You can do it, SMEs!
Vel Marie Santillan 12th May 2017
Filipino SMEs account for 99% of all registered businesses, employ more than 60% of the work force, and contribute 16% to 35% in export. SMEs stimulate economic activity, generate employment, prompt innovation, heighten competition and contribute largely to the country’s progress. In short, SMEs are essentially the backbone of our economy!
The most critical constraint facing Philippine SMEs is access to financing. Studies have shown that there aren’t a lot of aid being given to start-up companies. Banks are wary on lending SME loans simply because they are riskier. Even if you do get approved, you’re even subject to steep loan interests – which is pretty ironic considering you’re called “small” for a reason.
The root of this is the perception that SMEs lack skills in preparing financial records. In one article (which I would rather not mention) “Most SMEs start small and generally remain small until liquidation or bankruptcy.’’ This might or might not include you. But one thing is for sure, you rely on internally generated funds – including your personal savings account.
According to Sherwin Yason of sgv.ph, “With the mounting challenges SMEs are experiencing with their financial reporting, now is the right time for the SMEs to look into their accounting infrastructure and to commit to producing useful and reliable financial information.” With that being said, you need to consider outsourcing parts of your operations to cut costs and overcome lack of skilled and highly-paid employees.
We do understand where you’re coming from. Not everybody has an accountancy degree. That could be pretty daunting as an SME. But you don’t need to worry about that. With the advent of online technology, business solutions are bound to exist to help you.
Plus, the passion is there. It has always been there.
One of the business solutions you can utilize is an online payroll system that lets you compute employee wages and deductions as well as monitor their attendance. You don’t need to feel like a blind monkey and worry so much about that. Seek and you shall find – as what the proverb has said.
Credit: Modified photo from Xin Song | responsive