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Friday, September 27, 2019

The Challenges on becoming more Eco-friendly

From the recent webinar I attended, Globescan released its result on the factors that prohibit us from living a more sustainable life style and they boiled it down to 2 reasons: high cost and lack of support from government and businesses [1].

The Gap: Intention vs. Action

The results came from surveying 25,000 people across 25 countries.  Only 54% of those say that living in a way that's good for the environment and the community is a priority, and only 37% revealed that they are "mostly" actively living that way. The study shows that there is a gap between intent and action.  All good faith somehow have gone out of the window when come buying time.  Even I can attest to this myself.  When comparing organic from chemical laden produce, I tend to buy the usual produce as the organic ones are 2 times if not 3 times more expensive.  A huge number of items in the grocery stores and convenience stores are packed with plastic.  When left with fewer options it is easier to just go with whatever is available. And I believe this is also the predicament of many people.

Challenges in all Levels

The unwillingness of individuals to take on a more eco friendly lifestyle, the inability of large companies to shift quickly to a more eco-friendly way of packing and processing their products and the difficulty of small entrepreneurs to compete with larger brands in the grocery or supermarket business game like shelving location, bulk orders as well as brand familiarity are the gridlocks for change.   I believe good intention to switch to better system is there but the gap between between intention and implementation in all levels still exists and is undeniable.

Possible Solutions

Research of Michael Howes, an associate professor in Environmental studies in Griffith University shows that the recurring problems on sustainable initiatives are because of economic, political and communication.  And can only be fixed if the government will give financial incentives for organization switching to become more eco friendly, giving a transition pathway to industries which have most damage to environment, and lastly that the leaders of all sectors need to understand and be educated on the urgency of climate change and the possibility of an honest sustainable development.[2]

Call for Leadership

Noticeably, there is a huge role that the government plays in providing solutions for such problems. Only when leaders become more open to conversations on solving problems on climate change can the healing of this world starts.  When legislations and laws are placed to make these sustainable transitions possible and easier in all levels, then the gap between intention and action can be bridged faster.





[1] Globescan 2019. High Cost and Lack of support are key barriers to more healthy and sustainable living. Globescan accessed 30 September 2019. <https://globescan.com/healthy-sustainable-living-report-2019/>
[2] Howes, Nelson 2017. After 25 years of trying, why aren't we environmentally stable yet?, The Conversation, accessessed 25 September 2019 <https://theconversation.com/after-25-years-of-trying-why-arent-we-environmentally-sustainable-yet-73911>

Wednesday, September 25, 2019

Micro, Small and Medium Enterprises in the Philippines: Overview and Updates

Definition

Small to medium enterprises are independent, profit-seeking businesses earning revenue through selling a product/and or services.  To gauge whether or not a business falls under SMEs depends on these categories:  number of employees, annual income, industry [1].

US Categories

In the US, there is no clear definition for the criteria as it varies per industry and within industry.  For example, what's considered SMEs is when a manufacturing company has less than 500 employees, while a trading company has less than 100 employees.  In the mining industry, what's considered an SMEs are a Nickel ore mining business with 1,500 employees or less, and a Silver ore mining company with only 250 employees.

European Categories

However in Europe, a company with a headcount of 250 or more and with a revenue of 43m euro is considered medium-sized.   Employee head count with a tipping numbers of 250, 50 and 10 would account to the classification of a company whether it falls under Micro, small or medium-sized.



Comparison of the European Union (EU) SME Definitions
Company CategoryStaff headcountTurnover or Balance sheet total
Medium-sized< 250≤ € 50 m≤ € 43 m
Small< 50≤ € 10 m≤ € 10 m
Micro< 10≤ € 2 m≤ € 2 m
*From the European Commission Definition


Philippine Categories

In the Philippines, the definition is ruled under Republic Act no. 9501 base on the Magna Carta for MSME, which states that an MSME is 'any business activity or enterprise engaged in industry, agri-business and/or services that has: (1) an asset size (less land) of up to P100m; and (2) an employment size with less than 200 employees.
Philippines SME Classification
Company CategoryStaff headcountTotal Asset
Medium-sized100-199P 15,000,001 - P 100m
Small10-99P 3,000,001- P 15m
Micro1-9≤ P 3 m
MSME's in the Philippines from 2010 vs. 2017

In 2010, Philippine Statistics Authority (PSA) listed over 777,687 registered establishments which climbed 18.9% come 2017 with 924,721.  Still eating the huge chunk of pie are the MSME's accounting for 99.56%.  Out of the 3, Micro enterprises still has a bigger slice with 89.63%, shy of 1.67% from 2010's 91.63%. Small-sized enterprises have improved with 26,433 added over the past 7 years.[2]


2010 
2017 
2010 
2017 

                  % 
                       Number 
Micro 
91.3 
89.63 
709,899 
828,436 
Small 
7.9 
9.56 
61,979 
88,412 
Medium 
0.4 
0.41 
2,786 
3,829 
Large 
0.4 
0.44 
3,023 
4,044 
TOTAL 
100%
100%
777,687 
924,721 


RP Enterprises (2010): 777,687; MSMEs = 774,664


RP Enterprises (2017):  924,721; MSMEs = 920,677


Steady growth of MSMEs

From 2010 with 774,664 to 896,839 in 2015, then 911,768 in 2016, and finally 920,677 in 2017, there's an undeniable increase in trend happening over the years [3].

This may be due to the growing economy of the Philippines, the boost in social media, and changing interests of consumers. [4]

Enterprises in terms of Value Added

DTI's latest available data on the value added was way back in 2006 showing that large money are funneled down to the large enterprises while only around 30% was shared among MSME, despite the probability that it was from a huge number of business establishments which employed the majority of the filipinos.



Despite its number, the big corporations still monopolize a huge chunk of the market and have remained strong economic drivers in many industries.

With this in illumination, how then can MSMEs get more market share when it is up against huge corporations?  What opportunities are there to tap?




1 - Ward, Susan. 2019. SME Definition. SME Definition Vary from Country to Country.  The balance small business, accessed 26 September 2019, 
<https://www.thebalancesmb.com/sme-small-to-medium-enterprise-definition-2947962>
2 - MSME Statistics 2017 , accessed 25 September 2019, <https://www.dti.gov.ph/business/msmes/msme-resources/msme-statistics>
3 - www.FOI.GOV.PH
4 - Moneymax. 2019. 15 Small Ideas in the Philippines you can start even with low capital, accessed 25 September 2019, <https://www.moneymax.ph/personal-finance/articles/small-business-ideas-philippines/>
© sustainable matcha
Maira Gall