of women entrepreneurs in the economy cannot be denied as they drive economic growth and contribute to achieving different sustainable development goals. Based on the 2018 data of Statista, a global data and business intelligence platform, on the leading industries in the MSME sector, around 88 percent of entrepreneurs in the Philippines engaged in retail or wholesale were women; and at least 40 percent were engaged in arts and culture, materials or manufacturing, food processing and agriculture. The government has the capacity to leverage its significant market reach to influence and shape how businesses create and process products and services to the public. It can, in turn, influence public demand and create opportunities for women, including consumer awareness, to achieve sustainable and inclusive procurement practices. This also means that our country can employ equitable and inclusive procurement policies to promote significant socioeconomic change for women and their businesses.

Recommendations for the private and public sectors

By including WMSMEs in government procurement, the government is assured that economic benefits are widely and justly distributed because research shows that women often invest a high proportion of their income to their family and community compared with their male counterparts, which leads to transformative improvement of the family’s well-being and enhancement of community development.

For the private sector

1. Set targets/goals on the percentage of total purchases to be sourced from WMSMEs. By actively seeking out and engaging with women entrepreneurs, companies will diversify their supply chains and will help break some deeply systemic barriers that hinder women from participating in procurement.

2. Establish partnerships with organizations that support women entrepreneurs to identify suppliers and for ease of connections with WMSMEs.

3. Integrate gender-responsive criteria in supplier selection and accreditation. When evaluating potential suppliers, companies can include criteria that assess the supplier’s commitment to gender-responsive policies to promote gender diversity in the workforce and any other initiatives that will promote women empowerment within their business. Integrating this criteria into the supplier selection process not only encourages suppliers to adopt more inclusive practices but also helps provide a competitive advantage to those who prioritize gender responsiveness.

4. Adopt inclusive and gender-responsive procurement policies. Implementing supplier diversity is an effective strategy that explicitly seeks inclusion of women-owned and women-led businesses in the supply chain. Through this approach, we can strategically promote gender equality within the business by supporting potential women suppliers.

For the public sector

1. Strictly implement the provisions of Republic Act No. 9501, or the Magna Carta for MSMEs, which mandates government agencies to allocate 20 percent of all their procurement opportunities for goods and services to MSMEs. Though no specific targets have been set for WMSMEs that comprise about 56 percent of MSMEs, they will nonetheless benefit. Preferably, a specific target is set for WMSMEs.

2. Incorporate gender-responsive criteria in bidding evaluation. As many WMSMEs are often small, they face challenges in competing with large companies for government contracts. To enable WMSMEs to participate, among the criteria that could be incorporated in the evaluation of bids from larger companies should be a commitment to source a percentage of their own purchases from WMSMEs, and the presence of policies that promote gender equality in their organizations. This approach could help level the playing field for smaller businesses and is aligned with the Magna Carta, enabling government spending to contribute to the economic empowerment of women. To further encourage WMSMEs to participate in public procurement, the government can provide support and resources to organize all women consortia, where WMSMEs can pool their resources and share their expertise.

3. Utilize the gender and development (GAD) budget of all government agencies and instrumentalities for procurement from WMSMEs. Based on the approved national budget of P5.768 trillion, even if only 1 percent of the 5-percent GAD budget of approximately P57.68 billion is used for purchases from WMSMEs, can you imagine the impact that this will create to the woman, her family and her community?

4. Link government incentives to gender-responsive procurement practices. Government agencies, such as the Department of Trade and Industry, which is responsible for MSME development, could include in their evaluation criteria for the grant of incentives a commitment to source from WMSMEs or to implement gender diversity initiatives. Government can thus encourage businesses to give priority to gender equality in their operations, amplifying the impact of government mechanisms.

‘When she bids, we benefit’

Taking a collective action to build a more equitable, inclusive society can transform our economy where women have equal opportunities to reach their full potential. The private and public sectors must work together to empower women so we can achieve inclusive procurement practices.

When she bids, we benefit; ensuring participation of WMSMEs in procurement is not just a matter of economic necessity­—it is a moral imperative. Gender-responsive procurement will not only benefit WMSMEs but also contribute to a more diverse and resilient economy, leading to greater social and economic prosperity for all.

Source: Inquirer