Sme in Philippines

3578 Words Mar 31st, 2008 15 Pages

Small and Medium-scale Enterprises plays an important role in economic development worldwide. Many developing countries in fact have placed Small and medium enterprise development and promotion on top of their economic agenda. With the failure of past industrialization policies favoring large enterprises to stimulate wide-ranging development, SMEs are being given renewed emphasis as engines of economic growth, employment potential and poverty alleviation. SMEs play an important role particularly in industrial production and economic growth in less developed, developing and transitional economies worldwide. II. DEFINITION OF SMALL AND MEDIUM ENTERPRISE
There is no regional, or global concensus on the
…show more content…
This is traced mainly to the interrelated factors of: fierce competition in export markets that globalization has spawned, aggravated by the inability of Philippine SMEs to update themselves with fast changes on products and manufacturing methods, and technical know how and Lack of information on available financing programs, strict collateral, equity and documentation requirements and high interest charges by banks. Because of these factors hindering SMEs, they are now threatened from growing or even worse, from continuing to exist. Adding to this, SME products are vulnerable to imported substitutes in the local market This challenge the demand for their goods thereby forcing SMEs to find efficient ways to make sure that their resources are allocated properly thru strategies and programs. The government also have been providing assistance to SMEs thru different programs as implemented by the Department of Trade and Industry. Also with the establishment of the Magna Carta for SMEs which provides a very comprehensive analysis of the growth prospects of the government when it comes to SME. Moreover, the government showed their support to SME because they trust that SME are our main drivers of economic growth given their huge participation in the market. Internationally, SMEs have also been a major concern for the APEC
Open Document