The Philippines was not the only country that suffered unbearable economic challenges caused by COVID-19 pandemic. The devastations caused to the world by the pandemia was felt badly in all sectors of the country, e.g. business, infrastructures, human lives etc., but the shock was on the men and women working in micro, small and medium enterprises (MSMEs).
The Security and Exchange Commission (SEC) that felt the financial woes of the MSMEs has though of providing solutions to these enterprises by advising that they “tap he capital market, including crowdfunding platforms, to raise funds for business recovery and expansion.
Crowdfunding is defined as a type of fundraising activity typically conducted by start-ups and SMES where the public can support or fund a business idea through an online platform.
In the Philippines, crowdfunding rules dictate that “SMES no longer have to register securities with or secure approval directly from the SEC before they can solicit investments from the public.
“Furthermore, SMES need only to conduct their fundraising activity with a crowd funding intermediary, funding portal or crowdfunding platform registered with SEC.” Also, within a 12 month period, an SME may raise as much as P 10 million when its securities are offered and sold to any investor, and up toP50 million when offered, and sold to qualified investors.”
The strategy of SEC to resuscitate the financially crippled MSMEs caused by the pandemia, is well appreciated and timely. SEC will to put more teeth to their project by doing intensive information/education dissemination throughout the country. The roadshow on capita market formation conducted in Davao City need to be replicated for the benefit of the less ‘educated’ entrepreneurs in towns and provinces. And hopefully, the strategy would create a domino-effect among interested parties. Definitely, crowdfunding type of fundraising is Latin to me! It would appreciated if the same is ‘dissected’!
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