Manila: A new credit registry for micro, small, and medium enterprises (MSMEs) is underway to help small entrepreneurs secure financing from a broader pool of lenders. Officials of the Department of Trade and Industry (DTI) and private credit bureau Advance.CBP have signed a memorandum of agreement (MOA) to facilitate the establishment of this registry for businesses registered with DTI Negosyo Centers.
According to Philippines News Agency, Advance.CBP country manager Michelle Ann Chan stated that the MOA allows the private firm to access the necessary entrepreneurs' data through the Negosyo Centers. Chan emphasized that Advance.CBP already has the technology, framework, and implementation plan ready to launch the program, which is designed to be straightforward and accessible for MSMEs.
The program's first phase involves the introduction of a secure digital platform where Negosyo Center staff will input small business details. The system will integrate Credit Information Corporation (CIC) and alternative data to generate predictive credit scores, enhancing MSMEs' visibility to credit providers.
Chan highlighted the program's goal to bridge the information gap that often prevents MSMEs from accessing affordable financing. By increasing the visibility, verifiability, and credit-assessability of these enterprises, the initiative aims to support the broader national agenda of empowering entrepreneurs, expanding economic opportunities, and accelerating inclusive growth across the Philippines.
MSMEs represent 99.6 percent of businesses in the Philippines and employ over 60 percent of the workforce. Despite this, MSMEs contribute only around 40 percent to the country's annual economic output, prompting a government push to help these businesses expand their operations and boost their contribution to the gross domestic product.
Chan noted that the success of the initiative will be assessed not only by the number of businesses onboarded but also by the quality, completeness, and usability of the information that can help MSMEs become more visible to lenders and other ecosystem participants. Given the vast number of MSMEs and DTI's extensive reach, there is significant long-term potential for the registry to become a crucial component of the Philippines' financial inclusion and enterprise development infrastructure.
