BSP, Citi and MCPI join hands anew in support of microfinance
Friday, 27 May 2011 – Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco and Citi Country Officer for the Philippines Sanjiv Vohra led today’s launching ceremonies of the annual Citi Microentrepreneur of the Year (MOTY) Awards held at the Executive Business Center of BSP.
2011 Citi Microentrepreneur of the Year Awards launched
Tetangco and Vohra both serve as co-chairpersons of the MOTY National Selection Committee that determine the winners. Other members include industry and community leaders such as former Monetary Board member Antonino Alindogan, Jr., Ayala Corporation President and COO Fernando Zobel de Ayala, RFM Corporation President and CEO Jose Concepcion III, GMA Network Chairman Atty. Felipe Gozon, Phil. Daily Inquirer chairperson Marixi Prieto, Entrepreneurs School of Asia president Vivienne Tan, and Ateneo de Manila University Professor Dr. Darwin Yu.
According to Governor Tetangco: “This annual Awards Program, which brings together MFIs and their clients, a microfinance network like the Microfinance Council of the Philippines, headed by Ms. Mila Mercado-Bunker, an international bank like Citibank represented here by Mr. Sanjiv Vohra, and a regulator like the Bangko Sentral, to honor and celebrate the success of microentrepreneurs around the country is another success story by itself, spawned and sustained by a vibrant and dynamic Philippine microfinance sector.”
Launched in celebration of Citi’s centennial year in the country, MOTY has since witnessed the development of the microfinance industry in the Philippines. Vohra, who also spoke at the launch ceremonies, said: “We are proud to have observed significant changes since we launched in 2002. Today, the microfinance sector has 200 banks currently providing microfinance services to over 900,000 clients with P6.5 billion in loans outstanding and P3 billion in savings. In addition, there are over 1,100 cooperatives as well as other NGOs engaged in microfinance activities.”
“These figures tell us the following: first, that indeed microfinance can be effectively implemented within a formal and prudently regulated environment; and second, that sustainability and profitability can be appropriately balanced with social responsibility. In other words, we have proven that small clients become good clients… given suitable products and services,” related Tetangco.
Vohra also disclosed that Citi is one of the world’s largest corporate donors to the microfinance sector. Over the past 11 years, the Citi Foundation has invested more than US$80 million in funding to support 365 microfinance programs in 60 countries.
MOTY focuses on the achievements of microentrepreneurs who have set up businesses that are now providing a reliable source of income for their families through the Masikap Awards. The asset size of the microenterprise in this category must be below P300,000. Under this category, one National Awardee gets P200,000, while three Island Group Awardees (one each for Luzon, Visayas and Mindanao) receive P100,000 each.
The Maunlad Awards, on the other hand, recognize enterprising individuals who have grown their businesses and are now providing employment to others outside their family circle. The asset size of the microenterprise in this category must be between P300,000 to P1 million. As with the Masikap category, one National Awardee gets P200,000, while three Island Group Awardees receive P100,000 each.
Aside from the above prizes, the 2011 awardees will each receive life and health insurance coverage for three years, and will also receive training on entrepreneurship and financial literacy. In recognition of the important role of the microfinance institutions (MFI) and their loan officers in the success of the microentreprenuers, the MFIs and the loan officers serving the winners each receive cash incentives worth P10,000.
Citi has recognized more than 70 winners over the past eight runs of the MOTY Awards, a number of which have dramatically grown their businesses as indicated by their sales, profits, the value of their assets and the like. Among the most impressive performers is 2006 Maunlad awardee Jennilyn Antonio whose total assets grew from under P1 million in 2006 to P5.6 million today, thanks to peanut butter manufacturing and microfinancing.
Vohra remarked, “We’re here to recognize more Jennilyn’s out there. More than just looking at the mere data, I personally feel that MOTY really adds a face and a story to the impact of microfinance, stories that can really inspire a nation to be proactive about ending poverty. MOTY puts the focus on what should really matter most – the grassroots entrepreneur who used microfinance to help them improve their lives and their communities.”
Masikap awardee Imelda Brutas registered annual sales of native delicacies of P3.4 million while providing employment to 23 individuals when she won in 2005. Her sales have since grown from P3.4 million to the P5 million level. 2008 Maunlad awardee Anunciacion Santillan had a “carinderia” and a ready-to-wear business whose assets were then valued at P334,000. Those are now worth P1 million.
Last year, selected MOTY winners were enrolled for a short entrepreneurship course conducted by Bayan Academy. The three week Entrep-Eskwela Program grounded the microentrepreneurs on basic business skills including analyzing the external environment and formulating objectives and strategies to reach them. Less than a year since graduating from the program, a survey of the winners revealed that their net worth had grown by some 30% to an average P1.8 million.
2009 awardee Merlinda Olea, who owns a printing press in Gumaca, Quezon, for instance, learned from the course to pay keener attention to the quality, delivery and price requirements of her clients. MLQ Can Recycle owner and 2010 MOTY winner Ismael Adiaton has been inspired to identify opportunities around him and will soon diversify from his recycling business, which employs 30 to running a bakery. He discloses that his training pushed him to aspire for growth to attain greater self fulfillment and to provide employment to more people in his community. Meanwhile, 2010 awardee Luzviminda Edna Cacanindin has expanded her distribution network for the fresh mushrooms that she cultivates in La Union. Using the same network, she has also begun trading new products and is enjoying bigger profits.
“I believe it is impossible to exaggerate the role small businesses play in the development of the economy and society,” said Vohra. “As we mark 109 years of doing business in the Philippines, we remain firm on our commitment to seeing microentrepreneurs in this country succeed and become a proactive solution to poverty in this country.”