The Department of Trade and Industry has encouraged chief executives of big companies to develop and promote the involvement of micro, small, and medium enterprises (MSMEs) in the ASEAN region’s 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.” Secretary Ramon Lopez told the participants of the 47th National Marketing Conference at Pasay City.
Secretary Lopez underscored the Inclusive Business model, which proved to significantly enhance business bottom lines through supply-demand gap linkages, while contributing substantial impact to the poor and low-income segment.
“The integration of these communities into 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.” Secretary Lopez said.
Noting MSME’s crucial role in ASEAN Economic Integration, Secretary Lopez shared DTI’s 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 told.
MSMEs serve as the backbone of most Asian countries, accounting for more than 96% of all enterprises and contributing between 30%-53% to gross domestic product (GDP).
To be able to support MSMEs, Secretary Lopez outlined the 7Ms, DTI’s comprehensive program covering the following interventions:
Mindset change towards 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 (SSF); and lastly, 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.” Secretary Lopez added.