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    Home»Success»Entrepreneurship»Why This Tycoon Says Divestment Should Be in Every Entrepreneur’s Playbook
    Entrepreneurship

    Why This Tycoon Says Divestment Should Be in Every Entrepreneur’s Playbook

    FinancialAdviser.phMay 5, 20253 Mins Read
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    For many entrepreneurs, walking away from a business feels like failure. But for Eusebio “Yosi” Tanco, Chairman of Digiplus Interactive and STI Holdings, knowing when to divest isn’t a sign of weakness—it’s a critical business skill.

    “Divestment is not embarrassing,” Tanco said in an interview. “It’s part of the strategy.” After decades of experience across industries—textile, manufacturing, education, and services—Tanco believes that learning when to let go is just as important as knowing when to invest.

    Tanco’s business journey began in the textile industry, following his family’s footsteps. “My family was in textiles, so I went into textiles as well,” he explained. But despite sitting on the board and chairing companies, he never got involved in the day-to-day operations. Eventually, he made his own independent investments in the same space—a move he now calls a misstep.

    “I bought into textile… but it was a wrong decision,” Tanco admitted. He realized the Philippines lacked the economic advantages needed to compete in the global textile industry. “We don’t have the petrochemical plants. We have to import polyester, cotton—everything. We don’t have the cost structure to compete.”

    Instead of doubling down on a struggling sector, Tanco made a bold decision: divest.

    “I think it’s easy to invest. I think it’s hard to divest,” he said. Letting go of an enterprise can feel like admitting defeat, but Tanco views it as a strategic move—especially in industries facing long-term headwinds. “Divestment should not be perceived as a weakness. Just as investment is looked at positively, divestment is a business decision.”

    In the early 1990s, Tanco shifted his focus from manufacturing to education and services. “Manufacturing was challenged. There was an electricity problem, a raw materials problem,” he said. “So I thought, I’ll get out… I shifted to service—operation and education.” That pivot led to his involvement with STI, where he later increased his shareholding to address liquidity issues and unify conflicting groups.

    His perspective on business decisions is both practical and emotionally disciplined. “In business, you have to learn to divest. You should not get emotionally attached. Divest when you feel it’s time to let go.”

    Tanco also pointed out a common mistake entrepreneurs make: holding on too long. “A lot of industries just die at the root,” he said. “They don’t let go when they should.” He believes some industries—like textile in the Philippines—simply don’t have the structural advantages needed to scale sustainably. In such cases, divesting isn’t quitting—it’s reallocating your resources more wisely.

    “Just as divestment could be right or wrong, so can investment. Both are business calls.” His candid philosophy underscores the importance of being agile and unemotional—traits that have allowed him to succeed across multiple sectors.

    Today, Tanco continues to lead organizations with long-term impact. His work with STI has helped shape education for tens of thousands of students, while his leadership at Digiplus Interactive reflects his continued commitment to innovation.

    His advice to entrepreneurs: Treat divestment as a tool, not a taboo. In his words, “Divestment has always been part of doing business. Maybe your banker is calling, maybe you need the capital—but if it’s time to move, you move.”

    At a time when hustle culture glorifies holding on at all costs, Tanco’s voice is a powerful reminder that sometimes, the smartest move is to let go. Not with regret—but with clarity, courage, and strategic foresight.

    Some quotes in this article are from an interview originally conducted for Esquire by Henry Ong and may not have been previously published.

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