OFW FORUM

Jun Concepcion

After working in Hong Kong for over 20 years, partners Anette and Lito are both anxious and excited to go back home for good.

“We’ve identified projects that we believe offer bright prospects of success,” says Anette.

Just like them, tens and even hundreds of thousands out of over 10.2 million overseas Filipinos in Hong Kong, Singapore, Taiwan, Saudi Arabia, Jordan and Qatar are very eager to come home to their loved ones back home.

But after coming home, how will they support financially their children and even elderly parents? How will they find back home above-average incomes that they earn abroad?

Clearly and undoubtedly, the answer lies in the returning OFW putting up his or her own business or livelihood project and exerting best efforts to make the business succeed.

Sadly for most returning OFWs, there’s no other choice but this. Past their prime, most returning OFWs have little or no chance of rejoining the country’s labor force. Thus, they have no other recourse but fend for themselves.

The following are a must-do for returning overseas Filipinos:

1] Save about P100,000 or more before returning home

Returning OFWs should bring with them enough savings or start-up capital. Without any start-up capital, no business can be set up. Returning OFWs can’t borrow or get any livelihood loan from anyone – not even the government. Like it or not, this is reality.

2] Identify one or two most promising livelihood project

If the first-choice livelihood project fails, what’s the alternative? First timers in business have no guarantee of financial success. So the best thing to do is to have a second choice or option. If the first choice of business turns out badly, the start-up capital may well go to smoke much sooner than expected.

3] Conduct extensive studies on targeted livelihood project

There’s no excuse or reason not to conduct careful studies while abroad. YouTube and Google provide lots of livelihood information. Since most OFWs spend hours socializing on Facebook, it’s therefore extremely easy to watch livelihood videos on YouTube. Emails can also be sent and phone calls made to parties in the Philippines which can provide livelihood information.

4] Start-up capital must come from an OFW’s own savings -- not from a loan from any lending institution  

Why will a bank or any other lending institution extend a loan to an OFW who has gone home and ended his/her good-paying job abroad? How will the borrower pay back the loan? While lending institutions take a cold and heartless position, lending officers can’t really be blamed for doing so. They’d rather keep their jobs instead of getting blamed or made responsible for unpaid loans of returning OFWs.

5] Forget about getting adequate government livelihood aid

Except for a one-off financial grant of P20,000 from the Overseas Workers Welfare Administration, not much livelihood aid can be obtained from the government. Like it or not, the government is always short of funds for essential health, infrastructure, agricultural subsidies and other services. Since many congressmen won’t let go of hundreds of billions in pork barrel every year, the government simply doesn’t have spare money for returning OFWs.

6] Identify core personal strengths to raise chance of success

If your hometown is rural or agricultural, find out what livelihood project is best in your area. Instead of putting up a boutique or RTW shop or a beauty parlor, it is best to think agricultural. Trading food commodities may be a much better alternative. Buy cheap vegetables and fruits and sell them for a profit in the nearest big town or city. Instead of taking selfies, take nice photos of the fruits and vegetables that you’re selling and share them in Facebook groups in big towns and cities where you’re selling them.

7] Find a reliable partner to run your target business

It’s impossible for a first-time entrepreneur to do everything. One or two reliable partners – with deep passion and some knowledge in running a business – needs to be found. Cash compensation, whether to the husband, teen-age child, parent or sibling, is necessary to motivate the business partner. Plain and simple, no one will work for free all the time though favors can be given to someone seeking them.

8] Identify and quantify very well the target market or customers

A product or service on offer may have excellent quality and affordable price. But if the business is set up in a remote location with very few customers, then it won’t generate enough sales or revenues. In contrast, a business set up in a location right in the middle or close to a populated area is likely to have a lot more customers and sales.

Next week's column: Small livelihood projects with bright prospects of success

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