th images menu user export search eye clock list list2 arrow-left untitled twitter facebook googleplus instagram cross photos entrep-logo-svg

How SMEs play an important role in the Philippine economy

Small businesses employ 70 percent of the country\\\'s workforce
By |

Micro, small and medium enterprises (MSME\\\'s) are sometimes not appreciated for their invaluable contribution to the Philippine economy.

 

These types of businesses account for 99.6 percent of all registered businesses in the country and employ 70 percent of the country\\\'s workforce. MSME\\\'s also produce about 30 percent of the Philippines\\\' total output.

 

“MSME\\\'s are the real backbone of our economy. People do not realize that your businesses have greater direct impact on Filipinos\\\' lives than do big players,” said Senator Edgardo J. Angara during the launch of the  Philippine Home-Based Business and Career Summit Expo 2011 last August 12 at the SM Megatrade Hall.

 

 “But more than this, MSME\\\'s provide opportunities to those who could not have started businesses otherwise. Studies have shown that through MSME\\\'s, disadvantaged members of society, like the elderly and disabled, are able to earn income. In fact, about 30 percent of the poor in our country have turned to entrepreneurship to get by,” he added

 

Angara also encouraged MSME\\\'s to continue improving the quality of novel and original products that cannot be matched by commercial players.

 

To become more competitive, Angara advised small-scale entrepreneurs to link up with universities and the Department of Trade and Industry (DTI) to help them make new products and enhance existing ones through packaging, marketing and quality assurance, as well as with the Department of Science and Technology (DOST) for new technologies to enhance productivity.

 

An Asian Development Bank (ADB) study shows that 50 percent of innovations during the 20th century were generated by new and small firms.

 

 “Universities provide vital incubation support for start-ups, and are great sources of skills training, product improvements and process enhancements that will let you boost your business potential,” said Angara.

 

Angara also assured MSME\\\'s of the support of the Congressional Commission on Science, Technology and Engineering (COMSTE), which he chairs. “We have begun supporting several business incubation ventures with the University of the Philippines, and we will continue doing this. We are also looking into policies that could provide additional support to MSME\\\'s.”

ADVERTISEMENT - CONTINUE READING BELOW

 

Click here for articles on business ideas and opportunities

Latest Articles

Close