Protection of MSMEs, workers against AI urged

GO Negosyo founder Joey Concepcion said upscaling of micro, small and medium enterprises (MSMEs), as well as upskilling workers, was crucial to their survival against artificial intelligence (AI) encroachment.

He said a robust MSME sector would result in more businesses and a workforce ready for the challenges of AI and automation.

“If we get to the largest sectors, to the poorest, then our economy will grow rapidly, and more jobs will be created, and wages will increase, not because labor mandates us to increase wages but because there will be a supply shortage in labor,” Concepcion said during the 3rd Metro Manila Cooperative Congress and 2024 Arangkada Philippines Forum.

He added cooperatives create conditions for successful entrepreneurship by providing access to mentorship, money and markets to their members.

“These are the three pillars we promote in our advocacy at Go Negosyo. The bigger cooperatives mentor the smaller cooperatives, and as they do, they grow and become stronger,” Concepcion said.

“The key is good leadership; people who lead cooperatives should have the entrepreneurial, marketing and digital skills necessary today,” he added, noting that the estimated total assets of the 1.8 million-strong community of cooperatives were P179.3 billion.

“Cooperatives provide the scale that small entrepreneurs need. We can eradicate poverty by helping MSMEs scale up,” Concepcion said.

Department of Trade and Industry data showed that MSMEs comprise 99 percent of enterprises in the Philippines, generating 65 percent of jobs.

“Upscaling our MSMEs will have a huge impact because these efforts will trickle down to the grassroots and benefit more communities in more parts of the country,” Concepcion said, adding access to capital and public-private partnerships continued to be critical in achieving MSME growth.

“There’s a lot of effort being done to encourage the microfinance institutions to increase lending, while the public-private sector partnership is helping us in the private sector reach out to the grassroots,” he said.

Concepcion recognized the help of the private sector in streamlining entrepreneurship curriculum and training that encompass digital skills based on industry standards.

“This makes the effort of upskilling more efficient and effective because industry itself is giving guidance,” he said.

The Cooperative Congress, led by its chairman Fr. Anton Pascual, was organized by the One Cooperative Federation, Union of Metro Manila Cooperatives, Regional Cooperative Development Council-National Capital Region, and Cooperative Development Authority.

The Arangkada Forum, on the other hand, was organized by the Joint Foreign Chambers of the Philippines.