An entrepreneur development program : capacity building for young entrepreneurs / Daisy Doctor Cayos

Year : 2013

Number of Pages : 70 leaves

Adviser : Dr. Roger D. Posadas

Executive Summary

Entrepreneurs are considered as the drivers for economic growth. In the Philippines, as of 2009, micro, small and medium sized enterprises (mSME) formed 99.6 percent of the total number of business establishments. According to the Department of Trade and Industry, mSMEs contribute almost 63.2 percent of the current employment rate in the Philippine labor force, and around 35.7 percent total sales and census value-added in the manufacturing industry. However, the Philippine Development Plan 2011-2016 (PDP 2011-2016) reports that even if the mSME sector brings in a relatively good number in terms of total establishments in the country, total employment and value-added, it has not been "vigorous enough to propel the economy." This shortcoming of mSMEs is due to the fact that most Filipino entrepreneurs are not prepared to start a business, and they only learn on the job. Some are not even equipped to face problems that hinder their business' growth. According to the PDP Report, some of the challenges Filipino entrepreneurs encounter are 1) High cost of doing business and lack of access to finance, 2) Lack of information needed for market access and business environment and 3) Low productivity and competitiveness. While the aforementioned hindrances seem systemic, the problems may also be attributed to the level of capacity and preparedness of the business owners from start-up to growth. The challenge is to educate, equip and train students to become future entrepreneurs and existing entrepreneurs to become more than mere wholesalers or traders. Entrepreneurs should learn to set their standards high and aim at becoming innovators and producers. Moreover, aspiring young entrepreneurs must be trained as early as now on the relevant skills needed to succeed in entrepreneurial activities. Entrepreneurship education must be present throughout the levels of education, covering pre-school, elementary, secondary and tertiary levels, up to post graduate level, including other continuing education for adults. The objective of this project is to help future Filipino entrepreneurs excel in their entrepreneurial endeavors through an entrepreneur development program for young people-may they be inside or outside the education mainstream. To achieve the said objective, this project embarked on a review of the initiatives made in entrepreneurship, particularly in entrepreneurship education, including programs and policies related to it, by the Philippines and countries listed among the top five of the Global Competitive Index 2011-2012 Rankings. The list of countries was further narrowed down to three to represent three major regions : Singapore for Asia, Sweden for Europe and the US for the American region. Based on the initiatives and programs made by the countries presented in this study, there are key areas that seem to contribute greatly to the development of an entrepreneurship program. 1. Integration of entrepreneurship education in the existing curriculum. 2. Learning and development of entrepreneurship competencies through experiential learning. 3. Provisions for teachers of entrepreneurship. 4. Creating a network that fosters apprenticeship and mentoring. 5. Promoting creativity and innovation among young people. 6. Effective implementation of entrepreneurship and innovation policies. 7. Developing partnerships for entrepreneurship education. Human resource is still the most important natural resource a country could ever have. The low productivity and competitiveness among the country's entrepreneurs may be a reflection of the level of productivity and competitiveness of the country's human resource, as a whole. The Philippines can learn from Singapore who after a crisis, had turned to its human resource for hope, slowly cultivating a new set of skills to meet the standards of quality production. Therefore, investments must be actively made in the education and training of human resources to imbibe a new set of skills fit for the changing economy. The country needs to produce holistic and well-rounded individuals who manifest creativity, critical thinking, invention, innovation and entrepreneurship, across all levels of education, including continuing education. To achieve this, Government support is highly important. In that, institutions must also be available to receive this kind of emerging workforce. The government must provide schemes to propel entrepreneurship education and realize that giving appropriate education and training to young people to become future entrepreneurs can benefit the country's economy in the long run. This study also attempts to recommend an Entrepreneur Development Program (EDP) that would cover all functions of the major actors of entrepreneurship education. Along this line, this study further recommends the creation of a special Office or Committee (implementing body) to oversee the activities, take charge in coordination and ensure policy implementation, in relation with the said program. In addition, a framework for the implementation of the EDP has been formulated for possible streamlining, as well as a curriculum for tech-voc has been drafted for the EDP. This curriculum is a fusion of the Lifelong Learning Model and the Linear Model of Technological Innovation. The 2-year tech-voc curriculum shall provide adequate training for the students to be prepared to either start a business (with inclination to technology-based industry) or work for a company.