OFWs urged to venture into business

CEBU, Philippines - The Philippines is urged to provide effective and sound programs or mechanics to further encourage more Overseas Filipino Workers (OFWs) and their families to venture into business.This was the suggestion made by Asian Development Bank (ADB) senior country economist Norio Usui, as he noted that large part of the remittances from OFWs is largely spent on consumption.

Responding on this recommendation, Department of Trade and Industry-Cebu Provincial Office (DTI-CPO) director Nelia F. Navarro said that her office has an existing joint program with the Overseas Workers Welfare Administration (OWWA), providing entrepreneurship training to OFWs, or their families how to get into business.

Navarro said about 50 OFW families in Cebu province have benefited on this program, and invested at least P25 thousand each, to get a small cart-type franchise business.

Easily, Navarro said the program has generated an initial total investment of P500,000 from the OFW money, spent for investments.

Navarro vowed to strengthen this program with OWWA, and hopes to encourage more OFW families to go into business, and the easiest way so far, is getting into franchise system.

Earlier, the Philippine Franchise Association (PFA) reiterated its call to encourage OFWs to put their money on franchise investments, as this system offers good long term business as compared off with a new one.

Instead of putting their money to some start-up businesses, wherein success is always at stake, entering into franchise business on the other hand, promises good returns and business sustainability, said PFA president Elizabeth Pardo-Orbeta.

About 80 percent of the GDP (Gross Domestic Product) is consumed by Filipinos, “very little is left for savings and investments.” The reason why, the government should encourage Filipinos to invest and make allocations for savings.

Navarro said her office will be working closely with OWWA to strengthen this existing program, in order to drum up awareness for entrepreneurship among the OFW families in the province.

Like Orbeta, Navarro also believes that getting a franchise business is a good tool for OFW families to start off a business.

Orbeta said PFA is trying its best to attract more OFWs to tap the lucrative franchise business, for them to maximize their income abroad, while helping their families back home.

Remittances to the country reached an all-time high of over US$20 billion last year as demand for Filipino workers remained strong even amid economic and political challenges confronting labor markets in the West and the Middle East.

The Bangko Sentral Ng Pilipinas (BSP) earlier reported that remittances of US$20.1 billion for 2011 marked a 7.2 percent rise over the US$18.3 billion registered in the previous year.    

The growth in remittances came about as job orders for Filipino workers from foreign employers last year stood at 58,123. Officials attributed the strong demand for Filipino workers to their skills and efforts of the government to ink labor agreements with other countries. (FREEMAN)