IN the distant past, entrepreneurs did not have to worry about such incidents as phishing, internet outages, software errors, malware, ransomware and data leaks. But they had to endure cold calls, flying overseas just for meetings and snail mail proposals.
When the world become interconnected, computer bugs surfaced. When email and other apps facilitated real-time communication, online scams proliferated. When it became possible to run a business online, fraudulent transactions invaded the web.
In microeconomics, we are reminded, time and again, that profit maximization is the goal. If we look solely at the global gross domestic product growth trend, we’re considerably successful.
Businessmen from older generations, for sure, have higher trust in tested and proven strategies, while young entrepreneurs are keener on thinking about what’s next. According to a study titled, “Performance configurations over time: Implications for growth-and profit-oriented strategies,” by P. Steffens, P. Davidsson and J. Fitzsimmons (2009), younger firms enjoy “discovery advantages” while the established ones look for “exploitation advantages.”
Coincidentally, new firms are faced with challenges that impact not just their profit maximization journey, but their personal and community aspirations as well — not to mention issues that could endanger the future of the next generations. And while “more money” is still a priority, learning and sustainability are fortunately critical factors for them as well.
They know that new problems need new solutions.
‘Millennipreneurs’
Millennial entrepreneurs or “millennipreneurs” seem more open to failure than boomers, according to Molly Petrilla in “Millennipreneurs’ are starting more businesses, targeting higher profits.” This is good news, because young entrepreneurs can dedicate more time and energy toward experimentation and pilot testing to address new concerns, such as global warming.
The Philippines is one of the few countries directly affected by climate change. Filipino companies have been bracing for impact and preparing for the worst. Nonetheless, there is still much to do to target both profit and sustainability to alleviate the effects of climate change.
Luckily, young Pinoy small and medium enterprise (SME) owners are more sustainability conscious. From choosing to source raw materials only from green firms, to promoting people’s development as one of their business priorities, the way they show they care for the community and the planet is limitless.
One of the nonbank financing companies in the country, Global Dominion, initiated a recognition program for entrepreneurs that shows C.A.R.E. (concern for community, altruism, relationships and the environment). It is a step to help influence more SMEs to become sustainable and innovative.
“In the case of the Philippines, SMEs need innovation and better access to funding to grow commercially and sustainably,” Global Dominion COO Maria Carmela Laarni Felicidario said in an interview. “We highly believe in the potential of rising entrepreneurs to not just help develop our economy but consider people and the planet as well.”
Artificial intelligence (AI) has been synonymous with innovation nowadays. In business and economic forums, the use of AI and its impact on the economy have been thoroughly discussed. However, one of the few aspects still hanging is how the public or private sector can help more SMEs learn more about AI for their benefit. More efficient and effective SMEs will help create a better environment for markets and industries.
Business tools with AI remain relatively costly for microentrepreneurs, with the exception of those with free trials and free versions but with limited output. Poor internet connectivity infrastructure in some rural areas remains a huge challenge for SMEs to experience the benefits of AI.
Explainable AI, which is a set of methods that allows human users to better comprehend the outputs created by algorithms to improve transparency and interpretation in AI models, is one of the not-so-recent innovations that businesses in the Philippines have yet to explore and maximize. It can shorten time and reduce the effort needed to analyze data in many fields and industries, especially finance.
These developments make it easier for young entrepreneurs to pursue a better business future for the Philippines. At the end of the day, firms that also care for human capital and the environment are more attractive to investors than those solely focused on money.
It is now in the hands of the new generation of Filipino SMEs to maximize the potential of technology to improve business operations and maximize profit at the same time. They must gain the trust of business leaders from the previous generations to make the necessary changes to drive the country at the same speed in innovation as in the developed countries.
Aian Guanzon is a business development professional. He has academic degrees in nursing, economics and marketing. He is interested and experienced in fintech, insurance, financing and BPO industries.
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