SMALL and medium enterprises (SME) with different stakeholders in Mindanao underscored the importance of a roadmap for businesses in mitigating the impact of disasters.
In a Mindanao Business Forum on SME Development and Disaster Resilience in the Philippines held here on Tuesday, November 22, participants were apprised on how to prepare for and recover from disasters with the institutionalization of mechanisms that would link the government and the private sector in helping the SMEs.
The Department of Trade and Industry (DTI) said that the participants to the forum would gain awareness, appreciation and understanding of business continuity management concepts, best practices and requirements; related business management, approach to risk assessment and contingency planning; and develop an action plan for strengthening disaster resilience among SMEs in Mindanao.
Zenaida Maglaya, DTI undersecretary, said that SMEs remain integral to the Philippines’ economic growth and the bulk of all business establishments combined. These are also the most vulnerable when disasters occur, said Maglaya.
She said that DTI has put in place the Enterprise Rehabilitation Financing Program (ERFP) through the Small Business Corporation, such that terms and condition loans are relaxed, waived audited financial statement and administrative fees, subsidized interest rates, and longer grace period.
DTI noted that as of October 2015, P417 million worth of loans have been released to SME borrowers mostly in Visayas, particularly after the onslaught of Tropical Storm Haiyan or Typhoon Yolanda.
Maglaya said that DTI has its Business Assistance Centers (BACs), especially in disaster prone provinces. The BACs are intended to speed up the rehabilitation efforts for the industry and trade sector, provide immediate support services like livelihood projects and skills training, and improve relations with the local government units (LGUs) and the efficiency of addressing the needs of the business sector.
She said that despite government interventions intended to help entrepreneurs hit by disasters, government instrumentalities concerned are primarily focused on those businesses that are DTI-registered.
“There are about 5,000 registered SMEs in the country and that many are not registered with the DTI that makes those unregistered hard to verify in times of disaster because, among other reasons, loss of business documents, and that would take some time for the government to respond to their needs.” Maglaya said.
The forum was designed in line with the country’s Environmental Policies and Legislations to develop a framework and roll out resources that will enable the National Government, LGUs and other stakeholders to build communities that can survive disasters.