CITY Council’s committees on Trade and Commerce and Ways and Means chair Councilor George Goking on Monday vowed to support the revitalization of the city’s Micro, Small, and Medium Enterprises (MSMEs), acknowledging the sector’s role in post-pandemic economic regeneration, job creation, and poverty reduction.
Goking emphasized following the House of Representatives earlier approval of the final reading of a bill that seeks financing for small businesses, especially those crippled by the Covid-19 pandemic.
“I agree and support it. We have to institutionalize a financing strategy for small businesses, especially those crippled by the pandemic and other significant economic challenges,” said Goking.
Goking added that the MSMEs during this post-pandemic played an important role in economic and social development in the city.
Before the pandemic, according to Goking MSMEs also chipped into value-added activities, innovation, and inclusive growth through the creation of job opportunities and their widespread presence in both urban and rural areas.
“MSMEs are the backbone of the economy,” said Goking who was for him supporting all our small businesses even before the pandemic.
Goking reiterated that the city government led by Mayor Rolando ‘Klarex’ Uy is in full commitment to working hand-in-hand with all stakeholders to make certain that MSMEs are protected.
“With the new law on financing, the city government can now deliver with ample opportunities, not only to recover from these extraordinary times but to grow and thrive,” said Goking.
Under House Bill No. 1, entitled “An Act providing for Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery,” or Guide Act, the operation of micro, small and medium enterprises has been severely restricted by pandemic-related community quarantine measures.
“It is essential that these enterprises are given necessary access to credit and financial assistance. It is hereby declared the policy of the State to protect employment and assist distressed enterprises to reinvigorate the economy,” the bill reads.
On how MSMEs can better exploit the opportunities offered, Goking also reintroduced the digital economy, such as e-commerce to expand into international markets.
“To hold an MSMEs summit which is a great opportunity for businesses not only in our city but also cities and provinces in Mindanao is highly recommended,” said Goking, adding on how governments can effectively support MSMEs in taking advantage of the digital economy.
“In light of widespread digitalization - especially accelerated by the global pandemic - MSMEs must think about how to effectively take advantage of the digital economy,” he said.
He added that possible benefits include access to wider international markets using the platform or by using digitally enabled services.
“These new forms of interaction with customers and other MSMEs via social networks and platforms can reduce trade costs,” Goking stressed.
As Philippine Councilor League northern Mindanao chair, Goking said that the MSME gathering, he noted, could be an apt platform for tackling the strategies on how to revitalize MSMEs under the new normal.
“It will also be an avenue for the government and the private sector to find ways to work together, ensuring an enabling and sound environment for the recovery of the country’s MSMEs,” he said.
Goking also cited that even President Marcos Jr. is pleased and convinced that the MSME Summit will focus on a post-pandemic recovery.
“Also the promotion of digitalization, is aligned with the administration’s priorities,” said Goking.
MSMEs are the lifeblood of the Philippine economy, making up 62.66% of the country’s total employment, according to Goking.
Meanwhile, according to the Department of Trade and Industry, the act defines MSMEs as: “any business activity or enterprise engaged in industry, agribusiness and/or services, whether single proprietorship, cooperative, partnership or corporation whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity’s office, plant, and equipment are situated, must have value falling under the following categories: micro, not more than P3 million; small, P3 million to P15 million; and medium, P15 million to P100 million.”
To this end, according to Goking government financial institutions are mandated to expand their credit programs to assist MSMEs to meet their liquidity needs.
