Incentivizing inclusive business models

In my recent meeting with the Department of Trade and Industry (DTI) led by Secretary Fred Pascual, we explored how we can incentivize large private corporations to adopt inclusive business models. Our aim is to contribute to driving sustainable and inclusive economic development, with the help of private sector participation in micro, small and medium-sized enterprise (MSME) programs and activities.

The core of our conversation revolved around updating government policies implemented back in 2017, which were included in the  2017-2019 Investment Priorities Plan (IPP). We recognized the need to make these policies more appealing to companies, encouraging them to adopt business models that extend meaningful benefits to a broader cross-section of the population.

It was quite a productive discussion. I, for one, was confident that the Kapatid Angat Lahat sa Agri Program (KALAP) could promote inclusive business models among large agriculture companies. Inclusivity is built into the business models adopted by our big-brother companies in KALAP because the program hinges on integrating small farmers and fisherfolk into the value chain of the large corporations. KALAP represents a golden opportunity to reinvigorate the promotion of inclusive business models as the success stories among them already are proof that an inclusive business model works.

Fortunately, existing government policies already offer incentives for such models. The 2017-2019 IPP identifies activities eligible for fiscal and non-fiscal incentives. These policies have the potential to nurture a conducive environment for inclusive businesses and persuade more enterprises to incorporate inclusive models into their operations. The DTI’s Board of Investments spearheaded this initiative, while the ASEAN Business Advisory Council Philippines, where I sit as chairman, also contributed to forming policies.

During our discussions with Sec. Fred, private sector involvement emerged as a central theme. We identified key areas for collaboration. One such initiative involves more frequent consultations with the private sector regarding programs and activities of the MSME Development Council, where I serve as Luzon