THE backbone of the Philippine economy is the small and medium enterprises (SMEs). From thriving local bakeries to innovative tech businesses, they influence our day-to-day lives and drive economic growth. Yet, despite their critical role, SMEs face numerous challenges, particularly in securing the necessary financing to thrive.
It is true that the Magna Carta for micro, small and medium enterprises (MSMEs), enacted in 1991, was a groundbreaking law that acknowledged the vital role that MSMEs play. By facilitating easier access to financing through organizations like the Land Bank of the Philippines, the Development Bank of the Philippines and the Small Business Corp., the financing arm of the Department of Trade and Industry, this law aimed at creating an advantageous business environment. However, even with these measures in place, MSMEs continue to face substantial financial obstacles.
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