A microenterprise built on stone and trust

MANILA, Philippines – There’s nothing wrong with borrowing money when you are in business.”

These words of wisdom were spoken by a young entrepreneur, all of 26 years old, at the 14th Citi Microentrepreneurship Awards ceremony, which was held recently at the Assembly Hall of the Bangko Sentral ng Pilipinas.

Honie Krizia Navor is the Microentrepreneur of the Year awardee for 2016.

The annual awards, which started in 2002 when Citi marked its 100th anniversary in the Philippines, honors “outstanding microeconomic heroes from across the country who escaped poverty to become empowered business owners and community leaders.”

Honie was only 11 years old when her father died, leaving her mother alone to take care of her and her four other siblings. They found shelter in a warehouse, which they called home during those early years. While her mom’s siblings helped them in some ways, their financial problems never really left them.

“It was a difficult time for us while we were studying,” she recalls.

Honie was 18 years old when she embarked on an uncommon enterprise. While her peers were thinking of going into fun ventures such as fashion design and accessories, she started her own small business supplying lapida (tombstones). Why tombstones?  “Kasi hindi nabubulok (Because it does not rot),” is her reply.

She sourced her marble from Romblon, where her mother was originally from. (Her father was an Ilocano migrant.) They now reside in Iloilo.

From an initial capital of only P1,000, Honie’s small business grew. Now she is a wholesaler and retailer of granite, tiles, stones, and marble slates in Iloilo City. She also imports from China and Vietnam, and is looking at Europe as another source of quality materials. She also supplies construction materials, and has started to accept construction and building projects as well. She has 35 regular employees, 33 of whom are male, mostly much older than her. She has only two female employees: herself and her mother. She makes sure that they both also receive a salary. Her business sense is innate.

In the beginning she had to resort to borrowing from the so-called 5-6 informal moneylenders to get her business going. Valiant Bank was the game changer. It gave her the boost she needed to grow her business.

“They were the first bank that lent me money,” Honie shares. “Before, we really had nothing. We could not get a loan because we had no collateral. But they trusted us. We presented our business. They accepted us and approved us.”

The synergy between micro-entrepreneurs and advocates of the microfinance industry, which includes the Bangko Sentral ng Pilipinas, the Microfinance Council of the Philippines and Citi, as well as other banks such as Valiant, demonstrates how “financial inclusion and microfinance can unlock opportunities, and serve as catalysts for the development of microenterprises in various areas,” BSP Governor Amando Tetangco Jr. remarked. “Our efforts to build an inclusive financial system results in better access to financial products and services that empower individuals and enterprises to seize economic opportunities.” The 2016 CMA awardees are among the most diverse set of winners, coming from a wide range of industries: 29 participating microfinance institutions and cooperatives submitted a total of 144 nominations, from among which 24 semifinalists were identified. From this shortlist, 15 finalists were chosen.

The final eight winners represent their region as well as specific categories. Special awardee for Community Leadership is Wilberto Dagame of Wilmar Homemade Candies, a candy manufacturing business in Lipa City. His microfinance partner is Bangko Kabayan, which also supports Special Awardee for Agri Micro-Business, Renato Mercado, an organic farmer and wholesaler of organic fertilizer in Tanauan City.

Special awardee for Green/Sustainable Business is Manuel Iwayan , who collects old rubber tires and recycles them into garbage bins, garden sets, and even artificial reefs. Like in the case of Microentrepreneur of the Year, Honie Krizia Navor, Valiant Bank helps him with additional capital for expansion.

The awardee for a new category, Youth Entrepreneur of the Year, is Kevin Pacatang, producer and distributor of tablea and native coffee, a family business he has chosen to carry on. He works hand in hand with the Paglaum Multi-purpose Cooperative for his capital needs.

The Regional Awardee for Luzon is Richiel Vargas, a producer and distributor of garments for bicycle and motorcycle riders. Her partner microfinance institution is First Macro Bank.

Angelita Dagoc of Ferangeli Guitar Handcrafter is the Regional Awardee for the Visayas. Her microfinance partner, Taytay sa Kauswagan, Inc., provided her financial support to expand her business, which was named after her eldest daughter, who is also now part of the guitar production team.

From Mindanao, the Regional Awardee is Marcelina Occena, producer and retailer of Soup Wonder Herbal Oil. The eight-year-old enterprise in Compostela started with her interest in herbal plants and their medicinal benefits. Marcelina is grateful to People’s Bank of Caraga for their support since she started her business.

In his welcome remarks, Citi Philippines CEO Aftab Ahmed said the awardees “once again substantiated the fact that it takes unwavering perseverance, a lot of hard work and commitment for entrepreneurs to achieve their dreams.”

Governor Tetangco added,” The finalists and winners give us many reasons to celebrate: their courage, their creativity, their tenacity, and their success. You inspire confidence and serve as role models among those who are just starting their own micro ventures.  And from you, we in the microfinance industry learn how we can help sustain your viability and growth.”

Thanks to the significant strides it has made, the Philippines is considered a global leader in microfinance.

Honie has these final words of advice: “When you borrow money from the bank, be sure you can use this for capital or added capital and that you will see it grow. The bank also taught us how to save. Without the bank’s help, I don’t know how we can sustain our business.  I believe God used Valiant Bank to help us. Whatever the Citi Microentrepreneurship Award brings me, I want to be able to use it to grow my business. I want to learn more, and I want to be able to share what I learn with others.”