For a developing country like the Philippines, majority of its businesses come from the Micro, Small and Medium Enterprises (MSMEs). As of 2011, the Department of Trade and Industry (DTI) accounts that 99.6% are MSMEs, employing about 62% of the Philippine workforce. With that, the sector is a major stakeholder in the economic development of the people.
Yet, one of the roadblocks for the continued growth of the MSMEs is access to financing. The existing requirements for credit do not consider the nature and stature of these micro and small businesses. Current prerequisites for financing are marginalizing the sector, which provides jobs and livelihood to the majority of Filipinos.
It is high time that a structure of extension of credit for MSMEs be developed to further grow micro and small enterprises all over the country.
Thus, the bill proposes the establishment of the Credit Surety Fund (CSF) mechanism to enhance the credit worthiness of MSMEs, broa~en their access to credit facilities, and sustain the continuous flow of credit in the countryside. This will generate more employment and alleviate poverty through increased investments and economic activities.
The challenge is to grow micro businesses into small enterprises and small enterprises to medium enterprises. If this challenge is addressed, we would better enable the kind of economic growth that not only benefits the few rich, but also the majority of the people, including the poorest Filipino.
In view of the foregoing, the approval of this bill is earnestly sought.
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