Sun. Sep 23rd, 2018
ofw common business problems

The Risk of OFW’s Business Managed by Close Kins

Working abroad is just one way Filipinos do in order to save money or to create an investment in the future. A small business venture appears to be the most practical destination where to put the hard-earned money of OFWs next to the basic needs of their families.

There are a lot of OFW success stories that end up as a failure when talking about managing a business with family members or distant relatives.

Fixed-term contract workers or returning OFWs opt to invest on sari-sari stores, laundry shop, electronic repair shops and other small and medium enterprises.

If ever OFWs are able to save enough, they invest money on small apartments for rent or transport services like UV express or taxi franchise. However, they have the tendency to delegate their business to their loved ones when an opportunity to work abroad knocks again.

Read more about Top Ten Business Ideas for Overseas Filipino Workers

People have different interests when it comes to business handling and financial management. A start-up business can be manageable for OFWs but not for everybody in the family. Financial mismanagement is the key reason why it is risky for an OFW business to be managed by his or her family members back home.

Here are some reasons why any business left behind by OFWs to their loved ones becomes difficult to prosper:

Lack of education

Many OFWs are interested to open up their own business even before they leave the country. However, if family members are not fully equipped with financial education, there is no guarantee that they could handle an OFW business properly.

Personal interest

This is just one reason why business funds are often misappropriated. There are instances where the funds are allocated to additional expenses at home or just to satisfy personal wants.

Trust problem

The personal trust of an OFW is very important particularly for close family members who will handle the business. In reality, OFWs are not able to monitor the daily operation of their business especially when personal remittances and revolving funds are mixed up.

It is no guarantee that they will never be fooled by their family members when it comes to money matters.

Having a smooth relationship within close family members can be a good start when planning to put up a business. Any business decision should not be taken over by anyone because this could create miscommunication someday.

OFWs only need to find the right people who are willing to learn new things. Family members are encouraged to attend business fairs and OFW programs offered by DOLE, DTI and local government units.

Putting up a small business is always included in the long list of personal goals for OFWs. They know for a fact that overseas job will not provide them with a permanent stature.

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