Displaying items by tag: Business

Industry groups says sugar tax will hurt business, farmers; asks Congress to reconsider

By Shyla Francisco, News5

A sugar farmer is seen in file photo from Phil. Star.
MANILA – The Federation of Philippine Industries (FPI) is opposing the imposition of a P10 per liter excise tax on sugar-sweetened drinks, saying this will hurt the industry.

The proposed excise tax is part of the reform package now undergoing plenary deliberations in the House of Representatives.

According to FPI chairman Jesus Aranza, the excise tax will not only dent the sales of beverage companies; it will also cut into the incomes of farmers.

He explained: consumers turned off by the more expensive sugar sweetened drinks could reduce consumption, forcing beverage companies to reduce the volume of sugar they buy from farmers.

As things stand, the industry hopes that if the excise tax on sugar-sweetened beverages won’t be scuttled altogether, the rate imposed would at least be reasonable.

The farmers may not feel the impact at once, but once the beverage companies scale down their production, farmers will start to suffer, said Aranza.

“Ang gusto ko, wala dapat na tax. If I start bargaining now, parang inaamin ko na. My negotiating stand is huwag [My stand is, there should be no tax. If I start bargaining now, it’s like conceding…My negotiating stand is don’t impose it],” said Aranza.

“If you really want to impose tax, it should be minimal—not at a level that will kill us,” he added, speaking partly in Filipino.


PLDT net income drops 20% in Q1 as wireless revenue shrinks

MANILA -- Philippine telecom giant PLDT said Friday its net income in the first three months of 2017 dropped 20% on the year to 4.97 billion pesos ($99.9 million) as wireless revenue kept shrinking and impairment losses from Rocket Internet continued to hamper the bottom line.

The impairment losses from PLDT's investment in the German e-commerce company reached 500 million pesos in the period, while higher expenses also hindered the telecom's net profit.

PLDT's share price dipped by as much as 4% at the time of the earnings release, but the stock recovered quickly as Chairman and CEO Manuel Pangilinan gave a positive outlook on the company's prospects. The shares closed at 1,755 pesos, up 1.9% from Thursday.

"In the medium term, as far as we could see, the growth of the industry will come from the [fixed-line business], and the wireless would grow at low single-digit numbers," Pangilinan said Friday.

PLDT's net income plunged by as much as 49% in the third quarter of 2016, but an internal reorganization and a shift in focus to the fixed-line business has ameliorated the slump.

Service revenue continued to decline, falling 7% on the year to 35.6 billion pesos. PLDT's wireless segment dropped 16% to 20.8 billion pesos, but the fixed-line business grew 10% to 16.9 billion pesos. On a quarter-to-quarter basis, service revenue dropped 1%.

"For now, we are in this sort of golden age of fixed [line]," the CEO said.

Household and business subscribers, excluding international, now comprise 52% of the company's revenue base, a proportion forecast to reach 56% by 2019.

PLDT shifted focus to fixed line following the exodus of over 5 million customers in 2015 to key rival Globe Telecom, which leads in offering expanded data services. PLDT controls around 70% of the fixed-line market.

Pangilinan said the first-quarter performance puts the company on track to meet its core profit target of 21.5 billion pesos for the year, up slightly from last year's 20.2 billion pesos. Barring "unusual circumstances," PLDT is poised to earn more than 5 billion pesos for each succeeding quarter of 2017, he said.

MIKHAIL FLORES, Nikkei staff writer http://asia.nikkei.com


Women Entrepreneurship: Find Funding to Start, Run and Grow Your Business

By: Shuyi Wang, head of Asian segment strategy, Wells Fargo

Women’s History Month is a great time to recognize the important role of women-owned businesses in the nation’s economy. From tech to fashion to healthcare and manufacturing, there are 9.9 million women-owned firms spanning almost every industry, and representing a third of all small businesses in America. And that number is only expected to grow. According to the latest U.S. Census data, women-owned firms increased more than 26 percent from 2007-2012, and had receipts of $1.4 trillion in 2012.

Despite their successes, women entrepreneurs can face the same challenges as all business owners when it comes to obtaining funding for their businesses. This is especially true for new business owners who are just starting out and may have limited business credit history. There are, however, more small business funding options today than ever, and it pays to be familiar with each one.

Here are five types of funding to explore when starting, running and growing a small business.

SBA Loans and Resources – Whether you’re launching a new business or growing an existing business, the U.S. Small Business Administration (SBA) has a variety of lending products designed to meet the financing needs of businesses of all sizes, including smaller, newer businesses. Through SBA lending, Wells Fargo offers financing to businesses that may not be able to obtain a conventional loan or loan terms that meet their business needs.

The SBA also has a number of programs and resources devoted specifically for women entrepreneurs. A good place to start is with the SBA Women’s Business Centers, which consist of nearly 100 educational centers around the U.S. These centers are dedicated to helping women start and grow their businesses by offering seminars and workshops on various business owner topics, including raising capital.

Business Credit –At some point, most small business owners will see a need for credit as their business evolves and their financial needs change. When used appropriately, credit can fuel opportunities for business growth from helping cover basic expenses to supporting a capital expenditure. There are many types of credit to consider depending on your business financing needs and stage of business. Talk with a business banker to learn what option is right for your business.

Self-funding – Many entrepreneurs fund their businesses themselves, either by tapping into savings, selling assets for cash, or taking on personal debt. While self-funding increases your personal liability, there are several advantages to this method of financing, including having complete control over your business’ financial decisions. As our bankers will tell you, self-funding is also a smart way to show that you are truly committed to succeeding – the more you invest in your business, the easier it will be to secure capital from other sources down the road.

Investors – Another common way to fund a business is through investors. Often, an investor is a family member or friend with the means to invest capital upfront to cover startup costs. While this may seem like a good idea at first, it’s important to set up a formal arrangement to protect your relationship from losses that may result if the business fails. If you want to steer clear of personal connections, then an angel investor may be a better fit. Angel investors are typically affluent individuals or investment groups who are willing to invest in new businesses and ideas. To improve your chances of securing an investor, you’ll need to demonstrate a healthy credit history, and provide a written business plan complete with a strategy for paying back investors.

Crowdfunding –Based primarily online, crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people. While crowdfunding has been around for a long time, social media and online crowdfunding networks comprised of thousands of investors have helped it gain in popularity among entrepreneurs and startups. From donation-based, to rewards- and equity-based options, there are many types of crowdfunding options available. The method you choose may depend on the type of product or service your business offers, cash flow and revenue projections.

As you explore funding options, it’s also important to become familiar with the credit process so you know what to expect – from preparing to apply, applying and managing credit. Wells Fargo’s new Business Credit Center is designed to help inform business owners on the credit process and financing options, and address gaps in their understanding of credit.

No matter how you fund your business, remember that knowledge is power. Take time to arm yourself appropriately so you can confidently navigate the credit journey throughout all stages of your business.

Shuyi Wang is head of Asian segment strategy at Wells Fargo in San Francisco.

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