Economic slowdown forces SMEs to close shop

DAVAO CITY, December 5 - - A business leader has lamented that many Small and Medium Enterprises (SME) here have closed shop, badly battered by the economic slowdown being felt locally and around the country.
Lenny Castillo, Davao City Chamber of Commerce and Industry, Inc. vice president for SME, admitted, "most SMEs that have shut down were engaged in the food processing industry."

Castillo said at least 99 percent of Davao City's businesses were SME s that operated on a small capital and had little access to financing.

"The food business is the easiest business to start," she said. But many have folded up because of the slow market, she added.
To avoid this, SMEs should be given extra support because the sector has been the backbone of the country's economy. SMEs can be found all over the country and they comprise most of the country's businesses.

Meanwhile, an official of the Small Business Guarantee Fund Corp. (SBGFC) said the agency has opened its loan windows to provide SMEs in Soughern Mindanao easier and greater access to financing programs.
SBGFC chairperson Mel Alonzo said the agency has also coordinated with the Bangko Sentral ng Pilipinas to facilitate the training of bank account officers on SME financing so that the flow of loans to the SMEs would be more efficient. (PNA/MC)