ASEAN biz council: Large companies must support MSMEs

For micro, small, and medium enterprises (MSMEs) to reap the fruits of Association of Southeast Asian Nations (ASEAN) integration, large companies must "embrace" them as part of the business ecosystem, ASEAN Business Advisory Council (ABAC) Chairperson Joey Concepcion said Thursday.

"The challenge really, especially for micro, small, and medium enterprises, is their ability to benefit from the ASEAN," Concepcion told reporters in a press conference at the ASEAN International Media Center in Pasay City.

"What really has to happen is that medium and large companies, who are in partnership or is ... exporting already to the 10 ASEAN countries, embrace really the micro and small medium enterprises as part of the ecosystem," he said.

The ABAC chairperson took note that agriculture is among the "very" challenging sectors for small entrepreneurs as far as trading in the ASEAN is concerned.

"What we have been explaining to the ASEAN Business Advisory Council is that large corporations ... this is where inclusivity has to be practiced ... is to really bring in, especially, our small agricultural farmers as part of the ecosystem, the supply chain," he said.

"So as the big companies start to do business with the ASEAN neighbors, especially as tariffs are brought down, then the chances of micro and small entrepreneurs to be sustainable ... the effect is much faster," he added.

Large companies helping small business in terms of trade may have indirect effects, such as "mentorship," Concepcion noted.

"Indirectly they (MSMEs) would have mentorship, because, as I bring in my own suppliers, whether it's in agri or whatever business it is, I indirectly already mentored them and strengthen the level of technical expertise to be able to supply me certain raw materials. And I think that is the formula that is the way forward for many of our micro and small (entrepreneurs)," he said. — VDS, GMA News