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Micro, Small, Medium Enterprise (MSME) Sector Financing: Issues and Challenges


A vibrant and strong micro, small, and medium enterprise (MSME) sector can reduce poverty and inequality in the country. In spite of the plethora of Philippine policies and programs for MSMEs, however, the sector continues to suffer from low productivity, slow growth, and little stability. A key element missing is the adequate public financing for MSME development programs. Although financing for MSMEs have increased in the context of the pandemic, much more are needed. But for this to happen, a policy rethink is required that allows government to play a more active and direct role in MSME development.


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