Philippine SME Policy
The Government of the Philippines (GOP) envisions an SME sector that is approaching a status of being globally competitive. Following this vision, GOP wants domestic industries to raise efficiency and product quality to compete with international standards both in export and in local markets. The private sector should lead this process. For government this calls for new regulatory and development-oriented mechanisms to balance the risks of global integration.The promotion of SME addresses the main weaknesses of Philippine SME, which are low product quality, productivity and production technology.An integrated strategy for SME promotion is framed by
- The SME Development Plan 2004-2010,
- The Magna Carta for Micro, Small and Medium Enterprises (MSMEs) 2008 R.A. 9501,
- The Barangay Micro Business Act of 2004, R.A. 9178
GOP programs and services aim at improving the business climate, developing more entrepreneurs, improving SME competitiveness, strengthening SME support institutions, and upgrading workers' skills, i.e. by enhanced demand-driven vocational training. SME promotion is seen as to attain its objectives only in accordance with corresponding action in related areas, i.e. by improving access to finance, by promoting compliance to international environmental standards and by ensuring responsive vocational training schemes.
