Welcomes new players MSME sector posts positive growth in 2012

CEBU, Philippines -  Amid the tough and always-present competition with large-scale retailers and businesses, the micro, small and medium enterprise (MSME) sector has enjoyed the year 2012 with the trade growth rate and birth of new players in the industry.

Rey Calooy, head of the Filipino Cebuano Business Club, Inc. (FCBI) which is an organization of MSMEs in Cebu, described 2012 as a “great” year for the sector.

He cited that the growth rate of the total trade from January to August of 2012 posted 2.5% compared to the 2.2% growth recorded for the entire year of 2011.

Calooy is the owner and founder of RNC Marketing Philippines, a toll packing, contract manufacturing, and distributor of products such as industrial, food, noodles, institutional, care and household.

Popularly known as Cebu’s iron entrepreneur, he recently ventured into agri-preneurship and coffee vending business. 

Calooy noted that the growth the MSMEs have enjoyed for this year has been fueled by the business process outsourcing companies, retail sector, mining, tourism and manufacturing industries.

He further commended the Philippine Business Registry that was launched by the Department of Trade and Industry this year since the internet-based application of businesses contributed to the slight increase of new potential entrepreneurs in the MSME sector.

Majority of emerging businesses are the 24/7 retail outlets budding all throughout Cebu, he said.

He added that the retail trade accounted more than 49% or 777 357 of the total number of businesses registered.

It was then followed by the manufacturing industry at 14%, hotel and restaurant at 12%, real estate and renting at 6% and other businesses at 19%.

“Small to medium-sized real estate developments in Cebu are vibrant. Boutique hotels and medical industries are on the rise as well. Agricultural business is also trending with young agripreneurs becoming engaged to such venture,” he continued.

Calooy, however, pointed out that micro and small enterprises like sari-sari stores in particular are struggling this year due to the massive expansion of big retail stores at nearby residential areas.

He added that distribution-related business also experience hurdles in 2012 since consumers now have the accessibility and proximity to supermarkets and online stores, prompting the latter to purchase on their own rather than depending on the former.

Other struggles that the sector is dealing with could be primarily be attributed to the uneasy access to credit and support from local government units (LGUs), Calooy said. 

“FCBI didn’t even notice any LGU celebrating the 2nd week of July as MSMED Awareness Week or the Micro Small and Medium Enterprise Development Week as mandated by Magna Carta for MSMEs,” he stated.

Even with such challenges in their businesses, he added that small-scale entrepreneurs especially FCBI members seek advice from mentors and train themselves to be emotionally stable in times of trials and hardship.

“Philippine success rate in business is less than 2%. Mortality rate is 98% after five years in operation from the day you started from scratch. Common reasons for failure include lack of capital, lack of experience, lack management expertise, and neglect.  The passion, energy and the can-do spirit also fades gradually and discourages potential entrepreneurs,” Calooy told The Freeman.

FCBI has been actively encouraging Cebuanos to venture into businesses and become job creators, not job seekers.  (FREEMAN)