Tuesday, June 10, 2008 Lack of access to capital bugs entrepreneurs
MOST would-be entrepreneurs in the country still find it hard to find sources of capital.
This, even when a number of micro-finance institutions (MFIs) are already available to cater to start-up needs of entrepreneurs, said Ramon Lopez, executive director of the Philippine Center for Entrepreneurship (PCE).
At present, there are 2,000 MFIs in the country but Lopez said there is still a need for more to reach more beneficiaries.
During a news conference Friday on the Go Negosyo sa Cebu Entrepreneurship Conference, Lopez explained that the Go Negosyo team seeks out financial institutions in behalf of small and medium entrepreneurs.
MFIs, Lopez noted, are the ones who talk to the “entrepreneurial poor” on a daily basis as they understand the plight of entrepreneurs.
No collateral
Unlike banks, MFIs offer no-collateral loans with interest rates from 14 percent to 24 percent a year – still five percent less compared to banks.
Jonathan Aldeguer, chairman of the Go Negosyo sa Cebu, said that the mentality of some people has also affected how entrepreneurs start businesses.
“(Some) want to start big immediately,” he said. But he said there are those like Lita Urbina, who owns the Café Laguna and Lemon Grass restaurant, who started her food business with just P300.
Aldeguer also said that not many people know that there are government agencies that can be tapped by potential entrepreneurs in starting their businesses.
“There is really lack of knowledge,” he said.
That is why this year’s Go Negosyo seminar workshop in Cebu will focus more on giving “how-to” information to participants, said Aldeguer.
Opportunities
Compared to last year’s Go Negosyo seminar in Cebu, this year’s forum will be more focused on mind-setting, spotting opportunities, how to start the business and providing information on where to go for training.
The Go Negosyo Cebu network will also offer a mentorship program where start-up entrepreneurs can ask a mentor’s help to address a particular concern.
There will also be MFIs during the forum scheduled on June 20 at the Cebu International Convention Center.
The one-day program, which is considered as one of the highlights of this year’s Cebu Business Month celebration, is expected to draw a number of students, teachers, young professionals and start-up entrepreneurs.
Edward Gaisano, pre-sident of the Cebu Chamber of Commerce and Industry, said that with the chamber’s partnership with PCE, entrepreneurship in Cebu will be enhanced and taken to the next level. (DME)
