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Current Situation of SMEs and the SME Development Plan

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Current Situation of SMEs and the SME Development Plan 24 May 2004 SMEs make up 99.6% of all companies. SMEs contribute 32% to total GDP. SMEs generate 70% of all ... – PowerPoint PPT presentation

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Title: Current Situation of SMEs and the SME Development Plan


1
Current Situation of SMEs and the SME Development
Plan
  • 24 May 2004

2
SMEs make up 99.6 of all companies.
Firms
Large 2,958
Medium 2,923
Small 61,762
Micro 743,949
TOTAL 811,592
Assets Php M Employment
Large gt 100 gt 200
Medium 15.1-100 100 199
Small 3.1-15 10 99
Micro lt 3 1-9
0.4 Large
0.4 Medium
Source NSO 2001
7.6 Small
99.6 SME
91.6 Micro
3
SMEs contribute 32 to total GDP.
0.4
99.6
68
32
Value-Added
Firms
Source NSO 2000
Source NSO 2001
4
SMEs generate 70 of all employment.
0.4
99.6
30
70
Employment
Firms
Source NSO 2001
Source NSO 2001
5
They contribute 70 of jobs but only 32 of value.
Employment
Source NSO 2001
68
30
0.4
99.6
70
32
Value-Added
Source NSO 2000
Source NSO 2001
6
RP SME productivity is low compared to other
Asian countries.
Malaysia Thailand RP South Korea Japan China Indonesia
SME Establishments 94.4 98 99.6 99 99 99.7 99.995
Employment 40.4 55.8 69.1 69 88 74 99.04.
Value Added 26 n.a. 32.0 46 56 60 63.11
Source JICA various sources
7
We have been trying to push the economy from the
top.
8
But to move the economy faster, we also need to
push from the base.
9
Thus, the National SME Agenda.
  • P/GMA made SME Development a priority in her
    8-Point Program and DTI was tasked as lead
    agency
  • DTI formed SME Core Group to include relevant
    bureaus/agencies

10
A comprehensive integrated approach is needed.
Finance
SME Forums
SB Corp.
SME
Marketing
Training
Advocacy
SME Caravans
BSMED
PTTC
BDT
Product Devt/ Technology
SME Centers
PDDCP/DOST
ROG
11
Accomplishments in 2003
  • SULONG program (Finance)
  • P26.76 B to 281,229 SMEs
  • SME Opportunities Caravans
  • 31 Caravans reaching 2,875 beneficiaries
  • Business Counselors in 25 priority SME Centers
  • 60 DTI Business Counselors (BCs)
  • 120 Volunteer BCs MAP, FINEX, PICPA
  • Training Compendium

12
Accomplishments in 2003 (contd)
  • SME Database
  • Promoted products in domestic foreign markets
  • Product development services
  • Assisted 2,169 SMEs on product design and
    packaging
  • Directory of common services facilities
  • BMBE Law (RA 9178)

13
Example Arlyns Handicrafts
  • Ifugao Province
  • Design, Marketing, Finance
  • Assisted by Design Center of the Philippines
  • Joined National Trade Fair
  • SB Corp. approved P 2 M loan
  • Labor force doubled from 35 to 60
  • For 7 months

Source NSO 2002
14
Example Tito Mikes Food Company, Inc.
  • HACCP, US-FDA, BFAD certified
  • Showcase for hygiene and cleanliness
  • Michael Cases
  • Cases was a project engineer in Brunei
  • Started 1999, Dipolog City
  • MSG-free Sardines in Glass Jars
  • Production increase of 1400 with only 150
    increase in labor over 4 years

Source NSO 2002
15
Vision of LT SME Development
National Vision To create globally competitive
SMEs in the new industrial economic environment.
Built-up distinctive competencies
Excellently managed enterprises Served by pool
of professional partners
Harness efficient technologies Establish
relationship partners
16
Strategic Development Goals
  • To increase the contribution of SMEs as a primary
    engine of growth
  • To spur the Philippine SMEs to be at par or
    better than the performance level of comparable
    Asian enterprises in terms of value added,
    employment, number of establishments, and export
    volume

17
LT Plan to institutionalize SME Development
  • A strategic development plan (2004 2010)
  • Builds on the gains of the National SME Agenda
  • Intensified program
  • 3-year roll-out period
  • Evaluation process
  • Re-programming process after 2.5 years
  • 8 Strategies over a 3-pronged approach
  • Enterprise level
  • Sector level
  • Broad-based level

18
Enterprise-level Strategies
  • Provide comprehensive focused support to
    enhance managerial technological capability
  • Provide business opportunities for development of
    new ideas that shall promote diversification of
    the industrial structure

19
Sector-level Strategies
  • Promote sustained operations thru directed sector
    services
  • Develop promote services that will support
    industrial linkages between local SMEs and
    leading industries

20
Broad-based Level Strategies
  • Improve access of SME to financing
  • Promote an enabling business environment
  • Improve implementation of SME policies and
    regulations
  • Improve access to programs and capacity-building
    for institutions

21
2004 Priority Programs
  • SULONG Target P26.7B
  • SMED Week 2004
  • Formal launch of SME Long Term Development Plan
  • JICA.NET Seminar
  • Raw material showcase
  • SME Expo
  • BMBE Advocacy
  • Starter Kit / Supplier Kit
  • Enhanced SME Database
  • Source book for food manufacturers
  • VBC Program

22
  • For more information
  • www.dti.gov.ph
  • e-mail sme-pmo_at_sbgfc.org.ph
  • tel 830.0285 / 810.5791 local 261
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