The Foundation for a Sustainable Society, Inc. (FSSI) organized a learning session on the state of social entrepreneurship in the Philippines, focusing on the sector’s current context, challenges, and opportunities as part of the Foundation’s two-day General Assembly on May 22-23, 2024, in Quezon City. This session is part of FSSI’s strategic planning for 2025 to 2029, aimed at leveraging social entrepreneurship to reduce poverty in the country.
The State of Social Entrepreneurship in the Philippines: Context, Challenges, and Opportunities
Dr. Philip Arnold “Randy” P. Tuaño, Dean of the Ateneo School of Government, provided an overview of the country’s economic growth. The country has experienced 6 to 7% growth in recent years, a notable shift from the erratic economic patterns of the late 20th century. Following the 1983 debt crisis, the Philippines saw unstable economic growth until the 2010s, characterized by a cycle of boom and bust. By 2014, the nation began shedding its reputation as the “sick man of Asia,” with growth becoming more consistent.
Economic growth has largely transitioned from agriculture to services, with significant contributions from sectors such as communications, retail, and finance. The services sector, driven by overseas Filipino workers’ (OFWs) remittances, now dominates the economy, although this has led to lower-paying, less stable jobs compared to those in industry and manufacturing. Socioeconomic outcomes have improved with higher life expectancy, better education, and reduced mortality rates. However, the Philippines lags behind its Southeast Asian neighbors in the Human Development Index.Persistent social issues include educational inadequacies, health challenges such as high stunting rates, and limited access to government programs. The country also faces significant environmental challenges, including climate-induced economic losses and biodiversity loss. These factors impact the broader socio-political and economic landscape.
Current State of Social Entrepreneurship in the Philippines
Ms. Zunally Rapada meanwhile presented preliminary findings from an unpublished study on the state of SEs in the Philippines, based on a survey of 231 social enterprises conducted by the Poverty Reduction through Social Entrepreneurship (PRESENT) Coalition.
Globally, social enterprises number around 9.79 million, with Philippine enterprises primarily operating in agriculture, financial services, and marketing. Many are micro-enterprises led by women, often funded through personal investments and grants.
Challenges faced by these enterprises include limited access to finance, inadequate legal frameworks, and low public awareness, with capital barriers and weak commercial models remaining significant issues. Opportunities for improvement include providing grants and hybrid financing to aid COVID-19 recovery, offering zero-interest loans to marginalized groups, and establishing marketplaces and technical assistance to boost growth.
Discussion emphasized the need for women’s economic empowerment through targeted support and sustainability initiatives. The survey involved extensive collaboration and aimed to offer a thorough view of the sector. Updates on government support include advocating for the PRESENT Bill, enhancing social enterprise classification, and developing new programs with the Department of Trade and Industry (DTI).
Panel Discussion
A panel discussion aimed to foster dialogue between social enterprise practitioners and stakeholders focusing on sharing expertise, identifying challenges, and exploring support mechanisms also formed part of the learning session. Moderated by FSSI Trustee Ms. Agnes Bolanos, the panel featured Mr. Guillermo Bacsa of K5 Coop and Ms. Gemma Emata of Trunk to Gold Agribusiness (T2G Agri), both leaders of women social enterprise partners of FSSI.
K5 Cooperative started as a microfinance initiative and evolved into a diverse cooperative involved in various businesses. It employs 56 people and supports the local economy by generating jobs and establishing projects like an accommodation facility in Dingalan, Aurora. T2G Agri, founded to boost the coconut industry in Misamis Oriental, provides sustainable income for coconut farmers by producing and marketing coconut-based products.
Both panelists highlighted significant challenges, including access to financing and market promotion. Bacsa emphasized the need for community trust and financial support, while Emata pointed out the difficulties in educating customers and obtaining loans. They also stressed the crucial role of government support in providing production loans and ensuring fair market prices.
During the pandemic, both enterprises faced operational challenges but adapted through diversification and continued support for employees and the community. The discussion underscored the importance of capacity building, collaboration, and government partnership in overcoming these challenges and sustaining social enterprises. The panelists recommended bolder investments in agriculture and customized support to better aid social enterprises.
You may access the learning paper summarizing insights into the state of social enterprises in the Philippines, with contributions from experts and practitioners as discussed during the learning session through the link below.
