Promoting MSMEs builds strong economy

Micro, small and medium enterprises (MSMEs) serving as the backbone of the economy, making up 99.7 percent of the Philippines’ total businesses inspired Trade Secretary Alfredo Pascual’s commitment to promote their welfare and ensure that their rights are protected.

In his pre-State of the Nation Address (SoNA) briefing, Pascual said the Department of Trade and Industry (DTI) has made significant strides in various sectors, contributing to the Philippines’ economic growth and development.

One of the notable projects for MSMEs was the Pondo Para sa Pagbabago at Pag-asenso (P3) program, implemented by the Small Business Corporation (SBCorp), the lending arm of the DTI.

The P3 Program has already shelled out P8.16 billion in loans to 154,423 micro-entrepreneurs from July 2022 to May 2024.

The said improvement represents a substantial increase compared to the total amount of loans released between January 2017 and June 2022.

Meanwhile, in 2023, there were 984,330 registered business names (BN), marking a 5 percent spike versus the previous year.

Notably, Pascual said that 78 percent of business name transactions and 80 percent of BN payment collections were conducted online through the Business Name Registration System Next Generation (BNRS Next Gen).

Furthermore, the DTI’s Negosyo Centers have played a crucial role in assisting MSMEs, providing various technical services such as business registration assistance, advisory services, trade promotion, and financing facilitation. In 2023, these centers assisted 522,535 MSMEs and 904,033 clients.

The BMBE Online system, launched in October 2022, has streamlined the registration process for Barangay Micro Business Enterprises (BMBEs).

In 2023, 73,249 BMBE registrations were processed, and in the first semester of 2024, the number reached 48,242.

Also, Pascual reported that the DTI has accelerated the digitalization of MSMEs by onboarding 47,591 MSMEs onto e-commerce platforms from January to May 2024.

The OPLAN TLC Program, in partnership with HAPINOY, has provided digital training and capacity building to 16,000 MSMEs nationwide in 2023.

The program aims to enhance MSMEs’ digital skills and facilitate their integration into the digital economy.

The DTI has also launched a pilot program called “Tindahan Mo, e-Level Up Mo!” to help sari-sari store owners digitize their businesses and adopt sustainable practices.

The program includes modules on leveraging digital technologies, online marketing, financial management, product selection and optimizing operations.

Consumers protected

MSMEs are not the only segment that is being catered to by the DTI, as Pascual said they remain the country’s vanguard when it comes to protecting consumers.

Pascual said the DTI has been actively monitoring firms for compliance with fair trade laws and product standards, with 122,397 firms monitored as of June 2024.

Task Force KALASAG, established in March 2024, aims to intensify monitoring and enforcement activities to protect consumers and legitimate businesses.

The task force has set a target of monitoring 191,400 firms in 2024, a significant increase from previous years.

The DTI has conducted inspections of 1,223 retail firms and 87,823 online firms for compliance with regulations on vape products.

These efforts have resulted in the confiscation of non-compliant products and the removal of violative product listings.

Digitization push

The government has recently passed the Internet Transactions Act (RA 11967) to establish a comprehensive legal framework for e-commerce in the Philippines, promoting trust, consumer protection, and fair competition in online transactions.

For the part of the DTI, it has made significant efforts to streamline business processes through digitalization initiatives.

These efforts have resulted in a 5.6 percent increase in online business name registrations from January to May 2024, with a total of 605,581 registrants.

The Business Name Registration System Next Generation (BNRS Next Gen) has also enhanced efficiency, allowing end-to-end online registration within eight minutes.

Additionally, the launch of the Philippine Online Dispute Resolution System has simplified consumer complaint reporting and tracking, while the DTI’s Integrated Registration Information System has achieved a 95.52 percent satisfaction rating in processing permits, licenses and accreditations.