Cebu SMEs Urged to Avail P50M Aid

● P50 million has been set aside under DOST’s banner program ‘Small Enterprise Technology Upgrading Program’ (SETUP).

Small and medium enterprises (SMEs) in Cebu are urged to avail of the government’s financial assistance program aimed at boosting productivity and increase competitiveness using technology especially in the light of the economic integration of ASEAN-member countries by next year.

Samuel Parcon, provincial head of the Department of Science and Technology (DOST) – Cebu Office, bared that a budget of P50 million has been set aside under its agency’s banner program dubbed ‘Small Enterprise Technology Upgrading Program’ (SETUP).

SETUP is a nationwide strategy designed to assist SMEs to implement technological innovations to improve operations and enhance productivity, making SMEs more competitive.

“Since 2002, DOST-7 has assisted almost 200 SMEs throughout the region and released an estimated over P200 million in financial assistance,” said Parcon. Parcon said six priority sectors were focused for financial aid since SETUP began in 2002.

These priority sectors identified are food processing, furniture, decors and handicrafts, marine and aquatic resources, horticulture and metals and engineering while two priority sectors were added in 2012, namely health and pharmaceuticals and Information and Communication Technology.

Majority of those that availed of the program in the region belong to the food sector, Parcon said, with 60 to 70 percent while over 50 percent of this sector come from Bohol.

The DOST-7 official said the financial assistance is solely used to purchase equipment that would redound to improving operations, product quality and human resources development to boost productivity output among others.

But Parcon clarified the financial assistance is not totally free.

“The SME is required to pay back the amount in a specified number of years but this will be free of interest,” Parcon said.

With the ASEAN economic integration in 2015, economies in the region need to be more competitive in the global market. Parcon stressed that SMEs in the country should adopt technology transfer in order not to be left behind.

The Philippine economy is fueled by SMEs with over 95 percent of businesses in the country categorized as SMEs.

Parcon admitted there is now more awareness from SMEs on becoming more globally competitive amid the ASEAN economic integration next year.

“In a scale of 1 to 10, I peg the awareness level at six from the previous four,” he said.

For SMEs to be able to avail of the SETUP, they need to submit to the DOST-7 its proposal wherein a template is already in place to make it easier for them to make the feasibility study, said Parcon.