Taytay Sa Kauswagan: Developing micro enterpises for a better economy
TSKI Director Angel de Leon is the one in the middle
* TSKI is a non-stock, non-profit Christian development organization that commits to develop micro enterprises by providing financial assistance as an additional capital to increase productivity and income; create opportunities for employment for the unemployed
It all started with a capitalization of only P2,500 and three employees, which later on grew to a loan portfolio of P720,466,225.03 and 1,518 employees.
Organized by Engr. Jose Tajanlangit, Taytay sang Kauswagan, Incorporated (TSKI) is a non-stock, non-profit Christian development organization that commits to develop micro enterprises by providing financial assistance as an additional capital to increase productivity and income; create opportunities for employment for the unemployed and the underemployed through the expansion of business enterprises. Thus, TSKI is envisioned as a bridge to such opportunities.
Financial support for candle makers
TSKI was established on September 1, 1986 and it started its operations on October 1 of the same year after it was registered with the Securities and Exchange Commission (SEC).
Its Chairman is Demy Sonza while its Executive Director is Angel de Leon, Jr.
TSKI started with granting loans to individuals. Then, in 1994, Dr. Muhammad Yunush, a Nobel Prize winner from Bangladesh introduced the Grameen Method here. He encouraged developing countries to adapt this model of poverty alleviation. "This lends to the poor but on a group level. The Agricultural Council Policy of the Philippines (ACPP), an agency of the Department of Agriculture, provided us loan guarantees and soft loans to cover our overheads. That is why we started implementing the model," de Leon said.
Financing for delicacies
After suiting the method to Filipino culture, the program was called Proyekto sa Kauswagan sa Katilingban (PKK).
TSKI is already on its 20th year and it has 203,747 clients as of December 2006 all over Visayas, Southern Tagalog and Western Mindanao. It has 64 branches, covering 448 municipalities. The activities of its clients are trading, agriculture, services, handicraft, manufacturing and food production. It is the largest micro finance institution in the Philippines.
Apart from financial assistance, TSKI provides business development services to its clients.
"We put up the Kauswagan Packaging Center and Kauswagan Laboratory Facility that will benefit the Ilonggo entrepreneur. Consider that our clients produce native products but we don't know if they are sanitary or not. When we lend them money, they expand. And as they expand, the standards set on them become higher. While we encourage micro entrepreneurs to increase production, we ensure that they can meet the standards set by supermarkets," De Leon said. The laboratory is linked with the Department of Science and Technology Regional Office while the packaging center is located in Rizal Street, La Paz, Iloilo City.
Pottery making
TSKI also provides training and value formation seminars to its members. This aims to build positive character and values among its members. Through the trainings, members and leaders of the community will be empowered. TSKI also gives entrepreneurship training so they are given enough knowledge in managing their businesses. Included in the training are leadership and values formation, project development and management, bookkeeping and entrepreneurship. They also provide livelihood and skills training on food processing, meat processing, bag making, beauty culture, pottery, basic dressmaking, slipper making, candle making, native bag and fish processing.
One of its members, Candido Delgado of the Lanot Candy Factory in Cabatuan is enjoying the break that a loan from TSKI has brought. With a capital of P14,000, he has expanded and received recognition as Micro-Entreprenuer Awardee given by the CITIGROUP, Bangko Sentral ng Pilipinas and Microfinance Council of the Philippines.
Anton is one of TSKI's beneficiaries
GDR Taxi, which now has a fleet of over 60 taxi units, loaned its first cab from TSKI. "They grew until they are no longer considered as a micro entrepreneur," De Leon said.
"Poverty can be fought to oblivion," said De Leon. "Here we have shown that winning the war against poverty can be done. Creating opportunities for the poor is a tested antidote to poverty. We have seen that work in the 80s and now that we are on our 20th year, following the same formula, we are seeing a dramatic change in the poverty landscape."
TSKI recently received the Urban Leadership Award from the Canadian Urban Institute (CUI). This is the second holding of the Urban Leadership Awards. This honors those who have made outstanding contributions to the enhancement of the public realm and the quality of life in the Metro Iloilo-Guimaras area.
There are 10 awardees from Iloilo City. They are Edgar Sia, Henry Baviera, Sonia Cadornigara, Ma. Luisa "Marissa" Segovia, Edgar Sia for individual awardees and Iloilo Dinagyang Foundation Incorporated, Iloilo Washington Commercial, Jaro Archdiocesan Social Action Center (JASAC), SM Waste Market Fair, Taytay sa Kauswagan and Callbox, for the organization awardees.