In the present day, the support for local Filipino products has rapidly decreased over the years due to the rise of imported goods coming in the Philippines. People would normally ask what the point is of buying local products when there are foreign brands which produce better quality goods compared to the local brands. This just means that people would rather buy imported goods rather than local products not realizing the underlying effects that this could lead to. Nowadays, one can observe that the rise of foreign industries in the Philippines such as fashion stores, restaurants, and many more are dominating the industry in comparison to locally made business. This is due to the fact that Filipinos are known to have the “colonial mentality”. Now what is colonial mentality? It is the mentality that a colonized country or nation has imbibed from the colonizers that have brought influence to the country. Examples of these colonized nations, to name a few, include Cuba, Mexico, and the Philippines. The Philippines is a country that has been influenced by many countries over the years, thus influencing them of their culture. Moreover, this resulted in the issue of Filipinos patronizing imported products over locally-made products. The writer also is a culprit of this crime because of the fact that most of the products he uses are imported. Despite the lack of support from majority of the Filipinos of Filipino-made businesses, many of these local small businesses have grown and made a name for themselves in the corporate world such as Bench, Alaska, San Miguel, and many more. All of these companies just started out small, but with hardwork and dedication, they have become successful. The point is that some Filipino companies create high quality products and are of international standards. This goes to show that Filipinos who would like to enter the world of business, have the potential to develop into a mega corporation. The only thing these Filipino businesses ask is the support of the people which do not only benefit them, but the whole nation. With this said, supporting local Filipino products and local small and medium enterprises create opportunities for people in the Philippines, promote the growth and wellness of the economy, and support Filipino-made companies to be at par with international standards.

One of the reasons as to why one should support local Filipino products is by helping the small and medium enterprises bloom in the country.  This means that buying the products of these small corporations, would help boost their status and further develop these businesses. Rivera (2015) states that: “These small medium enterprises (SMEs) are seen as one of the main engines of the Philippine economy”. Although SMEs do not produce the most money in the economy, they are a considered a driving force in the economy due to their population. The population of SMEs in the Philippines has considerably grown over the past years by whopping 66% from the year 1995 to 2011(Mendoza & Melchor,2014). This goes to show the growing number of SMEs from the years 1995 to 2011 and it even increased further in the present day. Supporting these enterprises will also encourage and promote innovation of these companies and further creating higher quality products which can bring them at a competitive status against foreign companies.   The reason for this is that as the company grows in totality, one can expect that the company will increase the quality of their products, moreover increasing the price of their products, thus bringing the company higher up the ladder of the corporate world.  As the SME climbs up the ladder and reaches the international standard, innovation will be present to have a competitive edge against foreign corporations. In totality, supporting local SMEs will help bring these companies to the “big leagues” in the corporate world.

Although supporting small and medium enterprises will help spawn the rise of Philippines companies, the sustainability of these companies in the country is very narrow. The reason for this is that most SMEs have problems with sustaining decent profit due to factors such as financial instability, and competition with larger and more famous enterprises. SMEs are operated by citizens who are part of the working class People who believe this claim are people who lack faith in the people manning the growing enterprises. Furthermore, they believe that the larger companies are considered to have the best quality of goods compared to these small enterprises.

What people do not know is that banks nowadays offer loans to these small start-up businesses to counter the problem of financial instability of these enterprises. With this said, people who want to start their own SMEs but don’t have the money to do so, can acquire the capital needed in creating the business through bank loans offered by major banks. An example of a bank that caters the SME bank loan is BDO. With this in mind, starting an SME will be easier to sustain and manage over a long period of time.

Another purpose of patronizing local products is through the cause of developing the economic status of the Philippines. In relation to the first reason, Filipino-made companies are very important in boosting the economy due to the potential inflow of money local businesses bring to the economy. According to a 3p Contributor (2016), supporting these local economies promote the growth of the economy by circulating the flow of money within the community or nation. This is indeed true because of the fact that as money needs to flow in the economy to sustain the whole economy. Furthermore, if people do not support these local business and continue the increasing trend of colonial mentality, then the monetary flow within the country will go into the pockets of the country these foreign companies came from, hence leading to the decreased circulation of money in the Philippines.  David Boyle (as cited in Khan,2013) stated that “money works like blood – it needs to circulate around the local economy if it is going to keep it alive”. This justifies that supporting the products of one’s country will indeed boost the longevity of the economy.

            People would oppose this claim because of the fact that if people would support these local products, the inflow of money from importing goods to the Philippines will decrease, therefore decreasing the inflow of money in the economy. The reason for this is that people believe that the importing goods produces more money for the country compared to locally-produced goods. Furthermore, people believe that since these foreign companies have placed their mark in the industry, they conclude that they are the true money-makers in the Philippines.  Another reason for this is that it is easy to import goods in the country with the advancements of the trade present. Due to the ease of importing goods, people conclude that importing is more profitable than exporting.

            Although importing also produces money for the economy, exporting the local products produced by the country is a more profitable way of increasing the inflow of money in the nation. According to the Investopedia Staff (n.d.), exports promote the growth of the economy while imports are considered as a weight that pulls the economy down. Based on the net exports equation, if exports exceed imports, a trade surplus is to be expected; on the other hand, if imports exceed exports, then a trade deficit is to be expected (Investopedia Staff, n.d.). This is a concept that most people overlook, hence the misconception that imports are of greater value than imports. The reason behind why imports are pulling the economy down is because imports flow money out of the pockets of local companies and place it in the pockets of the international companies. Although imports bring down the economy, they are of good use to the economy as well but not as much as the potential of exports can bring. One should remember that imports and exports are both essential in the economy.

            The most important reason of why one should support Filipino-made products, is to provide jobs for people in the country.  Poverty in the Philippines is very evident. As one passes through roads, streets, and eskenitas, many beggars, sampaguita-sellers, homeless people, and mangangalakal can be seen. Furthermore, the jobless and people who are considered in the working-class are victims of poverty. According to a survey done by SWS (as cited in Flores,2016) in the past year, an estimated 9 million people are known to be jobless with majority of the people who had to resign from the company due to cutbacks. Around 3 million of the 9 million people who are jobless are jobless because the company had to cut costs, hence cutting employees of their job. This goes to show that people in the Philippines need more job opportunities, hence the booming of the Filipino-made companies. The question is – how can one create job opportunities for the Filipino people when supporting local products? People who support the local industry will encourage the increase in employment for people who live in the region where the businesses are located (Ingram, n.d.). Another is that supporting local products promote the growth of the local companies producing them, hence leading to more job opportunities.

            People would refute this claim because of the fact that other foreign companies in the Philippines can also provide jobs for the working-class. With the growing foreign industries in the country, as stated earlier, people would often side with these businesses because they think that these are the real money-makers, hence the belief that foreign companies have more benefits for the person.

            The reason why being employed in local companies rather than foreign companies is that local companies give more benefits to the employee. One is that local companies have income taxes that are beneficial in developing the country’s roads, highways, and many other forms of development (Ingram, n.d.). Another is that local companies as stated earlier, foreign companies are a threat to the local industry, thus reducing the circulation of money in the Philippines economy. With this in mind, people will now know that local businesses are not only trying to benefit themselves but also to the people who work for them. When employed in a local business, there is a form of connection between people due to their common cultural background. According to Greathouse (2013), a reason of why one should employ or be employed locally is because of the instant chemistry that happens between the employee and the company because of the similar culture they came from. This goes to show that it is more advantageous of local citizens, such as the working class, to work in local businesses because of the connection they both share.

Patronizing local Filipino-made business will benefit the entire nation. This is in the sense that the small local businesses will grow and further develop, hence supporting the local economy. Moreover, as stated earlier, the exports that the local products will produce will further sky-rocket the economy to be at par with international standards. Finally, the lives of the people in the Philippines will improve because of the opportunities that local businesses will provide for them. People need to wake up and realize that supporting these local products benefits them. In relation to the current administration of President Rodrigo Duterte, if the rise of support of the local industry  is present, then change is indeed coming for the better.

References

Domingo, L.N.S. (2014, September 07). Colonial mentality. Retrieved from:                    http://opinion.inquirer.net/78220/colonial-mentality

Mendoza, R.U. & Melchor, M. (2014, November 11).  SMEs in the Philippines: Going beyond survival. Retrieved from: http://www.rappler.com/thought-leaders/74674-smes-philippines-asian-institute-management

Greathouse, J.(2013, August 28). 5 Reasons to Hire Locally – No Matter Where You Are. Retrieved from: http://www.inc.com/john-greathouse/5-reasons-to-hire-locally-no-matter-where-you-are.html

Hyatt, P. (2016, September 03). FACE OFF: Buy Local VS Buy Global. Retrieved from:

http://www.tradeready.ca/2016/trade-takeaways/face-off-buy-local-vs-buy-global/

Ingram, D. (n.d.). The Advantages of Businesses in the Local Economy. Retrieved from:

http://smallbusiness.chron.com/advantages-businesses-local-economy-3289.html

Investopedia Staff. (n.d.). Interesting Facts About Imports and Exports. Retrieved

from:http://www.investopedia.com/articles/investing/100813/interesting-facts-about-imports-and-exports.asp

Khan, M. (2013, February 20). ‘Money is like blood- it needs to circulate for local economies to survive. Retrieved from: https://www.theguardian.com/lifeandstyle/the-northerner/2013/feb/20/yorkshire-business-self-sufficiency

Schwartz, J. D. (2009, June 11).Buying Local: How It Boosts the Economy. Retrieved from: http://content.time.com/time/business/article/0,8599,1903632,00.html

3p Contributor. (2016, April 07). Supporting Local Economies Supports the Nation. Retrieved from: http://www.triplepundit.com/2016/04/supporting-local-economies-supports-nation/

 

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