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The
government is bent on pouring support to strengthen small and medium
enterprises (SMEs), which account for 60% of total exporting firms
and 53% in employment generation in the country.
One
such support is a program aptly named SETUP or Small Enterprises
Technology Upgrading Program DOST launched in 2002 by the Department
of Science and Technology (DOST).
“SETUP
is designed to benefit SMEs through infusion of relevant technological
innovations and support services. Thus, its ultimate aim is to create
stable employment, especially among the rural poor,” DOST
Secretary Estrella F. Alabastro said.
As
of 2005, SETUP has supported 431 projects, investing a total of
P179.36 million to SMEs in the food processing, furniture, fashion,
gifts, toys, houseware, marine and aquatic resources, horticulture,
and metals engineering industries. Its 751 beneficiaries have created
22,525 jobs.
SETUP’s
support comes in the form of technology upgrading and acquisition,
packaging and labeling, technical consultancy services, product
standards development, and identification, training, and networking
assistance.
Filipino-owned
local SMEs doing business in priority sectors may apply under the
program by sending letters of interest to the DOST office in their
region. The letter has to outline current problems, improvements,
and potential technological intervention needed. If viable, the
application is endorsed to the program management office for another
evaluation and final approval.
Boosting productivity
Under SETUP, technological interventions improved the productivity
of beneficiaries at an average of 515%. SME’s that shifted
from manual to technology-based production reported the highest
income increases.
Julie
Ipac, a woodcraft entrepreneur from the North revealed that after
SETUP granted him precision machines, his production time was cut
by 75%. “When we were still doing things manually, we could
only produce one simple mahogany door in two days. But when SETUP
provided us machines such as dryers, drills and planers, we can
now finish the job in just a few hours,” he said.
Agoo
Chichacorn’s crunchies not only grew in volume and quality
but also extended its market and enhanced its labeling through SETUP’s
technology intervention and packaging design support. With a P10,000
capital eleven years ago, it has now acquired more than P2 million
current assets through hard work and technology upgrading.
Beneficiaries
also make an impact in their communities by creating employment
opportunities. Pandayan Furniture, for one, following its expansion
to more affluent markets because of its products’ distinct
quality, has increased the number of its employees from four to
45.
Technology
to help spur the economy
“Modernizing the production line of these SMEs is the key
in improving their operation in terms of productivity, product quality,
manpower development, cost efficiency, waste management, and other
operation related activities,” Sec. Alabastro said. “This
helps stimulate the country’s economic growth.”
Moreover,
technology upgrading has stamped global competitiveness to the beneficiaries’
products. Some of the SMEs slug it out in the export market bringing
in precious dollars to the economy. Aurora Hats and Crafts’
pretty sabutan hats, mats, and bags are in demand in Germany, Italy,
Spain, and the US where Asian ethnic fashion is popular.
DOST
is opening up for investors more opportunities with 249 technologies
ready for commercialization. The list covers technologies in agriculture,
food, ICT solutions, healthcare, construction, home care, biotechnology,
furniture, aquaculture, organic fertilizer, clothing, power generation,
metal works, and herbal medicine among others.
“Right
now, DOST is encouraging the active involvement of both the public
and private sectors in joint technology development and utilization
to increase productivity and product quality through a new policy
that’s more customer-oriented,” Sec Alabastro said.
Other
SETUP services
To date, SETUP has provided a total of 30,252 calibration and laboratory
analyses to 4,272 firms and 9,276 walk-in clients. Technical support
in terms of packaging and label design was extended to 341 projects
that opened new foreign market opportunities due to the products’
better visual look and sturdier packaging materials.
La
Union’s Country Ethnic Furniture; Pampanga’s Country
Accents, Inc.; Cavite’s Neville Alba Handiraft; Compostela
Valley’s Green Bee Banana Chips; and Cebu’s MODS S.A.
Phils., Inc. are among the beneficiaries that gained access to export
markets. (Framelia V. Anonas, S&T Media Service, DOST-STII)
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