Sunday, October 28

Entrepreneurship is the Answer

The following message by JG, one of the most successful business
tycoons of all time to a graduating class is also an equally
noteworthy thought to all of us and the youth of our next generation,
hope you find time reading it...


I wish I were one of you today, instead of a 77-year-old man, giving a
speech you will probably forget when you wake up from your hangover
tomorrow. You may be surprised I feel this way. Many of you are
feeling fearful and apprehensive about your future. You are thinking
that, perhaps, your Ateneo diploma will not mean a whole lot in the
future in a country with too many problems. And you are probably
right. You are thinking that our country is slipping-no, sliding.
Again, you may be right.

Twenty years ago, we were at par with countries like Thailand ,
Malaysia , and Singapore . Today, we are left way behind. You know the
facts. Twenty years ago, the per capita income of the Filipino was 1,000 US dollars.
Today, it's 1,100 dollars. That's a growth of only ten percent in twenty
years. Meanwhile, Thailand 's per capita income today is double ours;
Malaysia , triple ours; and Singapore , almost twenty times ours.

With globalization coming, you know it is even more urgent to wake up.
Trade barriers are falling, which means we will have to compete
harder. In the new world, entrepreneurs will be forced to invest their
money where it is most efficient. And that is not necessarily in the
Philippines . Even for Filipino entrepreneurs, that can be the case.
For example, a Filipino brand like Maxx candy can be manufactured in
Bangkok-where labor, taxes, power and financing are cheaper and more
efficient-and then exported to other ASEAN countries. This will be a common
scenario-if things do not change.

Pretty soon, we will become a nation that buys everything and produces
practically nothing. We will be like the prodigal son who took his
father's money and spent it all. The difference is that we do not have
a generous father to run back to. But despite this, I am still very
excited about the future. I will tell you why later.

You have been taught at the Ateneo to be "a person for others." Of
course, that is noble: To serve your countrymen.

Question is: How?

And my answer is: Be an entrepreneur! You may think I am just a
foolish man talking mundane stuff when the question before him is
almost philosophical. But I am being very thoughtful here, and if I
may presume this about myself, being patriotic as well.

Entrepreneurship is the answer.

We need young people who will find the idea, grab the opportunity,
take risk, and set aside comfort to set up businesses that will
provide jobs.

But why? What are jobs?

Jobs are what allow people to feel useful and build their self-esteem.
Jobs make people productive members of the community. Jobs make people
feel they are worthy citizens. And jobs make a country worthy players in
the world market.

In that order of things, it is the entrepreneurs who have the power to
harness the creativity and talents of others to achieve a common good.
This should leave the world a better place than it was.

Let me make it clear: Job creation is a priority for any nation to
move forward. For example, it is the young entrepreneurs of Malaysia,
Thailand , and Singapore who created the dynamic businesses that have
propelled their countries to the top. Young people like yourselves.
Meanwhile, in the Philippines, progress is slow. Very little is new.
Hardly anything is fresh. With a few exceptions, the biggest companies
before the war-like PLDT, Ayala, and San Miguel-are still the biggest
companies today.

All right, being from the Ateneo, many of you probably have offers
from these corporations already. You may even have offers from JG
Summit. I say:
Great! Take these offers, work as hard as you can, learn everything
these companies can teach-and then leave! If you dream of creating
something great, do not let a 9-to-5 job-even a high-paying one-lull
you into a complacent, comfortable life. Let that high-paying job
propel you toward entrepreneurship instead.

When I speak of the hardship ahead, I do not mean to be skeptical but
realistic. Even you Ateneans, who are famous for your eloquence, you
cannot talk your way out of this one. There is nothing to do but to
deal with it. I learned this lesson when, as a 13-year-old, I lost my
dad. Before that, I was like many of you: a privileged kid. I went to
Cebu 's best school; lived in a big house; and got free entrance to
the Vision, the largest movie house in Cebu , which my father owned.

Then my dad died, and I lost all these. My family had become poor-poor
enough to split my family. My mother and five siblings moved to China
where the cost of living was lower. I was placed under the care of my
Grand Uncle Manuel Gotianuy, who put me through school. But just two
years later, the war broke out, and even my Uncle Manuel could no
longer see me through.

I was out in the streets-literally.

Looking back, this time was one of the best times of my life. We lost
everything, true, but so did everybody! War was the great equalizer.
In that setting, anyone who was willing to size up the situation, use
his wits, and work hard, could make it! It was every man for himself,
and I had to find a way to support myself and my family. I decided to
be a market vendor.

Why? Because it was something that I, a 15-year-old boy in short
pants, could do.

I started by selling simple products in the palengke half an hour by
bike from the city. I had a bicycle. I would wake up at five in the
morning, load thread, soap and candles into my bike, and rush to the
palengke. I would rent a stall for one peso a day, lay out my goods on
a table as big as this podium, and begin selling. I did that the whole

I sold about twenty pesos of goods every day. Today, twenty pesos will
only allow you to send twenty text messages to y our crush, but 63
years ago, it was enough to support my family. And it left me enough
to plow back into my small, but growing, business.

I was the youngest vendor in the palengke, but that didn't faze me. In
fact, I rather saw it as an opportunity. Remember, that was 63 years
and 100 pounds ago, so I could move faster, stay under the sun more,
and keep selling longer than everyone else.

Then, when I had enough money and more confidence, I decided to travel
to Manila from Cebu to sell all kinds of goods like rubber tires.
Instead of my bike, I now traveled on a batel-a boat so small that on
windless days, we would just float there. On bad days, the trip could
take two weeks! During one trip, our batel sank! We would have all
perished in the sea were it not for my inventory of tires. The
viajeros were happy because my tires saved their lives, and I was
happy because the viajeros, by hanging on to them, saved my tires. On
these long and lonely trips I had to entertain myself with books, like
Gone WithThe Wind.

After the war, I had saved up 50,000 pesos. That was when you could
buy a chicken for 20 centavos and a car for 2,000 pesos. I was 19
years old. Now I had enough money to bring my family home from China .
Once they were all here, they helped me expand our trading business to
include imports. Remember that the war had left the Philippines with
very few goods. So we imported whatever was needed and imported them
from everywhere-including used clothes and textile remnants from the
United States . We were probably the first ukay-ukay dealers here.

Then, when I had gained more experience and built my reputation, I
borrowed money from the bank and got into manufacturing. I saw that
coffee was abundant, and Nescafe of Nestle was too expensive for a
country still rebuilding from the war, so my company created Blend 45.
That was our first branded hit. And from there, we had enough profits
to launch Jack and Jill.

From one market stall, we are now in nine core businesses-includin g
retail, real estate, publishing, petrochemicals, textiles, banking,
food manufacturing, Cebu Pacific Air and Sun Cellular.

When we had shown success in the smaller businesses, we were able to
raise money in the capital markets-through IPOs and bond offerings--
and then get into more complex, capital-intensive enterprises. We did it
slow, but sure.

Success doesn't happen overnight. It's the small successes achieved
day by day that build a company. So, don't be impatient or focused on
immediate financial rewards. I only started flying business class when I
got too fat to fit in the economy seats.

And I even wore a used overcoat while courting my wife-it came from my
ukay-ukay business. Thank God Elizabeth didn't mind the mothball smell
of my coat or maybe she wouldn't have married me.

Save what you earn and plow it back.

And never forget your families! Your parents denied themselves many
things to send you here. They could have traveled around the world a
couple of times with the money they set aside for your education, and
your social life, and your comforts.

Remember them-and thank them.

When you have families of your own, you must be home with them for at
least one meal everyday. I did that while I was building my company.
Now, with all my six
children married, I ask that we spend every Sunday lunch together,
when everything under the sun is discussed. As it is with business, so
it is with family.
There are no short cuts for building either one. Remember, no short cuts.

Saint Ignatius of Loyola, your patron saint, and founder of this
450-year old organization I admire, described an ideal Jesuit as one
who "lives with one foot raised." I believe that means someone who is
always ready to respond to opportunities. Saint Ignatius knew that, to
build a successful organization, he needed to recruit and educate men
who were not afraid of change but were in fact excited by it. In fact,
the Jesuits were one of the earliest practitioners of globalization.
As early as the 16th century, upon reaching a foreign country, they
compiled dictionaries in local languages, like Tamil and Vietnamese,
so that they could spread their message in the local language. In a
few centuries, they have been able to spread their mission in many
countries through education.

The Jesuits have another quote. "Make the whole world your house"
which means that the ideal Jesuit must be at home everywhere. By
adapting to change , but at the same time staying true to their
beliefs, the Society of Jesus has become the long-lasting and
successful organization it is today and has made the world their house.

So, let's live with one foot raised in facing the next big
opportunity: globalization.

Globalization can be your greatest enemy. It will be your downfall if
you are too afraid and too weak to fight it out. But it can also be
your biggest ally. With the Asian Free Trade agreement and tariffs
near zero, your market has grown from 80 million Filipinos to half a
billion Southeast Asians. Imagine what that means to you as an
entrepreneur if you are able to find a need and fill it. And imagine,
too, what that will do for the economy of our country!

Yes, our government may not be perfect, and our economic environment
not ideal, but true entrepreneurs will find opportunities anywhere.
Look at the young Filipino entrepreneurs who made it. When I say
young-and I'm 77, remember-I am talking about those in their 50s and
below. Tony Tan of Jollibee, Ben Chan of Bench, Rolando Hortaleza of
Splash, and Wilson Lim of Abensons. They're the guys who weren't
content with the 9-to-5 job, who were willing to delay their
gratification and comfort, and who created something new, something
fresh. Something Filipinos are now very proud of. They all started
small but now sell their hamburgers, T-shirts and cosmetics in Asia,
America , and the Middle East In doing so, these young Filipino
entrepreneurs created jobs while doing something they were passionate

Globalization is an opportunity of a lifetime-for you. And that is why
I want to be out there with you instead of here behind this
podium-perhaps too old and too slow to seize the opportunities you can.

Let me leave you with one last thought.

Trade barriers have fallen. The only barriers left are the barriers
you have in your mind.

So, Ateneans, heed the call of entrepreneurship. With a little bit of
will and a little bit of imagination, you can turn this crisis into
your patriotic moment-and truly become a person for others.

"Live with one foot raised and make the world your house."

To this great University, my sincerest thanks for this singular honor
conferred on me today.

To the graduates, congratulations and Godspeed.

"Ad Majorem Dei Gloriam".

Thank you.


Senor Enrique said...

Deeply inspiring, Rowena. Many thanks for sharing.

ScroochChronicles said...

I love this speech. Very inspiring. And he remains so humble. Even his kids are very simple. One of the Gokongwei's was my classmate at the Ateneo. We were seatmates (Guzman and Gokongwei). I didn't even know that he was from that family. Ang simple niya!! Punkista pa nga. Nangongopya pa nga eh. Today he is the Vice-President of Robinson's Land. I doubt if he still remembers me. At least I have the distinction of having copied (and copied from) from a Gokongwei :)

denden said...

thanks for posting this very inspiring piece :)

annamanila said...

The graduation speaker sure knows what he's talking about. Entrepreneurship may be associated with capitalism, with profit motive. But so many entrepreneurs give benefits to their country and countrymen in ways that the most generous philantrophist can't. It is not giving the poor men some fish but teaching them how to fish ... giving them jobs and nurturing in them tthe productive spirit and work ethic.

Belle said...

i have friends (husband and wife)who started business on a shoestring, sometimes skipping a meal to save enough money to pay the employees. they became millionaire, of course, and now enjoying retirement.

rowena said...

Hi Senor Enrique, Cookie, Denden, Annamanila and Belle glad you like this post. Pardon my presentation, I was in a hurry for our Cagayan/Ilocos trip that I just copied the speech without editing the margins, fonts, lay out, etc. Just wanted to share this post to my fellow bloggers who are also thinking of doing the same thing, entrepreneurship. Will also post soon my new business venture, very much inspired by this speech.

Homelife said...

Thanks for posting this Rowena. Can I repost this in my site? Thanks for dropping by my site too. Be blessed!