MANILA, Philippines - The Philippines is at the forefront of promoting small businesses and their benefits in boosting growth and making it inclusive, officials said, as an institution marks a decade of recognizing the economic heroism of Filipino microentrepreneurs.
Microentrepreneurs — or businessmen owning firms with assets between P300,000 and P3 million — were again feted at the Citi Microentrepreneur of the Year Awards held last week at the Hyatt Hotel in Manila. Six women were hailed not only for their entrepreneurial skills but also for their community leadership.
“Microfinance and microenterprise play an important role in the development of any economy and society,” said Sanjiv Vohra, Citi country officer for the Philippines, in a speech during the event. “Almost 40 years ago, micro and small sized businesses did not have any formal access to capital. Back then, small, struggling Filipino microentrepreneurs would either have to pawn their valuables for capital or secure financing through unsecured loans paying usurious interest rates,” he related.
Vohra acknowledged the pioneering organizations in the private sector, government agencies, and the Bangko Sentral ng Pilipinas (BSP) for their commitment which led to the growth of microfinance in the 1990s. Today, he estimates that over 200 banks, 14,000 cooperatives, and 25 non-profits are providing microfinance services to over 5 million active borrowers.
BSP, Citi’s partner in the event, highlighted in turn the country’s positive microfinance regulatory environment, which for the fourth year in a row was top ranked by the Economist Intelligence Unit (EIU), the business information arm of The Economist Group, publisher of The Economist magazine.
“We are all here to create an enabling environment for financial inclusion to be a reality. We will promote continuous innovation and use of technology which have the potential of reaching more unserved markets at lower cost and higher efficiencies,” BSP Governor Amando Tetangco, Jr. said in his speech.
Financial inclusion or the situation when the public has enough access to credit for consumption and investment activities can be achieved by underscoring the positive benefits of microentrepreneurship.
Citi awards
“This year’s winners certainly serve as good examples for others,” said Brandee Mchale, chief operating officer of the Citi Foundation. The institution has funded the CMA for the last decade, in partnership with BSP and the Microfinance Council of the Philippines, the largest network of microfinance institutions (MFIs) in the country.
For this year’s search, more than 100 nominations were submitted by 28 MFIs. This was later cut to 18 semi-finalists, from which the six winners were selected. Of the six, one is a national winner, three represent the island groups of Luzon, Visayas and Mindanao, and two were given special prizes.
Floraiwin Cainglet, a hog raiser from Iloilo, was this year’s big winner after being able to grow her business from just having two piglets in 2004 to one that is now a major source of income for her family.
The selection committee is co-chaired by Tetangco and Vohra, and composed of industry and community leaders including former Monetary Board member Antonino Alindogan, Jr., Ayala Corporation President and COO Fernando Zobel de Ayala, RFM Corporation President and CEO Jose Concepcion III, GMA Network Chairman Atty. Felipe Gozon, Robinsons Retail Group President and COO Robina Gokongwei-Pe, Philippine Daily Inquirer chairperson Marixi Prieto, and Ateneo de Manila University Professor Dr. Darwin Yu.
Mchale was impressed by Cainglet’s engineering improvements that include the acquisition of machines such as multi-power water pump, automatic feeder for swine and sow-piglet separator. “These innovations significantly reduced their operating costs and increased productivity,” she noted.
Meanwhile, Milagros Hiyas, who began with a small rattan business with her husband 20 years ago in Laguna, was cited as the Luzon winner as annual sales of P4.8 million also translated to jobs for 16 people.
“This is essentially the best thing about microentrepreneurs. These businesses do not only make their lives better, but also that of others by providing employment and a living,” Mchale said.
The Visayan laureate, on the other hand, helps the government in promoting Malapascua island in Cebu as a tourist location. Abella de Dios’ passenger boat rental business immediately expanded to cover pump boats and even restaurants, which combined now earn her and her family P4.5 million annually. The business now employs five regular workers, and hire 10 more during peak season.
Mindanaoan Rabia Mangumpig completes the roster of winners with her dress shop that weave not only bridal dresses, but also pillow cases and bed covers for Muslim weddings. Her client base, according to Citi, is fast expanding.
Meanwhile, Marilyn Fajardo and Lenieflor Ico were both cited for their respective social innovations which propelled their pedicab and candy businesses respectively to sustainability.
Alumni network
The affair also served as venue to launch the CMA Alumni Network, as BSP, Citi and MCPI work hand in hand to further support and strengthen the businesses of the men and women they have awarded over the last 10 years. In announcing the CMA Alumni Network, MCPI Chairperson Mila Mercado-Bunker said: “With the launch of the CMA Alumni Network, the winners receive an intangible prize – that feeling of belonging to the circle of the most outstanding microentrepreneurs in the country. The Alumni Network will link and bring back the winners together to interact, learn from, and share with fellow role models the knowledge and experiences in the pursuit of continuously improving their businesses.”
Some of the newly-inducted members to the CMA Alumni Network featured in a commemorative book entitled “Small Steps to Success”. This publication was intended to celebrate the 10 years of CMA, and feature 10 inspiring stories of economic heroism.
“As we celebrate our first decade, we hope that this program will continue to highlight the success stories of poor Filipinos who through microfinance were able to rise above poverty relying on hard work, perseverance, and innovation. Microentrepreneurs are the new hope of this generation and the force that will take this nation to new heights. Citi remains steadfast in its support of the CMA, and we consider our investment in this program as one way in which we can contribute to the development of the Philippine economy,” said Vohra.
There is perhaps no greater proof of CMA’s triumph than its winners, who are proud of what they have accomplished and who they have become today. The program has bolstered their self-worth and empowered them to help members of their communities and pay it forward.