MSMEs are considered growth engines of the Philippine economy. However, performance of MSMEs is constrained by various factors such as limited financial capacity, poor market information and lack of access to innovative techniques and advanced technology which hinder them to realize their full potential, break into bigger domestic or international markets, and grow in a highly competitive environment. To address these challenges, the MSME Development Plan was drawn to ensure that programs are made available to address key pain points and strengthen MSME growth. One of the programs identified under the Plan is the Shared Service Facilities (SSF) Project, a flagship project of the Department of Trade and Industry aimed at improving MSME productivity and efficiency through better access to technology.
SSF Project is meant to improve MSME competitiveness by providing machinery, equipment, tools, systems, accessories, and other auxiliary items, skills, and knowledge under a shared system. The facilities should help target beneficiaries increase their production capacities and improve product quality, resulting in increased markets, increased sales, and jobs generation. SSF is a public-private partnership initiative being implemented through cooperators who can house the machinery and equipment and make these accessible to MSMEs.
1. Projects must address the processing and manufacturing gaps or bottlenecks of the priority industry cluster brought about by any of the following:
2. Projects must increase MSME productivity in terms of:
3. Projects must support microenterprises within the priority industry clusters.
4. Projects that will improve the products of the One-Town One-Product (OTOP) shall likewise be considered.
1. Government entities (NGAs,LGUs, State Universities & Colleges (SUCs) and technical or vocational schools)
2. Private Entities (e.g. NGOs, people’s organizations, cooperatives)
Significance of SSF to Nation Building
The SSF is a pioneering strategy of DTI in 2013 which aims to address gap in the innovation capacities of our MSMEs. It received positive review in creating substantial impact on jobs and productivity in its early implementation stage from the Philippine Institute of Development Studies (PIDS), which was then tasked by the Department of Budget and Management (DBM) to conduct an evaluation of government programs to avoid automatic carryover and incrementalism in budgets in line with the commitment of the government to pursue zero-based budgeting.
The potential of SSF to improve the plight of our MSMEs and in contributing to the government’s poverty alleviation efforts was supported by many success stories from cooperators which have availed of the program. Coffee farmers, weavers, meat processors as well as sectoral organizations such as women and PWDs appreciated the machines and equipment provided by DTI under the SSF Project, which have allowed them to achieve higher production capacity, better quality products, and wider market reach. As of July 2022, the government has put in place a total of P3.19 billion since 2013 and funded the establishment of 3,361 facilities with over 500,000 MSMEs assisted, 200,000 employment generated nationwide. The SSF has served key industry clusters such as processed food, coffee, cacao, dairy, coconut, abaca, bamboo, GDH, metal, rubber, among others, and is present in all 17 regions.
The SSF Project’s capacity to accelerate poverty reduction efforts was likewise recognized by the Human Development and Poverty Reduction Cluster (HDPRC). It included SSF as one of the programs to support the Strategy on Enhanced Social Protection under HDPRC’s Performance Project Roadmaps for 2019-2022. SSFs are currently present in 30 of the 32 identified provinces as priority areas for program convergence. These provinces are Apayao, Agusan del Sur, Bukidnon, Camarines Sur, Catanduanes, Cebu, Davao del Sur, Davao Occidental, Eastern Samar, Iloilo, Lanao del Norte, Lanao del Sur, Leyte, Masbate, Negros Occidental, Negros Oriental, North Cotabato, Northern Samar, Nueva Ecija, Pangasinan, Quezon, Samar, Sarangani, Siquijor, Sorsogon, South Cotabato, Sultan Kudarat, Surigao del Sur, Zamboanga del Norte and Zamboanga del Sur.
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