The Securities and Exchange Commission (SEC) has successfully facilitated the raising of over P2.2 billion for micro, small, and medium-sized enterprises (MSMEs) through crowdfunding and initial public offerings (IPOs), marking a significant milestone in the Philippines’ capital market development. Since the launch of its nationwide capital formation roadshow two years ago, at least 361 MSMEs have tapped crowdfunding platforms to generate funds, with 358 more companies expressing interest in the initiative.
SEC Chairman Emilio B. Aquino reported that crowdfunding efforts alone have contributed P2.24 billion in fresh capital, while the number of crowdfunding projects stood at 1,212 as of late 2024. These efforts have created new opportunities for small businesses to access vital financing, traditionally limited by strict credit requirements.
“We’ve made substantial progress in helping MSMEs gain access to financing and grow their businesses. The roadshow initiative has been a catalyst in opening up the capital market to small businesses,” Aquino said during a recent announcement. The SEC’s goal of enabling 888 companies to raise capital through the capital markets by November 2024 was successfully achieved, a target reached through a combination of IPOs, crowdfunding, and other market-based financing options.
The SEC’s roadshow began in February 2023 in Davao City and has since toured 21 key cities, including Cebu, Iloilo, Bacolod, and Zamboanga, directly engaging over 3,000 MSMEs. Online participation has also surged, reaching more than 60,000 business owners and entrepreneurs across the nation.
As part of its ongoing efforts, the SEC is collaborating closely with the Philippine Stock Exchange (PSE) to monitor the 16 leads for potential public listings. Aquino emphasized the importance of expanding access to the capital market for businesses of all sizes, particularly MSMEs, who continue to face significant barriers to financing.
“Aligning ourselves with the government’s agenda, we are focused on creating more financing avenues for MSMEs to drive growth and innovation,” Aquino added. The SEC’s initiative underscores its commitment to fostering a more inclusive and accessible financial ecosystem for businesses across the Philippines.
