OVERSEAS Filipino workers (OFWs) have surely thought about starting their own business when it’s time to go back home. But it’s easier said than done.
Aside from common startup concerns, such as access to funds, registrations and other necessities, they worry about who’s going to help operate the business, who will manage the finances and what can be done to keep the company abreast with consumer trends.
While OFWs think starting a business in the Philippines can be done with someone they trust, the fact is, they’re virtually coming in from the cold. While the thought of earning enough from working abroad and starting a business in the motherland is exciting, the reality is, they seriously need an enormous amount of help and guidance.
Training and improving access to startup funds help alleviate challenges. But the perils go beyond money and knowledge. M. D. G. Z. Roldan, author of the study “Reintegrating Returning Overseas Filipino Workers through Entrepreneurship,” emphasized the need for “fine-tuning” the government’s migrant entrepreneurship program based on the actual needs and experiences of the returning OFWs’ beneficiaries.
OFWs’ families are, of course, concerned about how much money startup businesses can produce, and if that amount is even near what their loved ones earn abroad. Stability is another question, since some products and services are seasonal, or have volatile demand. And the question of “how much income is enough for an OFW to be driven to leave their work abroad and depend on their businesses in the Philippines” always comes up.
Having a good amount of capital and runway is quintessential. Some banks and nonbank financing institutions focus on giving OFWs access to credit. Global Cebuana, for one, has a dedicated OFW loan with low interest rates and fast approval tailor-fit to the needs of Filipinos working (or about to be deployed) overseas.
The financing company, founded in 2023 by GDFI Holdings and Cebuana Lhuillier, aims to empower OFWs to achieve their goals and dreams, including putting up a startup business.
Nearly one out of three OFWs start their own businesses, according to a study by C. B. Niverba, M. P. B. Abanilla, S. M. O. Gregorio, R. L. Lumanlan, D. V. R. Moralde, & J. G. Fronda (“From Employment to Entrepreneurship: Profiling Filipino Overseas Workers in Abu Dhabi, UAE with and without Business Ventures”). Their motivations include financial independence and skills utilization. They also vastly consider concurrent entrepreneurship and full-time business ventures. The “skills utilization” part says they learn from their own experiences and are thus inclined to start a business out of them, which is a positive trait.
Specialty clinics, restaurants
Specialty clinics and restaurants are some of the startup types OFWs get into. Since it is better to be an expert in the field they want to explore further, nurses and chefs are on top of these businesses. Beyond their skills, they need to consider the market and the location of the business. For instance, it’s not right to open a cold drinks store in a location with temperatures below the country’s low average.
Assuming the aspiring entrepreneur has the skills, knowledge, funds and the staff to run it, making it happen is the next big step. The question to keep asking is, “How will this new business help me, my family and the community?” The ideal direction is to consequently work together not just for the future of one Filipino but for many.
A motivation that goes beyond “the money” can positively influence the development of the OFW’s entrepreneurial journey and has been proven to be effective in driving the business through almost all known challenges.
Aian Guanzon is part of Global Cebuana, with expertise in business development. He has academic degrees in nursing, economics and marketing. He is interested and has experience in fintech, insurance and BPO.
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