Advocates urged to pass social enterprise bill to ease funding constraints, Advocate says
Philippine lawmakers are being urged to enact the Poverty Alleviation through Social Entrepreneurship (PRESENT) Act, a measure aimed at helping social enterprises overcome persistent challenges in accessing finance, a lawmaker said Wednesday.
Marie Lisa M. Dacanay, founding president of the Institute for Social Entrepreneurship in Asia (ISEA), said the proposed initiative will greatly benefit social enterprises, most of which are micro, small and medium enterprises (MSMEs).
He mentioned that many of these companies are struggling to get funding from traditional financial systems due to the lack of collateral.
According to a 2019 Asian Development Bank (ADB) report, about 70 percent of the country’s 164,473 social enterprises are classified as MSMEs.
Under the proposed Central Law, Ms. Dacanay said funding will be easily accessible through measures such as non-consolidating loans and a government-backed guarantee fund.
“We also promote grants so that social enterprises have the capacity to engage with the poor and build capacity to become active participants in the social enterprise value chain,” he said. BusinessWorld on the sidelines of the second day of Inoblasyon: The UP Innovation Summit 2026.
One version of the Senate, Senate Bill No. 734, introduced by Senator Francis N. Pangilinan, seeks to establish a national program that provides incentives such as tax exemptions, special treatment in government procurement, and the creation of a Social Enterprise Guarantee Fund Pool (SEGFP) to reduce risks to lenders.
The initiative also promotes hybrid financing or a combination of grants and loans, and establishes capacity-building support through technical, consulting, and advisory services to help disadvantaged sectors transition to active participants in the formal economy.
Under the bill, a social enterprise is defined as a mission-driven organization that creates wealth while contributing to social welfare and environmental sustainability. These businesses may take different legal forms, including non-stock, non-profit organizations, cooperatives, and sole proprietorships.
Mrs. Dacanay also highlighted the criteria for government investment in the development of economic sectors, which aims to identify areas where poor communities are concentrated and can be major economic contributors.
He added that this strategic support is aimed at a wider value chain to maximize impact by helping thousands of disadvantaged producers rather than focusing on individual small businesses.
“For example, if you look at the economic sector in one area, you can have an impact on 2,000 farmers such as coconut or rice farmers, rather than having one business with ten employees,” said the firm’s lawyer.
By making the bill, Ms. Dacanay said the poverty sector will benefit the most.
As of this writing, several versions of the CENTRAL Act have been introduced in the Senate and are pending at the committee level. His counterpart, House Bill No. 1250, is also pending at the House committee level.
Mrs. Dacanay expressed hope that lawmakers will include a measure among their key bills and pass it within a year or before the end of the current administration. – Edg Adrian A. Eva
