Science Secretary Mario G. Montejo pledged more support to micro, small and medium enterprises through the enhanced Small Enterprise Technology Upgrading Program (SETUP) of the Department of Science and Technology (DOST).
SETUP, a nationwide strategy to boost the operation and productivity of micro, small, and medium enterprises (MSMEs) by providing collateral and interest-free loan for technology innovations, has been helping thousands of small enterprises since its implementation some ten years ago.
Banking on SETUP’s success in the previous years, DOST now aims not only to provide enhanced firm-level S&T interventions through increased support fund and strengthened S&T consultancy services and trainings but also to provide industry-level interventions.
Such interventions include development of Industry S&T Road Maps as well as the establishment of industry support services such as innovation centers, technology incubators, testing centers and technology resource centers.
Montejo declared that these strategies would lead to the establishment of SMARTER MSMEs that would sustain economic growth, respond to globalization challenges, prepare for ASEAN community, and help address pressing national problems. He defined SMARTER MSMEs as Sustainable, Market-Oriented, Agile, Resource-efficient, Technology-based, Environment-friendly and Responsive firms.
Montejo noted that SETUP has proven itself as “a very viable program for creating jobs in the countryside.”
Around 94.5 percent of SETUP projects are located outside Metro Manila.
He explained that for every P50,000 worth of assistance to small enterprises, one sustainable job is created. Further, if the salaries of the workers for one year were factored in, the value created is even higher than the actual financial support given to MSMEs, he added.
He emphasized that the funds given to MSMEs are paid back to the government within a certain period.
As of June this year, DOST has supported 1,299 MSMEs through SETUP, with assistance amounting to P 256 M – or one half of this year’s target.
When SETUP started in 2002, it initially helped 31 MSMEs with assistance amounting to P 15 M. For the past three years, the budget for SETUP has increased from P 139 M in 2010, to around half a billion pesos in 2013—a significant jump, according to Montejo. In 2012, DOST assisted a total of 3, 272 MSMEs with a value of support amounting to P 375 million for 593 projects.
The priority sectors eligible for SETUP include food processing; furniture; gifts, house wares, decors; marine and aquatic resources; horticulture and agriculture; metals and engineering; information and communications technology; and pharmaceuticals.
Assistance under SETUP may be availed in terms process and equipment upgrading, product development, technology training, adoption of cleaner production technologies, energy efficiency, productivity improvement, food safety, laboratory and testing services, packaging assistance and many more.(by Luisa S. Lumioan/ S &T Media Services, DOST-STII)
Written by: Luisa Lumioan
Wednesday, 02 October 2013 02:45