THE Securities and Exchange Commission (SEC) said it expects more micro, small, and medium enterprises (MSMEs) to tap the capital market for funding.
“The SEC transformed the capital market into a more accessible financing oasis for small businesses, as our year-long nationwide roadshow proved successful in attracting MSMEs and startups toward innovative fundraising options,” Emilio B. Aquino, SEC chairperson, said in a statement on Tuesday.
The corporate regulator has launched a year-long roadshow aiming to advance strategic investments for MSMEs and startups.
The SEC said that the initiative has successfully promoted capital markets as an accessible funding option for small businesses by also encouraging MSMEs to participate in crowdfunding, generating millions of funds.
Approximately 1,584 companies registered as issuers with licensed crowdfunding intermediaries, where 333 companies were able to raise P1.94 billion for 1,143 projects, it said.
For this year, a total of 146 companies have raised capital of about P427 million for 1,114 projects through crowdfunding, an activity of raising funds from a large number of investors.
Separately, the Department of Finance said the SEC’s initiative will open opportunities for growth as it allows MSMEs to tap prospective funders.
“I commend the SEC for their outstanding work in taking up the challenge of expanding our capital markets, making it more broad-based through digitalization and strengthened corporate governance. The roadshows allowed MSMEs to showcase their potential to prospective funders, opening them up to more opportunities for growth,” said Finance Secretary Benjamin E. Diokno in a statement.
In addition to crowdfunding, the SEC is also working on providing other financing options through the Philippine Stock Exchange (PSE), where it targets to have at least 888 companies venture into the capital market in 2024.
“The roadshow generated a total of 10 new leads for listing on the PSE, promising a healthy pipeline of capital-raising activities next year,” the SEC added. — Ashley Erika O. Jose
