Entrepreneurship is a popular career path for many Filipinos looking for financial independence and creative freedom. However, embarking on this journey requires a deep understanding of the different types of entrepreneurship available to you.
Each type of entrepreneurship has its unique characteristics, advantages, and challenges. Knowing which type of entrepreneurship suits your personality, goals, and resources can help you increase your chances of success.
Moreover, understanding the different types of entrepreneurship can provide valuable insights into the Philippine business landscape. It can help you identify the most lucrative industries, the emerging trends, and the key players.
In this article, we’ll delve into the ten most common types of entrepreneurship in the Philippines, including their defining features, examples, and opportunities. By the end of this article, you’ll have a better grasp of the diverse entrepreneurial landscape in the Philippines and which path to take to achieve your dreams.
Why is it important to understand the different types of entrepreneurship
In the ever-evolving world of entrepreneurship, it’s important to understand the different types of business ventures. It helps you to identify the suitable business type that aligns with your skills, resources, and goals.
Understanding the types of entrepreneurship can also aid in creating effective business plans and strategies. Moreover, comprehending these types can provide insights into industry trends, challenges, and growth opportunities.
In a nutshell, knowledge about the various types of entrepreneurship can empower individuals to make informed decisions and increase their chances of success as entrepreneurs.
1. Small business entrepreneurship
Small business entrepreneurship refers to the process of starting and managing a small-scale business venture. Small businesses are usually independently owned and operated with limited resources and a focus on serving a specific niche market.
Small business entrepreneurship examples in the Philippines
- Bibingkinitan – a fast-food chain that specialises in selling bibingka, a popular Filipino rice cake.
- Happy Skin – a cosmetics brand that offers quality products using local ingredients.
- Paper Chic Studio – a stationery store that offers personalised paper products and gifts.
- Manang’s Chicken – a fast-food chain that offers delicious Filipino-style fried chicken.
These successful small businesses have been able to thrive in the competitive Philippine market by offering unique products and services, targeting specific niches, and effectively managing their resources.
2. Social entrepreneurship
Social entrepreneurship is a type of entrepreneurship that focuses on solving social and environmental issues through innovative business solutions. Social entrepreneurs are driven by a desire to create positive social impact while also generating profit.
Social entrepreneurship examples in the Philippines
- Bayani Brew – a social enterprise that produces organic teas made from local ingredients while also providing livelihood opportunities to women farmers in rural communities.
- Rags2Riches – a company that turns scrap cloth into fashionable bags and accessories, providing sustainable livelihoods to low-income artisans.
By focusing on social impact, these businesses are not only making a difference in the lives of individuals and communities, but they are also contributing to the growth and development of the Philippine economy.
Technopreneurship is a type of entrepreneurship that involves using technology and innovation to create and grow a business. The process entails recognizing an issue or a vacancy in the market and devising a remedy by utilising technology.
Technopreneurs often focus on developing software, apps, or other tech-based products or services that can be scaled up quickly. This type of entrepreneurship requires a strong understanding of technology and business, as well as the ability to adapt quickly to changes in the market.
Technopreneurship examples in the Philippines
- Kalibrr – an online platform that connects job seekers with potential employers using artificial intelligence and machine learning algorithms.
- PayMaya – a digital wallet and online payment platform that allows users to pay bills, buy loads, and send money.
- Xurpas – a mobile content provider and mobile marketing solutions provider
- Coins.ph – a blockchain-based financial services platform that enables users to buy and sell cryptocurrency, as well as pay bills and buy mobile loads.
These businesses have leveraged technology to disrupt traditional industries and create new markets, demonstrating the potential for technopreneurship in the Philippines.
Agripreneurship is a type of entrepreneurship that focuses on agricultural businesses. It involves identifying opportunities in the agriculture sector and creating innovative solutions to meet the needs of the market.
This type of entrepreneurship is particularly important in the Philippines, where agriculture is one of the main industries and a significant contributor to the country’s economy.
Agripreneurship examples in the Philippines
- Green Earth Heritage Foundation – a social enterprise that promotes sustainable agriculture and agroforestry. They provide training and support to farmers to help them transition to organic farming methods and produce high-quality, environmentally friendly products.
- BukidFresh – an online marketplace that connects farmers directly to consumers. They offer a wide range of fresh produce and products from local farmers, including fruits, vegetables, meat, and dairy. By eliminating the middleman, BukidFresh is able to offer fair prices to both farmers and consumers, while also promoting sustainable farming practices.
- Plush and Play – a business that creates handcrafted plush toys using locally sourced materials. They work with small-scale farmers to obtain materials such as organic cotton and bamboo, supporting local communities and promoting sustainable sourcing practices.
These businesses not only generate profits but also contribute to the development of sustainable and eco-friendly solutions in agriculture, while also supporting local communities and farmers.
5. Creative Entrepreneurship
Creative entrepreneurship is a type of entrepreneurship that involves the creation, production, and distribution of creative and artistic products or services. It encompasses a wide range of industries, including art, design, music, film, fashion, and more.
It is becoming increasingly popular in today’s economy as more people seek to turn their hobbies and passions into profitable businesses.
Creative entrepreneurship examples in the Philippines
Habi Footwear – a shoe company that produces handwoven shoes made by local artisans using traditional Filipino weaving techniques.
Creative Definitions – a graphic design and branding agency that specialises in creating unique visual identities for businesses and organisations.
Anthill Fabric Gallery – a company that creates sustainable and eco-friendly fashion products using traditional Filipino fabrics.
Creative entrepreneurship not only contributes to the economy by creating jobs and generating income, but it also promotes cultural heritage and artistic expression.
By supporting creative small businesses, consumers can help preserve traditional craftsmanship and support local artists and designers.
6. Online Entrepreneurship
Online entrepreneurship, also known as e-entrepreneurship or digital entrepreneurship, refers to the act of creating, managing, and growing a business venture through online platforms such as websites, social media, e-commerce platforms, and mobile applications. It involves utilising digital tools and technologies to develop and market products or services, connect with customers, and manage business operations.
Online entrepreneurship has become increasingly popular in the Philippines, especially in the wake of the COVID-19 pandemic which has accelerated the shift to online channels. It offers a low barrier to entry and enables entrepreneurs to reach a global audience with minimal overhead costs.
Online entrepreneurship examples in the Philippines
- Shopee, Lazada, and Zalora – online marketplaces that offer a wide range of products to consumers.
- BeautyMNL – an online store that sells beauty and skincare products
- Kumu – a social media app that allows users to buy and sell products through live streaming.
Other examples of online entrepreneurship in the Philippines include freelancing, blogging, and affiliate marketing. Freelancing involves offering services such as writing, graphic design, and programming to clients online, while blogging and affiliate marketing involve creating content and promoting products or services through a website or social media platform.
7. Franchise Entrepreneurship
Franchise entrepreneurship is a type of business ownership where an individual (the franchisee) operates a business using the branding, products, and systems of an established company (the franchisor). The franchisee pays an initial fee to the franchisor, as well as ongoing royalties, in exchange for the right to use the franchisor’s intellectual property and business model.
One advantage of franchise entrepreneurship is that the franchisee can benefit from an established brand and a proven business model, which can increase the chances of success. The franchisor also provides ongoing support, such as training, marketing, and operational assistance.
Franchise entrepreneurship examples in the Philippines
- Jollibee – a fast food chain that offers Filipino-style burgers, fried chicken, and other menu items.
- 7-Eleven – a convenience store that offers a variety of snacks, beverages, and other products.
- The Generics Pharmacy – a pharmacy that offers affordable generic medicines.
- Ministop – a convenience store that offers a range of food and beverage items, including Japanese-inspired snacks.
These franchise businesses have been successful in the Philippines due to their popularity and strong brand recognition, as well as their ability to adapt to the local market by offering products that appeal to Filipino consumers.
Intrapreneurship is a type of entrepreneurship where employees within a company are encouraged to think and act like entrepreneurs, taking risks and coming up with innovative ideas to improve the company’s performance.
Intrapreneurship can be seen as a way for companies to foster a culture of creativity and innovation from within, and can lead to new products, services, and processes that can help the company stay competitive in the market.
Intrapreneurship examples in the Philippines
- Jollibee Foods Corporation – Jollibee is a fast-food chain that has become a household name in the Philippines. It was started by Tony Tan Caktiong, who encouraged his employees to come up with new ideas and innovations to improve the company’s offerings.
This led to the creation of some of Jollibee’s most popular menu items, such as the Chickenjoy and Jolly Spaghetti.
- Procter & Gamble Philippines – Procter & Gamble is a global consumer goods company that has been operating in the Philippines for over 80 years.
The company encourages its employees to come up with new product ideas and innovations, which has led to the successful launch of several new products in the Philippines, such as Safeguard soap and Pantene shampoo.
- Smart Communications, Inc. – Smart Communications is a telecommunications company that has been operating in the Philippines for over 20 years. The company encourages its employees to think like entrepreneurs and come up with new ideas to improve its services.
This has led to the successful launch of several new products and services, such as the Smart Money mobile banking service and the Smart LTE mobile data network.
9. Micro Entrepreneurship
Micro entrepreneurship is a type of entrepreneurship that involves starting and running a small business with a minimal amount of capital and resources. It often involves providing basic goods and services to the local community, and the primary goal is to generate income for the entrepreneur and their family.
Micro entrepreneurs often operate in the informal sector, meaning they are not registered with the government and may not have access to formal business training or financial resources.
Micro entrepreneurship examples in the Philippines
“Balut” industry – a type of boiled fertilised duck egg that is a popular delicacy in the country. The industry employs thousands of people across the country, from the egg collectors and farmers to the vendors and distributors.
“pasalubong” or souvenir industry – sells locally-made products to tourists visiting the country. These products range from handicrafts, local delicacies, and other souvenir items that are unique to specific regions in the Philippines.
Other examples include home-based businesses such as handicrafts and small-scale food processing, as well as online selling through social media platforms.
Micro entrepreneurship plays a vital role in the economy of the Philippines by providing employment opportunities, generating income, and contributing to the growth of local communities.
Starting your entrepreneurial journey
The aforementioned list showcases the different types of entrepreneurship one can opt for to kick start their career in the Philippines. However, it’s important to note that entrepreneurship requires substantial investments of time and resources, and overnight success is unlikely.
To build a flourishing career, it’s crucial to put in persistent effort and approach things in the right manner. Additionally, be sure to explore our articles on motivational quotes and enhancing your confidence as an entrepreneur to continually develop and strengthen yourself.