THERE is no doubt that the country’s economic growth and inclusiveness are hinged largely on the development of the micro, small and medium enterprises (MSME) sector, which comprises 99.6% of the total registered enterprises, provide 65% of the local labor force, and contribute 35% to the GDP.
It is, however, lamentable the country’s MSMEs fare poorly in terms of access to credit, technology and skills compared with peers in other ASEAN member-states, based on a recent study authored by Philippine Institute for Development Studies (PIDS). Moreover, MSMEs, to stay competitive, require other skills and resources such as accounting and finance, marketing, and legal and contract assistance.
That’s why it was opportune time for the Financial Executives Institute of the Philippines (FINEX), through the FINEX Foundation for Entrepreneurs, Inc., to hold the 3rd FINEX SME Forum Series with the launching of an SME Portal. Partnered with LoanPinas, the platform provides entrepreneurs with access to capital as well as access to education and other resources.
A key feature of the portal is that it provides legal assistance to entrepreneurs through the services of MyLegalWhiz (MLW). FINEX partnered with MLW to provide legal assistance to entrepreneurs to help and guide them in dealing with the regulatory and legal framework of the locality and the country as a whole.
Entrepreneurs need legal help and advice when starting a business and running it. Many depend on self-taught insights when the situation involves simple legal matters such as registering a proprietorship or renewing a business registration.
However, as the business grows, more complex legal requirements start to crop up such as those involving contracts, taxation, wages, and conducting business. Some inexperienced entrepreneurs, lacking legal knowledge and assistance, stumble upon costly mistakes and may face lawsuits. Others err on dealing with others which costs them their hard-earned profit. On the other hand, entrepreneurs with enough resources can afford a lawyer on a retained basis and pay a hefty sum of P8,000 to P20,000, which covers contract review and simple legal advice.
Undoubtedly, entrepreneurs need to protect and guide themselves on legal matters. Fortunately, advances in technology, such as cloud computing, have helped make legal services more cost-effective for entrepreneurs and even consumers.
MLW is a cloud and web-based app that processes available legal resources and removes the intimidating legalese to make it understandable in layman’s terms. Its simplest offering is a do-it-for-me legal document which has a catalogue of various commonly used legal forms, from deed of sale to affidavits, which are also useful to ordinary people. Its more comprehensive offering allows an entrepreneur to ask legal questions and the answers are posted within 24 hours.
Interestingly, this legal assistance service is not only helping MSMEs, but also students, human resources practitioners, and even lawyers and the general public in their legal research. It is not intended to replace lawyers’ services but to augment it through fast and up-to-date legal knowledge and information.
It’s only a matter of time before we truly see the full democratization of legal services across MSMEs and the general public.
REYNALDO C. LUGTU, Jr. is a senior executive in an information and communications technology firm. He also teaches strategy, management and marketing courses in the MBA Program of the Ramon V. del Rosario College of Business,
De La Salle University.
reylugtu@gmail.com.
