In the recently concluded ME Naman! Convention organized by PinoyME, 80 of the top micro-entrepreneurs from all over the Philippines swapped stories amongst themselves and with convention organizers. The convention may have been put up to benefit the M.E. participants, but through the various life and business lessons which they generously shared, even the organizers found themselves tremendously enriched by the activity.

Here are some of the insights on the characteristics of top Filipino micro-entrepreneurs after three exciting and significant days of inputs, storytelling, and networking:

1. An MBA from the School of Hard Knocks

Our CEO and President Dan Songco put it succintly when he said that the participants “view hardship as a form of investment.”

It is obvious that most of the clients of micro-finance institutions hail from the urban and rural poor. What makes the Filipino micro-entrepreneur different from others who share their background is that they view poverty as grounds for enriching experiential learning. They do not deny where they hail from as the noveau riche would do – they embrace it and tell stories about it in order to inspire other people to go into business.

Take the case of 2006 Citi-Micro-entrepreneur of the Year awardee Consuelo Valenzuela. Consuelo is not afraid to tell people that she used to beg her neighbors for food. It is heartening to know that now she employs these same neighbors in her handicrafts business. She tells the story, not from haughtiness, but from compassion: that she is able to give back to the people who helped them when they were in need.

2. Hindrances Serve as Triggers into Entrepreneurship

Business they say is only for the courageous. This is true because setting up an enterprise presents a slew of problems and difficulties that can test any individual. If one is in an unstable circumstance, going into entrepreneurship is tantamount to hitting herself or himself with a rock.

The micro-entrepreneurs at ME Naman! are a tough breed considering that they started their business on rocky ground. Quiteria Gulfan started her ice cream business in order to support her family after her son got sick in 1990. Boyaks Malinao started his hair styling salon after his father’s death in 2005. Zenaida Nunez, the owner of a motorcycle spare parts store, claims that highly technical nature of the business frightened her and depressed her.

As these examples show, circumstances that would cripple anyone’s motivation and willpower only push top micro-entrepreneurs forward.

3. Sees Opportunities Even in Small Things

One man’s trash bin is another person’s gold heap. This is also true when it comes to business ideas. Small innocuous details can spell the beginnings of a great product.

But in order to turn these minute observations into these opportunities, micro-entrepreneurs first appreciate these things enough in order to highlight their unseen potentials. Before Mommy Juling’s Special Atchara was marketed as “special,” it was just another side dish lying at the Ortiz dinner table. It took Dave Ortiz, Rhona Ortiz’s husband, to notice how the extra-crispy texture and the taste elevates this particular atchara recipe from the rest. Erwin and Cindy Perena love the pili nut enough that they are able to make their own kind of dessert from it called Wrapsody.

Everyday items open themselves up for reinvention every day. But it takes an uncommon sense to turn them into products that are worth offering to others. Micro-entrepreneurs first celebrate the newness found in simple things and then share it with other people through their businesses.

4. Hunger for Growth

During the input activities in the ME Naman! Convention, host Cris Lomboy remarked at how rapt the faces of the participants were while listening to the business talks. “Lahat sila nakikinig. Nakikita yung kanilang thirst for knowledge.”

It is in the nature of micro-entrepreneurs to always be hungry for improvement and knowledge. Like what they learned in Vicente Romano’s talk on Innovation, not presenting buyers with anything new is a death wish.

It is not enough that knowledge remains theoretical, it should also reflect in the entrepreneur’s business practice. The most common thing they do is to diversify. Bebelyn Codilla from Davao initially received Php 5,000 from the Ad Jesum Foundation to start a sari-sari store. When the store picked up, she bought a fishing boat and went into trading. She recently bought a fleet of trucks to participate in the moving and shipping business. Engineer John Haskel Calpito was not content with a pig farm, he also went into the mineral water industry. He uses the advancements in communication technology in order to manage his three enterprises.

5. Advocates of Hard Work

A clich?is only a clich?because of the large degree of truth found in it. There are a lot of get rich quick schemes and easy money modus operandi out there but nothing trumps hard work as the path to success.

If there’s any one success tip the micro-entrepreneurs dispensed, it always involves hard work. The entrepreneurs who shared their stories often invoked the amount of hardship they faced when starting out whether their business might be in peanut butter or motorcycle parts. Their decision was lucid and although it was risky, they all state that there is no gap in capital or knowledge that cannot be filled in by hard work.

6. Passion Fuels Business Practice

There’s a saying that if you go make something you love your livelihood, you don’t have to work for the rest of your life. If there’s anything that transforms anything it touches, whether an activity or a product – it’s passion. Business practice becomes art; what was a mere job becomes a craft.

The top micro-entrepreneurs are excited about the products they sell because they’ve been consumed by them. Boyaks Malinao was already a broadcast technician but he left the world of fixing TV cameras and radio booths to become a hair stylist. He was in love with the idea of transforming people through the use of scissors and combs. The true secret of the Fragos in making Forest Wood Garden grow does not lie merely in business acumen but in their love of plants.

Products and services do not break out to the customers first; they must already be hits to the entrepreneurs themselves. With passion, hard work becomes play and everyday objects brim with potential and the spark necessary to attract customers becomes obvious.

According to Ms. Myra Frago: “It’s not just about the money. You have to love what you do because if you don’t it will manifest in your work.”

7. Faith in God

Businessmen and entrepreneurs are sometimes portrayed as callous and shrewd individuals who are not above making a fast buck over others. Filipino micro-entrepreneurs, on the other hand, are conscientious types who never forget to pay homage to the real boss: God:

“At ‘wag makakalimot na manalig sa Kanya. Magsikap, magtiwala sa sarili, at ‘wag pababayaan ang produkto,” – Rhona “Bhing” Ortiz.

“Maniwala ka sa Diyos. Maniwala ka sa sarili mo.” – Jocelyn de Guzman

“Para makuha mo talaga ‘yung goal mo, you must sacrifice and work hard, saka s’yempre may takot ka sa Taas,” – Boyaks Malinao

Business is often called an arena and more often than not, it requires an inordinate amount of self-reliance. It is suffice to say that business breeds self-reliant men and women. Micro-entrepreneurs never credit their success just to themselves; they often invoke God into the picture.

Where spirituality is not a necessity to get ahead, soulfulness becomes their competitive advantage. Consuelo Valenzuela is not the only player in the sabutan handicraft business in Quezon. She says that her competitors are larger and far more better equipped. Her enterprise looked tiny compared to these other companies. But this gap only made her faith in God bigger. “Walang kahit anong imposible, gaano kahirap mahirap man tingnan ang mga ito, kapag nagdarasal ka.” Consuelo said.

God is often called the Creator. He has made everything out of nothing. By praying, micro-entrepreneurs are putting highly difficult endeavors in the framework of the possible. What becomes possible to the mind turns itself into the actionable. There is some credit due to praying when it comes to business.

We at PinoyME are looking forward to other ME Naman Conventions and ME Naman! roadshows in order to learn more from Filipino micro-entrepreneurs. Hearing the stories and insights of our micro-entrepreneurs is both an honor and an education for all of us.

Does your Microfinance Institution have what it takes to win a Paeng?

The Rafael Buenaventura Microfinance Center Foundation Inc. (RBB Foundation), together with PinoyMe, Microfinance Council of the Philippines, RBAP Microenterprise Access to Banking Services (MABS) and the Bangko Sentral ng Pilipinas (BSP) present the 1st ever Rafael B. Buenaventura Award for Outstanding Microfinance Institutions.

The late Rafael B. Buenaventura, lovingly referred to as Paeng, was BSP governor from 1995 to 2005. During his time in the central bank, he instituted several key policy reforms in the system that MFIs and MEs are enjoying today. One these policies involve the extensive adoption of microfinance in the local financial system. Governor Paeng believed that microfinance had a positive transformational impact in the fight against poverty.

Aside from honoring the memory of the BSP governor, the awards are also meant to highlight the outstanding achievements of microfinance institutions. What judges will be looking at are the MFI’s pioneering work.Pioneering work entails advancements made by MFIs in introducing innovations in terms of products, services, or delivery mechanisms or the penetration of new areas and markets. The said projects will also be judged on their worthiness of emulation and their empowerment of communities, sectors, and barangays.

Five MFIs have a chance to receive the awards. These winning organizations will then receive technical assistance on a wide range of areas which will be tailor-made according to their needs with the end goal of helping them become commercially sustainable.

Kindly follow these instructions to join:

1. Download the nomination forms at http://rbb.bapcb.com/p_downloadables.htm

2. Have the most Senior Officer of your MFI fill in the entry form. Make sure that she/he affixes her or his signature in the forms.

3. Submit your accomplished nomination forms to your Network / Council / Association / Federation on or before May 15, 2012. For those who are not members of any network, association, council or federation may submit your forms directly to the Microfinance Council of the Philippines, Inc. (MCPI).

The RBB Foundation and the board of judges are waiting for your nominations!

The Me Naman! Pinoy Microentrepreneurs’ Convention held at the Diosdado Macapagal Hall of the Land Bank Plaza last February 23 – 24, 2012 was an affair to remember for many of its participants and observers from microfinance institutions and various NGOs. Aside from strengthening the business practices of the 80 plus microentrepreneurs in attendance, the event also coincided with the celebration of the PinoyME consortium’s 6th anniversary.

Prior to the convention, the participants attended the Opening Program at Palm Plaza Hotel in Ermita. Mr. Dan Songco, President and CEO of the PinoyME Foundation, opened the program and welcomed the participants with a message, exhorting the microentrepreneurs to have pride in themselves and in their businesses. According to Mr. Songco, the organization and its partners are very inspired by the microentrepreneur’s hard work and commitment to improve their lives. In turn, the PinoyME Consortium has set a goal of reaching a funding of 5 Billion in order to improve the lives of 5 million poor Filipinos. Mr. Songco attributes the consortium’s drive to its founder former President Corazon C. Aquino’s commitment to continue the People Power Revolution to improve people’s lives through microfinance and microenterprise.

Representatives from Punla Sa Tao Foundation facilitated a series of ice-breaker activities in order to get the microentrepreneurs to get to know each other. There was a Human Bingo game designed to measure the participants’ tenacity and a group game in order for the to practice their negotiation skills. There was also an assessment activity which aimed to clarify each participant’s motivation, courage to face risks, decision making, work-life balance, etc. Mr. Cris Lomboy presided over the program orientation. He went through each prospective activity that the participants will take part in in the next two days. Several rules and regulations were also brought up in order to facilitate a worry-free convention for all those in attendance. The organizers ended the session at around 7 pm in order for the participants to prepare for the convention proper.

Viel Aquino-Dee with the opening remarks

After the break, Mr. Cris Lomboy presided over the NegoSosyalan session wherein big companies presented business opportunities to the participants. Tables were prepared for San Miguel, Creamline, Petron, PLDT SME, PLDT KaAsenso, Gifts and Graces Fair Trade Foundation.

Immediately after NegoSosyalan, two more input sessions were held and the participants were divided into two groups. One group went to the session of Ms. Jennifer Reyes, from the Center for Small Entrepreneurs. Ms. Reyes talked about the responsibilities of microentrepreneurs in terms of taxes and benefits and how responsibly paying one’s dues also provides protection for the individual and her business. Manok Mabuhay’s Reuel Virtucio talked about business ethics and how doing business can go hand in hand with one’s conscience.

The participants were treated to a back-to-back treat to cap their day. Celebrity host Boy Abunda graced ME Naman! and held an hour and a half long talk show session with some of the microentrepreneurs. The lucky guests were Consuelo Valenzuela who owns a Sabutan handicrafts company; Corazon Bautista who sells RTW blouses and skirts, and Erwin Pereña who manufactures non-traditional pili nut snacks. The microentrepreneurs found that the time with Mr. Abunda slipped by too fast; his insights were engaging and his wit entertained them to no end. After everyone has had their dinner, Mr. Dan Songo ushered in his longtime friend Ms. Leah Navarro to entertain the microentrepreneurs. Ms. Navarro sang her hits from the 80s and once in a while the microentrepreneurs chimed in. After an hour’s worth of reminiscing, Ms. Navarro led a tearful audience to sing “Handog ng Pilipino sa Mundo” in remembrance of Tita Cory and the People Power Revolution.

The third day of the conference was also chock-full of learning for the participants. Mr. Paul Schaefer, Resident Representative of the Hanns Seidel Foundation, started the morning with a speech. He exhorted the Filipinos as guideposts for the country’s progress. Mr. Cris Lomboy initiated a recap of the first day of the convention proper in order to provide continuity. After reviewing the events of the first day, Rico Gonzalez of X Change stepped up to the podium and delivered a lecture on business models. Afterwards Bam Aquino hosted a forum highlighting the experiences of Mr. Bobby Claudio of Toby’s Sports and Mr. Rey Lapid of R. Lapid’s Chicharon and Barbecue. Ms. Quiteria Gulfan and Ms. Rona Ortiz represented the microentrepreneurs. Afterwards the participants were broken into groups in order for them to talk with the businessmen for a mentoring session called Payong Bossing. Meanwhile Mr. Cris Lomboy hosted another market encounter session for the MEs to present their products to potential markets. An hour later, everyone in the DM hall were treated to a film showing of Mr. Julian Ablaza’s film “Producto ng Pilipinas” highlighting the struggles of Ms. Jennilyn “Ehje” Antonio and several MEs to run their businesses while managing their personal issues. The star of the film, Ms. Antonio herself, took to the stage for an interview regarding her experiences and the making of the film. Ms. Maria Agnes Angeles, the SVP of SME and Microfinance of the Plantersbank; Mr. Jerry Clavesillas, Program Manager of DTI; Dr. Teresita Fortuna, Regional Director for NCR of DOST; and Ms. Leticia Villa, First Vice President and head of the Programs Management of Landbank, talked about the various programs their institutions can offer to microentrepreneurs. Mr. Joey Bermudez, Chair of Maybridge Asia, did a talk on wealth management entitled “Kumita sa Kita.”

After the various input sessions, it was time for the participants to educate the organizers on their feedback of the event and other needs that would be redressed in future conventions. The participants were grouped together by tables and were asked about what they learned, what they want to learn in the future and what advice they could give to their fellow businessmen. When the insights were collected, Mr. Dan Songco joined Mr. Cris Lomboy in gleaning the key insights from the participants’ output.

The attendees stated their belief in hard work and that there is always room for improvement no matter if they think they’ve reached the best position in the industry. They also learned new skills and insights which will help them with their practices. They want to learn how to reach bigger markets, product development, merchandising, and sales.

When the learning has all been summed up, Mr. Dan Songco announced that all the microenterpreneurs who had their product photographed will be uploaded into the People Powered Markets Website in partnership with EYP.Ph. He also mentioned that everyone has a chance to have a profile. Currently there are also talks regarding holding ME Naman! Conventions in Visayas and Mindanao in the future.

The participants were then treated to a raffle with NorthFace backpacks from PLDT SME Nation and computers and cellphones courtesy of the Conventions’ valued sponsors: Hanns Seidel Foundation, Petron Foundation, Peace and Equity Foundation, PLDT KaAsenso, Directories Philippines Corporation, Plantersbank, Jollibee Foundation, CITI Microentrepreneur of the Year Awards, and Landbank.

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By Dan Songco, President and CEO, PinoyME Foundation

In our boardroom, we have a blown up photo of Tita Cory occupying 2/3rd of the wall. No meeting would pass that we do not rest our eyes on her smiling face. Her picture is a silent witness to all our agreements and our plans, the commitments we make to our partners and our clients. Now that she’s gone, this is one way we can continue to preserve her presence, our founder. In a way, through her picture, she is still a part of every decision we make.

She was a simple woman – what people referred to in the 80s as a typical housewife. But it is also this simplicity that made her larger than life. She is able to connect to people to all levels of society on the strength of her sincerity. Even her wisdom is the wisdom of a mother; she looked at problems like they were problems of a household. And like a mother, who knew the needs of her children, she possessed a deep understanding of what would truly benefit people.

I believe that it is this particular instinct of her that led her to microfinance. During one of her birthdays, she visited a client community of CARD in Las Piñas. The women microentrepreneurs wore their best clothes for her visit and even put on some make up. Tita Cory became fascinated with them and the way they carried themselves. “Ang ganda, ganda niyo naman,” she said, “nag-make up pa kayo. Ang gaganda ninyo.” To which the women replied, “Siyempre ma’m, kayo ang kaharap namin.” Later on when the trip was over, Tita Cory would remark “The people under microfinance, they are different. They are confident. They have self-determination. They didn’t ask me for anything unlike other people who would approach me. They shared their life experiences. They made their own money. They are working hard and they are proud of what they are doing. These are the kind of people we need for our country.”

Even though she was educated in the States, Tita Cory rejected sophistication. There were many times during our meetings to establish PinoyMe that she appeared to be disinterested in technical discussions. The way she lived her life, which was one of quiet faith, seems to have equipped her with a far reaching knowledge and sense of what is right. In one meeting, she remarked that “Ako simple lang ang gusto kong mangyari sa atin dito. Madami akong kaibigang nagtatanong sa akin: Cory gusto naming tumulong gumawang livelihood project. Saan kami pupunta? Sino’ng pwede naming kausapin? – What I want PinoyME to do is to be able to connect people to the communities that need us.” True enough, when we were developing the program for our organization, we realized that that was the role we were going to play because it was what the market needed. We will be an intermediary between those who have the financial and technical resources and those who need them.

Her prescience, her preference to stick to the essentials and her sincerity gave her the ability to draw people to her cause. She was able to raise 20 million pesos for the starting funds of PinoyME over lunch. Our board, a veritable financial and business dream team, joined at her simple invitation. No one refused. Only the truly stone-hearted can say no to her. She was also very easy to follow since she led by example.

Tita Cory exerted tremendous influence but she did not let that get to her. If a meeting was scheduled for 10 am to 12 pm, she’d insist on doing it at 9 am to 11 am. She didn’t want free lunches and hated inconveniencing others for her sake. Despite this, she was not above helping us with our requests. In 2008, we needed to raise funds from the US and we asked her to appear in a video for this campaign. She readily said yes on the condition that we do it immediately. We were able to shoot her. Two days after we shot the video, her family announced that she was withdrawing from public life because of cancer. This was her pamana to PinoyME, a personal testimony of how we intend to help the poor through microfinance and how people can get involved.

The lady in yellow was able to generate a large amount of faith by giving it to others first. During a large convention organized by Center for Community Transformation or CCT, she was the keynote speaker. During her speech, she said “Alam niyo simple lang pinagdadasal ko, kung bibigyan pa akong Diyos ng panahon, gusto ko sanang makita ang araw na maabot ang goal ng PinoyME na makatulong sa 5 million mahihirap sa pamamagitan ng microfinance.”Although we had our reservations about the projection, we pursued the challenge because she imbibed and internalized the mission of PinoyME. Driven by her vision and inspired by her leadership, we had worked hard in the last five years with microfinance institutions in reaching that goal together.

Tita Cory gave the Philippine microfinance its heart and soul. She underscored the dignity of the poor and emphasized it whenever she could. She showed us that microfinance is not so much as giving capital in order to start enterprises, it is also about showing other people our faith in their ability to take care of themselves and to rise above their circumstances. Giving small and manageable loans may be a simple gesture, but it is made all the more powerful because of its humanizing effect.

According to Archbishop Socrates Villegas, it will take several lifetimes before we see another leader like Tita Cory again. I agree. But as long as there are people willing to manifest their faith to others and to sacrifice for them, she will live on and on.

Today, the 25th of January 2012, we remember Tita Cory on her 79th birthday. Tita Cory, wherever you are we want you to know that our lives are now much better because of you and we will never be the same without you.

Corazon Bautista recieves her award as Citi Masikap Microentrepreneur of the Year.

“Huwag po tayong mawawalan ng pananalig sa Panginoon. Yun ang isa sa pinaka the best advice. Kasi para sa akin ako ay pinagkatiwalaan ng Tulay sa Pag-Unlad, Inc. (TSPI) sa pinahiram sa akin na panimulang capital. Kung hindi ipinagkatiwala sa akin ito ng Panginoon kahit sa maliit na halaga, wala ako ngayon,” she added.

The ready-to wear clothing (RTW) manufacturer affectionately called “Nanay Cora” was recognized as the 2011 National Awardee for the Masikap category of the Citi MOTY Awards. The awards program recognizes the efforts and successes of outstanding microentrepreneurs.

The MOTY Awards has two categories. The Masikap category, which Nanay Cora won, recognizes Filipinos whose efforts have provided a sustainable livelihood for their families. The Maunlad category meanwhile acknowledges microentrepreneurs whose businesses now provide employment to others.

Carina Gonato of Consolacio, Cebu was the National Awardee for the Maunlad category.
Citi Country Officer and PinoyME trustee Sanjiv Vohra congratulated the outstanding microentrepreneurs. “Our finalists exhibited true courage, vision, and entrepreneurial skill to improve their lives and provide opportunities for their community.”

From seamstress to outstanding microentrepreneur

Nanay Cora used to work as a seamstress. However, her family had a hard time making ends meet with her salary and the income of her husband, who was a construction worker.
Buoyed by dreams of a more prosperous tomorrow, Nanay Cora applied for a loan from TSPI. With only P5,000 as capital, she sewed 100 pairs of shorts and sold this for a profit at the Pasig Market. Industry and the determination to strive for her family has brought Nanay Cora the success she enjoys today. She now supplies RTW to five Metro Manila Malls, and employs 19 people. More importantly, her profit has allowed her to send her children to a private school.

‘The best-tasting chicken lumpia’

Maunlad National Awardee Carina Gonato

She cooked, sold, and asked for feedbacks from people in her neighborhood to find the lumpia that would satisfy her customers. Her product turned out to be a hit—when it was served at the MOTY awards, one of the guests called it the “best-tasting chicken lumpia.”

Started with a small loan from the First AgroIndustrial Rural Bank, Inc., her Natecks chicken lumpia is now being sold and enjoyed in various provinces including Manila, Masbate, Negros, Samar, Surigao, Zamboanga and Dipolog.

From a capital of P1,000.00 or 5 kilos of chicken, Carina now runs a business with an annual profit of 2.4 million. Her microenterprise moreover employs 49 people.

Celebrating hope and industry

Nanay Cora and Carina received P200,000 each as National Awardees. Meanwhile recipients of the Island Awards received a price of P100,000 each.

The Island Awardees for the Masikap category are: Jocelyn de Guzman (manufacturer of slippers and sandals), Anastacio Postrero (seaweed farming), and Danelito Castro (herbal oil manufacturer).

Meanwhile the Island Awardees for the Maunlad category are: Natividad Gabriel (deep offshore fishing, dried fish processing), John Cabillon (seafood buy and sell and sari-sari store owner), and Andresa Javines (manufacturer of tuna packing materials and gel ice).
The co-chairperson of the selection committee included Vohra and Banco Sentral ng Pilipinas governor Amando Tetangco. Other members of the selection committee were: Ateneo de Manila University professor Dr. Darwin Yu, former monetary board member Antonino Alindogan Jr., GMA Network chair Atty. Felipe Gozon, and Entrepreneurs School of Asia president Vivian Tan.

The judges were Philippine Daily Inquirer chairperson Marixi Prieto, GoNegosyo founder Joey Concepcion, and Ayala Land chair Fernando Zobel.

The MOTY awards was launched to celebrate Citibank Philippines’ centennial year in country. Now in its 9th year, this celebration of the triumph of hope and industry has not only galvanized support for the growth of microfinance, it has also provided encouragement for aspiring microentrepreneurs.