The Securities and Exchange Commission encouraged micro, small and medium enterprises to consider tapping the capital markets, including crowd funding and initial public offering, to raise funds for their businesses.
SEC chairman Emilio Aquino said Wednesday at the start of a nationwide roadshow on capital markets, MSMEs should have access to different financing options given their great contribution to the Philippine economy.
The MSME network accounts for 99.5 percent of total businesses in the country and employs 63 percent of the local workforce. It also constitutes 25 percent of the country’s total exports and contributes 40 percent to the gross domestic product.
“However, 67 percent of our MSMEs are still experiencing credit constraints. Most of them rely on internal resources for their capital needs. While those who apply for traditional bank loans face tedious documentation, high interest rates, and mandatory collateral requirements,” Aquino said in a speech.