Lawmaker urges government to help poor put up micro-businesses

MANILA, Philippines - An administration lawmaker is urging concerned government agencies to make it easy for the poor to put up their own micro-businesses that would greatly help them get out of poverty.

Ang Kasangga party-list Rep. Ted Haresco said the latest Social Weather Stations (SWS) survey showing an increasing trend in the number of families that experienced hunger could be solved by the “most promising and sustainable solution that is to spur the creation of micro-businesses.”

He noted the same poll showed that poverty was on the decline as he warned of falling for the “illusion that these statistics can create” as “the measure of hunger is by far a more telling phenomenon.”

“To address this (hunger and poverty), stimulative efforts by the administration and agencies like the DTI (Department of Trade and Industry) promoting the creation of micro-businesses should be started,” Haresco, vice chairman of the House committee on small business and entrepreneurship development, said.

“There is no better opportunity for progress for those who have limited chances for formal employment,” he said.

“Starting with something as simple as a public information campaign targeted to the poor to create their own businesses,” he added.

He said the public information campaign should be coupled with training seminars with the Technical Education Skills and Development Authority, and more importantly funding from government financial institutions like the Landbank and the Development Bank of the Philippines.

He said such a move would effectively create livelihoods, and therefore stimulate internal demand, helping prop the economy up despite weakening demand from the US and Europe.

“The administration needs to consider easing difficulties in the formation of businesses in the country. In the recently concluded Arangkada Philippines Forum conducted by the Joint Foreign Chambers, the ranking of the Philippines in terms of attractiveness in doing business and ease of business creation had actually worsened,” Haresco said.

“This is in terms of foreign businesses considering doing business in the Philippines. For micro-and small-scale businesses that are above the underground economy, bureaucracy and the lack of funding and incentives hamper their proliferation,” he said.

Haresco said a comprehensive micro entrepreneurship campaign such as this would dovetail with administration efforts at increased spending for infrastructure projects.

Budget Secretary Florencio Abad, said, he announced the release of over P140 billion for infrastructure projects beginning in January 2012.

“If the campaign can train the poor to seek out entrepreneurial opportunities, when a big ticket infrastructure project gets started near their area, they should be able to benefit,” he said.

Haresco pointed out that this is just one aspect of the socio-economic pump-priming stimulus that government spending provides.

“Ultimately, stimulating internal demand by creating an environment encouraging micro-businesses will both result in the growth of the micro and small business sector, which already accounts for 99.6 percent of all the businesses in the country,” he said.

It will also encourage the underground economy to become part of the formal sector, he said. “Productivity is the key to achieving our GDP growth target, which is set at about five by 2012.”