SEC Promotes Capital Market Funding for Visayas-based MSMEs Through Roadshow

The Securities and Exchange Commission (SEC) recently concluded the second leg of its nationwide roadshow in Cebu City, aimed at promoting the capital market as a viable funding option for micro, small, and medium enterprises (MSMEs) based in Visayas. The initiative, which was attended by over a hundred onsite participants and 185 virtual participants, was part of the SEC’s effort to encourage MSMEs to consider the capital market for further growth and expansion.

In his keynote speech, SEC Commissioner Karlo S. Bello highlighted the importance of MSMEs to the national economy, noting that they account for 99.5% of the total businesses in the country, employ 63% of the local workforce, and contribute around 40% to the national GDP. The government’s recognition of MSMEs as the backbone of a resilient national economy has led to President Ferdinand R Marcos Jr.’s thrust to provide different financing options for small businesses.

One of the financing options presented during the roadshow was crowdfunding, which has become an accessible and convenient means for businesses to secure funds for expansion. Representatives from registered crowdfunding intermediaries such as SeedIn Technology, Inc., Investree Philippines, and Eastern Securities Development Corporation discussed the advantages of crowdfunding and how MSMEs and startups can tap their services. Participants were also given an opportunity to engage in personal consultations with the platforms’ officials during break-out sessions.

Aside from crowdfunding, the benefits of listing on the stock market for expanding one’s business were also discussed during the roadshow. Philippine Stock Exchange Inc. President Ramon S. Monzon and Investment and Capital Corporation of the Philippines President and CEO Valentino S. Bagatsing shared their insights on the matter. Homegrown property developer Cebu Landmasters also shared its journey toward conducting its P15-billion initial public offering in 2018.

The roadshow was led by the SEC Office for the Advancement of Strategic Investments in SMEs (OASIS), which was established to encourage SMEs to consider the capital market as a financing option. The SEC’s 888@88 goal, which aims to see a minimum of 888 companies accessing the capital market in time for the SEC’s 88th anniversary in 2024, is part of this effort.

The success of the roadshow in Cebu City and Davao will see the SEC’s monthly roadshow being brought to other areas in the country, including Cagayan de Oro, Zamboanga, Bacolod, Legazpi, Iloilo, Tarlac, Baguio, the CALABARZON region, and Metro Manila for the rest of the year.