Shift of CCT to fund micro entrepreneurs pushed

Presidential adviser on entrepreneurship Joey Concepcion yesterday proposed the gradual shift of the government’s Conditional Cash Transfer (CCT), an R80-billion annual dole-out program to the poor, for relending to hard working micro and small entrepreneurs.

In a briefing, Concepcion said he is working with the Philippine Chamber of Commerce and Industry to come up with a comprehensive proposal for the shift of the CCT to more meaningful poverty alleviation efforts of the micro small and medium enterprises (MSMEs).

“My advise to government is over time this conditional transfer should be given to hard working entrepreneurs to create livelihoods so there will be prosperity for all,” he said.

He said the shift should be started within the Duterte administration. Concepcion has not yet formally proposed this CCT transfer but said he is working with the Philippine Chamber of Commerce and Industry, who is also of similar opinion that this huge money should be channeled into more productive undertakings.

Even most of the administration’s economic managers are of the same opinion to gradually reduce and shift the CCT, he said.

He, however, said that a comprehensive program for the better use of CCT must be put in place first before the actual transfer is done.

According to Concepcion, the CCT has a budgetary allocation of R80 billion for this year alone. He said the shift can be done gradually to reduce the R80 billion going down R10 billion every year to effect a big reduction over a five or ten year period.

“The R80 billion CCT to the poorest is just a one time expense every year and we do not know if it helps in the poverty alleviation or worsen it,” he said noting that program beneficiaries are just waiting for the release of the check.

“Rather than billions going out in checks, what not channel it to the hardworking entrepreneurs,” he said even as he also doubted the effectivity of the program in alleviating poverty in the country. Some studies showed that poverty in the country has been reduced because of the CCT.

“Perhaps,” he said, “the CCT is helping the poor at the moment but what if you pull it out, what happens. The moment you pull that out do you think that helps the lives of these people, to my mind No.”

“Help must be done to those who help themselves,” he said referring to the entrepreneurs. If the government will relend the CCT to the MSMEs, which account for 99.6 percent entrepreneurs of the Philippines total businesses, there will be more economic activities and jobs creation.

He cited the P3 (Pondo sa Pagbabago at Pag-asenso) program of the Department of Trade and Industry that grants collateral free-financing to micro entrepreneurs, but he wants a more comprehensive program.

He proposed for a focus on the fund to the agriculture sector where most of micro entrepreneurs.

“Agriculture is our game changer but it is a struggle,” he said.

“If we lend R10 million to one entrepreneur who helps himself then that would be huge,” he said. He said there is no target as to how many of the 99.6 percent MSMEs must move up but he cited entrepreneurs even from the provinces who were able to progress.

He noted that banks and oligarchs have started to latch into the mindset of inclusive and prosperity for as they are now starting to help the poor and micro enterprises.