CEBU CITY, Cebu, March 17 (PIA) -- The Securities and Exchange Commission (SEC), along with the various licensed crowdfunding intermediaries, conducted a roadshow on capital formation for micro, small, and medium enterprises (MSMEs) and start-ups in Cebu City on March 17.
The activity highlighted the importance of capital markets and provided opportunities that seek to help MSMEs and start-ups raise funds for business expansion through the use of crowdfunding as a financing option.
The process of crowdfunding enables start-ups and other businesses to source capital from a large number of individuals through online platforms where they offer equity or rewards in exchange for an individual's contribution.
In his keynote speech, SEC Commissioner Karlo Bello recognized the need to broaden the financing instruments available for MSMEs.
"This government recognizes that MSMEs are the backbone of a resilient economy due to their nature of stimulating domestic demand through job creation, innovation, and competition," said Bello.
"This is why we are here today, together with our industry partners, and we wish to present to you the different ways you can acquire financing through the capital market in order to jumpstart your business or expand your operations," the SEC commissioner added.
The MSMEs network accounts for 99.5% of the total businesses in the country, where it hires 63% of the local workforce, constitutes 25% of the country’s total exports, and contributes around 40% to the national gross domestic product (GDP).
Aside from discussing capital formation for businesses, the activity also tackled the initial public offering (IPO) process and the benefits it provided to the companies and businesses who entered into the IPO.
The said topic was presented by Philippine Stock Exchange (PSE) President Ramon Monzon.
The event was also attended by SEC Director Vicente Graciano Felizmenio Jr., Cebu City Mayor Michael Rama, and Cebu Provincial Board Member Glenn Soco.
The Cebu-leg SEC Roadshow is part of a series of roadshows on capital formation conducted nationwide in accordance with Pres. Ferdinand Marcos Jr.’s thrust to provide different financing options for MSMEs and harness their potential contribution to the nation’s economy. (RGC/PIA7 Cebu)
