SMALL AND MEDIUM ENTERPRISES comprise 99.6% of all registeed buinesses in the Philippines and employ 70% of the workforce
- Small Business : 10-99 employees
- Medium Business: 100-199 employees
- Large Business: 200 or more employees
- Micro: 1-9 employees
There are legislation in the Philippines that help and support SMEs. The Magna Carta for Small Enterprises in 1991 try to consolidate government programs to promote and develop SMEs. In addition, there are mandates for lending institutions to provide loan assistance especially set aside for SMEs.
However, due to the innate character of Filipinos dreading risks, people tend to just depend and lean their backs on big companies for employment and monthly salaries. They opt to be employees forever. On the other hand, there are those up for the challenge but needs finance to start. Years ago, private banks used to be reluctant to lend to SMEs but are now showing their support in the endeavors of boosting the economic growth. Another aspect to be considered is the access to technology and skills. Starting a business is not a walk in the park. It requires skills and know-how, or else, you will just see your investments to the drain. Filipinos need to learn the right skills needed to begin. We can not just rely on mere experiences. It is important that we learn the proper way, through books, learning institutions that will equip the future business magnates.
But even if the Filipinos are ready to run through this race of entrepreneurship, the government should back it up with infrastructures and communication system needed by these businessmen. We need roads to transport products to make the supply chain efficient enough to ensure the smooth flow of operations, maximizing the resources will minimizing the expense for logistics.
As a nation, I believe we are getting there. We just need to think positive about it rather than speak ill of the country’s future. Let’s all look forward and be hopeful. Philippines is on it’s way.