MSMEs lament struggle against large firms

CEBU, Philippines - Representing a unique kind of people power in the economic sector, micro, small and medium enterprises (MSMEs) express sentiments over the discrimination against large companies and corporations in the country despite their significant contributions to the society.

Former Akbayan Partylist representative Risa Hontiveros commended the valiant efforts of the MSME nation, particularly in Cebu, as the backbone of employment generation in the economy and as the lifeline for unemployment and underemployment.

“We can see how MSMEs have to struggle in the age of globalization, an age where big has to be the virtue of everything? Ang irony kasi ay kahit kayo ang nag-gegenerate ng karamihan ng employment sa bansa, kayo pa ang hirap na hirap maka-access nang bigger credit under softer and more beneficial terms,” she stated.

She added that government agencies should also provide assistance in speeding the process since most of the MSMEs experience terrible burden and loss of time in generating loans.

Citing how Cebuanos have conquered the country in the spread of their language, Hontiveros also said that Cebuano MSMEs conquering not just the imperial Manila but all over the country is not an empty boast but a possible advancement for the province with a dynamic partnership of the government and industry players.

She noted that the important role of MSMEs in the economic development is of high consciousness of President Benigno Aquino III, assuring them greater support from his administration. 

As the inducting officer of the 2012-2013 officers and new members of the Filipino Cebuano Business Club Incorporated, she further said that she and her party will continue to work together with the MSME sector in developing more opportunities for the public good.

Meanwhile, FCBI President Rey Calooy said that MSME, serving as a vehicle of economic growth, should have a fair treatment along with large companies in accessing credit as they struggle with their finances.

Based on the latest count of the National Economic and Development Authority, he cited that among the 783,000 business enterprises in the country, 99.7% of which are composed of MSME. However, large companies can avail 77% of the total loan account, while MSME can only have 23% loan availment, thus giving more sustainability of finances to corporations.

Referring MSME as labor-intensive while large companies as capital-intensive, he added that in the Department of Labor and Employment 2009 report, MSME generated 3.3 million jobs versus 1.6 million jobs by big companies. He further said that in other reports, MSME accounted 25% total export revenue and 60% of total exports in the country.

However, Calooy noted that the MSME sector now foresees a brighter future after Aquino has expressed his support, along with the Republic Act 9501, known as “Magna Carta for Micro,Small and Medium Enterprises” and Republic Act 9178, also referred as “The Barangay Micro Business Enterprises Act of 2002”.

With the aid of the Philippine Stock Exchange, he noted that FCBI is also hopeful on the pending Senate Bill seeking the creation of Small Medium Stock Exchange for cheap, easy pool of finances and benchmark of businesses to be investment-ready.

As the fourth-time chairman of FCBI Board of Directors, Calooy encouraged aspiring entrepreneurs, particularly Overseas Filipino Workers, to go out from their comfort zone and venture into profitable businesses, contributing to more jobs for fellow Filipinos. — Grace Melanie I. Lacamiento

 “More businessmen, more jobs. You may have money for capital but you don’t know how to invest, FCBI is here to guide and help you,” he said.