Under-utilized Government Programs

Many entrepreneurs, especially in the provinces, complain of lack of assistance from the government. Fortunately, it has already been realized by the current administration and they prioritized the establishments of systems and programs to help Filipino SMEs. One significant improvement is the coordination of the Department of Trade and Industry(DTI) with the Department of Science and Technology (DOST) that aims to bridge the gap between business and technology. May SME Development Agenda sila dun that provides comprehensive assistance to SMEs.

However, although a large fund is set aside for SMEs, it is not enough to cover the whole Philippines and all SMEs. They could only serve a small percentage and they are selective in giving out funds. It is government money so they try to select those with the best chance of success and those projects that benefits the most number of people. And of course, they do give preference to entrepreneurs who contacts them directly. And since most of their offices are in Metro Manila, entrepreneurs in Metro Manila finds it much easier to contact them than those from the provinces.

How can entrepreneurs from rural areas improve their chances of availing these government programs?

1. Use the Internet. Most government agency already has websites. Try to contact them using e-mail but also get their telephone number. We think the telephone is still the best medium for long distance communication because you get instant response.

2. There are numerous government program. Avail of as many of them as you can. There are popular program with many applicants and some are under utilized.

One under-utilized government incentive is the assistance to inventors. The Technology Application and Promotion Institute (TAPI)[1] of the Department of Science and Technology (DOST) provides financial assistance, tax incentives and management consultancy to inventors defined as a holder of a Philippine Patent. Republic Act 7459 provides assistance to investors.

This assistance includes availability of financing for prototype development and technology acquisition, technology promotion and enterprise development. A lot of engineers may find it impressive to become an inventor; however, a visit to the Philippine Patent Office will show the Philippines still has a long way to go in terms of quality and quantity of patentable ideas. They will be surprised to know that patent ideas are not necessarily high-tech and their contributions are needed to boost the Intellectual Property capital of the country. Every business must ensure that they have a competitive edge by having at least one patent. This patent is a vital marketing tool and would give the entrepreneur access to funds, incentives and assistances available to inventors.

Another program is the “Barangay Micro Business Enterprises Act of 2002”, which provides incentives to micro enterprises. It provides Credit Availability, Technology Transfer, Production and Management Training, and Marketing Assistance and tax incentives to businesses with assets of less than Three Million Pesos. This is a requirement easily fulfilled by start-ups.

3. Try to form an industry group. Although most of the funds are focused on individual enterprises, many government agencies prefer to deal with industry associations rather than individuals. It would also be better if they could get the indorsement of officials of their Local Government Unit (LGU).

Linked In

There are numerous other government programs and institutions that aims to help Filipino SMEs and contribute to the Technopreneurial Revolution. If you are part of such organizaton, please contact Rodec through LinkedIn, http://www.linkedin.com/in/rodec. Let's populate this page with SME support programs. Let's LINKED IN..

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[1] http://www.tapi.dost.gov.ph, Technology Applications and Promotions Institute Website