CEBU, Philippines - In the intent to boost the financial literacy among micro, small and medium enterprises, banks initiated efforts to be more responsive to the needs of the former which in return, contribute to the economic growth.
Cebu Chamber of Commerce and Industry President Prudencio Gesta said in his speech during the Cebu Bankers Club Seminar last Wednesday that the banking sector expressed its interest in helping the MSMEs particularly in education.
He added that banks have realized that such enterprises are not given enough importance even if they comprise majority of the local business community.
“I’ve been a banker myself and I believe this could be a hope for MSMEs in managing their finances,” he said.
Gesta was a former CBC president and first senior vice president of the Rizal Commercial Banking Corp.
He also said that the CCCI is already working out on partnerships with the Department of Trade and Industry and Bangko Sentral ng Pilipinas in the achievement of such goal.
In working their way towards global competitiveness, he added that businesses must be empowered with financial management.
“Some aspiring entrepreneurs are daunted with financial challenges. Thus, education is required to establish and run a business. Even with the availability of the services in financial institutions, entrepreneurs hesitate to avail such due to lack of financial education. Education is needed for them to have courage and the lookout,” he stated.
Gesta further encouraged MSMEs to utilize the services offered by banks to enable them to have better decisions towards business development.
Meanwhile, Filipino-Cebuano Business Club Inc. President Rey Calooy acknowledged such efforts from the banks in considering MSMEs as their main market to promote financial literacy.
He further admitted that not all of the enterprises are capacitated with enough background on financial management, thus resulting on cash-flow problems.
“The banks have become very aggressive and everyone, especially MSMEs, can take advantage of the opportunities in leveling the playing field,” he said in an interview.
He added that most of the FilCeb members expressed interest to learn more, thus participating in the CBC seminar which is one of the activities of the Cebu Business Month 2012.
Aside from the financial education, Calooy also noted that micro-financing and flexibility in the requirements are already offered by the banks which in return, significantly contribute to easier access to credits among MSMEs. (FREEMAN)