A RESOLUTION that pushes for more supermarket space for products from micro, small and medium enterprises (MSMEs) was recently sent to the Cebu City Government.
The Micro, Small and Medium Enterprise Development Council (MSMEDC) drafted Resolution 2013-003 during a meeting last Feb. 22, in cooperation with the Filipino-Cebuano Business Club (FCBI) and the Department of Trade and Industry (DTI).
The group invoked the general welfare clause of the Local Government Code, which asks all local government units (LGUs) to enhance economic prosperity and social justice, promote full employment for its residents, maintain peace and order and attend to other development concerns.
The resolution proposes that LGUs recognize the needs of MSMEs and promote entrepreneurship. It also asks LGUs to ensure these entrepreneurs’ continued viability and growth by promoting linkages between large and small ventures and by encouraging common service facilities.
Limited shelf space
FCBI president Rey Calooy, in a recent phone interview, said that MSME products typically occupy only 10 to 20 percent of mall spaces. Imported products or those of larger Philippine companies take up most of the space.
DTI-Cebu business development division chief Elias Tecson, in a separate interview, brought up the tendency of influential brands to grab and buy the spots of MSMEs in supermarkets, if the latter products sell more.
“It’s a threat to large actors when MSMEs pick up consumers,” Tecson said.
“Supermarkets and malls are good venues to sell products. However, the limited access to these sites narrows down the potential of MSMEs, constrains the business within the parameters of their small audience, and eventually, hinders employment opportunities,” Calooy explained.
Listing fee
Although most MSMEs display their wares in public markets, Calooy said this option is becoming inconvenient and inefficient because these spaces tend to be cluttered.
Calooy, who was tapped as a resource person on the issue, said the resolution is among the efforts of the MSME support system to help local producers and carriers of homegrown products and services establish their identities in supermarkets and malls.
The resolution also tackled the allegedly indiscriminate imposition of a “listing fee” for MSME displays in supermarkets.
“Let’s say a medium enterprise wants to exhibit 100 sachets of shampoo and a single item has a listing fee of P5,000 or P10,000 in every mall outlet. Now, you do the math,” Calooy said.
Tecson said the DTI has ongoing initiatives in support of the resolution, which remains pending.