MANILA -- Large companies are being tapped to raise PHP100 million for a capacity-building fund to help low-income communities build their enterprises, Philippine Business for Social Progress (PBSP) Chairman Manuel V. Pangilinan announced on Wednesday.
At the sidelines of the Inclusive Business Leaders’ Conference in Pasay City, Pangilinan told reporters that agriculture firm Cargill has donated PHP7 million for the capacity-building program.
He added that the PBSP will tap other big firms to support the program in an effort to promote the inclusive business model in the country.
“The initial funding was given this morning by Cargill, for PHP7 million. PBSP’s target is to raise up to PHP100 million,” Pangilinan said.
“This is for capacity building, which means helping farmers, fisherfolk to develop business on their own, and encouraging business to get into ventures that promote inclusiveness,” he added.
The PBSP shares with the Board of Investments (BOI) the goal of promoting a business model that spreads the wealth, he explained.
Inclusive business model engages low-income communities to the supply chain of big companies as partners, suppliers, customers, or employees.
However, it was noted that one of the concerns of large enterprises in partnering with small-scale and community-based enterprises is the quality of products that they produced.
This is where the PBSP would like to intervene, wherein the non-governmental organization could initiate programs and provide equipment using the capacity building fund to enable community-based enterprises to enhance their goods and services.
According to PBSP Director for Operations Elvin Ivan Uy, the capacity-building fund has three components. First is resource mobilization, where it targets to get funding support from big companies. Second is by offering this financing to communities and farmers to enhance their productivity and improve the quality of their goods and services. Third is by providing project management and fund management to community-based enterprises once they were able to be linked to large firms’ supply chain. (PNA)
