Marcos vows support for MSMEs

MANILA, Philippines — Revitalizing micro, small and medium enterprises (MSMEs) is a promise President Marcos intends to keep as he hailed the sector yesterday as the driver of economic growth and employment in the country.

“As your President, I assure you that the revitalization of our MSMEs is among the administration’s top priorities,” Marcos said at the MSME Summit 2022 at the Manila Hotel.

“I reiterate the government’s full commitment to work hand-in-hand with all stakeholders to make certain that MSMEs are protected and provided with ample opportunities, not only to recover from these extraordinary times but to grow and thrive in this modern age,” he said.

The President cited how MSMEs strived to survive amid the challenges brought by the COVID-19 pandemic.

“Businesses were forced to rethink how they could survive this global health crisis and emerge stronger in the aftermath,” he said.

Marcos pointed out that MSMEs, which form part of the backbone of the economy, generate more than half of the country’s employment.

“This is why it is fully recognized that this sector’s critical role in our country’s economic regeneration, job creation and poverty reduction is critical,” he said.

The Chief Executive also praised Go Negosyo, Department of Trade and Industry (DTI) and the US embassy in the Philippines as well as other partners for organizing the summit, which he said served as an appropriate platform to tackle the strategies on how to revitalize MSMEs under the new normal.

US Ambassador MaryKay Carlson, Go Negosyo founder and Private Sector Advisory Council Lead for Jobs Joey Concepcion and Trade Secretary Alfredo Pascual also graced the event.

Marcos said he is delighted that the MSME Summit focused on post-pandemic recovery and the promotion of digitalization, which are aligned with the priorities of his administration.

He backed the MSME Development Council, led by the DTI, as it formulates and implements strategic goals to improve five key business areas – business climate; access to finance; management and labor; access to technology and innovation and access to market.

“This multidimensional approach will allow us to breathe new life into our MSMEs and help them move forward to a more resilient and prosperous future,” Marcos said.

“We will harness the strengths of various sectors to ensure a more cohesive government approach in creating a more sustainable environment for our MSMEs and all our important stakeholders,” he added.

In the middle of his speech, the President told Carlson that MSMEs are one of the sectors he would like the Philippines and the US to work on together.

“Madame, I’m very happy to see you here because this – when we first spoke, this is – and I talked about the partnerships that need to be forged for the future, this is precisely the kind of partnership that I meant. And I hope that we will promote this sort of partnership between our two countries on a bilateral and multilateral basis and I see this very much as the way forward. Thank you very much for being involved in this,” Marcos said.

US support

Carlson, in her message, said rebuilding the MSME sector must be at the forefront of the government’s and private sector’s response to the impact of the pandemic.

She said the US Agency for International Development (USAID) has partnered with American companies and non-profit organizations to assist 10,000 MSMEs in the Philippines during the economic downturn.

USAID also partnered with microfinance institutions in the Philippines to disburse P40 million in micro grants to 3,500 deserving MSMEs, she added.

Carlson encouraged MSMEs to take advantage of the benefits of the digital economy.

“In fact, one of the USAID’s newest projects, Strengthening Private Enterprises for the Digital Economy, will promote greater participation of Philippine MSMEs in the digital economy,” she said.

Marcos is set to visit the US next month, when he is expected to address the United Nations General Assembly.

Kapatid Angat Lahat program

Over 30 industry groups have pledged their commitment to a public-private sector partnership initiative aimed at empowering and growing MSMEs to promote inclusive economic growth.

Organized by the Philippine Center for Entrepreneurship, the non-profit group behind Go Negosyo, the Kapatid Angat Lahat program aims to harness public-private partnerships to help MSME development. Its aim is to build linkages, pool business opportunities and support government policies and programs that help create an enabling and sustainable business environment for MSMEs.

The groups also committed themselves to the development of programs anchored on the 3Ms of mentorship, money and market – to realize for the country and the Filipino people the goal of achieving prosperity for all.

Among the industry groups that signed the Kapatid Angat Lahat Pledge of Commitment were the Philippine Chamber of Commerce and Industry Inc., Federation of Filipino Chinese Chambers of Commerce & Industry Inc., Philippine Retailers Association, Philippine Franchise Association, Federation of Indian Chambers of Commerce, Makati Business Club, Management Association of the Philippines, Bankers Association of the Philippines, People Management Association of the Philippines, Semiconductor and Electronics Industries in the Philippines Foundation Inc., Philippine Association of Meat Processors Inc., Philippine Hotel Owners Association, American Chamber of Commerce of the Philippines, European Chamber of Commerce, British Chamber of Commerce and IT and Business Process Association of the Philippines.

The Kapatid Angat Lahat program is one of the priority programs of Concepcion as lead of the Jobs Group of the PSAC.

The public-private sector partnership initiative aims to promote inclusive economic growth using Go Negosyo’s framework of providing MSMEs access to money, markets and mentoring.

Among the projects under the Kapatid Angat Lahat program is a one-stop-shop platform for MSMEs where they can access business opportunities, information and linkages needed to successfully launch and operate a micro, small or medium-sized business.

The services include guidance on legal business registration and operational requirements, formalizing informal businesses, financial capital support options, micro-loans, more robust market access and business mentorship. In addition, the program will also facilitate how large corporations can help MSMEs scale up their operations.

Concepcion said growing MSMEs will have a great impact as these account for as much as 63 percent of jobs generated in the country.

The Kapatid Angat Lahat program was signed at yesterday’s MSME Summit. –  Catherine Talavera