Navigating the Future: The Udenna Way

T(Second of two parts) oday, the world is moving so fast and yet, Filipinos can’t even venture big time in the tech space. There are a lot of tech-savvy Filipinos who have brains and ideas. But they lack capital and the stomach to just do it. It’s hard, especially if one lacks access to capital markets, bank loans or other debt instruments. It entails hundreds of millions of pesos, and there are only a handful of VCs (venture capitalists) here to seed. All financial institutions, at least on the creditors side, want collateral, and it takes a lot of effort and size to issue notes, bonds, etc., if you’re not a big conglomerate. But the future is around the tech space, that’s why even though the telco project is so challenging, we are deeply inspired by it. We are hungry to see it succeed. Is it easy? No. Is it financially challenging? Yes. But can it be done? Why not?

You see, in our group, we have a special culture called the 5Hs. You can only work in Udenna if you have them. The first thing I always tell our people is to stay Hungry — Hungry for change, for opportunities to do things better, to do things that have not been done before. Then there’s Hard work — Work hard not just to accomplish but to exceed our goals, to not stop when we’re tired but when we’re done. Next, be Honest — in all dealings, even if nobody’s looking. Fourth, stay Humble — “Bawal ang hambog.” Stay humble and keep yourself grounded despite the many accomplishments. Last, be Holy — When all has been said and done, recognize that there is always a Greater Hand at work behind every success.

We in Udenna do the things we do because we want to help local businesses grow, compete, and thrive with the resources and expertise we have. We see a future where consumers, particularly our countrymen, are the ultimate beneficiaries.

What I shared are just some of the challenges we had to endure in the past to reach today, which is the future we were aiming for many years ago. We still have a lot of battles to be won, now on an even bigger scale. When you disrupt something, prepare to be disrupted. The bigger the market position, the tougher. If you observe the industries we are in, they are very competitive. Anybody can enter. But we grow because we work hard to get a considerable market share organically, or through strategic M&As.

But if there is a challenge, why do we insist on doing business? Because the potential and possibilities of success far outweighs them all. We invest in businesses not because of what they are now but because of what they can be.

The business landscape has drastically changed globally, and is changing still. Comparing the Fortune 500 companies between 1955 and 2019, there are only 52 companies that appear in both lists since it started. Where did the 448 companies go? The fact that nearly nine of every 10 Fortune 500 companies in 1955 are gone or merged, shows that there’s been a lot of market disruption and churning over the last six decades. It’s not surprising that the tech sector is the key catalyst for this change in the world.

But can the same be said of the Philippines? What were the top companies 20 years ago and the top 20 today? What new companies are emerging in our country?

In terms of capital markets over the past 20 years, we see that there’s been growth in the Philippine capital markets as shown by the bellwether Philippine Stock Exchange Index (PSEi). However, it’s still the same business groups that are in the top 10 stocks that are in the PSEi. There has not been a single new entrant into the top 10 rankings in the past 20 years.

The future of the Philippines is in its people, and entrepreneurs have a big role to play. We need more new entrepreneurs to rise up. “Magaling ang Pinoy” (Filipinos are good).

There’s no doubt about our creativity and passion. Filipinos will never run short of world-class ideas. To cite, Dr. Leonardo Gasendo, a US-based Chemical Engineer who originates from Bacolod City, invented the self-charging car which was granted a US Patent. His vision is for the Philippines to be the renewable energy capital of the world. Another brilliant example is Dado Banatao, the Bill Gates of the Philippines who developed the first Windows Graphics accelerator chip for personal computers. He’s a native from Cagayan Valley and is now a tech innovator and venture capitalist in Silicon Valley. Dado points out a big flaw in the Philippines that prevents the flourishing of tech companies: the lack of venture capitalists. He cites Silicon Valley which was built by entrepreneurs and investors.

I dream of a time when brilliant entrepreneurs have better access to funding and are not forced to sell. And whose companies can land in the top 20 companies of the country. I see a future where the best global entrepreneurs are Filipinos who possess the 5H. I look forward to the day when top global companies are from the Philippines; companies that have a vision for the nation, are doing what is right not only for the business but for the country and all its consumers, and are embracing competition to provide better products and services. Success in business is not just for a privileged few. As millennials would say, “Sana all.”

We in Udenna see a future where just because it’s difficult doesn’t mean we don’t do it. We don’t get it done right all the time. But we get it right most of the time. Let’s do our fair share to help other entrepreneurs, to raise a new breed of visionaries, to champion a gritty generation, because the future belongs to the bold and persevering. I always say that I have more balls than brains because business is not easy, especially because of the ever-changing landscape.

We are thankful to those ahead of us who paved the way for entrepreneurs like me to break through. We pay it forward by doing our own share and making a difference in the industries that we are in and giving others that same opportunity.

As we always remind the Udenna Group: we are in the business of business. We set our eyes on industries we are not currently in, to see if there are any gaps we could potentially address, markets we can serve. More broadly, we hope that through our investments, we are able to do our part in building a stronger business community here in the Philippines.

We stand on the back of people who have trusted us, and are cheering for us to succeed. “Mura lang ang pera. Mahal ang tiwala. (Money is cheap, trust is expensive) We realize hindi namin kaya (we can’t do it) on our own. We need the help of others. Kaya nga may slogan kami (that is why we have a slogan), ‘Success is not complete without U.’” This is not just a business for us. It is a mission. We hope that you will continue to support us in our mission to improve the lives of Filipinos. Most especially, we hope that you will support young entrepreneurs. There’s a lot of them who are more brilliant, but just don’t have the break or support needed. Let’s cultivate an environment that will allow them to thrive.

So how do you navigate the future? The theme says it all: overcome challenges — there will be many — and maximize opportunities. Is it easy? No. Is it challenging? Yes. But can it be done? Why not?

We, in Udenna, started as a challenger, and we will always be a challenger.

It’s never business as usual. We will constantly challenge the status quo, challenge possibilities, challenge ourselves to get up again each time we fall, and challenge ourselves to outperform not just the competition but ourselves — all for God and for the Filipino.

nThis article was based on the speech delivered by the author at the recent The Manila Times 11th Business Forum.