Department of Trade and Industry (DTI) for IloIlo Diosdado Cadena Jr. Said that micro, small and medium enterprises (MSMEs) need stronger market access and financial access in order to thrive.
The business marketing strategy will be one of the key components to determine the survival of MSME aside from the country's 7 Marketing Strategy (7M); Mindset, Mastery, Mentoring, Money, Machines and Models, according to DTI Director Cadena.
Go Digital
DTI Secretary Ramon Lopez urge MSMEs to go digital in order to become more globally competitive in the recently concluded ASEAN 2017 Micro, Small and Medium Enterprises (MSME).
According to the Trade Secretary, adapting digital strategies and utilization of e-commerce would allow MSMEs to "leap-frog" their status in the global market which would also be beneficial to ASEAN neighbors.
The Power of Technology
The internet penetration in the Philippines has reached 66% as of July 2017 – a significant jump from its previous standing of 58% last January of the same year. There are an estimated 69 million Filipinos who have access to internet and most of them are active on various social media channels.
The MSME sector as of this year comprises 99% of the registered business and yet the sector is still inefficient in terms of contributing to the GDP and exports. But as of the moment, developments have been seen through strategies to streamline and automate business registration and other business transactions.
DICT's e-BPLS
The Department of Information and Communications Technology (DICT) launched its Electronic Business Permits and Licensing System (e-BPLS), a cloud-based software that allows taxpayers to file applications for new and renewal of business permits online.
Other features of the system launched last 18th of July includes the retirement of businesses and business lines; computerized assessment of fees, taxes and charges; online printing of Tax Order of Payment; online printing of business permit; and endorsement module for the Office of the Building Official and other LGU concerned offices.
DICT also plans to improve internet connectivity in the country via the National Broadband Plan (NBP). Local banks have also been collaborating with financial technology (FinTech) companies to make their products and services available to the underbanked sector.
CIC's Credit Information System (CIS)
On January 2018, CIC will have its grand launch of Credit Information System (CIS) - another tool that will help the MSME sector to become competitive in the global market. Since the CIS is data-driven, MSMEs who wish to borrow money for their business will be assessed more quickly and objectively.
Banks and lending institutions will now be able to assess creditworthiness based on the positive and negative credit information obtained in the borrower's credit report.
Thus, MSMEs who exhibit good credit behavior could now avail higher amounts of loans at better interest rates and payment terms.
Stay up to date with the developments related to CIC by visiting its official Facebook page or sending email to pressrelease@creditinfo.gov.ph for more information.