MSME sector expects another rosy year ahead

CEBU, Philippines - 2013 is expected to be another growth year for the micro, small and medium enterprise (MSME) sector as the industry sustains its role as a major economic driver in Cebu and in the Philippines.

This is according to the president of Filipino Cebuano Business Club, Inc. (FCBCI), Rey Calooy, who also owns RNC Marketing Philippines.

He has projected the MSME sector to grow further by next year due to the increase of remittances from Overseas Filipino Workers, business process outsourcing boom, and other direct foreign investments flowing in.

He added that the Gross Domestic Product growth is also expected to hit 7.4 to 7.6% in the second and third quarters of 2013 due to the election spending and other mega-infrastructure projects to be implemented by the Aquino Administration.

He further noted that the Philippines which has gained favorable to positive outlook by credit rating agency would possibly have another investment upgrade status early next year.

He cited that small-scale businessmen could take advantage of agribusiness especially on natural organic products for health & beauty, spa and wellness industry, and food and beverage business.

Other opportunities, he added, could be found in automobile, financial intermediaries, travel or tourism-related business, small-scale mining, real estate and condotel businesses.

Eyeing a vast of prospective enterprises from various sectors, Calooy noted that the MSME sector will continue to grow and be an economic driver locally and nationally.

He said that the sector is projected to contribute more than 40% to the national economy and expected to account 30% of the country’s total export.

Compared to large companies, he said that MSMEs generated 3.6 million jobs last year compared to the 2.1 million jobs from the former.

Amid the positive outlook for 2013, he pointed out the need for more start-ups and entrepreneurs to boost the economic development of the country.

“Our “big and small-time entrepreneurs” are aging; their companies want to be merged or sold or even close shop. Our survey showed that most of the second and third generations of business owners who are supposed to take over the enterprise want to be employed in multi-national companies as executives. Others went abroad to work in bigger firms. If this happens, unemployment rate will continue to rise in the next few years,” Calooy told The FREEMAN.

FCBCI then proposed that entrepreneurship should be part of the curriculum in the K-12 education system and in the college level.

“Entrepreneurs are breeders of employment.  In the Philippines, only 1% are businessmen while in Japan, they account more than 35%.  In business, there’s no success without succession,” he concluded.