The national government should ensure a sustained and reliable support system on micro, small, and medium enterprises (MSMEs) in its efforts to move the country's economy forward, Angkas chief executive officer (CEO) Angkas George Royeca said.
Royeca explained that the government might be missing out on more revenue and livelihood opportunities because it has yet to explore the potential of the country’s MSMEs.
"While foreign direct investments fuel the Philippine economy there are plenty of local industries that can and are already powered by Filipino capital and these create millions of jobs, directly putting money in people's pockets," said Royeca during the 48th Philippine Business Conference and Expo where he was among the panelists in the CEO Forum.
“MSMEs are hidden gems that we haven’t really explored. We should harness the power of MSMEs through technology and digitalisation. In fact, simply recognizing them will already go a long way," he added.
Royeca cited as an example the case of Angkas which he said started in a way of meeting the demand for fast and safe transport system by harnessing the power of the motorcycle transport sector.
He said there are plenty of entrepreneurs in the country who are just waiting to get the needed support for their businesses.
"We are surrounded by entrepreneurs--from drivers, massage therapists carenderia owner, taxi driver, sari-sari (variety) store owners. They are all into business. There a a lot of Filipinos who own a business. All we need to do is pool them together and harness their power, Royeca explained.
SM Investment Corporation Vice Chair Tessie Sy-Coson, also a panelist during the CEO forum, echoed Royeca’s statement, saying that if the government can make things simpler for MSMEs, entrepreneurs and businesses will definitely grow.
“The Philippines is a country with a lot of MSMEs and SMEs. They are the main pillars of our country and one that employs a lot of people. If the government can recognize that we have a lot of them and they’re really supported, the economy will grow and we will become a greater nation,” Sy-Coson said.
Aboitiz Equity Venture Chief Financial Officer Manuel Lozano, also one of the panelists, shared the same sentiment and expounded that the banking sector should recognize the important role of MSMEs in the country’s economic growth and should make things easier for them.
“A lot of MSMEs and SMEs are just waiting for someone to take a risk on them. Like us. We wouldn’t be here if someone didn’t take a risk on us. We should enable this again but on a larger scale to make it inclusive,” Lozano said.
Royeca said it would be a big first step if the government would start recognizing different sectors that comprise the informal economy then enable and empower MSMEs using technology.
“When we professionalize an informal industry, we make them part of the formal economy. Like for Angkas, we simply professionalized the already existing habal-habal and created a marketplace through technology," said Royeca.
"Today, they earn as much as 45 thousand to 80 thousand a month. We now have 30k bikers but our aim is to expand that this opportunity to 18M motorcycle owners. What technology can do is pool them together so that they are exposed to a larger base of customers,” he added.
The Angkas CEO also expressed optimism that MSMEs would have a brighter six years knowing that the new administration is very positive about emerging platform technologies and digitalization.