Leading With Passion and Purpose: Joey Concepcion on What Makes a Good Entrepreneur

From running F&B giant RFM Corporation to founding Go Negosyo, Joey Concepcion is undeniably experienced—and he is ready to help mentor aspiring entrepreneurs. Here's how.

Joey Concepcion, a multi-hyphenated man in his own right, is foremost known as the founder of Go Negosyo—a non-profit organization that helps 1.076 million small and medium enterprises (MSMEs). These drivers of the Philippine economy make up 99.58% of the country's listed establishments, making this sector a small but mighty force.

Beyond that, he is also the President and CEO of food and beverage (F&B) giant RFM Corporation, Director at Concepcion Industrial, and the Private Sector Advisory Council Jobs Committee Head of the current Marcos Jr. administration. Truly an established business figure who dons many hats!

The knowledge and skills for Concepcion to get to where is today comes with many years of experience and lessons—one that he is willing to share as Go Negosyo's mentor to many aspiring businesspeople and entrepreneurs. We look back at his storied past, where his entrepreneurship roots run as deep as his family's history.

Passionate About Entrepreneurship

Passion is the foundation of many businesses and dreams; according to the seasoned businessman, entrepreneurship is his. "I am passionate about entrepreneurship because of the environment I grew up in. I believe that there is beauty in becoming your own boss, but I am not totally against those who want to work for others," Concepcion explains. "Both experiences will help you develop and mature as a person."

In fact, this comes second nature to Concepcion, as he grew up in a family of entrepreneurs. "If you look at my family, my grandfather was an entrepreneur, and he was also the Secretary of Agriculture during that time. My father carried on the torch on top of running the business and growing it, [and] he even started [The National Citizens' Movement for Free Elections] NAMFREL."

"If you look at my role today, it's similar to [the] older generations', basically. I changed the business model of RFM and focused it on brands," the entrepreneur says.

"Now, we have MSMEs, so somehow you can see generation to generation, and it's not only growing our business but helping others grow their business, [too]," he continues. Concepcion still manages the family business, while mentoring business owners over at Go Negosyo. "I was born into a family of entrepreneurs, [so] ever since, my parents are expecting me to run RFM."

A David vs. Goliath Situation

Today, RFM Corporation is one of the largest food and beverage companies in the Philippines with an asset size of over $300 million USD as of 2014. An inspiring story backed by experience and a good strategy, RFM serves as a reminder for businesses that a good strategy will pay off in the long run.

Established in 1958, RFM Corporation was a pioneer in the flour-milling industry in Asia. Soon after, under the Concepcion family's leadership—Concepcion's grandfather, Jose N. Concepcion, his father Joecon (Jose Concepcion Jr.), and eventually himself—RFM Corporation evolved into a multi-company enterprise. Over the years, various partnerships, acquisitions, and licensing agreements have bolstered RFM's market presence in the country.

What's more, some acquisitions even grew in popularity. Take for example soft drink and ice cream companies Cosmos Bottling Corp. and Selecta Dairy Phil., Inc. Prior to the acquisition, both were small-time brands—up against established, big names.

The strategy? Catering to the masses. "When I bought Cosmos, it was Sarsi that was supposed to be the key brand; but in the end, it became Pop Cola," Concepcion explains. "Pop Cola was already the market leader. Not everybody knows that, but we dominated the sari-sari stores."

If anything, Pop Cola's success led to an offer from Coca-Cola, one of the brand giants of the country. "At that time we were offered by Coke to sell to them. So I thought about it. We were already very dominant. We were doing well," he continues.

"But when the offer came, it was too hard to refuse," he says, plain and simple.

A Lesson on Thinking Ahead

While most would rather keep a business that was doing well, Concepcion's decision to sell came with long-term thinking. "The reason I decided to shift out of soft drinks is that eventually if San Miguel suddenly regained Coca-Cola, they would have that and beer. That will be very powerful in sari-sari stores. And it was happening; it was just a matter of time. So that's when I decided to sell. We got a huge amount for that. It was well worth it, and when we did it, it happened. San Miguel became popular for Pop Cola."

"The previous management that I had which I built in Cosmos [was] able to get RC because Coke didn't take RC," he adds. "And of course when San Miguel was able to get Pop Cola, they had challenges in Coke because they have to pay royalty fees as high as 20%."

"In the end, it didn't work for San Miguel. They eventually parted ways. So the purchase of Coca-Cola of Cosmos actually did harm to that relationship, which I knew was going to happen."

After soft drinks, he prioritized the other brands under the RFM name. "We just focused on Selecta. From ice cream, we are now a big challenger to Nestle. We grew huge. Selecta started only in ice cream, then into dairy milk. And of course, now we have other businesses. We do all the bread for [companies like] McDonald's."

The RFM Corporation today houses name brands, such as White King for cake mixes and flour-based products, heritage brand Royal and Fiesta for pasta and sauces, Sunkist fruit juices, Selecta milk-based products, and Selecta ice cream, which is under the joint venture with Unilever—a dominant market leader in the ice cream industry.

Product excellence, aggressive marketing, keen management, and good governance are just some of the driving forces that steer RFM's recognized success. But ultimately, it all goes back to serving the Filipino people. "We give the Filipino consumer the option to buy world-class products at affordable prices. Value for money is the same commitment we uphold in entering the highly competitive and dynamic world market."

Being in the Business of Helping Businesses Grow

As a Filipino businessman who was raised with an entrepreneurial mindset, Concepcion strongly believes in helping his fellow countrymen with their businesses. This is the thinking that gave rise to the Go Negosyo advocacy of the non-stock, non-profit organization founded by Concepcion, the Philippine Center for Entrepreneurship (PCE).

"We believe that Filipinos can address poverty in the country by engaging in entrepreneurship and developing an optimistic, passionate, creative and innovative, resourceful, diligent, and persevering character," the company's site reads. "We encourage everyone to take charge and make the most of their resources and abilities by utilizing and transforming these into viable enterprises."

A change in mindset and attitude is what Go Negosyo aspires for the Filipino people. "MSMEs contribute a lot to the economy," Concepcion explains. "They also contribute a large chunk to our labor force. Being an entrepreneur is also an alternative to employment. You can be your own boss. Once you become successful, you not only lift yourself out of poverty, [but] you can help others through employment opportunities."

Set on helping businesses grow, Concepcion takes on the role of mentor. "A lot of my time is spent on Go Negosyo. As we grow our MSMEs, what will happen here is that 99% will be more powerful. Right now, they are large in numbers. But in terms of contribution to Gross Domestic Product (GDP), they're still fairly small, but we really want to scale them up."

"The whole idea is you get more [companies] to scale up, so they will hire more people. And as we hire more people, jobs will grow and the economy will. When there's more spending power here, we all benefit, including the big companies."

The Highs and Lows of an Entrepreneur

Having a sharp business acumen has given Concepcion the skills to both run a business and start many businesses along the way. "Even though I am managing our family corporation, I have started many enterprises and that includes success and failures along the way."