The issue of poverty is deeply interconnected with low wages, and addressing this problem has posed a challenge for each administration. It is a delicate balance – on one hand, individuals cannot thrive if they are barely making ends meet, but on the other hand, businesses, especially small and medium-sized enterprises (SMEs), struggle to operate in the face of rising costs. This delicate balance poses a threat to the Philippines’ goal of achieving upper-middle-income status in the near future.
Dependence solely on mandated wage increases may not be the sole solution, as it would imply that Filipino workers have minimal control over their destinies. However, there are alternative paths, such as upskilling and entrepreneurship.
The Jobs Group of the Private Sector Advisory Council focuses on upskilling workers, thereby providing them with a stronger position to negotiate higher wages. By acquiring new skills, workers can utilize them for better-paying jobs or even use them to initiate their own businesses. For instance, janitors can acquire driving skills through government training programs, and busboys can develop cooking skills. Even experience in practical jobs like gardening and waitering can be used to delve into entrepreneurial endeavors.
Our non-profit organization, Go Negosyo, has been involved in public entrepreneurship mentoring events, where we have observed individuals succeeding by capitalizing on their other talents, such as online selling and content creation. Some have transformed practical skills, such as cooking and event organizing, into prosperous businesses. Nonetheless, it is important to acknowledge that entrepreneurship is demanding and necessitates access to capital, mentorship, and markets for success.
Thankfully, initiatives like the 3M on Wheels, supported by the First Lady’s LAB for All program, aim to make these resources available to aspiring entrepreneurs, especially in smaller communities across the country. Additionally, creating connections between the private sector and key growth areas like agriculture, tourism, and digital technology can further support worker upskilling and MSME development.
As we consider the challenge of accessing capital, we are heartened by the potential of digital technology to increase accessibility to loans for MSMEs, ultimately enabling them to realize their full potential as vital contributors to the economy. This is crucial, as MSMEs constitute the vast majority of enterprises in the Philippines and account for more than half of the jobs created.
Upon reflection on the ASEAN region, the significance of the MSME sector becomes even more evident. These small and medium-sized businesses play a pivotal role in each economy, supporting the livelihoods of millions of people. With this in mind, our efforts in creating an enabling environment for workers and entrepreneurs become even more imperative.
Ultimately, our aspiration is for every worker to have the opportunity to enhance their circumstances through education and entrepreneurship. By equipping them with the necessary skills and resources, we can work towards a future where individuals have the power to uplift themselves and contribute to the growth and development of the country.