PHILIPPINE Center for Entrepreneurship (PCE) Inc. Founder Jose Maria A. Concepcion III has urged financial institutions including microfinance organizations and rural banks to help the micro, small and medium enterprises (MSMEs) in terms of funding.
The important thing here is our partnership with the government “to really enhance the businesses of our MSMEs and an appeal to our bankers” to really help MSMEs in funding, Concepcion said during a televised interview last Monday.
Concepcion, also the president and CEO of listed firm RFM Corp., also underscored the crucial role that banks and microfinance institutions play in the society as they are tasked to lend money to the micro, small and medium merchants. Without the necessary funding, he added, these merchants will continue to struggle.
Concepcion also noted that big businesses have been helping the MSMEs in terms of mentorship and market. He cited PCE’s initiatives under its advocacy “Go Negosyo,” and its three components—mentorship, money and market—that aims to bring it closer to all micro and small entrepreneurs nationwide.
The businessman added that local government units (LGUs) should also step up in helping MSMEs because their leadership is crucial to the growth of small businesses.
“Iyong mga mayors, mga governors, kung magpa-partner sila sa mga negosyante para at least on the ground—talagang sila ang humarap kasi rin dito sa mga MSMEs—ay tulungan din silang mag-organize at mas madali ang impact ng tulong ng private sector kung ang LGU mayor ay enterprising himself,” Concepcion said. [Those mayors, governors, if they partner with businessmen to at least on the ground—they are really the ones who deal with MSMEs as well—help them organize and the impact of private sector assistance will be easier if the LGU mayor is enterprising himself.]
Two weeks ago, the Foreign Buyers Association of the Philippines (FOBAP) urged government to provide loan financing to MSME exporters to enable them to comply with international trade regulations required by foreign buyers.
This call came after executives of William E. Connor & Associates Ltd. (WE Connor) visited offices of five vendors who cited payment terms as a main challenge in business.
Meanwhile, FOBAP President and Chairman Robert Young said he is banking on the passage of a bill ramping up lending to MSMEs affected by the Covid-19 pandemic.
House Bill (HB) 1, or the proposed Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery or (Guide) Act, seeks to provide funds to the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) to expand their loan programs for MSMEs.
A month ago, Philippine Exporters Confederation Inc. (PhilExport) President Sergio R. Ortiz-Luis Jr. told the BusinessMirror that the government should give interest-free and no-collateral loans to MSMEs.
Ortiz-Luis said the government needs to come up with “out-of-the-box” solutions to rally merchants into contributing to the economic recovery path.
Ortiz-Luis noted that in order for the MSMEs to generate jobs, it has to be spared from the traditional and cumbersome lending process that makes these merchants go through a series of steps and fees.
He emphasized that the government should consider lending for MSMEs as an investment rather than an expense.