MANILA: A third of the Philippines' population lives in poverty, and encouraging social entrepreneurship could be one solution to improving their lot.
Three years ago, Ms Guia De Vera could hardly make ends meet.
Her husband was earning US$8 a day working as a driver, and it wasn't enough to feed her five children.
Their lives changed when she became a weaver at GKonomics.
Now, not only is she able to provide for her family, she even has extra cash for savings.
Ms De Vera said: "It was very hard to budget my husband's meagre salary. But now, things have changed. Before, we did not have money to go out. Now, every Sunday, we have extra money to go to the mall with my family."
Ms De Vera is one of 30 weavers employed by GKonomics, a non-government organisation that has started various social enterprises in impoverished communities.
Ms Pinky Poe, finance director at GKonomics said: "In our country, all the development has really left a huge majority of the population behind... traditional business models do not seem to be working for everybody.
"Normal business planning focuses on profit maximisation. Here, business planning is maximising labor and still being profitable. That's where the redefinition comes."
Social enterprises like this are now helping to improve the lives of millions of poor Filipinos. That is why government and private institutions are now working together to help create more social enterprises that will not only empower the poor but help improve the country's economy as well.
GKonomics' community of weavers has evolved into a US$35,000 enterprise.
Their products are sold in many countries, including the fashion capital of Paris.
Each weaver can earn as much as US$115 a week.
"We pay way higher than normal rates. Seventy-five per cent of our selling price goes to direct labour.
"We are always asking ourselves how we can increase the direct labour employment. People ask us, 'why don't you get a cutting machine and just rush the cutting?'. But we want to hire four people rather than buy a cutting machine," said Ms Poe.
Organisations like GKonomics show how social enterprise can help lift people out of poverty.
With 30 million Filipinos living below the poverty line, many hope the government will give tax incentives to entice more people to engage in business ventures that help the poor.
- CNA/cc
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