The Securities and Exchange Commission (SEC) is pushing to bring more micro, small and medium enterprises (MSMEs) into the formal economy, urging entrepreneurs to incorporate their businesses and tap the capital market as an alternative source of funding for expansion rather than relying solely on traditional financing.

The regulator said Saturday that greater participation in the capital market would help MSMEs secure long-term capital, strengthen governance and position themselves for sustained growth.

Large corporations once were small businesses

“Every large corporation was once a small business… So never underestimate where you are today. The next great Filipino enterprise may begin in a sari-sari store, a home-based business, an online shop, or a family business represented in this very room,” SEC chairperson Francis Lim said.

Lim said the Commission is making it easier for MSMEs to formalize and grow by reducing compliance costs and improving access to government services.

“We are not just regulators. We are your partners in your growth. We are committed to making it easier for you to do business by lowering costs through discounts, digitalization, faster processing, and more accessible services,” he added.

Measures to ease regulatory burden on MSMEs

The Commission said it has rolled out several measures to ease the regulatory burden on MSMEs. It cut the cost of corporate document requests by 50 percent in 2025 before increasing the discount to 75 percent this year, translating to nearly P211 million in corporate data fee discounts as of June 2026.