Close this search box.

Php 6B budget needed to support MSME on 2017

This is a repost from the original article written by Roy Stephen C. Canivel, a Reporter  from I believe this news is important for MSMEs including myself that is I intended to repost this info to spread the news to my readers. 

THE Department of Trade and Industry (DTI) is targeting a budget of P6 billion for 2017, nearly double the agency’s budget for this year, citing the department’s planned increased support for programs benefiting micro, small and medium enterprises (MSMEs).

“Actually over [P6] billion [was the] request,” DTI Secretary Ramon M. Lopez told reporters on Thursday in the sidelines of the Franchise Asia Philippines 2016 International Conference.

“Karamihan diyan [a considerable part of the budget is for] SMEs, and we will do ASEAN also next year, so we have to budget for that,” he added, referring in part to the country’s once again hosting a gathering by the Association of Southeast Asian Nations, the summit next year.

“I can’t give you a number yet, it’s being worked out, but it’s on the budget,” Mr. Lopez said. When asked about the budget share for MSME projects, he said: “Basta malaking part iyan. Kasi iyun ang matrabaho eh [That’s a big part. Because that needs a lot of work].”

Mr. Lopez, a known advocate for MSMEs, also added that a large portion of the fund would go to shared service facilities which equip MSMEs with machinery and skills like Negosyo centers.

As of July, there are about 250 Negosyo centers nationwide, with 70 more expected in the next 100 days. This government initiative that seeks to assist Filipinos in establishing MSMEs.

Meanwhile, franchisers called for more collaboration among companies to discuss plans in preparing MSMEs for international expansion, a committee member of the Philippine Franchising Association (PFA) said on Thursday.

“Since we are operating more than 11 years now abroad, we are operating in five countries already, we might as well share those experiences to our fellow Filipino businessmen [as they prepare] themselves well going outside the Philippines,” Marvin Q. Da Silva, a committee member of the PFA, said in a roundtable conference in Franchise Asia Philippines 2016 in Pasay City.

“We will take it up first with a meeting and then with PFA. Range of four to eight weeks,” Mr. Da Silva said in a text message.

Mr. Da Silva, who is also the International Division General Manager of Potato Corner, said they are using PFA as a venue to share their experiences in international expansion and plans.

Franchisers see different boundaries faced by companies in planning expansion to other countries such as supply chain and language barrier.

“The biggest barrier right now is supply chain. We have to make sure that our products [go] there without deteriorating [in] quality. Second would be language. Our menu and way of trainings are in English,” Mr. Da Silva added.

For government intervention, the Department of Trade and Industry (DTI) is willing to help homegrown businesses in venturing into international expansion.

“Our DTI gives free services. There’s a commercial attaché [named] to us a while ago by [the] Bibingkinitan [franchise]. They were helped by the Department of Trade in [the] different embassies. Our DTI and consuls are just waiting for somebody to knock,” Mr. Da Silva added.

Mr. Lopez for his part said the PFA already serves as a one-stop-shop for businesses planning to expand abroad, adding that the government is extending its hand in aiding these businesses [in terms of] exhibit costs.

“The one we are talking about a while ago are trade fairs abroad. That is the support that we give. Extending a bit, helping them in the exhibit cost, that is what they want,” Mr. Lopez said in part at the sidelines of the trade show.

Mr. Lopez in his keynote speech noted the Philippine franchise sector’s current 1,300 franchises and 140,000 franchise outlets. — additional reports by Mac Norhen E. Bornales and Karl Angelo N. Vidal

more insights