MSME advocate urges entrepreneurs to start small
“SMALL is the new big.”
Carl Balita, chairman of the Quezon City chapter of the Philippine Chamber of Commerce and Industry (PCCI), cited this marketing trend during last week’s Social Entrepreneurship Conference at the Cebu City Marriott Hotel.
The biggest malls are setting up smaller units and brands have invested more in carts or kioks, said Balita, who is also the host of ABS-CBN’s RadyoNegosyo.
“Why create a mall when you can create a convenience store which gives you good revenue nonetheless? Potato Corner, a simple business that sold only fries, earned P1 billion in 2015,” said Balita.
He cited that Micro, Small and Medium Enterprises (MSMEs) make up 99 percent of all registered businesses in the country while 90 percent of this number is made up of micro enterprises.
He also said that around 88 percent of over five million jobs were created by micro and small businesses.
Starting out small is strategic for entrepreneurs, Balita said, but having a big vision that will serve as guide is equally important.
Balita explained that small means one is able to control various aspects of the business and gain more insights on how to make it big.
“If you start small, you’ll have lower risks to manage. You will not be afraid because you only have a small investment. You will be able to master the processes because you are just there,” said Balita.
This has been the trend in the Philippines and in the world, he said.
In the Asean community, particularly in the context of “glocalization,” this is evident in the market’s preference to buy products from a small village in the Philippines instead of buying from a multi-national factory, he said.
“I don’t think any sector will be sad seeing the poor become rich or increase their capacity to buy,” said Balita.
Around 26 million Filipinos still live below poverty line, with figures unchanged since 2013.
There may have been positive developments in the economy, but these did not quite have an impact on the marginalized sector.
“We need to empower the poor. Empowering them, from my perspective, is not about dole-outs. It’s not about giving them fish, but teaching them how to fish. It can only be done if you engage them in business,” he emphasized.
As for the future of the MSMEs in the incoming administration, Balita, who was among the business leaders who met with President-elect Rodrigo Duterte and his Cabinet in an economic consultation in Davao City last week, said he was optimistic of the sector’s future especially since the economic cluster members of Duterte’s Cabinet have an observable inclination to help small businesses.
“(Incoming Trade Secretary) Ramon Lopez, as quoted on my show, got two marching orders from the President.
That is to help the micro and small and to make sure there is ease in doing business,” he said.
Balita said that the second order is actually a first, since micro and small businesses are the ones who have difficulty starting out.
He said that this gives small entrepreneurs hope for growth and for those who intend to start a business, a motivation to start somewhere.
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