I often hear during our public entrepreneurship mentoring sessions how the ordinary folk we mentor in entrepreneurship express their pride in fighting a fair fight. “Lumalaban ng patas,” as they say in the vernacular. This sentiment resonates deeply within the working class and especially among MSMEs.

Indeed, there is honor in success earned through honest toil. Few things can dispirit an honest man more than witnessing a lopsided fight, where the victor is less than worthy of the prize. It offends our collective sense of fairness and justice. Inequality can wear down even the most courageous among us. What use is following the rules if, in the end, these rules serve no purpose at all?

These thoughts come to mind as national attention turns to the President’s crusade against corruption in government. I do not doubt that even our neighbors in ASEAN – and beyond – are watching with great interest how this will all pan out. The outcome of this battle will shape not only our national narrative but also the future of entrepreneurship in our country.

Institutional corruption is detrimental to business because it raises costs and creates an environment rife with uncertainty. A 2022 study commissioned by the ADB found that control of corruption is positively associated with entrepreneurship and that countries that are better able to control corruption enjoy higher levels of entrepreneurship.

How does corruption affect economic growth? Conventional wisdom suggests a negative correlation: a more corrupt country tends to experience slower economic growth. However, some argue that “greasing the wheels” can expedite processes in inefficient bureaucracies so that business may continue. This warped sense of “diskarte,” or resourcefulness, can breed a culture where it’s OK to pay to play, thereby diminishing the incentive for institutions to improve their processes. Those who wish for good governance should not settle for these quick fixes and workarounds and instead must aspire for sustainable changes that foster a fair and competitive environment.

Corruption complicates the journey for aspiring entrepreneurs because it undermines fair competition. In countries where corruption is rampant, many potential entrepreneurs think twice before taking the plunge because success often hinges on the willingness to bribe anyone – from a registry clerk to a lawmaker. Conversely, those who lack skills may resort to courting political favor rather than focusing on improving their products and services.

It is not far-fetched to surmise that corruption deters many from joining the formal sector and drives them into the underground economy. This has significant implications for our overall economic health. For years, the government has attempted to coax underground entrepreneurs into the formal sector because, in the long term, it is advantageous for our economy that micro and small businesses grow, scale up and become part of the formal sector.

Can a country’s citizens bear alone the burden of economic development? Can the private sector shoulder this responsibility without robust institutional support? The answer is a resounding no. We need an environment conducive to business growth. Institutional corruption is a significant stumbling block to entrepreneurship and, by extension, to national development.

The President has issued his unequivocal condemnation of corruption, and he has every reason to do so. Just last week, I joined the Australia-ASEAN Business Forum in Adelaide and saw how strongly our neighbors value how their institutions and good governance drive growth. As we prepare to host ASEAN in 2026, we must show the region – and the world – that the Philippines is serious about building strong institutions and eliminating corruption. Nothing will inspire confidence in our nation more than a demonstrated commitment to fighting this battle head-on.

Corruption is our biggest stumbling block to prosperity. We cannot promise Prosperity for All while tolerating systems that benefit the few at the expense of the many. The prosperity we should envision must be inclusive – where every farmer, every MSME and every Filipino entrepreneur has the chance to succeed on their own merits.

Corruption – whether in agricultural smuggling that robs our farmers of a fair market, or in flood-control projects mired in irregularities – cuts straight to the heart of this issue. For every shipment of smuggled onions or rice that slips past customs, local farmers and small traders lose. For every overpriced public works project, taxpayers – including our struggling MSMEs – shoulder the cost. Corruption here is not an abstract issue; it has direct, painful consequences on livelihoods, competitiveness and trust in the system.

This is not just a fight for fair competition. It is a fight for the kind of future we want for our country, for a Philippines where prosperity is shared, institutions are strong and every Filipino truly has the chance to “lumaban ng patas.”

Originally Published in Philippine Star