Tahi - Hati
Tahi - Hati
Tahi - Hati
___________________________________________
A Concept Paper
Presented to the
Undergraduate Faculty of Department of Business Administration
University of San Carlos
Cebu City, Philippines
In Partial Fulfillment
Of the requirement for the Course
Introduction to Social Entrepreneurship (SOEN 1)
_________________________________________________
December 2019
ii
ENDORSEMENT SHEET
This Concept paper entitled “TAHI - HATI” prepared and submitted by Zhanra
Therese C. Arnaiz, Paul Cortes, Atria Sheena Y. Estur, Yeddah Marie N. Mondero,
Kristine Ann T. Muyargas, Keisha Mae S. Nogaliza and Christian Jay Ocampo in
partial fulfillment of the requirements for the course on INTRODUCTION TO SOCIAL
ENTREPRENEURSHIP has been accepted for ORAL PRESENTATION.
___________________________________________________
We, Zhanra Therese C. Arnaiz, Paul D. Cortes, Atria Sheena Y. Estur, Yeddah
Marie N. Mondero, Kristine Ann T. Muyargas, Keisha Mae S. Nogaliza and Christian Jay
Ocampo , here submit our paper entitled “TAHI - HATI” and truthfully declare that the
paper is a product of our original research investigation. To our best knowledge and
belief, it contains no material previously published or written by another person nor does
it include contents that are falsified or fabricated. We also sought permission from the
copyright owner to use text, illustrations and/or framework substantively used in the
paper. I understand that should the University of San Carlos, represented by its
Administrators and Faculty, eventually discover that my attestations herein are not so, I
accept the right of the University to impose the appropriate sanctions including the non-
granting of the degree, if so warranted.
Signed (input date) at the University of San Carlos, Cebu City, Philippines.
Attested by:
Name of Faculty Adviser: JOSEPH MAGADAN GALLUR_________
Signature of Faculty Adviser: _______________________________________
Date Signed: _______________________________________
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EXECUTIVE SUMMARY
Tahi-Hati is a social enterprise dedicated to improve the quality of life of residents from
Sitio Sab.a, Mandaue City. The enterprise was conceptualized based on the current
situation of Sitio Sab.a, Mandaue City as the enterprise was able to identify various
social problems that negatively affect the holistic living and development of the members
of the community. As mentioned, the enterprise aims to improve the quality of life of the
residents by helping them acquire employable skills because their lack of employable
skills reduces their earning potential, providing them employment to increase the
beneficiaries’ purchasing power so that they can provide for their families and have a
better and a more comfortable life than what they currently have, guiding them to have a
holistic life improvement as they face hopelessness and have a negative mindset
towards having a better life since they are only focused on survival ,as well as to boost
their morale by acknowledging them and improving their skills that they can be confident
about as earning and nurturing individuals of the community. The enterprise also intends
to improve the community’s environment and develop projects to improve the lives of the
residents of Sitio Sab.a like by fixing the drainage problem that causes great distress
towards the members of the community and other projects. The proposed enterprise
offers variety of curtains, beddings and pillow cases made from
The proposed social enterprise sees to sew the community together by
supporting the community and to provide local and good quality window coverings and
beddings made from fabrics taken from ethical and sustainable sources. The customer
segment that that the enterprise targets are newlyweds, homeowners, dorms,
condominium owners and apartment owners with middle income bracket. The enterprise
also targets hostels, inns, pension houses and other HRIs. The enterprise intends to
establish its relationship by interacting and engagement with customers and prospects
through contact number, email, website and through its social media pages. The
enterprise’s channel will be both virtual (social media, website and other online selling
platforms) and physical (retail slots and selling in expos and conventions). The key
activities to be done by the enterprise would comprise of training and seminars to
improve the mindset and develop the employable skills of its beneficiaries and potential
employees. In the production side, given the products offered by the enterprise, the key
production activities would include sewing, packaging and designing. The enterprise will
also perform different marketing activities. The key resource of the enterprise would be
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the financial resources, human resources (employees) and physical resources such as
raw materials, supplies and equipment. The enterprise will be partnering with NGOs to
finance and invest in the company. Different NGOs and foundations are looking and
investing in social enterprises. The enterprise will also have a close coordination with the
community’s local government units especially for the foundation of the community
association where the enterprise will be training and hiring the pool of members who are
willing to work for the enterprise. The enterprise’s cost structure is mainly composed of
both its variable costs as well as its fixed costs. Cost for raw materials, equipment,
supplies, rent, utilities, training, seminars, wages of employees, other production costs,
accounting activities, marketing activities and investments. The enterprise’s revenue will
be coming from product sales. Investment may be current cost but it is expected to bring
more to the enterprise in the long run to keep the enterprise’s sustainability. The social
impact of the Tahi-Hati is to providing employment by creating an enterprise that hires
the jobless women and men of Sitio Sab-a. Furthermore, the enterprise will also
empower, enrich and uplift the families of the beneficiaries by helping the beneficiaries
realize that there is more to their life, that they can also dream and have a better life and
not just merely survive. With the enterprise that will provide them employment,
encouragement and help the residents to realize a better life thus the enterprise will
develop the community. A portion of enterprise’s profits will be centered on improving
the community’s general concern by fixing the drainage problem in the sitio and by
having other programs to aid the rise of the community. In addition, the enterprise also
supports and only patronize ethical and sustainable sourcing.
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ACKNOWLEDGEMENT
With boundless love and appreciation, the researchers would like to extend their
heartfelt gratitutude and appreciation to following people who help them making this
paper:
To our parents, thank you for your love, support and guidance.
To our classmates and friends, thank you for your support and words of
encouragement in making this paper less stressful.
To our SOEN adviser, Mr. Jeff Gallur, thank you for the appreciation and help on
this study. You never fail to impart us the knowledge that we need.
To each member of the group, we deserve a pat on the back. We could never
have done this study without everyone’s cooperation and skilled minds. We had been
enthusiastic all throughout the way and overall, we did a really great job.
Thank you and God bless.
The Authors
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TABLE OF CONTENTS
Title Page i
Endorsement Sheet ii
Executive Summary iii
Acknowledgement v
Table of Content vi
List of Tables vii
List of Figures viii
1 Introduction
The rationale of the Study 1
Profile of the Community 2
Significance of the Study 2
2 NEED AND OPPORTUNITY ANALYSIS (NOA)
Overview of Social Problem 4
External Environment (PESTEL) 4
Root Causes 15
Environmental Landscape 16
Barriers 16
Opportunity 17
3 THE SOCIAL ENTERPRISE
Mission, Vision, Opportunity Statement and 18
Key Strategies (The Logic Model) 19
Social and Economic Impact Indicators 19
Operating Model 20
4 The Business Model 21
5 Summary and Conclusions 23
BIBLIOGRAPHY 24
APPENDICES
A Transmittal Letter 26
B Community Profiling Survey Questionnaire 27
C Map of the Research Instrument 31
D Photo Gallery 32
E Curriculum Vitae of all members 33
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LIST OF TABLES
LIST OF FIGURES
1 Root-Cause Analysis 15
2 Logic Model 19
3 Operating Model 20
4 Business Model Canvas 21
1
INTRODUCTION
Social enterprise activity in the Philippines is taking off – the number of social
enterprise start-ups has more than tripled in the last decade alone.
The Community
The Mandaue City has a total of 27 barangay and one of our visited placed was
Basak Barangay. Barangay Basak is a highly urbanized city in the Central Visayas
region. Although administratively independent due to its distinction as highly urbanized
city, Barangay Basak is commonly grouped with the island province of Cebu. The Basak
is a barangay in the city of Mandaue. The word Basak was derived from the word
“Basakan” since the the area was a plantation field before. Its population as determined
by the 2015 Census was 10,606. This represented 2.92% of the total population of
Mandaue. The classification of Basak barangay is 60% Residential, 30% Commercial,
and 10% industrial. According to Barangay information the description and
characteristics of the barangay was peaceful, No public land/ Privately owned lots are
majority, and growing number of migrants and most of the population
This study will be undertaken to find out the feasibility of the researcher’s social
enterprise “TAHI-HATI” which could be the possible solution that could help the people
in the community and to measure its effectiveness through finding out the social
problems that will be addressed by this proposal.
Benefitting the study are the various sectors as follows:
The Community. The direct recipients of this study are the unemployed community in
Sitio Sab-a, Basak, Mandaue City, mostly especially the females, since they are only
dependent to the incomes of their husbands. Through this proposed social enterprise,
they would be able to foster new ways to enhance their knowledge, skills and attitude,
which could then be a tool to help improve their mindset on how they could change their
current situation into a stable lifestyle.
The Local Government Units. This study can help the barangay officials of Basak,
Mandaue understand and know what are the problems faced and want to be addressed
3
by the residence of Sitio Sab-a. Through this study the barangay officials can think and
gain solution that can somehow help the Sitio.
The Professors. The result of the study will provide the professors of University of San
Carlos information for them to have a deeper understanding on the situation of the
community. This will be a motivation for them to further motivate their students to come
up with a social enterprise that could provide solutions to the social problems faced by
the community.
The Students. This study will give the students’ knowledge on the situation of the
community and will further enhance not just their problem-solving skills but also their
entrepreneurship skills by venturing to different social enterprise innovation
4
CHAPTER 2
NEED AND OPPORTUNITY ANALYSIS
she stated that there are “tambays” or jobless individuals who do not seek employment.
Another social problem is that many children in the sitio stopped attending school
because they do not want to attend school, for some, their education is not their priority
as stated that they prioritize their family’s survival while others are due to negative
influence of peers and vices. Most of the students who stopped getting their academic
education are demotivated and does not see the value of academic education which is
the focus on the sustainable development 4: Quality Education. Furthermore, many
citizens of Sitio Sab-a cannot afford electricity and clean water and they heavily rely on
their neighbor’s resources which is a problem which is undertaken in the sustainable
development goal 7: Affordable and Clean Energy and the sustainable development goal
6: Clean Water and Sanitation. The houses of the members of the society are close
together, and it is built in highly flammable materials and poor-quality materials. Despite
most citizens being construction workers, many of their houses lack structural integrity
and as stated earlier has open drainage system filled with waste given that the garbage
trucks cannot enter their area due to its narrow path which is dealt in the sustainable
development goal 11: Sustainable Cities and Communities. Lastly, drug related crimes
are rampant in the area as many residents are pushers and users of illegal drugs but the
problem does not only lie on the users as well as pushers. The way authorities handle
the issue is also troublesome morally, ethically and technically which is focused on the
sustainable development goal 16: Peace, Justice and Strong Institution.
Political
Political factors that may affect the social enterprise are government
policies and tax policies, to name a few. Government policies create the rules
and frameworks in which businesses are able to compete against each other.
The government also affects the economy through regulatory policies which aims
to set limitations as to what can be done in the marketplace. From time to time,
the government changes these rules and frameworks, which may force the
enterprise to change the way they operate and how they interact with the
different players in the market.
The government plays a vital role in the creation of any kind of business.
Currently, there is no specific legislation in the Philippines that is centered
towards social enterprises. However, according to the British Council, there are
two Bills that are being debated which could provide substantial support for the
sector - the Social Value Bill and the Poverty Reduction through Social
Enterprise (PRESENT) Bill. The Senate Bill No. 350: Social Value Act was
introduced by Senator Paolo Benigno "Bam " A. Aquino IV in July of 2016. This
Bill aims to introduce the concept of “social value” as an additional criterion
governing Philippine government procurement in order to maximize benefits for
society and also drive up service quality and inclusive e-growth. The House Bill
No. 6085: Poverty Reduction through Social Enterprise (PRESENT) Act was
introduced by Hon. Lorenzo ‘Erin’ R. Tanada III in April of 2012. This Bill seeks to
provide a better environment for developing SEs by recognizing them as an
official poverty reduction tool, and by providing them incentives. In addition, the
Magna Carta vests rights and privileges on social enterprises and proposes “a
Poverty Reduction through Social Entrepreneurship or PRESENT program” and
the creation of a Social Enterprise Commission. Sen. Paolo Benigno “Bam”
Aquino IV filed the Senate version of the bill in 2015.
At the onset, social enterprises may need to transact with the local
government units (LGUs) where the principal place of business is located. It also
has to go through various government agencies and comply with certain
requirements before the legal existence of the company can be recognized. To
name a few, the Department of Trade and Industry’s Negosyo Center Program
which helps in business registrations through Philippine Business Registry
(PBR). However, since the social enterprise is a corporation, it will be registered
7
their ability to strike without good faith bargaining. Moreover, labor laws can
proliferate the tendency to increase expenses if businesses have to upgrade or
maintain the physical aspects of its workplace to meet safety standards. The
more labor laws and standards that businesses apply, the greater the potential
for lawsuits. Employee actions arise from injuries on the workplace, wrongful
termination, harassment and discrimination. Employers who do not correctly post
required signs notifying employees of their rights face fines and a weakened
defense in case of a lawsuit. Overtime laws prohibit employers from making
employees work long hours without extra pay -- and they often prohibit
employers from even asking workers to put in overtime hours. Collective
bargaining agreements often result in higher pay and benefits and stricter work
rules. Minimum wage laws can increase payroll costs in a marketplace with high
unemployment and low wage demand.
Economic
Economic factors that may affect the social enterprise are the country’s
GDP (Gross Domestic Product), GNP (Gross National Product), inflation rates,
tax rates, economic growth and other economic factors. A country’s economy
greatly affects a business’ status in a way that it may or may not help a company
in achieving its goals and objectives.
According to the World Bank, the Philippine economy remains to be
strong despite rising global uncertainties as it is projected to grow by 5.8% at the
end of 2019, before recovering to 6.1% in 2020 and eventually, to 6.2% in 2021.
Economically, the Philippines is considered as “newly industrialized”, but the
economy relies on remittances from nationals overseas, and the services sector
generates most of its GDP. After switching from agriculture to services and
manufacturing, the Philippines is now an emerging economy, i.e. the country has
some characteristics of a developed nation but is not quite there yet. In order to
transition into a developed nation, the Philippines must meet certain
requirements, like being able to sustain its economic development, being very
open to foreign investors, or maintaining a very high stability of the institutional
framework (like law enforcement and the government). Only if these changes are
irreversible can they be classified as a developed nation. The Philippines also
situated a switch to services and manufacturing wherein employment in these
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areas has increased and the country is now among those with the highest
employment in the tourism industry worldwide. This transition was not entirely
voluntary but also due to decreasing government support, the liberalization of
trade, and reform programs.
The country’s Gross Domestic Product (GDP) based on the statistics
disclosed by the World Bank, accounted for 330.91 billion US dollars in 2018,
which represents 0.53% of the world economy. GDP in the Philippines averaged
81.60 billion US dollars from 1960 until 2018, reaching an all time high of 330.91
billion US dollars in 2018 and a record low of 4.40 billion US dollars in 1962.
Moreover, according to the Philippine Statistics Authority, GDP grew year-on-
year by 6.2 percent in the third quarter of 2019. The growth therefore, for the 1st
three quarters of the year averaged at 5.8%, a couple of percentage points away
from the goal of 6% to 7%. This growth was driven mostly driven by the services
sector which accounted for the highest share to GDP of 56.2%, and Agriculture,
Hunting, Forestry and Fishing at 8.9%. Among the major economic sectors in the
fourth quarter of 2018, Industry grew the fastest at 6.9%, mainly attributed to
Construction sector which expanded by 21.3%. The Service sector came in next,
with 6.3%, while the Agriculture sector grew by 1.7%. With the country’s
projected population reaching 108.3 million in the third quarter of 2019, per capita
GDP grew by 4.5 percent. Meanwhile, per capita GNI and per capita Household
Final Consumption Expenditure (HFCE) posted a growth of 4.0 percent and 4.3
percent, respectively.
The country’s Gross National Product (GNP) according to CEIC Data was
reported at 105.124 billion US dollars in September 2019. This records a
decrease from the previous number of 106.320 billion US dollars for Jun 2019.
The Philippines’ Gross National Product data is updated quarterly, averaging
24.034 billion US dollars from March 1981 to September 2019, with 155
observations. The data reached an all-time high of 109.471 billion US dollars in
December 2018 and a record low of 6.715 billion US dollars in September 1985.
In terms of inflation rate, according to Statista, the Philippines’ inflation
rate peaked at 5.21 percent in 2018 jumping up and down a few years prior. The
statistics also show a deceleration of average annual inflation rate of 3.84% at
the end of 2019, 3.27% in 2020, 3.06% in 2021, and 3.00% in 2022, 2023 and
2024, respectively.
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Social
Social factors that may affect the social enterprise are population trends
such as the population itself, population growth rate, income distribution, lifestyle
attitudes and cultural barriers.
The Philippines, is an island country in Southeast Asia. According to the
National Mapping And Resource Information Authority, it is an archipelago
consisting of 7,641 islands. Manila is the capital city, however Quezon City is the
country’s most populous city. Quezon City is the biggest city in the Philippines
with an estimated population of 2,936,116 (Sawe, 2018). This is followed by
Manila, Caloocan, Davao and Cebu.
According to Statista, the total population of the Philippines was at
approximately 104.92 million inhabitants in 2017. However, as of November
2019, the current population of the Philippines was estimated at 108,678,552
million, according to Worldometers’ elaboration of the latest United Nations data.
The Filipino population is reported to continue increasing and is even expected to
increase slightly in the years to come, despite a current overall downward trend
in population growth. For now, the population figures in the Philippines still show
a steady increase and the country is still one of the most densely populated
countries in the Asia-Pacific region, however, all signs point to a decline in the
number of inhabitants in the long run. The population growth rate, as well as the
country’s fertility rate, for example, has also been decreasing for years now,
while the death rate has been increasing simultaneously. One of the reasons for
the downward trend is the aging population; fewer babies are born each year,
while life expectancy at birth has been steady over the years. Poor healthcare in
the country has also been a reason for the downward trend. The Philippines has
a high tuberculosis incidence rate, a highly infectious disease, and are among
the countries with a high probability of death from non-communicable diseases
as well.
In terms of lifestyle changes, According to Euromonitor International,
despite stubbornly high levels of income inequality, the middle class is
expanding. Which is why there is an increased demand for a wide range of
modern products and services. Both average disposable income and consumer
expenditure have increased, particularly among younger, educated urban
households. Younger consumers have also helped drive considerable growth of
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Technological
Technological factors that may affect social enterprises are its
technological trends, innovations and breakthroughs, infrastructure or its
technology legislation.
The Philippines startup ecosystem experienced changes over the years.
In the early 2000s, most startups or technology companies were focused on
deals, communications, search engines, listings, and blogging. In this period,
notable startups include Chikka, Sulit, OLX Philippines, MetroDeal, and Pinoy
Exchange.
By 2007, top-of-mind technologies were data mining analysis, search
technologies, service oriented architecture, and virtual collaboration. Attention
also shifted to mobile technologies, data security, and cloud in the intervening
years. Today, the essential technologies that impact companies are artificial
intelligence, augmented reality, blockchain, drones, Internet of Things, robotics,
virtual reality, and 3D printing.
With the rapid changes in technology as well as the growing focus on
innovation, they asked the founders about the role that they play in driving
innovation. Forty-seven percent of the founders see their role as visionary, and
40% say they lead innovation in their startups. The findings show that the
founders value innovation, and take responsibility for this in their startups rather
than delegating the role.
Most innovation-related initiatives in the past focused on improving or
developing new products. Understandably, technology is still a top priority of the
founders because most of them just started in the last two years. Thus,
technology enhancements are essential. Technology is also no longer just seen
12
as a tool for creating new and improved products. Today, technology also helps
in gaining insights into what customers want and how to deliver
products/services.
Environmental
Environmental factors that affect social enterprises are the processes that
identifies all the external and internal elements which greatly affects the
organization’s performance. Building relationships with various partners were
needed to overcome the numerous gaps in resources, skills and knowledge
(Holt, & Littlewood, 2015). One type of partnership social enterprises need to
develop is the one with local communities.
Previous ODI research has shown how social enterprises operate in three
niches: markets serving the very poor; markets where innovative products,
services and business approaches are used (e.g. to overcome stigma, to
promote new technology or new services with social/environmental as well as
commercial benefits, where people are unused to paying for a good/service);
basic social services where the state no longer can or was never able to provide
comprehensive, quality coverage (Smith & Darko, 2014).
There is considerable focus in the social enterprise community in the
Philippines on markets serving the very poor. Many social enterprises in the
Philippines are producer-based organisations, working with low-income and
marginalised groups of producers and suppliers. Across the sectors that these
social enterprises work in, primary focus is often on improved prices for
producers and increased access to market. At a sectoral level, there is less
evidence in the Philippines than elsewhere of social enterprises addressing basic
social needs (Smith & Darko, 2014). This would be in sectors or areas where
there is a lack of public, private and NGO sector presence and where the hybrid
business models of social enterprises offer value add commercially viable
socialfirst approaches. There seems to be considerable overlap between the
activities of social enterprises and NGOs, especially in the agriculture sector, with
the apparent re-branding of some NGOs as social enterprises with no clear
indication that their business models have substantially changed. As social
enterprises in the Philippines seek to raise their profile and recognition for their
contribution above and beyond mainstream business and charity, further
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understanding of the niches in which they operate and are successful, and
niches they could move in to, may be useful.
Legal
Legal factors that may affect Social enterprises are the laws that affect
the way businesses operate and customers behave. The current policy
environment in the Philippines may be characterized as unresponsive to the
nature of social enterprises as entrepreneurial organizations engaged in the
creation of social and economic value that are contributing to poverty reduction
and sustainable development.
Currently there is no social enterprise specific legislation in the
Philippines, but a number of Acts and government programmes influence social
enterprise. In terms of social and livelihood programmes, the Department of
Social Welfare and Development (DSWD) manages the 2009 Self Employment-
Kaunlaran (SEA-K) livelihood programme, which aims to enhance the socio-
economic skills of poor families through establishment of community-based credit
organisations for entrepreneurial development. Started in 2009, the SEA-K
established 1,389 projects affecting 28,939 families nationwide (ADB,
unpublished). DSWD also has the Pantawid Pamilyang Pilipino conditional cash
transfer programme. To introduce livelihood interventions for sustainability in this
programme, the DSWD work with a fair trade organisation that develops coffee
production and communities involved in the coffee farming sector. Through this,
selected beneficiaries are organized into an association and attend training on
business development. Capital assistance as seed money for the beneficiaries’
potential coffee enterprise will also be provided. The DSWD also link the
beneficiaries to the Department of Agriculture and the Philippine Coffee Alliance
(ADB, unpublished).
There are also a number of government interventions to support MSMEs,
which are of shared value to social enterprise. The government enacted the Go
Negosyo Act 2014, which aims to boost MSMEs in the Philippines by
establishing negosyo (business) centres to provide advice on access to finance,
training and other forms of assistance to MSMEs to help them grow and thrive; in
particular addressing the ‘roadblock’ caused by complicated regulatory and fiscal
processes (Office of Senator Bam Aquino, 2014). Two Bills are currently being
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debated which will potentially have bigger direct impact on social enterprise – the
Social Value Bill and the Poverty Reduction through Social Enterprise
(PRESENT) Bill.
The PRESENT Bill was submitted to the Philippine Congress in 2012 and
the first reading of the Bill by the Senate was published in May 2014. The
PRESENT Bill definition of social enterprise was modified in May 2014 as ‘a
social mission-driven organisation that conducts economic activities providing
goods and services directly related to their mission of improving the well-being of
the poor, basic and marginalized sectors and their living environment’. The most
important goal of the PRESENT coalition is for government to recognise social
enterprises as key actors. Some of the provisions in the Bill would definitely be a
big boost.
Introduced by Senator ‘Bam’ Aquino, the Philippine Social Value Bill
proposes the inclusion of ‘social value’ into all government procurement. The Bill
sets out that the government should ‘include social value in competitive bidding
criteria and requirements for public procurement of goods, services and public
projects, defining social value as “The additional benefit to society of procuring a
good or service, over and above the direct benefit and value of the good or
service to the procuring entity. Additional benefits may include support for poor
communities or marginalized groups, advancement of human rights and social
justice, protection of the environment, and community development.”
Policy for MSMEs seems to be moving in the right direction. Republic Act
No. 11032 or the Ease of Doing Business and Efficient Government Service
Delivery Act of 2018 has been passed and signed into law and is anticipated to
provide some relief to MSMEs and social enterprise. Republic Act 11057 or the
Personal Property Security Act allows for the expansion of the types of assets
that can be used by MSMEs as collateral when applying for bank loans.
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Root Cause
Among the different problems the community faces, the enterprise intends to
deal with the poor quality of life or poor standards of living of people in the community as
it aims to holistically develop and improve well-being and life of the residents of Sitio
Sab-a. The social issue which is the poor quality of life or poor standards of living of the
residents of the community stems from different causes and problem that contributed to
the said issue. As stated in the overview of the social problem, different factors play a
major role to the social problem addressed that encompasses poverty; lack of
employable skills and education thus resulting to some residents not having a job, not
looking for a job (since they believe they are incapable of having a job) and for some is
to have jobs earning minimum wage or less; breadwinners and homemakers being
institutionalized leaving their children to neighbors, friends, relatives and family
members; members of the inability to acquire electricity and clean water due to financial
situation; poor drainage and environment; passing on of poor mindset and demotivation
from parents to offspring thus many children in the sitio does not attend to school
because they do not see the importance as well as they are demotivated with their
current situation. The environment the residents are living also contributes to the
problem of their standards of living. The exposed drainage, the narrow pathways, the
houses are built with flammable and poor-quality materials as well as the poor structural
16
integrity of the homes also affects the way they live. Many of the homes cannot
accommodate the number of members of the household to have a considerably a
comfortable life.
Environmental Landscape
There are various Institutions/Social Enterprises around the Philippines that
addresses the social issue of unemployment. The following stated below.
Institutions/Social
Year Started Interventions measures or solutions
Enterprises
High-end bag producer. Improved
Akaba 2013
incomes for producers.
Fair Trade processed food. For women
Alay Kapwa - Cebu 1990 livelihood, youth and education for
street children.
Art, crafts and fabric company.
Anthill 2010 Livelihoods and local indigenous skills
preservation
Art and furniture producers, working
Filo D’Oro 2005 with out of school youth for livelihood
and skills development
Jewellery design company working with
Graci Q Designs 2007 poor women producers to improve
livelihoods
Shoes from scraps. Improved incomes
Habi Footwear 2012
for women producers.
Ecotourism travel company.
Route 63 2012
Livelihoods, environment.
Table 1. Existing Social Enterprise
The measures or solutions of each enterprise were effective in solving the social
issue. And it was very successful where they were able to accomplish what was stated
in their mission of their social enterprise.
Barriers
Social innovation and social entrepreneurship are important elements in the
development of modern societies. Whereas setting up a business and managing it
towards success is commonly seen as a difficult task, the start of a Tahi-tahi social
enterprise may be even more challenging because really established a market of their
own, and very few only have known of the enterprise and the products. The Tahi-tahi
social enterprise operates a curtain making business, and we found out that having a
17
sewing machines and tools for sewing was quite expensive. One of the barriers of
having a social enterprise is that business functions aren’t always willing to share
budgets and stringent policies and procedures are to strict.
Opportunity
With the situation that many women are not part of the labor force as they have to care
and nurture their children and grandchildren at home as well as there are a number of
men who are considered “tambay” with the description of them not being employed, not
seeking employment and are wasting idle time. The Social entrepreneurship opportunity
in Mandaue City could help solve and alleviate problems of hunger, poverty, and
unemployment in the Sitio is to come up with a solution of giving job opportunities for the
women and men in Sitio Sab-a. The group sees the opportunity to help or aid the
unemployed women and youth to develop skills to create a livelihood through training
programs and seminars. In addition to creation of job opportunities or employment, and
skills development for the community, the enterprise is also an avenue to change their
negative mindset and perceptions about development and quality of life in general. In
addition, many citizens in Sitio Sab-a are open and pro-active. They are open to
suggestions and opportunities as they want to make their lives better but currently does
not know how to do it and where to start. Lastly, the social enterprise is an avenue to
help resolve the external and tangible issues they face as a society like the drainage
problem in the area and other issues not addressed by the government.
18
Chapter 3
THE SOCIAL ENTERPRISE
Mission Statement
“Empower, changing mindset and provide opportunities to
Mandauenanon men and women."
Vision Statement
Provide employment to 80 women and men, benefiting 45 families and
provide sustainable and better quality of life by 2023.
19
Key Strategies
Tahi-Hati wants to achieve the solutions that they come up to help solve and
lessen the problems in the Sitio by giving job opportunities to help out unemployed
women and youth expand their skills on sewing curtains and bedsheets through training
programs and seminars for them to generate their source of income. Tahi-Hati would
also like to achieve the success of their proposition in implementing the solutions to the
social problems in Mandaue City.
Indicators:
Unemployment Rate - A study showed that the Central Visayas
unemployment rate in 2018 was 4.8%. By the year 2023, the
unemployment rate will be decreased to 1.43%.
20
Operating Model
The operating model that the social enterprise will make use of is Employment
Model. The residence of the tapped community which is Sitio Sab-a will be employed to
provide livelihood opportunities and trainings/seminars. The products made from the
residence will then be sold to the target markets. Revenues will be divided to the
residences, the community and the enterprise.
21
CHAPTER 4
THE BUSINESS MODEL
Unique Selling Proposition. The enterprise’s unique selling proposition is sewing the
community together by supporting the community and providing local and good quality
window coverings and beddings made from fabrics taken from ethical and sustainable
sources.
Customer Segment. The customer segment that that the enterprise targets are
newlyweds, homeowners, dorms, condominium owners and apartment owners with
middle income bracket. The enterprise also targets hostels, inns, pension houses and
other HRIs.
Customer Relationship. The enterprise will establish its relationship by interacting and
engagement with customers and prospects through contact number, email, website and
through its social media pages.
Channels. The enterprise’s channel will be both virtual (social media, website and other
online selling platforms) and physical (retail slots and selling in expos and conventions).
The key
22
Key Activities. The key activities to be done by the enterprise would comprise of
training and seminars to improve the mindset and develop the employable skills of its
beneficiaries and potential employees. In the production side, given the products offered
by the enterprise, the key production activities would include sewing, packaging and
designing. The enterprise will also perform different marketing activities.
Key Resources. The key resource of the enterprise would be the financial resources,
human resources (employees) and physical resources such as raw materials, supplies
and equipment.
Key Partners. The enterprise will be partnering with NGOs to finance and invest in the
company. Different NGOs and foundations are looking and investing in social
enterprises. The enterprise will also have a close coordination with the community’s local
government units especially for the foundation of the community association where the
enterprise will be training and hiring the pool of members who are willing to work for the
enterprise.
Cost Structure. The enterprise’s cost structure is mainly composed of both its variable
costs as well as its fixed costs. Cost for raw materials, equipment, supplies, rent, utilities,
training, seminars, wages of employees, other production costs, accounting activities,
marketing activities and investments.
Revenue Streams. The enterprise’s revenue will be coming from product sales.
Investment may be current cost but it is expected to bring more to the enterprise in the
long run to keep the enterprise’s sustainability.
Social Impact. The social impact of the Tahi-Hati is to providing employment by creating
an enterprise that hires the jobless women and men of Sitio Sab-a. Furthermore, the
enterprise will also empower, enrich and uplift the families of the beneficiaries by helping
the beneficiaries realize that there is more to their life, that they can also dream and
have a better life and not just merely survive. With the enterprise that will provide them
employment, encouragement and help the residents to realize a better life thus the
enterprise will develop the community. A portion of enterprise’s profits will be centered
on improving the community’s general concern by fixing the drainage problem in the sitio
and by having other programs to aid the rise of the community. In addition, the
enterprise also supports and only patronize ethical and sustainable sourcing
23
CHAPTER 5
SUMMARY AND CONCLUSIONS
BIBLIOGRAPHY
Books:
Frynas, J.G. and Mellahi K. (2015) Global strategic management. 2015: Oxford
University Press, USA
Thompson, J.L. and Martin, F. (2010). Strategic management: awareness &
change. Cengage Learning EMEA.
Internet:
APPENDIX A
TRANSMITTAL LETTER
I understand that I will be part of their concept paper entitled: TITLE OF THE
STUDY whose aim it to WRITE THE OBJECTIVES OF YOUR PAPER.
I also understand that the researchers may contact me for more information in
the future. I understand that I was selected to participate in the study because I have the
necessary knowledge and experience which are helpful for the realization of the paper.
My participation in the study is granted freely. I have been informed that participation in
the interviews is entirely voluntary and I can refuse to answer any specific question. I
have been told that my answers to questions will form part of the thesis. This study will
benefit the IDENTIFY TO WHOM YOUR STUDY WILL BE SIGNIFICANT TO.
I understand that the results of this research will be given to me if I ask for them
and that the researcher is the person to contact if I have a question about the study or
about my rights as a study participant.
Sincerely yours,
_____________________________________________
Mayor, Municipality of _______________
Cebu, Philippines
Date signed:
27
APPENDIX B
COMMUNITY PROFILING SURVEY QUESTIONNAI
28
29
30
Part II:
Demographic Profile
Currently, our community has faced a number if challenges: (i.e poverty, racial discrimination,
unemployment)?________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________
Are there institutions (i.e., NGO, Public and Private Sector, Social Entrepreneur amd Individuals) addressing
the social issue in the community at the present ?
______________________________________________________________________________________
______________________________________________________________________________________
What are intervention measures (i.e. programs, activities and services) provided by these institutions? What
actual benefits do you think did the community receive?
______________________________________________________________________________________
______________________________________________________________________________________
______________________
Are the barangay officials and people in the community involved in the intervention?
______________________________________________________________________________________
______________________________________________________________________________________
______________________
In your opinion, is or are the implemented intervention measures effective? How were the lives affected by
the intervention?
______________________________________________________________________________________
______________________________________________________________________________________
______________________
In your opinion, how can people work together to remedy the social problem identified above?
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
APPENDIX C
MAP OF THE RESEARCH INSTRUMENT
APPENDIX D
PHOTO GALLERY
33
APPENDIX E
CURRICULUM VITAE
Profile:
My name is Zhanra Therese Arnaiz. I am
nineteen years old. Born on 6th day of February 2000. I
finished my primary education in Consolacion Central
School on 2012. I attended St. Paul College Foundation
Inc. where I completed my junior highschool and went to
University of Cebu where I finished my senior
highschool and graduated. Now, I am currently in my
2nd year of college, taking up Business Administration
majoring Marketing Management in University of San Carlos.
Studying Business Admistration, has always been one of my top choices since I
was young. Now that I am on the process of building my career, I am very much excited
knowing that my passion in helping the marginalized is possible through my career. In
my undregraduate program, the students are always thought to not only focus on
maximizing profit but as well as include social and environmental impact to the
community in building business.
I have been exposed to some depressed areas in Cebu and participated in
different community service. The world that we have today where everything in all
aspects has gotten into worse and the future seems blurry, a part of me wanted to be an
entrepreneur with a purpose to alleviate the social problems we have faced today.
Personal Information:
Name : Zhanra Therese Arnaiz
Date of Birth : February 6, 2000
Address : Lamac, Consolacion, Cebu
Phone : 0906-323-1526
Email : [email protected]
34
Educational Background:
Primary Education
Consolacion Central School
Junior High
St. Paul College Foundation Inc. (2015-2016)
Senior High
University of Cebu (2017-2018)
Tertiary Education
University of San Carlos – Downtown Campus (2018-present)
Trainings /Seminars/Workshop
IMMAP Digital Youth Congress South 2019
Profile:
My name is Paul D. Cortes born on April 14,
1999 in Cebu City. I grew up in Lahug for 13 years
before we moved in Mabolo, Cebu City. I started my
Nursery Education at Mabolo Christian Academy in
2003. I continued my Secondary Education in Mabolo
Christian Academy where I graduated Junior High
School in 2013. After graduated in Junior High School
I transferred in Matilda L. Bradford Christian School as
a Senior High School under ABM strand in 2017. On 2018, I started my Tertiary
Education and choosing Bachelor of Science in Business Administration – Major in
Marketing Management at University of San Carlos, where I am currently studying.
As a student in University of San Carlo I was able to join a lot of activity
community and I am very thank because I learned many things from it. As a social
entrepreneur I was able to see a lot of opportunity to help in the community and I
realized that life is not easy especially here in the Philippines and because of that it
motivates me to be thankful and do my responsibility for me to help the less fortunate
people in the future. What motivates me as a social entrepreneur is that seeing the
people suffering was a motivation for me to pursue a social enterprise that can help to
the community because success has nothing to do with what gain in life or accomplish
for yourself but it’s what you do for others will really matter.
Personal Information:
Name : Paul D. Cortes
Date of Birth : April 14, 1999
Address : 13 C borces St. Mabolo,Cebu City
Phone : 0923-538-3203
Email : [email protected]
36
Educational Background:
Primary Education
Mabolo Christian Academy
Secondary Education
Mabolo Christian Academy
Senior High
Matilda Bradford
Tertiary Education
University of San Carlos – Downtown Campus
Trainings /Seminars/Workshop
Business Owner
Work Immersion, JPTE Accounting Firm
Profile:
My passion for learning and being able to plot
ideas can be traced back to my childhood years. I
remember, I used to read a lot of books when I was
younger.I had trouble reading during my early years in
elementary school; hence, my mother hired a tutor for
me and we would read tons of story books after class to
improve my reading skills. It was in high school where I
started reading fiction and non-fiction books, young
adult novels and cookbooks to be specific, as a means of relaxation and learning since it
was then that I discovered my passion for cooking, a trait very common in my family.
Speaking of family, growing up in a typical Filipino family with very strong and close
family ties, I can say I had a good childhood. I grew up in a household where my needs
were prioritized and my wants were considered. I had lived a life with no troubles and
looking back on my past actually makes me think of the many circumstances wherein I
should have been thankful.
Fast forward to today, I have earned a few achievements to be proud of. I won
my first culinary competition in 2017, I graduated high school in 2018 and I am now
continuing my pursuit of higher education wherein I get to immerse myself with learning
experiences and opportunities I did not expect. Consequently, I discovered another
passion which is business. There is beauty in creating business ideas with the hopes of
making it work in real life. What motivates me most in creating business ideas is the
impact I could give, not just to my potential customers, but also to the people I can
provide employment opportunities to. If there is one thing that I learned about creating
business ideas, it is that we should not only think of profit, we should also take into
consideration how we can contribute wealth towards other people, our society in
general. Businesses do not always have to be acquisitive, it can also be altruistic.
Personal Information:
Name : Christian Jay Ocampo
Date of Birth : November 29, 1999
Address : 72 AA T.Padilla Street, Barangay T.Padilla, Cebu City
Phone : 0932-115-7725
Email : [email protected]
38
Educational Background:
Primary Education
Kiddiehaus of Learning (2011-2012)
Secondary Education
University of Cebu (2017 - 2018)
Tertiary Education
University of San Carlos (2018 - present)
Work Experience:
Office Aide, Office of the Cebu City Civil Registrar (April - May 2016)
On-the-Job Trainee, Soi Sm Seaside Cebu (December 2017 - January 2018)
39
Profile:
As a person who always want to be productive,
Sheena trains herself to always do something, may it be
big or small. She values teamwork and has the
negotiation skills. She is able to follow instructions
properly and has the ability to use initiative interpersonal
skills, with strong written and oral communication skills.
She is able to adapt immediately in a new environment
and is flexible when changes come. She is excellent in
organizational skills and gives accuracy and attention to details.
She has always been passionate about helping those in need and giving them a
better tomorrow. She believes that a business should not only focus on making profit
alone but is also able to help sustain the lives of others. Hence, why she aspires to be a
social entrepreneur in the future.
Personal Information
Name : Atria Sheena Estur
Date of Birth : March 16, 1999
Address : Block 2, Lot 3 Jemmie Homes Subdivision, Canduman,
Mandaue City
Contact Nos. : 0943-445-1024
E-mail Address : [email protected]
Educational Background
Primary Education
Mary Help of Christians School, Inc. (2008 – 2012)
Secondary Education
Sacred Heart School – Ateneo de Cebu (2012 – 2018)
Tertiary Education
University of San Carlos Bachelor of Science in Business Administration
Major in Marketing Management (2018 – present)
40
Profile:
My name is Kristine Ann Tambago Muyargas. I
was born on August 13, 1999 in Cebu City. I am
currently residing in Poblacion Ward 4, Minglanilla,
Cebu. I completed my primary education in Saint
Thomas Aquinas School Lawaan Montessori while I
graduated my secondary education in the University of
San Carlos – Downtown Campus. I am currently
attending the University of San Carlos – Downtown
Ccampus as I am taking Bachelor of Science in
Business Administration – Major in Marketing Management.
I have been involved in different community related activities. During my time as
a senior high school student as well as college student, I was sent to different depressed
communities and extended help with the guidance of the university. I was able to see
and reflect with the lives and stories I have witnessed. The suffering and possibilities to
make their lives better motivates me to become a social entrepreneur.
Personal Background:
Name : Kristine Ann T. Muyargas
Birthdate : August 13, 1999
Address : 776, Poblacion Ward 4, Minglanilla, Cebu
Contact No : 0917-1555-397
Email address : [email protected]
Educational Background:
Primary Education
Saint Thomas Aquinas School - Lawaan Montessori (2011-2012)
Junior High
Saint Thomas Aquinas School - Lawaan Montessori (2015-2016)
Senior High
University of San Carlos- Downtown Campus (2017- 2018)
Tertiary Education
University of San Carlos- Downtown Campus (2018- Present)
42
Profile:
I am Keisha Mae S. Nogaliza 19 years old. A
pure Filipina, was born and raised in the Northern
Province of Cebu, Province of Carmen. I started my
Primary Education at Carmen Central School in 2006
and finished in 2012. I continued my Secondary
Education at Cebu Academy in 2012 and finished 2016
where I graduated Junior High School. During my
Senior High School year I transferred at the University
of San Carlos under ABM Strand. I am now a second year college student taking up
Bachelor of Science in Business Administration Major in Marketing Management still in
the University of San Carlos, Downtown Campus.
My choice of college program is closely relative to my goals and my parents dream.
This goal and dream is to build or have a successful business. I chose to take up
marketing management for I know that the role of marketing is very vital to any business
activities. I forsee being a marketing graduate as a first step into achieving my highest
goal in life. This passion was built for I was living according to my parents expectation
and dreams, and as a daughter it is my duty to fulfill their dream in return for what they
have sacrifices for me.
Moreover, growing up as an aspiring businesswoman, the factor that would
motivate me to fulfill my social responsibilities is the poor quality of life in our country.
There’s this some days that I felt so sad every time I saw children or even adults on the
street asking and begging for food. At this period of time, there are lots of Filipino people
who are in need. I want to help them by giving them an opportunity to work, hopefully. I
want to help them in a way that they can already sustain their daily needs and lastly I
want to inspire them by making them see or experience that there is a better world out
their for them, if they will just work hard and think for the future.
Personal Background:
Name : Keisha Mae S. Nogaliza
Birthdate : January 12, 2000
Address : Cogon East, Carmen, Cebu
Contact No : 0923-5214-357
Email address : [email protected]
43
Educational Background:
Primary Education
Carmen Central School (2011-2012)
Junior High
Cebu Academy, Carmen Cebu (2015-2016)
Senior High
University of San Carlos- Downtown Campus (2017- 2018)
Tertiary Education
University of San Carlos- Downtown Campus (2018- Present)
Trainings /Seminars/Workshop
IMMAP Digital Youth Congress South 2019
Affiliations/Membership in Organization
Campus Ministry Organization
Citizenship Advancement Training-CAT
Skills
Flexibility and transparency in time management
Able to follow instructions properly and has the ability to use initiative
Accuracy and attention to details
Can work under pressure
Interpersonal skills
Profile:
I am Yeddah Marie M. Mondero, 20 years old and I
am currently studying at University of San Carlos taking up
Bachelor in Science, Major in Marketing Management. I am
a hardworking student who has a goal to accomplish. I
would like to be a successful businesswoman who could
not only build up a business for profit but I would also love
to build a business wherein I could somehow help aid the
social problem in our society. I know that change really is a
big thing but starting with a genuine help could really give a huge impact to one’s life.
Personal Information:
Name : Yeddah Marie Mato Mondero
Birthdate : October 17, 1999
Address : Block 10 Lot 17 Escala, Corona Del Mar, Pooc Talisay
City
Contact no. : 09490540142
Email Address : [email protected]
Educational Attainment
Primary Education:
University of San Carlos – South Campus
Junior High School:
University of San Carlos – South Campus
Senior High School
University of San Carlos – Downtown Campus
Tertiary Education:
University of San Carlos – Downtown Campus