Digital exclusion remains a significant barrier for the entrepreneurial poor, preventing them from participating in digital commerce and escaping the poverty trap. To address this, the government must foster a supportive environment that encourages digitalization rather than hindering it with excessive regulations.
Joey Bermudez, founding chairperson of Iskaparate, a platform for micro, small, and medium-sized enterprises (MSMEs), argues that regulatory impositions and bureaucratic red tape stifle digital sellers. For example, he cites the requirement by some local government units (LGUs) for home-based businesses to have a separate physical office before they can be issued a business permit.
To empower its members, Iskaparate provides digital training courses and is expanding its suite of apps and tools to help sellers manage their online businesses more effectively.
The power of digital platforms
During Iskaparate’s fifth anniversary, economist Dr. Bernardo Villegas, a professor at Harvard and IESE Business School, spoke to the ‘mompreneurs’ (nanays) of the platform. He urged them to strive for excellence and meritocracy, never settling for mediocrity. Villegas emphasized that digital platforms like Iskaparate democratize market access, giving sellers a powerful advantage.
He believes the future belongs to this kind of trade, where physical distribution is ‘unbundled’ from the curating of trade. This model empowers small entrepreneurs who can identify and fill market needs with hard work and innovation. Villegas commended Iskaparate for its presence on platforms like Shopee, recognizing that this is ‘definitely the future.’
Iskaparate’s support system
Iskaparate offers a variety of support mechanisms for its sellers:
Assisted Vendors: For those who feel inadequate to manage their own stores, Iskaparate provides a store on its platform that is managed for them.
Resellers: The platform also supports individuals who don’t have their own products but are skilled at selling. They can buy products wholesale from Iskaparate’s business-to-business (B2B) partners and sell them within their neighborhoods and communities.
Social Media Sellers: Iskaparate accommodates sellers who aren’t yet ready to use a website but are comfortable selling on platforms like Facebook. Bermudez noted that these sellers can leverage Iskaparate’s dedicated Facebook channels to market their products.
Bermudez is committed to training sellers who are not yet familiar with digital platforms, hoping to boost their digital proficiency to a confident level. For those who are ‘totally digitally scared,’ Iskaparate provides guidance and training through its Iskaparate Academy trainees.
The Philippine government also offers extensive support for MSMEs through agencies like the Department of Trade and Industry and the Small Business Corporation (SB Corp), providing assistance with everything from financial aid to business development and training.