Elect an ‘Entrepreneur President’, Ang Kasangga urges voters
Ang Kasangga sa Kaunlaran, Inc. (Ang Kasangga) today called on Filipino voters to elect an “Entrepreneur President” who will make micro-entrepreneurship an important part not only of his administration but also of the nation’s economy.
Ang Kasangga Secretary General Norman Gerardo O. Tayag said it is time for the country to have a President who would give the marginalized sector of micro-entrepreneurs the support and importance they deserve.
“Micro-entrepreneurs play a very vital role in the country’s economic and social development. They provide income to a large segment of the population. Without this income, the socio-economic pressures would be near-insurmountable,” Tayag said.
“It is unfortunate, however, that until now, micro-entrepreneurship has not been given full support by the government in terms of developing and protecting the sector which is actually the backbone of our economy,” he added.
Micro-entrepreneurs are those whose enterprises have an individual capital of below three million pesos, such as jeepney and tricycle drivers, food stall and sari-sari store owners, market vendors, and blind masseurs, home workers in the garment industry, small producers of goods like handicraft, furniture, and candies, among others.
According to the Department of Trade and Industry, as of 2006, micro, small and medium enterprises (MSMEs) compose 99.7% of all Philippine business enterprises – with micro enterprises making up 92% of the total MSME number.
In 2006, micro-enterprises generated a total of 1,667,823 jobs (33.5%) of all jobs created by the MSME sector during that year. Recent statistics reveal micro-entrepreneurship to be the primary financial support of about 40% of Filipino households.
“Micro-entrepreneurs usually absorb unemployed members of society – those unable to find employment in the open market. They also provide input to the formal sector ranging from manufacturing parts and supplies, to labor for production,” Tayag said.
Ang Kasangga official also said that the passage into law of the Magna Carta for MSME (Republic Act No. 9501) is a great opportunity to maximize the social and economic benefits that the country would gain in the industry.
However, the effects of the law are yet to be felt, particularly in addressing the challenges that the industry faces, such as, lack of research and development, inadequate access to technology, difficulty in acquiring capital, and lack of marketing advice and logistical problems.
“The Magna Carta for MSME, when fully implemented, would strengthen the industry. The salient features of the law include the 10% mandatory allocation of credit resources for ten years and the formulation of a six-year MSME development plan,” Tayag said.
“The law is already in place and all we need is someone who would implement it staunchly so that micro-entrepreneurship will become the backbone of the Philippine economy. Ang Kasangga believes that only an Entrepreneur President will be able to make this possible,” he added.