P1 billion each allocated for MSMEs programs in 2018 budget

SENATE FINANCE committee chair Loren B. Legarda in a statement on Saturday, Oct. 28, said she has allocated to the 2018 budget P1 billion each for two programs under the Department of Trade and Industry (DTI) that serve to boost micro, small, and medium enterprises (MSMEs).

In a statement, the senator said the respective allocations for the DTI’s financial assistance program, Pondo Para sa Pagbabago (P3), and Shared Services Facilities (SSF) would boost the development of MSMEs and enhance their productivity and competitiveness.

Of the P1 billion for SSF, P200 million will be for state universities and colleges with livelihood initiatives; P100 million will be for Schools of Living Traditions (SLTs); and P50 million for the MSMEs affected by the recently resolved conflict in Marawi.

The statement cited a 2015 survey by the Philippine Statistics Authority (PSA) that 99.5% of the total 900,914 establishments in the country are MSMEs, with the remaining 0.5% or 4,075 constituting large enterprises.

“In the same study, MSMEs were found to have generated a total of 4,784,870 jobs in 2015 compared to the 2,981,819 for the large enterprises — indicating that MSMEs contributed almost 61.6% of the total jobs generated by all types of business establishments that year,” Ms. Legarda’s statement said, adding:

“Compared to larger enterprises, our MSMEs are more susceptible to changes in our economy, which would also affect their capability to employ and expand.”

“Our support to MSMEs should be beyond easing up bureaucracy for them. Our government should provide technical assistance, such as technology transfer knowledge exchange, skills training, and other capacity building activities, that will further advance the proficiency of our MSMEs.”

For her part, Senator Cynthia A. Villar in her statement cited about the same figures affirming the contributions of MSMEs to the economy, including that “50% of the MSMEs are involved in the food and beverage businesses.”

“Thus, we want to teach and guide farmers and farm owners to engage in business to tap the business opportunities. We should also extend support through capacity-building strategies and to make them more competent and competitive in it,” said Ms. Villar, chairperson of the Senate agriculture and food committee. —