The Philippines has instituted policies and programs conducive to the survival and growth of micro enterprises.
This was among the findings of International think tank Economist Intelligence Unit (EIU) which surveyed 55 countries in terms of micro-business environment and ranked the Philippines fourth in the field. This is a two-notch improvement from its sixth place showing last year.
The major criteria used in ranking were regulatory framework and environment and supporting institutional framework.
According to the EIU report entitled “Global Microscope on the Microfinance Business Environment 2012,” government programs and policies, such as those being implemented by the Bangko Sentral ng Pilipinas (BSP), boosted the Philippines’ performance in the survey.
The report said that the BSP considers micro finance as one of its key poverty-reducing strategies.
Cited in the report as supportive of micro enterprise development in the Philippines were the increase in the amount of loans extended to micro enterprises and the wholesale lending of government-owned banks to micro-enterprise borrowers.
According to BSP, the standing of the Philippines would improve further if it succeeds in finally putting up a credit bureau, with which lenders would be more comfortable lending to businesses of all sizes as long as they can show a good borrowing track record.
Ranked as the top three micro-enterprise friendly countries are Peru, Bolivia and Pakistan.
Photo: from the Heifer Philippines website