Angkas CEO George Royeca has put the spotlight on the crucial need to explore the power of micro, small, and medium enterprises in helping move the country’s economy forward.
During the 48th Philippine Business Conference and Expo, Royeca — one of the esteemed panelists in the CEO Forum – explained that 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.
Nevertheless, the government might be missing out on more revenu and livelihood opportunities because it has yet to explore the potential of the country’s MSMEs.
“MSMEs are hidden gems that we haven’t really explored. Like Angkas — we didn’t create the motorcycle transport sector, they were just part of the informal sector. Same thing with sari-sari stores. It’s still considered part of the informal economy depsite being the largest channel of FMCGs,” said Royeca.
“We should harness the power of MSMEs through technology and digitalization. In fact, simply recognizing them will already go a long way. All we need to do is pool them together and harness their power,” he added.
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 shares the same sentiment, stressing 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. 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,” Royeca said.
The Angkas CEO is optimistic MSMEs will have a brighter six years knowing that the new administration is very positive about emerging platform technologies and digitalization.