For substantial and sustained economic growth, the Philippines has to meet the demand of its manufacturing and production sectors for energy. However, because of the worsening climate emergency, alternate energy options, like renewable energy, should be more utilized while easing the demand for fossil fuel sources.
The country’s micro, small and medium enterprises (MSMEs), for instance, need support for their energy needs, but there is much to be desired when it comes to the energy infrastructure and pricing. Limited access to finance, insecure market conditions, and escalating energy expenses greatly affect the long-term profitability, competitiveness, and sustainability of the MSME sector.
An MSME in the Philippines is defined as any business activity or enterprise engaged in industry, agri-business and/or services that have: (1) an asset size (less land) of up to PhP100 million; and (2) an employment size with less than 200 employees.
Based on the 2020 List of Establishments of the Philippine Statistics Authority (PSA), there is a recorded total of 957,620 business enterprises operating in the country. Of these, 952,969 (99.51%) are MSMEs and 4,651 (0.49%) are large enterprises. Micro enterprises constitute 88.77% (850,127) of total MSME establishments, followed by small enterprises at 10.25% (98,126) and medium enterprises at 0.49% (4,716).
Majority of the MSMEs are in the National Capital Region (NCR) with 201,123 (21.10%) business establishments, Region 4-A (CALABARZON) with 139,363 (14.62%), Region 3 (Central Luzon) with 111,262 (11.68%), Region 7 (Central Visayas) with 65,682 (6.89%), and Region 6 (Western Visayas) with 57,469 (6.03%). These top five (5) locations accounted for about 60.33% of the total number of MSME establishments in the country. Regional concentration of MSMEs is largely associated with economic activity and population size.
Together, these MSMEs generated a total of 5,380,815 jobs or a massive 62.66% of the country’s total employment. The micro-enterprises employ the biggest number (29.38%) closely followed by small enterprises (25.78%) while medium enterprises were far behind at 7.50%.
On the other hand, large enterprises generated a total of 3,206,011 jobs or 37.34% of the country’s overall employment. The top five (5) industry sectors according to the number of MSMEs in 2020 were:
(1)Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (445,386);
(2) Accommodation and Food Service Activities (134,046);
(3) Manufacturing (110,916);
(4) Other Service Activities (62,376); and (5) Financial and Insurance Activities (45,558). These industries accounted for about 83.77% of the total number of MSME establishments.
Imagine if all these MSMEs made the transition to RE and solar energy – they can lower their operating costs by cutting their electricity bills which often comprise the largest part of their expenditures. They can then use their savings to expand their business and hire more employees. Encouraging MSMEs to make the shift to solar energy will also contribute to the clean energy transition.
WeGen is proud of the solar PV system it built for Bluefields Hypermart in Roosevelt St., Sta. Barbara, Iloilo. The 39.20 kWp system was installed in mid-2021 and has 140 panels of 280 watts each.
Bluefields Enterprises Inc. (BFEI) was established in the 1980s first as a muscovado sugar business in Brgy. Mandog, Maasin, Iloilo. In 1987, BFEI became a corporation, and part of it was a sari-sari store located on the ground floor of the ancestral home of the family of the owners headed by Dr. Vincent Pineda Perlas . The sari-sari store started with five (5) employees, and eventually, in 1990, the Perlas family established Bluefields Trading Post., Inc. (BFTPI), with retailing as its core business. By the year 2000, the Sta. Barbara branch of Bluefields was built.
There are now three Bluefields grocery outlets and the company takes pride in being a best-value supermarket with an automated merchandise and payroll system. One of its business strategies is good service: listen to customers’ needs and develop innovative solutions to meet those needs. Bluefields now has over 150 employees and still growing.
Another MSME that WeGen helped to make the clean energy transition is the Taytay sa Kauswagan, Inc. (TSKI) - Head Office in Malia-o, Pavia, Iloilo. WeGen installed TSKI’s 62.40 kWp system installed earlier in 2021. The TSKI is a non-stock, non-profit Christian Development Organization. Their goal is to contribute to “human and community transformation” through microfinance and other related services.
Through its programs, STKI provides opportunities for low-income households to expand their livelihood activities, increase their incomes and provide employment opportunities to others and take an active role in assisting family-owned and operated micro-enterprises . They also provide Business Development Services(BDS) and hold Community and Enterprise Development(CED) activities with their client-beneficiaries.
WeGen is glad to be part of TSKI’s social good agenda by helping the institution bring down its carbon footprint and cut its electricity costs so it can have more funds to use for its programs and services.WeGen aims to reach out to more MSMEs to help them make the move to solar energy. Businesses with more stable power supplies and are unburdened by increasing utility costs have a better chance of succeeding and increasing their profits. They also become partners in the campaign for a clean energy transition and against climate change! #