‘FINANCIAL ACCESS LACK HAMPERS MSME GROWTH’

THE lack of financial access continues to be major growth barrier for the Philippines’ micro, small and medium enterprises on Friday.

Alex Capulong, strategic partnerships manager at financial technology company First Circle, said that while such access was key to growing a business, most entrepreneurs find it hard to borrow from financial institutions.

In a presentation at the 1st MSMEs and Nation- building Conference at the University of the Philippines (UP) in Bonifacio Global City, Taguig City, Capulong of proper documentation.

His paper focused on the status - tutions, and the changes needed and, consequently, higher economic growth.

important that somebody is able to see the health of the business,” Capulong said.

Only a few entrepreneurs use software to track their sales, according to him.

“SMEs may not have [ the] knowledge to properly document business operations, especially institutions to gather information [on] a business, preventing them from gauging risk at” an acceptable level, the expert said.

“Legislation and policy further exacerbates the issue, when large - guard depositors’ money by only providing funds to those that can he added.

To address this problem, Capu how to properly manage and document their businesses.

- tations previously considered as major barriers,” Capulong said.

Financial institutions, on the other hand, must develop products and processes “that are, at minimum, attainable for SMEs without violating any of their risk limits

SMEs must be uplifted through education and business development to attain some viability for the most agressive lenders, Capulong said.

Current data from the Department of Trade and Industry showed that MSMEs account for about 99.5 percent of the country’s establishments.