The Securities and Exchange Commission (SEC) on Friday urged micro, small and medium enterprises (MSMEs) to consider the capital market to expand their businesses.

At the SEC roadshow on capital formation for MSMEs and start-ups in Iloilo City, Commissioner Kelvin Lester Lee said they are promoting and raising awareness that MSMEs can access the capital market for their financing needs.

“Catering to the needs of our MSMEs is one of the top priorities of the Marcos administration. In SEC’s bid for financial inclusion, we recognize that there is a need to broaden the financial instruments available for MSMEs,” he said in his message.

He said 99.5 percent of the country’s businesses are MSMEs, 63 percent of which hire the local workforce, contributing 40 percent to the gross domestic product (GDP).

However, 67 percent of these MSMEs continue to have financing and credit constraints, and most of them rely on internal sources for their capital needs, he said.

Others who apply for traditional bank loans are having difficulty with their documents, collateral, and high-interest rate, he added.

“At least this way, we can relay to the general public that if you engage in business there are many options to raise capital to expand your business,” he said in a press conference.

The roadshow gathered experts on crowdfunding and business that embarked on public offering to share their expertise and experience before the participants.

Meanwhile, Mayor Jerry Treñas hoped the initiative would contribute to the vision of the city of becoming a business hub as they gained knowledge on expanding their business by tapping the capital market.

“This roadshow will serve as a platform for knowledge exchange, networking, and collaboration,” he said.

Also joining the event were SEC Director Vicente Graciano Felizmenio Jr., Philippine Stock Exchange Chief Operating Officer Roel Refran, and SEC Iloilo OIC Director Ma. Cristina Montelibano. (PNA)