The SME sector is the backbone of the Philippine economy. It
- comprises about about 99.6% of all registered firms nationwide
- employs 69.9% of the labor force, and
- contributes 32% to the economy.
SMEs
- help ensure a more equitable distribution of income,
- disperse economic activities to the countryside, and
- are a potent force in the war against poverty.
Through Republic Act No. 9178, otherwise known as the Barangay Micro Business Enterprise (BMBE) Act of 2002, the Philippine government has set a policy to promote the establishment of BMBEs by providing various incentives and benefits to entrepreneurs.
In compliance with President Arroyo's directive, the Department of Trade and Industry (DTI) convened all the key players in SME development, including the pertinent government departments and agencies, and formulated the National SME Development Agenda.
DTI has already been able to assist thousands of SMEs nationwide in their endeavor to take their enterprises to a higher level.
Targeted and collaborative interventions in financing, marketing, training, product development/technology intervention, and advocacy have resulted in higher business performance for many of these companies, as measured in their assets, employment, and sales.
