THE Department of Trade and Industry (DTI) has encouraged chief executives of big companies to develop and promote the inclusion of micro, small and medium enterprises (MSMEs) in the Asean production network and supply chain.
“I enjoin you to continue partnering with us, this time with single-minded focus on MSMEs to develop and promote their involvement in mainstream business,” Trade Secretary Ramon Lopez said in a statement for the 47th National Marketing Conference.
Lopez emphasized the inclusive business model, which significantly enhances business bottom lines through supply-demand gap linkages, while contributing substantial impact to the poor and low-income earners.
“The integration of these communities into the global value chain improves their quality of lives and makes for better business with diversified supply and distribution systems. For business and investors, inclusive business is not only the new mindset for innovation and market leadership, but a key contribution of the private sector to communities and sustainable development goals,” he said.
The DTI plan to strengthen this sector to be able to join the global value chain.
“We intend to increase the competitiveness of MSMEs so they can be part of the domestic, regional, or global value chain as manufacturing entities in their own right, whether involved in the production of parts and components that have backward linkages within the production network, or through the provision of services in manpower, logistics, transportation, or communications,” he said.
MSMEs serve as the backbone of most Asian countries, accounting for more than 96 percent of all enterprises and contributing between 30 percent and 53 percent to the gross domestic product.
To be able to support MSMEs, Lopez outlined the 7Ms, DTI’s comprehensive program covering the following interventions:
Mindset change toward entrepreneurial attitude; Mastery and competence on entrepreneurship; Mentor access consisting of management and technical requirements; Market link improvement which entails creation of networks and links with big business (Inclusive Business); Money Access comprised of microfinance programs; Machine, addressed by Shared Services Facilities; and Models of Negosyo Concept as supported by Negosyo Centers nationwide.
“Our guiding principle therefore is to provide opportunities for our MSMEs to participate in the region’s production network and supply chains to unlock the benefits of integration,” Lopez added.