MSME Overview and Support Programs

Effective access to a wide array of financial services for everyone.

Lack of access to financial services.

Financial products designed for low-income individuals and small businesses

Organization that gives information on borrowers to lenders.

Percentage of employed and unemployed adults aged 25 and over.

Percentage of adults with college degrees and those who did not pursue college degrees.

Percentage of adults categorized as upper-class or lower-class.

Lack of credit access, poverty traps, and national economic crisis that result from limited financial options.

Micro, Small, and Medium Enterprises are businesses categorized by size.

MSMEs are categorized by their revenue or number of employees: Micro (up to 3 million), Small (3,000,001-15,000,000), and Medium (15,000,001 - 100 million).

MSMEs account for a significant portion of the workforce, employing a large percentage of people in the labor force.

MSMEs contribute significantly to the country's total added value.

Obstacles facing MSMEs can be non-financial, such as a poor business environment or lack of access to markets, or financial, such as difficulty accessing funds.

Laws like R.A 9501 and R.A 6977 aim to support MSMEs by creating special programs and lending mandates for MSMEs.

Funding programs like P3 provide alternative financing options for micro-enterprises that might not have access to traditional credit.

Programs like the SME Roving Academy and Mentor Me enhance the competitiveness and capacity of MSMEs.

Microfinance provides financial services and support to low-income individuals and entrepreneurs.

Microfinance has roots in the 18th century, with the Irish Loan Fund, and a modern form emerged in the 1970s.

A famous microfinance institution founded by Muhammad Yunus in Bangladesh in 1976.

Founder of Grameen Bank and a pioneer of microfinance.

To improve the financial and social circumstances of poor communities by offering small loans for business and entrepreneurs.

Individual entrepreneurship (relationship-based banking) and group-based loan applications are two key models.

Inclusion in financial systems, business opportunities, lower interest rates, self-employment, and community development.

Muhammad Yunus and Grameen Bank jointly received the 2006 Nobel Peace Prize for their microfinance work.

Providing financial services to people who are excluded from traditional banking systems.

Peer groups where members receive loans and make regular payments to each other.

Microfinance institutions provide a range of services, including credit facilities, savings accounts, investments, money transfer, remittance, and insurance.

Directed Credit Programs (DCP) failed to reach target clientele due to corruption, repayment issues, and a lack of effectiveness in reaching the intended beneficiaries.

Some of the key microfinance companies include Bank Rakyat Indonesia, BRAC, Grameen Bank, Kiva, and Give.

Microfinance lending can be done individually or through solidarity groups, which are peer-group lending schemes.

Microfinance services can be accessed through rural banks, thrift institutions, commercial banks, NGOs, and cooperatives.

Small loans offered to low-income individuals and small businesses who often lack access to traditional banking services.

Involves a group of borrowers who jointly apply for a loan. The group members are responsible for each other's repayment, which ensures financial commitment.

Provides credit to a single borrower without requiring other group members to act as guarantors.

Organizations that provide microfinance services, aiming to achieve financial self-sufficiency for borrowers. They focus on developing internal financial management skills within the community.

The use of technology to enhance financial services, offering increased accessibility, speed, and efficiency.

Organizations that specialize in providing microfinance services to individuals and small businesses.

The number of microfinance institutions and customers has significantly increased in recent years, indicating the growing demand for microfinance services.

A system that records ownership and encumbrances on movable assets, like vehicles or equipment, making them acceptable as collateral for loans.

The ability of an individual to manage their finances, handle unexpected expenses, and plan for the future.

A financially healthy individual balances income and expenses, builds savings, manages debt responsibly, plans for the future, and recovers well from financial shocks.

A movable collateral registry allows for more secure lending by enabling movable assets to serve as collateral for loans. This increases access to credit for individuals and businesses.

A bank established in the Philippines in 1997 offering various financial services like deposits, loans, and treasury products.

Financial inclusion leads to increased access to financial services, better financial planning, opportunities for wealth creation, and improved economic gains.