THE PHILIPPINE strategy for developing small and medium enterprises (SMEs) has been implemented with moderate success, a report from the Philippine Institute of Development Studies (PIDS) said.
Using the Association of Southeast Asian Nations Small & Medium Enterprises (ASEAN SME) Policy Index, the paper "Toward Competitive and Innovative ASEAN SMEs: Philippine SME Policy Index 2012” by PIDS senior research fellow Rafaelita M. Aldaba and economics professor Fernando T. Aldaba, posted on the PIDS Web site on Monday, rated the Philippines’ SME policy development and implementation in eight policy areas.
On a six-point scale with 1 as the lowest and 6 as the highest, the country was rated:
- 3.7 in institutional framework,
- 3.79 in access to support services,
- 2.96 in cheaper and faster start-up and better legislation and regulation for SMEs,
- 3.6 for technology and technology transfer,
- 4.4 in international market expansion,
- 3.7 in promotion of entrepreneurial education, and
- 4.67 in more effective representation of SMEs’ interest.
The country’s average score was 3.8.
The study noted the achievements of SME development in the Philippines such as the streamlining of business registration requirements in 100 cities and municipalities in Central Luzon, the creation of 6.5 million direct and indirect jobs, and the creation of a magna carta for MSMEs.
The study recommended that concerned government agencies strengthen and deepen their coordination, simplify the overall business registration process, and formulate a framework for the promotion of entrepreneurial learning.
The government must also "provide adequate budget and effective monitoring and evaluation system for these specific programs promoting entrepreneurial learning,” the study said. --
