Building Financial Resilience of Members through MSMEs
- Date : Wednesday October 28, 2020
- Venue :
The Workshop on Building Financial Resilience of Members through MSMEs was organized on October 26 – 28, 2020. The workshop was attended by the 27 CEOs and managers of cooperatives from the Philippine Federation of Credit Cooperatives and the National Confederation of Cooperatives. They will turn out to be business coaches to promote the development of MSMEs as a recovery vehicle on the impacts of the pandemic.
Due to the impact of COVID-19 pandemic, many members of credit unions have become unemployed or underemployed due to the prolonged pandemic and widespread virus infection. Credit unions suffered financial impacts as the members who lost income did not have an emergency fund to cover expenses plus debt service. Credit unions experience rising delinquency affecting their revenue. On the other hand, credit unions also experienced high liquidity because releasing loans have slowed down.
Ms. Pattaripan "Thum" Pongwat, the MSME consultant and key speaker of the workshop introduced the concepts of business development. She shared her 30 years of experience in assisting entrepreneurs in product development and innovation in Thailand and the Philippines. Ms. Thum demonstrated some products she innovated using local materials and applying the ingenuity of people, including people with disabilities.
She suggested that cooperatives should assist its members to become successful MSMEs by providing them market knowledge, promoting the value chain, linking them to technical skills providers, and training them in managing their business. These all can be done only if the credit union has institutionalized a Business Development Service Unit.
After the workshop, the participants are tasked to prepare a profile of members engaged in business and select entrepreneurs they will assist to scale up their business.
Credit unions should support the development of MSMEs to uplift the living standards of members, especially those who severely suffered from the impacts of COVID 19, according to ACCU CEO Leni San Roque.