Microfinance

BIDA KA!: Kapital sa pagnenegosyo 2

Ito ang nagtulak sa akin para maghain ng panukalang batas na magbibigay ng tulong sa ating Microfinance NGOs.

Noong nakaraang linggo, nagtalumpati ako sa Senado kasabay ng pagpasa ng mga panukala para sa Microfinance NGOs Act.

Sa aking talumpati, binigyang diin ko ang mahalagang papel ng mga microfinance NGOs sa pagpapalago ng micro, small at medium enterprises (MSMEs) sa pagpapalakas ng ekonomiya.

***

Maliban dito, nagbigay rin ako ng dalawang kuwento ng tagumpay sa tulong ng MFI NGOs.

Mga Bida, isa sa mga natulungan na ng microfinance NGOs ay sina Aling Ester Lumbo at asawang si Mang Bartolome, na tubong-Negros Occidental. Sila ang unang nagbenta ng mga hinabing pandan bags sa merkado.

Nang sumailalim sa operasyon ang ikatlong anak sa Maynila, napilitan silang iwan ang kanilang negosyo upang tiyaking bumuti ang kalagayan ng kanilang anak.
Pagbalik nila sa kanilang bayan, naubos ang kanilang pangkabuhayan at nabaon sila sa utang.

Buti na lang at natagpuan nila ang Negros Women for Tomorrow Foundation (NWTF), isang microfinance NGO, na siyang tumulong sa kanila na makabalik sa kanilang pagnenegosyo.

Ngayon, nakabebenta sila ng 150,000 pirasong gawa sa pandan kada-buwan. Nakapagpatayo na rin sila ng isa pang bakery. Higit sa lahat, nasustentuhan nila ang kanilang pamilya at nakapagtapos ang ang kanilang tatlong anak sa kolehiyo.

***

Natulungan din ng microfinance NGO na Alalay sa Kaunlaran, Inc. (ASKI) si Consuelo Valenzuela na mapalago ang kanyang iba’t ibang negosyo.
Maliban sa pautang, tinuruan pa ng ASKI, isang microfinance NGO, na nagturo sa kanya ng marketing at sales.

Dinala ni Aling Consuelo ang kanyang mga produkto sa mga provincial at regional trade fairs. Para kumita, binenta niya nang wholesale ang kanyang mga produkto sa labas ng kanilang probinsya.

Sa ganda ng kanyang mga ibinebenta, umabot pa sa California ang kanyang mga produkto. Dahil dito, napag-aaral niya ang mga pamangkin at nasusustentuhan ang pangangailangan ng kanyang pamilya.

***

Ngayon, panahon naman para tulungan natin ang microfinance NGOs upang mapalawak pa nila ang serbisyong ibinibigay sa ating mga kababayan.

Sa ganitong paraan, mas marami pa tayong mababasa na kuwento ng tagumpay, tulad nina Aling Ester at Consuelo!

 

First Published on Abante Online

RA 10693: Microfinance NGOS Act

Microfinance NGOs shall conduct its 19 operations in accordance with the basic principles of micro finance, which include, but are not 20 limited to the following:

a. The State recognizes Microfinance NGOs as its effective partners in promoting social welfare and development and pursuing poverty alleviation and holistic transformation and acknowledges micro finance as a viable solution to empower the poor;

b. The poor shall be given access to appropriate financial services that are convenient, flexible, and reasonably priced, including, but not limited to credit, savings, and insurance;

c. Microtinance shall be undertaken on a sustainable basis, where providers shall be able to recover all of its costs to allow sustainable operation and regular provision of financial services to the poor;

d. Microfinance NGOs shall aim to provide both financial and social protection programs to an increasing number of disadvantaged and for underprivileged people;

e. Microfinance NGOs shall abide by the Client Protection Principles, such as, but not limited to, appropriate product design and delivery, prevention of over-indebtedness, promotion of transparency, practice of responsible pricing, fair and respectful treatment of clients, privacy of client data and mechanisms for complaint resolution;

f. Microfinance NGOs shall develop financial, social, and governance performance standards that shall help define and govern the industry toward greater outreach and sustainability. 109. Mierofinance NGOs shall develop and provide the appropriate community development II projects and programs to ensure attainment of social welfare and holistic transformation 12 of the poor.

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7 Tips Para Makakuha ng Kapital Para Sa Pinapangarap Na Negosyo

listahan

By ListAvengers

 

Marami sa ating mga Pilipino ang may pangarap na makapagnegosyo. Kaya lang, mahirap ding makakuha ng kapital para makapag-umpisa.  Narito ang ilang tips para makahanap ng puhunan. Negosyo, now na!

1. Mangutang. Lapitan ang inyong mga BFF, kapalan ang mukha at mag promise na babayaran mo siya with interest. Siguraduhin lang na magbayad nang tama sa oras para hindi ma-FO (Friendship Over).

Pwede ring lumapit kina Mama at Papa. Magdrama at magparinig na nais mong magtayo ng negosyong swak na swak pero kulang ang pera sabay buntong-hininga. Siguraduhing naririnig ka nila habang nag momonologue at magbayad para makaulit.  Huwag lang masyadong atat na kunin ang mana.

keepcalm

 

2. Makipagpartner. Para hindi lang ikaw ang papasan ng problema, humanap ng karamay sa negosyo. Kung may mga kamag-anak o malapit na kaibigan na OFW, i-message at i-impress sila sa iyong business proposal. Gumawa ng powerpoint presentation, kumanta, o umiyak para ma-eengganyo silang mag-invest at makipagpartner sa iyo!

OFW

 

 

3. Mag-ipon. Gutumin ang sarili. Kung apat na beses kumakain sa isang araw, gawin na lang dalawa para may maipon. Mag 3 in 1 na kape na lang imbis na frappucino.  Mag-order ng 1 rice imbis na 2.  Maglakad mula Taft hanggang Santolan imbis na mag-MRT. Nakaipon ka na, nakapag-diet ka pa. Kung hindi mo naman kaya, ibenta ang mga gamit na hindi mo na napapakinabangan. Nagkapera ka na, nabawasan pa ang kalat sa iyong kwarto. Huwag mo lang ibenta ang atay mo.

savings

 

 

4. Makipagsapalaran sa mga pacontest ng barangay. Tamang-tama, Mayo ngayon at patok ang mga amateur singing contests, dance contests at mga pa-liga sa barangay. Kung hindi palarin sa sariling lugar, dumayo sa ibang barangay para more chances of winning. Kung may beauty ka namang pang rampa, pwede ring patulan ang mga Santacruzan at beauty contests, siguraduhin lang na mas malaki ang premyong matatanggap kaysa sa pinambayad sa gown na isusuot.

amateursingingcontest

 

 

5.Tumaya sa Lotto. Libre ang mangarap kaya tumaya nang tumaya sa lotto. Malay mo suwertehin ka at lumabas ang numerong inaalagaan mo. Yun nga lang, 1 in 30 million ang chances of winning sa lotto, mas mahirap pa sa chance mong magaka-boyfriend or girlfriend, kaya kailangan ng matinding pasensya at dasal.

lotto

 

 

6. Mag-Loan.  Kung may pang kolateral, maaaring umutang sa bangko. Gawing kolateral ang anumang ari-arian, huwag lang ang ari-arian ng ibang tao, baka ma-asunto.

landbankloan

 

 

7. Lumapit sa isang Microfinance Institution. Kung wala ka namang pang kolateral, tamang-tama ang mga microfinance institutions dahil mas mababa ang kanilang interes kaysa sa 5-6. Bisitahin ang www.microfinancecouncil.org, mag-e-mail sa mcpi.ph@gmail.com o tumawag sa (02) 6316184 upang malaman ang pinakamalapit na MCPI sa lugar ninyo. Mahirap nang maligaw kaya maniguro.

Kasagana Microfinance

 

 

Kung mayroon kayong naiisip na lis7ahan at nais maging miyembro ng Listavengers, mag-e-mail sa team.bamaquino@senado.ph!

 

 

 

Sponsorship Speech of Sen. Bam on Microfinance NGOs Act

An Act Strengthening Non-Government Organizations
Engaged in Microfinance Activities for the Poor otherwise known as  
the Microfinance NGOs Act

 Senator Paolo Benigno “Bam” Aquino IV

16th Congress, Senate of the Philippines

Sponsorship Speech, 6 May 2015

Good afternoon, Mr. President, my distinguished colleagues, mga kaibigan, mga kababayan.

It is with great privilege that I address you today to support the development and inclusive growth of the poor and marginalized as I sponsor Senate Bill No.    , under Committee Report No.  , entitled An Act Strengthening Non-Government Organizations Engaged in Microfinance Activities, or otherwise known as the Microfinance NGOs Act.

The Philippine economy has grown immensely in the past years. We saw that in the last quarter of 2014, our economy grew at 6.9%, contributing to our annual gross domestic product growth rate at 6.1%[1].  This figure is still one of the highest growth rates in the region.

We are cited as the second fastest growing economy in Asia[2], second only to China. We are the fastest growing economy in the ASEAN. And we expect to sustain this momentum in the next few years.

Moreover, we have been earning improved investment grade ratings from Moody’s, Fitch, and Standard & Poor. 

When a decade ago, we were called the “Sick Man of Asia,” now we are among Asia’s “Rising Stars”.[3]

Ngunit sa gitna ng pag-unlad ng ating bansa, marami pa rin sa ating mga kababayan ang hindi nakararanas nito at di nakakatikim ng ginhawang dulot nito.

In the latest report of the Philippine Statistics Authority, our poverty incidence for the first quarter of 2014 is 25.8%.  

Ibig sabihin nito, Mr. President, mayroon pa rin tayong 25 milyong kababayan ang maituturing na mahirap[4].

Habang tuluy-tuloy ang pag-angat ng Pilipinas, ang hamon sa ating lahat ay siguraduhing nakikinabang ang lahat ng sektor ng bayan.

Hand in hand with civil society and the private sector, we need to support and strengthen programs and efforts, private organizations and institutions that aid the poor in their journey to prosperity.

Apart from helping the poor directly through government programs, we also have the opportunity to bolster an entire sector willing to take part in advancing inclusive growth.

The Microfinance NGO Act aims to recognize the microfinance NGO sector, and the crucial role it plays in our struggle to alleviate our fellow Filipinos from poverty and enable the poor to build their own businesses and create their own sustainable livelihood.

Mr. President, time and time again, we have emphasized the important role of the micro, small, and medium enterprises or MSMEs, in our nation’s endeavor to foster inclusive growth.  MSMEs compose 99.6% of total establishments in the Philippines and they have contributed 61.2% of the country’s total employment[5].

Out of this substantial piece of the pie, 91.6% are micro-enterprises[6]. These micro businesses are composed of sari-sari stores, handicraft makers, service shops, and other modest businesses that serve as the main source of livelihood for many Filipinos.

Micro entrepreneurs also include local artisans, market vendors, and farmer entrepreneurs who transform local materials with products and services at greater value for their communities.

Ang maliliit na negosyong ito ay maaaring lumawak at maglaan ng mas mabuting kinabukasan para sa mga pamilyang Pilipino, basta’t bigyan lamang natin sila ng tamang suporta.

 

Stories of Grit

Mr. President, bilang dating social entrepreneur at ngayon ay Chairman ng Senate Committee on Trade, Commerce, and Entrepreneurship, marami-rami na tayong narinig na kuwento ng ating mga kababayang nais magnegosyo.

Sa ating patuloy na pakikinig at pakikipag-usap sa kanila, ang paulit-ulit na tanong sa atin ay, “Senator Bam, saan po kami makakahanap ng kapital para makapagpatayo ng maliit na tindahan?  Saan po puwedeng humiram na mababa lamang ang interes para mapalago ko ang aking negosyo?”

Napakahalaga na mabigyan natin ng suporta ang ating mga negosyante, lalo na sa kapital, para mapalago nila ang kanilang mga negosyo at ang kanilang estado sa buhay.

Mr. President, nais kong ibahagi sa inyo ang dalawang kuwento ng ating mga kababayan na dahil sa tulong ng mga microfinance NGOs, ang kanilang mga pangkabuhayan ay lumago at umasenso.

Aling Ester and Pandan Bags[7]

Lumaki sa paghahabi ng mga banig na pandan sina Aling Ester Lumbo at ang kanyang asawa na si Mang Bartolome sa Negros Occidental.  Sila ang unang nagbenta ng mga hinabing pandan bags sa merkado.

Ngunit nang kinailangan ng surgery ang kanilang ikatlong anak sa Maynila, napilitan silang iwan ang kanilang negosyo upang tiyaking bumuti ang kalagayan ng kanilang anak.

 Nang pagbalik nila sa kanilang bayan, naubos ang kanilang pangkabuhayan at nabaon sila sa utang.  Buti na lang at natagpuan nila ang Negros Women for Tomorrow Foundation (NWTF), na isang microfinance NGO, na siyang tumulong sa kanilang makabalik sa pagnenegosyo.

Ngayon, sila’y nakakabenta na ng 150,000 na produktong gawa sa Pandan kada-buwan. Nakapagpatayo na rin sila ng bagong bakery. 

 Higit sa lahat, nasustentuhan nila ang kanilang pamilya at nakapagtapos na ng kolehiyo ang kanilang tatlong anak. 

Ate Consuelo and Sabutan Handicrafts[8]

Ang pangalawang kuwento ay tungkol sa pangangailangan ni Consuelo Valenzuela na kumita para sa kanyang pamilya.  Siya ay panlabing-isa sa labinlimang magkakapatid, kung saan ang tatay niya ay isang karpintero at naiwan sa bahay para mag-alaga ng  mga anak ang kanyang nanay sa Baler, Aurora.

Ninais niyang tulungan ang kanyang pamilya nang makatapos siya kaya bukod sa trabaho niya sa munisipyo, nag-isip siya ng iba-ibang mga produkto.  Nakahiram siya ng P5,000 mula sa Alalay sa Kaunlaran, Inc. (ASKI), isang microfinance NGO, na nagturi sa kaniya ng marketing at sales.  

 Dinala nila ang kanyang mga produkto sa mga provincial at regional trade fairs.  Para kumita, binenta niya nang wholesale ang kanyang mga produkto sa labas ng kanilang probinsya.

Sa ganda ng kanyang mga produkto, nakakakuha na siya ng mga order mula sa California sa Estados Unidos.  Napag-aaral na niya ang kanyang mga pamangkin at nasusustentuhan ang pangangailangan ng kanyang pamilya.

There are many more Aling Esters and Ate Consuelos out there – stories of grit, challenges and struggles from poverty to determination and triumphs of growth through small-scale businesses and community livelihood projects.

These would not have been possible without microfinancing and particularly, microfinance NGOs.

Pangarap ng maraming Pilipino ang magpatayo ng maliit na negosyo at maging lunas ito sa kanilang kahirapan.  Ang tulong na handog ng mga microfinance NGO ang nagiging simula ng landas tungo sa kaunlaran.

 

Microfinance and the Access to Loans

Mr. President, microfinance is defined by the Bangko Sentral ng Pilipinas (BSP) as,

(Quote) “…the provision of a broad range of financial services such as – deposits, loans, payment services, money transfers and insurance products – to the poor and low-income households, for their microenterprises and small businesses, to enable them to raise their income levels and improve their living standards[9].” (end quote)

Para sa nakararami nating kababayang may maliit na negosyo, napakahalaga ng tulong ng microfinance imbis na lumapit sila sa mga nag-fifive-six.  

Sa sistemang 5-6, sa bawat limang pisong inutang mo, ang kailangang ibalik ay anim na piso bawa’t araw.  In other words, you pay an additional 1 peso per day for every 5 peso loan, which is a monthly rate of 600%!

 Mr. President, this is where microfinance can fill in the gap and address the needs of our small businesses, specifically, our micro entrepreneurs.

Microfinance Institutions and Microfinance NGOs

Mr. President, there is also a need to distinguish microfinance NGOs from other microfinance institutions. In the Philippines, microfinancing services are provided by cooperatives, rural and thrift banks, and non-government organizations or NGOs.

It is important to note that the Microfinance NGO Act covers only microfinance non-government organizations, and does not cover for-profit microfinance institutions.

Microfinance NGOs are non-stock, non-profit entities that share in the State’s goal of inclusive growth and sustainable poverty alleviation. As not-for-profit institutions, the main purpose of a microfinance NGO is to empower the marginalized sector and give them the means to move themselves out of poverty and into financial sustainability.

Microfinance NGOs offer a variety of loans to low-income households with an average nominal interest rate of 2 to 2.5% and a usual loan cycle of 6 months[10].

Loans offered are not limited to business or livelihood loans. Types of loans can range from housing and educational to medical and even energy related [11] .

In 2013, the 23 microfinance NGO members of the Microfinance Council of the Philippines, Inc. (MCPI) alone had a gross loan portfolio of over 15.26 billion pesos. This catered to more than 2.7 million micro-entrepreneurs[12].

But their services go beyond microfinancing.

The earnings of these Microfinance NGOs are either 1.) used for the sustainability of the organization, 2.) reinvested to expand the services for more to benefit from the loans, or 3.) used to fund other programs towards uplifting the poor, such as research, financial literacy training, capacity building trainings, marketing activities, or other micro-business development services.

Mr. President, more than just reasonable financing programs, microfinance NGOs also provide training programs and seminars to enhance the entrepreneurial skills and financial literacy of their borrowers [13] .

With our push for the passage of the Microfinance NGO Act today, we will recognize these institutions, which help deliver government services to the poor.

Microfinance NGOs as Partners in Development

The Department of Social Welfare and Development (DSWD) has forged partnerships with microfinance NGOs Alalay Sa Kaunlaran Incorporated (ASKI), the Center for Community Transformation (CCT), and the Ramon Aboitiz Foundation Microfinance (RAFI Microfinance) through its Sustainable Livelihood Program to enhance the Pantawid Pamilyang Pilipino Program.

Kinikilala rin ng Department of Agrarian Reform (DAR) ang kahalagahan ng mga microfinance NGOs.  Kasama ng DAR ang Center for Agriculture and Rural Development, Inc. (CARD) upang isagawa ang kanilang microfinancing strategy para makatulong sa mga agrarian reform beneficiaries.[14]

Nagsanib-puwersa rin ang Technical Education and Skills Development Authority (TESDA), Coca-Cola Philippines, mga local government units (LGUs), ang ASKI, at Negros Women for Tomorrow Foundation (NWTF) sa programang, “Sari-Sari Store Training and Access to Resources (STAR) Program.” [15]

The Link to Negosyo Centers

Since we passed the Go Negosyo Law and began building our Negosyo Centers around the country, we have found that the public are most excited about the center’s ability to connect and refer entrepreneurs to legitimate financial institutions willing and able to cater to their needs.

 Microfinance NGOs can work hand in hand with the Negosyo Centers around the country to expand their reach and help even more Filipinos improve their standard of living through improved access to loans, business networks, and effective training programs.

The Microfinance NGO Act will help microfinance NGOs become more effective sources of support for the poor and it will encourage more institutions to help in the promotion of the development of micro businesses all over the country.

In the end, the goal of this measure is to ensure more Filipinos will be able to write their own stories of success and development.

Mr. President, esteemed colleagues, I urge you to join us in our continued push to empower our Filipino people with the skills and financial means to lift themselves out of poverty and achieve their own financial security.

Let us support the microfinance NGOs that help make our dream – of prosperity for all – a reality.

Maraming salamat po, at magandang hapon sa ating lahat!


[1] Vera, Ben. 29 January 2015. Philippine Daily Inquirer. “PH GDP Grew 6.1% in 2014, 6.9% in 4th Quarter.” Accessed via http://business.inquirer.net/185733/ph-gdp-grew-6-1-in-2014-6-9-in-4th-quarter last 15 February 2015.

[2] Dancel, Raul. 29 January 2015. The Associated Press. “The Philippines is Asia’s Second Fastest-Growing Economy in 2014 after China.” Accessed via <http://www.thejakartapost.com/news/2015/01/29/the-philippines-asias-second-fastest-growing-economy-2014-after-china.html> last 12 February 2015.

[3] Torres, T. 27 November 2013. The Philippine Star. “Phl Lone Asian Country in S&P List of Rising Stars.” Accessed via http://www.philstar.com/business/2013/11/27/1261217/phl-lone-asian-country-sp-list-rising-stars last on 16 December 2013.

[4] Philippine Statistics Authority (PSA). March 6, 2015. “Poverty incidence among Filipinos registered at 25.8%, as of first semester of 2014 – PSA”. Last accessed May 4, 2015. <http://www.nscb.gov.ph/pressreleases/2015/PSA-20150306-SS2-01_poverty.asp>

[5] MSMED Council. Micro, Small and Medium Development Plan 2011-2016. http://www.dti.gov.ph/dti/index.php/msme/smed-plan

[6] MSMED Council. Micro, Small and Medium Development Plan 2011-2016. http://www.dti.gov.ph/dti/index.php/msme/smed-plan

[7] Microfinance Council of the Philippines, Inc. Small Steps to Success: Citi Micro entrepreneur of the Year Awards. Accessed last 13 February 2015.

[8] Ibid.

[9] Bangko Sentral ng Pilipinas. “Microfinance.” Accessed via http://www.bsp.gov.ph/downloads/regulations/attachments/2001/circ272.pdflast 14 February 2015.

[10] Information from the Microfinance Council of the Philippines, Inc. (MCPI)

[11] Microfinance Council of the Philippines, Inc.

[12] Ibid. 

[13] Ibid.

[14] Anjanette Nemiaga. March 25, 2013. “DAR-CARD, Inc. launches microfinance operations”. Last accessed on 2.25.2015 (http://piazampen.blogspot.com/2013/03/dar-card-inc-launches-microfinance.html)

[15] Coca-Cola Journey Staff. “Coca-Cola Philippines Kickstarts Christmas Celebration with Gathering of Women Entrepreneurs”. <http://www.coca-colacompany.com/stories/5by20/coca-cola-philippines-kickstarts-christmas-celebration-with-gathering-of-women-micro-entrepreneurs>

Senate Bill No. 1832: Microfinance Code of the Philippines

In all parts of the country, microenterprises comprise the bulk of business enterprises in the country. The Department of Trade and Industry (DTI) estimates that, as of 2011, at least 99.6% of all businesses in the Philippines were classified as micro, small, and medium enterprises (MSMEs), while the remaining 0.4% were large enterprises. Of the total number of MSMEs, at least 91.0% were micro enterprises, with asset sizes not greater than Three Million Pesos (P3 million) and with up to 10 employees.

At their very core, micro enterprises enable poor families to undertake entrepreneurial activities to meet their minimum basic needs, including income generation. However, one major barrier for micro entrepreneurs is their lack of access to credit or capital. One way for them to access such funding is through micro finance.

“Microfinance”, as defined in this bill, “refers to the viable and sustainable provision of a broad range of financial services to poor/unbanked/financially underserved/low-income households engaged in livelihood and microenterprise activities. It uses nontraditional and innovative methodologies and approaches such as, but not limited to, the extension of small loans, simplified loan application procedures, group character loans, collateral-free arrangements, cash flow based lending, alternative loan repayments, minimum requirements for CBU/minimum balance retention, and small denominated savers’ instruments-aimed to improve their asset base and expand their access to capital and savings.”

However, the microfinance sector has yet to be acknowledged by government as an integral partner in poverty alleviation. Moreover, the unique structure and purpose of microfinance institutions (MFls) have yet to be recognized as different from those of purely commercial enterprises.

Therefore, we are proposing the Microfinance Code of the Philippines to develop the microfinance sector in the country. This measure seeks to define the rights and responsibilities, institute performance management and standards, and provide an accreditation process for MFls. It also seeks to provide an enabling policy environment for MFls through appropriate incentives and support. Finally, this measure will promote a social reform strategy that will empower the poor, aid them in managing financial risks, and, in doing so, expand access to micro finance services, such as: microcredit, microsavings, health care, and others. This Act also opens up access to a broad range of financial, business, and other human development services. The ultimate goal of the Microfinance Code of the Philippines is to lift people out of poverty and enable them to live more productive, self-sufficient lives.

In view of the foregoing, the approval of this bill is earnestly sought.

 

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“Bayanihan Economy” Key to Achieving Inclusive Growth — Sen. Bam Aquino

Speaking at the Corporate Social Responsibility (CSR) Expo of the League of Corporate Foundations (LCF) on July 5, Sen. Bam Aquino talked about how a “bayanihan economy” can help the Philippines achieve inclusive growth.

The term “bayanihan economy”, coined by former NEDA Director Dr. Cielito Habito, speaks of an economy where “all players work together toward a shared goal of uplifting the lives of all.”

According to Aquino, who was pointing to a classic visual depiction of rural folk lifting a nipa hut as a display of bayanihan, “You don’t know anymore if the guys lifting the house are the owners, their neighbors, or are passersby who offered to help. In bayanihan, everyone has a role to play.”

A former social entrepreneur who has won local and international awards for his micro-enterprise program Hapinoy, Aquino identified possible interventions that can help the Philippines move closer toward a “bayanihan economy.” These are:

1. Micro-finance. According to Aquino, there are currently around 4.5 million micro-finance borrowers in the country. “But the current capacity of microfinance institutions can accommodate another six million borrowers, which means that through micro-finance we can have six million more potential micro-entrepreneurs who can lift their families out of poverty.”

2. Social enterprise development. “Social enterprises are the missing middle, connecting large corporations and small communities,” Aquino said. Citing his experience in developing the Hapinoy program, Aquino said that the willingness to help of large companies is there but the capacity to reach the community is sometimes unavailable. He also added, “The role of social enterprise is to make sure that these communities and companies get to talk and work together.”

3. MSME development. Aquino cited the large contribution of micro- and small enterprises (MSMEs) to the Philippine economy, pointing out that 92 percent of all businesses in the Philippines are micro-enterprises that largely belong to the informal sector, while only seven percent belong to the small and medium category. “Sadly, MSME’s don’t get enough support from the government.” One of his priority bills, Aquino said, is to help create a more “enabling environment” for MSMEs “beyond entrepreneurial training.”

“More MSMEs are able to provide more employment than large corporations,” the first-time lawmaker added as another reason for helping boost MSMEs.

4. Youth entrepreneurship. “Youth unemployment is one of the largest problems not only of youth in the Philippines, but also in the entire world,” Aquino pointed out.

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