1 / 35

STRENGTHENING CAPABILITIES OF PHILIPPINE SMEs FOR DOING BUSINESS WITH EU COMPANIES

STRENGTHENING CAPABILITIES OF PHILIPPINE SMEs FOR DOING BUSINESS WITH EU COMPANIES. Prof. Melito Salazar, Jr. & Prof. Quintin Tan. Session Flow. 1. The Overall Situation of Philippine SMEs 2. Identifying the Philippine SMEs and needs 3. Characteristics of the Filipino Entrepreneur

ravi
Download Presentation

STRENGTHENING CAPABILITIES OF PHILIPPINE SMEs FOR DOING BUSINESS WITH EU COMPANIES

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. STRENGTHENING CAPABILITIES OF PHILIPPINE SMEs FOR DOING BUSINESS WITH EU COMPANIES Prof. Melito Salazar, Jr. & Prof. Quintin Tan Chamber of Commerce of the Philippines Foundation, Inc.

  2. Session Flow • 1. The Overall Situation of Philippine SMEs • 2. Identifying the Philippine SMEs and needs • 3. Characteristics of the Filipino Entrepreneur • 4. Philippine SMEs needs at national and firm level • 5. Strengthening SMEs Chamber of Commerce of the Philippines Foundation, Inc.

  3. The State of Philippine SMEs Umbrella of Support Chamber of Commerce of the Philippines Foundation, Inc.

  4. Legal and Institutional Framework • The Magna Carta for Small Enterprises • Defines SMEs • Creates the SMED Council • Stipulates mandatory lending to SMEs • Sets up four guiding principles for SME development -minimum set of rules and simplification of procedures and requirements -encouragement of private sector participation -coordination of government efforts -decentralization Chamber of Commerce of the Philippines Foundation, Inc.

  5. Other Relevant Laws Barangay Micro Business Enterprises Law Special Economic Zones Act Clark and Subic Special Economic And Freeport Zone Tax Reform Act Omnibus Investment Code Less Developed Areas Act Local Government Code Chamber of Commerce of the Philippines Foundation, Inc.

  6. Institutional Framework • The SMED Council • Department of Trade and Industry • National Economic Development Authority • Department of Labor and Employment • Department of Science and Technology • Department of Agriculture • Department of Environment and Natural Resources • Small Business Guarantee and Finance Corporation • Monetary Board of the Bangko Sentral ng Pilipinas • 3 Private Sector representatives from Luzon, Visayas and Mindanao • Secretariat: DTI Bureau of Small and Medium Enterprise Development Chamber of Commerce of the Philippines Foundation, Inc.

  7. DTI SME Core Group BSMBD – coordinates SME policies, programs, projects SBGFC – financing services Philippine Trade Training Center- development and implementation of SME training Product Development and Design Center of the Philippines- product development initiatives Cottage Industry Technology Center (technologies) The Regional and Provincial offices of DTI – provide services to SME associations and SMEs Chamber of Commerce of the Philippines Foundation, Inc.

  8. Other Support Institutions • Other Government agencies (DOST, DOLE, DA, DENR and DILG) • Local Government Units • Private Sector • Chambers of Commerce and Industry • Professional Organizations • Business Sector organizations • Other NGOs Chamber of Commerce of the Philippines Foundation, Inc.

  9. SMED Council Definition of SMES* Micro – P3 million Assets and up to 9 employees Small – not exceeding P15 million Assets and up to 99 employees Medium – not exceeding P100 million Assets and up to 199 employees *January 2003 Chamber of Commerce of the Philippines Foundation, Inc.

  10. 2006 SME Statistics Philippine SMEs are 7.6% of total establishments and account for 33.2% of employment. 25, 347 Philippine SMEs are in the National Capital Region, 7,319 in Calabarzon, 5,338 in Central Luzon, 4,156 in Central Visayas and 3,213 in Western Visayas Philippine SMEs are mainly in Wholesale andRetail Trade (373,721), Manufacturing (105,083) and Hotels and Restaurants (97,936). Chamber of Commerce of the Philippines Foundation, Inc.

  11. Understanding the Filipino Entrepreneur 2006 Global Entrepreneurship Monitor (GEM) Research Consortium Chamber of Commerce of the Philippines Foundation, Inc.

  12. Significant Findings • Four out of Ten Adult Filipinos engaged in business • About half are in early-stage entrepreneurial activity (TEA) • 19.7% (9.5 million) comprise the country’s established businesses. • Mindanao has the highest TEA at 73% while Northern Luzon has the lowest at 30%. • Most of the businesses (53.3%) are in consumer-oriented with 35% of established in extractive. Chamber of Commerce of the Philippines Foundation, Inc.

  13. More Findings Motivated by necessity (54%) and opportunity motivations (37%). Face stiff competition (75%), lack novelty (71%), lack new technology (67%), not employing (63%) and not exporting (77%). Only 8 out of 100 have discontinued a business in the past 12 months. Chamber of Commerce of the Philippines Foundation, Inc.

  14. More Findings • Only 34% have dealings with banks. • Only 17 who receive remittances use them to finance business • Only 1% are non-owner investors Chamber of Commerce of the Philippines Foundation, Inc.

  15. Professionals & Entrepreneurs’ Views Financing most major concern. Need to improve formal and informal education and training towards entrepreneurship and technological infrastructure Chamber of Commerce of the Philippines Foundation, Inc.

  16. SMES: Ripe to do Business • Export-oriented Philippine SMEs • Golden Shell Awardees • MPEX participants • Philippine Trade Training Center trainees • Availees of Product Development and Design Center of the Philippines services • Participants to shows of the Center for International Trade Expositions and Missions • Members of Chambers of Commerce • Those already doing business with EU companies Chamber of Commerce of the Philippines Foundation, Inc.

  17. Domestic Market Philippine SMEs • Members of the Sector Chambers • Clients of the Bureau of Domestic Trade and bureau of Small and Medium Business Development • Clients of Planters Development Bank Chamber of Commerce of the Philippines Foundation, Inc.

  18. Potential Business Relationships Philippine SMEs as subcontractors Setting up of common service facilities Financial linkages Technology transfer Food service and information techonogy sectors EU companies as consolidators High value products from EU Chamber of Commerce of the Philippines Foundation, Inc.

  19. Facilitative Environment for Philippine SMEs to do Business Globally Chamber of Commerce of the Philippines Foundation, Inc.

  20. Government Support Establishment of stable macro-economic growth Liberalized trade environment Increased access to financing Collective support systems to reduce transaction costs Facilitate and develop infrastructure for standardization and quality improvement of SMEs Chamber of Commerce of the Philippines Foundation, Inc.

  21. Other Support Programs Dissemination of information on foreign markets Aggressive export promotion abroad Incentives for product design development, especially those utlizing local materials Reduction of bureaucratic red tape Chamber of Commerce of the Philippines Foundation, Inc.

  22. What SME owners and managers must do to be prepared for doing business globally Chamber of Commerce of the Philippines Foundation, Inc.

  23. Have an Environmental Mindset Chamber of Commerce of the Philippines Foundation, Inc.

  24. Align Products and Processes with Standard Nomenclature and Tools of International Trade Chamber of Commerce of the Philippines Foundation, Inc.

  25. Assure that customer needs and requirements fully understood and translated into correct product specifications and standards. • Align with international quality standards, ISO 9000 series. • Continuous benchmarking Chamber of Commerce of the Philippines Foundation, Inc.

  26. Improve Quality Chamber of Commerce of the Philippines Foundation, Inc.

  27. Build up capability to choose, utilize and develop technology Chamber of Commerce of the Philippines Foundation, Inc.

  28. Actualize Productivity Chamber of Commerce of the Philippines Foundation, Inc.

  29. Competitive and continuous improvement mindset of entrepreneurs Quality and productivity work culture World class technologies Benchmarking Innovation and agility Partnership Use of information techonogies Chamber of Commerce of the Philippines Foundation, Inc.

  30. Fully Utilize E-Commerce Chamber of Commerce of the Philippines Foundation, Inc.

  31. Deal with Recurring HR Issues Family Related Difficulties & High labor Turnover Chamber of Commerce of the Philippines Foundation, Inc.

  32. Preparing Philippine SMEs • Help the Philippine SME entrepreneur to deal with all the issues raised earlier- environment, quality, etc. • Help them to be familiar with EU business practices • Help them put together factual track records • Help them get their products and processes to meet EU standards • Help them get a working knowledge of EU market • Help them hone skills in negotiations. • Help them revise business plans to incorporate EU business dealings • Help them by ensuring the EU companies are acclimatized to the Philippine Business Environment Chamber of Commerce of the Philippines Foundation, Inc.

  33. The Chamber of Commerce of the Philippines Foundation will help: 1. Advocate for a Philippine business environment conducive for Philippine SMEs to do business with EU companies and vice-versa. 2. Provide information through seminars and resource persons 3. Conduct training on needed skills, i.e. negotiation and planning skills. 4. Facilitate business matching 5. Provide business mentors Chamber of Commerce of the Philippines Foundation, Inc.

  34. May the Philippine SMEs and EU Companies Harvest the Fruit of Our Efforts! Chamber of Commerce of the Philippines Foundation, Inc.

  35. Maraming Salamat!Thank You! Chamber of Commerce of the Philippines Foundation, Inc.

More Related