On August 14 at the launch in Malacañang of “Pilipinas Angat Lahat Alliance,” 30 business organizations pledged “to commit themselves to the mission of pursuing inclusive growth by harnessing public-private partnership endeavors geared toward micro, small and medium enterprises [MSMEs].” This alliance is at the initiative of the Office of the President through Joey Concepcion, Presidential Adviser for Entrepreneurship.
The Magna Carta for MSMEs defines MSMEs (using asset size) as follows: Micro—up to P3,000,000; Small—P3,000,001-P15,000,000; and Medium—P15,000,0000-P100,000,000. Based on 2015 Philippine Statistics Authority data, MSMEs account for 99.5 percent of the total number of establishments in the Philippines, employ 62.8 percent of the total labor force, and their contribution to total value added is 35.7 percent. It is also noted that 60 percent of all exporters are MSMEs.
The majority of MSMEs are in the Wholesale and Retail Industry (46 percent), Accommodation and Food Service Activity (14 percent), Manufacturing (13 percent). The remaining 20 percent are in various activities including agriculture, forestry and fishery, mining and quarying; electricity, gas, steam and air conditioning supply; water supply, sewerage-waste management and remediation, construction, transportation and storage; real estate; professional, scientific and technical activities; administrative and support service activities, education, human health and social work; and arts, entertainment and recreation.
In terms of distribution of MSMEs by region, the National Capital Region (NCR), Calabarzon and Central Luzon are the top 3 areas. Critical challenges to MSMEs are (1) business-enabling environment, (2) access to finance, (3) access to market and (4) productivity and efficiency (Data from microfinancecouncil.org).
Members of the Pilipinas Angat Lahat Alliance have committed to “help champion the 3Ms of MSME development: Mentorship, Money and Market.” A Public-Private Partnership Strategy Framework aimed at Jobs Generation and Poverty Reduction was presented to President Duterte at Malacañang. This framework provides for the following:
Digitalization of Microentrepreneurs, particularly over 1.2 million sari-sari stores, market vendors and other nano-entrepreneurs
“With the recently signed Philippine Identification System Act, as the fundamental requirement in digitalizing a country, National ID will jump-start an environment that will make room for unprecedented efficiencies and value adding. Digitalization will further propel MSME development in the country since more MSMEs nationwide will have access to mentorship by augmenting offline programs with online that can be done massively. In support of the Bangko Sentral ng Pilipinas’ goal of accomplishing 20 percent electronic financial transactions by 2020, traditional financial institutions and fintech innovators focus on digitalizing access to money through credit and payments, thereby improving transparency and efficiency in financial transactions, cash management and saving. Digitalization will also help micro and nano-entrepreneurs extend their reach to consumers through the integration of online marketplaces to offline marketplaces.”
Agribusiness Development (Angat Lahat in Agribusiness)
“Help transform the Philippine agriculture sector by partnering with organizations with initiatives in pushing for competitiveness of Filipino farmers and agri-cooperatives. One such effort is the Angat Lahat in Agribusiness [Alab], an agribusiness incubation program that seeks to contribute to sustainable rural development by providing access to mentorship through the deployment of technical mentors for innovation and comprehensive financial management. It will also provide financial assistance and market linkages by engaging money and market partners for the selected cooperative who will be part of the program.”
Island Tourism
“Two-pronged development in tourism: infrastructure projects in line with the ‘Build, Build, Build’ program and MSME development anchored on 3Ms [Mentorship, Money and Market]. Island Tourism will focus on MSME as the main stakeholders on the tourism industry and other interlinked sectors present in the area such as food and agriculture, fisheries, handicrafts, transportation, health and wellness and other services by increasing their competitiveness and helping them become sustainable. As the Build, Build, Build program is the centerpiece of the government, tourism infrastructure-related projects is expected to generate more jobs and more local businesses in the different areas. With the digitalization of mentorship, access to finance and marketplaces, more micro entrepreneurs, agribusiness and service industries contributing to tourism industry, especially in the rural areas, will benefit from these initiatives.”
Unfortunately, the Alliance’s optimism and bright outlook for the future was lost on the President who was all “gloom and doom” at the Malacañang launch. After reading only the last paragraph of his prepared response, the President announced that he was thinking of stepping down from office as he “could even hardly make a dent” in his war against drugs and corruption. Acknowledging that graft and corruption “seems to be endless and has contaminated all government offices,” the President even encouraged a rumored “junta” to take over the remainder of his term. The President ruled out Constitutional succession, detailing the incumbent vice president’s incompetence and ineptness to succeed—citing that Naga City where she hails from is a “hot bed” for drugs.
It was an afternoon of mixed signals—the business community with its guarded optimism on its 3M Project towards job generation and poverty reduction on the one hand, and on the other, the President throwing in the towel in exasperation and seeming defeat.
My personal message to the President: Don’t give up. This country is worth fighting for!
https://businessmirror.com.ph/mixed-signals-2/
