BMSMED Programs and SERVICES Ma. Victoria O. Magkalas Officer- - - PowerPoint PPT Presentation

1 1

BMSMED Programs and SERVICES

• Ma. Victoria O. Magkalas

Officer- in- charge, Management Services Division Bureau of Micro Small and Medium Enterprise Development

2 2

Definition of SMEs

Philippine SMEs are categorized based on asset size (excluding land) and number of employees. Category Total asset value

• No. of employees

Micro enterprises P 3,000,000 or less 1 - 9 Small enterprises P 3,000,001-15,000,000 10 - 99 Medium enterprises P15,000,001-100,000,000 100 -199

Source: Small and Medium Enterprise Development (SMED) Council

3 3

Role and Importance of Philippine SMEs

SMEs play a major role in the country’s economic development through their contribution in the following:

• Rural industrialization;
• Rural development and decentralization of industries;
• Creation of employment opportunities and more equitable income

distribution;

• Use of indigenous resources;
• Earning of foreign exchange;
• Creation of backward and forward linkages with existing industries; and
• Entrepreneurial development.

4 4

Philippine SMEs’ Contribution to the Economy Philippine SMEs’ Contribution to the Economy

SMEs: vital engine of the economy

• 99.7% of total firms
• 30% of value-added
• 70% of labor force
• 60% of all exporters

RP Enterprises (783,065) SMEs 99.7% (780,469)

MICRO 92.0% (720,191) SMALL 7.3% (62,811) MEDIUM 0.4% (2,839)

Large 0.3% (2,596)

MICRO SMALL AND MEDIUM 70% LARGE MICRO SMALL AND MEDIUM LARGE 0.3%

• No. of Establishments

Value added 30% 99.7% Firms 99.7% 0.3 %

Source: National Statistics Office (NSO) 2006

Employment 30% 70%

5 5

n.a. 55.8% 98% Thailand 26%* 40% 94% Malaysia 63.11% 68% 56.7% 47% 30.0% Value Added 99.4%. 75% 88.6% 78.7% 70.0% Employment 99.99 % 99% 99% 99% 99.7% SME Establishments Indonesia China Japan South Korea RP *Manufacturing only

Source: JICA & various sources

Philippine SMEs Compared to Asian Counterparts

6 6

Distribution of SMEs by Region, by Ranking

20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 N C R C A L A B A R Z O N C e n t r a l L u z

• n

W e s t e r n V i s a y a s C e n t r a l V i s a y a s I l

• c
• s

R e g i

• n

D a v a

• R

e g i

• n

B i c

• l

R e g i

• n

N

• r

t h e r n M i n d a n a

• S

O C C S K S A R G E N Z a m b

• a

n g a P e n i n s u l a C a g a y a n V a l l e y M I M A R O P A E a s t e r n V i s a y a s C A R C A R A G A A R M M

Source: National Statistics Office (NSO) 2005

7 7

Distribution of SMEs by Industry

Source: National Statistics Office (NSO) 2006

Wholesale and Retail Trade 50.1% Manufacturing 14.9% Hotels and Restaurants 12.6% Others 10.9% Real Estate, Renting and Business Activities 5.8% Other Community, Social and Personal Service Activities 5.7%

Top 5 Industry Groups

8 8

Distribution of SMEs in Manufacturing

Source: National Statistics Office (NSO) 2006

Manufacture of Food Products and Beverages 47.2% Others 17.6% Manufacture of Wearing Apparel 13.4% Manufacture of Fabricated Metal Products except Machinery and Equipment 11.2% Manufacture and Repair of Furniture 6.2% Manufacture of Other Products Non-Metallic Mineral 4.4%

Top 5 Manufacturing Sub-sectors Top 5 Manufacturing Sub-sectors

9 9

• 1. Creating an enabling environment for business
• 3. Productivity and structural limitations
• Limitations relating to funding sources
• 4. Issues on access to markets

Issues and Challenges Facing Philippine SMEs

10 10

SMED Council - created by RA 8289

• Primarily responsible for the promotion, growth,

and development of the Philippine SME sector.

• One of its main functions is to formulate a

comprehensive strategy to promote SMEs and integrate it into other Philippine development plans.

SMED Plan 2004 – 2010

• Launched in July 2004
• Meant to help in the graduation of MSMEs to

higher levels of business undertakings and upgrading their productivity and value-added capabilities

• Endorsed by PGMA



Consistent with national SME agenda



Major role in target of creating 6 to 10 million jobs by 2010



Expected to help improve SME GVA from 32% to 40% and create 3.4 million jobs by 2010.

Le Legal Basis - RA 8289 or the Magna Carta for Small Enterprises (enacted 1991, amended 1997)

SME Development Plan 2004-2010 SME Development Plan 2004-2010

11 11

Vision

To create globally competitive SMEs that have adapted themselves to the new industrial economic environment.

Long-term Goal

To significantly increase the SME sector’s contribution to the country’s economic growth and social development. In quantitative terms, this means keeping SMEs apace with the performance levels of their ASEAN and Asian counterparts in terms

• f

value added, employment, revenue generated and sales.

SME SME Development Plan 2004-2010

Development Plan 2004-2010

12 12

SME GVA increased from 30% to 40% and 3.4 million Jobs created by 2010

Enhance Productivity and Efficiency (P&E) Expand Access to Markets (A2M) Empower by providing Access to Finance (A2F) Enable by reforming Business and Investment Enabling Environment (BIEE) AG 6: Industry Productivity and Quality AG 8: Entrepreneurship Training AG2: SME Counseling and Advisory and Upgrading of SME Centers AG 1: SME Information Support AG 3: Facilitating Partnership / Linkages for Competitive Support AG 4: Enhanced Support for Trade Fairs and Access to Market Services AG 5: Product Development and Design Services AG 7: Information Technology Appreciation and Application AG 9: SME Financing Support Programs ) AG 10: Streamlining of Business Regulatory Requirements AG11: Advocacy of SME Related Laws AG12: SME Institutions Restructuring

13 13

SME Development Plan 2004-2010

Four (4) Outcome Portfolios

• 1. Expand Access to Markets

Activity Group (AG) 1: SME Information Support

SME Information Materials

• Do You Want to Go Into Business
• Programs and Services for MSMEs
• Financing Programs for MSMEs
• Catalog of Information Materials
• Guide to the BMBEs Act of 2002
• Glossary of Business Terms
• Directory of Common Service Facilities
• Stoking the Fire of Filipino Entrepreneurs
• Streamlining of Business Registration in

LGUs

14 14

SME Development Plan 2004-2010

Four (4) Outcome Portfolios

• 1. Expand Access to Markets (cont.)

AG 3: Facilitating Partnership/Linkages for Competitive Support

• One Town One Product (OTOP) Philippines is a priority program of President Arroyo

to promote entrepreneurship and create jobs. Through OTOP, local chief executives of each city and municipality take the lead in identifying, developing and promoting a specific product or service, which has a competitive advantage. It supports MSMEs to manufacture, offer and market distinctive products or services through the use of indigenous raw materials and local skills and talents.

• Market matching
• Raw materials sourcing
• Domestic Trade Facilitation
• SME Trade Houses

15 15

SME Development Plan 2004-2010

Four (4) Outcome Portfolios

• 1. Expand Access to Markets (cont.)

AG 4: Enhanced Support for Trade Fairs and Access to Market Services

• The DTI implements national, regional, sectoral as well as international trade fairs

(such as the National Trade Fair or NTF, Manila F.A.M.E. International, International Food Exhibition or IFEX, e-Services Philippines, etc.) to increase the exposure of SME products in domestic and foreign markets, and to improve the distribution of SME products among and between the local manufacturing and trade sectors.

16 16

SME Development Plan 2004-2010

Four (4) Outcome Portfolios

• 1. Expand Access to Markets (cont.)

AG 5: Product Development and Design Services

• Product Designs
• Technology Upgrading Workshops
• Design and Technical Information
• Design Library
• Conduct of Design Competition

17 17

SME Development Plan 2004-2010

Four (4) Outcome Portfolios (cont.)

• 2. Enhance Productivity and Efficiency (P&E)

AG 2: SME Counseling and Advisory and Upgrading of SME Centers

• Eighty (80) SME Centers nationwide are equipped with high grade computer units and

entrepreneurship multimedia instructional materials

• Capacity Building for SME Counselors
• 67 DTI Business Counselors were trained by DTI-BSMED thru UP-ISSI
• Conduct of training for SME Counselors under the JICA-Shindanshi project
• Manual for Managing an SME Center and Business Counselor’s Manual were developed

and disseminated to DTI-ROs/Pos and SME Centers

18 18

SME Development Plan 2004-2010

Four (4) Outcome Portfolios

• 2. Enhance Productivity and Efficiency (P&E) (cont.)

AG 8: Entrepreneurship Training

• Export Management
• Quality and Productivity
• E-commerce
• Skills Training
• 3. Empower by providing Access to Finance

AG 9: SME Financing Support Programs

• SME Unified Lending Opportunities for National Growth (SULONG) Program

19 19

SME Development Plan 2004-2010

Four (4) Outcome Portfolios (cont.)

• 4. Enable by reforming Business and Investment Enabling Environment (BIEE)

AG 11: Advocacy of SME related laws

• Magna Carta for Small Enterprises (RA No. 6977 as amended by RA No. 8289)
• Barangay Micro Business Enterprises (BMBEs) Act of 2002 (RA No. 9178)
• Other Policy incentives under various laws

20 20

Franchising Seminar Franchising Seminar

Conduct of briefing seminars on franchising in various provinces to promote greater awareness of franchising as a business model. The activity serves as a venue for matching potential franchise investors with franchisors.

21 21

MSMED Week MSMED Week

 Under the ammended Magna Carta Law

Under the ammended Magna Carta Law for MSMEs, the MSMED Week is celebrated for MSMEs, the MSMED Week is celebrated every second week of July every second week of July

 Part of the weeklong celebration is the

Part of the weeklong celebration is the conduct of conduct of FREE FREE MSME Briefing MSME Briefing Sessions Sessions on various MSME related topics

• n various MSME related topics

t to inspire, encourage and motivate individuals to go into business as well as to provide knowledge to existing entrepreneurs who want to expand and/or venture into the export business

22 22

12 Revenue Streams 12 Revenue Streams



Fashion (Garments, Accessories and Designs) Fashion (Garments, Accessories and Designs)



Homestyle and Living (Home Furnishing, Gifts, Toys, Homestyle and Living (Home Furnishing, Gifts, Toys, Housewares and Holiday Décor) Housewares and Holiday Décor)



Construction Materials, Engineering Consulting and Construction Materials, Engineering Consulting and Contracting Services Contracting Services



Organic Herbal and Natural Products Organic Herbal and Natural Products



Processed Food and Beverage (Commercial, Halal) Processed Food and Beverage (Commercial, Halal)



Marine Products (Food and Non-Food) Marine Products (Food and Non-Food)



Electronics Electronics



ICT ICT



Motor Vehicle (Parts, Accessories and Assembly) Motor Vehicle (Parts, Accessories and Assembly)



Mineral Products Mineral Products



Logistics Services Logistics Services



Health and Wellness (Spa Development and Retirement) Health and Wellness (Spa Development and Retirement)

23 23

Contact Details: Contact Details: Department of Trade and Industry Department of Trade and Industry Bureau of Small and Medium Enterprise Development Bureau of Small and Medium Enterprise Development

3F Oppen Building, 349 Sen. Gil Puyat Ave, Makati City, Philippines 3F Oppen Building, 349 Sen. Gil Puyat Ave, Makati City, Philippines

• Tel. Nos. 890.4968; 897.7596
• Tel. Nos. 890.4968; 897.7596 

 Fax No. 896.7916 Fax No. 896.7916 Email: bsmed@dti.gov.ph Email: bsmed@dti.gov.ph   Website: http://www.business.gov.ph Website: http://www.business.gov.ph

Thank You.