CAGAYAN DE ORO CITY (PIA)–The Securities and Exchange Commission (SEC) continues to pitch the capital market as an alternative funding option for micro, small and medium enterprises (MSMEs) and start-ups.
This, as SEC brings its roadshow on capital formation to Cagayan de Oro City, Friday, April 14.
The Securities and Exchange Commission brings its capital formation roadshow in Cagayan de Oro City to pitch the capital market as an alternative funding source for MSMEs and start-ups. (Daniel Clark Cabantan/PIA-10)
The roadshow attracted 98 onsite and 37 virtual participants consisting of executives from local companies, government agencies, and business groups.
SEC Commissioner Kelvin Lester Lee said it aims to promote and raise awareness on various ways for MSMEs to access the capital market for their financing needs.
SEC Commissioner Kelvin Lester Lee states that the capital formation roadshow aims to promote and raise awareness of the various ways MSMEs and start-ups can access the capital market for their financing needs. (Daniel Clark Cabantan/PIA-10)
“Our capital formation project is important, it will show that there is a viable alternative to banks and traditional fundraising methods. If there is one thing that I want everyone to learn from this is that yung nga there are alternatives, hindi lang bangko ang kausapin niyo, mayroon tayong ibang options to raise capital for you to do business,” he said.
The roadshow is also aligned with the national government’s thrust of accelerating financial inclusion.
President Ferdinand Marcos Jr. in his State of the Nation Address emphasized the importance of providing financing options for MSMEs, especially as businesses start to recover from the effects of Covid-19.
According to Commissioner Lee, the MSME network accounts for 99.5%of the total businesses in the country, hires 63% of the local workforce, and contributes around 40% to the national GDP.
“However, 67% of our MSMEs continue to experience credit constraints, in short, they have difficulty finding financing. Most of them rely on internal sources for their capital needs. Or those that apply for traditional bank loans face relatively tedious documentation, high-interest rates, and mandatory collateral requirements. Furthermore, the recent economic slowdown due to Covid-19 has exacerbated the MSMEs’ poor financial position,” he noted.
As such, the commission’s efforts are geared towards broadening the financing options available to MSMEs to jumpstart their businesses or expand their operations.
Meanwhile, executives from Investree Philippines, SeedIn Technology, Inc., and Round One, which are SEC-registered crowdfunding intermediaries discussed the opportunities of crowdfunding and how MSMEs and start-ups can tap their services.
Representatives from the Philippine Stock Exchange, on the other hand, gave a briefing on how to go on public offering by listing at the stock exchange while the Investment & Capital Corporation of the Philippines discussed underwriting services for MSMEs.
Participants also took the opportunity to engage in personal consultation with the crowdfunding intermediaries. (APB/PIA-10)
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