Presented by: Myrna T. Yao Chairperson National Commission on the Role of Filipino Women

APEC Symposium on SME Strategies to APEC Symposium on SME Strategies to Manage the Impacts Manage the Impacts

of the Global Financial Crisisof the Global Financial CrisisJune 8-9, 2009, Taipei, TaiwanJune 8-9, 2009, Taipei, Taiwan

Presented by: Presented by: Myrna T. YaoMyrna T. Yao ChairpersonChairperson National Commission on the Role of Filipino WomenNational Commission on the Role of Filipino Women

Women-Owned Enterprises

and the Financial Crisis

Impact of crisis on womenImpact of crisis on women

Job lossJob loss

Tightening of credit fromTightening of credit from

banks and other lending banks and other lending institutionsinstitutions

Reduction of remittancesReduction of remittances

Impact of crisis on womenImpact of crisis on women

1 percent decline in the growth rate 1 percent decline in the growth rate of a developing country traps an of a developing country traps an additional 20 million people in additional 20 million people in povertypoverty

100 million people driven into poverty 100 million people driven into poverty by high food and fuel pricesby high food and fuel prices

World Bank Report

Impact of crisis on womenImpact of crisis on women

International Labor Organization International Labor Organization realistic scenario:realistic scenario:

worst-case unemployment worst-case unemployment

scenario wherein 22 million scenario wherein 22 million

women of the total 55 millionwomen of the total 55 million

workers around the world will beworkers around the world will be

unemployed this year partly as a resultunemployed this year partly as a result

of the current global economic crisisof the current global economic crisis

Impact of crisis on womenImpact of crisis on women

global unemployment rate for global unemployment rate for women could reach 7.4 women could reach 7.4

percent this year, from 6.3 percent this year, from 6.3 percent in 2008percent in 2008

International Labor OrganizationInternational Labor Organization

realistic scenario:realistic scenario:

Impact of crisis on womenImpact of crisis on women

International Labor OrganizationInternational Labor Organization

realistic scenario in Asia:realistic scenario in Asia:

number of unemployed people would number of unemployed people would increase by 7.2 million or at a rate of increase by 7.2 million or at a rate of 5.1 percent 5.1 percent

number of unemployed women would number of unemployed women would rise by 4.4 percent as compared with rise by 4.4 percent as compared with 3.8 percent for men 3.8 percent for men (optimistic scenario)(optimistic scenario)

The brighter sideThe brighter side

Philippine economy grew only by Philippine economy grew only by 0.4 % for the 10.4 % for the 1stst quarter of 2009 quarter of 2009

Philippines will not suffer a recession Philippines will not suffer a recession like other countries in the region .like other countries in the region .(Ralph Recto, Socio-Economic Planning Secretary)(Ralph Recto, Socio-Economic Planning Secretary)

The brighter sideThe brighter side

3.1 percent to 1.4 percent forecast for 3.1 percent to 1.4 percent forecast for

the Philippines this year the Philippines this year (Meryll Lynch-American (Meryll Lynch-American investment Bank, May 29)investment Bank, May 29)

China would grow by 7.0 %, India will grow China would grow by 7.0 %, India will grow by only 5.0% by only 5.0% (Asian Development Bank)(Asian Development Bank)

Woman at the center of growthWoman at the center of growth

reforms attributable to the Arroyo reforms attributable to the Arroyo administration “are probably the roots administration “are probably the roots of the economy’s strong points” of the economy’s strong points”

introduced financial reforms introduced financial reforms in the aftermath of the Asian in the aftermath of the Asian financial crisis in l997financial crisis in l997

improved income and spending improved income and spending balance as well as for the balance as well as for the country’s manageable inflation ratecountry’s manageable inflation rate

Women empowerment Women empowerment in the Philippinesin the Philippines

Republic Act No. 6725, an Act that Republic Act No. 6725, an Act that strengthens the prohibition of the strengthens the prohibition of the discrimination against women with discrimination against women with respect to terms and conditions of respect to terms and conditions of employmentemployment

RA 7192, also known as Women in RA 7192, also known as Women in Development and Nation Building ActDevelopment and Nation Building Act

Women empowerment Women empowerment in the Philippinesin the Philippines

Magna Carta of WomenMagna Carta of Women

recognizes the role of women in nation recognizes the role of women in nation building and ensures the substantive building and ensures the substantive equality of women and menequality of women and men

ensures the fulfillment of the human ensures the fulfillment of the human rights of women provided for in other rights of women provided for in other international treaties and national international treaties and national laws laws

Women’s economic empowermentWomen’s economic empowerment

More Filipino women are now employed More Filipino women are now employed and continuing efforts are being made to and continuing efforts are being made to improve their competencies and skills improve their competencies and skills through continuous training and through continuous training and apprenticeship. apprenticeship.

Credit programs have been encouraged Credit programs have been encouraged and expanded to benefit a large number and expanded to benefit a large number of Filipino women.of Filipino women.

Women’s economic empowermentWomen’s economic empowerment

Efforts have been made to protect and Efforts have been made to protect and promote the welfare and interests of promote the welfare and interests of Filipino women, giving them childcare Filipino women, giving them childcare benefits and addressing gender issues in benefits and addressing gender issues in the workplace. the workplace.

greater government recognition of the greater government recognition of the critical role that small and medium critical role that small and medium enterprises (SMEs) play in capital enterprises (SMEs) play in capital formation, employment creation, and formation, employment creation, and growth generation and greater attention growth generation and greater attention to women in SMEsto women in SMEs. .

Focus on SMEsFocus on SMEs

SME Unified Lending Opportunities SME Unified Lending Opportunities for National Growth (SULONG) for National Growth (SULONG) ProgramProgram

aimed at promoting micro, small and aimed at promoting micro, small and medium enterprises (MSMEs) throughout medium enterprises (MSMEs) throughout the country the country

(loans extended by the Government financing (loans extended by the Government financing institutions (GFIs) under the program reached institutions (GFIs) under the program reached P32 billion in 2008 from P28.6 billion in 2007)P32 billion in 2008 from P28.6 billion in 2007)

Focus on SMEsFocus on SMEs 783,065 - business enterprises in the Philippines in 783,065 - business enterprises in the Philippines in

20062006

micro-enterprises smallenterprises mediumenterprises largecorporations

3,327,855 –jobs generated by MSMEs (2006)3,327,855 –jobs generated by MSMEs (2006) 1,657,028 – jobs generated by large corporations (2006)1,657,028 – jobs generated by large corporations (2006)

92%

7.3%

0.4%

0.3%

Focus on SMEsFocus on SMEs

““Hapinoy” stores Hapinoy” stores

(for happy Pilipino (for happy Pilipino

or Pinoy)or Pinoy)

small retail outlets in the countryside that are being set up through micro-finance institutions

majority of borrowers are women

no collaterals

GEM: Global Entrepreneurship Monitor (2006-GEM: Global Entrepreneurship Monitor (2006-2007)2007)

4 of 10 Filipino adults (18-64 yrs.) are engaged 4 of 10 Filipino adults (18-64 yrs.) are engaged in business (19Million approx)in business (19Million approx)

Philippines ranked 2Philippines ranked 2ndnd among 41 countries – in among 41 countries – in number of individual business ownersnumber of individual business owners

Philippines ranked 6Philippines ranked 6thth globally in terms of globally in terms of discontinued businesses (in the last 12 months)discontinued businesses (in the last 12 months)

Reasons – financial, personal and intense Reasons – financial, personal and intense competitioncompetition

Distribution of Total Early Stage Activity Distribution of Total Early Stage Activity (TEA)(TEA)

53% - consumer-oriented businesses53% - consumer-oriented businesses

24% - extractive businesses 24% - extractive businesses

19% - transformative businesses19% - transformative businesses

3% - business services3% - business services

HOWEVER, do you know that….HOWEVER, do you know that….

Philippines is 2nd highest in percentage of entrepreneurially active females (among 42 countries)

GEM Philippine Report Recommends to:

Improve quality, availability & accessibility of Improve quality, availability & accessibility of financingfinancing

Enhance business growth potentialsEnhance business growth potentials Improve & expand R&D on small businessesImprove & expand R&D on small businesses Promote stronger export orientationPromote stronger export orientation Strengthen entrepreneurial values & attitudesStrengthen entrepreneurial values & attitudes Boost interest in S&TBoost interest in S&T Make entrepreneurial education more practical Make entrepreneurial education more practical

& experiential& experiential Emphasize critical role of local governmentsEmphasize critical role of local governments Highlight women’s importance in enterprise Highlight women’s importance in enterprise

developmentdevelopment

Personal ExperiencePersonal Experience

1980 – Richwell Trading was established as 1980 – Richwell Trading was established as franchise distributor of Goodyear tiresfranchise distributor of Goodyear tires 1982, July - Richwell was awarded the 1982, July - Richwell was awarded the exclusive distributorship of Mattel exclusive distributorship of Mattel toys in the Philippinestoys in the Philippines

1989 – Richwell Phils. got the license to 1989 – Richwell Phils. got the license to manufacture Barbie Dolls in the Phils. manufacture Barbie Dolls in the Phils.

humble beginnings…humble beginnings…

Personal ExperiencePersonal Experience

humble beginnings…humble beginnings…

As a distributor and licensing agent, As a distributor and licensing agent, Richwell employs 1,300 employees Richwell employs 1,300 employees (about 50% comprise the growing sales (about 50% comprise the growing sales force)force)

Distribution channels continue to Distribution channels continue to increase in Toys, Shoes, Apparel and increase in Toys, Shoes, Apparel and Baby Products including ToiletriesBaby Products including Toiletries

Formula to succeed during Formula to succeed during financial crisisfinancial crisis

DiversityDiversity Safe and quality goodsSafe and quality goods Creative marketing strategyCreative marketing strategy Strengthen financial capacityStrengthen financial capacity Best value for moneyBest value for money

Formula to Formula to succeed during succeed during financial crisisfinancial crisis

Clear direction of the companyClear direction of the company

Well planned strategies in sales and Well planned strategies in sales and financesfinances

Target competitors market shareTarget competitors market share

corporate responsibility:corporate responsibility:

“Every Child Deserves a Happy Childhood”

in the light of the present crisis, in the light of the present crisis,

the nation’s competitivenessthe nation’s competitiveness “rests “rests greatly on its ability to plan and greatly on its ability to plan and execute programs and projects that execute programs and projects that will subject its citizens and will subject its citizens and enterprises to the least risks enterprises to the least risks possible; and be able to safeguard possible; and be able to safeguard their interests in inevitable their interests in inevitable circumstances.”circumstances.”

“Competitive Analysis of the Present Crisis,” Professor Ma. Lourdes Sereno, executive director, Asian Institute of Management Policy Center

NCRFW believes…NCRFW believes…

““with empowered womenwith empowered women

we can build a stronger nation”we can build a stronger nation”

…Every mother, every woman deserves a happy and fulfilling life.

… economic crisis is a time for change and new opportunities.

The lessons that we have learned during the time of crisis

should guide us as we move on to the future.

We should welcome the current challenges

and transform them into opportunities for further growth and development

in our respective countries.

MYRNA T. YAO

Thank you…Thank you…