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Why Many Filipinos are Poor

In this article, we are supposed to discuss why so many Filipinos are poor. Our interest was pricked by the assertions that “majority of Pinoys have the habit of thinking poor” and that “negosyo, ang sagot sa kahirapan.”

The original thrust is very interesting, especially if we consider that 34.2 percent of the Philippine population is living below the poverty line (NSO, 2000). Also, according to a survey conducted in September 2007, about nine million Filipino families (52%) consider themselves “mahirap” or poor. If the population is 88.57 million in August 2007, with a projected population of 90.46 million by 2008, then the high level of poverty is certainly a problem. There is no debate about that. The debate is on the cause of such poverty and equally on the solutions.

It’s tempting to discuss this subject matter and say that “majority of Pinoys have the habit of thinking poor“. It’s easy to say that the poor waste their hours sitting idly in the neighborhood store. “Tambay” is the word, I believe. This affliction, if we could consider it as such, is also present with the rich, except that they “make tambay” in malls and, more importantly, they have businesses, investments and savings that earn more money even if they’re just sitting around. We should not criticize the rich for that, but we should not also unfairly generalize that the poor is lazy — I have seen so many poor people doing backbreaking, honest labor under the sun all day.

Saying that business is the answer to poverty is understandable. The logic appears to be simple. Successful business generates employment, reducing unemployment rate. Work for more people is a good sign of progress, although this may be too simplistic considering that economic gains have not trickled down to the poor. On the other hand, this doesn’t seem to be the focus of GoNegosyo; it’s the cultivation of an entrepreneurial spirit among the people, embodied in this line: “Teach a nation how to fish, feed the nation many lifetimes.”

It’s also tempting to discuss poverty and entrepreneurship especially if we consider that entrepreneurship is not confined to any class or group of people. Prof. Andy Ferreria, who provided the entrepreneurial lessons in the book “Negosyo: Joey Concepcion’s Inspiring Entrepreneurial Stories”, noted that the “entrepreneurial spirit can be made and can be developed regardless of age, gender, social status, economic status…etc.” Besides, we see poor people making their way up the ladder of economic success, which shows that poverty is not, or should not be, a hindrance.

We explored that path for a while, then we realized that it would be presumptuous for us to try to identify the root causes, something which experts have been debating for years. To discuss a solution, we must know the root/s of the problem. So, let’s steer clear of this debate (of course, you may have your own thoughts that you would want to discuss in the comment section below). Let’s focus on entrepreneurship without lambasting the poor.

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  on Friday, 25 July 2008
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5 Responses to “Why Many Filipinos are Poor”

  1. 1
    Negosyo: Sagot sa Kahirapan? « Blog.Pinoy-Business.com Says:

    [...] that being said, do you consider business as the answer to poverty? We’ve previously asked why many Filipinos are poor and maybe it’s now time to ask if business is the antidote to poverty. The poll, which was found [...]

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  2. 2
    Population, Poverty and the Reproductive Health Bill « Blog.Pinoy-Business.com Says:

    [...] closest to the subject matter of the Pinoy Entrepreneurs blog (we have previous discussions on why many Filipinos are poor, Grameen borrowers with increased income show a remarkable determination to have fewer children and [...]

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  3. 3
    Hans Bulos Says:

    One reason is that from childhood, most people were taught to be contented with not having enough money. “Mahirap ng buhay.” “Kung maliit ang kumot……….”. Moreover, we were made to think of employment as our goal instead of having our own business (or to start in sales or networking business) that can lead to financial freedom. Minimum wage does not increase as much as the cost of living. Furthermore, Filipinos are not savers/investors, but spenders….even inclined to borrow for wants instead of borrowing for business. This is not a situation specific to the Philippines. It applies to Americans too, for example. The difference though is that their government gives more to their people than our government does. So, I guess, it’s a combination of the person and the community/country he lives in. The solution is education – education that will motivate (make people believe they CAN be rich) and equip people to be more entrepreneurial . It wouldn’t hurt also if there were more financial institutions including venture capitalists willing to finance business ideas. Lastly, if PNOY can really reduce corruption and the cost of basic necessities (electricity and fuel), this country of ours will definitely move forward with gains that will eventually trickle down to the poor.

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  5. 5
    long island tuxedos Says:

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