Sy-Coson trusts small firms amid slowdown
SM Investments Corporation vice chairperson Tessie Sy-Coson underscores the vital role MSMEs plays particularly at a time when economic headwinds are buffeting the country. Sy-Coson was interviewed by journalist Rico Hizon at the ASEAN Inclusive Growth Summit at Shangri-La The Fort, Taguig City on Wednesday. The same forum was attended by Hollywood actress and global humanitarian Angelina Jolie, award-winning singer and actress Lea Salonga, Ayala Corporation chairman Augusto Zobel de Ayala and son, AC Mobility CEO Alfonso Zobel de Ayala, among others.
Photograph courtesy of Stratbase
As the Philippine economy grapples with slowing growth and rising costs, business magnate Teresita “Tessie” Sy-Coson sees an unlikely source of strength in the country’s smallest enterprises, betting that more Filipinos turning to entrepreneurship could help sustain economic activity.
The SM Investments Corp. vice chairperson said micro, small and medium enterprises (MSMEs) remain a vital pillar of the economy, providing livelihoods and business opportunities even when economic conditions become less favorable.
“When the economy is not very, uh, not as comfortable as we want it to be, uh, the small businesses are the — are the way to go,” Sy-Coson said during an inclusive growth summit.
She stressed that entrepreneurship could provide an alternative income source for Filipinos facing limited employment opportunities, while helping develop the next generation of major businesses.
Deeply rooted in SM’s own beginnings
Sy-Coson said the importance of small enterprises is deeply rooted in the SM Group’s own beginnings, having grown from a modest shoe business into one of the country’s largest conglomerates.
“Micro and small businesses are really the foundations of our business, whatever business we’re in,” she said.
To help smaller enterprises scale up, Sy-Coson said SM continues to provide entrepreneurs with access to established retail markets through MSME fairs and other activities across its malls.
The arrangement allows entrepreneurs to focus on improving their products and generating sales while benefiting from the group’s existing customer traffic.
“So, it depends on how they develop their products, and many of them become our tenants,” she said.
Extending financial services through BDO Network Bank
The group is also extending financial services to underserved communities through BDO Network Bank, which Sy-Coson said now operates about 600 branches, largely in remote areas where access to formal banking remains limited.
The network provides banking transactions and loans, including financing for MSMEs, to help smaller businesses establish a foothold and eventually expand.
Looking toward the wider ASEAN market, Sy-Coson said Filipino entrepreneurs must also become more aware of regional opportunities, competition, and emerging technologies, including artificial intelligence.
Market knowledge just as important as access to capital
She emphasized that market knowledge is just as important as access to capital in helping smaller enterprises compete and grow.
Despite the challenging economic outlook, Sy-Coson remained optimistic that today’s small entrepreneurs could eventually become tomorrow’s major industry players.
“I would encourage a lot of people to go into business,” she said.