Franchising industry helps boost Philippines economy

MANILA — President Gloria Macapagal-Arroyo has cited the franchising industry as a big boost to the country’s economic growth and development.

“Franchising in the Philippines has made good progress. It has helped improve productivity of small and medium enterprises through the use of standards, modern technology and better management systems,” President Arroyo said in her speech delivered by Presidential Management Staff chief Cerge Remonde during the Association of Filipino Franchisers Inc. (AFFI) trade show recently.

“Our growing economy is opening great opportunities for our people. Confidence is up and we are expecting a flood of investments in the wake of growing political stability and sound economic stewardship,” she added.

The President expressed strong support to the franchise industry, which is considered a viable business opportunity for prospective entrepreneurs and a growth strategy for small businessmen, including start-up or expanding franchisers and franchisees and suppliers of franchiser-firms.

Remonde, who is also Cabinet oversight official for micro, small and medium enterprise (MSME) development, said President Arroyo is pushing for strengthened collaboration with the top businessmen and small and medium-scale entrepreneurs to further build on the economic gains of the country.

“You in the franchising industry can certainly do much and I will continue to count on your partnership as we work together towards a legacy of excellent entrepreneurship through, among others, franchising,” the President said.

“I am therefore asking everyone to take a bolder outlook to shore up domestic investment, and spread the good news far and wide so that every nook and cranny of the Philippines will acquire the vibrance of our urban centers,” she added.

President Arroyo also said that a number of local and homegrown franchises have spurred many others to adopt franchising and tap global practices.

She noted that the industry’s strategy of combining the market familiarity and skills of small entrepreneurs with the financial strength of business is a potent formula to address traditional barriers to business and beef up the country’s competitiveness in the global economy.

“In the Asia-Pacific Economic Cooperation (APEC) meet, franchising has been recognized as a major means to develop SMEs,” she said.

The President bared plans to make the industry a major dollar earner by exporting homegrown business to other countries, instead of exporting skilled labor.

The development of SMEs is part of President Arroyo’s national SME agenda to intensify growth and economic development, and dent poverty in the country.

Remonde said the SMEs comprise about 99.6 percent of all business establishments in the country, employs 70 percent of the nation’s workforce, and contributes 32 percent to the economy.

More than 175 franchise exhibitors and SMEs participated in the trade show. Beauty expert Cory Quirino and officers of AFFI led by President Ricardo Cuna and Chairman Tess Ngan Tian joined Remonde in the ribbon-cutting ceremony.