Officials of the Board of Investments (BOI) are giving would-be entrepreneurs more reasons to start their own business, and in so doing help spur the country’s economic growth.
Entrepreneur refers to a person who has decided to take the risks involved in running his own firm or business.
“For every peso you invest in a business there is a multiplier effect that amounts to P7.00 worth of economic activity,” BOI governor Geronimo Sta. Ana told members of media in an interview during the orientation seminar in the city on the 2010 Investment Priorities Plan.
The BOI went on a seven-city roadshow to orient investors on the industries being promoted by the agency, and to conduct a one-day processing for micro and small enterprises in those cities. The Board went to Pangasinan, Naga, Cagayan, Bacolod, Cebu, Davao and Tagaytay.
Sta. Ana said small and medium enterprises are the backbone of the country’s economy. And to help develop the countryside, BOI will give more incentives to investments in the rural areas, such as a six-year tax holiday in contrast with the four-year tax holiday granted to investments in Metro Manila.
“We also want to make it easy for small businesses to register and enjoy the incentives through the one-day processing,” he said. BOI 11 chief Gil M. Dureza said they were able to approve up to 15 projects worth P8 billion during the one-day processing, including the P4 million worth of banana chips processing business. Other projects that have been approved include a palm oil and rubber project in Sultan Kudarat.
Cities in the country like Davao should harness domestic investments. He said Chinese taipans, like the Gokongweis, are investing their money in the country.
“People think money is safer in the banks or inside the house—but, why not invest your money in business instead and help create employment and improve the economy?” he said.
Sta. Ana cited the China experience where direct business investments resulted to an even greater impact on its gross domestic product. The GDP represents the country’s economic growth and is an indicator of the country’s economic health.
“Growing economies, like China, achieved greater heights of economic development by encouraging more foreign and domestic direct investments in their countries,” he said.
By becoming more market oriented, he said, China experienced a rapidly growing private sector that led to its remarkable economic growth. China, which has a GDP of $4.909 billion, has expanded at a rate of 10.30 percent annually. At this rate, it is already considered next to the US economy.
“Investors want peace and order and stability and if you can provide that then you can be sure of more investments,” he said. [Lovely A. Carillo]
