Commencement Address
Ateneo de Manila University
March 27, 2004 By
John L. Gokongwei, Jr.
I wish I were one of you today, instead of a 77-year-old man, giving 
a speech you will probably forget when you wake up from your hangover 
tomorrow. You may be surprised I feel this way. Many of you are 
feeling fearful and apprehensive about your future. You are thinking 
that, perhaps, your Ateneo diploma will  not mean a whole lot in the 
future in a country with too many problems. And you are probably 
right. You are thinking that our country is slipping?no, sliding. 
Again, you may be right. Twenty years ago, we were at par with 
countries like Thailand, Malaysia, and Singapore. Today, we are left 
way behind. You know the facts.
Twenty years ago, the per capita income of the Filipino was 1,000 US 
d ollars.  Today, it's 1,100 dollars.  That's a growth of only ten 
percent in twenty years.  Meanwhile, Thailand's per capita income 
today is double ours; Malaysia, triple ours; and Singapore, almost 
twenty times ours. With globalization coming, you know it is even 
more urgent to wake up. Trade barriers are falling, which means we 
will have to compete harder. In the new world, entrepreneurs will be 
forced to invest their money where it is most efficient. And that is 
not necessarily in the Philippines. Even for Filipino entrepreneurs, 
that can be the case.
                      
For example, a Filipino brand like Maxx candy can be manufactured in 
Bangkok?where labor, taxes, power and financing are cheaper and more 
efficient?and then exported to other ASEAN countries. This wil l be a 
common scenario, if things do not change.  Pretty soon, we will 
become a nation that buys everything and produces practically 
nothing.  We will be like the prodigal son who took his father's 
money and spent it all. The difference is that we do not have a 
generous father to run back to. But despite this, I am still very 
excited about the future. I will tell you why later. 
                         
You have been taught at the Ateneo to be "a person for others."  Of 
course, that is noble: To serve your countrymen. Question is: How? 
And my answer is: Be an entrepreneur! You may think I am just a 
foolish man talking mundane stuff when the question before him is 
almost philosophical. But I am being very
thoughtful here, and if I may presume this about myself, being 
patriotic as well.
                       
Entrepreneurship is the answer. We need young people who will find 
the idea, grab the opportunity, take risk, and set aside comfort to 
set up businesses that will provide jobs. But why? What are jobs? 
Jobs are what allow people to feel useful and build their self-
esteem. Jobs make people productive members of the community. Jobs 
make people feel they are worthy citizens. And jobs make a country 
worthy players in the world market. In that order of things, it is 
the entrepreneurs who have the power to harness the creativity and 
talents of others to achieve a common good. This should leave the 
world a better place than it was. Let me make it clear: Job creation 
is a priority for any nation to move forward. For example, it is the 
young entrepreneurs of Malaysia, Thailand, and Singapore who created 
the dynamic businesses that have propelled their countries to the 
top. Young people like yourselves. Meanwhile, in the Philippines, 
progress is slow.  Very little is new. Hardly anything is fresh. With 
a few exceptions, the biggest companies before the war?like PLDT, 
Ayala, and San Miguel?are still the biggest companies today. All 
right, being from the Ateneo, many of you probably have offers from 
these corporations already. You may even have offers from JG Summit. 
I say: Great!  Take these offers, work as hard as you can, learn 
everything these companies can teach?and then leave! If you dream of 
creating something great, do not let a 9-to-5 job?even a high-paying 
one?lull you into a complacent, comfortable life. Let that high-
paying job propel you toward entrepreneurship instead.
                          
When I speak of the hardship ahead, I do not mean to be skeptical but 
realistic. Even you Ateneans, who are famous for your eloquence, you 
cannot talk your way out of this one. There is nothing to do but to 
deal with it. I learned this lesson when, as a 13-year-old, I lost my 
dad. Before that, I was like many of you: a privileged kid. I went to 
Cebu's best school; lived in a big house; and got free entrance to 
the Vision, the largest movie house in Cebu, which my father owned. 
Then my dad died, and I lost all these. My family had become poor?
poor enough to split my family. My mother and five siblings moved to 
China where the cost of living was lower. I was placed under the care 
of my Grand Uncle& nbsp;Manuel Gotianuy, who put me through school. 
But just two years later, the war broke out, and even my Uncle Manuel 
could no longer see me through. I was out in the streets?
literally.         
                      
Looking back, this time was one of the best times of my life.  We 
lost everything, true, but so did everybody! War was the great 
equalizer. In that setting, anyone who was willing to size up the 
situation, use his wits, and work hard, could make it! It was every 
man for himself, and I had to find a way to support myself and my 
family. I decided to be a market vendor. Why? Because it was 
something that I, a 15-year-old boy in short pants, could do. I 
started by selling simple products in the palengke half an hour by 
bike from the city. I had a bicycle.  I would wake up at five in the 
morning, load thread, soap and candles into my bike, and rush to the 
palengke. I would rent a stall for one peso a day, lay out my goods 
on a table as big as this podium, and begin selling. I did that the 
whole day. I sold about twenty peso s of goods every day. Today, 
twenty pesos will only allow you to send twenty text messages to your 
crush, but 63 years ago, it was enough to support my family.  And it 
left me enough to plow back into my small, but growing, business. I 
was the youngest vendor in the palengke, but that didn't faze me. In 
fact, I rather saw it as an opportunity. Remember, that was 63 years 
and 100 pounds ago, so I could move faster, stay under the sun more, 
and keep selling longer than everyone else. Then, when I had enough 
money and more confidence, I decided to travel to Manila from Cebu to 
sell all kinds of goods like rubber tires. Instead of my bike, I now 
traveled on a batel?a boat so small that on windless days, we would 
just float there. On bad days, the trip could take two weeks!  During 
one trip, our batel sank! We would have all perished in the sea were 
it not for m y inventory of tires. The viajeros were happy because my 
tires saved their lives, and I was happy because the viajeros, by 
hanging on to them, saved my tires.  On these long and lonely trips I 
had to entertain myself with books, like Gone With The Wind.
                           
After the war, I had saved up 50,000 pesos. That was when you could 
buy a chicken for 20 centavos and a car for 2,000 pesos.  I was 19 
years old. Now  I  had enough money to bring my family home from 
China. Once they were all  here,  they  helped me expand our trading 
business to include imports. Remember  that  the war had left the 
Philippines with very few goods. So we imported  whatever  was  
needed and imported them from everywhere?including used  clothes and 
textile remnants from the United States. We were probably the first 
ukay-ukay dealers here. Then, when I had gained more experience and 
built my reputation, I borrowed&nbs p;money from the bank and got 
into manufacturing.  I saw that coffee was abundant, and Nescafe of 
Nestle was too expensive for a country still rebuilding from the war, 
so my company created Blend 45. That was our first branded hit. And 
from there, we had enough profits to launch Jack and Jill. From one 
market stall, we are now in nine core businesses, including retail, 
real estate, publishing,  petrochemicals, textiles, banking, food 
manufacturing, Cebu Pacific Air and Sun Cellular. When we had shown 
success in the smaller businesses, we were able to raise money in the 
capital markets?through IPOs and bond offerings-- and then get into 
more complex, capital-intensive enterprises. We did it slow, but sure.
                        
Success doesn't happen overnight. It's the small successes achieved 
day by day that build a company.  So, don't be impatient or focused 
on immediate financial rewards. I only started flying business class 
when I got too fat to fit in the economy seats. And I even wore a 
used overcoat while courting my wife?it came from
my ukay-ukay business.  Thank God Elizabeth didn't mind the mothball 
smell of my overcoat or maybe she wouldn't have married me. Save what 
you earn and plow it back. And never forget your families! Your 
parents denied themselves many things to send you here. They could 
have traveled around the world a couple of times with the money they 
set aside for your education, and your social life, and your 
comforts. Remember them?and thank them. When you have families of 
your own, you must be home with them for at least& nbsp;one meal 
everyday. I did that while I was building my company. Now, with all 
my six children married, I ask that we spend every Sunday lunch 
together, when everything under the sun is discussed.  As it is with 
business, so it is with family. There are no short cuts for building 
either one. Remember, no short cuts.           
                        
Saint Ignatius of Loyola, your patron saint, and founder of this 450-
year old organization I admire, described an ideal Jesuit as one 
who "lives with one foot raised." I believe that means someone who is 
always ready to respond to opportunities. Saint Ignatius knew that, 
to build a successful organization, he needed to recruit and educate 
men who were not afraid of change but were in fact excited by it. In 
fact, the Jesuits were one of the earliest practitioners of 
globalization. As early as the 16th century, upon reaching a foreign 
country, they compiled dictionaries in local languages like Tamil and 
Vietnamese so that they could spread their message in the local 
language. In a few centuries, they have been able to spread their 
mission in many countries through education.  The Jesuits have 
another quote.  "Make the whole world your house" which means that 
the ideal Jesuit must be at home everywhere. By adapting to change, 
but at the same time staying true to their beliefs, the Society of 
Jesus has become the long-lasting and successful organization it is 
today and has made the world their house.
                        
So, let live with one foot raised in facing the next big 
opportunity:globalization. Globalization can be your greatest enemy. 
It will be your downfall if you are too afraid and too weak to fight 
it out.  But it can also be your biggest ally. With the Asian Free 
Trade agreement and tariffs near zero, your market has grown from 80 
million Filipinos to half a billion Southeast Asians. Imagine what 
that means to you as an entrepreneur if you are able to find a need 
and fill it. And imagine, too, what that will do for the economy of 
our country!  Yes, our government may not be perfect, and our 
economic environment not ideal, but true entrepreneurs will find 
opportunities anywhere.  Look at the young Filipino entrepreneurs who 
made it. When I say young, and I'm 77, remember, I am talking about 
those in their 50s and below. Tony Tan  of Jollibee, Ben Chan of 
Bench, Rolando Hortaleza of Splash, and Wilson Lim of Abensons. 
They're the guys who weren't content with the 9-to-5 job, who were 
willing to delay their gratification and comfort, and who created 
something new, something fresh. Something Filipinos are now very 
proud of. They all started small but now sell their hamburgers, T-
shirts and cosmetics in Asia, America, and the Middle East. In doing 
so, these young Filipino entrepreneurs created jobs while doing 
something they were passionate about.
                             
Globalization is an opportunity of a lifetime?for you.  And that is 
why I want to be out there with you instead of here behind this 
podium, perhaps too old and too slow to seize the opportunities you 
can.  
                                  
Let me leave you with one last thought. Trade barriers have fallen. 
The only barriers left are the barriers you have in your mind. So, 
Ateneans, Class of 2004, heed the call of entrepreneurship. With a 
little bit of will and a little bit of imagination, you can turn this 
crisis into your patriotic moment?and truly become a person for 
others. "Live with one foot raised and make the world your house." To 
this great University, my sincerest thanks for this singular honor 
conferred on me today.
To the graduates, congratulations and Godspeed.
"Ad Majorem Dei Gloriam".
Thank you.