Wednesday, August 04, 2021

Social enterprise legislation needed

DAVAO. Mindanao Social Entrepreneurs wants the government to come up with legislation that will identify social enterprises as non-profit with a business model. (Lyka Casamayor)

THE Mindanao Social Entrepreneurs is calling on the government to come up with a legislation that will categorize social enterprises as a non-profit with business model.

"The social enterprise in the Philippines doesn't have a legislation yet, wala pa tayong regulating body that actually defines its legal structure. Social enterprises could still be categorized as non-profit enterprises with a business model attached to it," Executive Director and co-founder of Virtualahan Ryan Gersava said during SM Connect media forum Friday, July 26, 2019.

"Unlike other countries like the United Kingdom and the United States, they have a clear legal structure. In the Philippines wala tayong ganyan so we still end up following the same registration process like any other businesses, still following the same tax regulation," he added.

Gersava said unlike other businesses, social enterprises are not necessarily into profit but social impact. However, in order to be sustainable in their various advocacies, there is still a need to earn a profit.

"You do not compromise the financial sustainability of the business, otherwise, you will end up in this whole cycle of charity which is the model that we are trying to get away from," he said.

The group currently has 20 active social enterprises that are working together this year to focus on the social problems specifically in Mindanao through social entrepreneurship.

Swito Designs Inc. principal architect Gloryrose Dy Metilla said the group will soon come up with policies that they may lobby to the government to further reach their goals.

Meanwhile, Liezel Salera of Gifting Life pointed out that Mindanao's social problems have a different context so there is still a need for the group to identify these problems and work together to create bigger impact to the society.


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