DTI inks deal with BPI Family

CEBU, Philippines - The Regional Operations Group of the Department of Trade and Industry signed a memorandum of agreement with BPI Family Savings Bank to provide technical and financial aid to micro, small and medium enterprise clients of Negosyo Centers.

DTI Undersecretary for regional operations Zenaida Maglaya said the MOA will open doors for entrepreneurs who are looking to expand their business.

“This is a most welcome partnership as we really push entrepreneurship because not only we are opening doors for would-be entrepreneurs, but we want them to work with our Negosyo Centers,” Maglaya said in statement yesterday.

Under the MOA, DTI and BPI Family will aim to conduct financial wellness seminars to MSMEs, provide them access to financial services and present benefits of taking up a business loan for business expansion.

The thrift bank will also conduct financial wellness talk to MSMEs on topics such as basic information on loans, benefits of applying for a business loan, financial schemes, among others.

Ma. Cristina Go, senior vice president and head of retail lending of BPI Family, was quoted as saying the MOA will encourage more aspiring Filipino entrepreneurs to venture into business.

“It’s our belief that awareness, education on how to put up business will give more Filipinos confidence to conduct more entrepreneurial ventures,” Go said.

Financing

During the recent Mentor Me launching, a mentoring program for entrepreneurs, in Cebu City, Cebu entrepreneur Jay Aldeguer said that there really is a need to connect MSMEs to the formal lenders like banks.

He said that financing is one of the most aspects in the growth of the MSME sector and banks, and not the informal lenders, can well help in this aspect.

Aldeguer believes banks have the financial resources to help MSMEs and that it is just right to understand their needs and plights.

"We need to help micro entrepreneurs professionalize their businesses," said Aldeguer, president of Islands Group.

Republic Act 10644 or the Go Negosyo Act mandates the creation of negosyo centers across the country to help grow the micro, small and medium enterprise (MSME) sector which accounts for around 99 percent of registered businesses in the Philippines.

The law says that negosyo centers must facilitate ease of doing business in the country and access to services for MSMEs.

Aside from accounting for most registered businesses, MSMEs also make up for most jobs created in the country.

MSMEs are co nsidered to be an important economic growth driver, as they stimulate domestic demand through job creation, innovation and competition.

With that, prioritizing MSME development is critical in achieving inclusive growth. (FREEMAN)