A sari-sari store around the corner, eateries lining up on the side of a street, 24/7 community laundry shop, or a digital marketing start-up agency are just a few examples of MSMEs or micro, small, and medium-sized enterprises that play a crucial role in providing employment and driving economic growth.
Data from the Philippine Statistics Authority (PSA) showed that for 2023, 99.63% of the total recorded business enterprises operating in the country are MSMEs.
Angela started her baking business both as a side-hustle and as an outlet for her love for desserts, initially offering her baked goods to family and colleagues. When the pandemic shifted how people do business that led to the rise of e-commerce, Angela also explored using social media to widen the reach of her business.
“Mahirap na umasa lang sa buwan-buwan na sahod. Kailangan maging madiskarte dahil sa pangangailangan ng pamilya, kaya sumubok ako sa pag-nenegosyo. Naisip ko dahil mahilig naman ako mag-bake, bakit ‘di ko subukan? Ino-offer ko lang nung umpisa sa mga kamag-anak, kakilala, at mga katrabaho, hanggang sa nagpo-post na rin ako sa social media. Ngayon ay nag-iisip ako na mapalago pa lalo ang negosyo (It’s hard to rely only on the monthly salary. You have to be resourceful because of the needs of the family, that’s why I decided to try starting a business. Since I love baking, I thought, why not give it a shot? At first, I offered my baked goods to family, friends, and co-workers. Then, I started posting about it on social media. Now, I’m thinking of growing the business even more),” Angela shared of her business journey, thus far.
For business owners like Angela, having a savings account is important if they want to grow their business. First, saving in banks provides business owners access to credit, which will come in handy if they want to apply for a loan to finance their business operations or plans for expansion. Second, it gives them access to bank products and tools that will make transactions with suppliers and customers easier. More importantly, it ensures business owners’ hard-earned profits are secured in banks.
Adding another layer of security and protection to bank deposits is deposit insurance provided by the Philippine Deposit Insurance Corporation (PDIC). The PDIC insures deposits in banks licensed to operate by the Bangko Sentral ng Pilipinas (BSP).
Many MSMEs and start-ups, including Angela, have gravitated towards digital transactions and even mobile apps, which have become increasingly popular in the country due to factors that make banking more convenient and rewarding.
“At the end of each month, sinisiguro ko na may naitatabi rin ako sa bangko. Ngayon ay meron akong dalawang savings account, isa sa traditional bank at isa sa digital bank. Unti-unti kong binubuo ang capital para sa pangarap na mapalaki pa ang aking baking business. Sa pag-iipon sa bangko, panatag ako na secured ang negosyo goals ko. (At the end of each month, I make sure to set aside some savings in the bank. Right now, I maintain two savings accounts, one in a traditional bank and another in a digital bank. Little by little, I’m saving up the capital I need to grow my baking business. Saving in the bank gives me peace of mind, knowing my business goals are secure),” Angela said with optimism.
The new maximum deposit insurance coverage (MDIC) of P1 million took effect on March 15, 2025. This upward adjustment in the MDIC since it was last set to P500,000 in 2009, offers greater protection for bank deposits and grants individuals and business owners, like Angela, more peace of mind and confidence that their hard-earned deposits in banks are safe and secure.
To learn more about the new MDIC, you may visit www.pdic.gov.ph/MDIC.
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.
