How the private sector can help boost MSMEs

President Ferdinand Marcos Jr.’s State of the Nation Address (SONA) on July 28 outlined a comprehensive agenda for empowering micro, small, and medium enterprises (MSMEs) as part of the government’s strategy to promote inclusive economic growth. His emphasis on providing low-interest, collateral-free loans, free training, and capital for startups reflects the administration’s commitment to lifting millions of Filipinos out of poverty through entrepreneurship. However, while the government has laid out a robust framework to support small businesses, these initiatives can only achieve their full potential with active participation and collaboration from the private sector.

As the backbone of the Philippine economy, the private sector has the resources, expertise, and networks to complement government efforts. While President Marcos Jr. highlighted programs offering capital and training to aspiring entrepreneurs, the private sector must amplify these efforts to ensure broader reach and long-term impact.

One key way businesses can support these initiatives is by partnering with the government to provide mentorship and technical expertise for small business owners. Corporations with established training departments can offer workshops, mentorship programs, and industry-specific guidance. By collaborating with agencies such as the Department of Trade and Industry (DTI) and the Department of Labor and Employment (DOLE), private companies can bridge the skills gap, equipping aspiring entrepreneurs with the tools they need to succeed.

Another vital area where the private sector can make a significant impact is in funding and investment. While President Marcos Jr. highlighted the government’s provision of low-interest, collateral-free loans to encourage microenterprise growth, the private sector can amplify this by offering tailored financing solutions. Banks, financial institutions, and fintech companies can design innovative loan products and credit facilities that cater specifically to the needs of small business owners. Corporations can also establish venture capital funds or seed funding programs to support high-potential startups. Aligning these efforts with government initiatives will expand resource availability and foster a robust entrepreneurial ecosystem.

The private sector can also help MSMEs access larger markets. A major challenge for small businesses is limited market reach, which private enterprises can address by integrating MSME products into their supply chains. Retailers can allocate shelf space for local goods, while e-commerce platforms can provide exclusive opportunities for small businesses to showcase their products. These efforts not only boost MSME visibility and revenue but also promote Filipino innovation and align with the country’s economic goals.

Private sector involvement is essential in unlocking the agricultural sector's potential, as emphasized in President Marcos Jr.'s SONA. By investing in agriculture, businesses can collaborate with small farmers and agripreneurs, offering advanced technologies, modern equipment, and sustainable farming practices. These partnerships can boost productivity, lower costs, and enhance the competitiveness of small-scale farmers in both local and international markets.

Corporate social responsibility (CSR) initiatives also provide a strategic avenue for private sector participation. Existing CSR programs focused on livelihood development, women’s empowerment, and community building can align with government goals to support microenterprises. Companies can offer grants and training programs for marginalized groups, such as women and youth, to encourage entrepreneurship and inclusive growth.

Meanwhile, technology companies play a critical role in driving digital transformation for MSMEs. Building on the government’s efforts to expand internet access and bridge the digital divide, private firms can provide affordable digital tools, e-commerce platforms, and logistics solutions. These initiatives equip small businesses to thrive in a tech-driven economy, ensuring their competitiveness and long-term success.

The success of the Marcos administration’s initiatives for microenterprises relies heavily on active collaboration with the private sector. While the government provides financial support, training, and policy direction, the private sector must fill the gaps, utilize its resources, and drive innovation. This partnership can foster an environment where small businesses thrive, resulting in job creation, poverty alleviation, and sustainable economic growth.

Empowering microenterprises requires a unified effort. The private sector’s contributions in mentoring, funding, expanding market access, and advancing technology are vital to ensuring government programs achieve meaningful outcomes. By working together, the public and private sectors can build a thriving entrepreneurial ecosystem that uplifts millions of Filipinos and advances inclusive progress, paving the way for a stronger future for small businesses and the nation.