By PR | 09:43 PM March 08, 2024
The Securities and Exchange Commission (SEC) is linking Micro-, Small, and Medium-sized Enterprises (MSMEs) to the capital market through a crowdfunding system.
Held on March 7 in Tagbilaran City, SEC invited various panelists from government agencies and crowdfunding intermediaries to understand more about easy and accessible funding options for business expansion.
Lawyer Filipina Asoy-Piollo, Capitol chief-of-staff representing Gov. Erico Aristotle Aumentado, opened the event with a message recognizing MSMEs’ contribution to Bohol’s economy through sustainable tourism and smart and climate-resilient agricultural practices.
She also thanked the SEC for choosing Bohol to share market-based funding solutions that can foster a business-enabling environment through expansions in the UNESCO Global Geopark regenerative island.
Lawyer Karlo Bello, SEC commissioner, shared in his keynote the importance of MSMEs as one of the top economic priorities after it was struck by the COVID-19 pandemic.
“MSMEs are the backbone of a resilient national economy as they stimulate domestic demands through job creation and competition”, he said.
“We recognize that there is a need to broaden financial instruments available for MSMEs,” Bello added, underscoring the goal and objective of the SEC’s roadshow stops.
Lawyer Oliver Leonardo, director of the SEC’s markets and securities regulation department, explained the capital market and how it benefits MSMEs.
Alexander Capulong, country head of Investree Philippines, and Charmaine Co, marketing head of Round One, offered opportunities in crowdfunding as a capital-raising activity.
Capulong ascribed Investree as “a crowdfunding portal, which converts the debt into security and offers the note to investors through bidding”.
He also explained that the platform “selects what MSMEs to finance and decides the amount and interest rate”.
On the other hand, Co underscored building stronger and more resilient enterprises through Round One equity crowdfunding through investment in shares sold by a company and sharing its profit.
Investree and Round One are only two of the three crowdfunding intermediaries registered with the SEC.
The afternoon session tackled the Philippine Stock Exchange (PSE) Inc. listing, featuring Mark Frederick Visda, head of PSE’s capital markets development division; Val Bagatsing, chairman and chief executive officer of Investment & Capital Corporation of the Philippines; and Philip Edward Sagun, deputy chief financial officer of Alsons Consolidated Resources Inc.
Through listing shares in PSE, companies can raise their capital through the issuance of new securities and will have easier access to funds.
Participants were also allowed to ask the speakers and consult with them regarding concerns about their businesses.
Tagbilaran City Mayor Jane Yap also delivered a message of support to the MSMEs, highlighting the city’s achievement as Hall of Fame awardee for coveting “Most Business Friendly City” three times within five years.
The event, which kicked off in February last year, was collaboratively organized with the provincial government of Bohol and the European Chamber of Commerce of the Philippines, in partnership with Alsons Consolidated Resources Inc., Mapalad Power Corporation, Converge Business SME Services, and UHY M.L. Aguirre & Co. CPAs.
To learn more about the SEC’s programs on capital formation using the capital market, you may join the Securities and Exchange Commission’s Office for the Advancement of Strategic Investments in SMEs Facebook group. (PiMO/JSS)
