OVERSEAS Filipino workers (OFWs) have probably thought about starting their own business when it’s time to go back home. But that’s easier said than done.

Aside from common start-up problems, such as access to funds, registrations and other necessities, they worry about who will help run the business, who will manage the finances and what can be done to keep the company abreast of consumer trends.

Although OFWs think that it is possible to start a business in the Philippines with someone they trust, but the fact is that they are practically coming in from the cold. Although the thought of earning enough from working abroad and starting a business in the home country is exciting, the reality is that they really need a huge amount of help and guidance.

Education and improved access to start-up funds help alleviate challenges. But the dangers go beyond money and knowledge. MDGZ Roldan, author of the study “Reintegrating Returning Overseas Filipino Workers through Entrepreneurship,” stressed the need to “fine-tune” the government’s migrant business program based on the actual needs and experiences of the returning OFW beneficiaries.

OFWs’ families are naturally concerned about how much money startup companies can produce, and whether that amount is even close to what their loved ones earn abroad. Stability is another issue, as some products and services are seasonal or have volatile demand. And the question of “how much income is enough to push an OFW to leave his work abroad and depend on his businesses in the Philippines” always comes up.

Having a good amount of capital and runway is essential. Some banks and non-bank financial institutions focus on giving OFWs access to credit. Global Cebuana, for one, has a dedicated OFW loan with low interest rates and quick approvals tailored to the needs of Filipinos working (or to be deployed) abroad.

Founded in 2023 by GDFI Holdings and Cebuana Lhuillier, the financing company aims to empower OFWs to achieve their goals and dreams, including starting a business.

Almost one in three OFWs start their own businesses, according to a study by CB Niverba, MPB Abanilla, SMO Gregorio, RL Lumanlan, DVR Moralde and JG Fronda (“From Employment to Entrepreneurship: Profiling Filipino Overseas Workers in Abu Dhabi, UAE) with and without Business Ventures”). Their motivations include financial independence and skill utilization. They are also highly considering simultaneous entrepreneurship and full-time business. The “expertise utilization” part says that they learn from their own experiences and are therefore inclined to start a business out of them, which is a positive trait.

Specialist clinics, restaurants

Specialty clinics and restaurants are some of the startup types that OFWs end up in. Because it is better to be an expert in the field they want to explore further, nurses and chefs are at the top of these businesses. In addition to their skills, they must consider the market and the location of the business. For example, it is not right to open a cold drinks shop in a place with temperatures below the country’s low average.

Assuming the would-be entrepreneur has the skills, knowledge, money and staff to run it, making it happen is the next big step. The question to keep asking is, “How will this new business help me, my family, and the community?” The ideal direction is to consequently work together not only for the future of one Filipino but for many.

A motivation that goes beyond “the money” can positively impact the development of the OFW’s entrepreneurial journey and has proven to be effective in driving the business through almost all known challenges.

Aian Guanzon is part of Global Cebuana, with expertise in business development. He has academic degrees in nursing, finance and marketing. He is interested and has experience in fintech, insurance and BPO.