MICRO, SMALL AND MEDIUM ENTERPRISE DEVELOPMENT (MSMEs) Program
- Helps create sustainable jobs in the communities by assisting community enterprises, small and medium-scale entrepreneurs with the needed financing and business development services. The clients are also taught to save so they can build up their asset base. Families also receive life and disability insurance against sudden death and illnesses. The entrepreneurs also benefit from business development services training, character development program, health and family education.
Specifically, the entrepreneurs receive the following development finance services:
Microfinance. APPEND provides financial products to micro and small scale-entrepreneurs so they can expand their existing businesses through loans and capital build up or savings.
The APPEND partners directly give small loans to entrepreneurs from Php2,500 (USD46) to PhP300,000 for micro-entrepreneurs and PhP150,000 to PhP300,000 for small and medium-sized enterprises. This is payable in six months to two years. Loan clients are mostly women, for they are the ones who usually stay home to take care of their family. With the small loan, they continue to take care of their family and at the same time, set up or build up their small businesses to add to their family's income. With the additional income, they are able to provide more nutritious meals, send their children to school and provide better clothing and shelter for their family. As the enterprise grows, it also provides employment for others and even encourages the establishment of other small businesses in the community. Thus with a small loan, a family's life is improved, and a community's economic progress is also spurred.
Capital build-up and savings component
Allows the micro-entrepreneurs to increase their financial stability and ability to withstand unexpected circumstances. This stability becomes the foundation to a better future for the family.
These are life, accident, property insurance coverage to the members (micro-entrepreneurs) and their family members. Micro-insurance gives protection and relief to the members and their families against distress, calamities and death, something they are unable to do so before because of their financial limitations. In the event of the micro-entrepreneur's demise, the family receives financial assistance. APPEND provides insurance through (1) Pinoy Ako Insurance Services – an insurance agency owned by APPEND and 8 partners. Fifty percent of the net income of Pinoy Ako Insurance Services goes to fund the education of clients’ children; (2) Mutuality Model – Mutual Benefit Associations (MBAs) are insurance schemes run on a "not-for-profit" basis, which exist for the purpose of helping their members. MBAs are regulated by the Insurance Commission and are required to engage the services of an actuary for the purpose of their insurance functions.