SEC Hosts Successful Roadshow in La Union to Empower MSMEs and Startups

City of San Fernando – The Securities and Exchange Commission (SEC) proudly completed its latest leg of the nationwide Roadshow on Capital Formation for micro, small, and medium enterprises (MSMEs) and startups at the La Union Convention Center on October 10, 2024. This initiative aims to introduce the capital market as an accessible funding source for business expansion.

The event drew significant participation, with local business executives, government representatives, and entrepreneurs eager to learn about alternative financing options. Attendees explored various funding avenues, including crowdfunding, which has emerged as a vital resource for startups and MSMEs.

SEC Commissioner Javey Paul Francisco emphasized the need to expand the financing instruments available to MSMEs, stating, “MSMEs are the backbone of a resilient national economy, as they drive domestic demand through job creation, innovation, and competition. MSMEs continue to experience credit constraints, tedious documentation, high interest rates, and mandatory collateral requirements.”

The Philippine Stock Exchange (PSE) and the Investment and Capital Corporation of the Philippines (ICCP) also played pivotal roles in the event, highlighting the benefits of initial public offerings (IPOs) as a means for enterprises to raise capital and expand their operations. Representatives from both organizations provided insights on how MSMEs can navigate the IPO process, detailing the steps required to list on the PSE and the advantages of becoming a publicly traded company.

Governor Raphaelle Veronica “Rafy” Ortega David expressed her gratitude for the SEC’s efforts to bring this initiative to La Union. She highlighted the significance of accessible funding options as businesses continue to expand and grow.

The roadshow featured presentations from the Eastern Securities Development Corporation – Round One. Ms. Charmaine Co, Marketing Head, provided insights into the benefits of crowdfunding and shared success stories from businesses that have effectively utilized these platforms to secure capital.

Participants also engaged in interactive breakout sessions, where they had the opportunity to consult with SEC, Round One, PSE, and ICCP about tailored financing solutions for their ventures.

The SEC has witnessed a surge in the number of businesses leveraging crowdfunding and IPOs as means to secure funding, with 744 companies successfully tapping the capital market since the first crowdfunding license was approved by the SEC in December 2020. This growing trend underscores the potential of the capital market to support the development of MSMEs and startups across the Philippines.

This roadshow in La Union is part of the SEC’s ongoing commitment to encouraging small enterprises to explore the capital market as a viable financing option through its Office for the Advancement of Strategic Investments in SMEs (OASIS). (PR)