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Proposed Small and Medium Enterprise Development Plan 2003 - 2007



                SMALL AND MEDIUM ENTERPRISE DEVELOPMENT COUNCIL 
                                      ZAMBOANGA CITY


                                          

                             PROPOSED SME DEVELOPMENT  PLAN 
                                           2003 – 2007


 



I.  SME PROFILE IN ZAMBOANGA CITY


          Based on BNR figures of DTI- ZCO for the period of 1998 – 2002, there are a  total of 4,987  registered enterprises in Zamboanga City. This is measly .06 % of the national total of 823,888 enterprises in the so-called underground economy and those involved in agriculture. Forty-seven (47) % of these registered enterprises are engaged in the trading business while 44% are in the services sector. The manufacturing sector only accounted for a mere 9% of the total.



           These figures show that Zamboanga City’s economy is still prevalently SME- driven. Ninety-nine (99.9)% or 4,984 are MSME’s with the large enterprises only accounting for .06%.  the rundown of MSME’s in the city is as follows:


 Micro Enterprises     =    4,833      (96.9 %)
 Small Enterprises      =     143      ( 2.9 %)
 Medium Enterprises  =         8      ( 0.2 %)

  Total =                        4,984      (100 % )



      For the five – year period, a total employment of 25,823 was generated by these registered enterprises. MSME’s contributed 96.3 % to the total employment while large enterprises contributed only 3.7%.


       Likewise, MSME’s contributed the major share in investments generated for the same period or 63.8% of the estimated total of P 2.3 billion while large enterprises added the rest for a 36.20% share.




Priority Needs of SME’s in Zamboanga City



- Local government support in the aspect of clear – cut policies on local incentives and other investment concerns that would stimulate the growth of SME’s.
- Improved access to and availment of technology and requisite equipments.
- Regular conduct of trainings on skills upgrading , entrepreneurship, product development, organizational development and institution building.



II. VISION STATEMENT 


      The SMED Council of Zamboanga City envisions to integrate private sector  and government efforts into an effective, economical and efficient mechanism responding to the needs of small and medium enterprises and transforming the sector into an engine of growth towards realizing the full industrialization for Zamboanga City.


III.  STATEMENT OF GOALS AND OBJECTIVES



       The growth and development of SME’s in Zamboanga City will be the main thrust of the SMED Council in Zamboanga City in support of the National SME Development Agenda.


        The goal of the SMED Council is to facilitate the provision of key services and support to SME’s in Zamboanga City to make the sector strong and continually growing thereby contributing at a greater extent to the economic development of the city by producing competitive products and services.


        The Council is committed to provide the appropriate assistance and support to the following core government agenda :


- The creation of a business environment that is conducive to the viability of entrepreneurial activities in Zamboanga City.
- The enhancement of SME potentials for economic advancement through maximum utilization of the City’s abundant resources and optimal exploitation of the City’s comparative advantages, with due consideration to the environment.
- The development and sustenance of private sector initiative and linkages in order to ensure the active participation of small and medium enterprises in export,  investment and employment generation; and,
- The provision of continuing development programs to ensure a fully – developed and highly productive sector.



IV.  STRATEGIES


- Strongly advocate for policies addressing issues and concerns affecting the small and medium enterprises in Zamboanga City.
- Promote and sustain the active participation of the SME sector in marketing programs such as trade fairs, explosions and missions to expand market base for local products.
- Assist in the provision of necessary skills and knowledge to existing and potential

entrepreneurs that will allow them to become competitive players in the local and global markets.
- Assist in the conduct of product development and quality improvement activities to enhance SME’s competitive advantage in the Philippines and global markets.
- Promote the establishment of a continuing human resource development program in order to create a highly productive workforce.
- Facilitate SME access to financial resources for expansion and competitive enhancement.
- Assist in the development of an effective product marketing and distribution system for SME’s.



V.  INDUSTRY PRIORITY  AREAS


 INDUSTRY  SECTOR   FOCUSED SUB-SECTOR


1. Ornamental Horticulture          Ornamental horticulture
2.  Fresh/ Processed Products      Mango, Confectineries/ Juices
3.  Marine Products                     Processed Fish/ Seaweed
4.  Houseware                            Garments/ Textile
                                                HAndwoven Items
                                                Other Handicraft
5.  Wearables                            Fashion Accessories / jewelry
6.  Home Furnishing                   Furniture



VI.  PROGRAM THRUSTS


A. Financing


This program seeks to provide existing and new SME’s with adequate information and access to financial resources for expansion and competitive enhancement of their enterprises.


Programs and Activities


- Financing Forum
- Credit Facilitation
- Integrated Lending Program for SME’s ( SULONG )
- Revival of DTI “ Tulong Sa Tao “ Program for micro- financing
- LGU conterprart funding program for micro- financing



B. Marketing


This program seeks to increase exposure of SME products in domestic and foreign markets. It also seeks to improve distribution of SME products among and between the local manufacturers and trade sectors. 


  Programs and Activities :


- Trade fairs, expositions and missions
- SME Display Center
- Buyer – Supplier Matching
- IT- enhanced data base system on product and market information
- Marketing/ trade trainings and seminars
- Promotion of Investment Priority Areas



C. Product Development


This program seeks to provide existing and potential SME’s with services in product and package design and development to create and / or sustain competitive edge in the domestic and export markets. Product development encompasses all activities from generating ideas to applied research on materials, processes and technologies to full scale introduction of a product to the market.


  Programs and Activities


- Product improvement  ( advisory services, product clinics, etc )
- Research and development
- Technology improvement
- Technology training and seminars



D.   Training and Entrepreneurship


This program seeks to provide existing and potential SME’s with the necessary skills and knowledge to become competitive players in the local and global markets. It also seeks to create a pool of SME trainors, advisors, and counselors among the member- agencies of SMEDC who can effectively assist local SME’s.
     

  Programs and Activities


- Entrepreneurship and skills trainings for potential entrepreneurs
- Trainings on specific skills and knowledge to improve productivity and competitiveness of existing SME’s
- Academe as seedbed for the information of entrepreneurs
- Business Management Competency Courses
- Skills Upgrading for SME service providers



E. Advocacy / Enabling Environment


This program seeks to build awareness in the general public of the importance of economic roles of entrepreneurs and SME’s and advocate for improvements in the business environment so that SME’s can emerge and grow.



  Programs and Activities


- Information dissemination
- Database development
- Research and Studies
- Policy advocacy



VII.KEY RESULT AREAS


- Increased share of the S & M segments from 3% to 10% by graduating mezzanine micro- enterprises to small and generating new ones by the year 2007.
- Generating P 1.20 Billion in additional investments for the 5- year period.
- Generating 18,500 additional employment for the 5 year period.
- Generated US $ 700 million in export earnings.