Batang Quiapo Party-list has undescored the need to recalibrate government support for small and medium-sized enterprises (SMEs)—the backbone of the Philippine economy.
Citing data from the Philippine Statistics Authority (PSA), Batang Quiapo Party-list nominee Zofia Canlas pointed out that over 99 percent of registered enterprises in the country fall under the MSME (micro, small, and medium enterprise) category. This collectively employs a majority of the national workforce.
"These businesses aren’t just statistics—they’re the engine of our local economies. Yet, they often operate under tight margins, limited credit access, and regulatory burdens that larger firms can more easily absorb. We believe that targeted tax exemptions and access to institutionalized bridge financing will empower them to scale up and thrive,” Canlas said.
The proposed measures include sweeping tax relief for micro-entrepreneurs—those operating at the smallest scale—by exempting them from income and business taxes under certain revenue thresholds. This initiative reduces bureaucratic red tape and frees up working capital that entrepreneurs can reinvest in their operations.
“Tax exemptions can be transformative for early-stage businesses,” Canlas noted. “They provide immediate liquidity relief and reduce compliance costs, enabling entrepreneurs to focus on growth, job creation, and community development.”
Batang Quiapo Party-list also advocates for institutionalizing an informal financial mechanisms like the "Paluwagan"—a community-based rotating savings and credit system widely practiced across Filipino neighborhoods.
Under the proposed framework, this grassroots model would be adapted into a formalized, government-recognized micro-finance program, giving small entrepreneurs access to regulated, low-interest bridge loans.
“Formalizing Paluwagan gives small business owners a culturally familiar yet legally sound tool to manage cash flow and fund expansion,” Canlas explained. “It’s time we modernize community financing with public policy support.”
Beyond tax and credit interventions, Batang Quiapo’s broader vision includes the development of SME-friendly ecosystems, where small businesses have better access to digital platforms, financial education, and technical support.
Canlas also underscored the untapped potential of SMEs in fostering innovation and responding to hyper-local market needs.
“When you support a sari-sari store, an online reseller, or a food cart vendor, you’re not just investing in a livelihood—you’re investing in the resilience and creativity of Filipino enterpreneurs," the aspiring congresswoman said.
The party-list actively engages with local chambers of commerce, fintech companies, and economic planners to build a multi-stakeholder coalition to push the SME agenda in Congress.
As the Philippines grapples with post-pandemic recovery and rising inflation, Canlas believes now is the time for the government to double down on SME-centric reforms.
"Big businesses may dominate headlines, but the small ones shape our daily lives and communities. Giving them a real shot at success isn’t charity—it’s sound economic strategy."