Filipino entrepreneurs remain confident that the country’s economic environment would improve in the next six months.
In the Philippine release of the recent Global Entrepreneur Indicator (GEI) by the local chapter of the Entrepreneurs’ Organization (EO), 60 percent of business owners said they expect a better operating environment, while 40 percent think it would stay the same. This is a stark difference versus the average global sentiment of 33.24-percent improvement, 2.72-percent deterioration, and 61.80-percent continuation of the status quo.
The survey also said that 73.33 percent of local businesses reported a favorable business environment while 93.33 percent predict it to be better in next six months.
The GEI, released globally every year for the last five years, uses five indicators such as job creation, outlook, employment, debt and revenues to forecast global trends. It reflects key figures from 2,800 members of the EO, mostly small and medium enterprises (SMEs) across 46 countries.
The data in the Philippine study was based on the responses of local chapter members.
Opportunities
Data from the Philippine Institute for Development Studies and the Trade department said SMEs–which account for 99.6 percent of total registered enterprises, currently contribute 35 percent to the country’s gross domestic product.
Among other SME merits include the stimulation of local demand through job creation, competition and innovation.
At the backdrop of the Asean economic integration, which takes effect in 2015, SMEs are still faced with challenges such as access to finance and information.
To further the growth of the sector, the 2011 to 2016 micro, small and medium enterprise development plan indicated a target of increasing its contribution to 40 percent gross value added through government support in terms of competitiveness and productivity.//
