SMEs: Backbone of Philippine economy
Iloilo City (10 August) -- Figures from the Department of Trade and Industry in Reg. 6 show that in 2004, Small and Medium Enterprises (SMEs) had a total of 275 business names registered, with trading (both retail and wholesale) getting the bulk of registrants at 87 followed by Private services at 46 and 43 for Financing.
Small enterprises are those which have a capitalization of above three (3) million to fifteen (15) million. Considered medium enterprises are businesses with capitalization of above fifteen (15) million to one hundred (100 ) million. Micro enterprises are business with less than three (3) million capital while those considered large as those with more than one hundred (100) million capitalization.
Nationwide, the Department of Trade and Industry reveals that 99.6% of all registered firms belong to the Small and Medium Enterprises sector, thus providing the backbone of the Philippine economy.
SMEs also contribute 32% to the economy and employs about 69.9% of the entire labor force.
To further assist the SMEs, Government has initiated the National SME Development Plan as a priority strategy for developing the SME sector intended to provide a strong domestic supply base for globally competitive industries.
The Plan fuses together the different agencies of the Philippine Government with the Department of Trade and Industry as the lead agency for the implementation of the Plan. Other bureaus involved are Bureau of Domestic Trade Promotion (BDTP), Bureau of Small and Medium Enterprises Development (BSMED), Philippine International Trading Corporation (PITC), Philippine Trade and Training Center (PTTC), Product Development and Design Center of the Philippines (PDDCP), Regional Operations Group (ROG), and the Small Business Guarantee Finance Corporation (SBGFC).
The Plan hopes to achieve the expansion of the enterprise by graduating micro and small enterprises to higher levels of business undertakings and upgrading their productivity and value-added capabilities. (PIA-6) [top]