‘Make use of Negosyo Centers’

CEBU, Philippines – The Department of Trade and Industry is inviting different financial institutions to make use of the newly opened "Negosyo Centers" in Cebu to reach out to their target clientele.

The agency likewise calls on entrepreneurs to avail of capitalization requirements through the center.

DTI regional operations group head undersecretary Zenaida C. Maglaya said that the problem of access to finance will be addressed if financial institutions, and the entrepreneurs will converge in one venue.

Maglaya hopes that financial institutions, from government, private sectors and even non-government organizations (NGOs) will make themselves available in the center, while entrepreneurs and would be businessmen are urged to visit the centers to get basic information and tools on how to start or expand a business.

Access to finance is one of top concerns of entrepreneurs, the center on the other hand will try to gather credit providers to display their respective loan packages for the clients to choose.

Initially, the Negosyo Centers in Cebu--both regional and provincial offices of the DTI got the commitment from some financial institutions like SB Corporation, Land Bank of the Philippines, Bank of Makati, and Bank of Philippine Islands.

In a study presented by the Asian Institute of Management (AIM-Policy Center), it revealed that despite the swelling liquidity in the Philippines, majority of the business players in the country were not able to make something out of this opportunity, disabling Micro-Small and Medium Entrepreneurs (MSMEs) from reaching the global market.

AIM-Policy Center executive direct Ronald U. Mendoza said that the access to finance to MSMEs still one of the major problems of the Filipino entrepreneurs.

Mendoza said that most of the banks prefer to lend their money to conglomerates, which are now heavily expanding in the regional and global levels, leaving behind the small and medium entrepreneurs unable to grab the chance of guarding its present market, as well as pursuing the growing 650 million consumers in the ASEAN region.

According to Mendoza, the money in the system with favorable interest rate for credit is only enjoyed by big players or the conglomerates, who are the banks' favorites for credit access.

If the MSMEs are given the opportunity to "bloom" either in the homegrown or expanding in the ASEAN region, the economic unbalanced can be minimized, thereby achieving the government's ambitious goal of "inclusive growth."

DTI-7 regional director Asteria Caberte said that to bridge the gap between the entrepreneurs or MSMEs and finance institutions, both have to meet halfway.