Press Release
February 9, 2006
*Prizes for viable business ideas, best response to game show craze
Recto*
/Billions available in GFIs/
Government should ride on the game show craze by dangling billions
of pesos in loanable funds held by government corporations as prizes
for best business ideas.
There can be a write -in contest for business proposals. A talent
search for viable /negosyo/, Sen. Ralph Recto said. This way the
ticket out of poverty will not be left to chance but something that
is feasible.
Governments SULONG program lent out P31 Billion last year to 15,000
entrepreneurs. These loans supported 395,000 jobs.
People die for a chance to win a tricycle when Land Bank alone can
provide thousands of them in easy repayment terms, he said..
If you interview the desperate housewives who queue for a chance to
be called in game show contests, they will tell you that theyre
there because they need start-up capital for a business venture, he
said.
Government, he said, should seize on this innate talent of
Filipinos to make money out of a little capital.
Even if red tape is factored in, Recto noted that it is still a lot
easier for people with good business ideas to join a government
livelihood program than for them to get in a game show.
Sadly, it is question of marketing and access. People are wary of
credit sources , especially if these housed in airconditioned
buildings and manned by people in /barongs/ . They prefer credit on
wheels, peddled by a guy wearing a turban, he said.
Recto said the huge success of microfinancing programs in the
country prove that you do not have to be an Ayala, a Sy, or a Tan
to be creditworthy.
If it is hard to bring people to government financing institutions
(GFIs), then the latter must go to them, not literally, of course,
but through the power of media, he said.
A GFI can start a contest for young entrepreneurs who can download
easy-to-accomplish forms from the internet which will be filled up
so that GFI can have an idea if the project is feasible or not.
Or, application forms printed in newspapers for livelihood
proposals, and when submitted and found initially feasible, a credit
investigator can make further inquiries and interviews, he said.
Winners can be announced and invited over to appear in
government-run TV or published in newspapers, he said. To have
wider impact, there can be regional or even provincial winners.
Asked about measures that would ensure repayment compliance, Recto
said the release of funds can be coursed through established
cooperatives as peer monitoring is an effective agent for credit
discipline.
Recto admitted that his idea needs fine-tuning. But it can be done.
The idea is to put sizzle in otherwise staid government livelihood
programs.
What we would like to see is a "Wish Ko Lang" format but on a
grander scale and based on merit, he said.
Recto said the contests can be organized along sectors or niches.
One agency can take care of homemakers. Quedan Corporation will be
the franchise-holder for farmers. OWWA, which has billions of pesos
in trust funds, can start a program for OFWs.
To address the need of workers going abroad but lack money for plane
ticket and placement fee, Recto said one government agency should
start a Fly Now, Pay Later plan, to save OFWs from usurious rates
offered by those who finance their employment. |