“The most vulnerable you are as a business is at the point where you could either fly or crash,” said Professor Maria Elena “Maya” B. Herrera, FASP, PhD.
Herrera, Academic Program Director of AIM’s Master in Entrepreneurship (ME) program, spoke at the 20th anniversary celebration of the Association of Filipino Franchisers Inc. (AFFI) held at the Asian Institute of Management on 24 January 2018.
At the same event, AFFI inducted its new Board of Directors, with John Chung, outgoing AFFI President, leading the induction. ME alumnus Enrique Pablo O. Caeg was named Chairman of the Board.
Herrera went on to discuss why people want to be entrepreneurs. She said, “It is actually possible now to not have a physical store, to not have a warehouse, to actually be able to set up an entire business just because you know what to sell, you know how to package, you know how to talk about it, and you know who your market is.”
According to the ME professor, less than 70% of businesses last past their first year; and less than 30% of businesses make it to their tenth.
Discussing which types of businesses are most susceptible to failure, Herrera homed in on medium enterprises. “Medium is difficult. Transitions are difficult. The time when you have the most opportunity to grow, is the time when you are most vulnerable.” The reason: This is the stage when business owners begin to establish protocols and put systems in place.
She also emphasized the importance of growing your business to the point where you pass on some of the responsibilities to your employees.
“What is the point of being an entrepreneur if you cannot be happy? And how can you be happy if you spend all your time planning your business and never planning your own life?” she concluded.