CEBU, Philippines - While the concept of Venture Capitalism is being pushed in the Information, Communication Technology (ICT) sector, this effective strategy to help good business ideas thrive, is also seen to boost tourism related businesses.Cebu for instance, where tourism sector is dynamic, it is highly recommended that Venture Capital concept should be introduced to the tourism sector, suggested Asian Development Bank (ADB) senior country economist Norio Usui.
According to Usui, there are a lot of opportunities that Filipinos can take advantage out of tourism business, however, some potential businesses cannot take off, due to lack of capital and technical support.
While the government has limited budget to fund the good business concepts in tourism for example, what it could do is create a good Research and Development (R&D) facility, so that those start-up entrepreneurs who have good business concepts could further develop their products and ultimately introduce them to the profitable commercial landscape.
Aside from infrastructure support, or technical (know-how) support, what is lacking in the Philippines is the availability of a community of Venture Capitalists that would help the budding businesses maximize their potential.
Venture Capitalists are those businessmen who will take advantage of a good concept and other to fund the idea, as well as market the product to the mainstream consumer based.
Entrepreneur Conrad Montilla, who owns the Conrad Mango Wine, also recommended that the government, as well as funding agencies should also help the promotion of Venture Capitalism specifically in the tourism sector.
Montilla’s Mango Wine product is now more popular with the foreign tourists, although he is promoting the popularity of the wine to the local market.
Montilla said it is good for the government to start off with the Venture Capital culture, so that the private sector would be able to appreciate the concept more.
Meanwhile, while the introduction of Venture Capital in the Philippines, specifically to other sectors like tourism, is still new, Usui urged the private sector, mainly entrepreneurs that have good business concepts and ideas, to talk with the concerned government agencies, and seek help for the development of their potential businesses.
The Japanese-economist said that the private sector should reach out to the government and start a good relationship with the concerned agencies.
Those that have good inventions, or product proposals, should seek help from the concerned agencies like Department of Science and Technology (DOST) or the Department of Trade and Industry (DTI).
Communication between the two sectors is very important for the development of the Philippines. Entrepreneurs should understand the complicated processes of the government, and instead of complaining, reaching out and talk to the right agency is highly effective.
“The private sector should understand why there are regulations that need to be followed. Thus, consultative mechanism between the government and private sector should be created,” said Usui.