A lawmaker and an international group on Monday urged the national government to support social enterprises, as they see this sector as effective tool to reduce the number of poor in the country.
Party-list Rep. Cresente Paez of Coop-Natcco and Institute for Social Entrepreneurship in Asia President Dr. Marie Lisa Dacanay, at a news conference, said that social enterprises with the poor as primary stakeholders have emerged as innovative responses to social problems of the country.
Paez, author of the Poverty Reduction through Social Entrepreneurship bill, or House Bill (HB) 1331, said that social enterprises, which comprise about 30,000 organizations in the form of cooperatives, corporations, single proprietorship, non-governmental organization-assisted enterprises have demonstrated their contribution in addressing poverty, inequality and climate change.
“Poverty and inequality compel us to rethink—through HB 1331—old ways of managing our resources and think of sustainable and inclusive ways of eradicating poverty, addressing inequality and creating more resilient communities,” he said.
At the same news conference, Dacanay said that social enterprises (SE) in the country help the government address poverty, local and sectoral issues such as lack of health services, education facilities, employment and disability.
Dacanay, citing a National Statistical Coordination Board report, said that in 2012 the income of top 20 percent families is eight times bigger than the total income of bottom 20 percent families, which is much higher than in 2006 and 2009.
She added that at least 25 percent of Filipinos living below the poverty line has remained almost unchanged in the past years, saying the poverty incidence was highest in rural areas.
“Social entrepreneurship is all about innovative and sustainable solutions to social problems. And in the context of poverty and inequality, social enterprises with the poor as primary stakeholders…have emerged as innovative responses to these problems,” she added.
Meanwhile, in filing HB 1331, Paez said that his Poverty Reduction through Social Entrepreneurship bill seeks to provide a nurturing environment for the development and growth of strong, proactive and innovative social enterprises as major vehicles for poverty reduction.
The bill also enacts a planning and implementation of a National Poverty Reduction through Social Entrepreneurship Program, led by a Council on Social Enterprises headed by the Department of Trade and Industry.
It also seeks to provide:
- Provision of accessible non-collateralized loans through special credit windows with a Guarantee Fund Pool;
- Comprehensive insurance system to reduce vulnerability to climate change/calamities;
- Resources for comprehensive capacity development for SEs and poor as partners (transactional and transformational services); mainstream SE content in formal educational system;
- Proactive SE market-development program promoting principles of fair trade;
- Research and development on strategic economic subsectors; appropriate technologies and innovations to democratize access of poor to quality basic social services;
- Recognition and support for local government units in developing SEs;
- Preferential treatment in government procurement including coverage of performance bonds;
- Tax exemptions and tax breaks for social enterprises and social investors;
- Cash incentives (i.e. at least 25 percent of minimum wage for social enterprises employing person with disability.
Paez also said he will ask the House leadership to fast-track the approval of the bill.
He said that the Committee on Small Business and Entrepreneurship is set to discuss the bill next month.