Gov’t must help MSMEs with capital

Early into his presidency President Marcos convened the confederation of employers and government agencies, Department of Trade and Industry (DTI) among others, to emphasize his focus on MSMEs as priority and key to business recovery, considering that they contribute to up to 40 percent of GDP and employ an estimated 20 million Filipinos.

Just recently, however, SEC Chairman Emilio Aquino mentioned that 67 percent of MSMEs are still unable to get through the gauntlet of bank requirements for borrowers. Many have given up on banks and resort to source capital from their own pockets or elsewhere, because they have to get back on their feet and restart their business operations.

If we have to wait for business recovery this way, we will not see any breakthrough in solving our unemployment problem.

The SEC Chair even suggested crowdfunding scheme for MSMEs, where the public can help fund their capital needs. It’s unbelievable to think that from the government’s huge 2023 national budget of P5.7 trillion, no amount can be set aside for small loans to MSMEs.

Mr. President, you have to push the button on the accountable people under you and tell them to move fast. For instance, the DTI has an attached subsidiary, Small Business Corporation, purposely created by law to directly provide interest-free small loans on concessionary terms to MSMEs. It is alarming to think that two-thirds of the MSMEs, our crucial economic lifeline, are capitalstarved and what is DTI doing about it?

– MARVEL K. TAN, CPA marvelktan@ yahoo.com