Whether they may be Muslims or Christians, micro entrepreneurs remain vital cogs in the economy because they contribute to economic inclusivity.
To ensure micro entrepreneurs are successful in running their micro enterprises, they must be provided all the support available so they can sustain their operations.
As micro entrepreneurs, Zaman Batara, 51, a resident of Mabasa Malulang, Cotabato, and Sohra Piti-ilan, 51, of Cagayan de Oro have always cited the importance of availability of capital to continue and expand their respective businesses.
Batara and Piti-ilan admitted it has always been a challenge to access capital for micro entrepreneurs like them because a lot of organizations are not serious on serving them.
The two ladies are engaged in selling cellphone accessories and assorted goods since 2004 and 2014, respectively.
In fact, Batara felt frustrated one time because her past microfinance organization did not deliver the services that they had promised.
One day, a friend told Batara she should try ASA Philippines for a change. The shift to ASA was beneficial to both her and Piti-ilan because it gave them the necessary push to expand their businesses.
Before joining ASA, Batara was enrolled in another microfinance organization. ā[But] we become strongly attached to ASA Philippines because it is a proactive organization,ā Batara said.
To ensure the business is on the right track, ASAās microfinance officers regularly conducts visits to evaluate the performance of their enterprise. Furthermore, Batara and Piti-ilan said ASA also extends financial assistance to members who were affected by natural calamities, death, accidents, etc.
Batara secured a first-time loan of P4,000 to finance her budding business. She raised the bar when she was granted a loan of P20,000 for her second cycle. As her business grew, she got P70,000 for her third cycle. For the fifth cycle, she got P90,000.
Before joining ASA Philippines, Batara and Piti-ilan were members of ASA Philippinesās counterparts in Cagayan de Oro.
Aside from helping them grow their businesses, Batara and Piti-ilan said ASA Philippines also help members when they experience accidents, such as fire and typhoon.
āMembers donāt need to go to ASA Philippines to get their assistance. We will go to their place and check out the real situation,ā said Norfarisah Abolais, Islamic financing implementing officer.
Lenie Delguera, regional administrator of region 34 of ASA Philippines, said the organization has developed programs to suit the needs of its members,
For Piti-ilan, she got P6,000 for her first cycle, As her business gradually grew, ASA granted her P10,000 in the second cycle. āI reached P40,000 on my latest cycle to replenish my merchandise,ā she said.
Delguera said members are also encouraged to save a portion of their income so that they can use in the future for emergencies. āMembers treat ASA as their savings banks,ā she said.
Moreover, she said members could also get rebates from their savings under the Islamic financing concept of Ibraa.
The two said the entry of ASA enabled them to engage in micro entrepreneurship through the Islamic financing without the need to seek assistance of the loan sharks.
ASA also provides assistance for education, house renovation, toilet construction and solar energy equipment installation.
The two hardworking ladies said they want to pay their loans on a shorter span so they can acquire more loans to expand the business. Batara has a stall in Commonwealth Market in Quezon City selling ready-to-wear items while Piti-ilan has four stalls in Cagayan de Oro. āI plan to buy long dresses in Jakarta and sell it here in Cagayan de Oro for the Muslim ladies,ā Batara said.
Both Batara and Piti-ilan agreed a bigger inventory is always an asset for the business because buyers believe businesses are experiencing the good times.
If the clients are experiencing hard times, Delguera said, ASA Philippines allows them to borrow money from their savings.
Piti-ilan and Batara said the entry of ASA Philippines in Cagayan de Oro has helped them a lot in growing their business and helping them in their financial problems. āFor instance, I need to repair the roof of my home, I can go to ASA Philippines for financial assistance,ā said Batara.
Aside from financing, ASA Philippines offers subsidized financing, such as Murabaha (cost- plus), Ijarah (lease to own agreement) in water and sanitation, home, solar home system and Qard Hassan (benevolent loan).
Islamic financing is a banking or financing activity that complies with Shariāah (Islamic law) and its practical applications through the development of Islamic economics. The principles of Islamic financing originated from the Holy Quran and the Sunnah, the sayings, deeds and endorsements of the Prophet Muhammad.
As of December 2018, ASA Philippines has 1,150 branches all over the Philippines. Further, the microfinance organization has 117 extension units and 284 satellite units.
In terms of geographical coverage, Luzon has the biggest with 52 percent, with Visayas and Mindanao tied at 24 percent.
It is present in 25,618 barangays, 1280 municipalities, 145 cities and 82 provinces.