Creating a Tiger Economy

Before we go to the aspects of mindset change of entrepreneurs, let's first take a look at the big picture of entrepreneurship development in the Asian setting. Michael Hobday [1] has made an analysis of the success common to Newly Industrialized Economies in South East Asia like Taiwan, Singapore and South Korea. He enumerated four factors critical in their growth. These are:

1. Macroeconomic stability, coupled with the commitment of each government to industrial development, provided firms with an environment for long-term planning and investment.

2. Outward-looking, export-led industrial policies that provide the demand-pull for innovation.

3. Development of appropriate educational and technological infrastructure to supply a sufficient number of technicians and engineers for firms to utilize.

4. Strong entrepreneurial base to lead industrialization.

Macroeconomic Stability

Contrary to common perception, the form of government is not important for economic growth. It could be democratic, parliamentary or, even, communism as long as it provides macroeconomic stability. Let me illustrate:

Traffic is part of metropolitan life. We all wish there would be no traffic but in reality, we only needed it to be stable. If the travel time from your house to your office is 1 hour and office starts at 9am, you usually leave the house at 745am. If travel time is 2 hours, you leave the house at 645am. It would seem that the employee with the 2 hours travel time is at a disadvantage but they both arrive on time. Actually, if the employee thinks that travel time is too long, he could start looking for work nearer his home. But if traffic fluctuates everyday, they wouldn't be able to estimate their travel time causing them to be to early is some days and too late on other days.

It is the same with business. Macroeconomic factors like inflation, politics, foreign exchange could either be high or low but as long as it is stable, businessmen can adjust in order to remain profitable. Businesses survives on trends and the survival of the company is dependent on the how the entrepreneur perceives trends and reacts to it. For example, the call center industry. A few years ago the trend of the peso-dollar exchange rate is towards a stronger dollar ($1=P50 going to $1:P60). Based on this, call center companies paid in dollars by their US clients was able to invest well on their equipment, office and pays their call center agents well. But when the peso strengthened ($1:P44 and might go $1:P40), the business is not as lucrative anymore and they are wondering if they are paying their agents too much. Many Call Centers got in trouble and some did close down.

Export Oriented Economy

In this modern age of globalization, there is no such thing as a local market catered by only by local products. Advances in transportation and communication has enabled foreign companies to invade almost every industry. Local players are at a disadvantage because global players has economies of scale ( large production volumes means lower cost per unit ). One way to fight it is for the government to impose tariff and higher taxes on imported goods but it is not a sustainable solution. They say the best defense is offense. The sustainable solution would be for local companies to aim to export their products, too.

It might seem impossible for small local entrepreneurs to do that but it is important that they are aware of this issue but . The government should encourage local entrepreneurs to become exporters and local entrepreneurs must start dreaming that their enterprise will someday be global in nature. [ see topic on "Vision" under the Sustaining the Revolution heading]

Strengthen Educational and Technological Infrastructure

The strength of a nation is it's people. This is the reason why the government should strengthen its educational and technological infrastructure. We think the local and national government is already doing all they can to improve this. We should also do our part.

The strength of a nation is it's people. The capability of any enterprise is dependent on each and every employee. And a nation's economic growth is dependent on the growth and competitiveness of it's local businesses. Being a good employee is not usually associated with nationalism but it is. By contributing to the growth of the company, by producing high quality products and services, ordinary employees are contributing to the economy.

Having a good education and continuing your education even after graduation is not just the duty of the government or the company you are working for, it is a personal duty. And with the Internet, learning has never been easier. You could learn anything from fixing you house to making a robot. One just need to have a good learning attitude.

Strong Entrepreneurial Base

The technopreneurial revolution would seem to address only the fourth requirements, which is a strong entrepreneurial base. If the Philippines is to attain the status of a Newly Industrialized Economy, the four factors must all be developed, however, not at the same time.

We choose the promotion of technology-based entrepreneurship as a starting point for national development because it is something that we, small groups and individuals, could do. Ideally, the first 3 conditions must first be fulfilled (by the government) in order to create an environment ideal for entrepreneurial growth. But should we just wait for everything to be ideal before trying to become technopreneurs?

"God, grant me the courage to change the things I can, the serenity to accept the things I can't, and the wisdom to know the difference."

-- St. Francis Assisi

We can't change the global economy but we could change ourselves and the people around us and we will start with that. Through continuous improvement, Filipinos can become great entrepreneurs and create globally competitive companies. Through this handbook, we hope that they can develop globally competitive companies.


[1] Michael Hobday, “Innovation in East Asia: The Challenge to Japan”, Hants, UK: Edward Elgar Publishing Ltd., 1997.

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