THERE is no doubt that Filipinos in small and medium enterprises (SMEs) are hardworking. They wake up very early, go to bed extremely late and run their businesses while looking after their families and being active in their communities as well.
However, there is one simple yet significant factor affecting the development of their respective businesses — they cannot reach their true potential without proper access to capital and financial services.
SMEs form the backbone of employment and economic growth in the country. They generate millions for the country’s economy and provide countless jobs. However, behind all these lies a business owner that makes a lot of decisions regarding his future and survival.
In most cases, the decision comes down to a choice between going after an excellent but risky opportunity, or staying afloat with little risk involved. It happens quite often that the ability to obtain financing quickly and effectively plays a crucial role in making one of these choices.
Without such access, entrepreneurs usually tend to prefer a conservative route, though many times they would be willing to try out something new.
The problem here is the amount of risk involved. As the saying goes: “Diskarte” (strategy) over risk is the only reasonable thing to do.
Nevertheless, as financial solutions continue evolving, there is a growing trend toward solutions that better cater to SMEs’ needs. These include more flexible processes, better understanding of the realities of running small businesses, and better ways to support SMEs in using capital correctly.
More financial organizations realize the necessity to narrow the gap — hence, helping small companies not only get funding but also spend it efficiently and use it to make growth-oriented choices. This will allow many entrepreneurs to say yes, more often than not.
On top of that, the role played by accountants, bookkeepers and financial advisors is essential. Today, they act as advisors for SMEs helping assess their preparedness for growth, maintain positive cash flow and find appropriate means for obtaining capital whenever necessary.
Hence, they form the connection between opportunity and its implementation. This helps to make growth more likely and sustainable for SMEs.
So, what really drives SME growth? Access to capital, yes. However, when it comes at just the right moment, it gives business owners much more than just resources. With proper access and good management of those resources, growth turns into an option.
Assistance
There is a range of organizations dedicated to ensuring that SMEs have more access to practical financing solutions. One of the most prominent is First Circle — a company that works actively with SMEs, helping make growth-related decisions easier and more effective.
For instance, it is able to establish partnerships with other organizations that provide additional services required to support SMEs’ further development. Thus, business owners receive assistance in finding appropriate financing solutions and implementing them in practice. Through such cooperation, it becomes possible to facilitate growth and make decisions about the future with more confidence.
No matter what path you choose, increasing the possibility of SMEs getting access to capital and financial services may turn your entrepreneurial career into an entirely different experience.
Gilbert Lu is a channel manager at First Circle, working with accounting and professional service firms, and helping their clients obtain better financing solutions.
