Economic growth in the Philippines has been on the rise in the past decades since the 1997 Asian financial crisis. In fact, the Philippine economy exceeded expectations amidst the political tension and security threats as the country’s Gross Domestic Product (GDP) surged to a 6.9% growth as of the first quarter of 2016 while Gross National Income (GNI) grew to 7.6%, the highest since the third quarter of 2013.
The creation of the ASEAN Economic Community (AEC) which includes the ASEAN Free Trade Agreement (AFTA) is also seen as a huge advantage to future economic growth. By 2050, HSBC and Goldman Sachs have predicted the Philippines to be the 14th largest economy in the world, 5th largest economy in Asia and the largest economy in Southeast Asia by 2050.
Due to the diversification of local products and continuing liberalization of trade, opportunities arise in many industries such as manufacturing and service. Micro, small and medium enterprises (MSMEs) also have a prime spot in the ongoing ASEAN economic integration, as the government has prioritized to promote the growth and development of MSMEs and give them access to participation in regional and global trade.
MSMEs comprise 98% of all registered businesses and 50% of the domestic workforce are employed by them. The Department of Trade and Industry confirms that Small and medium enterprises (SMEs) comprise 99.6% or 816,759 businesses of the total Philippine industries.
Of the 944,897 business enterprises in the Philippines, 99.6% (940,886) are micro, small, and medium enterprises (MSMEs) and the remaining 0.4% (4,011) are large enterprises. Of the total number of MSMEs, 89.8% (844,764) are micro enterprises, 9.8% (92,027) are small enterprises, and 0.4% (4,095) are medium enterprises.
In terms of value-added, the MSME Development Plan for 2011 to 2016 states that this sector contributes 35.7% of the total with manufacturing contributing the largest share of 6.87%; wholesale and retail trade and repair with 6.58%; and financial intermediation with a share of 6%. Small enterprises account for the largest share of 20.5%, followed by medium enterprises with a share of 10.3% and microenterprises with 4.9%.
The government has provided intensified assistance to micro, small and medium enterprises development through the passage of various laws. These include the Barangay Micro Business Enterprise.
The act provides various incentives and benefits to entrepreneurs. The Department of Trade and Industry has also crafted the National SME Development Agenda.
The agenda aims to increase the share of SMEs to the economy by providing services through the convergence of assistance composed of finance, product development, technology, training, marketing and advocacy for an enabling environment. However, despite the effort of the government’s policy and program support, the problems and issues mentioned above still remain.
The microenterprise sector, clearly, is a crucially important component of the Philippines economy. Microenterprises, like all enterprises, need access to quality financial services if they are to prosper and grow.
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Mga bagay na dapat mong malaman sa insurance
Mga iba pang babasahin tungkol sa insurance:
- Iba’t-ibang klase ng insurance
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- Ang pinakamatatag na insurance company sa Pilipinas (Part 1)
- Ang pinakamatatag na insurance company sa Pilipinas (Part 2)
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- Gusto kong paghandaan ang future ng anak ko, tama bang investment-linked insurance ang kinuha ko?
- Paano gumagana ang ibinabayad na premium sa insurance para mabigyan tayo ng proteksyon sa panahon ng emergency
- Kung akala mo insurance ang education plan, basahin mo ito
- Insurance para sa mahirap
- Bakit mahal ang VUL o investment-linked insurance
Mga bagay na dapat mong iwasan sa insurance
Ito ang listahan ng mga articles na isinulat ko at videos na nagawa ko tungkol sa VUL para makakuha tayo ng mas sulit at mas epektibong insurance coverage.
- Bakit mahal ang VUL?
- Bakit mas maganda ang BTID kaysa VUL?
- Epektibong paggawa ng BTID upang masulit ang pinaghirapang pera sa insurance at investment
- Paanong mas maliit ang fund value sa VUL kaysa sa BTID?
- Ok ba talaga ang VUL kasi protected ka nito beyond 65 years old compared to term?
- Ok ba talaga ang VUL para sa estate taxes?
- Why Not VUL?
- Anong gagawin ko kung may VUL na ako? Paano ko ito ititigil?
- Pagkakaiba ng savings sa VUL
- Mga terms and conditions na kailangang hanapin kung bibili ng VUL
- Paano pumili ng mabuting insurance agent