Thursday, February 12, 2009

Micro-entrepreneurship in a Battered Economy

Business opportunities are getting bleaker as the global economic recession deepens. Just observe the number of shopping bags people do carry nowadays. Seldom we see tote too many amid crowded malls. Reasons to this are obvious. News about the worsening economy is well above our heads and we are conditioned that everyone; big and small, are all vulnerable.

But I don’t fully agree, because the degree is not equally as critical for small enterprises as it has on big-businesses. In fact, today’s crisis offers a bigger and yet, a novel marketing dimension more favorable for new small businesses starting from the ground up. The revival of post World War II models may emerge, but never be in the same essence since revolutionary changes have already taken place. While nobody can say for sure what exactly it could be, your knowledge how these changes will likely occur is your best bet. The changes to expect could well mean returning back to the traditional way of retailing.

The Philippine Vendors Association (PVA) believes that ways are sliding back to the basics but not without modification. ICT and other modern technologies require us to rethink and reinvent traditional methods. While it is well likely that new business models will develop, navigating towards an unknown stream is nevertheless crucial. And to vouchsafe our survival upon our own gut-feel and intuition is not enough unless we take this journey together.

Recently, the PVA has successfully obtained dealership arrangements with three direct-suppliers. The first is engaged in the importation and distribution of motorcycles. The second is a direct importer of household items (“no dust-bag” vacuum cleaners, fruit juicers, blenders and rotary grill), and the third is a wholesaler of computer accessories and multimedia supplies (blank CDs, DVDs, USBs, etc.). More dealership agreements are expected shortly. But I cannot disclose any of these yet until its finality.

PVA offers three ways to start your business. A member may start as: (a) business operator (b) a dealer and, (c) operator and dealer. There is no difficulty in imagining how an entrepreneur can start operating a small business out of these products. Consider:

1) Derive and enjoy the benefits of owning a dust-bag free vacuum cleaner for your own personal use. Buy why not use it instead of keeping it idle? You can maximize its use by either: using the same unit to demonstrate the product to your neighbors, sell them the vacuum cleaner and earn COMMISSION. Or, you can start your own home cleaning business servicing your office or neighbors.
The same principle applies to other household wares – fruit juicers, blenders, rotary grill. You can start selling the wares and use it at the same time to serve and sell cold refreshments.

2) Motorcycles. Financing is made possible through a micro-finance rural bank, depending on your eligibility. There is a model available ideal for either single or tricycle operations. In rural areas where slopes are steep, the use of “single” (no cab attached) is more appropriate in ferrying passengers. You can also use the motorbike for servicing homes and offices of their cleaning needs.

3) Computer accessories and multimedia supplies. No need to further elaborate. Just imagine how profitable it would be for you and convenient for others, if have blank CDs, and DVDs (branded and generic), CD cases, card readers, keyboards, mouse, hub, Bluetooth, etc., on your shelves or in your drawer. You may well become the next CDR-Prince or Princess in your community or even in the office.

In gist, PVA is here to support our members on their way to progress and self-sustainability. There is a power in group leverage and collective bargaining waiting to be unleashed.

You are encouraged to become one of the empowered ENTREPINOY. Be one of the beneficiaries of this BAYANIHAN concept PVA is developing.

Sincerely,


Tony Israel - Chairman, PVA

Monday, February 2, 2009

Metro Manila: A Cruel Place for Street Vendors

A few years ago, he stopped illegal vendors from plying their trade on sidewalks by ordering his men to spray kerosene on the goods they were selling. In this manner, he reasoned, there is no way they can recover their investments. He confiscated their carts, and detained those who persisted in occupying the sidewalks (David, R. 2007).

"Bayani Fernando and the Urban Poor." Public Lives; Inquirer Opinion and Columns, First Posted 03:32am (Mla time) 09/01/2007.


Excerpted from Bhowmik, S. (2005), Street Vendors in Asia: A Review. ECONOMIC AND POLITICAL WEEKLY, May 28 to June 04, 2005.


The main problems faced by the street vendors is that there are no demarcated areas for them to operate. Street food vendors do not have access to piped water and they are hence rendered illegal on health grounds. Street vendors are also blamed for the filth on the pavements and for causing traffic problems. The attitude of the government towards them can be gauged from a report, quoted below, on the latest moves to get them off the streets.

Officials in the Philippines are planning to clear illegal street sellers off pavements by spraying their goods with kerosene. Manila Development Authority chairman Bayani Fernando says the move will make the goods unsellable (sic) and soon make street vending unprofitable.

He has lost patience after the failure of other moves to combat illegal sellers. He plans teams of officials armed with plastic spray bottles filled with kerosene to hit vendors’ stalls without warning.

Human rights groups are criticising the measure, but Mr. Fernando seems unconcerned about the fire safety aspect of dousing materials in flammable liquid. He is unhappy about the litter left behind by street sellers and occasional traffic jams they cause by blocking streets, reports the Straits Times, quoting the Manila Standard newspaper. Mr Fernando said: “They can run, but they can no longer sell their goods once we have sprayed these with gas. Eventually, they will lose capital and stop illegal vending. People will no longer buy items that smell of, or are soaked in gasoline, particularly edible goods” [Ananova: Story filed: 14:56 Sunday, August 11, 2002].

Displaced Workers May Swell Vendor Population

Hayag sa balita ang pagkawala ng libu-libong trabaho sa mga Pinoy. Ito’y mapasa-bansa o abroad man. Sa pagkalampag ng mga manggagawang nawalan ng trabaho sa DOLE - upang hingi-an ng ayuda o buffer, marami ang umaasa na ang munting-tulong na kanilang matatanggap ay makakatawid sa pansamantalang kawalan.

At kung makatanggap man ng ayuda mula sa gobyerno o ng separation (severance) pay mula sa kumpanyang nagtiklop-banig, marahil ang ilan ay mag-iisip ng maliit na negosyong na maaring pagsimulan. Habang ang iba nama’y naubusan na ng pondo bago pa man dumating ang pagkakataong makapamili ng isang produktibong hakbang - tulad ng pagtitinda.

Ang pagtitinda – gayong isang marangal na hanapbuhay, ay mga kalakip na balakid. Partikular na rito ang renta sa puwesto. Kaya’t sa halip na ibuhos ang mumunting-kapital sa upa, isa sa mga alternatibong maaaring maisipan ay ang magtinda sa bangketa. Lamang, ang paraang ito’y hindi sang-ayon sa pinaiiral na batas.

Sa kabilang banda, ang pagpapa-iral ng batas laban sa mga iligal street vendors dito sa Pilipinas ay may dalawang karakter: minsa’y mahigpit, minsa’y maluwag. Kumbaga’y maligamgam o bakla. Ang mariing tinututulan dito ng sinomang may pusong makatao, ay ang pagwasak ng mga paninda o pag-kumpiska ng walang suli-an. At tiyak, bukod sa multa, goodbye na rin ang pinuhunan mo. Kaya’t imbes na kumita, mauuwi lamang sa wala ang lahat ng pagod at mumunting kapital.

At sa lalong tumitinding lagay ng ekonomiya, marahil ay wala pa sa hinagap ng Pamahalaang Arroyo ang nakaambang pag-lobo ng bilang ng mga vendors mapa-lisensyado man o hindi. Sa humigit 8 taon sa puwesto, hindi pa rin na-babanaag ng gobyernong ito ang halaga ng mga vendors sa paghahatid ng mga daily essentials sa bawat’t ordinaryong Pilipino.

Dahil rito, at matapos ang paulit-ulit na pag-alimura sa dignidad ng mga manininda (sa tuwing hinahabol at hinahampas ng mga autoridad); walang pa ring malinaw na batas o alituntuning nagbibigay proteksiyon sa karapatan ng mga vendors.

Yan ang hirap sa mga Politkong-Pinoy. Palibhasa’y mahirap, kinakaya-kaya. At sino nga ba ang politikong nahalal ang totoo sa kaniyang sinabing: Siya’y para sa mahirap?

Instead of harassing and hunting vendors down like criminals, the Arroyo Government is encouraged to promote micro-entrepreneurship. Sadly, too much politics drains down rational thinking favoring the rich, the powerful and the famous. Just who among those politicos can budge against the will of rich mall owners?

Can you please name somebody whom you might know?