US says PHL must generate wealth from the ‘bottom of the pyramid’

THE United States is very interested to promote entrepreneurship and innovation around in the Philippines and other developing countries to address the inequality problems.

In her recent visit to the Philippines, US Trade Secretary Penny Pritzker said President Barack Obama wants to create an environment around the world that would support risk takers specifically entrepreneurs and startups to generate more wealth coming from the bottom of the pyramid.

“The support for entrepreneurship is very important because a significant part of the economic world comes from new business,” she said in her meeting with Filipino startups.

Pritzker said she could relate to the experiences of startups because she was also a startup entrepreneur before joining government service. Before joining government service, Pritzker founded the Classic Residence by Hyatt, now called Vi in 1987. She established the Pritzker Realty Group in 1991. In the same year, she served as a chairperson of Superior Bank of Chicago until 1994. She co-founded the Parking Spot with CEO Martin Nesbitt. In 2012, she founded the PSP Capital Partners.

She pointed out that there are no physical limitations for entrepreneurs as they can be successful in any part of the world.

“What is amazing to me is for entrepreneurs, it doesn’t matter what part of the world you come from…I once sat in your shoes. I had startup companies maybe not specifically in the business that you’re trying to start,” she said.

“I am very interested in what the environment is like to start a business here in the Philippines, talk about work impediments or things that are working in your favor, about the entrepreneurial state,” she added

Minette Navarette, chief executive officer of Kickstart, said the visit of Pritzker is good news for Philippine startups because they can explore markets such as the United States and other develops countries.

“Today if you’re a startup, you wouldn’t be able to survive the accreditation process of corporations or even government accreditation process which takes months. To get the endorsement of the US Secretary of Commerce is a positive step in the recognition that the Philippine startup community has something to contribute,” she said.

Navarette said it is good for governments and corporations to hear about disruptive innovation and be able to participate and support it. According to Navarette, local startups can now have a voice who will champion their cause share their perspective, seek support, and maybe learn.

Instead of complaining about lack of infrastructure, slow expensive Internet, poor government support, government bureaucracy, she said it is better to point out the gaps and opportunities to partner. “The Philippines is in such a good spot today but we have to work hard to do something about it,” she said.

US government is looking to expand entrepreneurship. What she signals is that entrepreneurs has a space in overall national development, in overall commercial terms between the US and the Philippines….. We are excited, we are hopeful that it will be productive. We understand that it will take a long time but we hope that at least we share perspectives.

She said wealth inequality is a problem in every country not only the Philippines. She pointed out that it’s a more painful problem here because the pie is not as big as the needs.

Meanwhile, Kalibrr Chief Executive Officer Paul Rivera said there is a great need to democratize the economic resources of the country as only 40 families control it.

“There is tremendous demand for US businessmen to come to the Philippines and they are looking for new faces for partners. The trade secretary does not want the 40 families to be the partners of the US companies,” he said.

Rivera said Pritzker wants a new setup to be in place so the wealth will be trickled down to the majority of the population.

Despite the great gap between the marginalized masses and the plutocrats, Rivera said he is optimistic the poor can scale up through technology. “The internet is an effective tool for startups and innovators to fight poverty,” he said. –Rizal Raoul Reyes, Businessmirror