Stronger SME sector, key to inclusive growth — VP Binay

Small and Medium Enterprises (SME). ShutterStock image

MANILA — Vice President Jejomar Binay on Friday pushed for the development of small and medium scale enterprises (SME), saying that a strong SME sector will lead to inclusive growth.

In his speech at the Philippine Capital Markets Investment Forum in Cebu City, Binay noted that while the Philippine capital markets are performing well, SMEs still find it difficult to access capital to finance their ventures.

“The problem is that while investment inflows are diversifying, the breadth of investment products remain basically the same — shares from large, publicly listed companies and other traditional products.

The small and medium scale enterprises, that sorely need access to capital, are not able to tap into this pool,” he said.

“The stark reality is that today, while there are 30 companies listed in the PSE’s [Philippine Stock Exchange] main board, only two firms are available in the SME board,” he added.

Binay then called for the rationalization and easing of the listing requirements in the SME board so that SMEs can have access to capital funds.

The Vice President also pushed to educate the SME sector on the availability of capital generation option, providing assistance to those interested in complying with listing processes and requirements.

He also stressed the need to nurture the entry of early participants to ensure greater chances of success, not only for the listing enterprises but also for the investors that believed in them.

“This is the final dimension of true inclusion, sustainable inclusion — when economic growth not only brings jobs, but also creates opportunities for small and medium scale firms to grow and flourish,” Binay pointed out.

The Vice President said it is at this point when each one of us become part of the growth story, as consumers, as employees, as investors, as enterprises, as Filipinos sharing in the gains of economic development.

“And it is at this point that we can say that we have succeeded in truly moving our nation forward, in building a Philippines where the fruits of progress are shared by all,” he said.